Media Release: Silver Fern Farms Co-operative Ltd takes stake in WoolWorks

Silver Fern Farms Co-operative Limited has today announced it has purchased a 12.5% stake in Wool Scour New Zealand Limited (trading as WoolWorks).

Alongside Bright Meat Group, Silver Fern Farms Co-operative is the joint owner of Silver Fern Farms Limited, New Zealand’s largest red meat processor and marketer.

WoolWorks is the largest woolscourer by volume in the world and provides commissioned wool scour services to wool growers, manufacturers and exporters. It handles approximately 80 percent, or over 100 million kilograms, of the New Zealand wool clip.

Silver Fern Farms Co-operative Chair, Anna Nelson, said the investment in Woolworks is part of the Co-operative’s strategy to develop new revenue streams for farmers.

“At a time where our sheep farmers in particular are facing some challenges, this investment is a vote of the Co-operative’s confidence in the future of the industry,” she says.

“Although there have been some difficult trading conditions in the last few seasons, the performance and returns from Silver Fern Farms Ltd over a number of years have given the Co-operative the ability to invest in new initiatives to increase on-farm returns.

“We know there's the potential to capture more value for high-quality wool, and we’re excited by the opportunity our investment in WoolWorks gives us to help unlock this,” she says.

Nelson says better wool returns are important to the overall viability of sheep meat farming, and this investment will complement the Co-operative’s investment in Silver Fern Farms Ltd.

“We’re proud to be owned by some of the world’s leading farmers, and we’ve seen the potential value that can be created by aligning global customers with our sustainable and ethical farming systems,” she says.

“As a Co-operative, we will also be working closely with Woolworks to help ensure these opportunities translate into increased returns for our shareholders,” she says.    

Woolworks President, Nigel Hales, says a newly established division at Woolworks will focus on emerging opportunities for differentiated wool supply.

“We are seeing increasing opportunities for a differentiated line of wool supply from farm through to manufacturers who are looking for additional environmental credentials for their wool, such as low carbon. They are also looking for this to be underpinned by a traceable supply chain,” he says.

“Global regulators and commercial building specifiers are looking seriously towards natural products as sustainable alternatives to what is currently available, and we are seeing this shift happening quickly in some markets.

“Woolworks is excited to have such a large group of farmers investing in our world-leading processing facilities,” he says.

Note to editors: the following media release relates to Silver Fern Farms Co-operative Ltd. Silver Fern Farms Co-operative owns 50 percent of New Zealand’s largest red meat processor, Silver Fern Farms Ltd, however Silver Fern Farms Ltd is not a party to this transaction. 

As a current Director on Silver Fern Farms Co-operative and the Chair of Woolworks, Rob Hewett was excluded from deliberations and the decision to invest.

Shareholder Enquiries:
Clark Taylor
Shareholder Relations Manager
+64 29 914 5060

Media Enquiries:
Bill de la Mare (on behalf of Silver Fern Farms Co-operative)
Head of External Affairs
+64 21 924 331