It has been just over a year since Elders commenced operations through its groundbreaking wool handling business.
Elders' investment of $25 million in this new venture marked the largest single investment in wool handling this century, demonstrating a long-term commitment to the industry. The two centralised wool handling facilities, based in Melbourne and Perth, have since revolutionised the wool supply chain.
The Melbourne centre uses electric-powered autonomous guided vehicles (AGVs) to move bales of wool, significantly reducing energy consumption and improving operational efficiency. The 22 AGVs, which are powered by on-roof solar panels, operate 24 hours a day.
National manager of Elders Wool operations Michael de Kleuver said the AGVs have provided significant operational and safety benefits since their installation.
“One of the things that the automation does well is reduce the cost of processing a bale of wool. We can use the height of our centre to our advantage, and reduce the labour needed for the business to function,” Michael said.
Over on the west coast, the Perth facility first processed wool in July 2023. Operations Manager Ryan Fletcher said although it has been a difficult year for WA wool producers, clients continue to have confidence in the Elders team, thanks in part to the new business.
“Though the wool quantity in the west has definitely dropped, Elders has been perceived positively and we continue to attract new clients,” Ryan said.
“Our district wool managers have been very present in the bush and are keen to look after growers across the state. Recently the price of wool has been on the upward, with a prediction of that this trend will continuously move up, so we are hoping it encourages the growers to hang in there.”
Michael explained the new consolidated approach through both centres has created efficiencies for growers.
“We bring wool to Perth from all over Western Australia, and wool goes to Melbourne from all over the east coast; South Australia, Queensland, New South Wales, Tasmania, and Victoria. What we are doing is very efficient and low cost, and those efficiencies will get even better over time,” Michael said.
“We are hoping that we can maintain our costs at a lower level for longer. The cost of labour on farm, the cost of shearing, the cost of everything is going up and the wool price is the same as it was a number of years ago, so anything that can save a dollar in the process, whether on farm or in the supply chain, is worthwhile.”
This approach to wool handling underscores Elders’ commitment to innovation and sustainability and also sets a strong foundation for the industry's future growth and resilience.
Elders client Sandy Heal owns and manages a Merino operation in Victoria’s Goulburn Valley region, and said the establishment of Elders Wool has given her a sense of confidence in the sector.
“We have spent a lot of money on our infrastructure in the last five years; covered yards, sheep fencing, basically everything associated with sheep,” she said.
“To see Elders making this kind of investment in the industry is a really good feeling and gives me a lot of confidence moving forward.”
