WA will see ‘very little’ impact from the closure of Australia’s second last early stage wool processor

Fremantle-based wool processor Paul Foley says the amalgamation of the last two early stage wool processors will be the start of a new era for Australian wool and an opportunity for industry to embrace the last of the value-adding process. The historical merger of commission wool processing company EP Robinson and Michell Wool — announced late last month — has resulted in a “strengthened” processing hub in South Australia, albeit the nation’s last. The business will operate under a new name, Australian Wool Processors, and will be run out of MW’s Salisbury South location. At the height of the industry, Australia was once home to more than 40 early stage wool processing hubs. In recent years, numbers have dropped due to declining domestic processing volumes and low wool demand. The merger announcement comes only six months post the closure pf Victoria Wool Processors after 36 years in business, resulting in the loss of 26 jobs. Thirty jobs will be lost in Geelong, however, the mill’s processing volume will transfer across to AWP which Mr Foley said would have “little to no” impact on the WA wool industry. He also said it would have “very little” impact on his own business which consistently supplied wool to the family-owned and run wool scour and carboniser. “The owners fought a good fight for a long time to support us — a lot of WA wool gets processed at EP Robinson — so that will have an effect but, thankfully, the two families have got together and made a joint company in Adelaide that we’ll be able to continue with,” he said. “From Swan Wools’ point of view. . . we’re very confident in the new venture. We can see the benefits of it. “This could have very easily gone the way of live exports — that’s it, finished — whereas this gives us a chance to embrace it and grow it.” The Swan Wool Processor director said the closer of another mill was a result of economies of scale and the commercial reality of not making money, a similar tale to that of the Australian car manufacturing industry. “The closure of mills in Australia has been rapid since about 2001,” he said. “It’s saddening, but it’s not surprising. “Purely and simply this is the commercial reality of any mill running well below capacity for a long period of time. . . something’s got to give. “Processing is very expensive, and labour and skill intensive.” EP Robinson managing director Jim Robinson cited “not enough work” as the reason for the mills closure which has officially processed the last of WA’s wool as of August 4. Mr Foley said the Federal Government’s ban on live sheep exports also played a role in the business’ closure. “We’re losing little parts of our industry along the way because the industry is shrinking, the clip is shrinking. Manufacturers can’t handle that,” he said. Supply remains the main issue for the $2.7 billion industry, with the 1.42m bales sold during the 2024-25 financial year the smallest volume of wool sold in a season in more than 100 years. The total market value of wool put through the auction system also dropped 13.3 per cent, from $2.2 million to $1.94 million.