Think tank to divvy up roles in wool processing diversification bid

The second stage of a major study commissioned by WoolProducers Australia has set out a range of steps that could be undertaken to establish wet processing in metropolitan Victoria and to expand overseas early processing, but the report clearly highlights that the project as of yet has no project sponsor.

It specifies that WoolProducers would remain a key stakeholder, but not take ownership of the project, making the precise pathway to delivering domestic processing unclear.

WoolProducers CEO Jo Hall said meetings would be held in early March with a range of stakeholders including Wool Industries Australia, Australian Wool Innovation, AWEX and the Australian Council of Wool Exporters and Processors.

"The last thing we want this to be is another report that just sits on the shelf... we undertook these studies to try and deliver some good outcomes for industry and it would be such a shame if we don't capitalise on the findings," she said.

"The meeting will be a chance to do a collective assessment of the findings, see if we can assign some roles and responsibilities in terms of industry, private investment and government so we can keep the momentum going.

"We've had interest from both domestic and international companies... they're future conversations to have once we tease out an approach to this."

The report has also set out roadmaps to boost processing opportunities in India, Bangladesh and Vietnam as part of a broader market expansion strategy.

Ms Hall said the proposed changes were not a quick fix, but should be considered a "supply chain adjustment".

"It's about trying to set up future trade patterns," she said.

"Our current one has been so good for the last 30 years but we've got to evolve."

Ms Hall will be visiting India next week for Bharat Tex Expo 2024, providing an opportunity to talk to the government there about the India-specific roadmap to grow processing opportunities.

The international recommendations including conducting further market research around the Indian textile market, growing India's profile as a sourcing destination for wool products including yarns and garments, identifying commercial partnerships that could provide semi-processed wool to Bangladesh spinners and encouraging Vietnamese companies to continue to develop cases for the nation's first early-stage processing facility.