live sheep exports - Thomson 158 Reuters https://thomson158reuters.servehalflife.com Latest News Updates Tue, 15 Oct 2024 07:18:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 Former ag boss receives $480k payout to leave job as farmers do it ‘exceptionally tough’ https://thomson158reuters.servehalflife.com/former-ag-boss-receives-480k-payout-to-leave-job-as-farmers-do-it-exceptionally-tough/ https://thomson158reuters.servehalflife.com/former-ag-boss-receives-480k-payout-to-leave-job-as-farmers-do-it-exceptionally-tough/#respond Tue, 15 Oct 2024 07:18:19 +0000 https://thomson158reuters.servehalflife.com/former-ag-boss-receives-480k-payout-to-leave-job-as-farmers-do-it-exceptionally-tough/ An ag boss who benefited from tens of thousands of dollars to attend an overseas business course has been given almost half a million dollars from the taxpayer and farmer-funded Australian Wool Innovation (AWI) to leave his job. The body responsible for Australia’s wool research and marketing has disclosed it made a $479,531 termination payment […]

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An ag boss who benefited from tens of thousands of dollars to attend an overseas business course has been given almost half a million dollars from the taxpayer and farmer-funded Australian Wool Innovation (AWI) to leave his job.

The body responsible for Australia’s wool research and marketing has disclosed it made a $479,531 termination payment to former chief executive Stuart McCullough.

Mr McCullough was employed at AWI for almost 23 years, including 11 as CEO.

Most recently, he was employed as its chief marketing and innovation officer (CMIO) in the United States.

Earlier this year, AWI announced the CMIO position would be made redundant and that Mr McCullough would remain in the US.

A 2023 report by the Australian National Audit Office (ANAO) stated it found no record of the CMIO role’s responsibilities, the remuneration package or the board’s decision to establish the role.

“Nor are there records of the board’s resolutions regarding the appointment of a candidate to the role,” ANAO reported.

A flock of sheep waiting to be shorn at a farm in central Victoria.

The Australian wool industry is struggling with low prices.  (ABC Rural: Jess Davis)

In 2017, the ABC revealed Mr McCullough had charged AWI nearly $100,000 to attend a six-week business course in the US, which offered guest speakers morning exercise and optional yoga.

In 2021, Mr McCullough faced questions from senators about a proposal to sell Australian wool into North Korea, which would be illegal.

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Farmer lobby group WoolProducers has called for greater transparency around the CMIO role’s creation and questioned whether the “extraordinarily high” termination payment included Mr McCullough’s salary during his six-month notice period.

“At a time when woolgrowers are doing it exceptionally tough with low prices and increased costs, this figure seems hard to justify,” WoolProducers chief executive Jo Hall said.

A spokesperson for AWI said Mr McCullough was paid his legal entitlements.

“With his departure, substantial savings will be made by the company,” the spokesperson said.

Ms Hall noted that AWI’s annual report showed the board’s salary had also increased by more than $20,000 over the past year.

“While this might not seem a lot over the seven directors and could be attributed to an inflationary increase, unfortunately, woolgrowers aren’t afforded the same luxury when it comes to their wool prices that have been received over the past 12 months,” Ms Hall said.

On Tuesday, Federal Agriculture Minister Julie Collins was in Western Australia announcing an additional $32 million to help the sheep industry adjust to a ban on live sheep exports, that will come into effect in May 2028.

“I’m not aware of that story in terms of Innovation Australia, but what I would say is that salaries of these organisations go through the remuneration tribunal, and they’re hands off from government,” Ms Collins said.

A minister speaks in the federal parliament

Julie Collins was not aware of AWI’s termination payout. (ABC News: Matt Roberts)

Farmers set to vote

Details of Mr McCullough’s payout come as almost 45,000 wool growers around Australia are being asked to vote on how to set the wool industry levy.

AWI’s main income is a farmer levy currently set at 1.5 per cent of the sale price a grower receives for their wool.

The federal government does not contribute to AWI’s marketing budget, but taxpayers do match up to half of AWI’s research spend.

In a process known as WoolPoll, growers are now being asked if they want to set the rate at 0 per cent, 1 per cent, 1.5 per cent or 2 per cent.

A result of 0 per cent would see AWI close. Its board has formerly recommended growers back a 2 per cent rate.

Australia’s wool production is forecast to fall 10 per cent to 285 million kilograms this year.

If that eventuates it will be one of the the smallest wool production years since 1924.

In Western Australia, the third-largest wool-growing state (behind New South Wales and Victoria), the clip is forecast to fall 19 per cent this year, after dropping 9 per cent last year.

With less wool being produced, and at lower prices, AWI expects reduced revenue will lead to reduced services.

A woman standing in a woolshed.

