Wool’s Reputational Risk: Why Mulesing Demands a Strategic Response

I recently attended the Victorian Farmers Federation (VFF) Livestock Conference where I participated in a panel titled "Animal Welfare, Social Licence & Public Perception.”

On the panel I spoke about the issue of mulesing and the need to take an industry-wide strategic approach to this issue. For far too long, the conversation around mulesing in the Australian wool industry has been stuck and it's about time we got serious in addressing this issue.

It doesn't matter what your personal opinion on mulesing is or whether you undertake the practice or not – nobody can honestly say we've addressed this issue properly. As an industry we've invested significant resources since 2004, exploring alternatives, yet here we are, still facing the same fundamental problem. This is because we do not have a clear strategy for the industry to address this issue.

There's a persistent belief among some that mulesing isn't a real issue, that it's just "noise" not reflected in market premiums for non-mulesed wool. While I understand that inconsistent premiums for non-mulesed wool is not sending clear market signals to growers, wool currently accounts for less than one percent of the global apparel market while the market price is suffering through lack of demand. As much as I hate saying it, the world doesn't need wool - however, the world doesn't need Coca-Cola either, but it seems to be doing pretty well in terms of consumer demand.

A couple of recent examples of the negative global perception of mulesing include yet another anti-mulesing global campaign launched last October, where Hollywood actors lent their voices, or the more recent series North Shore that reached number one in both Australia and the UK on Netflix, grossly misrepresenting the practice, Australian wool growers and our industry. These examples prove the fact that the mulesing issue isn't going away and that we undeniably have a reputational problem that we cannot continue to ignore.

I have raised this in a previous newsletter, but perhaps the most worrying recent wake-up call came at the International Wool Textile Organisation Congress in France this May. Ms Jiang Yali, director of the Nanjing Wool Market in providing a China country update, our largest customer who takes around 85% of our product; publicly stated that South Africa is now their preferred supplier because they can access Responsible Wool Standard (RWS) certified (non mulesed) wool. That should make us all sit up and listen.

Statements are also made that Australia sells every kilo of wool that we produce. While this is an indisputable fact, can we say that Australian wool is currently availing itself to maximum competition within our supply chain? With our largest customer publicly saying we are not their preferred supplier and an increasing number of brands not accepting mulesed wool, it is also an indisputable fact that we are not.

Further, there is internal debate in industry as to if mulesing and the way we handle it is a policy issue or a marketing issue. The reality is it is both, as they are not mutually exclusive. Consumer and brand perception of the practice squarely sits under the domain of marketing and marketing intel should be used to support and determine domestic policy settings – this is currently not happening in any structured manner. No organisation within industry can wipe their hands of this issue and absolve itself of the responsibility to act, and for any wool-based organisation to state otherwise is a complete cop out.

We pride ourselves on producing the best quality wool in the world, and without a doubt we do. But if the product our customers are seeking includes aspects over and above quality, and we're not delivering on these, then we have a problem.

It's time we, as an industry, come together and have mature, strategic conversations. The reality is, throughout the supply chain, mulesing is increasingly problematic. At an industry level we have known this for a while, yet we haven't come together for a desperately needed, honest conversation. These conversations are needed to deliver an industry-wide strategy to address the mulesing issue.

As part of that strategy, we need to start listening to our customers and ensure that feedback is reaching growers, so that they can make an informed decision on all aspects of production. To be clear, this is not telling growers what to do on their own farms, rather it is empowering them to make educated decisions on how they want to produce their product to meet all segments of the market that delivers the best return for their enterprise.

Recently, there has been had public comment from the National Council of Wool Selling Brokers of Australia (NCWSBA), the Australian Council of Wool Exporters and Processors (ACWEP) and Wool Industries Australia (WIA) joining the calls from WoolProducers to act collectively as an industry to address the mulesing issue. I look forward to working with these, and other organisations, who are all invested in and care about the Australian wool industry to show leadership and help shape a way forward on this issue in the interest and longevity of our industry.

We have an amazing product with an amazing story to tell about Australian wool we just need to communicate it more effectively while also addressing the concerns of our customers. As an industry we need to start talking and start acting.

Jo Hall

Chief Executive Officer

WoolProducers Australia