Major Wool Handler Relocates, Impacting Western Australia Industry

Elders Limited has a rich history in the wool industry in Western Australia, spanning over a century. However, it has recently announced significant changes to its operations. Starting in July 2027, the company will cease wool handling and selling in Western Australia, moving the entire process to its Ravenhall facility in Melbourne.

Reasons for the Transition

This decision follows a dramatic decline in wool production, which has fallen by nearly 40% over recent years. The shift aims to enhance buyer competition, expedite market access, and promote long-term sustainability. Elders believes this strategy will ultimately benefit wool growers in the state.

Industry Reactions

• Luke Grant, director of Westcoast Wool and Livestock, expressed concerns about the future of the WA wool selling market. He noted that Elders’ withdrawal could threaten the viability of local operations.
• Greg Marsh, a sheep farmer and loyal Elders client, echoed Grant’s concerns about the uncertain future of wool production in Western Australia.

Impacts on Local Growers

In a statement, Elders’ general manager of operations, Dave Adamson, explained that the decision was influenced by the federal government’s cessation of the live sheep trade, which has significantly affected wool production. He stated, “This has been a difficult decision.” Elders aims to ensure its clients’ wool is sold competitively, despite concerns about market shifts.

Wool Production Statistics

Recent figures from Australian Wool Innovations indicate that Western Australia’s wool flock currently stands at approximately 10.1 million. This decline in production has been central to Elders’ strategy to consolidate operations in Melbourne.

Operational Changes and Benefits

The Ravenhall facility, which became operational in 2024 following a $25 million investment, is fully equipped to handle all WA wool. Growers will benefit from potentially reduced freight distances, as they might have the option to drop wool at regional depots, minimizing transportation costs.

Future of Wool in WA

Despite the transition, Elders will maintain a dedicated section for WA wool at the Ravenhall facility. They will continue operations out of Rockingham until the transition in 2027, with the local facility shifting its role to a general warehouse thereafter.

Elders is committed to ensuring the visibility and accessibility of WA wool for buyers. The adjustments have raised questions among growers about the stability and future of the wool industry in Western Australia.