21 Oct 2010

New wool marketing co-op launches prospectus

10:57 am on 21 October 2010

A new wool marketing co-operative is launching its bid to get farmers' financial backing.

The Wool Partners Co-operative is proposing to replace Wool Partners International with a totally farmer-owned enterprise.

It is issuing a prospectus to raise money from growers to buy some of the assets of WPI, which was formed two years ago as a joint venture company between farmers and PGG Wrightson.

It needs to raise at least $65 million from growers, and is offering shares at a $1 per kilo of greasy wool.

The chair of the new cooperative, Southland farmer Jeff Grant, says $17 million of the money raised will be used to buy some of the assets of WPI, including the Wools of New Zealand business, international brands and the national wool auction centre. The rest will be used for development and research.