POOR wool prices and a shrinking clip slashed Australian Wool Innovation's 2008-09 levy revenue by 24 per cent to $34.3 million.
And, according to AWI forecasts, the revenue situation is not going to get any better, with the clip tipped to shrink further.
The 2 per cent grower levy was 55 per cent of AWI's total revenue of $61.7 million.
The other three major contributors were the Federal Government with a matching research contribution of $11.4 million, Woolmark licensing at $9.1 million and interest of $3.34 million.
But despite the drop in revenue, AWI's expenditure fell only 8 per cent, to $78.6 million, resulting in an operating deficit of $16.9 million for the year.
Chief executive Brenda McGahan said since November, AWI had cut $25 million in costs, 100 staff and 300 projects.
The current AWI board has been critical of the previous board's expenditure on corporate communications.
But, despite criticism, AWI reported an internal expenditure of $2.5 million for the year compared with $2 million in the previous year.
WoolProducers executive director Greg Weller said the organisation lacked transparency, with "no mention of directors' pay" in the report.
"A grower could be forgiven for thinking that they were trying to conceal (their pay rates)," Mr Weller said. "Also, AWI directors are looking to double the length of their contracts ... how can their shareholders vote on something if they don't know what they are voting for?"
Hamilton ultra and super-fine wool grower Michael Blake said the Australian wool industry badly needed to rebuild itself.
Mr Blake said AWI was missing the mark on where it was allocating its money.
"They have misled the industry on the mulesing industry, which is damaging our markets," he said.
He also questioned the ownership of the intellectual property of AWI's Chinese projects.
