AWI director urges woolgrowers to consider boost to levy at WoolPoll

Don Macdonald spoke at the Queensland State Sheep Show in Blackall, as AWI ramps up its WoolPoll year activities and told growers it was time to "put down the truncheons that have belting us over the head and work together to rebuild this industry".

"It's your company, you have to drive it," he said.

At the 2015 WoolPoll AWI pushed for 2.5pc but growers chose 2pc, while at the 2018 and 2021 WoolPolls levy payers eschewed AWI's recommended 2pc option for a 1.5pc levy.

While AWI is yet to publicly come out and ask for a particular levy amount, Mr Macdonald told the crowd that the 2018 WoolPoll result came amid "the overhang of some political unrest within the industry, we had a wool market that was sailing along fantastically and we had reserves of over $120 million".

"We got belted over the head with that and saw the levy drop from 2pc to 1.5pc," he said.

"For those enough in the room old enough to remember and there's a few of us, woolgrowers paid 4pc levy for market research, for marketing and R&D all the time during the floor price.

"Most of us grew up with 4pc levy... the New Zealanders still today in New Zealand Merino have a 4pc levy and a whole lot of marketing, no R &D.

"At 2pc everyone seemed to be happy with that, we've gone to 1.5pc and the company has got its back to the wall."

Mr Macdonald told ACM Agri that even though AWI still has about $65 million in reserves, there was less funding available for projects than woolgrowers might perceive.

Out of the reserves $5 million is earmarked for dealing with exotic animals disease outbreaks, while enough money also has to stay in the coffers to wind up the company, pay out staff and do anything else required if AWI were to be wound up.

Meanwhile $15 million forms an innovation fund for "blue sky projects that will make a difference to the industry".

Mr Macdonald said AWI has been expending a lot of energy on the issue of shearing since the COVID labour shortage, tripling its budget in that area, putting $10 million towards it over the course of three years.

"Things like that are filtering through and they're not overnight quick fixes... but people are getting their sheep shorn," he said.

Mr Macdonald also identified bioharvesting research and fighting European eco-labelling laws as key priorities for AWI.

With AWI offering up to five options to levy payers, Mr Macdonald explained there will have to be a 0pc option, to offer the chance to wind up the company, along with the current levy and options 0.5pc either side of it.

"If 2pc was to be the preferred option of the company it has to get 50.1pc at the first poll," he said.

"Because if it goes to preferences 1.5pc will win, absolutely, and we saw that in 2018."

Mr Macdonald said he would also like to see a far greater amount of levy payers take the opportunity to have their say this year.

"In the last WoolPoll we had about 25pc grower participation and we want it to be a lot higher than that," he said.

WoolPoll voting will open in September with the result to be announced at the AWI annual general meeting in mid-November.