A revived entity to represent strong-wool farmers across the country has been announced by listed rural services company PGG-Wrightson, following an unsuccessful bid to set up a competing co-operative.
PGG-W already holds 49% of the shares on Wool Partners International and the pair jointly announced yesterday they were taking steps to exercise a security interest and gain 100% shareholding in Wool Partners.
The separate but failed Wool Partners Co-Operative wanted to become a new strong-wool marketer, but fell short in recent weeks of shareholders subscribing to a threshold of 65 million $1 shares within a year of launching - amid at times bitter debate within the sector.
PGG-W sold its wool-brokering and handling services in 2008, which at the time valued Wool Partners International at $37.5 million, part of which is now the security interest held over Wool Grower Holdings, which is the 51% stake PGG-W will now take.
PGG-W managing director George Gould, who will become Wool Partners' chairman, said while the Wool Partners Co-op proposal did not achieve the level of support it was targeting, because only 30% of wool growers had shown approval, Wool Partners International would change to help those growers achieve their goal.
Following Craig Norgate's resignation last month from the board of Wool Partners International, Mr Gould said yesterday the remaining directors, Theresa Gattung and Keith Sutton, had also stepped down, as had chief executive Iain Abercrombie.
Mr Gould said Bill Thomas and Jeff Grant, the latter being chairman and strident backer for the proposed co-op, had been appointed new directors. Reflecting PGG-W's commitment to advance grower involvement, Mark Shadbolt would remain a director of Wool Partners International's wholly owned marketing subsidiary, Wools of New Zealand.