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Wool Stocktake : AWI Annual Report 2007-08
New and elder generations attentive at an AWI forum taRGEt TRADE DEVELOPMENT AWI supports and works with the Australian Wool Industry Free Trade Committee to ensure that the interests of the Australian wool industry are well represented by the Australian Government and that market access issues for wool in its key global markets are addressed. The tenth and eleventh rounds of China-Australia free trade negotiations were held in November 2007 and June 2008 respectively, however overall progress of the negotiations has been very slow. AWI and the Trade Committee have been working with the Department of Foreign Affairs and Trade to ensure that wool, as Australia’s second largest export to China, is strongly featured on the agenda. Continue to progress the completion of the China FTA; monitor progress of other tariff and non-tariff barriers and measures to allow Australian wool to be traded freely. In July 2007, China’s Ministry of Commerce announced that the quota for wool imports into China had been fully allocated for 2007. To address issues of market speculation and uncertainty, the Trade Committee implemented an intensive engagement strategy with the Chinese wool processing industry, Chinese Government and Australian Government. This resulted in improvements to the quota administration rules and transparency of their implementation. AWI has implemented an Australian Government funded Agricultural Technical Cooperation (ATC) Programme project in China - Improving the Chinese fine wool marketing system to increase returns for households in the Western pastoral region. The program seeks to strengthen the already close relationship between Australia and China in agriculture and provides an opportunity for Australia to share its expertise and capacity in areas relevant to China’s needs. The value of this project to woolgrowers is that it demonstrates the commitment of the Australian wool industry and Government to working with the Chinese to deliver a free trade agreement that removes tariff restrictions and barriers to trade. INDuSTRY AFFAIRS Ensure that industry stakeholders regard AWI as transparent, accountable and delivering value on RDIM investment as measured by an annual industry stakeholder survey. An annual stakeholder survey was conducted to gauge the perceptions, expectation and level of satisfaction with AWI. An important achievement this year was an overall increase in the level of satisfaction in which industry stakeholders view the company. Importantly, more than 85% of stakeholders surveyed believe AWI adds value to the industry while more than 90% believe that establishing partnerships with international companies will help increase demand. Industry stakeholders rank building good working relationships with industry stakeholders as being of the highest importance in terms of their expectations. In this regard AWI has actively engaged with stakeholders through regular industry information exchanges and roundtable meetings with representatives from key industry bodies. AWI representatives attended and in some cases participated in annual conferences and wool committee meetings of the state farming organisations and wider industry groups. PERFORmaNcE aGaiNSt taRGEt AWI 07/08 ANNUAL 57
AWI Annual Report 2008-09
Annual Report 2006-07