AUSTRALIAN agriculture is a price-taker, not a price-setter, declares the Corporate Agriculture Group in its submission to the Productivity Commission research inquiry.

Which is why the CAG, which includes among its members Macquarie Pastoral, Clyde Agriculture, PrimeAg, Auscott and Twynam, wants a greater research effort into lifting productivity and reducing costs, rather than into marketing.

The CAG submission, prepared by Clyde managing director John McKillop, also advocates a return to the past, whereby research administrators such as Meat and Livestock Australia and Australian Wool Innovation include government nominees among their directors.

CAG's reasoning is that a government nominee will avoid the need to "second-guess what Canberra may be thinking".

At last count, 147 submissions had been listed on the Productivity Commission's website.

One of the most forthright is from Penshurst fibre wool producer Colin Agar, who wants an overhaul of AWI's research arrangements.

"It is probably a pacesetter amongst rural statutory authorities in delivering poor returns to those who are forced to fund it," he declares.

Mr Agar makes two suggestions. One is that the government contribution be directed to a sheep and wool division of CSIRO, with an overriding goal to lift on-farm productivity.

The second is replacing the current compulsory wool levy with a voluntary contribution.

And as an incentive for voluntary contributors, they would be entitled to a 200 per cent tax deduction.

The commission is scheduled to deliver a draft report in September.

This draft report will be subject to public hearings in October and November, followed by a final report to government in February.

Big five

AUSTRALIA'S five largest wool customers are getting, or at least increasing, control of the clip.

In the 11 months to the end of May, China, India, Czech Republic, Italy and Taiwan accounted for 94 per cent of Australia's raw wool exports, compared to 88.5 per cent for the same period last year.

China's share continues to grow, now accounting for 78 per cent.

Twenty years ago the exporting list would have included almost 60 countries. Today it is down to 30 countries.

Despite the demise of Australia's processing sector, almost 10 per cent of the clip was exported in either the scoured, carbonised or combed form.