WOOL AND THE WAR

Dominion, Volume 36, Issue 102, 25 January 1943, Page 4

WOOL AND THE WAR

The interest of sheepfarmers in the Dominion is not restricted to the New Zealand clip. Wool from other countries competes with the local product, and unless it, too, is going steadily into consumption accumulations overseas, and especially in South America, might have an adverse effect on prices when trading conditions arc again normal. Some interesting particulars with regard to the wool trade in Argentina and Uruguay are given in the annual wool review issued by Dalgety and Co., Ltd. Apparently South American exports in 1940-41, the latest period for which details are available, reached record levels. Argentina shipping 437,000 bales, as compared with 305,000 in the preceding year, and Uruguay 143,000 (104,000 j. The bulk of this wool went to the United States. In pre-war years that country had taken, on occasion, less than 7 per cent, of the Argentine clip, but in 1940-41 it took over 83 per cent., and the figures for Uruguay moved from H per cent, in 1937-38 to 82V per cent, three years later. Great Britain, having contracted to buy the greater part of the Empire dip, reduced jts purchases of South American wool materially, and in 1940-41 took only 2 per cent, of the Argentine shipments, and no wool at all from Uruguay. Last December the Government at Washington made a new agreement with the Argentina under which the import duty on coarse wools was lowered substantially. That will have been a powerful factor in directing the flow of trade. And it is interesting to note that while shipments to Japan have ceased since she declared war. Russia re-entered the. market at Buenos Aires and a shipment: of 10.000 bales on Russian account was reported. The figures also show the success of the United Nations in cutting off supplies of South American wool from the Axis Powers. Before lhe war Germany was the largest buyer and the bulk of the clip went to European countries. In the latest list of exports Sweden is the sole Continental country mentioned, with 7600 bales. Against the names of Germany, Italy, Holland, Poland, France and Belgium there are blanks, and the United States negotiated for the purchase of surplus Uruguayan wool to ensure that only Sweden, Switzerland and Russia could get supplies. Wool for military requirements must be one of the real difficulties of the Axis group, and without it campaigning in a European winter must be rendered much more difficult. Ihe Nazis seized whatever stocks the neighbouring countries had when they were overrun but, as with many other commodities, that could be done only once. The Allies have seen to it most effectively that the stocks were not replenished.