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AWI believes to be effective, accountable and productive, good consultation is essential. We can do this best when we are well informed, when we have consulted and engaged with our levy payers and industry stakeholders and when we work together.
AWI Strategic Plan 2019/20-2021/22
In consultation with stakeholders, AWI developed its Strategic Plan for 2019/20 to 2021/22. The purpose of the Plan is to outline AWI's key investment priorities in research, development and marketing for the three years from 1 July 2019. In the lead up to the next WoolPoll, AWI will be measured against the targets set out in the Plan, through the independent Review of Performance.
Strategic Plan 2019/20 to 2021/22 Revised Targets - November
Due to the ramification of COVID-19 and the fall in the Eastern Market Indicator coupled with the drought induced wool decline, AWI has adjusted some of programs targets in the 3-year strategic plan. These factors have led to a reduction in budget that prompted AWI to change or amend some program targets.
These changes are clearly reflected in the complementary document which just highlights the program targets that has been changed. Achieving these program targets will enable AWI to meet the key investment priorities and continue AWI’s work towards providing returns to the woolgrowers.
AWI Annual Operation Plan 2020/21 - July
This 2020/21 Annual Operating Plan is the second of the three-year strategic period 2019-2022 which provides a blueprint outlining AWI’s objectives with clear deliverables. In demonstrating value to Australian woolgrowers, the investment targets and measurement metrics set out in this plan are wherever possible an annualised subset of the three-year targets in AWI’s Strategic Plan.
Annual Operating Plan 2020/21 Updated - November
Due to the impacts of COVID-19, the AWI Board and Management have agreed to work on an agile budget model for 2020/21. This report will be first of potentially four quarterly Budgets/Operating plans as we work through the financial and operational implications of the pandemic.
The first updated 2020/21 Annual Operating Plan in November incorporates the latest financial and operational implications of the pandemic.
As the research, development and marketing organisation for the Australian wool industry, AWI works in partnership with a wide range of stakeholders along the supply chain - from woolgrowers to consumers.
- Woolgrower representative groups (national and state)
- State Farming Organisations
- Government (federal, state and international)
- Domestic supply chain representative groups
- Research and development vendors
- Retailers and brands
- Fashion designers
- Manufacturers and supply-chain partners
- Animal welfare organisations
AWI implements a comprehensive planning and consultation cycle across its portfolios to ensure two-way dialogue with stakeholders and enable AWI to work with partners in developing its activities. While AWI consults a range of stakeholders, engagement with woolgrowers is a key priority.
AWI engages stakeholders in a number of ways including:
- Regular meetings with woolgrower representative bodies and key processors
- Forums with woolgrowers in wool producing areas
- Trade and retail partner consultation forums
- Retailer and brand workshops and roadshows
- Woolmark licensee workshops and meetings
- Meetings with manufacturers and media partners in key markets
- Publications such as the quarterly Beyond the Bale magazine, AWI's online newsletter and the AWI website.
It is important for AWI to regularly consult with woolgrower representative bodies to seek feedback on their member priorities for research, development and marketing, and to support their knowledge of AWI activities and performance.
AWI established the AWI Woolgrower Industry Consultative Committee (ICC) in 2010 to formally consult key woolgrower representative organisations. The ICC has served an important business purpose enabling AWI to formally consult with woolgrower representative groups, identify woolgrower priorities, and report on our activities.
Since late 2018, we have reviewed our consultation arrangements. We have considered feedback we have received, including from the various workshops and submissions from industry over the past few years.
This feedback has been invaluable to the development of our new consultation model, which strikes a balanced position, meeting the expectations of woolgrowers, woolgrower representative groups, government and AWI’s business needs.
Our objective was to create a consultation model with a clearly defined purpose. We sought to ensure the model was inclusive of more groups, to bring feedback from the varied regional and organisational perspectives, while ensuring there was a core group that AWI could engage more regularly on more specific issues.
As such, the new model has two key consultation forums: a core group of the AWI Woolgrower Industry Consultation Panel (WICP) and a broader group of the AWI Woolgrower Consultation Group (WCG).
The Terms of Reference for the AWI Woolgrower Industry Consultation Panel (WICP) and the broader group of the AWI Woolgrower Consultation Group (WCG) can be found here.
The WICP has seven members from national woolgrower organisations, is led by an independent Chair, and also includes the Department of Agriculture, Water, and the Environment (DAWE) and AWI representatives.
The WCG is a broader consultation group comprising 28 production-based woolgrower group representatives from across Australia, as well as members from the WICP. The current focus for this consultation group is to develop a 10-year strategic plan for Australian woolgrowers, which was one of the recommendations from AWI’s 2018 Review of Performance.
During the development of the 10-year strategic plan the WCG will include next generation woolgrower representatives from their respective organisations to assist in this plan.
WICP and WCG membership is as follows:
- Independent Chair: Lyndsey Douglas – appointment effective for 12 months from 1 July 2020
- Australian Association of Stud Merino Breeders
- Australian Superfine Wool Growers' Association
- Australian Wool Growers Association
- WoolProducers Australia
- Pastoralists & Graziers Association (PGA) - Western Australia
- Broad wool representative
- Commercial Merino Ewe Competitions Association
- Department of Agriculture representative Department of Agriculture, Water, and the Environment (DAWE).
