by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Wool Stocktake : AWI Annual Report 2013-14
On a strategic level this year was an important one for your company. This was the first year that AWI operated under the new three-year Strategic Plan. In the lead up to next year's WoolPoll, AWI will be measured against the targets set in the plan, through the independent Review of Performance. This year we increased expenditure across our marketing and R&D portfolios, drawing down by 14 million dollars on company reserves. The expenditure was allocated in the ratio of 60:40 as was voted by the shareholders in the 2012 WoolPoll and as outlined in the Strategic Plan. In 2014/15 we again plan to draw down on reserves. From an operational perspective, the structural instability we have seen with wool prices and the exchange rate is an area for concern. As a consequence, we have made a decision to adopt a conservative approach to investment of woolgrowers' funds in 2014/15. At global and country-specific levels we have prioritized those programs that yield the strongest potential returns, continue to position Australian wool in the premium/luxury space and increasingly drive sales opportunities for our partners in the "luxury" and "premium bridge" segments of retail. We have instituted a detailed system for assessment of investment returns. This system reflects the unique technical and marketing contexts within which AWI operates, and our obligations to Australian woolgrowers and the Australian government. Reflecting the importance of this issue to the Board and management, and in the interests of transparency, our approach is detailed through the AWI Measurement and Evaluation Framework which, along with all completed external evaluations of our investment programs, is publicly accessible on our Wool.com website. We are more committed than ever to providing quantifiable returns on woolgrower and government investment while managing the business in a cost- conscious and business-like manner, the same as we all run our businesses. The price of wool is forecast to strengthen, driven largely by demand side gains but also reflecting tight supply in Australia. Following some challenging global economic conditions, recovery (albeit slow) now appears to be happening in the USA, Japan and Western Europe, along with continued growth in China and rising incomes in the key emerging economies of Asia and Eastern Europe. This year we have set up a number of significant projects that will deliver in the 2014/15 year. One of these projects is the wool selling systems review. This project is aimed at a full review of the transaction between the first owner and the second owner. By researching and developing new ideas, AWI invests funds to increase the profitability of growing wool. Woolgrowers help decide the areas of investment, and wild dogs, flystrike, shearer training, genetics, worms and lice are regularly listed as their top on-farm priorities. While some of our on-farm R&D investments are naturally aimed at delivering benefits primarily in the long-term, there are many investments providing benefits in the short term. These include our extension activities such as the Lifetime Ewe Management program that continues to show significant benefits to participants through improved net reproduction rate. This will also be extended to growers through a new wool-focused Bredwell Fedwell program. Other examples of investment that provide immediate benefit are cash grants for on-ground activities to combat wild dogs, Making More From Sheep events across the country, and the creation and co-funding of ParaBoss. R&D also takes place off-farm to develop new innovations, such as the new wool fabrics coming out of the Wool Development Centre and Wool Education Centre in China, which is co-funded by AWI with the leading wool textile enterprise Nanshan Group. We are also helping establish and expand new manufacturing centres for wool, such as in Vietnam and Russia. Marketing works to increase the demand for Australian wool in key markets. This occurs through a range of campaigns with their own stated aims and targets. For example the Campaign for Wool highlights the natural and environmental aspects of wool of all types and microns, and the International Woolmark Prize engages the greatest emerging fashion designers with Merino wool. Similarly, the Merino Wool. No Finer FeelingTM campaign is attracting a significant number of the biggest names in the fashion and premium apparel industry. When we started this campaign four years ago, we started with zero partners; now we have more than 80 partners. All of these campaigns are generating significant increases in awareness off and appreciation for our wonderful fibre. This year marks the 50th anniversary of our world- famous Woolmark brand. The Woolmark logo's enduring appeal continues to deliver significant returns to Australian woolgrowers who own it. It has been applied to more than five billion products worldwide since it was first launched in 1964 and is now being widely used to promote Australian wool through all of AWI's global marketing campaigns. The logo is something which we as woolgrowers have all grown up with and are proud of, like our wool- growing businesses. As Chairman of the AWI Board I am also proud of what AWI has been able to achieve over the 2013/14 financial year and look forward to further gains for our fibre and the industry. Wal Merriman Chairman, Australian Wool Innovation 22 August 2014 UP FRONT
AWI Annual Report 2014-15
AWI Annual Report 2012-13