14 May 2010

Wool marketing charge proposed

8:08 pm on 14 May 2010

A sheep farming representative says he doesn't think farmers will have too many issues with a new wool marketing and promotion charges, because it is voluntary.

The New Zealand Council of Wool Interests has proposed a royalty of 0.24 cents a kilo added to wook testing charges, to help pay for wool promotion, lobbying and training initiatives.

Bruce Wills says farmers are likely to be comfortable with the charge, as it is not compulsory, and is commercially focussed.

The Council of Wool Interests says it's had strong industry backing for the royalty payment, although one company, Wool Partners International, says it won't contribute because it's focusing on its own marketing programme.

However, Wool Partners has also introduced a charge - a 3% market development fee - that its asking from farmers who supply it with wool.

It says about two thirds of its wool suppliers are paying the market development fee, which amounts to about 7 cents a kilo at current prices.