Welcome to Wool.com

The Wool Selling Systems Review (WSSR) was commissioned by AWI on behalf of their shareholders, Australian woolgrowers.

The key objectives of the WSSR were to improve the returns that woolgrowers receive for their wool through:

• evaluating whether greater efficiencies and cost savings within the exchange of ownership between the seller and the first buyer are attainable
• understanding the potential for increased competitive tension throughout the wool selling process and how it can be achieved, and
• determining whether there is sufficient transparency within the exchange of ownership to allow woolgrowers to make the most informed commercial decisions about their wool growing enterprise.

The WSSR focuses on all the processes and costs that sit within the exchange of ownership process from the shearing shed through to the ships rail.

The AWI Board selected a Review Panel to drive the WSSR and provide direction and leadership. The WSSR Review Panel declared that the review process must be a highly consultative one that encourages buy-in from all sectors of industry, and in particular Australian woolgrowers.

Key dates

• Release of Issues Paper - 10 December 2014
• Due date for initial submissions - 27 February 2015
• Release of Panel Discussion Paper - 6 July 2015
• One-day Stakeholder Workshop - 21 July 2015
• Due date for final submissions - 4 September 2015
• Release of Final Report - 1 February 2016

Final Report

The Review Panel provided its Final Report (PDF 1.5Mb) to AWI in January 2016. AWI released the Panel’s Final Report on Monday 1 February 2016 (the following working day after the AWI Board’s January Board meeting held on Friday 29 January 2016).

This Report comprises six sections:

• Section 1 deals with the objectives and conduct of the Review.
• Section 2 provides data and information on the wool industry.
• Section 3 describes the wool selling institutions.
• Section 4 describes the wool selling system.
• Section 5 deals with issues covered by the Review.
• Section 6 deals with the Wool Exchange Portal.

Discussion Paper

The Review Panel released a Discussion Paper (PDF 401Kb) on 6 July 2015 to generate further discussion about the wool selling systems.

The Discussion Paper presented the Panel’s preliminary views on potential options to improve the efficiency of the wool selling systems and, in turn, woolgrower profitability. In doing so, the Panel identified the following as ‘priority areas’, which are expanded upon in the Discussion Paper:

• Operational efficiency in selling Australian wool – the logistics and costs of transporting, storing, testing, auctioning or use of other selling methods, and delivery to the ship’s rail for export.
• Pricing efficiency of selling Australian wool – ensuring that price realisation – the price in the market – reflects the underlying demand for, and supply of, Australian wool.
• Consolidating and improving the choices on offer to woolgrowers and buyers using available technology – this will facilitate the growth of alternative trading pathways not used intensively to date, and at a reduced cost.

The Discussion Paper assisted individuals and organisations to prepare submissions on the Panel’s preliminary views expressed in this Discussion Paper and following discussions at the stakeholder workshop on 21 July 2015.

Below is a list of submissions that were received and reviewed by the WSSR panel following the release of the Discussion Paper. (The WSSR Panel reserved the right to not make public any submissions that it deemed to be inappropriate or not constructive.)

1. A & J Farran (woolgrowers from Edenhope, Vic)
2. R. B. Crawford (woolgrower from Moulamein, NSW)
3. Geoffrey Beath of Bryton Wool
4. Talman Pty Ltd
5. NZX Australian Agribusiness
6. W. C. Freeman from Wingham, NSW
7. United Wool Company Pty Ltd
8. Australian Superfine Wool Growers' Association Inc
9. Australian Council of Wool Exporters and Processors
10. Australian Wool Testing Authority Ltd
11. i-Trade Wool
12. Ming Ho Wool Industry Company Ltd
13. The National Council of Wool Selling Brokers of Australia Inc
14. Peter Small
15. Stephen Blair
16. Techwool Trading Pty. Ltd
17. WoolProducers Australia
18. NSW Farmers’ Association
19. G.Schneider
20. Modiano Australia Pty Ltd
21. Australian Merino Exports Pty Ltd
22. David Ritchie
23. Australian Wool Exchange Limited (AWEX)
24. Private Treaty Wool Merchants of Australia
25. Zhejiang Redsun Wool Textile Ltd.
26. WAFarmers Federation
27. PJ Morris
28. Australia Council of Wool Exporters and Processors (ACWEP), Inland WoolBrokers Association (IWBA), The National Council of Wool Selling Brokers of Australia (NCWSBA)

Issues Paper

The Review Panel released an Issues Paper (PDF 575Kb) on 10 December 2014 to assist individuals and organisations to prepare submissions to the inquiry.

