Friday, February 4, 2011

New Zealand Farmers Plan Wool Cartel

Psst... guys, I don't think it's going to work.
Like most commodities wool has been heading higher.
From Real Time Economics:
In a country with more sheep than people, a group of New Zealand farmers plan to create a cartel to reverse falling profits and boost prices for wool used to make yarn for carpets.

The Wool Partners Co-Operative is offering farmers shares in return for their “strong wool” fleeces in an effort to corner 16% of global supply and wield power to control prices. The group hopes to replicate the success of Fonterra Co-Operative Group Ltd. a milk cartel created a decade ago in New Zealand that has grown into the world’s biggest processor of dairy products....MORE