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 2008-09
Chairman's report It has been another big year of challenges and opportunities for AWI and its shareholders. Since last November, it has become apparent that, in the current environment, our business model was unsustainable. The company needed a major overhaul and that s what the new Board has delivered. We are now a leaner company, one that is run in a cost-conscious and business-like manner -- how you and I run our businesses. We have examined and changed many processes within the company to become a more efficient, accountable and performance- based organisation with reduced overhead costs. This streamlining has helped provide a better focus on our core goal of increasing demand for wool. Under the new business plan, 70 per cent of the overall spend will involve marketing and off-farm research, and 30 per cent will be allocated to on-farm R&D. This allocation is based on the assumption that the present 2 per cent wool levy is continued at WoolPoll this year. There has been much discussion about the new business plan, and I am pleased to report of its wide acceptance among woolgrowers, industry stakeholders and wool processors at this year s International Wool Textile Organisation (IWTO) congress. It is not only you, AWI shareholders, who have requested a revival of targeted and effective wool marketing, our Woolmark licensees in key markets across the world have joined you in the call. We have started the wool revival and will continue the momentum. More market-based activity is being undertaken by the daily services of AWI s global sales network. These staff work the supply chain, collaborating with knitters, weavers and retailers across all key markets to increase the demand for wool under the Woolmark logo and the many associated brands woolgrowers also own. The sales network creates offers and products for business to business (B2B) marketing initiatives as well as working with retailers directly to promote Merino innovations and establish business to business to consumer (B2B2C) marketing campaigns to ensure the sell-through of Merino wool at retail. While our major investments will be in marketing, the Board s review process identified that action is still needed in the on-farm areas of lice, wild dogs, flystrike prevention and shearer training. Although the overall on-farm R&D budget has been reduced, investment in these key areas will increase. Flystrike prevention strategies have been introduced into the National Wool Declaration to allow transparency for buyer and seller: woolgrowers can now declare their practices and wool buyers can reward them. Ultimately, the world market will decide the issue. AWI s new flystrike prevention policy supports a scientific, fact-based approach to ensure the optimal health, welfare and productivity of Australian sheep, and to ensure they are protected from the risks of disease and death. AWI supports all woolgrowers in their choice of best practice made in the interests of their animals. Merinos have long been the core of the national flock, and they have never been as important to the sheep industry as now. They underpin the meat industry as well as the wool industry. Prices such as the $156 for Merino wethers we saw at Katanning earlier this year show how valuable Merinos have become. However, Merino ewe numbers are down at the moment due to the drought and enterprise choice. Consequently Australian shorn wool production has fallen -- national production is now at its lowest in about 85 years. It is crucial to rebuild Merino ewe numbers again. This may take some time, but it is necessary so that Australian woolgrowers can take advantage of higher wool prices when global economies pick up. I believe that businesses with a self-replacing Merino flock will be the most profitable businesses into the future. AWI has to continue to improve. The review of AWI s performance for the three years to July 2009 confirmed what many woolgrowers already knew: their organisation needed to change the way it conducted business. Strategic planning, governance, stakeholder consultation and performance measurement are areas where improvements have been and continue to be made with the aid of expert advice from leaders in these fields. The review and AWI s response to it has formed part of WoolPoll, through which woolgrowers have again had the opportunity to have a say in the future of AWI. The wool industry continues to evolve, and AWI evolves to meet it. Despite the many changes around us on- farm and in the market, our commitment to the woolgrowers who fund us, the Woolmark licensees that work with us, and the brands and retailers who take wool to the consumer gets stronger. Together, we are working for a better future for wool. I would like to thank Dr Bell for his years of service to AWI as a Director, and we wish him well on his retirement. Wal Merriman Chairman, Australian Wool Innovation 15 October 2009 UP FRONT
AWI Annual Report 2007-08
AWI Annual Report 2009-10