Market access key to growth: Flugge

24 Mar, 2004 10:00 PM

WOOLMARK chairman Trevor Flugge said market access was the key to generating growth in wool production, not increasing price compared to other textiles.

"Most of the work that we do is all about gaining market access," Mr Flugge said.

Mr Flugge said Australian Wool Services, Woolmark's parent company, was focusing its activities on new technology innovation, quality certification and licensing, retail presence and visibility and shareholder value.

He said the wool industry was low on confidence and faced significant challenges, but he was confident there was a place for wool in the global retail fibre market.

Mr Flugge said the industry needed to lift its game on providing quality behind its promotional efforts and bring consumers and producers closer together.

"The wool industry has to find ways of backing up the promotion of its product with performance," he said.

"Unless you back it up with the product, logistics, quality then very quickly your dollars are wasted.

"The debate has got to be about yes we can promote our products more but we've also got to find ways of bringing that producer and consumer closer together."

Mr Flugge insisted wool was a commodity.

"It is substitutable and therefore it basically responds to supply and demand," he said.

"Market access becomes the key to profitability because if you can get consistent market access then you can increase production.

"But if you don't have market access and you've got product sitting in the shed then frankly that detracts from profitability."


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