THE recent announcement from Wool Partners International (WPI) that it will buy the Wools of NZ (WONZ) group of companies has raised a furore among some of the wool industry fraternity because of a perception it is a grower-owned company and who gave the mandate to sell it?
Among dissident voices are directors of Primary Wool, Wool Advancement Group and Romney New Zealand.
As a collective, which, they said, represents 30% of strong wool producers, they asked Straight Furrow to question Mike Peterson, past chairman of Wool Research and chairman of WONZ for the past two years, about the sale process.
They believe the issue has to be put before the farmers through the media.
Some background is necessary to refresh readers on the history of WONZ - it comprises brands and associated assets once owned by farmers through the old New Zealand Wool Board.
During disestablishment of that entity, WONZ was passed to Canesis, which Mr Peterson said also, was not owned by farmers in the earlier days pre-disestablishment.
WONZ stayed with Canesis until 2006, when they decided to sell it.
As chairman, Mr Peterson’s concern was that the company remained in New Zealand, because $260 million of levies had gone into establishing the brands which went with it.
He convinced Wool Research to buy and secure the company until such time as a suitable buyer, who would build the business, could be found.
Wool Research was just the caretaker, and the reason it ended up with Wool Research was because no one in New Zealand was prepared to put in a reasonable offer for it.
Last October in his Wool Research annual report, Mr Peterson outlined plans to sell WONZ to a recognised entity that might eventuate from the Wool Industry Network plans to create a company capable of restructuring the wool industry. As events have transpired this is WPI.
Wool Research’s annual report, containing plans to sell WONZ, was sent to all interested parties.
Given the time frame, Mr Peterson said it should be no surprise to people that this is what is happening.
From information supplied by Mr Peterson it appears ownership left the hands of farmers years ago.
On October 1, chairwoman of WPI Theresa Gattung issued a media statement with back-up comment from Mike Peterson about the Heads of Agreement that had been entered into regarding the sale.
“The WONZ groups was built from grower investment over the last 13 years and to see it transfer to a commercial entity that New Zealand growers will have ownership of is indeed a pleasing outcome,” Mr Peterson said.
sandyfinnie@xtra.co.nz