BUYERS’ ACTION

Otago Daily Times, Issue 26634, 3 December 1947, Page 6

BUYERS’ ACTION

BOYCOTT OF WOOL SALE TRAVEL TO GISBORNE TOO ARDUOUS P.A. GISBORNE, Dec. 2. In spite of the apparent intention of buyers to boycott the first Gisborne wool sale next Friday, the auction is to proceed. A catalogue of approximately 17,000 bales of the new season’s clips and 3833 bales of stockpile wool will be offered, and representatives of the Joint Organisation, whose valuers have been appraising the offering this week, will be present to bid at its reserve prices on lots submitted. In view of the fact that the Joint Organisation reserves are substantially below to-day’s market levels, growers will have to decide whether to accept the reserve prices, hold the clips in the hope that buyers will attend the March aucton here, or ship the clips to England. Negotiations are still proceeding between the growers and woolbroking organisations with buyers to attend the March sale, for which 25,000 bales are allocated. Brokers are not unhopeful that a compromise may be reached.

Last year, Gisborne with a probable offering of 50,000 bales, was placed on the Wool Disposal’s Commission roster for 1947. Buyers, however, reserved the right to issue their own roster omitting Gisborne. Throughout months of behind-the-scenes negotiations by brokers’ ’’and growers’ organisations, buyers have not deviated from that decision. Buyers’ contention is that in view of staff shortages and the amount of travelling entailed, the sales roster previously fixed was adequate and that undue physical strain would be placed on them by the extra sales at Gisborne. . . Woolbroking firms in Gisborne have spent over £IOO,OOO on the erection of new stores, extensions and alterations to existing buildings and it is estimated that the holding of sales here would mean a saving of £IOO,OOO annually in transport, labour and brokerage charges in handling up to 60,000 bales from Gisborne and East Coast districts. . , , _ To-day, no buyers had reached Gisborne from Napier to attend the sale on Friday ana reports that several busloads travelled south indicated that the auction had been by-passed.