AWI board candidate, major wool exporter and processor, Steven Read, has called out Australian Wool Innovation (AWI) on their massive operation gap in their strategical process.
"The key issues are relatively clear. Rebuilding trust and confidence with woolgrowers, the majority of whom are disillusioned with AWI," Mr Read said.
"Rebuilding trust and confidence with the federalgGovernment. They are the single largest source of funding for AWI and Minister Littleproud has been clear that he wants genuine change at AWI.
"And developing early stage processing in addition to China. We need to focus less upon the catwalk and champagne lunches and use 1.5 per cent, not 2pc, of levy funds to re-develop processing to diversify in addition to China."
Currently in excess of 85pc of Australia's raw wool is shipped to China. About half of that amount is processed into garments and sold within China.
The remaining 50pc is sold, predominantly, into Europe and USA.
"China is important to us - and will continue to be so," Mr Read said.
"But we also need to work on developing other buying channels to create more competition amongst buyers for our wool."
The beneficiary of diversity and R&D into efficiencies is simple, Mr Read said.
Either the garments become cheaper and the industry will sell more or there will be fewer costs involved in the supply chain and a higher price for wool can be paid.
The reality is, he said, it will be a bit of both.
In regards to the culture of AWI, Mr Read said to date they simply chose to run their own race.
"They are not big on collaboration. They have a view, they talk to the industry, but they don't hear, they don't listen and they forge on," he said.
"The online market trading platform, WoolQ, which AWI has spent $6.3 million over five years developing is an outstanding example of this.
"AWI could come up with the best plan in the world, but if you can't work with the people that do it for a living, you can guarantee it is going to be a failure."
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Mr Read said he believes he can help rebuild bridges.
"The chance of AWI developing their own supply chain and all their talk of blockchain marketing, it all exists already, he said.
"They have to develop an attitude of collaboration that gives them leverage. An attitude of achieving what is actually good for growers and the industry at large.
"AWI are not addressing the cultural issues or what I think is the biggest strategic jab in the wool industry as it stands today, which is diversification and innovation in processing fibre to fabric."
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