Woolgrowers slam 1.5pc levy omission

The 40,000 woolgrowers eligible to vote have been offered zero per cent, 1pc, 2pc, 2.5pc and 3pc as their five options for the next three years, unchanged from the previous three polls.

WoolProducers Australia and Australian Wool Growers Association have slammed the omission of 1.5pc which they say would have made Australia's wool marketing and research and development company more accountable.

But AWI chief executive officer Stuart McCullough rejected calls for a decrease to 1.5pc, warning of a "fiscal cliff" if the 2pc rate was not maintained.

The levy is matched by federal government funding, and Mr McCullough said reducing the levy would not maximise the government's co-contribution.

Australian Wool Growers Association chairman Robert McBride is disappointed AWI has ignored recommendations from the WoolPoll 2015 panel and a large percentage of woolgrowers in its levy options.

"AWGA, WoolProducers and other grower bodies were united in our push to put 1.5pc on the table which would have cut the waste, but we have not been given that choice," he said.

"One pc will spell the death knoll of AWI and 2pc means the excesses will continue.

"Why has AWI wasted $1.4 million to $2m of grower funds on a WoolPoll Panel representing woolgrowers, only for AWI to make their own decision?"

Mr McBride also questioned the validity of the Deloitte review which detailed a $2.90 benefit for every $1 of woolgrower funds spent in the past three years, and said if this figure was correct, all areas of the industry would be booming.

"We haven't seen any growth in the industry in years. In 1970 we had 180 million sheep and in 2015 we are down to 66m sheep of which only 25m are mated to Merinos. It is an absolute shame," he said.

AWGA's position has been for some time that AWI's No Finer Feeling marketing campaign has failed to target high-end fashion, and that Campaign for Wool was the only one to deliver real benefits.

"The strongest growth in wool prices has been in the 24 to 28 micron and the reason is AWI largely keeps away from that end of the market. AWI, through its marketing, has actually been helping those breeding crossbreds and broad wool sheep, not Merinos," Mr McBride said.

The passionate woolgrower who operates three pastoral properties in western NSW said wool was a "fantastic fibre" with a great future but warned the industry was in "freefall".

"The party is over, AWI. It is time for you to tailor your suit to the material you have, which is a lot smaller with just 25m sheep mated to Merinos, and get down to some hard work and be results driven," Mr McBride said.

Mr McCullough said the Deloitte review of performance of AWI's performance had shown every $1 invested by AWI had delivered a $2.90 return to woolgrowers. Among the highlights were Lifetime Ewe Management, which gave a $13 to $44 return on every dollar invested.