Wool broker principals have raised doubts about the regional relocation of Sydney’s wool auctions to Goulburn, as Australian Wool Handlers (AWH) extends the company’s long-term lease at Yennora.
AWH, who hold lease contracts with NSW’s four major brokers, Elders, Landmark, Schute Bell and AWN, has recently signed a five-year lease with Stockland, owners of Yennora Distribution Centre.
The news comes Sydney wool broker principals have failed to meet with Regional Development Australia Southern Inland (RDASI) – which initiated a cost analysis report of the relocation – amid concerns of potential breaches of anti-competitive conduct under the Competition and Consumer Act.
Last month, RDA SI released a report which revealed woolgrowers could save $11 million over five years through the relocation of Sydney’s Yennora wool broker offices and showroom facilities to Goulburn.
The report, Towards a new wool selling future in NSW, exposed potential yearly savings of up to $2.6m annually.
Last season, 29 per cent of the 1.65 million bales sold nationally were through the Yennora centre, at 483,577 bales.
NSW accounts for 38pc of the total national wool production, of which 83pc of wool is delivered to warehouses in NSW, while 17pc is transported interstate mainly to Victoria.
Inland Wool Brokers president Wayne Beecher said while savings to the industry were substantial, concerns of transport competition and logistics needed to be resolved.
“Northern region wool brokers do not want to see a fragmented industry so we have always toed the line and what the bulk of the industry wants to do is what we will do,” Mr Beecher said.
“We’re for it but we’re not seeing enough support coming from all sectors of the brokering industry to be able to go forward with it at this stage.
“Expecting it to happen anytime soon is little ambitious because nothing happens that quick – a lot has to be sorted out.”
RDASI executive officer Mareeca Flannery declined to comment but said the move was still progressing.
“We’ve continued to consult with the appropriate industry stakeholders since we put out our report,” Ms Flannery said.