WASIA AGM: WA contractors adapt to a range of industry challenges

WA shearing contractors have been congratulated for making it through the labour shortage during the COVID-19 downturn, but with sheds now more fluent with staff, industry challenges continue to be complex. At the WA Shearing Industry Association annual general meeting held in Perth on January 20, a range of issues were openly discussed with the aim of giving assurances to contractors on how to keep their business opportunities profitable. WASIA president Darren Spencer said it was unfortunate the Albanese Government was keeping the industry waiting for its report on how it would wind down the live sheep export trade. He said both woolgrowers and contractors had serious concerns about how a ban would affect their businesses. With WA shipping 80 per cent of Australia’s live sheep exports, Mr Spencer said a ban on the trade would have a “huge impact” in the shearing sheds. He was part of an industry-wide delegation that travelled to Canberra last year that lobbied politicians to support the industry and vote against the proposal. “One can only hope that all the hard work industry has put in to oppose the phase-out would have the Government worried about the consequences of such a policy,” he said. Mr Spencer said despite the Government’s promise to ban the trade, the WA shearing industry continued to gather momentum, with WA WoolTag-designed training programs taking place to gain and retain new entrants for a viable work force. A new training initiative involved the inaugural WA wool harvesting ambassador program that named shearers Ethan Gellatly and Ethan Harder as the first inductees to represent WA WoolTag. WoolTag chairman Chris Patmore said while the future of the live export trade was in limbo, contractors needed to know what sort of numbers they would have to shear in the short, medium, and long term for assurances of “profitable business” profiles. He said most WA farmers ran mixed enterprises, adding “they can alter their mix” with less sheep and more cropping or vice versa. “There is going to a fair bit of pressure from financiers on producers to reduce their sheep numbers based on profitability,” Mr Patmore said. “There is talk that half to one million breeding ewes, out of 6 million, won’t be mated this year. “The Wool Production Forecast committee is forecasting a 6.5 per cent reduction in the WA wool clip for 2023-24.” WAFarmers president John Hassell said he was confident WA “could beat the live export ban”. He said the WA industry would organise a delegation to meet with Anthony Albanese and Federal Agriculture Minister Murray Watt when they attended a February Cabinet meeting in Perth. Merino Stud Breeders Association of WA president Michael Campbell said one of the largest threats to woolgrowers was the rising cost of shearing during the labour shortage. He said there had been “strong moves” to recognise the current value of the fibre against lower meat values. “We are starting to see producers go back into breeding Merinos, particularly with a post-COVID increase in shed staff numbers,” Mr Campbell said. AWN WA wool manager Greg Tilbrook said the wool market had concerns about the amount of wool on hold, with an estimated half-million bales waiting to go on sale. “We have recently had a lot of inquiries from the Eastern States to purchase mixed-age Merino ewes, and with the State’s lambing expected to be down a bit due to the poor season, sheep prices have started to lift,” he said. “With the cost of running sheep lifting as well, growers will be making decisions of whether they run sheep or put it in to crop.” Endeavour Wools buyer Steve Noa said it would be a disaster if WA lost 10-15 per cent of its wool production. “This would be a risk of the State’s weekly wool sales moving to the Eastern States selling centres,” he said. “On the positive side, China will drive the wool market — its middle-class population will double in the next 10 years with an extra 950m people that will have money to spend — that has to be good for wool.” Mr Noa said a quick fix to the wool industry’s low one per cent share of the apparel market required a woollen garment that brought year-on-year demand that would consume more of the natural fibre. “I believe a woollen polo shirt would be ideal — 400m cotton and/or synthetic polo shirts sell every year in the western world,” he said. “The wool industry has a lot of challenges and work to do.” Australian Wool Innovation director Neil Jackson said AWI would continue spending money on shearer training — “about $5m per year”. “I am passionate about getting another 10-15m sheep across Australia to add to the current 70m,” he said. “To be a significant player in the apparel market, we need to have more sheep to have critical mass, and we need to spend a lot of money in promoting wool products. “We must be prepared to back our own product marketing-wise — no one else is going to do it for us.” Mr Jackson said woolgrowers needed to work out at the next WoolPoll vote if the levy remained at 1.5 per cent or changed to a more appropriate 2 per cent. With new changes to the Australian Sex Discrimination Act, effective late last year — Balilwick Legal lawyer Matilda Lloyd advised contractors to become familiar with the compliance guidelines to avoid any expensive court proceedings. “Contractors now have a positive duty of creating a safe work environment in the shed and taking active measures to eliminate sexual discrimination,” she said. Cranbrook shearing contractor Wendy Chant said with the prospect of shorn sheep numbers dropping, now was a good time for contractors to take time to look after the wellbeing of staff. “Contractors should lift their game,” she said.