Temora-based wool marketer Marty Moses says the high cost of marketing and handling wool eventually comes back to the grower, which is why the industry could no longer afford to continue at Yennora. Photo: Moses & Son.
Riverina wool growers could soon find themselves closer to one of the biggest changes in the industry in decades, with wool auctions set to return to regional NSW after almost 40 years in Sydney’s west.
Wool buyers are expected to re-locate to Goulburn as the city synonymous with growing and marketing the premium fibre prepares for the return of wool sales.
A pivotal player in the move, Temora-based industry veteran Marty Moses says it creates huge opportunities for growers and is preferable to centralising sales in Melbourne.
“It’s moving sales closer to the growers,” he said.
“We want to build the (sheep) numbers in the northern region and retaining a northern centre will certainly achieve that and keep that competitive tension between the selling centres alive and well, rather than a move to a centralised selling centre which would be disastrous as far as marketing goes.”
Goulburn real estate principal Peter Mylonas, who has fielded several inquiries from wool firms, says the industry’s renewed interest in the city is welcome.
“It gives us hope that not only will vacancies be taken up but it will bring other businesses to Goulburn too,” he said.
Wool sales left Goulburn about 1988 for Yennora in Sydney’s west. But the upcoming opening of the Western Sydney Airport has made commercial land too valuable for hosting wool sales.
Warehousing of wool bales began moving back to regional centres years ago and a campaign to get sales to follow has finally paid off.
Logistics company Australian Wool Handlers (AWH) which has warehousing space on Finlay Road in Goulburn, has received a $1.4 million NSW Government grant to help with relocation and establishing the Goulburn Wool Auction Innovation Hub.
Yennora’s warehouses are expected to be demolished after the current lease expires in December and upgraded for future tenants, according to Mr Moses.
Managing director of the wool marketing business Moses and Sons, Mr Moses said he was finalising a contract with AWH to sublet show floor space in Goulburn following the change.
“Apart from my own company I represent a group called YWB (Yennora Woolbrokers) Group which comprises five brokers that have held a common interest in that show floor (at Yennora) from the 1990s,” he said.
“The decision has been to keep the industry together under one show floor.”
Floor space in Sydney’s west was expected to double and probably triple in price in coming years, he said. “The wool industry is saying we cannot afford this.”
Bringing young people to Sydney to train as wool buyers and in other positions was becoming too difficult because of the high price of real estate.
Brokers and exporters were pushing hard to make Goulburn a showpiece rather than just another venue for sales, Mr Moses said.
“Buyers are driving the change, and are very supportive. Some will take up permanent residence in Goulburn, some will travel in and out,” he said.
“Some live in Southern Highlands, the Blue Mountains, some fly in from Melbourne. There are many combinations, this will give them certainty.”
While new show and auction facilities will be built in Goulburn, warehousing arrangements are expected to remain unchanged.
“We operate in Temora, Wagga Wagga, Condobolin,” Mr Moses said.
“Our members are scattered all over the state and have warehouses in Cooma, Dubbo, Parkes, Forbes, Temora. We are not moving where the wool is received and stored.”
If sales had continued in Sydney show floor space would be reduced and the way wool was sold would change, he said.
“Exporters are adamant they want to retain samples, they guarantee the deliveries to their customers, samples give them that validation that the wool is fit for purpose for the money they are paying,” Mr Moses said.
“Buyers and growers still seem to like the open cry auction because they can see it happening.
“While that is slightly traditional, it is very efficient. We sell up to 300 lots an hour and you cannot do that electronically. Electronic methods are slower.”
Australian Wool Network Northern Wool manager Goulburn Mark Hedley said the change back to Goulburn had been under way for many years.
“I think we stopped selling in Goulburn in 1988, but we have buildings here purpose built for it, so the idea would be the industry brings it back to Goulburn,” he said.
“There are a lot of advantages in attracting young people into our industry. It’s very hard to attract young people with a rural background into Sydney and a lot easier to attract them to Goulburn.”
Original Article published by John Thistleton on About Regional.
