3. Feb, 2016

Australian Wool Inovation . W.S.S.R. Final Report. A Critique .

   Fourteen months for this review by the panel, a lot of work, at what expense ?  Which has just started, and has a long way to go before it is operating.

   Disapointing the large number of "expressions of doubt", i.e. could, should, expects, may, believes, anticipate, envisage.

   Could, was used seven times in one paragraph on page 5 . No confidence there.

   The selling system is described as resistant to change, why?  You cannot reinvent the wheel! Because the auction system is a great system, which is admitted on page 6, when described as a " gold plated " or " Rolls Royce system ".

   On the same page. Some types of wool " could " be sold without appraisal or price penalty.  

   Absolute rubbish, never at a decent price. Then dragging in the disposal of the wool stockpile as a comparison, when no one knows what it was sold for is misleading.

   There is a good recommendation on post sale charges on page 36. 

    In about 90 % of reviews of this type wool classing / preparation is ignored, in the rest the classer cops a bashing, the latter in this review.

    On page 48 it is stated in a chart.- Wool preparation. -1 classer and 1 shed hand costs 23.32c  per  kg  -  Extent to which cost can be reduced through selling alternatives " High". - The only one in 9 activities in the selling chain that is " High". - Under the comments column,- unskirted or minimal skirt orders present significant in shed savings.

    Hello.  Chart on page 45 indicates unskirted wool at 765c greasy against 800c for properly skirted. That is far bigger loss overall than the 23.32c. Even though it is not comparing apples with apples.

    It would be more, unskirted wool does not appeal to most buyers so less competition. More competition is the means of getting top prices. If the W E P helps in that regard, terrific. But the complexities will be enormous, ie. If wool is sold through the W E P what commission does the broker get where the wool is stored ? Buyers will use it looking for " cheap " wool.

   Too much effort has been put into saving costs and not enough into getting higher prices which have far more room to move than costs.

   Wool is the only commodity that I know of that has gone backwards in preparation standards, almost solely in skirting practices.

     We don't know how much the  W E P will cost, probable $ millions . It will make money for the promoters , that is positive, if they use growers money. But will they use their own? if they don't it means it is guaranteed to fail.