Australian Wool Innovation chair Jock Laurie heartened by industry support

WoolPoll’s recommended levy vote rejected as woolgrowers opt for a status quo 1.5 per cent option for the next three-year period (2025-28), with a close ballot that was won on preferences.

An Australian Wool Innovation spokesperson said after preferences were distributed, the 1.5 per cent levy option won with 56 per cent of the vote.

AWI chair Jock Laurie and his board members’ recommendation of a 2 per cent vote was knocked back, but they were “encouraged” by a shift to the preferred option.

When the WoolPoll result was handed down at AWI’s annual online meeting on November 15, Mr Laurie said challenges to the industry were numerous.

Citing poor seasonal conditions and “all the complications of joining Merino ewes resulting in lower stocking numbers” plus costs of production, particularly in the “shearing space”, had reflected negatively on the industry.

Added, was the “decision around live exports” (Federal Government ban policy) and the impact it had on people.

“The biggest frustration is the market — it’s been stable for the last 12 months, but at level that is making it difficult for the industry (woolgrowers) to continue to remain economical as they can,” Mr Laurie said.

“They are looking at different options and making decisions to shift out of wool growing commodities.”

Mr Laurie said the current Eastern Market Indicator (1142c/kg) and the Western Market Indicator (1276c/kg) had recent lifts but not substantial.

“We need a something significant to happen, and if it doesn’t, we will continue to see reduced wool volumes,” he said.

“When the market turns around in 12 months, volumes may not be there which is a consequence of the market as it sits now.”

Mr Laurie said woolgrowers were being challenged with making serious decisions on how they run their business and AWI was intent on holding back decisions “based on emotions”.

“Everywhere we (AWI staff) go internationally, we hear about how important wool is,” he said.

“How it is the fibre of choice, how it deals with environmental issues, how its biodegradable with low impact on landfill and all those good things people want.”

He said this feedback was on a regular basis, but it hasn’t been reflected in the market.

“There is a level of frustration about the information we are providing growers and what is being supported,” Mr Laurie said.

“We would love nothing more than to turn world economies up and shift the EMI higher to 1300 or 1500c/kg.

“Unfortunately, there are things that AWI cannot do.”

But Mr Laurie was adamant that wool would remain relevant in people’s mind.

“We know world economies will turn around and when they do, we want to make sure wool will be an issue they will invest in,” he said.

Mr Laurie said the WoolPoll result allowed AWI to reset the budget with a focus on what was important to the industry.

“We still have issues around marketing and RD&E (research, development and extension),” he said.

He noted that AWI’s marketing was in defensive mode against the European Union’s unfair Product Environmental Footprint, created to measure a product’s environmental impact.

“AWI is educating people with its campaigns like Wear Wool not Fossil Fuel — they (campaigns) have been influential in markets around the world,” Mr Laurie said.

“The RD&E space has been dealing with the shearing issues, were (AWI) investing heavily and the next three years this will be an area of priority.”

He said AWI’s income for 2023-24 was $63 million with an expenditure of $66.6m

The 2024-25 budgeted income of $57.5m would have a $64m spend, using reserve drawdowns to “soften the blow gradually, slowing the company down”.

In 2025-26, with the 1.5 per cent levy, and ABAREs EMI recommendation plus the Wool Production Forecasting Committee’s 285mkg of wool production, income would come back to $51.4m with a spend of $51.4m.

“The industry needs to stick together, it’s small on the international stage, every woolgrower has a place in one of the markets, we need to work together to help deliver that,” Mr Laurie said.