Program 1.6: Wool industry

​Program objectives

The objectives of this program are to:

  • assist primary producers to develop a more competitive, internationally focused and self-reliant wool industry
  • maintain appropriate industry regulatory functions and statutory funding for research and development.

Review of performance

This review addresses the deliverables identified in the 2011–12 Portf​olio Budget Statements. Table 7 summarises the extent to which we have met key performance indicators.

Responding to industry developments and issues

We met industry groups regularly to discuss a range of issues of concern, including flystrike management, market access and the 2012 WoolPoll to help determine the wool levy from 2013–14 to 2015–16.

We engaged industry through the Federation of Australian Wool Organisations (FAWO), facilitating a memorandum of understanding to enhance consultation and cooperation on wool and woollen products between Australia and India. We also worked with FAWO to monitor potential market access issues, including observing the proceedings of the Australia–China Joint Working Group on Wool. China is the major export destination for Australian wool, accounting for approximately 70–75 per cent of Australia's wool exports.

Regulating woolpack imports

Woolpacks are prohibited from being imported unless permission has been granted by the minister or an authorised person, or the packs have been certified as conforming to the Australian Wool Exchange standard. These regulations reduce the risk of wool contamination from woolpacks.

Importers must demonstrate that woolpacks entering the country will be of a high standard and meet strict industry manufacturing requirements. In 2011–12, the department approved 17 woolpack import requests.

A man on an agricultural motor bike talking with a man in a ute, with a mob of sheep and another bike in the distance.
'Consulting the locals'—the winning image in the Our People category of the 2012 DAFF Photo Competition
Taken by Noel Green.

Supporting research, development and marketing

We assisted the wool industry to develop a national research, development and extension (RD&E) strategy for wool as part of the National Primary Industries RD&E Framework. The then Primary Industries Ministerial Council endorsed the wool RD&E strategy in October 2011. The strategy will encourage greater collaboration and promote continuous improvement in the investment of RD&E resources through three programs:

  • wool production
  • wool supply chain management and demand growth
  • wool industry resilience and growth.

The National Wool RD&E Strategy is complementary to the National Sheepmeat RD&E Strategy.

Australian Wool Innovation Limited

Legislation allows declared industry-owned research and development corporations to receive industry levies and matching government contributions via statutory funding agreements with the Commonwealth.

We administer the agreement for Australian Wool Innovation Limited (AWI). AWI is an industry services body that works to improve the profitability, international competitiveness and sustainability of the wool industry by investing in research and development, marketing and promotion. AWI's income is primarily from levies paid by wool growers and matching Australian Government R&D funding. AWI met its statutory obligations during 2011–12.

Key performance indicators

Table 7 Program 1.6: Wool industry—key performance indicators
Key performance indicator 2011–12 target Achievement
2011–12 2010–11 2009–10

Meet regularly with wool industry representative bodies to discuss policy issues

2 meetings

Met

Met

Met

Performance: DAFF has regularly met this target and maintains a productive relationship with wool industry representative bodies, including the Federation of Australian Wool Organisations and Wool Producers Australia.

Requests under woolpack regulations are actioned

100%

Met

Met

Met

Performance: All requests to DAFF for imports of wool packs under Regulation 4K(1) of the Customs (Prohibited Imports) Regulations 1956 were actioned in accordance with the regulations.

Action requests for woolpack imports within 2 working days

95%

Met

Met

Met

Performance: DAFF has regularly met this target. In 2011–12, it exceeded the target with all 17 requests processed within the two-day period.

Australian Wool Innovation Limited (AWI) compliance with statutory funding agreement and relevant legislation

100%

Met

Met

Met

Performance: DAFF is satisfied that AWI met its obligations under the agreement and relevant legislation.

Meet with Australian Wool Innovation Limited to discuss obligations under the statutory funding agreement and relevant legislation

100%

Met

Met

Met

Performance: The department held quarterly meetings with AWI to discuss matters relating to the agreement and relevant legislation.

Levy payments made to Australian Wool Innovation Limited in accordance with statutory funding agreement

100%

Met

Met

Met

Performance: DAFF has regularly met this target. In 2011–12, all payments were made on time and in accordance with the agreement.

Minister/parliamentary secretary and executive satisfied with the quality and timeliness of policy advice and support

High level of satisfaction achieved

Met

Performance: DAFF has provided extensive policy advice and support to the minister and parliamentary secretary. This advice has been received with a high level of satisfaction. This is a new indicator.

Outlook for 2012–13

We will continue to work closely with the wool industry to advance research and development for the benefit of the industry and maintain and promote market access for wool and wool products. The department will assist in the conduct of the 2012 WoolPoll, which is scheduled to commence in September 2012. We will also seek to engage the industry on issues as they arise, including any activities necessary to finalise and implement the memorandum of understanding with the Indian Government to enhance consultation and cooperation on wool and woollen products between Australia and India.

Last reviewed: 4 November 2019
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