The New Zealand Council of Wool Exporters is claiming "fudged facts" and a lack of transparency in relation to the proposal by Wool Partners Co-operative.
The WPC has in turn accused the council of having "vested interests" and undertaking a "relentless and negative" two-year campaign, alleging it had spent hundreds of thousands of dollars in the process.
The WPC funding is in the form of $1 farmer-owned shares for each kilogram of strong wool participating farmers produce.
WPC proposes to build an integrated strong wool supply chain, handling at least 50% of New Zealand's strong wool clip, which will be branded and sold in the market.
The WPC filed an amended prospectus yesterday, which includes its first update on farmer subscriptions to date, saying 35 million $1 share subscriptions had already been achieved - or 54% of the original $65 million sought.
The subscription rate flies in the face of figures from the New Zealand Council of Exporters Council, which on December 30 released an independent survey it had commissioned Horizon Research to carry out, indicating more than 70% of wool growers would not be applying for subscription.
Yesterday, however, it appeared WPC had further lowered the bar with its amendments, saying minimum subscription rates could be lowered to $55 million (of $1 shares); the time frame for acceptances could be extended; and farmer payments had been expanded to include further options.
WPC chairman Jeff Grant, of Balfour in northern Southland, yesterday said, with the active support of farmer subscriptions to date, "we are confident that the co-operative can be launched".
"For far too long others in this industry have delivered returns to their own investors and shareholders at the expense of growers.
"Not surprisingly, these interests are now actively campaigning to maintain their position," Mr Grant said.
On Wednesday, wool exporters council executive manager Nick Nicholson said, if WPC had the overwhelming support "as they claim, they'd be across the line by now", and the promoters would not be extending their offer for a third time.
"This is another example of the WPC chairman Jeff Grant fudging the facts at a time when he needs to be open and transparent," Mr Nicholson said.
Mr Grant said "clearly, they [the wool exporters council] have a vested interest in keeping the old industry structure in place - a structure that puts the exporters in the driving seat, fragments the marketing and selling of strong wool and takes all control away from growers."
In an interview, Mr Grant said WPC had "taken on board" growers' concerns, addressing them in the expanded prospectus, which is being mailed out to growers and is available online at www.woolpartners.com.
Conversely, the wool exporters council's website - www.woolexporters.net - is hosting an extensive section of "opposition to" the co-operative's proposal.
Mr Nicholson said growers were asking why WPC had to take over the $24 million bank debt of Wool Partners International, when they could start afresh without the loan hanging over the new entity.
"Growers ... wanted more information from the prospectus, including a balance sheet; details of how the businesses being acquired have performed in recent times; and details of how the assets being acquired from Wool Partners International have been valued.
"Continuing with the float when the support isn't there is plainly irresponsible and at the end of the day someone is going to have to pick up some very large costs," Mr Nicholson said.
In response, Mr Grant said the wool exporters council "has attacked the wool co-operative concept - it has attacked the structure; it has attacked the implementation; and it has attacked the individuals involved.
It has been at it for two years.
"Much of its material has been factually incorrect, and all has been driven by an agenda to undermine the establishment of a broadly based co-operative for wool growers," Mr Grant said.
"It [the wool exporters council] has undertaken a massive, relentless and negative campaign valued at hundreds of thousands of dollars in money and management time. You have to ask yourself why it would do that."
Wool Partners Co-operative changes:
Changes to prospectus of Wool Partners Co-operative:
• Acceptance extension date out to February 16.
• Initial payments of 20c now (instead of 40c) per share, then four annually from 2012.
• Option for growers to have first 20c instalment paid from wool receipts from the three months to May 31.
• Option for co-op to proceed with $55 million subscriptions, as opposed to $65 million.
• Included: Co-op's financial statements for quarter to June 2011 and year to June 2012.
• The terms, and shareholder approvals required, to exercise the option to purchase the business of NZ Wool Handlers.
• Premiums offered to growers to supply wool for Laneve contracts.
• Co-op to begin operating on April 1.
• Revised offer costs.
• Updated director profiles.
