IN a world-first, Elders is establishing an automated wool handling business, with the official launch scheduled for July next year.

The business will complement Elders’ existing wool offering, providing a full end-to-end service that will improve efficiency and outcomes for clients.

The wool handling operation will be based around two centralised hubs, one in Melbourne and another in Perth, that will be supported by an extensive network of receival centres, however, the existing three selling centres in Yennora, Brooklyn, and Spearwood will remain in operation.

The two hubs will offer industry-leading innovations and improve sustainability outcomes within the supply chain, with plans in place for the Melbourne warehouse to be the first in the world to move wool bales using Autonomous Guided Vehicles (AGVs).

The AGVs and supply chain optimisation will provide significant long-term operational and safety benefits for both Elders and its clients.

Elders is also developing its own industry-leading software to deliver a more efficient end-to-end selling process for its clients and is investing $25 million in this long-term commitment to the industry.

Elders managing director and chief executive, Mark Allison, said the new business would revolutionise wool handling.

“Elders is committed to providing exceptional customer service and contributing to the future success of our growers and the wool industry,” he said.

“We are demonstrating this commitment by continual investment in supply chain optimisation, including the logistics, sampling, sales, and storage of wool through automated warehouse operations.”

After being a driving force in Australia’s rural business landscape since its establishment in 1839, Mr Allison said the company has remained fundamental in the industry due to its ability to adjust and meet the everchanging needs of the community.

“Elders is an integral part of the fabric of regional communities and has played a key role in the Australian wool industry for over 180 years – indeed Elders began wool handling and financing in the mid-1800s,” he said.

“Elders recognises that the landscape of the Australian wool industry has changed dramatically in the last three decades and it is critical to adapt and change for Australian fibre to remain some of the best in the world.

“To this end, in making the largest single supply chain investment in the Australian wool industry this century, we stand with our customers to deliver the best sustainable wool supply globally.”

With environmental sustainability a key objective, Elders is aiming to minimise greenhouse gas emissions from its hubs by using solar power, LED lighting, and energy efficient equipment.

The Melbourne greenfield facility is strategically placed one turn off the Western Freeway at Ravenhall, Melbourne, creating a link from key regional growing areas to Australia’s largest concentration of buyers, and providing access to the port through which over 75 per cent of Australia’s wool on the east coast ships to global markets.

“This business is a result of Elders constantly looking at ways to improve outcomes for our clients, the environment, our shareholders and communities,” Mr Allison said.

“We want to ensure we deliver the best results for the next generation of wool growers across Australia.

“The long-term sustainability of the wool industry and improved outcomes for our clients is our key priority.”

Elders’ expert wool network has partnered with global companies to design and structure this new business and is consulting closely with industry, associations and buying partners to ensure the best customer service outcomes.

Elders currently provides a range of selling tools and options for wool growers, including auction, auction forward, Wooltrade, and AuctionsPlus Wool.

Elders handled approximately 350,000 wool bales in the 2022 Fiscal Year (FY22).