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Woolgrowers put in difficult position
24 September 2006
The recent press release (click here) from the German Wool Federation highlights the difficult position that Australian woolgrowers have been put in with the current Woolpoll vote.
The AWI Board & Woolpoll panel have ignored industry calls to split
the levy between Research & Marketing. The current proposal is; that
if growers want more marketing & demand building, then they must pay
more wooltax. AWI is risking a protest vote by growers of less than 2%
with this action. The recent decline in profitability of wool growing,
on-going drought conditions & plus the growing lack of respect for
AWI's so called "independant performance review" by ACIL Tasman
are testing woolgrowers' faith in industry organisations abilities. Of
course some of our other industries (eg red meat, lamb) have demonstrated
how we can build demand, price & profitability with a "balanced
portfolio" of targeted promotion, marketing & research. Notice
research comes last.
The "innovation only" philosophy from the Future Directions
Task Force 1999 model has failed. Woolpoll 2006 is continuing this failed
model with its "marketing is a luxury & you must pay extra after
research" thinking. Consumers must come first, marketing must be
funded first, lifting the price of wool must come first.
AWGA supports the retention of a 2% levy, but with a dramatic shift in
allocation of spending to demand creation to lift the price of wool. AWGA
believes that only essential Research programs can be justified in the
current market situation.
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