Media Releases

Testing Fee Increase a Futher Impost on Wool Growers — 16/6/2009

Peak body for Australian woolgrowers, WoolProducers Australia (WPA), has today expressed concern at the average 3.5% increase in wool testing fees, which was announced on Friday by the Australian Wool Testing Authority (AWTA).

“The Australian wool growing industry could barely be facing a more difficult period right now, so an increase in testing fees could not have come at a worse time,” said WPA Senior Vice President Brent Finlay.

“To say we are disappointed at this decision by AWTA is an understatement.”

“Everywhere growers look their cost of production is going up, while their returns stay static. It is little wonder that wool growers are questioning their long term future in the industry.”

“Unfortunately, such cost increases are indicative of the problems facing all businesses providing services to the wool pipeline - decreasing volumes supporting overheads and structures that were originally geared towards a clip twice as large as it is today.”

“Nonetheless, without growers there will be no industry for the companies that rely on our fees or levies to service.”

“If we do see a stabilisation or even a rise in wool production next year then growers would expect to see testing charges likewise held at current levels.”

“Similarly, when AWTA investment income does rise in the future as the global economy improves, wool growers would expect that this income is applied to holding testing charges down and not to any other part of AWTA's range of businesses.”