Voting in WoolPoll 2018 closed 2 November. The participation rate of voting is outlined below compared to WoolPoll 2015.
|WoolPoll 2018||WoolPoll 2015|
|Number of valid voters (forms) returned||13,506||12,912|
|% valid voters (forms) returned||28.67%||31.83%|
|% valid votes returned||55.92%||50.68%|
How are AWI finances managed?
We run a budget the way growers do on farm – adjusting all the time for variables like price, weather, production and more. When the AWI Board makes financial decisions and allocates budgets, it considers:
- delivering a benefit to woolgrowers and the industry – increasing woolgrower profitability and global demand for wool.
- woolgrowers’ priorities – what R&D and marketing activities have been identified as priorities during consultation with woolgrowers.
- alignment with AWI’s Strategic Plan – developed by the AWI Board to reflect woolgrowers’ R&D and marketing priorities.
- pathway to commercialisation – ensuring the investment can be commercialised and thereby realise benefit for growers.
- market failure – where private investment is low/non-existent.
The AWI Board’s investment decisions are guided by the following questions:
“Will this decision benefit woolgrowers?”
“Are we helping to secure the industry’s future?”
Income and Expenditure
Consistent growth in wool prices across most microns for much of the past three years has meant AWI’s levy income has risen. During this period AWI has been building its resources and expenditure from $76.6 million in 2015/16 to a forecast of $88 million in 2017/18 to deliver R&D and marketing for woolgrowers.
This has allowed us to fund more wild dog control initiatives, train more shearers, commence a major genetic life-time productivity project, initiate a process to modernise the wool selling system, deliver more education opportunities for our young growers, and expand our marketing initiatives in our major consumption markets in China, North America and Europe.
The Board believe this level of investment is warranted, to continue to drive demand, as well as to support industry growth, sustainability and productivity. Simultaneously, AWI is focused on managing its finances and investments prudently to build resilience from this ‘once in a generation’ period.
The major challenge looking forward for Australian wool production is land competition and how Australian farmers look to best utilise their land. It is expected that this competition in the years ahead is only going to increase, and the challenge is how to maintain wool as a key competitor and feasible land use option.
Land use competition is increasing in importance due to the growing global population and the effects that climate change is having. By 2050, the population will have reached 10 billion people and with this added comes a higher demand of food, apparel and other consumer goods. Climate change is also likely to have an impact on land use as seasonal patterns will shift and cause farmers to adapt their habits accordingly.
Australian wool production has declined in recent years as a result of drought and poor seasonal conditions in major wool-growing areas throughout Australia. Positively, the forecast for the 2020/21 season, sees a slight increase of 2.1% in wool production which would see the national clip at 290 million greasy kgs. The first estimate for the 2021/22 season for shorn wool production is 305 million greasy kgs, an increase of 5.1% compared with the current season.
- EMI would average 1225c/kg
- Total revenue $73.4 million
- Expenditure would be $73.4 million
- Available Reserves would decline by $5 million – with AWI drawing down on funds to deliver R&D and marketing investment commitments
- Closing reserves would be $84.0 million
- EMI ranged from 1287 – 1546c/kg
- Total revenue was $88.0 million
- Expenditure was $70.8 million
- Available reserves reported a surplus of $17.2 million
- Closing reserves were $106.3 million