Federated Farmers backs New Zealand Merino purchase

Federated Farmers is backing Merino Grower Investments Limited, committing $7.625 million to purchase PGG Wrightson's half-share in New Zealand Merino.

“Fine wool growers purchasing the remaining half of New Zealand Merino will create a grower and employee owned company,” says Donald Aubrey, Federated Farmers Vice-President.

“I don’t wish to overstate things but this is truly a new era for fine wool. Growers are set to take full control of an established company with a strong and innovative track record.

“This includes control of sustainable brands like Zque. Our farms are audited and certified to the highest standards of animal husbandry and this differentiates not just the fine wool we produce, but the farms it comes from.

“It’s about telling a story that involves our consumers and that’s important for us to add value to what we work so hard to produce.

“New Zealand Merino also has an exciting joint venture with Silver Fern Farms to market and promote merino meat products. Steeping out of a Primary Growth Partnership, it takes a leaf from the wine industry’s varietal approach.

“We’ve got an animal that produces not just high quality fibre but unique meat too. Going forward, there’s plenty of scope to expand on New Zealand Merino’s work with other fine wools.

“Farmer shareholders must actively ensure the directors of this new company not only represent their views, but have the ability to continue New Zealand Merino’s innovative momentum into the future.

“The future is now in the hands of growers. Our investment shows how ambitious and bullish we are about the future of New Zealand Merino,” Mr Aubrey concluded.