ASI Executive Board Approves FY 2005 Budget

September 2004 -- American Sheep Industry Association (ASI) Executive Council members unanimously approved on July 10, 2004, the association?s FY 2004-2005 Wool Trust budget.

The $3,090,000 budget includes a first-time line item for a Certified U.S. Wool Clip Program, which will highlight properly prepared clip, as well as the producers, shearers and warehouses involved in its production and marketing.

The program?s initial focus will be that of reducing colored fiber and polypropylene contamination in clip. Subsequent focus will be on improving the processing predictability of U.S. wool via the use of wool classing, wool descriptions and objective measurement testing.

Also included is a self-certification process through which shearing crews can demonstrate their commitment to improving the quality and reputation of U.S. wool.

ASI also plans to continue working on the international program for wool exports and military/new product programs for domestic wool mills.

?More than $800,000 of ASI?s budget will be received from the U.S. Department of Agriculture?s invaluable Foreign Agricultural Service (FAS) program, which is utilized to promote American wool and pelts internationally,? explains ASI International Wool Marketing Director Rita Kourlis Samuelson. ?The FAS program has played a vital role in increasing exports of U.S. wools.?

Other funding-approved activities include:

• wool market research/promotion, with items such as market and product development, international marketing and wooled pelt activities;
• quality improvement, including the areas of new technology, market accessibility, market information, raw wool quality improvement and quality assurance; and
• producer communications, with items such as print and electronic communications with industry members, media, educators, agri-business leaders, educators and legislators.

The FY 2005 budget was first reviewed and approved on July 9 by ASI?s 14-member American Wool Council.

The budget now awaits approval by ASI Board of Director members.

Other actions approved by the ASI Executive Board include at the July 10 meeting include:

• Support to the Congressional Agriculture Committees for reauthorization of Mandatory Price Reporting, which expires October 2004;
• Approval of dues assessment for FY 2005 at the same rates as those of FY 2004 -- $.03 per stock sheep and $6 per member;
• Continued participation in the Commodity Roundtable Public Relations Working Group, to preserve the integrity and funding of the 2002 Farm Bill; and
• Continued communication with the U.S. Department of Agriculture?s National Agricultural Statistics Service, regarding annual sheep inventory numbers.

Executive board members also heard about ASI programs aimed at providing more competition in the wool market that have played an important role in narrowing the price margin between domestic and international wools. Although the ultimate effect on pricing is multi-faceted, increased competition from U.S. wool has helped lower the price differential between American and foreign wool to its lowest level since World War II. In fact, in some cases this past wool season, U.S. wools brought the same price as similar wool types in Australia.