PROSPECTS FOR WOOL

Press, Volume LXXVII, Issue 23361, 21 June 1941, Page 8

PROSPECTS FOR WOOL

PROBLEMS FACING

INDUSTRY

COST OVERSEAS OF ' LOWER* TYPES

Heavy orders for wool are reported to have been placed by the United States. The demand of America is mainly for finer quality fleece wools, principally produced by Australia, but, experts in the wool trade say, New Zealand grades are the best for military purposes.- However, the demand within the British Empire ■ itself is so great that it is considered doubtful whether any of these classes of wool will be available for supply to other countries. , , . A problem facing the wool industry is the high price of the slipe wools, locks and pieces by the time they reach manufacturers in other countries. Because of the loss of the European market, experts contend that every possible effort is essential to induce the additional, use of those types of wool in countries which are at present using it sparingly, bilt which might be persuaded; to take much greater quantities if the price could be reduced. The serious danger of a restricted civilian use of woollen clothing in countries other than those which are hedvy producers of wool because of the extremely heavy cost of the garments is also recognised by authorities' in the Dominion.

The end of the producing season in New Zealand is approaching. In a review, an expert said the season had to be considered very satisfactory to the primary producers, among whom speculation on the prospects had been rife. Lambing percentages were satisfactory. and the season as a whqle was an’ exceptionally good one, with the result that the wool ’ clip -was the heaviest ,on record. Payable prices were being paid for the war-time clips, and one clip after the war, and the prospect . was that a further amount would be derived from the 50 per cent, share of profits from resale. of wool by the United Kingdom Government. The main problem of the Wool Council at the moment is reported to be that of certain types of low grade wool, particularly seedy types, which were usually- purchased by Continental buyers and were not previously handled by Great Britain. The possibillty of a review of the whole wool purchase question, not for the purpose of upsetting or changing any of the contracts but to ensure that the maximum quantity of wool shall go into production, is being discussed. Carryovers are a grave concern in not only wool but all classes of production. While the opinion is strongly held in some quarters that the demand will be very heavy when the war ends as a consequence of the serious shortages which must exist in the various European'cpuntries over-run by Germany, others recall the rapid recovery in the post-Great War period and also contend that people ,who have gone short do not suddenly purchase greatly increased quantities of any commodity. ThosO countries, it is argued, may-buy a little extra, but their financial position had to be considered also. One of the best informed wool men in New Zealand holds the view that, if world conditions are to be restored to normal in a reasonable time, international arrangements for barter ih some form will have to be made, but that in any case the unprecedented heavy wastage in the war would result in the using up of great quantities of raw materials which otherwise might have been available in .tha reconstruction period. Although wool prices are fixed for the coming season, the outlook for meat production has not been cleared. The Minister for Agriculture (the Hon. J. G. Barclay) has already made the announcement that the problem* is Under consideration and full details of the Government’s proposals are anxiously awaited by producers throughout the country. A switch-over from meat to wool production is recognised to be a slow process. It is governed in the North Island by the number of long wool rams'available; there was a shortage last, year and too many poor quality sheep were used, experts report, In the South Island, the position is different with the availability of so many pf the fine wool rams. An enormous increased use within the Dominion of wool is reported, local consumption, which formerly averaged 35.000 bales, being almost doubled in the current season. The hope is held that the consumption will grow to 80.000 bales.