2007/08 Annual Report

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2007/08 Annual Report 0 8 9 2 8 0 9 3 2 2 0 1 1 Australian Wool Innovation Limited gratefully acknowledges the funds provided by the Australian Government to support the research, development, innovation and marketing detailed in this publication. This document has been produced according to sound environmental practices. Information on our activities and products are available via publications, events and online. For more information: Visit www.woolinnovation.com Email [email protected] Call the AWI Helpline on 1800 070 099 (free call within Australia) Australian Wool Innovation Limited ABN 12 095 165 558 Registered office Level 30 580 George St Sydney NSW 2000 Postal address GPO Box 4177 Sydney NSW 2001 Tel +61 2 8295 3100 Tel +61 2 8295 4100 Share Registry Link Market Services 1800 113 373 (free call within Australia) Auditor PricewaterhouseCoopers 201 Sussex Street GPO Box 2650 Sydney NSW 1171 Designed by Yello Brands (Sydney) Pty Ltd. Printed in Australia by Paragon Printers Manufactured under an ISO 14001-2004. Registered Environmental Management System. This material is printed on CPI Paper’s Quatro Gloss manufactured by Sappi Paper at their EMAS mills. The pulp for this paper is sourced from well managed, environmentally sustainable plantation forests. EMAS is the European Union’s regulated environmental management scheme. Quality • Natural • Australian Merino CONTENTS Wool Production page 24 Apparel Product Development & Marketing page 36 The Year in Wool Good Business page 10 page 58 2008 FEATURES 8 Chairman’s report 24 Wool Production 36 Apparel Product About AWI AWI Chairman, Brian van Development & 4 About AWI Rooyen, provides his Assess the year’s results 6 AWI invests perspective on a momentous from AWI that aim to help Marketing Australian woolgrowers 12 AWI board year for AWI and the Australian Examine how AWI has been reduce the cost of production 18 AWI shareholders wool industry. providing its post farm gate on their farms through 20 AWI presence partners – wool processors, innovation in areas such as 22 AWI structure 10 CEO’s report manufacturers, designers and pastures and grazing, sheep retailers – a range of services AWI CEO, Craig Welsh, gives health, genetic technologies Financial statements his run down of the operational specifically developed to generate to breed more productive 68 Directors’ report aspects of the company during demand and enhance profits. sheep, and shearing. 72 Auditors’ independence 2007/08. 58 Good Business declaration 52 A Corporate Affair 73 Financial report 14 Highlights AWI has a professional AWI’s Corporate Affairs approach to doing business Review the highlights of a department aims to provide – read about AWI’s corporate Project List 2007-08 milestone year for AWI, all the effective company and industry governance policies, 106 Project List way from July 2007 through communication and reputation Government funding and to June 2008. management between AWI research priorities, collaboration and its key domestic and with other organisations, and international stakeholders. intellectual property. 2 ANNUAL AWI 07/08 A symbol of quality ABOUT AWI How AWI is funded AWI’s transition from an Australian R&D organisation AWI investments are primarily funded through an R&D levy paid by woolgrowers (currently into an international fibre two per cent of the sale price received for their research and marketing shorn greasy wool) and a matching contribution from the Australian Government, capped at company was advanced in 0.5 per cent of the value of gross national October 2007 when AWI value of wool production. integrated The Woolmark Woolgrowers vote every three years on the percentage of wool proceeds they would Company with its business. like to invest in wool research, development, Most notably, AWI became innovation and marketing. The next vote is the owner of the Woolmark – scheduled for 2009. the world’s best known How AWI has evolved textile fibre brand. The focus of AWI’s strategic direction has AWI is now launching a new program to evolved since its establishment in 2001. In its support the Woolmark and introduce a new early years, the company’s primary role was premium brand to help the company position as an Australian-based R&D company. Australian Merino wool as a luxurious but affordable fibre for apparel products. What AWI does In recent years, AWI’s strategy has emphasised Established in 2001, AWI is a the importance of getting the outcomes of the Following the integration of The Woolmark not-for-profit company owned by projects in which it invests rapidly and widely Company into AWI, AWI is now running an adopted or commercialised. A result of this expanded global marketing company. At the over 30,000 Australian woolgrowers. was the company’s development