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AWI still flawed

04 Dec, 2008 10:49 AM
Despite the new changes at the top of the wool industry, many remain convinced Australian Wool Innovation (AWI) must still change the way it operates to deliver real gains for growers.

The cycle of AWI board politics at the top of the wool industry has not changed for decades and is deeply ingrained in the personal divisions within the industry.

One faction gains control for a number of years before being kicked out by the same angry and disgruntled growers some years later, under the familiar cloud of accusations of non delivery and poor governance.

One of these critics of this wool déjà vu is e-wool™ and NewMerino™ boss Peter Vandeleur continues to watch wool politics with frustration.

While having no gripe with any current or former directors, he points out the fundamental problem with AWI structure and strategy.

His point is that as AWI is not part of the value chain, this makes it impossible for the wool research and marketing body to make commercial proposals.

Plus, it is also not a commercial entity and as it doesn’t need to generate income, it does not have the commercial motivation for success.

“Because it is not in the value chain its role should be to facilitate those who are," he says.

"There is a great opportunity for AWI to carry out the top level marketing activities, research and development and trade issues and to act as the facilitator to other members of the value chain who can actually implement and oversee the transactions.”

He points out that the wool industry is not vertically integrated and therefore growers are disconnected from their customers and in this situation there is no opportunity to provide greater value and receive higher prices.

“The AWI business to business or B2B strategy is fine," he says.

"But it must be carried out by actually connecting the appropriate people in the value chain who can deliver the real value.

"This is not happening.

"AWI needs to take a more holistic approach with less spin and more action."

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Date: Newest first | Oldest first
Not exactly sure why Mr V is pointing out the bleeding obvious but maybe it does need saying again.

It would again be useful for those making comment on AWI's strategy to actually read what it is doing with wool marketing and Woolmark. They might be pleasantly surprised.

The biggest threat to AWI at the moment is the AWGA 'hit squad'. Let's just hope they leave the marketing strategy alone.

Posted by Sir George, 4/12/2008 7:48:34 PM
Spot on Mr V. The biggest threat to AWI and its new board is that they only have until early October 2009 to actually deliver on their plan to increase demand by 20% (How you measure that is another question). Otherwise the move will be on to vote them out of existence with a zero levy at the next Wool poll. Growers have had enough!
Posted by Mack, 5/12/2008 1:37:45 PM

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