U.S. Wool Decline Again Predicted

Press, Volume CVI, Issue 31305, 27 February 1967, Page 13

U.S. Wool Decline Again Predicted

(N.Z. Press Assn.—Copyright)

WASHINGTON, February 26.

The Agriculture Department predicted yesterday that United States wool production would continue to decline this year.

Production was 250 million pounds weight last year, which was down about 20 pei cent from the 1956-60 average. During this same period, world production increased 10 per cent.

The U.S. output has been declining in spite of a Government wool incentive payment programme designed to

encourage more production and to lessen American dependence on imports. The forecast of a further drop in production was based largely on figures showing, that the total number of stock sheep and lambs in the nation’s flock was 4 per cent smaller than a year ago. Labour and other problems, including some dissatisfaction with returns, are contributing to this decline.

The department said that in spite of recent strengthening, U.S. wool prices probably would average lower this year than in 1966. This reflected the Increased competition from lower prices of man-made fibres and a lower level of wcr'.fi wool prices.