THE competitive nature of the Australian wool broking industry is why one Tasmanian broker, fresh to the game, is using his clients’ profit gains as his greatest promotion to lure clients.
From his experience as a wool trader and exporter, Roberts Limited operations manager Robert Calvert analyses the supply chain and market trends to find opportunities to value add to clients’ wool clips.
Mr Calvert’s commitment to servicing and building a client base, while developing initiatives that have benefited the Tasmanian wool growing fraternity, were behind his selection as a National Council Wool Selling Brokers Association and Fairfax Media’s Wool Broker of the Year finalist.
In just two years of being a wool broker, Mr Calvert has established industry forums to connect growers with consumer demands and has guided the marketing of clips to be in line with national seasonal selection.
“My opinion is that there are savings to be made and premiums to be gained through a deeper understanding of our industry logistics, market dynamics, customer demands and relationships,” Mr Calvert said.”
He markets by aligning clients’ wool specifications with the right time of the season and market forces.
“By adjusting when certain lots are sold, the discount could be reduced as much as 170 cents per kilogram clean in extreme cases – this could mean as much as $25,000 for a typical 150 bale clip,” he said.
“This approach is far more predictable than forecasting the actual wool market six months out.”
In six months working with Roberts Ltd, Mr Calvert has attracted significant clients, who had sold through private treaty for more than 20 years, back to the wool broking service by proving his skills would increase profits.
“As we all know everything comes back to price,” he said. “If we can put more money in woolgrowers pockets, production will grow, preparation will improve, jobs will be created and the average age of our industry will start to come down.”
He has flipped the traditional farm to auction brokering role by connecting his southern grower clients with buyers to help guide production, influenced by his 10 years as a wool trader and buyer for Schneider, Viterra and Fox & Lillie.
“… I’m looking at making sure enough value is driven after wool is put in the bale, traditional brokerage focuses heavily on productivity and preparation, which is still very important – equally important is driving profits after the wool leaves farm,” Mr Calvert said.
He has spearheaded forums between woolgrowers and buyers, where issues of marketing, clip preparation, transport and consumer demands are addressed.
“It is important woolgrowers get these messages from the horse’s mouth ... from companies that are buying their product,” he said.
“It’s critical information flows both ways, from processor to grower, so they know what the market demands, but also from grower to processor so they can appreciate what a woolgrower’s capacity is, what’s coming to market and when.”
“The whole industry has undergone natural attrition and rationalised to a point it is now only the brokers, woolgrowers and buyers that are at the cutting edge in terms of knowledge, capacity and passion that have remained relevant. There’s no room for passengers anymore.”