WOOL IN THE ECONOMY

Press, Volume CI, Issue 29746, 13 February 1962, Page 20

WOOL IN THE ECONOMY

(Bg

J. P. McFAULL.

of the Meat and Wool Boards' Economic Service)

“Since time immemorial wool has been the yardstick of quality and value in wearing apparel and in many household textiles. It continues to be the index of quality and value today as new man>made fibres are introduced into the market. Whether used alone or in blends with wool, these new fibres are making the public increasingly aware of the many virtues of wool, which were hitherto taken for granted.” These remarks were made by the Wool Bureau of New York in 1953 and they still hold good. In spite of the improvements in man-made fibres, they still have not displaced wool, which is truly the wonder fibre.

as a fibre for apparel and household furnishing has been the base on which New Zealand’s wool industry is founded. We think of wool as a major product from our farming industry, and a product which earns more than half ot sheep farmers’ incomes. We also know that wool receipts are a major item of our export income

and one which has frequently bailed us out ot trouble. But that is not all. Wool is used as a raw material in many industries manufacturing for local use and in addition the selling and handling of wool exports provides employment for many thousands. Thus wool has a very important part to play in the economy of New Zealand. To the sheep farmer this season, wool will return about £lOO million. The estimated production for the 1961-62 season is about 600 million lb more or less. Last season the average price was 40jd a lb, a fall of almost 4Jd a lb in the previous season. This price was a weak shadow of those gained during the early and mid-fifties, but the pattern seems to have been set. Market Shortage It is perhaps worth recalling that there was a market shortage of textile fibres after the Second World War. Wool production recovered fairly well, and in addition there were large stocks available from the Joint Organisation. The demand was such that wool supplied, including the Joint stocks, was rapidly consumed at attractive prices. Manufacturers of synthetics were not slow to note this and they found a ready mar-

ket in a starved world. The supply of snythetics of a wool-type is now approaching the supply of wool but even so, the demand is still strong enough to take all that is produced—both wool and synthetics.

The major casualty has, however, been the price. Wool interests are confident that with the strong demand for textile fibres there is a satisfactory future for wool. The demand has never really slipped and there are signs that wool’s use has been stimulated by recent improvements in presentation. Forecasting the price of wool is a hazardous business (and one which has not only wrecked reputations but also fortunes). However, I consider that this season’s price

will be about 2d a lb above last season’s and I do not expect any future spectacular price changes. Place Of Shearer In assessing the place of wool in the economy, we must not forget the colourful shearer. There is a wealth of history and legend wrapped up in shearing from the days of “click go the shears” to today’s mechanised production lines. When it is remembered that during a season more than 70 million sheep and lambs are shown, the immensity of the annual task is clearly seen. There are thouands of seasonal workers emplayed in the sheds. Shearing time has more than just an effect on' our economy—it is part of our way of life. Beyond the wool sheds we have the transport organisation, the wool stores, the vibrant auction floors and Anally the waterfront—and to me it is still a thrill to see wool diappearing down through a hatch on its way to distant markets.

Thus in its raw stage, wool affects directly a wide group and many thousands of New Zealanders.

To speak of wool without giving some thought to the local manufacturers would be wrong and a serious omission. New Zealand’s woollen mills must be among the oldest of our industries. The mills have always been important and, during time of exchange crises, have been called upon to replace overseas goods as far as possible. The quality of the fabrics produced in New Zealand is high, and while the variety may not be as wide as could be desired there has been much

improvement. Indeed, it is difficult to see how the mills could economically produce a range of goods similar to those of Bradford without a very marked increase in costs and bottlenecks in production.

During the year ended, March 31, 1960, the 20 woollen mills employed more than 3200 persons. Salaries paid totalled £.22 million and £3.9 million was the value added in manufacture.

Other industries engaged in spinning and weaving textile fibres include the carpet mills. Those mills employed 1200 workers in 1959-60, paid salaries of more than £900,000 and recorded an added value of £1.9 million. Hosiery and other knitting mills process fibres other than wool, but used more than 3 million lb of wool In 1959-60. They employed 4500 workers at a cost pf £2,800,000 for an added value of more than £5 million.

Then there is the large clothing industry which employs nearly 19,000 persons (in 1959-60). These manufacturers use New Zealand produced fabrics and imported articles. This industry added nearly £l4 million during production and, of course, was a large user of wool. Finally there are the re. tailers of wool goods—a considerable body of people.

I have endeavoured to show that wool plays a vital part in our economy and our way of life. On a per capita basis, New Zealanders are the greatest users of wool in the world. We must also realise that a large part of our national income is derived from wool—in one state or another.