109,000 Bales Of Growers’ Wool Sold In London

Press, Volume C, Issue 29620, 16 September 1961, Page 6

109,000 Bales Of Growers’ Wool Sold In London

Mr D. L. Ambler, manager of Ackroyd Bros., N.Z., Ltd., opened an interesting subject when he spoke at a wool field day held by the Foothills branch of Federated Farmers at Staveley on August 28 about the marketing of New Zealand wool. He expressed the view that under present conditions it was a great mistake for a farmer to ship wool overseas for sale, and he also suggested that farmers in the Napier district who had their wool scoured for sale in that centre were losing money by using this procedure.

These views have been challenged by interests which ship wool to London and also by a wool-scouring firm.

“Mr Ambler said that he had attended the London sale in June when Bradford interests, because of lack of competition, were able to buy wools at 4d to 6d per lb less than the same wools could be bought for in New Zealand,” says Mr J. W. Coop, managing director of London Wool Brokers (N.Z.) Ltd.

a quicker sale in London and on occasions a premium is paid for ‘spot wool.’ “It would, perhaps, be fair to ask Mr Ambler the following questions: (1) If wool always sells at such a discount in London, why does he not buy more there, either himself or through his London associates (if any)? (2) How much wool did Ackroyd Bros (N.Z.), Ltd., buy in New Zealand last year (a) at public auction and (b) privately? (3) What proportion of their purchases did his company scour before shipment? (4) Has his company ever sold greasy or scoured wool in London? (5) Could he explain why ah ever-increasing quantity of wool bought at auction in New Zealand is scoured by buyers before shipment overseas?

“May we quote from official reports after the Auckland sale on June 2 and the London sale on the same day when 48/50 medium crossbred fleece of average quality made 40d to 43d in Auckland and 46d to 48d in London. At the same time it must be admitted that during the London June series, which were of two weeks' duration and closed on June 9. some of the shorter fleece wools, especially the secondshear, sold at prices, which after allowing for shipping charges, were slightly below Auckland. For example, good 46/50 second shear made 43d to 444 d in Auckland and a week later in London made 46d to 47|d. “Mr Ambler may not know it but most growers who ship to London do not base their policy on the results of one sale alone; but rather on sales over a period of years. Many of them have found that they can very often get

“Mr Ambler may be interested to know that during the 1960-61 season some 55,300 bales of growers’ wool was scoured before being sold at auction in London .and New Zealand compared with 34,000 bales in 1957-58. These figures speak for themselves. Surely Mr Ambler would not suggest that the farmers concerned do not know what they are about?

“Mr Ambler has not told you that the quantity of New

Zealand growers’ wool sold in London last season was 106,300 bales, which compares - with 91.500 bales in 1957-58 and 36,000 bales in 1949-50.

“Mr Ambler has stated that the quantities of New Zeeland greasy and scoured wool offered in London are limited. The following are the approximate figures for quantities of New Zealand wool offered in London during the .last five series: February, 1961: 34,600 bales, including 27,500 greasy and scoured; March, 1961: 32,500 bales, including 25.000 greasy and scoured; April and May, 1961: 32,000 bales, including 22.500 greasy and scoured; May and June 1961: 34,500 bales, including 21,500 bales greasy and scoured; July, 1961: 24.000 bales, including 12,000 greasy and scoured. “For the series due to start in London on September 13, 29,000 bales include 14.500 bales greasy and scoured; Note that the quantity of greasy and scoured wool offered in each series is mostly growers’ wool but does include some quite substantial shipments on merchant’s account, and also some thousands of bales of B.W.F. stockpile and wool on account of the New Zealand Wool Commission. May we ask Mr Ambler how the above figures compare with wool handled by his own firm? Destination “In conclusion we would like your readers to know that about 80 per cent, of New Zealand wool production last season went to the United Kingdom and European countries including Russia. For these countries Landon provides the market for “spot wool" and is still recognised by many “responsible people,” both in this country and overseas as a valuable alternative market complimentary to our own New Zealand sales. As the wool clip has increased more and more growers have shipped wool to London.”