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Consider merging AWI with MLA: Keniry

24 Sep, 2009 01:07 PM
THE man who has overseen the past three WoolPolls has called on growers to vote for a zero per cent levy at the next WoolPoll in November and force a major overhaul of Australian Wool Innovation.

In an opinion piece written for Rural Press, Dr John Keniry said a zero per cent levy vote would “provide impetus for change”.

“The current two per cent has just been wasted by AWI so we need to force some change and look at fundamental restructuring and not just tinkering.”

Dr John Keniry, who chaired the 2000, 2003 and 2006 WoolPolls and is a former director of AWI, said it was an important time for the wool industry “which in my opinion is in real crisis”.

Dr Keniry said he had been consulting with fellow wool growers and agribusiness consultants on peak body reform,

And he said the message he is getting from these talks, which was echoed in the recent Arche Consulting review of AWI’s performance, was: there is support for radical structural reform and change to a skills-based election process.

He suggested comprehensive reform could include merging AWI into Meat and Livestock Australia to cut costs by having a single board.

“We have got to get change in AWI and I don’t think the present board can lead that change so before people vote at WoolPoll ask the question can the money they have to spend on marketing really increase the price of wool,” Dr Keniry said.

“I would think not.”

Dr Keniry acknowledged that his negative stance towards AWI could be perceived as a “bad case of sour grapes” having not been re-elected to the board last year. However, he said his opinion on restructuring the election process had always been voiced during his time on the board.

AWI chief executive Brenda McGahan said she recognised the “deficiencies” in its “inadequate” company governance framework outlined in the Arche consulting performance review.

The wool levy paid by Australian woolgrowers who have paid $100 or more in wool sale levy in the three years to June this year, has been at 2pc since 2000.

This week, WoolPoll panel member and Victorian Stud Merino president Jock MacRae urged producers to have their say in the coming WoolPoll, noting that a levy was a “not an insignificant” amount.

Mr MacRae said producers needed to be beware of the recent New Zealand wool levy vote where only 39pc of wool producers voted – and 54pc of those voted down a proposed levy amount.

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John Keniry backed the 2pc levy when his mates were in charge of AWI and was rewarded with a non-elected place on the AWI board. Unfortunately for John woolgrowers used their democratic rights and didn't vote for him as a director. Now he wants to destroy Australian Wool Research and Marketing altogether.

If Keniry is successful with a zero vote, woolgrowers will not support a new wool levy to fund a Meat Research company.

Posted by Martin Oppenheimer, 24/09/2009 1:16:22 PM
What is AWGA on about? Dr Keniry is suggesting a merger of AWI and MLA as a possibility. Not a new wool levy. In any case, I doubt MLA would be interested even with the sweetener of the miniscule assets still intact with AWI considering the baggage that’s included as well.

So no, not even a remote possibility even if MLA were courageous enough to suggest a MLA/AWI marriage to their shareholders, so relax Martin, it won’t happen.

A zero vote is all that is left to counter the belligerent attitude of the current board to implementing all the Arche recommendations and even those recommendations would be just tinkering with a structure that has consistently failed wool growers over its eight year existence.

Dr Keniry is on the money there: \vote zero wool levies.

Posted by piece maker, 24/09/2009 3:57:30 PM
Mr Keniry is suffering from sour grapes because wool producer levy payers saw through him. AWI has the respect of wool growers because it is now run by successful practical people who have been elected by the levy payers.
Posted by Full Profile., 24/09/2009 5:58:09 PM
Change of tune - by that much?? Chairman of WoolPoll 2006 John Keniry understands growers are hurting from the drought and low wool prices, but says cutting the levy would create new problems. So he recommends: "Zero per cent means that there is no levy income. If there is no levy income from growers, then there is also no contribution from the Federal Government and that means there is no ongoing income for AWI."

AWI would spend the reserves it has simply to finish off the contracts that are currently in place and then turn out the light, which, from my personal view as a wool grower, would be a sad event if we just walked away from research altogether.

I guess four years is a long time in politics!

Posted by Alistair Calder, 24/09/2009 6:43:11 PM
One has to wonder where John Keniry has been for the last 11 months. His call for new management is a bit late coming.

