Online trading platform WoolQ barely used
Australian Wool Innovation appears to be backing away from the trading arm of its WoolQ platform, with just 560 bales sold in six auctions on the industry-funded trading system.
AUSTRALIAN Wool Innovation appears to be backing away from the trading arm of its WoolQ platform despite a $4.3 million investment.
Just 560 bales have been sold in six auctions on the industry-funded trading system WoolQ.
Despite offering a contact-free means of selling wool during COVID-19 social distancing requirements, growers and brokers barely used the selling system.
While some brokers believe there are good aspects of WoolQ including electronic documentation (wool specifications) and data analysis, the trading platform is gaining little traction.
AWI general manager for eastern hemispheres John Roberts said WoolQ held its first transactional trial in April and five auctions since then. The clearance rate across the 966 bales offered has been 58 per cent.
While WoolQ had the capacity for contactless trade during the pandemic, Mr Roberts said COVID-19 had “not been a great time for anyone or any company”.
“We were happy to make the WoolQ market component available to industry when social distancing restrictions were threatening the continuation of open cry wool auctions,” Mr Roberts said.
He said AWI was “not intending to push the WoolQ market selling component of the platform”.
“(We are) keener to focus on the broader long-term capabilities including the enhanced grower tools and traceability aspects,” Mr Roberts said.
But in its annual report released last year, AWI said WoolQ had two distinct roles — tools to help with decision making, and electronic trading.
Mr Roberts said selling wool was just one part of the connectivity hub with “plenty of activity and interest in other areas of what WoolQ has to offer”.
“WoolQ is a valuable asset that has been built using woolgrowers’ funds that will deliver significant and unforeseen benefits to all stakeholders and help future-proof the Australian wool industry,” he said.
WoolProducers Australia chief executive Jo Hall said the uptake by growers of WoolQ had not been high and had not emerged as a genuine option for trading wool.
“The thing we have always wanted to know is who was asking for this to be developed in the first place,” Ms Hall said.
“Growers are not becoming involved and buyers are not either.
“WoolQ would need to get some runs on the board for the industry to consider it anything but a white elephant.”
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