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WOOLPOLL MODEL IS WRONG
15 August 2006
Woolpoll 2006 will lead to further contraction of the Australian wool
industry, regardless of the result in November, according to the Australian
Wool Growers Association (AWGA).
AWGA Chairman Martin Oppenheimer states “The model is wrong. Previous
woolpolls in 2000 and 2003 failed to give growers the ability to direct
their levies towards either Research or Marketing. The McLachlan model
from 1999 based on innovation has failed to lift production and prices,
or reduce costs. The mistakes from past Woolpolls look to be continued
for another 3 years.”
During the past 3 years there have been repeated calls from growers, processors
and retailers to increase spending on marketing and targeted promotion.
But despite growers desire to fund marketing programs, they are only given
the choice to do this with an increased levy, after funding Research,
Administration and litigation activities.
“Research is the new ‘Sacred Cow’ that Australian Wool
Innovation (AWI) always puts before Marketing, and refuses to give growers
the choice to re-direct their levy towards a balanced portfolio including
Marketing and targeted Promotion. Why is funding for Marketing activities
always seen at Woolpoll as an extravagence at 3% or 4% levy after funding
research?”
“AWGA policy has reflected woolgrowers desire to split funding between
Research at 1% and Marketing at 1%. Unfortunately AWI is now putting the
levy from woolgrowers in doubt as many will vote zero in protest. Anyone
who thinks growers can increase the levy above 2% to fund marketing is
clearly out of touch with the commercial reality of wool production at
present.”
There is added confusion with (AWI) Chairman Ian McLachlan stating on
ABC radio on 9 August 2006 that “AWI is not the world’s marketer
of wool, we are not in the business of marketing wool to the world.”
But CEO Len Stephens stated at the 2005 AGM “the AWI business is
now a combination of research, innovation and marketing.”
Growers are also concerned about the proposed merger of AWI and Australian
Wool Services without any details released before Woolpoll. “It
is arrogant and unrealistic to expect growers to ignore any structure
of the future wool companies, yet blindly decide future funding. Growers
smell another AWRAP.”
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