AWI working for woolgrowers

AWI addresses industry opportunities and threats

AWI is the R&D and marketing organisation for the Australian wool industry. It is AWI’s role to undertake investment in these two areas on behalf of Australian woolgrowers to take advantage of the opportunities and address the challenges that the wool industry faces.

In the on-farm area, there are plenty of opportunities in which AWI is undertaking R&D on behalf of woolgrowers, such as maximising the genetic gain of sheep, improving sheep health and welfare, increasing the reproductive efficiency of ewes, and technology-based opportunities such as biological wool harvesting.

There are also industry challenges that AWI is addressing, such as ensuring woolgrowers’ environmental sustainability in the face of climate variability, tackling invasive pests and diseases, and attracting and retaining wool harvesting staff through a multi-pronged approach including shearer and wool handler training. AWI also delivers practical training programs to increase growers’ adoption of best practice on-farm management.

In the off-farm area, the Australian wool industry operates in a dynamic and competitive global market. In a commodity-based industry such as ours, it is especially vital that there is investment by AWI in the promotion of Australian wool in key markets to support its use by processors, manufacturers, brands and retailers, and of course purchases by consumers. The company also explores new and diverse product and processing opportunities for wool.

Market opportunities on which AWI and its marketing arm The Woolmark Company are working include the mega-trend towards sustainable fibres, the growing interest in the provenance of products, the increasing use of Merino wool as a high-performance fibre, and new product innovations such as wool footwear. Conversely, there are also challenges, such the casualisation of apparel and adverse regulatory proposals such as in the European Union’s Product Environmental Footprint (PEF) project.

Building value in sustainability for woolgrowers

As a natural, renewable and biodegradable fibre, wool is well placed to take advantage of the huge movement in the market towards sustainability. With the right approach and resources, the wool industry can become a global ambassador for the benefits of sustainable and circular raw materials. When compared with the extraction, waste and pollution of synthetic fibres, wool delivers clear advantages to brands and consumers looking to reduce the environmental impacts of fast fashion.

Our newly released Woolmark+ roadmap has been developed to future proof wool in response to the increasing consumer and regulatory demands for low-impact products. The roadmap consists of 13 initiatives that help woolgrowers and supply chain partners accelerate their understanding that wool already provides the solution in meeting many brands’ sustainability goals. AWI is equipping woolgrowers with the necessary tools and research to make informed decisions that can be tailored to their own unique businesses. Woolmark+ highlights all the existing sustainable practices undertaken by Australian woolgrowers and provides opportunities that will deliver tangible commercial advantages throughout wool’s value chain which will benefit woolgrowers.

Through Woolmark+, AWI is building on wool’s premium reputation and enabling global brands to better understand, value and support woolgrowers’ nature positive practices. By connecting sustainability goals along the supply chain and providing scalable opportunities, we are seeking to drive forward a prosperous, responsible and nature positive wool industry.

Have your say at WoolPoll 2024

In early September, every woolgrower who has paid $100 or more in wool levy over the past three years will receive their WoolPoll voting papers and Voter Information Memorandum containing details about how AWI proposes to invest levy funds at each of several levy rate options.

This is one of the more critical moments in the wool industry’s history and woolgrowers have some big decisions to make about their collective funding of wool industry R&D and marketing. I encourage all eligible woolgrowers to vote at WoolPoll. Voting opens on 20 September and ends on 1 November. The voting process is very quick and easy.

It’s very important to note that a vote to continue the wool levy at the current 1.5% level does not mean there will be the same amount of dollar investment in R&D and marketing by AWI as there has been during the past five years. This is because AWI no longer has the financial reserves to call on that it once did; available reserves have now been spent. In terms of dollars invested by AWI, a 1.5% vote would therefore not be a vote for the status quo. I strongly urge all eligible woolgrowers to read the Voter Information Memorandum (also available now at wool.com/woolpoll) and ensure they make the most informed decision possible. 

WoolPoll 2024 is a critical time to have your say. Remember, WoolPoll happens every three years, so the next vote following this year’s WoolPoll will not be until 2027.

Despite the challenges faced by wool industry at the moment – including subdued global economic conditions and geopolitical instability that is adversely affecting wool prices and production costs, and unseasonally dry weather in some regions is impacting feed availability and stocking levels – I believe that the long-term outlook for the industry is bright and I look forward to AWI providing a valuable contribution to that future.

This article appeared in the September 2024 edition of AWI’s Beyond the Bale magazine. Reproduction of the article is encouraged.