The Arche report was on AWI's performance over the last three years, not the last 11 months. He was appointed to the board during part of those three years, so he should know very well if AWI has been wasting that 2pc.

Growers voted last year for a change in the management because they were of that perception, too. It is very strange that John Keniry seems not to have noticed that AWI already does have new management.

However, the most telling aspect of this report is that John Keniry thinks that spending money on promotion will not increase the price of wool. And he claims to be skilled!

Wool, that not so long ago was Australia's biggest industry, has been nigh on wiped out because our government, on the advice of supposedly skilled people, destroyed the incentive for traders in wool to invest in promotion of wool.

This 0pc recommendation does no credit to the man. Nothing gets you more of nothing. Growers should be thinking 3pc, not less.

AWI now has a focussed, forward-thinking leadership which has faith in wool. Give them the means to get on with it!!

Posted by Ted O'Brien, 24/09/2009 10:27:17 PM
This wool grower has lost faith in AWI. Luckily, MLA are responsible for marketing sheepmeat, which is very noticably the bright spot for sheep producers, and if AWI could just do something similiar we might be looking at a brighter future, but they have to remember to sell it to us, too. Woolgrowers are losing pride in their product. Once pride in our wool is gone, our industry is dead.
Posted by bango05, 25/09/2009 7:49:45 AM
AWI & MLA merge? You have got to be out of your mind Dr Keniry. Why stuff up the most successful R & D company the red meat industry has ever had by forcing it to accept a merger with dysfunctional and poorly led organisation like AWI.

The wool industry is in disaray, don't visit this on the red meat industry.

Posted by Anti, 25/09/2009 9:12:22 AM
Dr John Keniry sure has stirred up the AWGA cheer squad with no change in their tactics by attacking the messenger rather than addressing the serious issues he raised.

This is the second time an AWGA board has been held to account by an insider and no amount of cheering will save the current AWI board.

The shredders at AWI HQ will be working overtime!!!

Posted by piece maker, 25/09/2009 9:51:00 AM
It is the fact that growers voted to cease marketing their product that got us in this mess in the first place! What kind of industry votes to stop the promotion of its product for a number of years? Yet, with a 0pc levy, no promotion, no research, no nothing.

The new AWI management is doing well and has cut its budget and changed its culture, to procuce a more realistic company.

It would be the death of the industry to cut the levy and give up on our product. Perhaps Dr Keniry is suffering from what I call 'wool industry amnesia', or, alternatively, wool industry senility (given the age of many "leaders" in the industry).

Someone needs to learn from the past and forge a way forward in the future, and I think Brenda McGahan is the best person for that job.

Without the levy, AWI will die, and we've seen how well the industry goes without any wool promotion (thanks to the growers' vote)!!!

Posted by reality, 25/09/2009 10:40:03 AM
One has to look at the company AWI. It seems to be in self-destruct mode. I hear Brenda does not have to reduce staff by sacking any more, but high-quality employees are leaving in droves because of board interference.

John Keniry makes a valid point: are we getting value for our hard-earned wool dollar? Do we beleive that we will sell more wool at a higher price given the confused direction of AWI, Brenda's plan or Laurence's grand plan, which includes resigning from the board of AWI if an Australian is put in charge of marketing? (gee thanks for the vote of confidence, Laurence, about Brenda who was employed because of her marketing expertise).

R&D is now a thing of past at AWI and will be in the future under this present regime. The sooner WoolPoll comes around, the better.

If you beleive you can spend your levy money better, take control and vote zero!!

Posted by Broomy, 25/09/2009 11:56:49 AM
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Dr John Keniry: “The current two per cent levy has just been wasted by AWI, so we need to force some change and look at fundamental restructuring and not just tinkering.”
Dr John Keniry: “The current two per cent levy has just been wasted by AWI, so we need to force some change and look at fundamental restructuring and not just tinkering.”
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MULTIMEDIA
23 September, 2009
24 September, 2009
POLL
Q: Can plant and animal breeders produce enough food to meet future global needs without the development of new genetically modified crops?

Yes
(53%)

No
(41.8%)

Undecided
(5.2%)

Total Votes: 668
Poll Date: 20 September, 2009

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