Australian Wool Innovation’s (AWI) annual general meeting is underway in Sydney.
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AWI chair Colette Garnsey told the delegates that AWI know they must do more to earn and retain the trust of woolgrowrs
“We are determined to maintain the momentum in our international marketing efforts and in our investments in research and development,” Ms Garnsey said.
“We must give you the confidence that your levies are being invested effectively and efficiently.
“AWI must continue to run lean, with every dollar spent wisely and every dollar accounted for.”
AWI chief executive officer Stuart McCullough pointed to the record highs hit by wool prices in the recent months, with the EMI sitting at 1895 cents per kilogram, a lift of 23 per cent from the previous 12 months.
He recognised that the conditions many farmers are facing and said the company were committed to investing their levies effectively and efficiently to deliver results for all woolgrowers.
Their budget for 2018-2019 was set at 340 million kilograms shorn production and 1650 cents per kilogram.
But with volumes coming down quite dramatically, it has been altered to 305 million kilograms shorn production and 1750c/kg.
“That does mean a drop in revenue, but we have the ability to draw down on our reserves,” Mr McCullough said.
He said in this fiscal year the board agrees to alter the budget and reduce the draw down for this year from $15.4 million to $5.4 million.
Mr McCullough said the reserves that have been built over time are healthy and obvious, but with draw down modeled over the the upcoming three years, they will be looking at reserve figures dropping to $90 million.
Dr Meredeth Sheil was named as the newly appointed deputy chairman of AWI.
More to come
