IN 1923, a group of Wangaratta businessmen joined together to nut out a way to increase the town's employment, following the economic slump after World War 1.

The result was the town's renowned Wangaratta Woollen Mills, according to long-term employee Robyn Andison.

"They sold shares for one pound each and dropped flyers out of a plane to advertise, seeking financial support," Robyn says.

Robyn has taken an interest in the company's history as the secretary of the long service club, which this year celebrates its 50th birthday.

And coinciding with the celebrations the mill has launched a photo competition.

The winner of the cutest baby picture that showcases items made from the mills' yarns will win $15,000. Second and third place share in $15,000.

Robyn says the mills have under gone major change including a merger with Cleckheaton and Panda Yarns in 1991 to form Australian Country Spinners.

"My grandfather first started working here as a truck driver in 1942, my mum started in 1948 and I started in 1976," Robyn says.

"We used to have 600 employees and now there's just 120. Machines are now automatic and don't need the same amount of staff.

"We buy Australian wool but it comes from China where it is processed."

ACS operations manager Ian Brimblecombe says China and India continue to pose a threat to the local industry, largely due to cheap labour.

"But I'm confident about the future," Ian says.

"We still make a great, Australian product that keeps employment and industry knowledge here."

Ian says about 70 per cent of their product are acrylic yarns from Turkey and Thailand, but they ensure the remaining 30 per cent of wool yarns come from Australian wool.

The long service club's 50th anniversary will be celebrated with a dinner in October.

And Robyn thinks the mills continue to be a drawcard for the town.

"People still ring up and ask for the woollen mills, even though we've been Australian Country Spinners since 1991. It's a real little icon, knitters just love coming here."