CONFIDENCE IN WOOL

Press, Volume XCVII, Issue 28629, 4 July 1958, Page 10

CONFIDENCE IN WOOL

No ; Over-Supply In World (New Zealand Press Association) DUNEDIN, July 3. “Many overseas countries are making strenuous efforts to hold their cost structure, and we in this country can not afford to ignore this threat to our economy,” said Mr H. J. Wardell, of Dunedin, chairman of the Wool Board. Mr Wardell, who has just returned from overseas, said noone had been able to forecast the substantial fall in wool prices and added: “It would only be a guess to attempt to predict price levels when the new season opens in October.” Mr Wardell said that overseas he had encountered many more pessimists than optimists. "But in my opinion wool prices have fallen further than conditions really justified,” he said. Unlike so many other commodities, there was no over-supply of wool, said Mr Wardell. “The world could use all the wool we can produce but at a price. There is a ceiling to the price the world is prepared to pay for our wool.” Costs were of tremendous importance and growers could not help but be concerned by the return to the policy of import control, and by the inherent danger of a rise in costs, he said.

“We have already seen one of our major industries priced out of the world’s markets, and if costs are not held, this could hap-, pen to other exporting industries,” Mr Wardell said.