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Beyond the Bale : September November 2009
WoolPoll 2009 There will be a 70:30 ratio between off- farm and on-farm expenditure. The 70 per cent off-farm spend includes marketing (50 per cent) and off-farm R&D (20 per cent). The 30 per cent on-farm spend includes on-farm R&D, and education and extension programs. This would deliver a marketing budget of $22.9 million and an R&D budget of $22.9 million, of which $13.8 million would be available for on-farm R&D and $9.2 million for off-farm R&D. WOOLPOLL 2009 TIMETABLE ACTIVITY DATE Voting kits mailed to levy payers, voting opens 25 September 2009 Deadline for levy payers to cast votes 6 November 2009 Announcement of WoolPoll result at AWI AGM 27 November 2009 Date from which voted rate is applicable 1 July 2010 AWI CEO Brenda McGahan addresses the IWTO conference in Frankfurt. The wool world stands united Woolgrowers and global processors stand united behind AWI's new marketing plan and Australia's ongoing research into animal health and welfare. This was the message from the International Wool Textile Organisation (IWTO) conference held in June in Frankfurt, Germany. AWI CEO Brenda McGahan who spoke at the IWTO conference was pleased with the new mood of collaboration and cooperation to sell more wool, despite the tough global economic conditions. "IWTO is a major assembly of our customers through the supply chain so it is vitally important to communicate with such a meeting," Brenda says. "I was pleased to receive endorsement for AWI's new Operational Plan -- to live within our means, maximise funds for R&D and leverage precious marketing funds with retail partners behind the Woolmark, supported by brands such as Australian Merino." IWTO president Gunther Beier commented: "I applaud the stance taken by Australian Wool Innovation to commit further funding to the concept of business to business to consumer (B2B2C) marketing with the Woolmark as the leading brand." He added that the IWTO strongly supported AWI's research into applying 'pre-anesthesia' treatment in conjunction with the present 'post-anesthesia' blowfly strike prevention treatment performed on Merino lambs as a possible interim or even permanent solution until something more suitable is found. At the request of the IWTO, AWI Board member Meredith Sheil gave a presentation on sheep welfare, which was also welcomed. The IWTO has agreed to support AWI in helping to communicate the message of the high welfare standards of Australian sheep producers and the Australian industry's strong progress in developing welfare- improved flystrike prevention practices. Dr Sheil also outlined the key role that the National Wool Declaration plays in giving the world's wool buyers the chance to access welfare-friendly wool (see page 26). More information: www.iwto.org INVESTMENT OF INCOME GENERATED BY THE WOOLMARK BUSINESS Global Sales Network -- working towards becoming self-funding INVESTMENT OF LEVY FUNDS AND GOVERNMENT CONTRIBUTION Marketing 50% Marketing O -farm R&D On-farm R&D O -farm 70% On-farm 30% R&D 50% Such innovation is a crucial driver of the Australian wool industry and continues to serve wool well. Since the previous WoolPoll in 2006, The Woolmark Company has become part of AWI. The Global Sales Network associated with Woolmark is working towards becoming self-funding. More information: www.woolpoll.com.au, 1800 209 118 Every three years WoolPoll gives wool levy payers the opportunity to vote on what percentage of their wool income will go to funding wool innovation, marketing, on-farm and off-farm R&D. The result of WoolPoll 2009 will help determine AWI funding for the period 1 July 2010 to 30 June 2013. The Board of AWI recommends Australian woolgrowers vote for a 2 per cent levy for marketing and R&D. With a new Operating Plan developed with grower input, AWI has a sound strategy to rejuvenate the Australian wool industry. AWI's marketing strategy aims to boost wool demand across key world markets through targeted and leveraged campaigns with retail and brand partners. The R&D program aims to deliver improved outcomes with greater efficiency. A new, tighter and more transparent research governance structure is being implemented, with integration of on-farm and off-farm R&D. This will improve research project selection and reduce costs through streamlining functions. Despite a reduced national flock, a 2 per cent levy, when combined with Australian Government funding, would provide the required funds to implement this plan. At 2 per cent, AWI would have an estimated annual income of $45.9 million. UPFRONT 3
June August 2009