When the world experienced the greatest commodities boom it has ever seen, strong-wool prices fell 15 %. When the boom crashed last year, wool fell even lower reports The Dom Post."Obviously, something's wrong," James Aitken says. But unlike many farmers he is not content to complain and do nothing. "If something's not right, don't sit there moaning, go and fix it - that's the way I look at it," he says. No surprise, then, that he is chairman of the new farmer co-operative, Wool Grower Holdings (WGH). He speaks passionately about how the long-established industry structure has failed farmers and is convinced the future lies in farmer control of procurement and marketing. It won't be hard to at least double the price farmers get for their wool, he says. First the farmers have to stop complaining and do something - sign up to WGH and promise to supply its new marketing arm, Wool Partners International (WPI), with wool. When enough farmers have done so - Mr Aitken wants the "vast majority" - WPI will be able to convince carpet manufacturers and retailers that paying extra for the raw product will be in their best interests. With control of the supply of the world's highest-quality carpet wool in its hands, WPI will have a strong argument. But this control will also mean it can improve the quality further and create savings for the manufacturers by supplying more closely their requirements in length, colour and bulk than the present system can. That system is run by private brokers, buyers and exporters through auctions. They are fiercely opposing the co-operative's plans and swear it is doomed to failure. He says it is undeniable that NZ grows the best carpet wool, but with no reward to farmers. But low prices are discouraging farmers. Their return is 5 per cent of the retail price, compared with lamb's 20 per cent. A look at wool carpeting's pricing structure shows there is room to pay farmers more. "You take a 3.6-metre-wide roll of carpet. In each lineal metre there's 2kg-3kg of wool - worth $6 to the farmer that grew it. But the retailer sells that metre for $250 or more."
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