AUSTRALIAN Wool Innovation (AWI) will announce its intentions to support a digital Wool Exchange Portal (WEP) to buy and sell wool within the fortnight.
With exceptional wool price rises this financial year far exceeding AWI’s forecast Eastern Market Indicator of 1225c/kg clean average, AWI chairman Wal Merriman said the extra levy revenue could be allocated toward financing the WEP.
It is estimated about $5.5 million above the forecast wool levy revenue would be received this financial year.
During Senate Estimates hearing in February, Mr Merriman said AWI were pursuing the online WEP as a potential investment, and would “have another go” at shearing innovation.
“One of the things that came out of (the board strategy day) was that we have something called the 'wool portal' which is an electronic way of selling,” he said.
“We are adding competitive tension in the marketplace.”
During the estimates, AWI chief executive Stuart McCullough said the extra revenue would allocate more money to the industry group’s budget next year to create a larger on-farm research portfolio.
AWI are scheduled to return to Senate Estimates for questioning over levy expenditure on Wednesday.
WEP chairman Will Wilson said the AWI board were “pining” on the steering committees recommendations, which included a cost-benefit analysis of a digital platform, as well as a suggested launch and financing recommendation.
“They’re now deciding whether they want to commit the funds and go ahead with it,” Mr Wilson said.
Southern Aurora Wool partner Michael Avery, who has been a part of consultation, said the exact costings, as well as individual companies support was still being finalised.
“(AWI) are selecting tenders and getting exact costings from the board but it is certainly a go ahead,” Mr Avery said.
“It is a matter of where companies like ourselves would fit in… you put up a price so growers can be interactive.
“The whole objective is to select a path, but you don’t book it immediately through the WEP, rather than go to auctions you can go direct to buyers.
“Whether there is an ‘exchange’ down the track, there is a lot of work around that with credit, which is currently guaranteed by brokers so exporters will have to work through that.”
AWI corporate communications manager Marius Cuming said a response would be released early June following consultation with woolgrower groups.
“It has been a very long consultation process with a lot of discussion,” Mr Cuming said.
“It is not fair to jump ahead and announce it - we’re dancing to our own tune on this.”