Fed: Wool growers urged to back 2 p/c levy

00-00-0000
Fed: Wool growers urged to back 2 p/c levy

By Shane Wright

CANBERRA, Aug 8 AAP - Australian woolgrowers are being urged to continue to pay a twoper cent levy to fund research and development.

Australian Wool Innovation (AWI), which is supported by the levy, will encourage growersto back the two per cent rate over four other options.

Every two years, the nation's 30,000 wool growers vote on the levy.

Growers are being offered a zero levy, one per cent, 1.5 per cent, two per cent andthree per cent.

AWI chairman Ian McLachlan said the two per cent levy was the minimum needed for woolresearch to keep pace with other fibres, technological change and consumer demand.

"We must continually improve the fibre to enhance its appeal to consumers, advancethe efficiency of production on-farm and in the mills, and we must head off threats causedby trade barriers and inefficiencies in the supply chain," he said in a statement.

"A two per cent levy will enable us to ensure these benefits continue to flow. Putsimply, two per cent delivers."

Mr McLachlan said although AWI wanted the two per cent rate, it would deliver the companyless income because the amount of wool traded is down.

He said existing research, being funded by the current two per cent levy, was startingto deliver results.

"Our projects are starting to deliver tangible results in terms of profitability andproductivity gains for Australian woolgrowers," he said.

"Just as significantly, future results look very promising, and we are investing inmajor gaps in frontier science that have the potential to deliver enormous productionbenefits down the track.

"On farm (these benefits will be) in areas such as genetics, biotechnology, pasturesand pests, and off farm in fields like processing technologies, new product developmentand easy care apparel options."

But the chairman of the NSW Farmer Association's wool committee, Don Hamblin, saidgrowers needed more information before they could make a decision on the levy.

He said it would not be until the end of September before an analysis of the differentlevy rates would be released.

"Research and development are vital for the future of the industry, so it's importantto get it right," he said in a statement.

Voting on the levy closes on November 7.

AAP sw/sb/was/bwl

KEYWORD: WOOL