MEDIA RELEASE

22 October, 2018

Lower wool volumes mean reduced income for woolgrowers

Australian Wool Innovation’s (AWI’s) recent media statements and comments regarding a reduction in income of 36% on the back of reduced volumes if a lower levy is voted in, misses the obvious fact that their own levy payers are the ones that are currently suffering the most during the dry conditions being experienced across large parts of Australia’s wool growing areas.

AWI are calling on wool levy payers to vote 2% in this year’s WoolPoll to ‘ensure that AWI can continue to invest in current and new projects for the next three years’, as there is a forecast 15% decrease in this year’s production based on Australian Wool Testing Authority’s (AWTA’s) recent supply figures.

AWI are asking for 2% of growers’ income to go into their coffers even though many growers will experience a significant decrease in their own business’ bottom line.

Whilst research, development and marketing of the wool industry is very important, the financial stability of levy payers is far more important. To cite reduced production as a reason to keep the levy at 2%, is essentially asking growers to put the interests of AWI before their own business.

According to the WoolPoll Voter Information Memorandum (VIM), 1.5% offers projected annual income of between $85.8M – $88M per year for the next three years which is ample money for AWI to conduct their current business as well as invest in relevant new areas. A 1.5% levy offers a projected annual total income of between $85.8M to $88M per year for the next three years. The last three financial years has seen expenditure by AWI of between $70 and $88M per year.

The reality is 1.5% will still deliver more money to AWI than they have ever received and why WoolProducers is advocating for this amount.

WoolProducers strongly believe that the half of a percent (.5%) is better in growers’ pockets in order to rebuild their own businesses when the season changes.

ENDS

WoolProducers Australia contact:
Richard Halliday
President
0428 854 759
Jo Hall
Chief Executive Officer
0488 554 811