CROSSBRED WOOL

Wairarapa Times-Age, 8 May 1940, Page 3

CROSSBRED WOOL

URGENT BRITISH DEMAND FOR WAR PURPOSES

STEPS TO GUARD AGAINST ACCUMULATED STOCKS.

SURVEY BY THE HON. W. NASH.

It seems clear that no primary product is more urgently needed by ihe United Kingdom Government than New Zealand crossbred wool, stated the Minister of Marketing, the Hon. Walter Nash, in an interview last evening.

When considering the sale of out wool to Britain it should be remcmoered that the quantity and quality have altered considerably since the sale during the last war and also the quantity of and prices received for mutton and lamb bear such a close re ; iationship to wool that they cannot be completely divorced from it. Despite the fact that wool did not 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 and dislocated. Both the British and the Dominion Governments are fully aware of the danger of an unnecessary accumulation of stocks of raw materials and, during the present war, everything possible will be done to prevent it. The fact that 'lie United Kingdom Government has agreed to extend its purchases for at least one clip after the termination of the war indicates their intention to try and bring about a gradual change back to peace time trading conditions by guarding against accumulated stocks being thrown onto a somewhat dislocated market. Those engaged in the sheep-farming industry must be organised and prepared to meet the inevitable post-war competition from substitute fibres. PRICE FOR WOOL. 1 have found that sheep-farmers are generally well satisfied with the price Britain is paying us for our wool. The few cases of complaint or criticism brought to my notice have mostly proved to be without foundation and generally caused by incorrect information and consequent incorrect assumptions by the person making them. We cannot ignore the relationship between the United Kingdom and ourselves when dealing with her under the present war conditions. We 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 ihe 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. EXTENSION POSSIBLE. We have sold our wool for the period of flic 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 and one year after, but this is not correct. The price is subject to revision if either country considers the conditions warrant it. Contracts have been arranged with the Wool Brokers' Association, the Wool Buyers' Association and the Wool Scourers' Association to carry out the work usually done by theii members or any work which the British Government requires to be done. All this work is paid for by the United Kingdom Government and growers should not forget that in comparing the price they should add 7-8 of a Tjenny brokers’ charges which they normally have to pay. This brings up the comparable average overall price to 13 1-8 pence per pound, and, in addition. there will be a further sum available for distribution from the 5C per cent share of profits gained bj sales to countries outside the United Kingdom. FIXING THE PRICE. 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 representative of the trade and it was considered by them that 12d per pound would be a reasonable price to ask, taking into account all the circumstances. It was recognised that New Zealand crossbred wooi would be needed for war purposes and therefore less would be resold —consequently the United Kingdom Government agreed to pay us an additional :'d per pound, bringing the price up ic 12.1 d per pound New Zealand currency. I might add that the United Kingdom Government has not purchased the South African wool which is being sold by auction in the usual waj with all countries competing. South Africa has approximately 96 per com of merino sheep compared to New Zealand’s 2 per cent. Their wool has brought up to March 31 an average of ll.yd sterling for greasy wool but the usual brokers charges which the woolgrower must pay has to be deducted from the 11 id. DIFFICULT PROBLEM. The arranging of the relative distribution of the ,12'|d among nearly 1000 different types of wool presented a very difficult problem as there has always been tremendous variation in wool prices. The price of fine wool has been Increasingly affected during the last three years by the competition of substitute staple fibre and the restriction against the 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 throe years and arc generous to the fine wool breeders.

Comparisons of wool prices in the crease 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 Io over 75 per cent and the conclN ticn of the 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 the quantity and quality of many of the clips. ALL IN WOOLS. To meet the requirements of the British Government it was announced before ihe season was far under way that no all in wool would bo appraised and that such wools would have to be skirted and classed at the brokers stores, but it was found to be impossible to carry this out as sufficient skilled labour was not available and also the stores at some centres were not large enough to enable the work to be undertaken and the arrangements for appraisals to be made at the same time. Serious delays in appraisals would also have resulted and. as Britain was in urgent need of crossbred wool, the original decision had to be rescinded and all in wools appraised. Before next season the price schedule will be carefully checked over and those who go to the trouble of properly skirting and classing their wool may be sure of receiving an adequate reward for the expense they have incurred. While we have to depend on human beings to carry out the appraisals we must expect some mistakes but we are duty bound to do everything possible to keep them down to a minimum. SCOURING LOCALLY. The United Kingdom Government agreed to allow 75,000 bales of greasy wool, to be scoured in New Zealand, thus enabling our wool scourers to keep their businesses in operation and keep open New Zealand’s trade with other countries" in scoured wool. During the season a substantial quantity of wool has been shipped to many countries and we have been particularly fortunate in that an adequate supply of shipping has been available curing the season and there is no abnormal accumulation of With a staff of nearly 500 the British Wool Control Office has already dealt with 4.000,000 bales of wool solii up into thousands of lots: this has proved a colossal task and we should not be unduly critical if everything is not arranged just exactly as we think it should be.