News 
 State News 
 Wool 
 General 
 Woolmark issues behind McGahan's exit 

Woolmark issues behind McGahan's exit

12 Mar, 2010 01:00 AM
THE resignation of Australian Wool Innovation (AWI) chief executive officer Brenda McGahan had nothing to do with a clash of personalities within the board, according to AWI director David Webster.

Mr Webster said the core issue was the differences of opinion within the board on the future of the Woolmark Company.

"Some directors were seriously questioning its effectiveness and that had been ongoing," he said.

"As a director I would have been remiss if hadn't said that I wanted a hard look at this, because I don't want to come out in 12 months time and say sorry it didn't work.

"The instrumental gain we have with Woolmark export licensing and branding are just minuscule and unfortunately that's all gone to the bottom of the market.

"The top end of the market doesn't use Woolmark now, with the exception of Japan, so the company has to have a serious debate here.

"Some directors have one view, Brenda had another view.

"This is not about a personalities: I know its inevitable that personalities clash but there is a core issue in this."

Ms McGahan resigned from her position as AWI's CEO last week because differences of opinion made her position untenable.

Mr Webster said it was regrettable that Ms McGahan resigned, but urged woolgrowers to keep looking forward.

"I don't think it should take the spotlight away from the fact that here are a lot of opportunities happening at the moment," he said.

"People shouldn't get so focused on this one issue because it happens, it happens in countries around the world regularly.

"It's regrettable to me personally what happened with Brenda but I have a bigger responsibility to the shareholders to drive the organisation forward."

Mr Webster said the AWI board would now deal with the issues that had been bubbling under the surface for months.

"This will probably be a catalyst to make some serious decisions, and we and the growers all decided to go down the marketing path but I don't think we fleshed out the "what" and "how" well enough," he said.

"That doesn't mean we're stalling anything and we're not going to abandon the Woolmark Company.

"In reality this is something that should have been tackled head on, but the company was so focused on getting its house in order in the first three to four months.

"That engrossed the company and everyone's work for a very long period of time."

The Woolmark Company's future will provide some continuous discussion points for AWI going forward.

"Are we going to use a lot of effort having people running around the world to sell licenses?" Mr Webster said.

"Or are we going to have a look at the company and see how we can attach this to opportunity marketing like the Prince of Wales endorsement?

"Don't get bogged down over this, we've got a very big job to do, don't drop the ball.

"We've got momentum, the whole industry's got momentum and we have to maintain it."

Part of AWI's discussions and market research is evaluating China's potential as a final destination for Australian wool.

"There's a multitude of opinions here, there were three directors who went away and did a tour of the world and put in a very strong report, and they were supported by the board," Mr Webster said.

"They all came back very strong on the realisation of how big the opportunity in China was, and the amount of work we have to get in and go, but that doesn't mean you pull the rug out from underneath competition globally. "Supply will be extremely short looking at potential demand that is there now, particularly in Asia, it's about capitalising on that."

Print
Increase Text Size
Decrease Text Size

comments


Date: Newest first | Oldest first
So who do we believe? There are too many different and conflicting stories running around from this company. There was the story yesterday, from Italy, about concerns of directors having a conflict of interest. Now this from Webster. Who speaks on behalf of AWI or is it just open slather. Webster was also on the ABC in WA. Totally unconvincing.
Posted by Roger Crook, 12/03/2010 4:43:51 AM, on Farm Weekly
Firstly, Mr Webster does not speak for Brenda and it is very rude of him to presume that he does. Secondly, comments made by Brenda in the media contradict what Mr Webster is saying. Not only was their clear personality clashes but direct interference by some directors in the day to day running of the company. Enough spin.
Posted by Sir George, 12/03/2010 10:21:04 AM, on Farm Weekly
I am not privy to the details of this problem, but please, please, please, do not anybody think that because the Woolmark is not getting used today that means that it has no long term value. The task which the Merino wool industry must set itself now is to get the level of trading back to an initial goal of 500,000 tonnes of Australian Merino wool a year. This must start with production, and production must have a viable price. The current price could be viable for growers if there is an expectation of further improvement. To get further improvement there must be an expectation among traders that there will be a supply of wool on which they can make secure plans to engage in trading. Wool was just about wiped out by seriously flawed academic theories. Those same academic theories would still wipe wool out if allowed to prevail. They must be overturned. Long before trading gets back to 500,000 tonnes the Woolmark will come back into its own. After 500,000 tonnes, until an alternative product turns up that delivers the same physical characteristics at a lower price, we should be able to sell all the good quality Merino wool that we can possibly produce at a satisfactory price.
Posted by Ted O'Brien, 12/03/2010 7:36:18 PM, on Farm Weekly
The last great comment by Mr Webster was prior to the election Nov 2008 when he said that the then board did not know where to stand in the shearing shed. Now he is an expert on Woolmark, marketing and fashion. I don't think so. Growing wool is different to selling luxury garments and if growers don't understand that than we are own worst enemies.
Posted by olso, 23/03/2010 12:08:30 PM, on Farm Weekly

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.



 SEND...
 SAVE...
 SHARE...