Woolgrowers face supply chain challenges for Australian-made

High costs and limited processing options are some of the reasons why Australian-made products are getting harder to produce for woolgrowers.

Australian-made products are “hard and getting harder” to achieve for Victorian woolgrowers, they say, amid high costs and processing unavailabilities.

Farm Valais stud principal Jane Lauber, from Yarrambat, signed on to manufacture 5000 synthetic mascot sheep in China, after she had a self-described “impossible” task producing them domestically with her own wool.

“This country made its wealth off the back of a sheep and now you can’t even sell its fleece,” she said.

Farm Valais stud principal Jane Lauber, from Yarrambat. Picture: Zoe Phillips

Australian Made chief executive Ben Lazzaro said small businesses faced cost and availability challenges, particularly in the wool sector.

“We’re known for growing some of the highest quality products, including wool, and with the processing of that fibre, there are fewer places you can do that in Australia,” he said.

“We would like that entire process to happen onshore, but we are finding more and more that it is not the case.”

He said more than half of businesses donning the Australian Made logo would be small.

“Making products in Australia from Australian wool that has been processed offshore, still generates economic activity, creates jobs and produces products made to some of the highest standards,” he said.

“There might be the want or need for processors here, but we may not have the machinery or expertise we need to run those processes.”

Echidna Kids owner and Meredith woolgrower Lachie Anderson said he explored options domestically and internationally for his children’s clothing label, but wanted it entirely Australian made.

His wool is scoured in Geelong, before it is shipped to New Zealand for processing due to Australian unavailability, and returned for manufacturing in Australia.

“It’s hard and getting harder,” he said.

“It cost a lot more to get it made in Australia, but I’m very patriotic and very passionate about Australia and wanted to make something in Australia.”

He said it meant a good point of difference for marketing, and importing and exporting would also be challenging.

“It is always an advantage to be able to jump on a plane in the same country or drive to your manufacturer and be able to go through any problems that may or may not arise in the production process,” he said.

A Department of Industry, Science and Resources spokesman said the federal government was “rebuilding” Australia’s manufacturing capability.

They said the $392 million Industry Growth Program helped emerging, small and medium businesses commercialise and manufacture domestically, as well as a $15 billion National Reconstruction Fund.

“In addition, the government invested $6 million to transform Tasmania’s Waverley Mills into a state-of-the-art manufacturing facility at the forefront of sustainable wool and other cloth production and recycling,” they said.

An Australian Wool Innovation spokesman said there were a “few” scouring facilities left in Australia, including Victorian Wool Processors, and manufacturing businesses varied.

“For top making it is generally through Cashmere Connections, which is often the bottleneck for small scale Australian businesses,” they said.

“Many of the garment makers and knitters will source yarn from China, Korea, Italy, et cetera. This is generally Australian wool sent offshore as greasy wool and returns as yarn.”

The spokesman said Australian challenges generally included production time, capacity, and processing and manufacturing costs.