AWI chairman Jock Laurie: Lower prices and production will drop project spending even further.
AUSTRALIAN Wool Innovation is seeking an increase in the current 1.5 percent grower levy to 2pc in the 2024 WoolPoll ballot.
The wool research, development and marketing body said today a 2pc levy would allow it to continue to work on shearer training, bio-harvesting, defend the right to grow and promote wool, and continue carbon and methane work, marketing wool and developing new markets.
WoolPoll is a triennial vote undertaken by eligible woolgrowers to determine the amount of their wool cheque that goes towards research, development and marketing which is administered by AWI.
Eligible wool levy payers — who have paid more than $100 in compulsory levies over the past three years — will choose from four options in the WoolPoll: 0 percent; 1pc; 1.5pc and 2pc.
AWI today said after extensive engagement with wool growers nationwide and their industry representative bodies its board is recommending a 2pc levy at the upcoming WoolPoll.
AWI chairman Jock Laurie said WoolPoll is an opportunity for growers to have their say on the level of funding for their grower owned research, development and marketing company.
“The Voter Information Memorandum sent to eligible growers shows the very different revenue and expenditure options covered by 0, 1, 1.5 and 2 per cent and the projects that are possible as a result.
“A vote for 1.5pc levy is a vote for a significant cut in programs.”
In the WoolPoll Voter Information Memorandum, AWI had said a 2pc levy could lead to a 30pc reduction in marketing spend and in wild dog control programs, with priority given to investment in shearer training, emerging markets, visual scoring tools, capacity building and sheep classing, and continued research into flystrike vaccine, internal parasites and wool’s environmental credentials. AWI has predicted that at the current 1.5pc levy it will have zero available reserves at June 2024 with none projected over the next three years.
Mr Laurie said when the VIM was approved in July it showed a $10 million reduction in spending next financial year with a 1.5pc levy.
“Since then, lower forecasts in production and in the EMI mean AWI project spending will drop even further.
“The levy is a collective investment in the future of the industry, and it is up to growers to choose their levy,” he said.
https://www.sheepcentral.com/awi-outlines-what-stays-and-goes-in-wool-growers-levy-vote/
Lift the wool levy or not?
An informal poll at the recent Sheepvention expo in Hamilton showed a wide variation in views between Merino stud and wool producers, crossbred growers and shedding sheep owners on a preferred wool levy. Merino ram breeder and wool producers favoured a 1.5pc or 2pc levy or higher, particularly to maintain marketing programs and research and development such as bioharvesting, whereas crossbred, shedding sheep flock owners and farmers who had moved out of sheep tended toward maintaining the levy, taking it lower and prioritising on-farm R&D or simply not voting in WoolPoll.
WPA makes no recommendation on the levy
After AWI’s call for a 2pc WoolPoll results today, WoolProducers Australia president Steve Harrison said the WPA had considered the VIM “and determined that in light of the current mood in the industry at present that it was best not to make a levy recommendation.”
“We know that wool growers are doing it tough at the moment with depressed wool prices in the face of increasing costs, so thought it appropriate to just encourage growers to make an informed decision on what they consider is an adequate levy rate to contribute to AWI.
“The important thing for wool growers to do is turn up and vote,” he said.
“We’ve seen a decline in the number of eligible voters participating in recent WoolPolls and with the industry facing many external pressures at the moment the last thing we can afford is grower apathy to be a determining factor in the outcome.”
Mr Harrison also reminded growers that WoolPoll voting is an optional preferential system, meaning levy payers are recommended to put a ‘one’ in their preferred levy rate option and then put the numbers two through to four, in the other levy rate boxes in your chosen order.
“It is very important to do this to ensure that your vote doesn’t expire if the ballot goes to preferences like it did in 2018, this will ensure that your vote has the most impact.”
A higher levy will increase the cost to grow wool – Oppenheimer
New England wool producer Martin Oppenheimer said it is irresponsible and selfish of the AWI board to seek a 2pv levy when the industry is “under attack from all sides” with rising farm and sheep EID tag costs.
“And now AWI wants to increase the cost to grow wool.”
He believed AWI had too many R&D projects, it was telling that AWI had not suggested staff cuts and the declining flock, especially Merinos, indicated less need for shearer-shed hand training investments.
“Rather than come out with a program in the future where you cut the cloth, cut down the number of employees and define what are the key jobs that we need to do, AWI wants to increase the cost of growing wool so they create a bigger disincentive for people that stay in the industry.
“So they will reap what they sow, I mean the industry is getting smaller and they are helping the industry get smaller; if that’s what they want, then vote for 2pc,” he said.
“It is very irresponsible and selfish where they are looking after the company rather than the future of the industry, the future of wool growers.”
Mr Oppenheimer said the huge loss of wool sheep is being lost in the general decline in the sheep flock. He said AWI’s ‘Wear wool, not fossil fuel’ campaign has been a distraction from not helping to deliver what brands, consumers and processors want, “which is non-mulesed wool.”
“So when they then go overseas and tell those processors ‘you have to buy up or the wool is not going to be there’, it would be good if they were actually helping produce more of the type of product that those processors actually want – non-mulesed wool.
“That would be a start.”
WoolPoll voting opens on 20 September and closes at 5pm AESDT 1 November.
The result of WoolPoll will be announced at the AWI Annual General Meeting on 15 November.
More information about woolpoll can be found at wool.com/woolpoll.
Click here to read a two-pager flyer highlighting AWI’s key priorities.
Recently I had the pleasure of taking a young Chinese wool industry friend from Zhejiang around our industry. Without a doubt the renaissance of the wool industry began the day the Reserve Price Plan for wool collapsed in 1989. Then miraculously Dr Jim Watts appeared. Without a doubt, he transformed the Australian wool clip. The evidence is there today in the wool boxes at any Australian wool auction, and at most Merino ram field days.
But the renaissance doesn’t end there. The rapid advancement in genetics resulting in Merino studs achieving a depth of sale rams with plain bums and bare skin under the tail are transformers for the Australian wool industry to 100 percent non-mulesed wool production.
And in addition, rams that are carrying genes for worm and foot rotresistance are increasing in number.
But perhaps the most important transformation is the advancement in the meat producing characteristics of the Merino. Here the industry is on a real winner as Merino meat has always had a superior flavour and breeders are now improving carcase quality. This is truly a remarkable achievement of a dedicated industry using science to achieve remarkable results.
One could well ask, and what has AWI’s contribution been in all this? I would have thought precious little, but I am willing to be corrected.
It seems totally immoral to me that AWI is recommending an increase in the levy to 2 percent. Let wool growers make their own choice without being told what to do. Levy payers have poured millions and millions of dollars into AWI to see it frittered away. The decline in wool prices in real terms is in total free-fall, despite how much money is thrown at it. It does little to improve growers’ returns. Wool growers have lost total confidence in the industry and in AWI also.
Put it to 10 percent if you like, but give the growers that want to get out a choice to get away from AWI.