A big win for wool!
State-owned social housing provider Kainga Ora is switching to wool carpet for its new homes.
So yes, the Wool Levy Referendum was voted down, but you need to understand the margins on a per farmer basis. A 57.19% ‘no’ vote to a 42.81% ‘yes’ vote sounds decisive until you realise the numbers behind the percentages. It boils down to 3295 ‘no’ versus the 2466 growers who voted ‘yes’.
Clear, yes; decisive, no.
This highlights how much of New Zealand’s multi-billion dollar primary industries hinge on very few people. The levy packs were sent to only 12,201 growers.
While the result wasn’t as Federated Farmers preferred, the record voter turnout of 47.22% was. Not only was it up on the 39% who voted in 2009, it was way up on the 35% these kinds of votes normally attract. It also easily beat the 41.3% turnout to last year’s local elections.
So what conclusions should we draw?
For one, it shows the wool industry is split nearly down the middle. There’s a strong desire, especially among the 2466 growers who said ‘yes’, for an industry-good body. The wool industry needs to work on issues arising from the levy discussions about how we can promote and grow value.
The past 17 years tells a worrying story for wool. Lamb values have climbed some 500%, but wool has gone up only a miserly 10%. The old Wool Board deserved to be put down and the levy which followed it had lost its way come 2009.
The shame is that instead of looking at what a modern farmer-led levy promised, too many of our guys were wrongly thinking ‘producer board’.
Federated Farmers, being the only non-commercial body representing wool growers, calls on all wool industry participants to take stock.
The next step for us will be our meat & fibre council in Wellington this month where we will review the levy outcome, the past four years and, of course, our future strategy.
• Rick Powdrell is Federated Farmers meat & fibre chair.
