“Realistic Wool Trading Returns”

Press, Volume CVI, Issue 31161, 10 September 1966, Page 19

“Realistic Wool Trading Returns”

The last wool season had brought into sharp perspective the relationship between values for wool and for synthetic fibres, said Mr H. J. Dewe, president of the Federation of New Zealand Wool Merchants, at its annual conference at Hanmer Springs.

"The 1964-1965 season was one of consolidation,’’ said Mr Dewe. “It was a season of readjustment, not altogether painless, but certainly a necessary return to realistic trading after the highly disturbing and barely rational conditions of 1963-1964. “However the last season had high-lighted the very factual relationship between wool values and synthetic fibre values. This, from the wool point of view, was a rather sorry state of affairs "Wool growers must appreciate that the cost and production of rival man-made fibres can be regulated to undercut wool values.” said Mr Dewe. “The efficiency of synthetic production is such that they are cheaper to produce than wool. Basically, this is the reason why manmade fibres are making such tremendous progress. “But, the point is whether such a close identity of price relationship should exist “In wool we have a fibre so complex, so delicately conceived and manufactured by the sheep that man has been unable to imitate it. "Because of its pre-eminent and comprehensive properties, wool probably cannot

is |be replaced by man-made d fibres in many fields of use. if With increasing world popu•r lation and levels of prosperity, a these unique fields could ,c absorb the entire wool clip s- in the not too distant future, d In this case, wool could become more and more of a n luxury fibre, to the marked y advantage of our most imperil tant industry.” c Mr Dewe said that the cone tribution of the Woolmark a symbol to the profitability of s. wool growing might be so e- great that wool values could > cease to be hinged to the e whims of the synthetic manuo I facturer.” If production, d marketing and over-all promotion was efficient, wool as h a textile fibre could cease to > be related to what was essenf, tially a poor imitation. j. Test of Efficiency h “In New Zealand, the cost structure of our production •r is perhaps the greatest test e of our efficiency. Unfortunately. the grower is In the e position where he is quite y unable to protect himself d against rising costs. However. 18 the Woolmark may well lt become symbolic of a new r. and vastly more profitable it era for wool,” Mr Dewe said.