AWI to spend 17 per cent of grower funds on corporate services

A new strategic plan for levy spending has revealed how almost one in every five dollars of woolgrower levies will be used.

Almost one in every five dollars of woolgrower levies will be spent on admin rather than research or marketing, as the industry continues to shrink due to low prices.

Australian Wool Innovation released its next three-year strategic plan on Friday, where it outlined how it would spend its income including grower levies and matching federal funds.

And over the next three years, between 16 and 17 per cent has been allocated to “corporate services”, including $9.4 million in 2025-26.

In contrast, Meat and Livestock Australia allocates about 6.5 per cent, or $18.3m of its $281.3m income, on the same category.

The AWI strategic plan release comes at a time when the industry is under pressure with wool prices languishing and the national flock slumping to numbers not seen for decades.

Allocation of the remaining AWI money (after subtracting the spend on corporate services), ranges from $45.7 million to $50.3 million, and will see 70 per cent spent on “growing demand and fibre advocacy”, while 30 per cent will go to on-farm productivity research and development.

Operating plans for actual expenditure will be released annually with the 2025-26 program expected to be published in the next few days.

Australian Wool Innovation CEO John Roberts. Picture: Supplied.

Wool Producers Australia chief executive Jo Hall declined to comment directly on the 70:30 spend between marketing and on-farm spending. WPA was one of the groups involved in the consultation process of the new strategic plan.

In the lead up to its release, Ms Hall had been outspoken in how WPA thought levies should be spent.

“Recognising that we have limited influence over the price paid for wool due to its exposure to global factors, our primary focus must be on lowering the cost of production,” Ms Hall said.

“We need to laser-focus on potential solutions that directly address profitability.”

AWI chief executive John Roberts said the organisation operated in a “lean, efficient and transparent manner”.

“Just like any business with a reduced income, we have to make tough choices about which

projects and activities we can invest in,” Mr Roberts said.

He said on-farm levy spending would include include genetics, reproduction and nutrition,

animal health, and wool harvesting.

Marketing would see AWI “partner with leading manufacturers, brands and retailers across the world to explore new opportunities for Australian wool”.

A key indicator in the plan is to improve grower satisfaction with AWI though survey results.

Currently that satisfaction level is 4.9 out of 10 but AWI wants it to lift to 6.

Meanwhile, AWI will be seeking a new chairman with Jock Laurie retiring at the next election, having completed the maximum limit of 10 years on the board. Fellow director Emma Weston will not seek re-election while Michelle Humphries will stand for the board again.