Farmer views sought on remaining wool levies

Farmer views sought on remaining wool levies

Beef + Lamb New Zealand (B+LNZ) is proposing that the $2.8 million of remaining wool levies will be put towards activity that supports the wool sector in a manner consistent with the mandate provided in 2003, and under which the levy funds were collected.

Initial consultation has been held with the newly formed Wool Group, chaired by Colin Harvey, and this group has been unanimous in its support of the proposal.

B+LNZ Chief Operating Officer, Cros Spooner said the proposal was that the money be split three ways:-

• Funding for four years for B+LNZ information and analysis; market access; and farm related activities that support the wool sector ($450,000 per annum and $1.8 million over four years)
• Funding for two years for Shearing Sports and Wool Classers Association activities ($65,000 per annum, $130,000 over two years) and
• Using the remaining $870,000 plus interest to establish a fund where applications can be made for wool specific projects that are co-funded and are able to demonstrate benefit for farmers

In the 2009 referendum, farmers decided not to support the future payment of wool levies which took effect from April this year when the old levy orders ran out.

“The Board (B+LNZ) has taken the view that this money should be used for the purpose it was collected and so we are proposing we continue to fund wool information and analysis out of the Economic Service.

“B+LNZ would also continue to represent New Zealand wool interests through its market access activity and ensure wool is safeguarded in FTA discussions.”

Mr Spooner said there were a number of on-farm activities, like the use of specific wool indices for genetic improvement through Sheep Improvement Ltd (SIL) and the inevitable inclusion of wool in initiatives like monitor and demonstration farms that would be funded.

An industry-good approach had been made by Shearing Sports and Wool Classers and their activities would be funded for the next two years, he said.

“We’ve also looked at a contestable fund for which applications can be made for wool specific project funding. Investment in this fund should be focused on research, extension, skills and education and be able to demonstrate clear benefits at the farmgate.”

Farmers are asked for their views on these recommendations and they can do so by sending an email with the subject line “remaining wool levy funds” to enquiries@beeflambnz.com or writing to Beef + Lamb New Zealand, PO Box 121, Wellington 6140. Feedback needs to be provided by 15 October 2010.

ENDS

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