SURPLUS WOOL DISPOSAL

Press, Volume LXXXVI, Issue 26126, 31 May 1950, Page 9

SURPLUS WOOL DISPOSAL

JOINT ORGANISATION PROFITS 1 Joint Organisation’s wool profit over 1 four years amounted to £85,424,201. The 1 organisation was formed in 1945 to dis- 1 pose of a war-time surplus of 10,407.000 1 Dales of wool, and it returned a profit of 1 £30,089,943 for the year to June 30, 1949. J The accounts which are given in greater 1 detail in the "Yorkshire Observer’’ than in the summary previously published, also show that stocks of wool at June 30, 1949, had been reduced to 1,700,000 bales, valued at cost at £22,704,566, compared ! with the 10,407,000* bales costing £171,149,942 originally transferred to the . organisation. | With £55,334,258 earned by the , Organisation up to June 30, 1948, accumulated piofits amount to £85,424,201, excluding the £27,747,076 war-time profits which were transferred by the United Kingdom Government to the Joint Organisation when it started operations • on August 1, 1945. Adding the £27,747,076' war-time profits, there is a total of £113,171,277 to be , divided between the four Governments | concerned as follows: — Australia, £40,202,889; New Zealand, ; £9,098,685; South Africa, £7,284,065; United Kingdom, £56,585,638. The steady rise in wool prices is reflected in the Organisation's earnings over the four years from August 1. 1945, to June 30 last. Profits in the first year were £17,324,613; m the second year, £14,601,771; third year, £23,407,874; fourth year, £30.089,943. Purchases by the Organisation at its reserve prices in support of the market ; were negligible in the year to June 30 last, being as follows: Australian wool, 3535 bales, costing £50,567; New Zealand, 94 bales, £1102; South African, 871 bales, £4702; total, 4500 bales, £56,371. Sales in the year to June 30 last were: Australian, 1,008,000 bales for £36,481,185; New Zealand, 389,000 bales, £12,807,153; South African, 110,000 bales, £3,812,215; total, 1,507,000, £53,100,553. These sales left stocks at June 30, 1949, as follows: —Australian, 1,254,000 bales (value, £14,430,678); New Zealand, 411,000 (£7,834,293); South African. 35,000 (£439,595); total. 1,700,000 bales (£22,704,566). Reduction of Stocks The chairman’s report states that inclusive of the 8,910,000 bales sold in the interim year (1945-46) from original stock and the current clip which was purchased in that year, the J.O. had sold by June 30, 1949, 13,160,000 bales, or roughly two and a half times the annual production of the Dominions, and stocks had been reduced to 1.700,000 bales. The rapidity with which the original stock has been reduced is shown as follows : Stocks at July 31. 1945—10,407,000 bales; at June 30. 1946—5,786,000; at June 30, 1947—4.515,000; at June 30, 1948—3,218,000; at June 30, 1949—1.700.000. The chairman states that although the remaining stock of Australian wool is largely of burry sorts, on present indications no difficulty is expected in its ultimate disposal provided reasonable precautions are taken to ensure orderly marketing. The South African stock had been re-duced-to very moderate proporitons, and as far as the New Zealand stock was concerned the market had shown signs of an increase in demand for crossbred wool in substitution for the finer qualities which were more expensive and in short supply. SYDNEY SHEEP SALES RECORD PRICE FOR MERINO RAM (N.Z. Press Association—Copyrignt) SYDNEY, May 30. At the second day of the Sydney sheep sales, a strong-to-medium type Merino ram, aged two and a half years, was sold lor the record price of 3400gns. After a day and a half of selling the sales had realised £ 50,000. In spite of earlier comments by judges that entries in the Sydney sheep show were not representative of the great stud stocks which have made Australian wool world-famous, the sales now taking place in Sydney are proving a spectacular success. writes Cedric Mentiplay, special I correspondent, of the New Zealand Press I Association. Already rams have been I for 3400gns and 31G0gns, and indications are that the total turnover will break all ' records. A strong body of opinion among graziers, however, is that prices would be even higher, and the stud sheep industryeven more important to Australia, if foreign countries were permitted to purchase stud Merino sheep. The ban on the sale of Merinos overseas was imposed 20 years ago at the behest