A US wool buyer says New Zealand needs to protect its scouring industry and use it as a marketing tool.
Michell Wool president Steven Weinstein told a Commerce Commission conference in Wellington that the carbon footprint of wool is emerging as a strong marketing point, and the country's scouring business will be an essential part of this.
The conference was held to consider a draft decision by the commission to allow Cavalier Wool, to buy the scouring operations of New Zealand Wool Services International.
The commission acknoeldges the purchase would create a monopoly on wool scouring in New Zealand, but contends there are benefits that would outweigh the loss of competition.
Some opponents say it will lead to more greasy wool being sent offshore, a rise in prices, lower returns to farmers and prevent new scourers from entering the industry.
Mr Weinstein says he supports the aquisition, as long as it does not force more greasy wool to be sent offshore to be scoured.
He says New Zealand is viewed internationally as a Mecca in environmental procedures and the wool industry here should use it to its own advantage.
