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Wool Stocktake : AWI Annual Report 2015-16
AWI’S STAKEHOLDER LINKS AWI has developed a comprehensive stakeholder engagement strategy to ensure the views of AWI shareholders (woolgrowers and the Australian Government) and other key stakeholders are considered and incorporated in AWI’s planning and operations. This strategy encompasses engaging individual woolgrowers, woolgrower representative groups, domestic non- woolgrower industry organisations, and others throughout the wool supply chain. Working in partnership with the wool industry AWI’s investment in on-farm R&D, off-farm R&D and marketing requires the company to consult a wide range of stakeholders along the supply chain – from woolgrowers to consumers. While AWI has a robust and broad-ranging consultative framework, engagement with woolgrowers remains a key priority. In 2015/16 AWI engaged directly with woolgrowers to improve awareness of AWI’s activities, promote two- way exchanges of information and ensure stakeholder views are incorporated into key corporate planning and activities. Supply chain partners support AWI by partnering in business and marketing collaborations that deliver benefits to the Australian wool industry. These relationships assist AWI in delivering market information and RD&M outcomes for Australian woolgrowers. Examples by which AWI engaged stakeholders during 2015/16 include: • Woolgrower Industry Consultative Committee (ICC) meetings – containing delegates from the Australian Association of Stud Merino Breeders, Australian Superfine Wool Growers' Association, Australian Wool Growers Association, WoolProducers Australia, Pastoralists & Graziers Association (PGA) - Western Australia, a non- Merino breed representative. The Department of Agriculture & Water Resources is an observer of the ICC. • Regular communications with AWI advisory committees such as the IWTO Sustainable Practices Working Group, Animal Welfare Forum, National Wild Dog Action Plan Stakeholder Consultative Group and the Rabbit Advisory Group. • Participating in more than 40 forums and events with woolgrowers in regional areas – plus more 20 forums in the lead-up to WoolPoll 2015, at which woolgrowers could discuss how AWI had performed over the previous three years. • Trade, retailer and brand workshops • Woolmark licensee workshops and meetings • Meetings with manufacturers and media partners in key markets • Communications such as the quarterly Beyond the Bale magazine, AWI’s online newsletters and the AWI website (www.wool.com). Further detail on AWI’s current consultation processes is shown in Figure 1 opposite. Government partnership In 2015/16 AWI continued to review and implement its government relations strategy to strengthen relationships with government stakeholders. As one of fifteen rural RDCs, AWI’s engagement with the Australian Government is underpinned by the Statutory Funding Agreement (SFA), a contract which governs AWI’s expenditure of levy and matching government funding for eligible R&D activities. Examples by which AWI engaged government during 2015/16 are: • regular interaction with the Australian Government through informal discussions and formal meetings, participation in government processes, and day-to- day discussions • production of a SFA compliance report to further demonstrate, on a six-monthly basis, the company’s ongoing compliance with SFA requirements • production of briefing packages for Department of Agriculture & Water Resources • AWI’s participation in activities of the Council of Rural Research and Development Corporations • AWI’s participation in the development strategies under the National RD&E Framework • Trial project in-market (China) to improve the understanding and engagement of government stakeholders of AWI’s activities right along the supply chain. Partnership outcomes As a result of its strong links with its stakeholders in 2015/16, AWI is strongly positioned to: • support Australian woolgrowers to adapt to changing market conditions • deliver R&D solutions that are responsive to industry and government needs • provide a vital link between government and industry to ensure efficient and effective investment in R&D. INVESTMENT POLICY AWI is the custodian of woolgrowers’ investment in their future prosperity and the matching eligible R&D provided by Government. Therefore we seek to balance our risk position between: • investing in higher risk activities that may drive substantial growth in the demand for wool; and • the need to remain a stable organization with the capacity to continue to work for woolgrowers long into the future. Therefore our risk appetite is necessarily towards the middle of the risk-taking spectrum. Depending on our results from year to year, we may choose to increase or decrease our appetite for higher risk activities. Investment is made with an overall business target of delivering a return to woolgrowers of $3 from every dollar invested and to provide services on a cost competitive basis. We seek to have a low-medium risk weighting for our portfolio, delivering most benefits in the short to medium term. Our appetite for higher risk and longer time frames is towards on-farm R&D and processing innovation. 52 GOOD BUSINESS
AWI Annual Report 2014-15
AWI Annual Report 2016-17