Spearwood support

19 Feb, 2008 09:00 PM

A SHOW of force among WA’s wool industry organisations has supported retaining the Spearwood-based wool selling centre.

Fourteen organisations — inclu-ding Primaries of WA, West Coast Wools, Stawool Brokers, Dyson Jones and Wool Agency — relea-sed a letter last week highlighting the importance of having a centre in WA.

A proposal to close down the WA centre had previously been mooted by Elders.

The letter said the costs of selling would increase, price returns would decline and flexibility of selling would be greatly reduced if the industry made the move towards centralised selling.

For buyers, exporters and scourers, it would mean less competition and a loss of workskills for the state.

Previous studies into centralised wool selling which form the basis for the current system of three major centres have demonstrated that the savings from centralisation accrue to exporters in the host centre, reducing their costs.

Savings to producers only come from faster access to market, something that this current proposal removes from WA producers, the letter said.


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