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14th August 2006
I am surprised, although perhaps I shouldn’t be, by the position
taken by Woolgrowers and the NSW Farmers’ Association.
During face-to-face meetings, I was honest about my proposal and they certainly did not reject it at the time. Don Hamblin said that he thought the main obstacle would be the ACCC, which now appears not to be the case.
I would like to clarify why I think it is important.
- It helps to raise more money for targeted marketing. I have never
endorsed generic marketing: this is a decision for people more qualified
than I to take.
- It catches those buyers and processors who have refused to make voluntary
contributions. As it happens, my group invested a significant sum in
the TMP, as did many of my clients and competitors. Regrettably, China
and India did not. My proposal is not intended to remove income from
the long-suffering growers, but rather to ensure that no buyer feels
that his competitor has refused to contribute, and therefore has an
unfair advantage over him, which is the attitude which prevails in those
cultures.
- It allows downstream wool dependants a voice in how funds are invested. Growers would be handing over some control to those who depend on them and who are also closer to the consumer markets. Woolmark discussed strategy with us before embarking on the TMP, and wisely heeded our comments that knitwear was an increasingly important market. By contrast, AWI never bothered to ask us about Benetton, who are a long-term client of ours. It was AWI’s first major marketing attempt and the result speaks for itself.
A price rise may not be far off, but it will be driven by a lack of supply, not by red-hot demand. By then, it will be too late. Many growers will never come back.
I ask growers to consider the lessons of the last seventy years when
they have been in charge of their own money, and ask them whether it is
not time for change? Or shall we continue to fight with each other, as
growers and processors exit, and the slide into dark oblivion gathers
pace?
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