6 May 2015

Wool Selling Systems Review submissions call for more transparency

- Share -

By NICOLA BELL, The Weekly Times

MANY in the wool industry believe post-sale charges should be made more transparent.

Numerous submissions to the Wool Selling Systems Review, commissioned by Australian Wool Innovation, say post-sale charges need to be clear.

The submission prepared by exporters Australian Merino Exports and United Wool Company recommended a more detailed breakdown of the individual selling and buying costs to be made available to wool growers.

The submission advocated the introduction of standard invoicing and a review of the services provided under post-sale charges.

Australian Merino Exports director James Thomson voiced his concerns about the excessive rise in post-sale wool charges to The Weekly Times last year.

The submission shows the post-sale charge has grown 261 per cent since 1994, while the consumer price index rose only 67 per cent.

The submission said: “The post-sale charge, and what it represents, have kept wool exporters awake at night for many years as it represents over one-fifth of all grower selling costs from the time the wool leaves the grower’s shed to being delivered to an overseas buyer.

“Wool brokers would find it extremely difficult to justify this significant and unexplained rise.

“The wool grower is currently kept in the dark in relation to costs charged by the wool broker to the wool exporter and any changes to post-sale charges need to be made known to the wool grower.”

Independent wool consultant from Rosewood Wool Services’ Andrew Dennis said in his submission “all costs until the ship’s rail are paid by the grower, regardless of where they are levied”.

“The post-sale charge is a point of conjecture among the buying trade as it differs widely among brokers and across storage centres,” Mr Dennis said.

The submission said if all charges were transparent, growers would be able to more accurately evaluate selling options.

The selling systems review panel discussion paper will be released in June.

Growing change: Independent wool consultant from Rosewood Wool Services’ Andrew Dennis said wrote a submission for the Wool Selling Systems Review.
Competitive, Proven, Trusted
Greasy Wool Greasy Wool Greasy Wool