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Wool industry but a shadow of its former self: Modiano

28 Oct, 2008 12:17 PM
The Australian wool industry is but a shadow of its former self, according to AWI board candidate and leading wool processor, Laurence Modiano, and much of the blame lies with the organisation growers have paid to represent them.

The 43-year-old London-based wool baron, whose father established G. Modiano Limited in 1957, says growers are receiving little in return for the millions they are paying to Australian Wool Innovation (AWI).

"I can understand why many today would no longer vote to fund the levy," Mr Modiano said.

"And yet I also feel this money, if properly managed, is wool's best chance of survival."

As such, Mr Modiano has also outlined what could be described as an election platform, detailing how he would overhaul AWI, arguing it could "no longer afford to run itself as a Ministry of Wool".

"The board should eventually consist of a maximum of five, with the following responsibilities: woolgrowing, finance, marketing, international retail and R&D," he said.

"Each project should be decided according to its commercial success.

"Moreover, I suspect that the best talent does not end up working for AWI, but for independent companies specialised in a specific field, whether it is technology or marketing.

"My aim would be to re-shape AWI as a low overhead, high quality global business and commission the best outside contributors, to be remunerated on a pro-rata time and results basis."

Mr Modiano has told Rural Press that Australia should follow New Zealand and establish a "pipeline partnership".

"That may work for niche brands and products sourced from a limited supply but is much more complicated when supplying large international retailers," he said.

"The Australian clip, although smaller than it once was, is large enough to require marketing of the fibre as well as the product."

Mr Modiano also said the wool industry needs to change its marketing focus away from "preaching to the converted".

"We cannot impose wool on the consumer, but we can help him/her understand the rational and emotional arguments for buying and paying a premium for it," he said.

"If we are to have any chance of changing our fortunes we have to increase sales to existing customers and make fresh inroads with new ones, especially women and youth, using the arguments of beauty, sensuality, nature, sustainability, health, comfort.

"Wool has to arouse positive emotions.

"That is why animal welfare is so important. Taking PETA to court in such a public fashion was the surest way of publicising their cause."

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Date: Newest first | Oldest first
Mr Modiano's ignorance of board responsibilities is breathtaking. Directors can't just look after a little piece of the business("oooh, I'll choose retail!") - they must take responsibility for the company as a whole. Guess why you have managers? To do the things Mr Modiano is talking about.... This shows the danger of appointing people without proper knowledge of and experience in directing major businesses....Further much of Mr Modiano's comments about marketing seem to be taken directly from the AWI Strategic Plan - the need for sustainability, nature, comfort etc is clearly parroting what is already being done at AWI. Why doesn't he outline some new ideas?...The final point I wish to make is the thing that disapponts me most. In the last four weeks, woolgrowers have seen drastic declines in the auction prices for their wool. Now was the time for true leadership - for those buying our wonderful product to send a signal that they supported us...and wanted Australian woolgrowers to stay in business...can you guess which major buying company has abandoned the Australian market over the past 4 weeks? Yes, Modiano. Thanks for your wonderful support Laurence...
Posted by Sir George, 28/10/2008 1:24:03 PM
You have my vote Laurence. Some pseudo knight stooging for those who have stolen the family jewels over they years is hardly convincing. For guidance look at the online voting. If the trend continues Laurence is a Monty.
Posted by Mabel Peton Smyth , 28/10/2008 7:30:25 PM
Sir George's comments about the wool buyers not supporting growers is a contradiction to his repudiation of my comments last week. I quote "Jerangle, pot shots at players in the supply chain is easy and often fun, but your comments are just plain wrong about them not cutting costs. How about this? Rather than getting paid promptly when you sell your wool, you accept the same terms that exporters have to accept? Payment on 90-120 days? And how would you like to try to get credit in the current financial market?" This is partly the reason why we are in such big trouble with the inability of the industry to be cohesive.
Posted by jerangle, 29/10/2008 3:49:49 AM
Good point Sir George. The wool industry will never get anywhere if we still have these angry politics involved at the AWI board level. The election process for AWI is flawed and only creates further disunity.
Posted by Sir Winston, 29/10/2008 3:55:03 AM
Dear Laurence, Why don’t you stick to what you do best and pass some of the cream back to producers and we all just might stay in business? You and your trader mates could be doing something really helpful like entering into long term contracts at sustainable production values with Aussie producers rather than driving the greasy price down. We already have too many single issue directors on the AWI board that can't kick in the same direction trying to milk producers of the pittance paid for the exquisite product they produce without adding your name to the list.
Posted by James Kennedy, 29/10/2008 4:37:17 AM
Thank you Laurence Modiano for your wonderful support of the Australian wool industry over many years. I hope there are many more as one of our best European processors. Good luck in the AWI Board election and let's look forward to better times ahead.
Posted by Martin Oppenheimer, 29/10/2008 5:05:08 AM
Mr Modiano is a nice bloke but on industry issues he can be here, there and everywhere - all at once! AWI is already doing most of what he is recommending (where that is sensible). But in any case one would think he would have serious conflict of interest issues if elected to the Board.
Posted by observer, 29/10/2008 5:20:33 AM
Dear Sir George. Once again you display your own complete ignorance whilst pointing the finger. Doesn't have proper knowledge of and experience in directing major businesses? Modiano does $100m of business a year in Australia alone, Laurence is a very hands on director of his family company. Sir George, may I suggest you roll back into the nursing home and watch your telly.
Posted by Betterview, 29/10/2008 5:25:06 AM
Sir George, your personal attacks are becoming very tiring - please try and add some balance to your arguments. All the candidates standing for the AWI election offer great skills and expertise in certain fields. The question is simple if you want the same old results wool has seen for the past 6 years and are happy, then vote for the incumbant directors; if woolgrowers are not happy then vote for someone else. Pretty simple really.
Posted by Ian M, 29/10/2008 5:31:17 AM
Sir George - your final point is so typical of woolgrowers' attitudes. Processors cannot simply pay more for our wonderful product because they know we're doing it tough and want to support us! There's a little thing called a credit crisis going on in the world at the moment. Given the wool pipeline survives on credit you can understand when the credit dries up so does the price they can pay for our wonderful product. Add to this a tumbling Aus dollar and turmoil and low confidence everywhere.... Four weeks of big falls is what you get.
Posted by creditcrisis, 29/10/2008 6:06:45 AM
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AWI board candidate Laurence Modiano.
AWI board candidate Laurence Modiano.
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