of a business- forefront of the global wool sector, AWI intends The Company invests in research, to-business strategy to increase the demand to lead the industry into an era of reinvention development, innovation and for Australian Merino wool. with its focus on innovation and marketing, marketing along the global supply from the production of the fibre through to This change in strategy was acknowledged chain for Australian wool – from the retail shelf. by Australian woolgrowers at WoolPoll 2006 in the fibre to fashion – from November 2006 where they voted by a strong AWI is an organisation that has changed woolgrowers through to retailers. majority for continuation of the two per cent dramatically in the past few years, and is We offer fresh, attainable wool levy, re-affirming their support for a robust now in a strong position to meet the challenge research, development, innovation and product of building a new place for Australian Merino opportunities for woolgrowing, marketing investment program. This result has in the global marketplace. processing, manufacturing and provided for a solid investment in the future of retailing, specifically designed the Australian wool industry. to help grow profits. Our primary aim is to increase AT THE HEART OF OUR BRAND the demand for Australian Merino wool by investing in innovation and marketing. We also aim to help AWI’s Vision Australian woolgrowers reduce the cost of production on their farms To continually provide every person and company in the through innovation in areas such as global Australian Merino supply chain, from woolgrower pastures and grazing, sheep health, to retailer, with fresh and attainable opportunities to make genetic technologies to breed more better profits. productive sheep, and shearing. AWI is proud to set new AWI’s Mission standards for the finest Merino To be recognised as one of the world’s leading fibre research wool apparel as the company and marketing companies. reintroduces Australian Merino wool to a new To grow demand, and price paid, for quality Australian Merino generation of consumers. fibre with appropriate business partners through knowledge, innovation and marketing support. The company both encourages and assists participants in the supply chain To make information and technology available to Australian towards the sustainable production woolgrowers to profitably grow wool that meets the of Australian Merino wool. market’s needs. 4 ANNUAL AWI 07/08 The inherently natural qualities of Australian Merino wool extend beyond the characteristics of the fibre to be reflected throughout every aspect of the final product AWI 07/08 ANNUAL 5 AWI INVESTS WHERE DO WE INVEST? AWI both encourages and assists participants in the supply chain towards the sustainable production of Australian Merino wool 6 ANNUAL AWI 07/08 AWI invests grower and Australian Government funds into research, innovation and the support of businesses and individuals throughout the Australian Merino supply pipeline. From the start Increased grower pride and profit through Knowledge adoption of innovation AWI’s global network offers expert advice of the supply chain… AWI uses its business networks and new on areas such as supply sourcing, market approaches to marketing to increase the uptake intelligence, consumer research, and seasonal of innovations, provide professional development trend and colour forecasting. Our industry-first for wool industry stakeholders, and build a market compliance and verification of Australian Merino Strategic themes and customer focused culture of excellence. scheme will enhance this offering to include quality control and product testing, as well as an – Increase productivity, lower costs integrity commitment that adopts contemporary and address key industry threats …to global standards of corporate social responsibility. – Encourage the supply of wool apparel markets Innovation that meets customer needs in AWI delivers premium value-adding innovations terms of quality, environmental by operating as an external research and and animal welfare standards development provider to our business-to-business partners. This includes – Increase uptake of new releasing seasonal Merino innovations which can innovations within the industry be tailored to suit specific partners’ ranges and customer needs. We also provide assistance with product and process improvement, testing, technology licensing, transfer and training. AWI’s Wool Production department works with woolgrowers to help them compete profitably Marketing support in the international apparel fibre markets through AWI is continuously working to position Merino the development and adoption of on-farm as a truly superior product within the marketing innovations. AWI aims to help woolgrowers arena. This
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