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 Growers warn AWI: It’s time to lead 

Growers warn AWI: It’s time to lead

15 Mar, 2010 12:35 PM
Influential grower group and the custodians of Australia’s Merino genetics, the Australian Association of Stud Merino Breeders (AASMB), is demanding the board of Australian Wool Innovation ‘do its duty’ and get on with the job.

Reacting to the recent turmoil that has seen chief executive officer Brenda McGahan resign citing dissent within the board, AASMB president Tom Ashby has called on the directors to pull together and lead the industry.

“We’d encourage the chairman to come forward, disclose what’s going on and outline how it is being addressed. AWI must get on with what it is there to do – that is, look after grower interests,” Mr Ashby says.

He says wool-growers have given a clear mandate to the process of electing AWI board directors.

“But if directors can’t be relied upon to guide and deliver what was promised, then they are not fulfilling their obligations to the very people who put them there.

“They have a responsibility to growers, and if they are not prepared to oversee the execution of the clear mandate given by growers at the last AWI AGM and through the WoolPoll process, then they should be asking themselves if they are the right person to accept such responsibility.”

In October 2009, the majority of woolgrowers voted to retain the 2 per cent levy. More than 73pc of votes cast were in favour of retaining or increasing the levy. Votes were based on the information AWI delivered to every grower in the Voter Information Kit which detailed a clear research, development and marketing plan.

Mr Ashby warns that if the dissent continues, the fear is that government will launch an investigation into the organisation’s corporate governance.

“If that occurs, woolgrowers risk losing their voice, we risk returning to government appointed boards that have no knowledge of the wool industry.”

The Australian Association of Stud Merino Breeders Limited (AASMB) is the federal association that represents six state Merino organizations and, through them, the approximately 1100 registered studs in all parts of Australia except the Northern Territory.

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comments


Date: Newest first | Oldest first
The second last paragraph was the dilemma, wasn't it? What was worse, a board that knew F.A. about sheep, or a board that knew F.A. about corporate governance? Heads they win, tails we lose.
Posted by Will, 15/03/2010 1:32:12 PM
Well said ,Will.
Posted by Roger Crook, 16/03/2010 7:37:25 AM
Will, i would add: Or a board that knows sweet FA about marketing a quality product internationally?
Posted by Terence, 16/03/2010 10:45:10 AM
Shut it down now, the disease is starting to spread to the cattle industry.
Posted by Qlander, 16/03/2010 3:57:24 PM
AWI has delivered over the last 16 months. This board was starting from an impossible position, an existing plan of management which had ignored the slashing of its income as production and prices fell, and which would have seen it disappear down the gurgler in 2 years, reserves and all. AWI's main perceivable problem has been ill informed sniping from the outside based on various jealousies, especially on the mulesing issue. The price is now on the up, and the job must be to keep it on the up.
Posted by Ted O'Brien, 17/03/2010 7:13:29 AM
There was sniping 16 months and many moons before Ted. Plenty of it - an entire website www.awga.org.au existed solely for that purpose. If you link AWI to price rises than you are naive and uninformed. Nothing has been done in the past 16 months. Oh except a media release telling the rest of the world to push off re mulesing, which was totally unnecessary except to win more votes in the bush and sell more trisolfen.
Posted by olso, 17/03/2010 12:11:54 PM
Ted O’Brien. What a load of B/S you blog. The AWI assets were healthy up to June 2008 and what has AWI delivered in 16 months? Resignations of competent staff, letters of complaint after recent expensive board member visits to our customers to promote our wool, ministerial and senate please explain summonses and now AWI seem on track to make the Woolmark brands worthless. Come on Ted, even Martin has jumped, wake up old son after 16 months there is nobody to blame except the current board and the misguided in the 10 percent of grower shareholders that put them there.
Posted by piece maker, 17/03/2010 12:36:46 PM
Ted, dont worry about the anti mulesing mob of olso, piece and george....The AWi decision last year to dump the deadline was the right one, and we have much to thank this board for this
Posted by jim hawkins, 18/03/2010 4:46:13 PM
Piece maker, do you think that the dramatic fall in income to AWI, therefore by default net assets, has or had anything at all to with the equally dramatic fall in national sheep numbers of over 100 million head or roughly a decline of two thirds, which, in part encompasses the period you have asserted ??
Posted by PAYG, 18/03/2010 9:44:34 PM
When all is said and done, AWI did not dump the mulesing deadline. AWI is committed under the PETA agreement to work towards the mulesing deadline. What AWI did indicate was that those growers who found it impossible to meet that deadline would have a voice on the board of AWI. They would not be thrown to the wolves.
Posted by Ted O'Brien, 6/04/2010 10:21:37 PM

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Total Votes: 389
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