AWI mulls over WoolPoll levy cuts

AWI has not yet made any decisions around which levy rate to recommend ahead of WoolPoll later this year.

But with AWI's reserves reaching their lowest point in a decade at $83.81 million according to the most recent annual report, the body says it is carefully considering which programs to keep and which to cut.

AWI CEO John Roberts said this year the messaging around WoolPoll would be simpler as in past years there had more significant reserves to draw upon.

"What we say you'll get on the various levies will be what people get," he said.

"I think in the past we'd set a WoolPoll information kit... but if there was a really big opportunity there were always reserves to dive into but that won't be the case.

"What's laid out in the voter information kit will the limitation of what we can spend."

For the past six years the levy has been 1.5 per cent, with growers choosing in 2021 not to heed AWI's push towards a 2pc levy.

Mr Roberts said based on current wool prices and anticipated volumes, retaining the 1.5pc levy would inevitably mean some cuts.

"We know what the priorities are," he said.

"When we wrote the last strategic plan it was very clear that growers wanted us to put money into shearer training and I can't see us easing back on that.

"Also defending the fibre in terms of the product environmental footprint standards in Europe, those are things we can't afford to stop doing.

"But I think higher risk research... things that could be a gamechanger but the likelihood of making it is minimal... I think those sorts of things we will have to have a closer look at."

Examples of such "higher risk research" include projects around developing a flystrike vaccine and using sterilised blowflies to reduce flystrike.

"We all know how good they'll be if they come off but they cost money and they take years," Mr Roberts said.

Mr Roberts said AWI would also have to consider whether it might need to cut back in areas such as education or if there might need to be more staff cuts.

"It also depends on where the wool price goes... we travel the same journey as the wool grower," he said.

"The price goes down, our revenue goes down so when they suffer, we suffer."

Mr Roberts said he belived that this year's WoolPoll was one of the most critical in history in terms of determining investment in the industry.

"We are at a point where the industry needs to seriously consider what they want to invest in their research and development and marketing company," he said.

"We know that natural fibres are very much in favour but it's not being reflected in the auction room yet.

"I'm of the firm belief that when we do come out of this global apathy that we're in now with wars, oil prices and cost of living, wool will be well positioned but it is a critical time at the industry's history.

"We're not going to advocate for a levy at this point, all we want is for growers to make an informed decision and we will live within the means of the wool grower."

Growers will receive their voting information packs in September, with voting to take place in November.

After that any resulting changes to the levy will come into effect from July 1 2025.

Any growers who have paid $100 or more in levies over the past three financial years will be eligible to vote.

Mr Roberts said AWI is keen to see as many levy payers vote as possible this time around after the 2021 WoolPoll saw a voter participation rate of just over 20pc.

"The levy is one of the few costs that growers incur that they do get to vote on," he said.

"If you want to take an interest in your industry, here's your chance.

"Growers are busy, so I get it but it's an important time for the industry."