WOOL IS YOUR CHOICE

Australian farmers investing in wool innovation since 1936

WOOL

WOOL

“All the AWI-funded programs in which we have been involved

have been a huge benefit to our business.”

PETER MCCRABB woolgrower

“The shearing culture is changing. People are increasingly

seeing it as a sport where you can be an athlete – training and working. AWI puts the time and effort into showing people there

is a lot more to the industry.”

DAVID RAMM shearer

INVESTING IN WOOLIS A CONSCIOUS CHOICE

Farmers choose to grow wool instead of other commoditiesWoolgrowers make the decision that is best for their business, they care for their animals, they take pride in what they do, they grow the world’s best wool, and they have been the backbone of Australia for centuries.

Shearers, woolhandlers and shed hands choose to work in the wool industry over competing industries They work in a respected profession that has supported Australia’s oldest agricultural industry for centuries, they are provided with employment in rural and remote areas, and they are able to compete in their profession as a sport.

WOOL

These figures are from 2016/17, which are the latest audited figures AWI had available at the time of printing.

Australian Wool Innovation (AWI) is the research, development (R&D) and marketing body for the Australian wool industry, working on behalf of those who pay a wool levy. We were established by the Australian Government in 2001 to manage woolgrowers’ collective investment in R&D for the benefit of the industry. In 2007, AWI acquired The Woolmark Company on behalf of growers and re-commenced marketing activities.

AWI invests in R&D and marketing activities across the global wool supply chain to:

• enhance the profitability, international competitiveness and sustainability of the Australian wool industry; and

• increase demand and market access for Australian wool.

OUR MISSION

OUR FUNDING

68%$60.2 MILLIONWool levy paid by woolgrowers – currently set at 2% of shorn greasy wool sales

17%$14.7 MILLIONMatching contribution from the Australian Government for R&D activities(capped at 0.5% of the gross value of national wool production)

11%$9.4 MILLIONIncome from Woolmark licensee business

4%$3.7 MILLIONInvestment interest and other income

“If Nanshan represents the demand side of wool and the woolgrowers represent the supplier of wool, then AWI serves as a bridge between

supply and demand.”

JEREMY SONG Nanshan chairman

“I feel so fortunate to have been introduced to the benefits of wool... it is a truly amazing

product for athletes!”

AMANDA ORDWAY marathon competitor

“The AWI team has been amazing in helping us

tell consumers how wool can improve performance and elevate comfort in sport.”

CRAIG VANDEROEF adidas

Consumers choose to buy wool productsThey know wool is synonymous with quality and luxury, they seek high performance fabrics, they want natural and sustainable products and they like the unique and personal story that only woolgrowers are able to tell about producing wool.

Manufacturers choose to process wool and not other fibres They are passionate about wool and devoted to the processing and development of wool products, they have developed the technical expertise to process wool over decades, they take pride in what they do, and they work with a fibre that is constantly challenging them to be innovative.

Designers and brands choose to use wool in their collections over other fibres

They know how versatile wool is, that they can use it in anything from haute couture to sportswear, they want a premium, luxury fabric for their designs, and they seek natural and sustainable products to meet their consumers’ demands.

Wool is a conscious choice. You choose to be a farmer. You choose to grow wool. Similarly, manufacturers choose to process wool and designers choose to use wool instead of other fibres in their collections. Consumers also have a conscious choice whether to buy wool products.

Your wool levy works right across this global supply chain, through AWI and its marketing arm, The Woolmark Company, to encourage people around the world to choose wool.

Communication & consultation• Improved channels to connect and inform woolgrowers

including: The Yarn podcast, Beyond the Bale online, @BeyondTheBale Instagram, and eNewsletters and market reports.

• Improved AWI’s Woolgrower Industry Consultative Committee (ICC) to ensure AWI continues to receive feedback on woolgrowers’ priorities and can report back on its R&D and marketing activities.

Sheep & wool management skills• Supported more than 9,000 growers Australia-wide through AWI’s 6 state-based grower

extension networks (Sheep Connect NSW, Bestwool/Bestlamb VIC, Sheep Connect SA, The Sheep’s Back WA, Sheep Connect TAS, Leading Sheep QLD) to spread new ideas, and continue education and the adoption of best practice.

• National Merino Challenge to encourage new entrants into the industry by helping more than 600 students across Australia to develop industry knowledge, networks and skills in feed budgeting, condition scoring, breeding objectives, wool harvesting, commercial assessment and classing of animals and fleeces.

• New suite of 1-day workshops – Winning With Weaners, RAMping Up Repro and Realising Performance Potential – to improve growers’ lamb and weaner survival rates, and ram and ewe reproductive performance.

• Next generation of leaders supported through Breeding Leadership,  the Nuffield Farming and Horizon Scholarship programs, Young Farming Champions Program and Australian Rural Leadership Program.

