Public's Erroneous Idea About Wool

Chronicle (Levin), 3 July 1948, Page 5

Public's Erroneous Idea About Wool

Press Association)

(Per

WELLINGTON, July 2. The higher resprve prices fo.y wo.0.1 tu the coming season will n'o.t mean that growers \vill receive any more for their wcol than they did last' ypar. The reserve or "floor" price is the priee at which the Joint Organisation bu.vs wpol if no satisfae.to.ry bid is forth coming from a connnevcial buyer. Tb - iitcreased" demand for .. Merinos laml. halflneds has recently widened considerably the gap between the rescr\t aml market values, aud it is to narrow this gap that the increases have been ntade in the floor price of these type of ivool. As 80 per cent. of New Zegland vrools are crossbred there will

he no alteration in fheir reserve prices. These points were made today by" AJ v. IJ. J. Wardeli, acting chainuan uf'th-i Kew Zealatul Wool Board, in a statement comrnenting on the amtouneemen; on the reserve prices by the Ministe:' of Ararketing' fHon. E. L. Cullen). Tlie .Minister stated that from August 30 this year the average overall increasiin the reserve level as compared with the- past season 's average would be approximately 20 per cent. in Austraixa, 18 per cent. in-Fouth Africa and 4 pet cent, in New Zealand. "Growers should clearly undei'stand, " said IMr. Wardeli. "that this announcement does not mean an increase in their returns ixx tlie 1048-40 season but represents a read.justnient of reserve prices in order to bring theixi more ipto line with the. nxarket demand. These reserve price> were originally based on the wrar coxnmandeer schedules which were then then in favour of crossbred qualities Thf market has now moved in favour of fine wools which accounts for -the greater increase in the new reserv prices for Anstralia and South Africa. Only 20 per cent. of the New Zealand clip will be affeeted b.V this •alteration. and unless we have a serious reeession in avooI values the new reserves will make no difference in the returns received by growers. "This announcement mav cause some,. ■ionfusion in the minds of the genei'a! public who, because of the publieity given to the extreme prices paid at auction for a few bales of our super wools, have got an erroneous idea that tyoolgrowers over the last season wero receiving verv high averages. As a matter of fact, wopl values were not out of lipe with other world commodi ties and are much on a par with buttfcr qnd meat. The flnal flgures are not yet gvailable, but 80 per cent. of our woob last season netted the gro.wers ahout 20d per lb., a low enaugli avex-age when all the circunistances are taken into coflsideration. "