BIG DEMAND FOR WOOL

Chronicle (Levin), 3 November 1949, Page 5

BIG DEMAND FOR WOOL

(N.Z.P.A.-

-Reuter.

British Experts Forecast Of World's Prospects

Copjjriant)

Received Wednesday -8.50 p.m. LONDON, Nov. 2. In a survey of the intemational wool situation Lord Barnhy said it seemed reasonable to expect that with the dispersed buying power stimulated in many countries, including Germany and Japan through American assistance or charity, the export demand for tops would continue to he large. "It is possible,". he said, "thal combing capaeity through out tht world is being expanded more- rapidlj than wool production inereases. Tht current widespread practiee of regula tion by quota and licence stimulates overseas combing development — for in stance, in Argentine, Chile and ttgvpt and South Africa and Australia, whilt in Europe the reported installed equipment shows great expansion in Italy. "It should be borne in mind, " Lord Barnby continued, "that during the first six •months of 1949 eoml)ing activitv in America has not exceeded (50 poi cent, and yet wool has continued to be used up fast in other parts of the world, "Wool stoeks as reported for the United Kingdom in generai are modest and sub-normal. This gives ground to expect substantial overseas purehases at origin during the current wool season if, as seems generallv to be expected, the wool textile machinery continues to be well employed. "World wool stoeks with the progressive reduction of the accumulation in the hands of the Joint Organisation and with little increase in sheep population are comfortably adjusted to consumption. It may well be that production is barely keeping pace with the expansion of the human population, or more preciselv withv the expansion of the developed wants. "It is probablv too early yet to measure the approximate long-run relationship of demand against supply under the newly adjusted exchange and price levels. It seems probable that buying power will eontinue to reside in the Iron Curtain countries. The demand from the habitual main wool-importing countries of Europe seems lilcely to eontinue normal. "For Britain it is manifest that there will have to be 44 per cent more volume in exports to hard eurrency countries on the same price parity to obtain the same sterling revenue as before>. Iu anv cage substantial internal re-deploy ment in Britain would be a pre-requisito to provide hands for sueh increased volume. "Tn elotli it seems doubtful if that can be achieved to America from those within the high income group which United Kingdom merchandise customorilv serves there. Tf it were to be achieved in 'bread and butter' lines, which is most unlikely, it would obviously bring political reactions in Amo rica wherc nnemployment in the wool textile industry is reported as nearlv 40 per cent for the first half of- this year. ' ' The demand for apparel distribution within the United Kingdom suggested ' a eontinuance of high buying power in the home market which established good prospects for the wool textile industry in general, Lord Barnby said, adding that France was Britain 's chief compe titor in the export field in semi as well as fullv manufactured wool textile gods ■ Export of tops by France to Central European countries was on a large scale.