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Major shakeup for wool selling centres
By Edwina Farley
Friday, 26/05/2006
AWEX, the Australian Wool Exchange, has announced it's giving up leases on a further two auction sites - at Yennora in Sydney, and Brooklyn in Melbourne. As part of a review of the company, AWEX has also decided to cut its board from 10 members to 4, and to focus on what it says the industry wants - independent market reports, wool classing services and wool auction administration. But some in the industry aren't happy with the plan, and other say it doesn't go far enough.
Martin Oppenheimer, chairman of the Australian Wool Growers Association, says many of AWEX's services are duplicated by other bodies in the industry and with wool a contracting business, the costs of doubling up don't make sense. The company's review of its services found industry valued market reporting and wool classer services above the provision of auction rooms, a conclusion which surprises wool grower bodies and exporters.
Chris Kelly from exporter Itochu says extra competition from a rival auction selling house run by Australian Wool Handlers has put AWEX under pressure. "Look I'm quite sure that if AWH didn't do what they did, I think this decision wouldn't have been made. I think the exporters now would quite rightly question the benefit of AWEX in regard to saleroom issues."
In this report: Mark Grave, CEO, AWEX; Martin Oppenheimer, chairman, Australian Woolgrowers Association; Chris Kelly, southern region manager for exporters Itochu.
AWI targets India
By Simone Cobb / Kate O'Toole
Monday, 22/05/2006
Last week on the Country Hour the Australian Wool Growers Association called on Australian Wool Innovation to develop a greater focus on marketing and promotion rather than research and development. Today, Len Stephens from AWI responds that marketing already represents more than half of the companies budget. Martin Oppenheimer from AWGA says growers should have the opportunity to vote on how much they think the wool levy should be and what proportion should go to research during the 'woolpoll' scheduled for this November. Len Stephens says wool producers will get such an opportunity.
Len Stephens says it's important farmers remember that "marketing" is not just producing ad campaigns. He says some of the most important promotional work is having staff overseas in key markets to encourage use of the product and enable uptake of the latest fabric technology. One example is the company's strategy in India. While China is the emerging economic powerhouse, India is a close second. Australian Wool Innovation is gearing up to cash in on the growing wealth within India and boost wool sales to its expanding middle class. AWI is about to open an office in India like it's recently done in China to help shift the market from bulk wool sales for processing to supplying more luxury woollen garments for domestic consumption. India project manager for Mohua Das told Simone Cobb AWI expects to more than double its wool sales within India in three years. The Indian office will open on June 5.
In this report: Mohua Das, India project manager for AWI; Len Stephens, chief executive officer, Australian Wool Innovation.
Wool they or won't they?
By Simone Cobb
Friday, 19/05/2006
Maverick wool group, the Australian Wool Growers Association, is calling on Australian Wool Innovation to make marketing and promotion one of its major roles - not just research and development. AWGA has renewed calls for a dedicated marketing program to create demand after comments by some of the leading wool buyers and fashion houses that claim wool has an identity crisis. Martin Oppenheimer, AWGA chairman, says the AWI should ask growers directly if they want to fund marketing activities and that the wool poll in November (when growers meet to vote on what levy they should pay the AWI) is the place to do it.
In this report: Martin Oppenheimer, chairman, Australian Wool Growers Association.
AWI back in court
By Catherine Clifford
Monday, 13/02/2006
Australian Wool Innovation has been back in court over its case against
People for Ethical Treatment of Animals. On Friday afternoon in Sydney's
Federal Court, AWI formally withdrew allegations under section 45DB of
the Trade Practices Act, which involves boycotts affecting foreign trade.
Deputy CEO, Les Targ told Catherine Clifford AWI still has very strong
claims and will pursue them on behalf of Australian woolgrowers
.
In this report: Les Targ, deputy CEO of Australian Wool Innovation.
Flugge resignation won't affect AWS/AWI merger
By Kate O'Toole
Thursday, 09/03/2006
Former AWB International Chairman Trevor Flugge has resigned as chairman of key wool industry body, Australian Wool Services. The Australian Wool Growers Association demanded Mr Flugge stand aside as Chair of AWS a month ago saying the negative publicity could hurt the wool industry. Mr Flugge said that suggestion was ridiculous and refused to stand down until this week, when it was clear the cole inquiry would be extended. Mr Flugge will remain on the board of AWS, with deputy chair and Yass wool grower, Barry Walker, taking over as Chairman. Barry Walker says the negotiations leading to the merger between AWS and AWI will not be affected by a change in chairman. Mr Walker says Mr Flugge's contribution to the wool industry through AWS has not been tainted by Mr Flugge's involvement in the Cole Inquiry.
In this report: Barry Walker, new chairman, Australian Wool Services.
AWGA calls for Flugge to stand aside
By Simone Cobb/Kate O'Toole
Thursday, 09/02/2006
The Australian Wool Growers Association, better known as AWGA, is demanding Trevor Flugge stand aside as chairman of Australian Wool Services until the AWB inquiry is finished. As the former chairman of AWB, Trevor Flugge is a key witness in the Oil for Food inquiry. He raised eyebrows last Friday when metropolitan newspapers published old photos showing Flugge with a gun during a trip to Iraq. AWGA chairman, Martin Oppenheimer says these negative images could erode confidence in the Australian wool industry. Meanwhile the peak body for wool growers is calling for calm over the issue until the inquiry ends. Greg Weller, executive director of Wool Producers says the merger negotiations between Australian Wool Service and Australian Wool Innovation are dealocked and that is what the industry needs to remain focused on. Australian Wool Services says the chairman Trevor Flugge would not comment on this issue.
In this report: Martin Oppenheimer, chairman AWGA; Greg Weller, executive director of Wool Producers.
Going baa-baa over wool marketing
By Edwina Farley
Monday, 30/01/2006
Wool marketing seems to be flavour of the month, and with wool prices on the up this year efforts at marketing and promotion look less like a rescue campaign, and more like a line of attack. This week buyers at wool auctions will start paying a wool transaction levy, with the aim of raising around two and a half million dollars for the international test marketing campaign. From today, every bale sold at auction or private treaty will attract an extra one dollar fifty, and Peter Morgan, Secretary for the Australian Federation of Wool Organisations, says the levy is expected to raise more than $2.5 million, of the total $6.6 million. At the same time, Australian Wool Innovation is hoping to get a slice of the lucrative sports-wear market, presenting a new range of wool blend sports fabric at a major sports expo in Germany. Dr Len Stephens from AWI says although wool blend sportswear will be at the pricier end of the market, shoppers are willing to pay more. "The sports apparel market sector is one of the biggest and certainly the fastest growing apparel sector in the world, and it's no secret that wool hasn't had a very big share of that market at all. The level of wool, particularly Australian merino wool in the sports market is really almost below the radar. So we've set about a program to try to reverse that, to try and get wool into that market." The global market for sports apparel is worth 50 billion dollars annually.
In this report: Peter Morgan, Secretary, Federation of Australian Wool Organisations ; Dr Len Stephens, CEO, Australian Wool Innovation
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