The Issues Paper contains and outlines:

• the scope of the WSSR
• matters about which the Review Panel is seeking comment and information, and
• information about how you can get involved in the WSSR.

The Issues Paper was designed to disaggregate all the phases within the area of scope to allow targeted submissions. It provides background on each of the following phases:

• Phase 1 - Wool Preparation
• Phase 2 - Delivery & Testing
• Phase 3 - Wool Appraisal
• Phase 4 - Price Realisation
• Phase 5 - Invoicing & Payment
• Phase 6 - Export Process
• General (this refers to issues raised that do not sit only within one of the above phases)

Individuals and organisations were encouraged to make submissions on any, or all, of the above six phases. The Review Panel also encouraged submissions that do not sit within any of these six phases but still sit within the overall scope of the review.

Below is a list of submissions that were received and reviewed by the WSSR panel. (The WSSR panel reserved the right to not make public any submissions that it deemed to be inappropriate or not constructive.)

1. ICS (Mr Andrew Woods)
2. Kym Baty (wool classer)
3. Don Pratley (woolgrower from Bathurst, NSW)
4. David Abbott (woolgrower from Armidale, NSW)
5. A & J Farran (woolgrowers from Edenhope, Vic)
6. John Buxton (woolgrower from East Gippsland, Vic)
7. Australian Wool Testing Authority (AWTA)
8. Peter Small (woolgrower from Hamilton, Victoria; and Chairman of Quality Softwools Australia)
9. Richard Bell (woolgrower from Taralga, NSW)
10. Edward. H. Wymer
11. Colin Agar (woolgrower from Penshurst, Vic)
12. R. B. Crawford (woolgrower from Moulamein, NSW)
13. Australian Merino Exports Pty Ltd and United Wool Company Pty Ltd
14. Fred Tuddenham (wool classer from Herne Hill, Vic)
15. W. C. Freeman from Wingham, NSW.
16. Pastoralists & Graziers Association of WA
17. Symbotic Pty Ltd
18. Grant Burbidge (woolgrower from Tarcutta, NSW)
19. Dr John Williams (Managing Director of the Food and Fibre Supply Chain Institute)
20. Edward. H. Wymer (supplementary submission)
21. G. Schneider Australia Pty Limited
22. David Ritchie
23. David Upperton (woolclasser and woolgrower)
24. Raymond Ltd, India
25. Ag Concepts Unlimited Pty Ltd
26. Alistair McDougall (woolgrower and Chairman of Slamp Pty Ltd)
27. Alix Turner (woolgrower from Wayo, NSW)
28. The National Council of Wool Selling Brokers of Australia Inc
29. Australian Wool Network
30. Nekan Trading (Pty) Ltd
31. John Coughlan (woolgrower from Cudal, NSW)
32. Modiano Australia
33. Elders
34. Tom Silcock (woolgrower from Telangatuk East, Vic)
35. Victorian Farmers Federation
36. WoolProducers Australia
37. Allen F Sheridan (woolgrower from Bengworden, Vic)
38. i-Trade Wool
39. Financial & Energy Exchange Ltd
40. Ausfine Pty Ltd
41. Gordon Litchfield of Gordon Litchfield Wool Pty Ltd
42. Stephen Blair
43. Andrew Dennis of Rosewood Wool Services
44. Dynon Wools (Aust) Pty Ltd
45. Chris Lang
46. Ted O’Brien
47. Don Belgre Pty. Limited
48. Jock Munro (woolgrower from Rankin’s Springs, NSW)
49. Yarra Wool
50. Michael Field (woolgrower and Managing Director of T.A. Field Estates Pty Limited of Jugiong, NSW)
51. Wayne Beecher of Beecher Wool Services
52. Steve Bryce of Bale Out Pty Ltd
53. Business Council of Co-operatives and Mutuals
54. New England Wool Pty Ltd
55. Techwool Trading Pty Ltd
56. Tianyu Wool Pty Ltd
57. NSW Farmers’ Association
58. AuctionsPlus
59. Motohiro & Co., Ltd.
60. Australian Wool Exchange Limited (AWEX)
61. Australian Council of Wool Exporters and Processors (ACWEP)
62. Sistema Moda Italia and Italian Wool Trade Association
63. Private Treaty Wool Merchants of Australia
64. Australian Superfine Wool Growers’ Association (including appendices from Stanford Graduate School of Business and John Powell of Optimal ICM)
65. Jemalong Wool Pty Ltd
66. Western Australian Farmers Federation (WAFarmers)
67. Westcoast Wools
68. WoolConnect Ltd