NEW ZEALAND WOOL

Dominion, Volume 33, Issue 190, 8 May 1940, Page 11

NEW ZEALAND WOOL

Britain’s Demands For Crossbred AN URGENTLY NEEDED PRODUCT Accumulation Of Stocks “It seems clear that no primary product is more urgently needed by the United Kingdom Government than New Zealand crossbred wool.” said the Minister of Marketing, MrNash, in an interview last evening. He added that when considering the sale of wool to Britain it should be remembered that the quantity and quality had altered considerably since the last war, and also that the quantity of and prices received for mutton and lamb had such a close relationship to wool that they could not be completely divorced from it.

“Despite the fuel: that wool did nm have to meet the serious competition from substitute fibres that it does today, when the war terminated in 1918 there were very large stocks of wool accumulated, and it took a considerable time to get these used up and the wool trade generally was seriously depressed nnd dislocated,” said Air. Nash. “Both the British and the Dominion Governments are fully aware of the danger of an unnecessary accumulation ot stocks of raw materials and, during the present war, everything possible will be done to prevent it. the fact that the United Kingdom Government has agreed to extend its purchases for at least one clip after the termination of the war indicates its intention to try to bring about a gradual change back to peace-time trading conditions by guarding against accumulated stocks being thrown on to a somewhat dislocated market. Those engaged in the sheep-farming Industry must be organized and prepared to meet the inevitable post-war competition from substitute fibres. Price Subject to Revision. “I have found that sheep-farmers are generally well satisfied with the price Britain is paying us for our wool. The few eases of complaint or criticism brought to my notice have mostly proved to be without foundation and generally caused by incorrect information ami consequent incorrect assumptions by the person making them. AVe cannot ignore the relationship between the United Kingdom and ourselves when dealing with her under the present war conditions. AVe are a partner in the British Commonwealth of Nations and at war with a common enemy; we are fighting to retain our own rights and freedom and those of the other smaller nations. At enormous cost to her people, Britain is making a prodigious effort, and we must, and will, do our share. I feel that the man who demands for his products the last farthing Britain can possibly pay is acting as we would expect; the people of a neutral or an unfriendly country to act. It is good to know that those making such demands are few and far between. “We have sold our wool for the period of the war and one year after, and this agreement may even be extended if both Governments consider it necessary. No one can say at present what conditions will exist at the termination or immediately after the war ends. It is being stated that we have sold at the present price for the whole .period of the war find one year after, but. this is not correct. The price is subject to revision if either country considers the conditions warrant it. Average Overall Price. "Contracts have been arranged with the AVool Brokers’ Association, the AVool Buyers’ Association and the Wool Scourers’ Association to carry out the work us-milly done by their members or any work which the British Government requires to toe done. All this work is paid for by the United Kingdom Government and growers should not forget that in comparing Hie price they should add seven-eighths of a penny brokers’ charges which they normally have to pay. This brings up Hie comparable average overall price to 13 1-8 pence a pound, and, in addition, there will be a further sum available for distribution from the 50 per cent, share of profits gained by sales to countries outside Hie United Kingdom. “Before reaching agreement with the United Kingdom on the price to be paid for our wool the matter was discussed at; meetings of a considerable number of men representirtivo of the trade, and it. was considered by them that 12d. a pound would be a reasonable price to ask, taking into account all the circumstances. It was recognized that New Zealand crossbred wool would lie needed for war pur]>oses and therefore less

would be resold—consequently the United Kingdom agreed to pay us an additional Ad. a pound, bringing the price up to 12-ld. a pound New Zealand currency. “The United Kingdom Government ha« not purchased Hie South African wool, which is being sold by auction in the usual way with till countries competing. South Africa has approximately 96 per cent, of merino sheep, compared to New Zealand's 2 per cent. Their wool has brought up to March 31 an average of 113 d. sterling for greasy wool, but the usual brokers’ charge which the woolgrower must pay has to be deducted from the Hid. Variation in Values.

“The arranging of the relative distribution of the 12jtl. among nearly 1000 different types of wool presented a very difficult problem, us there has always been tremendous variation in wool prices. The price of fine wool has been increasingly affected during Hie last three years by the competition of substitute staple fibre and the restriction against Hie sale of wool in many countries. However, the relative prices being paid for the different classes of wool are based on a much longer period than three years, and are generous to Hie tine wool breeders. “Comparisons of wool prices iu the grease give no indication of the relative value of such wools to a manufacturer, unless all the different factors are considered. The clean scoured yield may range from below 40 per cent, to more than 75 per cent., and the condition of Hie wool varies considerably from year to year as a result of varying climatic conditions. Unfortunately, 1939 was one of the worst seasons in the history of New Zealand for sheep breeders, and the condition of the wool in many districts has been far below average. The South Island high country experienced extremely severe weather during the 1939 winter

and spring which resulted in a heavy reduction of both Hie quantity and quality <>f many of Hie clips. “To" meet the requirements of the Britisli Government it was announced before tiie season was far under way that no all-in wool would be appraised and that such wools would have to lie skirted and classed at the brokers’ stores, but it was found to be impossible to carry this out ns sufficient skilled labour was not available and also the stores at some centres were not large enough to enable the work lu be undertaken and Hie arrangements for appraisals to lie made at Hie same time. Serious delays in appraisals would also have resulted and. as Britain was in urgent need of crossbred wool. Hie original decision iuid to be rescinded and all-in wools appraised. Schedule To Be Cheeked. “Before next season the price schedule will be carefully cheeked over, and tiiose who go to the trouble of properly skirting and classing their wool may bo sure of receiving an adequate reward for Hie expense they have incurred.” said Air. Nash. While ne have to depend on human beings to carry out the appraisals we must expect' sonic mist,'ikes, lint wo are duty bound to do everything pissible to keep them down to a minimum. "The United Kingdom Government imreed to allow 75,009 bales of greasy wool to l>e scoured in New Zealand, thus enabling our wool scourers to keep their businesses in operation and keep open New Zealand's trade with other countrios in scoured wool. During ihe season a substantial quantity of wool lias been sitipped to many countries and we have been particularly fortunate in that an adequate supply of shipping litis been available during Hie season and there is no abnormal accumulation of stock. “AVith a staff of nearly 500 the British Wool Control Office lias already dealt with -1,000,000 bales of wool split up into thousands of lots: this lias proved a colossal task and we should not lie unduly critical if everything is not tirranged Just exactly as we think it should be.”