WOOLGROWER SERVICESIncrease woolgrower profitabilityProvide cost effective services to woolgrowers and other parties on their behalf

WoolQ• The wool industry’s new online wool exchange

platform was developed from consultation phase right through to build phase, for launch in 2018. You can register at www.woolq.com

HOW YOUR CHOICE TO INVESTIS DELIVERING

FOR YOUSnapshot from the 400+

R&D and marketing projects we’ve worked on globally over the past three years

Wool harvesting & quality preparation• More shearer and wool handler training days delivered

(3,899 since 2015) and more people trained (16,665 since 2015) at all skill levels – from novices to professionals – to improve productivity and achieve best practice standards.

• Supported 185 shearing and wool handling competitions since 2015 from local to national level – promoting excellence in wool harvesting, encouraging new entrants to the industry and continued development of new techniques.

• Shed design project currently under way to guide woolgrowers on best design to increase productivity in their wool sheds.

PROCESSING INNOVATION AND EDUCATION EXTENSIONIncrease the profitability and sustainability of wool processing

HOW YOUR CHOICE TO INVESTIS DELIVERING

FOR YOUSnapshot from the 400+

R&D and marketing projects we’ve worked on globally over the past three years

Student education• Launch of the new Woolmark

Performance Challenge – an annual competition for tertiary students to develop innovative new products for the sportswear market, by applying the science and performance benefits of Australian Merino wool.

• ‘Wool4School’ fashion design competition involved more than 75,000 students in Australia, now expanded to Hong Kong and the UK to encourage the next generation of designers to champion Australian wool.

• ‘Learn About Wool’ interactive website and resource kits provided to primary and secondary teachers to teach the next generation about the wool industry.

• ’Naturally Inspiring’ seminars delivered globally to more than 2,000 university and college fashion and textile design students explaining the inherent properties, benefits and great versatility of wool.

Processing innovation• Developed ‘Optim’ fabric with

enhanced water and wind resistance – now taken up by major sports/outdoor brands.

• Non-chlorination treatments for washable wool under way to improve sustainability and environmental outcomes of wool processing.

• Trials of ozone treatment to control wool shrinkage and e-flow dyeing of washable wool under way – improving sustainability and environmental outcomes of wool processing.

Trade extension • Exhibit annually at international trade

shows showcasing new wool product developments and The Wool Lab to more than 15,000 manufacturers and brands.

• Transferred knowledge of AWI-developed innovations to companies to increase capacity to manufacture wool including: Mottled Merino, Vintage Merino, Knitted Merino Denim, Woven Merino Denim, 3D Merino, Merino Retract, Sculpture Merino and Mercerised Merino.

• Launched the ‘Wool Resource Centre’ in Hong Kong, helping supply chain partners develop, produce and market Australian wool products. More than 1,800 people from 220 brands, designers and educational institutions visited in the first year.

• Retail training programs developed to educate retail staff of leading luxury European and Asian brands on all things wool to ensure that the attributes of wool and apparel care is better communicated to consumers.

• Developments of innovations under way for the fashion, sports and outdoor markets:

– yarns with better abrasion and durability for footwear

– lightweight fabrics for fashion and sports

– wind resistant fabrics

– compressionwear

– wool velvets and wool fur for luxury fashion.

• Research and trials under way into new product innovations:

– smart textiles with the capability of reacting to different stimuli eg temperature, pressure

– interactive textiles – wearable technologies which are sewn into clothing and operated by an integrated control

– 3D printing

– double-face print technology.

Sheep health & welfare• Identified new compounds for

potential novel insecticides to control the blowfly.

• Registration of Buccalgesic®, a pre-operative pain relief providing more options for growers in ensuring the welfare of their sheep.

• Development of a sprayer unit for decontaminating the outside of wool bales in the event of an emergency animal disease outbreak.

• Gene knockout technology (CRISPR) developed for the blowfly to enable in-depth analysis of the function of blowfly genes, hopefully resulting in the development of novel and more effective ways of preventing flystrike.

SHEEP PRODUCTIONIncrease the profitability and sustainability of woolgrowing

Feedbase & eco credentials• Biserrula and Serradella legumes

developed that fill feed gaps and improve soil health and overall pasture productivity.

• R&D into wool’s environmental footprint (including greenhouse gas emissions, water and energy usage, waterway pollution and more) from farm to fashion to improve the environmental rating of wool compared to other fibres.

Fibre advocacy• Research proved sleeping in wool can

provide better and less interrupted sleep.

• Demonstrated that Merino base-layer garments are therapeutic to eczema.

• Developed draft specifications for retailers and brands for next-to-skin wear to improve reliability and consumer confidence.

Farm automation & software development• Development and patent of

low-cost smart tag technology to monitor sheep and their environment to understand different behaviours and wellbeing.

• Collaborating on R&D into virtual herding technology to understand its potential application across different production systems and the responses of sheep to various cues and stimuli.

• Developed wool bale sensors to track and record humidity and temperature in wool bales to guarantee industry biosecurity.

• Cost effective microwave technology to improve internet connectivity on the farm and from the farm to the world.

Reproduction• Improving productivity for

more than 4,000 growers through Lifetime Ewe Management (LTEM) – with the average participant reporting a 10% increase in weaning rates and 30% reduction in ewe mortality.