- Two AWI Board representatives
- Australian Dohne Breeders Society
- Birchip Cropping Group
- Flinders Ranges Merino
- Liebe Group
- Mallee Sustainable Farming Group
- Monaro Farming Systems (MFS)
- NSW Farmers Association
- NSW Stud Merino Breeders' Association
- Queensland Merino Stud Sheepbreeders Association
- SA Stud Merino Sheepbreeders Association
- Stud Merino Breeders Association of Tasmania
- Stud Merino Breeders' Association of WA
- Tasmanian Farmers & Graziers Association
- Victorian Farmers Federation
- Victorian Stud Merino Sheep Breeders Association
- Western Australian Farmers Federation
- WICP Members – Current (7 members)
- WICP Chair – Observer
WICP meetings are held three times per year and the WCG workshop is held once a year to coincide with key dates in AWI’s planning cycle, enabling industry feedback to be considered in the company’s decision-making. This year, WCG meetings will occur more frequently as this consultation group is the principal oversight body for delivering ‘Wool 2030 – A strategic plan for Australian woolgrowers’.
Meeting dates in calendar 2020 are as follows:
WICP: 4 March, 27 May, 12 August
WCG: 30 March, 30 April, 14 May, 28 May, 11 June, 25 June, 9 July, 12 November
Woolgrowers wanting to provide feedback through the WICP or WCG are encouraged to contact their member organisation.
AWI established the Animal Welfare Forum in 2009 as a forum for engaging key animal welfare organisations and researchers on sheep welfare issues.
The Animal Welfare Forum includes key stakeholders in animal health and welfare: RSPCA Australia; the Australian Veterinary Association (AVA); researchers from CSIRO and Melbourne and Sydney Universities; Animals Australia; Humane Society international – Australia; Four Paws Australia and long-standing Animal Welfare advocates.
The Animal Welfare Forum meets annually and allows for robust and open dialogue between parties on issues of importance to sheep health and welfare
Under its enabling legislation, the Wool Services Privatisation Act 2000, and Statutory Funding Agreement (SFA) AWI must conduct an independent poll of levy payers every three years to determine the amount of levy to be collected from woolgrowers. The levy poll must be conducted in accordance with the Wool Services Privatisation (Wool Levy Poll) Regulations 2003.
Known as "WoolPoll", the poll gives levy payers the chance to set the rate of wool levy they will pay for the following three years, by voting for their preferred levy rate option. Under the regulations three to five options must be presented to levy payers, including a zero rate. The levy rate that receives the most votes is recommended to the Minister for Agriculture and reflected in relevant primary industries excise legislation.
The outcome of the WoolPoll - the levy rate and the proportion of funds to be spent on research, development and marketing - is used to negotiate a new SFA with the Federal Government, which governs AWI's expenditure and operations for the next three-year period.
The outcome of the poll also forms the basis of AWI's Strategic Plan, which outlines the key investment priorities and activities for the next three years. The plan is based on woolgrower and government priorities for expenditure, which AWI seeks through a robust consultation process during development of the plan.
At the 2018 WoolPoll, woolgrowers voted to pay a 1.5 per cent levy to AWI for 2019/20 - 2021/22 (previously 2 per cent).
Visit www.woolpoll.com.au for more information about WoolPoll 2018.
AWI Business Cycle
AWI operates on a Triennial Business Cycle. The current (2019/20 - 2021/22) cycle started on 1 July 2019 with the implementation of the 2019/20 - 2021/22 Strategic Plan. The following outlines the activities and processes which underpin AWI's operations throughout the Triennial Business Cycle.
The Strategic Plan outlines AWI's strategic direction and targets for the strategic period (2019/20 - 2021/22). AWI will report against these targets through its extensive reporting mechanisms including the AWI Woolgrower Industry Consultation Panel, the AWI Woolgrower Consultation Group, the Annual Report and Beyond the Bale.
In drafting the Strategic Plan, AWI consulted widely with woolgrowers and their representatives to ensure industry views and priorities were incorporated into the final plan. This included a Strategic Planning workshop on 30 January 2019 attended by woolgrower representatives from 25 groups.
Prior to WoolPoll, an independent Review of Performance assesses AWI’s performance against the Strategic Plan, relevant Annual Operating Plans, compliance with the Statutory Funding Agreement and general overview of operations.
Based on the outcomes of the 2012-15 independent Review of Performance and WoolPoll, AWI negotiated a new funding contract - the Statutory Funding Agreement - with the Federal Government that governs AWI's expenditure and operations for the following four-year period.
Based on the three-year Strategic Plan, every year AWI develops an Annual Operating Plan which outlines the activities and investments to be made over the next year. AWI consults with industry to ensure their views are incorporated into the plan.
Prior to WoolPoll, AWI must commission an independent Review of Performance to assess its performance against the Strategic Plan, relevant Annual Operating Plans, compliance with the Statutory Funding Agreement and general overview of operations.
Woolgrowers vote at WoolPoll every three years on the amount of levy they will pay for the next three-year period for research, development and marketing activities, and the direction in which levies will be invested. Woolgrowers can consider the results of the independent Review of Performance when making their levy decision at WoolPoll.