Growers Puzzled By Wool Prices

Press, Volume CV, Issue 31057, 12 May 1966, Page 18

Growers Puzzled By Wool Prices

Woolgrowers are at a loss to understand why an unclassed bulk line of wool sometimes brings as much or more in the sale room as wool classed in the store or in the shed.

The annual conference of the meat and wool section of North Canterbury Federated Farmers yesterday approved a remit from the Sheffield branch asking the new executive of the section to investigate the ways of best presenting wool for sale so that farmers received the highest possible financial return. “During recent months members of your executive have expressed concern that wool not classed for sale has on many occasions brought more at auction than reclassed lines from the same properties,” said the chairman, Mr W. N. Dunlop. “1 feel that the wool committee in the coming year should inquire into the reason for this trend with a view to informing the farming community as to how best to prepare a clip.” Mr Dunlop said he understood that the woolbrokers had sent three representatives overseas. They had prepared a report which was as yet con-1 fidential, but he thought that it would be a considerable guide when it came down. “A Gamble” A former member of the Wool Board, Mr C. H. Bethell, said that this was undoubtedly a vexed question and he could not give an answer. "1 think that it is because the buyer is having a gamble. He says: ‘lf I can get thia wool at x pence per pound and class it up I can make more money out of it’.” He felt that an earlier speaker had been right in saying that it was something that was associated with the free auction system. *1 think that we have got to approach the buyers rather than brokers,” said Mr G. Boon (Dunaandel). “The buyer is the customer and he is always right” The Wool Board was very active In looking at this problem, said Mr Dunlop, but the demand for styles and types of wool changed very rapidly and this was something that had to be appreciated. Mr R. Oliver (Hororata) said that the important thing was whether it paid or not If the fanner was going to

make more money through classing then he should do it. Auction Favoured In his report to the meet ing, Mr Dunlop said that a wool committee formed by the section had studied various methods of marketing with a view to eliminating violent fluctuations in prices which only benefited makers of synthetic fibres. “The committee recommends that this executive supports the present auction system as this appears to be the most satisfactory method of disposal of a major raw material on world markets. They believe our efforts would be better spent in improving this system than in attempting to develop alternative methods of disposal.”