A completely new method of selling wool, designed by Canowindra based company Bryton Wool, is set to revolutionise the industry.
At the same time the new system will result in significant cost savings to the wool grower and buyer and to the wool industry in general.
Bryton Wool Manager Geoff Beath said the company along with Hank Vandersheur of Minder Business Systems has developed an internet selling method for wool, using video footage of each sample for display to potential buyers. This method replaced the need for wool buyers to physically see the wool at a showfloor complex.
“This new system will result in a cost reduction for wool growers of up to 25 cents/kg, a significant saving for the industry,” said Mr Beath.
The traditional ways of selling wool involved transporting wool samples to a showfloor in Sydney, Melbourne, Fremantle or Newcastle resulting in growers paying up to 65 cents/kg to sell their wool.
“Compared to a cost of approximately 16 cents/kg for selling sheep and cattle it makes wool one of the most expensive rural commodity to trade.
“That needs to change and I think Bryton Wool has come up with the answer,” said Mr Beath.
Bryan Raine, senior wool buyer from Fox & Lillie also endorsed the new selling system.
“For the survival of the wool industry new methods are needed.
“Bryton Wool’s Video Auction selling systems is the best innovation so far that I have seen in my 35 years in the wool industry.
“We need a cost cutting selling system that will save money between the farm gate and the processor,” said Mr Raine.
Under the new sale system wool samples are tested as per current AWTA standards and details placed in an auction catalogue available on the internet.
Wool samples are then videoed at Bryton Wool’s stores and added to the catalogue.
When the wool is ready for auction, wool buyers log into the auction and view a 20 second video of the wool sample which is attached to the electronic catalogue.
The buyer can enter a sale using a protected password and then bid for each sample during the auction based on the information in the electronic catalogue and seeing the video of the boxed wool sample.
Buyers know if they hold the highest bid for the wool via a message on their computer screen and can increase their bid during the sale period if they not the leading bidder.
Each auction lasts for four days and the highest bid at the end of the sale has purchased the wool, providing it has met the growers reserve price.
“The system operates a bit like eBay,” said Mr Beath.
The buyer can complete this task from his office, negating the need to travel to a showfloor and physically view each wool sample.
Wool samples, shown in the electronic sale, will be retained by Bryton Wool and can be viewed at their Canowindra complex.
Growers will receive payment for their wool after the sale, as per normal auction conditions and the wool is then transported to the buyer’s distribution point.
With sheep numbers in Australia declining to just over 70 million and current industry infrastructure geared up for twice that number, change in the way wool is sold is needed.
“As production costs for growers and buyer and broker costs continue to increase it means less income for the wool producer.
“The current wool selling process has to change,” said Tony Jenkins of Bryton Wool.
Many people in the wool industry are excited with this revolutionary way of selling wool.
“Wool growers are pleased to see this new selling system we have developed at Bryton Wool, they can see real benefits,” said
Mr Beath.
Grenfell wool growers Shane and Denise Cunningham have used the new system.
“We have now sold twice with Bryton Wool’s new on-line Video Auction Selling System.
“We were pleased with the way the system gives us more control over the marketing of our wool.
“Our wool is available for viewing by the buyers for a week before the auction, giving them time to source orders for our wool.
“It also gives us control over what we choose to sell,” said Mr Cunningham.
Already 14 wool buying companies have requested user name passwords from Bryton Wool.
“10 of these companies have already purchased wool using this new system.
“That is very encouraging for Bryton Wool,” said Mr Beath.
Barry Green, a wool buyer for Victoria Wool Processors (VWP) Pty Ltd, one of the last remaining processors in Australia, supports the new concept.
“We support the video sale and have had no problems in the past and are looking forward to future auctions from Bryton Wool.
“The concept is excellent as we need to be able to access wool at every opportunity.
“It is a very positive step”, said Mr Green.
Bryton Wool has 40 years experience in the wool industry and during that time there has been little change in the way wool growers sell their wool.
That is about to change for good.
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