Farmer Criticises Wool Auctions

Press, Volume CIV, Issue 30737, 29 April 1965, Page 18

Farmer Criticises Wool Auctions

The present system of wool auctions in. New Zealand was criticised by Mr S. A. Uren (Omihi) at a meeting of the executive of North Canterbury Federated Farmers yesterday. It was not a system but rather something which just happened along the way. said Mr Uren. A much better system would include a negotiated price. He considered the violent fluctuations in the price of wool were in themselves a condemnation of the present system. “I am not happy after putting in a year’s work to produce the goods to see them end up offered for sale on a what-will • you-give-me-for-this basis,” said Mr Uren, who added that he was not alone in his attitude to the present system. “I want a negotiated price system,” he said. New Zealand was not sufficiently considering the people to whom it sold its wool. There was insufficient liaison between the producers and the buyers. “I am sure we can get something better than the present system. One with a negotiated price would do away with the need for a farm equalisation scheme,” said Mr Uren. The president (Mr R. W. Bedford) said that New Zealand’s wool was sold to countries all over the world, and it would be very difficult to negotiate with them all. Records he had kept showed that, in spite of price fluctuations. there had on average over the last 10 years been about 8s difference in the price of a wool bale. It would be very difficult

to set a price. “Unless you have an auction system you will never get a value set for your wool,” he said. Survey By Board Mr W. N. Dunlop said that the Wool Board had already set up a committee to carry out a survey, more or less along the lines suggested by Mr Uren. No quick results could be expected, however. The committee’s work would include a continuous study of world wool marketing systems. It would cover all existing world auction systems, proposed systems, and substitutes. Mr H. Hollis said that wool was a world commodity, and as such it was difficult to administer. He praised the Wool Board for its efforts in getting the industry organised. Mr Bedford said that wool was also politics. “There is a country in South America, we won’t name it, which is sitting on a million bales of wool that it is ready to dump. And the rest of the world’s wool producers know this. Now, how can you negotiate with a country like that?” he said.