WOOL SALES IN NEW ZEALAND

Press, Volume LXXXIII, Issue 25300, 27 September 1947, Page 10

WOOL SALES IN NEW ZEALAND

NEW RESERVE PRICE PROCEDURE

JOINT ORGANISATION VALUATIONS

(P.A) WELLINGTON, Sept. 26. The reserve price procedure for New Zealand wool has been altered this year to conform with the procedure adopted in the United Kingdom t Australia, and South Africa, according to advice received by the New Zealand Wool Board from the New Zealand Wool Disposal Commission. < This season the Joint Organisation reserve price valuations on wool offered at auction will not be handed to brokers. The Joint Organisation representative at auction sales will, where necessary bid reserve prices at the sale. Woolgrowers through their brokers may place their own reserves on any lots, and if they fail to effect a sale they may sell such lots at the Joint Organisation reserve prices. During the option period prescribed growers may obtain from their brokers advice about the market valuations of their wool in accordance with pre-war practice. Where a grower places his own reserve on a lot at a price higher than the Joint Organisation reserve, and there is no bid by a commercial buyer at, or in excess of the Joint Organisation reserve, the lot is passed to the organisation at the organisation’s reserve, but the grower, through his broker, can try to sell to a commercial buyer. If he is not successful he can sell to the Joint Organisation at the organisation’s reserve price during the option period from the end of the sale of the last catalogue until 4 p.m. on the second day after the sale.

A further provision is that where a grower places his own reserve on a lot at a price higher than the Joint Organisation reserve, and the price bid equals or exceeds the Joint Organisation reserve, but is less than the grower’s own reserve, the lot is passed to the commercial buyer who made the bid, and the grower then has the right to sell the lot to the Joint Organisation at the organisation’s reserve price. If he cannot effect a sale to a commercial buyer, in this case the time limit is the same as set out above.