Katrina Blomfield grows wool in Walcha, NSW. (ABC News: Kath Sullivan)

Woolgrower and stud breeder Katrina Bloomfield, who farms at Walcha in NSW, said farmers could not afford to increase the levy, based on current wool prices.

“In 1971, we were getting about $20 to $30 a head for our wool and at the moment we’re getting $50 to $60,” Mrs Blomfield said.

“It’s only doubled what we were getting in 1971.

“Whereas a steel post cost $0.30 back then, and now they’re $8 and there’s lots of things like wages, all our inputs, have gone up.”

WoolPoll will close on November 1.

Watch ABC TV’s Landline at 12:30 on Sunday or on ABC iview.

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Federal government to provide additional $32 million to cushion WA sheep industry from export ban https://thomson158reuters.servehalflife.com/federal-government-to-provide-additional-32-million-to-cushion-wa-sheep-industry-from-export-ban/ https://thomson158reuters.servehalflife.com/federal-government-to-provide-additional-32-million-to-cushion-wa-sheep-industry-from-export-ban/#respond Mon, 14 Oct 2024 21:14:40 +0000 https://thomson158reuters.servehalflife.com/federal-government-to-provide-additional-32-million-to-cushion-wa-sheep-industry-from-export-ban/ The federal government will provide more than $32 million in additional funding to help WA’s sheep industry transition away from live exports, following backlash from farmers and the state government. In May, the federal government announced the export of live sheep by sea would end in May 2028. As part of the decision, former agriculture […]

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The federal government will provide more than $32 million in additional funding to help WA’s sheep industry transition away from live exports, following backlash from farmers and the state government.

In May, the federal government announced the export of live sheep by sea would end in May 2028.

As part of the decision, former agriculture minister Murray Watt outlined a $107 million transition support package to help the industry wean off live exports.

However, the funding was quickly dismissed as inadequate by both the industry and the WA government.

Watt is visible with a slight reflection inside of parliament house.

Murray Watt faced a backlash from WA farmers after announcing the initial support package. (ABC News: Matt Roberts)

WA is the only state that still exports sheep by sea, primarily for slaughter and consumption in the Middle East.

The state government has estimated shutting down live exports could cost the agricultural industry up to $123 million annually without the right planning and support.

Meanwhile, the federal government has continually pointed to the trade’s declining value, stating that live sheep exports were worth $411m in 2002-03, compared to $77m in 2022-23.

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The decision to phase out the trade has become a major election issue in Western Australia, a must-win state in the next federal election.

The coalition has promised to reinstate the trade if elected, with Nationals leader David Littleproud making multiple trips to WA this year to meet with farmers and condemn the ban.

Federal Agriculture Minister Julie Collins will meet with industry representatives in WA on Tuesday and announce an additional $32.7 million for the transition package.

This will increase the total amount to assist sheep producers and those in the associated supply chains from $64.6 million to $97.3 million.

The minister is expected to visit a processing facility in Bunbury in the state’s south-west, in what will be her first visit to WA since taking on the agriculture portfolio in July.

The federal government said it would work with its WA counterpart on key elements of the transition package, including “processing capacity grants and community wellbeing support”.

Included in the total $139.7 million package is $27 million for activities to “enhance market demand”, aimed at exploring “market development opportunities” and “advocating for Australian products at home and overseas”.

A federal MP named Julie Collins wearing a black and white top and clutching a binder in parliament.

Minister for Agriculture Julie Collins says diversification will be key for farmers navigating the ban on live exports. (AAP Image: Mick Tsikas)

Minister Collins has approved the grant guidelines for the first round of the Enhancing Market Demand Program, with submissions opening next month.

Other funding includes $3 million for Meat & Livestock Australia to promote sheep meat and $8.6 million for “agriculture counsellors” in Dubai and Riyadh to “support regional trade relationships and new and expanded market opportunities for Australian sheep products”.

There is also $9 million for Austrade to “promote Australian sheep products globally and support broad growth in Australian agri-food trade in the Middle East and North Africa region”.

In a statement, Ms Collins said the government was delivering on its promise to end the live sheep trade.

“We want WA sheep farmers and those associated with the industry to benefit from new markets and the ever-growing sheepmeat export opportunities before us,” she said.

“Diversifying trade and expanding customer demand will assist businesses impacted by the phase-out.

“The co-design process that we’ve created ensures that industry is playing a critical role in developing the best possible measures to help the sector transition away from live exports.”

On Monday, WAFarmers CEO Trevor Whittington told ABC WA Country Hour he was unaware of what the minister would be announcing, but said he hoped her trip would bring “clarity”.

“It’s been three months since the new minister was announced and she has not been in Western Australia, so we’ve got no idea what is going on,” he said.

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