Vertebrate pests• National network of wild dog coordinators

and 170 community wild dog control groups supported, with greater coverage and scale across Australia, to increase woolgrower profitability by reducing wild dog impacts.

• New strain of Rabbit Haemorrhagic Disease Virus released at 400 sites nationally, with an average 38% reduction in rabbit numbers at release sites.

• Exclusion fence construction machinery co-funded in Queensland that is able to fence 5km per day to help growers lower costs in their fight against wild dogs.

Genetics• Investment in the world’s

biggest 10-year sheep research trial – Merino Lifetime Productivity (MLP) – collecting more than 25,000 data sets from around Australia measuring all aspects of sheep’s lifetime performance to assist growers to improve sheep productivity.

CAMPAIGN FOR WOOLInvested in the Campaign for Wool to drive new international demand for wool by encouraging manufacturers, retailers and designers to use wool, and educating consumers about wool’s unique, natural, renewable and biodegradable benefits.

USA Boston Marathon – promoting wool’s sports performance benefits at one of the world’s most famous races, along with wool sportswear for winners.

Jason Wu – womenswear.

Woolrich John Rich & Bros – 100% Merino water-repellent and wind-proof Storm System fabric.

ASIABeautyberry (China) – luxury menswear.

Rogatis (Korea) – men’s suiting.

FACETASM (Japan) – innovative wool fabrics.

Nano Universe (Japan) – men’s luxury knitwear.

‘Her Era, Her Power’ (China) – collaboration with T Magazine to promote Merino wool’s natural benefits.

GQ (China) – editorial featuring Merino wool apparel worn for skateboarding, cycling, running and yoga.

INTERNATIONAL WOOLMARK PRIZEGenerated long-term incremental demand by increasing awareness of and lifetime loyalty to Australian wool amongst the competition’s designers and alumni across the world.

EUROPEZ Zegna (Italy) – TECHMERINOTM collection.

Il Gufo (Italy) – children’s and babywear.

Marks & Spencer – UK’s largest retailer of wool products.

Vogue Italia (Italy) – showcased Merino wool and activewear from performance brands including adidas, Woolrich, New Balance.

adidas (Germany) – building the brand’s wool product listing with performance T-shirts and woollen sneakers.

British GQ – UK’s leading sportsmen modelling the finest in Merino wool athletic attire.

BMW – wool blended fabric options developed for car interiors.

MINI – creation of a wool capsule collection, designed by up-and-coming fashion designers and co-developed by The Woolmark Company and MINI.

‘Inside Out’ (UK) – collaboration with bespoke tailors of Savile Row to highlight the importance of Merino wool in men’s suiting.

AUSTRALIAWool Week Australia – partnering with major Australian retailers and brands, like Westfield, to promote wool.

Country Road – focus on the “farm to fashion” story of Australian Merino wool.

JAGGAD – fabric development and use in high-performance singlets, short- and long-sleeved T-shirts, and dance shorts.

‘Fibre of Football’ – campaign featuring high profile AFL stars to highlight the sport’s connection with wool. More than 140 lines of wool supporter gear were sold – with many clubs having to re-order stock.

Flock to the Baggy Green – project to include woolgrowers’ wool in the baggy green cap.

Loro Piana Record Bale competition – celebrating Australian woolgrowers achieving an extremely high standard of fineness and quality.

Menswear, womenswear, sportswear & global campaigns

Tommy Hilfiger USA

MARKETINGIncrease demand for Australian wool

Venice Gondoliers

project ITALY

Grown in Australia, Made in India INDIA

Max Mara ITALY

Westfield AUSTRALIA

Flock to Baggy Green AUSTRALIA

50 years of wool trade CHINA

Comme Moi CHINA

adidas GERMANY

World Surf League USA

Burton Snowboards USA

AUNDE GERMANY

This publication should be used as a general guide. Australian Wool Innovation Limited (AWI) has used reasonable efforts to ensure that the information is correct and current at the time of publication. To the extent permitted by law, AWI excludes all liability for loss or damage arising from use of the information herein. © 2018 Australian Wool Innovation Limited. All rights reserved. GD2860

ENGAGE WITH AWI

If you want to provide input to guide AWI’s R&D and marketing activities – you can do so easily in a number of ways:

• Call, email or write to AWI directly and let us know

• Become an AWI shareholder to elect the Board

• Visit the AWI stand at all major wool industry events across the country throughout the year

• If you’re a member of a grower representative group, ask them to feed your priorities into AWI

1800 070 099 FEEDBACK@WOOL.COM GPO BOX 4177, SYDNEY, NSW 2001

@BeyondTheBale@thewoolmarkcompany

@woolinnovation @woolmark

Australian Wool Innovation The Woolmark Company feedback@wool.com

@TheWoolmarkCompany

wool.com/podcast

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FOR FURTHER INFORMATION ON AWI’S INVESTMENTS

www.wool.com

AWI Helpline: 1800 070 099

Beyond the Bale magazine Hardcopy: email your name and postal address to richard.smith@wool.com Digital: beyondthebale.wool.com

Visit www.wool.com/subscribe for your free subscription to AWI’s monthly e-newsletter and AWI’s weekly wool market review.