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Lifting demand for wool.
October 2004
In recent months Ausfine members as have other woolgrowers heard with increasing regularity the need to lift demand for wool. The so called debate has arisen from the apparent softness of the market, despite the drought, still low albeit slightly increasing production levels, higher prices for oil and therefore synthetic fibres, wool prices are still declining.
The answer to this threat to wool as a serious contender in the world fibre market is in two parts. Firstly to market wool as the wonderful natural, environmentally friendly and versatile product that we all know it is. This involves specific and targeted marketing, education and retail support. It does not need widespread generic advertising campaigns but can be achieved with considered market research and professional advice from professionals in this field. Equally to engage in this type of activity does not require a huge bureaucracy to manage this activity; it can be undertaken by a small group of industry stakeholders, without vested interest, acting upon relevant and reputable advice from professionals with specific expertise.
Secondly we must look at the cost of production, not so much at the farm gate, yes there are improvements still to be made on farm but that is an area that requires individual evaluation of operating practices for which as woolgrowers, individual management decisions will be undertaken with a raft of advisory choices and assistance options currently available, whether it is a matter of agronomy advice or ram selection.
Beyond the farm gate, the manner in which wool is marketed, exported and processed is an area that deserves attention in an effort to streamline the wool pipeline.
The rural media in recent times has highlighted the ongoing concerns of many seeking to lift demand for wool. For Ausfine members, the majority of whom are specialist woolgrowers this is particularly relevant.
Currently all woolgrowers are compelled to contribute 2percent of their gross wool income in a tax, supposedly to address the above mentioned criteria for the future viability of wool production. Compulsory tax payers have a justified entitlement to demand clear and measurable returns on their investment.
In recent weeks the calls suggesting an additional levy should be treated with the contempt they deserve. The current 2 percent is more than adequate to fund these measures if attributed wisely. Certainly the very existence of companies such as Ausfine suggest that the compulsory levy is not serving the expectations of woolgrowers acceptably.
It is therefore encouraging to learn of Ausfine member, Wally Merriman, from the Merryville Stud's nomination for the forthcoming election of the AWI Board.
As the recipient of the 2 per cent levy, AWI must demonstrate acceptable return on investment to woolgrowers contributions. Clearly in the past this has not occurred, and Wally has indicated that he is in the business of seeking appropriate expenditure that will deliver real outcomes for woolgrowers.
The Ausfine Wool Company would applaud Wally Merriman in his stand and encourages all Ausfine members and supporters to assist Wally in his endeavours. This may be by simply ensuring when the voting papers arrive in the mail, that you complete your ballot, but equally encouraging others to also participate. To campaign successfully Wally has chosen a difficult, but not insurmountable challenge. We must all help out to ensure our wool levy is spent wisely.
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