The Press FRIDAY, APRIL 13, 1962. Ensuring A Future For Wool

Press, Volume CI, Issue 29797, 13 April 1962, Page 10

The Press FRIDAY, APRIL 13, 1962. Ensuring A Future For Wool

In me forewoid to a recently-issued brochure on New Zealand's wool industry, the chairman of the Wool Board (Mr J Acland) contended that the wool producers of South Africa, Australia, and New Zealand “ have probably gone “ further than any primary “ producers in the world in “ developing their product “ by research and promoting *" it by modern methods Under the stimulus of competition from man-made fibres, the International Wool Secretariat and its subsidiaries have achieved excellent results in improving market stability and popularising the use of wool in new areas. Unfortunately. research and advertising are not exempt from the increases in costs common to most industrial activities since the Second World War; and if the good work done for w’ool is to be consolidated and continued, more money will be needed from producers for scientific and promotional programmes. It would be short-sighted, therefore, to argue against the 50 per cent, increase in the wool levy that has been approved by the New Zealand board's electoral committee. Mr Acland’s address to the electoral committee indicated once again the progressive and realistic attitude of the Wool Board. If such an attitude had not been adopted in all the main producing countries early in the contest between wool and synthetic fibres, the Commonwealth today would lack important economic buttresses Traditionally, ' wool has been regarded as unusually sensitive to changes in the economic climate. There is reason for pleasure, therefore, in the soundness of the market for New Zealand wool during the last nine years. Since the abnormal conditions of 1951, annual earnings have been maintained within a surprisingly narrow yet satisfactory range. In the years from 1952 to 1960. inclusive, wool export values were respectively £81.9 million, £84.5 million, £88.4 million, £93.8 million, £91.5 million. £105.9 million, £BO.O million, £89.6 million, and £ 102.3 million. For the first nine months of last year the figure was £82.6 mil-

lion. In the long run, reasonable but stable auction prices for raw wool are best for all sections of the wool trade from primary producer to shopkeeper—because they foster an expanded demand and give least worry to the manufacturer in the planning of his output.

Nevertheless, incomplete statistics for 1961 discourage complacency among the woolgrowers. According to the Commonwealth Economic Committee, world wool consumption, at 1994 million lb (clean), differed little from the 1960 figure;, but without assistance from Japan the total would have; been 2 per cent, lower. Of! the non-Communist coun-! tries, Japan is now the: third largest consumer of’ virgin wool. Britain and the; United States occupy first: and second positions respec-i tively. In 1961, for the first time, Japan took second j place to Britain as the? largest producer of wool} tops and, outside the Com-i munist bloc, also became, the second largest producer of woven wool; fabrics. All this might be, well enough if the Com-! monwealth committee did! not add that in 1961 “ world j “output of rayon and! “ acetate reached record! “ levels ”.

Confronted with the con-, stant challenge of highlycompetitive and excellentlyorganised synthetics producers, woollen interests have no alternative to exploiting every legitimate device of marketing and scientific research. With the establishment at Lincoln of the Wool Research Organisation’s new laboratories, New Zealand will be better equipped to contribute to the solution of world wool problems. Because this organisation is financed jointly by the Government and the Wool Board, there will be an additional drain upon the board’s funds, already under pressure to maintain other useful services and the annual contributions to the International Wool Secretariat. As an insurance against future misfortunes, however, such expenditure may be even more beneficial than the accumulation of £33 million in reserves with which to back New Zealand’s floor price system.