SA wool family dynasty spins new deal
A more than 150-year-old wool giant has announced a new merger claiming it will boost the fortunes of local sheep farmers.
Australia’s largest wool exporter Michell Wool has partnered with the country’s second largest exporter Endeavour Wool saying the new deal would cut out intermediaries.
The South Australian wool family dynasty Michell Wool is merging its wool sourcing, direct buying and broking operations with the comparative newcomer Endeavour Wool Exports claiming the deal would open up new access for Australian wool growers to international markets.
Michell Wool executive director David Michell told InDaily the merger would provide Australian wool growers much-needed direct access after several years of struggles for the industry.
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“The Australian industry has had a pretty tortuous time since COVID, both environmentally with lack of rain, and then also with the world markets not performing particularly well, and therefore lower prices,” Michell said.
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“The challenge at the moment is to get access to programs for products that are actually being used, and we have that access, and it hopefully will give the growers a sense of belonging to a supply chain that is actually doing something rather than just the growing wool side.
“It gives the growers direct access to these markets rather than through an intermediary.”
Michell said this made the approach to marketing wool for growers nationwide more paramount while there was a growing demand for wool, particularly from China, India and Italy.
“There’s a need for coarser wool, which would be a nice change for a lot of the growers of meat sheep. The byproduct there is a coarse wool, and that’s been in the doldrums for probably four or five years,” Michell said.
“We also have some super fine wool needs from some of the top end suppliers in Italy, which we can sign people up into growing specific wools for specific markets.
“The Endeavour team and the Michelle team are actually very, very focused on exactly the same outcome, which is trying to find a supply chain that works for our customers.”
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Michell Wool has been operating within Adelaide since 1870 and is now the oldest and largest exporter of processed Australian wool fibre in the country.
Since first establishing in 2017, Endeavour has become Australia’s second-largest exporter with 200,000 bales annually to clients in China, Italy, Japan and India.
SA is currently home to the only remaining wool cleaning and processing facility in Australia, which is run by Michell Wool and used by Endeavour Wool, following the closure of a Geelong facility last year.
The decision to merge operations of the two companies was “a meeting of the minds” over a few drinks in China with Endeavour founder Josh Lamb.
“Unlike most other buyers and brokers in Australia, the Endeavour and the Michell team are purely focused on selling a product directly overseas,” Michell said.
“We’re not the middlemen, we’re actually the provider of a bespoke product to the end user, so in that we’re a bit uncommon.”
Agribusiness executive Greg Pearce, who will serve as Michell Endeavour’s general manager, said the merger would strengthen relationships with growers and regional communities in the wool industry.
“There’s comfort in knowing Michell Endeavour will deliver, today, tomorrow and into the future – and that’s great news for all, not least our employees, who will have enhanced job security and opportunities to grow their skills, boost their career and, being in greater demand, enjoy even more rewarding futures,” Pearce said.
The merger is subject to shareholder and regulatory approvals which is anticipated to be approved by September.
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