THE wool industry is in the throes of a good shake-up. At the heart of the matter is procurement of the clip and reaction to the new kid on the block, The Wool Company (TWC), officially open for business, and accepting wool through New Zealand Wool Handlers.
When the Wool Industry Network (WIN), early this year, released its catalyst-for-change document the authors would barely have envisaged the fallout from their intent to restructure the wool industry through the new company.
Wool exporters have attacked the concept, and last week hosted a media day in Wellington to launch their new United Wool Marketers Group and its plans to look for positive and proactive solutions for the wool industry.
The group of 40 or more exporters strongly opposes the philosophy of the WIN initiative, The Wool Company. They claim it is a co-operative hybrid, from the remnants of the Craig Norgate-run PGGWrightson wool brokering business.
Wool Advancement Group members are so concerned at the plight of the industry they hosted a summit meeting in Christchurch last week, to thrash out issues, explore commonalities and, hopefully, to find a way forward.
Other established wool companies have scrambled to announce initiatives which they claim give growers better options for selling their wool and, ultimately, improved returns.
All seem to agree direct links between growers and consumers are required to maximise returns on a premium product, which right now stacks favourably against similarly-priced synthetic fibres.
If you liken the reactionary manoeuvres to a chess game, the queen on the board of male pawns, is Theresa Gattung, chairwoman of TWC and convinced change is necessary, and, seemingly, unfazed by the melodrama around her.
Since accepting the role of chairwoman two months ago, Ms Gattung has attracted more negative flak than she would have needed from the male bastion of exporters about her limited understanding of the industry.
She has proven to be a fast learner, however. Although, anyone in the know about the industry realises how convoluted and political it is and that it would take years to come to grips with historical events which have influenced current wool events.
During an interview with Straight Furrow, it was apparent she has insight into the internal politics and offshore problems of the troubled industry.
She agreed, the manner in which TWC has gone about things has been a bit like, “flying a plane while you are trying to rebuild it”.
Last week, TWC appointed Australian John Watson as chief executive. Progress is being made on a name change, because TWC (interim name) already exists.
A prospectus has yet to be released and capital is required.
Passionate about the mission she is on, Ms Gattung said: “I’m concerned if returns to growers don’t improve, New Zealand is going to be one big dairy farm.”
Currently, New Zealand wool is not strongly branded, despite being a premium product. She, along with other proactive wool companies, sees opportunities to market wool as a luxury item, and appropriately segment the rest.
The hard part will be creating a brand or images which are powerful enough to encourage wool buyers, weavers and manufacturers to pay top dollar for a premium product.
There was no quick solution and it would take a while for restructuring plans to be implemented, Ms Gattung said.
WIN representatives had already engaged in exploratory talks, to develop off-shore opportunities for TWC. “They met with a range of people, it was exploratory - they don’t sell the wool - and didn’t have the money to offer promotional deals to US buyers.”
Around New Zealand, she has met various wool groups to find out what they are up to and is willing to talk to any industry players.
Ms Gattung also perceives untapped markets among the global wave of emerging affluent, eco-conscious consumers.
Finding a way to link natural wool carpet to “green” to satisfy them, is part of the plan.
Discussing critics, who have attacked the company, Ms Gattung said no matter what, no one could force farmers to sell their wool to TWC.
She said the Wool Exporters had made much of saying TWC wanted to do away with the prevailing wool auction system. She understood why they would feel threatened and aggrieved about this.
“Nothing will happen overnight. Auctions have their place in the selling system and I believe the wool auctions will be around for a long time.”
sandyfinnie@xtra.co.n z
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