AUSTRALIA's five national wool selling centres will remain operational after brokers and exporters knocked plans for centralisation on the head.
A meeting in Sydney this week between representatives of the Australian Council of Wool Exporters and Processors, National Council of wool selling brokers of Australia, Inland Woolbrokers Association and Private Treaty Wool Merchants of Australia agreed to stick with the current set-up.
It follows a 12-month review of auction arrangements, including an Australian Farm Institute study that found a shift to a one, two or three centre model could save from $5-$7 million annually.
Australian Wool Industries Secretariat executive officer Peter Morgan said the decision was final.
"Collective action towards centralisation is off the agenda," he said.
Mr Morgan said although wool volumes had contracted - and were expected to fall to 338 million kilograms next year - the current selling option remained "sustainable and viable".
He said members at the meeting agreed there was "scope" at a regional level (North, South and West) to initiate change, however any change would be driven by commercial decisions and individual companies.
Mr Morgan would not comment on the future of the Launceston and Newcastle selling centres, however Rural Press understands the topics were discussed and an outcome is pending.
Mr Morgan defended the economics of the decision, noting on a cents per kilogram basis the savings from centralisation worked out at only 1-2c/kg.
"The costs-benefits analysis was one facet of the process - there were a number of issues to consider," Mr Morgan said.
Mr Morgan said it was agreed at the meeting further "attention" would be given to encouraging increased lot size and interlots, reducing sale administration costs and saleyard duplication, and improving efficiency of saleyard rosters and show floor utilisation.
National Council of Wool Selling Brokers of Australia president Robert Ryan said he was happy with the outcome of this week’s meeting, noting "ultimately change is the commercial decision of selling centres".
"Growers will or will not attend and brokers will or will not provide facilities at the current locations," Mr Ryan said.
"Yes you could say the result is predictable, but we had the report, did the numbers and had good robust discussion."
Mr Ryan said there had been a shift in sentiment among the buyers seeking change in the past 12 months and advocates for centralisation were now "of the minority".
But chairman of the Inland Woolbrokers Association, Gordon Litchfield, said a shake up to the current selling system was imminent.
"There will be a lot of movement and action on a regional basis – it has already started in the west," he said.
Keep Sheep WA and Swan Wool Processors principal Tony Price said the decision was favourable, and confirmed amove to centralisation would only cost WA growers.
Email a friend