Elders to boost wool broking & processing businesses

30 Jun '08

2 min read

Wool growers throughout Australia will benefit from a decision by Elders to further invest in its wool broking and processing operations.

The company has announced it will be scaling back its greasy wool trading business to enable greater investment and resources to be directed to core client services.

Elders Wool General Manager Mark Rodda said Elders' decision to reduce its involvement in greasy wool trading allowed the company to concentrate on the services that mattered most to its wool growing clients.

“As Australia's largest wool broker, Elders has a responsibility to provide the nation's wool producers with the most effective and efficient service possible.

By re-positioning our involvement in greasy trading, we can focus more on helping growers improve their production and in building markets for their wool,” Mr Rodda said.

Mr Rodda said Elders would continue to buy greasy wool for the company's topmaking plants in China, Germany and Turkey and also on an indent basis for other overseas mills.

“We're still buying for ourselves and others but not in a speculative trading capacity.

“This change in our business does not impact at all on our traditional broking, agency and auction services – those operations remain unchanged,” Mr Rodda said.

“In fact, we will be building on these services by reinvesting the capital from the previous greasy wool trading business back into our broking and processing businesses, so as to better support our clients.

“Our normal broking business will continue, including our offering of a full suite of risk management products.”

Elders Managing Director, Mike Guerin, said that Elders would maintain its total commitment to the Australian wool grower.

“Elders will continue to deliver the wool agency and auction services for which it is famous. This will allow additional focus to be applied to the existing indent buying service with a view of building upon the quality and service currently offered,” Mr Guerin said.

“Our handling and early stage processing operations are continuing as will our wool buying activities in Fremantle, Melbourne and Sydney.

“A strategic review by the company identified the opportunity for Elders to re-invest in its traditional network business which will see ongoing improvements to our core client services.

By refocusing our involvement in greasy trading Elders will be better able to concentrate its resources on our traditional branch network operations,” Mr Guerin said.

Elders expects that re-deployment options will be available for most of the affected employees within the organisation.

Elders Wool

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