Elders accused of failing to deliver

Failing to deliver on promised high wool prices has damaged the credibility of Elders Primary Wool, with some farmers saying company staff were no longer welcome on their farms.

Kuriwao farmer Sean Williams said the wool company had done little to enhance its reputation with him, saying he did not know if the 16 bales of pre-lamb shorn wool he supplied had been tested, let alone where the bales were stored.

Others have removed their wool from Elders Primary Wool (EPW) stores and had it sold by other brokers after it became obvious Elders could not deliver on promised premium prices from a deal with United States flooring group CCA Global Partners.

Mr Williams said EPW had also failed to deliver on a promise to meet farmers in Clinton to explain the delays in selling the wool and securing those premium prices.

"The credibility of EPW is under threat. We hear stories of what is going to happen. I want to read about something that has happened," he said.

He has concluded EPW was using unsubstantiated promises to attract wool supplies.

"It seems like a race around procuring wool before anything was sorted out," he said.

Mr Williams said EPW offered him $2 a kg more than current auction prices, an offer he said was too good to ignore when he had previously sold fleece for $2.20 a kg.

He understood not all his wool would meet the required specifications, but given the perilous state of the industry, he was keen to test the CCA contract.

By not fulfilling their promises, he said EPW faced a challenge rebuilding credibility, but he suggested it could start by being more timely in paying suppliers.

Another farmer, who asked not to be named, also accused EPW of using CCA as a ploy to attract wool, evident by the volume committed by other farmers in his region on the promise of $5 a kg.

The farmer said he went without income from the wool for six months before asking another broker to collect it and sell it for him, realising about half the $5 a kg EPW promised him.

Friends said he was overoptimistic, but the farmer said EPW were convincing.

Insult was added to injury recently when he received a letter asking him to buy shares in EPW based on the volume of wool he supplied.

He ignored the request.