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AWTA to increase wool testing fees
Jun '09
Mr Michael Jackson, MD
Mr Michael Jackson, MD
AWTA Ltd announced that there would be an average increase of 3.5% in wool testing fees for the forthcoming wool selling season, effective from the 1st July 2009.

Mr Michael Jackson, AWTA Ltd's Managing Director said: “Like most businesses in the wool industry, AWTA has been heavily impacted by the continuing decline in wool volumes. The amount of wool tested in Australia has declined by 10% over the past year and the Australian Wool Production Committee has predicted a further decline in wool production during 2009/10.In such a difficult environment, AWTA has taken significant measures to reduce operating costs, including the permanent closure of our Sydney laboratory and a reduction of shifts in our Perth laboratory. Despite these measures, the Board of AWTA Ltd has determined that a modest fee increase for the forthcoming wool selling season is prudent in order to ensure the ongoing financial stability of the Company.”

Even with this fee increase, the testing fees for a typical 7 bale lot still remain less than they were in 1993. During the same period the volume of Australian wool tested has declined by more than 50%. Gains in testing productivity,the control of operating costs and the adoption of new technology has meant that AWTA Ltd has generally been able to avoid increasing fees over the past 16 years.

The change in fees since 1993. In that time the fee for an average 7-bale lot of wool tested for Yield & Micron and Staple Length & Strength has decreased by 4.4% while inflation has increased by 44.5% and wages by 64.9%. There was no general increase in testing fees last year.

Key Points
1. Average fee increase of 3.5%.
2. Testing volume has declined by 10% in the last 12 months.
3. AWTA Ltd continues to take steps to reduce operating costs, including closing its Sydney laboratory.
4. Even with a fee increase, testing fees will remain lower than they were in 1993.

Australian Wool Testing Authority Ltd

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