WOOL PRICES

Press, Volume C, Issue 29444, 21 February 1961, Page 16

WOOL PRICES

Profit “None Too Wide”

(NX. Prest Association) WELLINGTON, Feb. 20. At the current level of wool prices the margin of profit Is “none too wide” if New Zealand farmers are to find the resources to maintain production. let alone increase it This is said by the chairman of the Wool Board (Mr J. • Acland) in an article in the “Bradford Telegraph and Argus,” Yorkshire. Increased production is important if synthetics are not to fill the gap caused by the demand for wool outstripping the supply, says Mr Acland. Moreover, New Zealand’s potential for expansion is great

“According to the Department of Agriculture we can at least double the present carrying capacity of our farmlands for the most part by intensification of farming by existing techniques. In the South Island there are areas that could carry up to three times their present stocking,” Mr Acland says.

When wool prices fell, Mr Acland says, the farmers’ reserve for investment took the full brunt. The 500,000 acre drop in topdressing which followed the low prices of 195859 and a severe cutback in expenditure on seed cultivation, repairs, and maintenance had an inevitable effect on production.

“Our -economic survey has shown that in 1957-58 and 1958-59 expenditure a sheep fell short of that required merely to maintain production. This situation may well have improved. It is certain, however, that with our present cost structure wool prices are very close to a level which could restrict the healthy expansion of our industry."