Wool sector scrap intensifying

The fortunes of the wool industry may be sinking ever lower, but two groups seeking changes seem more intent on engaging in a war of words and accusations than uniting to solve its problems.

Animosity between Wool Partners International (WPI) and United Wool Marketers Group (UWMG) appears to be growing, sinking to a new level this week.

Despite wool prices continuing to fall, UWMG, the body representing some exporters, brokers and private buyers, upped the pressure by sending a newsletter to growers advocating its solution to the industry's problems and questioning the role of Meat and Wool New Zealand and Wool Industry Network backing of WPI.

Then on Wednesday it accused WPI of threatening prices at this week's North Island wool sale by not co-operating with other brokers to smooth the flow of wool on to the market.

Meat and Wool New Zealand chairman Mike Petersen did not pull any punches when asked to comment, saying United Wool Markets Group (UWMG) had embarked on a "smear campaign", calling it "disgraceful", and adding that its newsletter contained errors, including facts about him.

"I understand they have put between $70,000 and $100,000 aside to denigrate WPI which I find extraordinary."

In its newsletter, UWMG questioned whether Meat and Wool New Zealand and the Wool Industry Network had a mandate to create WPI or to oversee the transfer of wool industry assets and money to a private company.

It also questioned whether WPI could succeed and function on $20 million in new capital it intends to raise.

Mr Petersen said the deal was above board and no levy money was being spent on WPI.

Meat and Wool New Zealand never owned Wools of New Zealand, which owned the Fernmark brand, but was a contracted supplier to the producer board, he said.

He was disappointed UWMG had denigrated WPI as both groups wanted a viable and prosperous wool industry, but he said the same thing happened when the New Zealand Merino Company was formed.

He said UWMG members had nothing to fear from WPI provided they performed.

"If they get the best results they will get the support of farmers and they shouldn't feel threatened by WPI."

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