Domestic wool processing dream gets closer to reality

Deloitte Access Economics has been engaged to deliver the second stage report into the feasibility of establishing more on-shore processing facilities, supported by a $800,000 grant from the federal government

It comes after the first phase of research, completed in November 2022, deemed that adding additional early-stage processing within Australia was possible and would mitigate trade risks.

Deloitte will start work in July to figure out the next steps forward to making the dream commercial reality.

Wool Producers Australia general manager Adam Dawes said this stage of research would be about figuring out how to make the desired trade diversification happen, either in Australia or in other countries that Australia might partner with.

"It's quite a comprehensive piece," he said.

"This is really looking at how we get the rubber how to hit the road.

"We're going to undertake a process to benchmark the different wool-producing states in Australia in terms of their competitiveness to undertake early stage wool processing, perhaps just scouring or it could be integrated with carding and combing operations.

"There's potential for us to export three wool products to diversified trading partners- greasy wool so they can scour it, scoured wool so they can card and comb it or it could be carded and combed wool so they can spin it and weave it.

"As part of that it's prioritising domestic locations to drill down to regions that will make more competitive locations."

Mr Dawes said it was likely the report would earmark locations for brand new facilities, although expansions of existing wool mills weren't being discounted.

"Here we are trying to look at industry-level, trade risk mitigation so we're probably not talking about through this study a wool processing facility that's small scale," he said.

"We're talking about facilities that have the ability to put through upwards of 12 or 15 kilograms of greasy wool per year."

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A steering committee has been set up that includes representatives from Australian Wool Innovation, the National Council of Wool Selling Brokers of Australia, the Australian Council of Wool Exporters & Processors, the Australian Wool Testing Authority and the Australian Wool Exchange.

The detailed project planning phase is expected to conclude this month, with Deloitte expected to start domestic and off shore assessments from the start of July.

The report is due to be delivered by the end of the year.

It comes as a number of entities across the country work on their own wool mill expansions or proposals, including the QWool project at Blackall, Queensland and Tasmania's Waverley Mills, undergoing a major upgrade.

Mr Dawes said the difference between specific projects and what Wool Producers is seeking is that individual projects were focused on improving their regional economy and create jobs, while Wool Producers is specifically focused on trade risk mitigation at a national level.

"It's exciting because we don't know where it will end up, but wherever it ends up will be through the lens of optimising the benefits to the national wool industry and wool growers," he said.