NZ Wool Sector: Axing of levy could drive up shearing costs
December 7th, 2009
Farmers are likely to end up paying more for shearing as result of their decision earlier in the year to cull the wool levy, possibly wiping out any potential savings farmers believed they would make. The warning comes from Ag ITO CEO Kevin Bryant who is working alongside Meat and Wool NZ and others in the wool industry to try to find a replacement for the $300,000 farmers no longer provide to fund training shearers and shedhands.
Meat and Wool NZ chairman Mike Petersen says CEO Scott Champion will convene a meeting in the next few weeks to discuss the industry contributing to the training of shearers, woolhandlers and classers. Those invited to attend include the Council of Wool Exporters, the NZ Merino Company, Woolpartners, Elders Primary Wool and shearing contractors.
Bryant says the situation reflects the consequences of the farmer vote to end the levy “If the industry did not contribute to training, then neither would the Govt,” but he warns sheep farmers could end up paying anyway through higher shearing costs. “If the wool industry did not come up with $300,000, shearers and woolhandlers would seek to recover their training costs through the rates they charged sheep farmers.” This could happen as early as may next year. He adds a lack of funding for training will deter many young people from poorer rural parts of the country who have traditionally considered shearing as a career from doing so because they will not be able to find the $2000-$3000 needed to pay for their own training.
Copyright © The Main Report Group - NZ AGri-Business