of -a section of the New South Wales graziers who believed that overseas countries w ; ould use Australian stock to establish huge competitive flocks. The opinion of graziers. to-day, is that Australia’s position m the fine - wool market is beyond challenge and that, because of the world-wide shortage of sheep, it would be but profitable and humanitarian to make the best Australian types of Merino available to graziers throughout the world. • l Economists state that the world sheep i population, now at about 685,000,000, is > about 59,000,000 sheep short of requirements, with the result that prices are | unnaturally high and production cannot overhaul demand. Australian flocks, which represent nearly one-sixth of the world’s sheep population totalled 108,700,000 last year and are expected to- approach the 1939 figure of 111,100,000 when this year's tally is completed. They haye recovered from a disastrous series of droughts and floods which stripped them from the record total of 125,200,000 in 1942 to 95,700.000 five years later, and are now' building rapidly. If mere numbers are considered Australia has more than three times more sheep than are in the United States, about 30,000,000 more ■ than Russia, and 55.000,000 more than India. The combined sheep populations of Argentina, Uruguay, and the United States still fall short of Australia's total by some millions. Australia has about two-thirds the number of sheep of the British Commonwealth's three main sheep countries—- , Australia, New Zealand, and South Africa. In quality the odds are even more in Australia's favour, for Australian Merino ' wool has never been bettered. Some i breeders are convinced that the Australian i lead will never be overhauled and that ! it should be made legal to sell Merino stud stock to South Africa, America, the Argentine, and even to Japan, which recently purchased a selection of Australian Corriedales. Some graziers, however, hold fast to the opinion that such a step would endanger Australia’s future. GREY RIVER DREDGING RISE IN NET PROFIT An increase of £2306 to £4889 in net profit for the year ended December 31 is shown in the thirteenth annual report of • the Grey River Dredging Company, Ltd. (West Coast). Profit in 1947 was £74,615, the sharp drop in 1948 occurring as a result of the reduction in the exchange rate. Last vear’s result is reached after providing' £ll2O for taxation, but no provision was made for depreciation. The dredge worked 5435 hours during the year, or 73.1 per cent, of the possible digging time. Bullion recovered was 5872 ounces, realising £64,038. This represents an average recovery, of 4.61 pence a cubic yard of gravel excavated. Dredging has been continued downstream toward the west in the Blackwater area, says the chairman’s report. Th® operating cost, including income tax, amounted to £59,506, or 4.28 d per cubic yard dredged. Comparative results are:— Dec. 31. 1947. 1948. 1949. Net profit .. 74,615 2,078 4,884 Div. a share .. Is 6d 4d 3d Amount .. 45,000 10,000 7,125 As a result of the revaluation of the New' Zealand pound in September, 1949, the increased price of gold has been very welcome, says the report. Replacement parts and also materials fol ordinary routine repairs have been difficult to obtain, owing to conditions prevailing both in the Dominion and elsewhere. However, the . management has been able to maintain ‘ all parts of the dredge in good operating condition, notwithstanding the difficulties of securing both the equipment and materials for proper and efficient mainten- ’ ance.

STOCK SALES TINWALD Fat ewes were up by 2s a head, and fat wethers firm at late rates at the stock sale at Tinwald yesterday. The market for lambs was buoyant. Medium wethers made to 545,- prime to 655, and extra prime to 71s 7d. A pen sold on account of Mr J., W. Watson and son, Pendarves, was sold at the top price. Medium ewes sold up to 375, prime to 455, and extra prime to 50s Id. Mr H. Harper, Tinwald, obtained the top price. Fat lambs made up to 62s Id. In the store sheep section, hill country tw’o-tooth wethers sold up to 42s 6d. rape ewes 30s 3d to 31s, wether lambs from 28s to 41s 6d, and ewe hoggets from 45s to 665. Singapore Dollar Rates.—Amended Singapore dollar exchange rates as advised by the Bank of New South Wales, effective as from Monday, are: T.T.: Buyers, . nr.-n d . 51-64 d On demand: 2/ sellers, 28 51-64 d.