Australian Wool Exchange quarter four report highlights the organisation’s key priorities

The Australian Wool Exchange has ended the financial year with the release of an optimistic outlook on the future of the wool industry.

AWEX released its quarter four report on Friday which provided woolgrowers, buyers and industry stakeholders with a consolidated, long-term view of market trends.

The organisation detailed its findings from two international trade missions to Vietnam and Bangladesh as part of WoolProducers Australia’s Agricultural Trade and Market Access Cooperation Program.

“Vietnam and Bangladesh have been identified as priority markets due to their rapidly growing textile and garment industries, established export capabilities and strong potential to increase the use of Australian wool,” the report said.

The report noted AWEX’s participation in the 95th International Wool Textile Organisation congress where artificial intelligence, textile innovation, sustainability and traceability and supply were key items on the agenda.

“The congress reinforced that the future competitiveness of wool will increasingly depend on more than fibre quality alone,” the report said.

“Reliable supply, trusted sustainability credentials, robust traceability and efficient digital systems are becoming increasingly interconnected as brands seek long-term supply partnerships rather than transactional purchasing.

“Australia already possesses many of these strengths, and through continued collaboration across the supply chain, the industry is well placed to respond.”

The report also highlighted the WoolClip Excellence Program, Australian Wool Sustainability Scheme and AWEX-ID training.

In the report’s welcome, chief executive Charlie McElhone spoke confidently about the future of the wool industry.

He noted the highlight of the past 12 months had been the strong recovery in market sentiment, with the Eastern Market Indicator lifting by about 65 per cent.

“This improvement has provided a welcome and much-needed boost in confidence across the supply chain, supporting producers, brokers and exporters alike,” he said.

Mr McElhone said certification had remained a key area of focus over the past year, specifically to build awareness and support for the AWSS.

“While adoption is still developing, the level of engagement gives me confidence that we are on the right path,” he said.

“Our objective remains clear — grow the volume of certified Australian wool through a program that is cost-effective, efficient and designed by and for our industry.”

The report stated more than 200 certified properties in Australia had participated in AWSS, collectively managing about 1.8 million sheep over 1.75 million hectares.

Mr McElhone said he was also encouraged by the strong response to the WoolClip Excellence Program which more than 200 woolselling agents have now completed advanced training and certification in.

“This initiative is playing an important role in improving how woolclip data is recorded, shared and managed, and is supporting the continued digital transformation of our industry,” he said.

The report also noted the national declaration rate was at 80.5 per cent, with WA still the lowest at 60.2 per cent.

The total number of bales sold in Australia was 1,402,564, totalling $2.61b and 251.6Mkg.