Press Releases ASWGA

Australian Superfine Wool Growers' Association Inc.

PRESS RELEASES

ASWGA PRESIDENT ATTENDS DFAT/CSIRO SEMINAR IN CHINA

26th May 2008

The President of the Australian Superfine Woolgrowers’ Association Kevin Dunn attended an important Seminar last week in China as part of the CSIRO project team aiming to improve the way in which Australian superfine wool is used in Chinese mills. This is part of a bilateral programme between DFAT and China providing assistance to boost performance.

Kevin Dunn from Horsham, Victoria made a presentation at the seminar in Nanging on the production trends for Australian superfine wool and opportunities for sourcing the right type of superfine wool for their particular product needs.

He then accompanied the CSIRO team in visiting mills which use Australian superfine wool in the Zhangjiagang area, North West of Shanghai, to further discuss the issues raised at the Nanging seminar.

CSIRO will continue working with ten mills over the next twelve months, providing assistance in improving performance in the mills through to lifting the quality and performance of the final apparel.

Kevin Dunn stated that this most important project with China the largest importer of greasy Australian superfine wool should be of significant benefit to Australia’s superfine wool growers.

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Superfine Growers Pay Tribute to the Contribution to Wool Marketing by

Executive Director Woolmark Brenda McGahan

18 September 2007

The Australian Superfine Wool Growers’ Association recognises the invaluable contribution that retiring Executive Director Woolmark Brenda McGahan made to the reinvigoration of wool marketing and promotion.

Following the important decision at the Hobart 2005 IWTO Conference whereby agreement was reached to investigate the most effective way forward to return to marketing and promoting wool under the auspices of AWI, IWTO and AWS (Woolmark) Brenda was given the task of putting together the team that worked so effectively to develop and execute the operation of the Test Marketing Project based on fine and superfine wool with the two American retailers SAKS 5^th Avenue and Dillards.

The results of the Test Marketing Project have demonstrated that targeted promotion can have a positive effect and increase both demand and the overall image of wool as a prestige natural fibre. ASWGA has been pleased to have the opportunity to work with Brenda particularly in the development of the retail in-store staff training education material that proved to be of great value and which will be of considerable use for years to come.

ASWGA conducted and funded from its own resources a similar project in Japan previously to the TMP with parallel results but was unable due to lack of funding to continue. Hence momentum was lost. It is important that the goodwill and enthusiasm that the TMP has engendered is not similarly squandered due to lack of funding or strategies to continue to promote and market Australian Merino wool.

Brenda was the best communicator that the wool industry has seen for many years tirelessly and with enthusiasm attending many grower meetings explaining very clearly the planning, operation and results of the TMP. Coupled with this her reports to the downstream industry at IWTO and similar international level engendered confidence in the future of wool as a high quality luxury fibre.

The President of ASWGA Kevin Dunn on behalf of all superfine growers places on record their appreciation of the invaluable work and contribution that Brenda McGahan has made to the Australian wool industry and wishes her every success in her future career.

ASWGA Elects New President

13 August 2007

The Australian Superfine Wool, Growers’ Association is pleased to announce the election of well known Victorian superfine wool grower Kevin Dunn as its new President.

Kevin Dunn and his family operate the Avondale Hills superfine wool growing property at Horsham in Victoria and have been noted superfine producers for several generations. Kevin is also a specialist superfine wool classer having classed in both Victoria and Tasmania

Frank O’Connor the retiring President welcomed Kevin to the challenging role of representing Australia’s leading specialist superfine growers and prestigious global superfine wool processors, designers and retailers. During his allotted three year term Mr. O’Connor stated that Australian superfine wool had become the world’s fastest growing luxury fibre. While production of superfine wool under 18.5 microns has reached an all time high demand is now more closely matching supply providing greater optimism for the future.

In accepting the Presidency Kevin Dunn stated that it was a great privilege to be elected as the President of the Australian Superfine Wool Growers’ Association.

“I look forward to building on the work and achievements of the previous eleven Presidents who have led the Association, all of whom have contributed enormously to the industry over almost Forty years.

Difficult seasons and rising costs, together with long period of depressed prices for superfine wool have meant that superfine wool growers face a very challenging time. Younger growers need every encouragement and I urge all superfine growers to become involved in supporting the work of ASWGA as the peak industry body promoting the welfare and interests of the superfine wool industry in order to secure a brighter and more profitable future”.

Presidents Overseas Report

11 May 2007

The ASWGA President, Frank O’Connor and President Elect Kevin Dunn have recently returned from Asia where they met with leading superfine wool users from topmakers to retail in Korea, Japan and China. Topics discussed were many and varied but included a drought update, the ASWGA Production Report, discounts for staple strength, dark & medullated fibre, marketing opportunities for superfine wool, ASWGA promotion material including trademarks, Environmental Management Systems (EMS) animal welfare, mulesing research and the advantages of purchasing ASWGA branded wool.

Price

The general consensus is that demand is expected to remain strong although there is some resistance to current high prices. The main concern is not so much the level of the price but a worry that it may not be sustainable and leave early stage processors with expensive stock. Continuing deflation of retail prices have resulted in an expectation among retailers that the price will not increase leaving manufacturers in a price squeeze. Over recent years most manufacturers have been moving finer and some will continue to do so but others are now saying that the extra cost of the wool coupled with the extra cost of manufacture is limiting their ability to move finer. The main problem appears to be about Super 150’s or 16.0 micron and finer. Hopefully this will not be too serious because volumes below this are small. Mike Kuritani of Itochu is confident that prices will remain strong and he sights the growing number of affluent retirees upgrading from a business work suit to a casual high quality jacket as a growing market in Japan.

Dark and Medullated Fibre

While the problem is less for superfine wool than the stronger types there is some evidence that it is increasing. Skin pieces and stain were the major complaint but medullated fibre is very important in superfine wool because it is particularly noticeable in dark woven fabric. Growers are encouraged to fill in the risk rating on their classers specification on suitable lines but ASWGA is concerned at the lack of understanding of the system throughout the supply chain. There is a likelihood that the DMFR rating will unjustly penalize some growers. DMFR is not a substitute for good husbandry and clip preparation. If this measurement becomes widely used by buyers and specified by top makers without regard for other factors it could result in unnecessary discounts on well prepared wool. ASWGA urges exporters and users to seek out and support those known quality clips , particularly those bearing the ASWGA logo as the best way to avoid contamination.

Environmental Management Systems

Interest in environmentally accredited wool is growing and we saw plenty of evidence that manufacturers were seeking to use this to differentiate their product. The word organic is seen as preferable because it is readily recognised by consumers. Unfortunately organic is not ideal for fibre as it is primarily a food label. We need to ensure that what ever it is called any environmental label on wool is soundly based in science and covers all aspects including animal welfare, environmental management systems, chemical usage and residues and fibre contamination. It must also be simple and within reach of most woolgrowers or volumes will be small and neither the environment or wool growers will benefit. Mills are quick to point out that to achieve organic certification of the final product it needs to be accredited throughout the whole supply chain. At present even if they could get organic wool there are still some missing links. We did however visit one weaving mill which was accredited and were seeking to complete the chain.. Although unsuccessful to date they will be seeking 50 tonnes of certified wool this year. Others were tackling scouring and dying problems and will also be needing certified wool to take full advantage.

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