N.Z. Dependence On Carpet Trade

Press, Volume CVI, Issue 31333, 1 April 1967, Page 10

N.Z. Dependence On Carpet Trade

In the current price slump situation, one worrying aspect of New Zealand’s wool-trading position has been brought sharply into focus —its degree of dependence on an expanding future in the carpet markets of the handful of countries which buy 75 per cent of its wool.

This is a market being pinched hard by the economic squeeze, and also the market under greatest pressure from competitive synthetic fibres even at the best of buoyant buying times. Obviously wool is going to be pushed even harder by the recent 15 per cent cut in the price of nylon staple fibre. In the United States, well over three-quarters of New Zealand wool imports are reckoned to be going into carpets, and about half in Britain and the Common Market With so many eggs in one basket would not the answer be to divert some wools to textile uses other than carpets?

The truth Is that the woolgrower has no real say in how and where his wool will be used. While some wools have fairly clearly defined textile uses, a big proportion is used in an infinite variety of blends with other wools and with synthetic fibres. Wool is bought by the textile industry for the qualities —and price—which best fit it for the processing and production of goods ordered by

manufacturers and the retail trade, according to their needs and the consumer demand. What is more, the pattern of demand for different wool products varies from country to country. So where, and how, does the woolgrower begin to select his market outlets? A look at the main uses of New Zealand wools in Britain serves to emphasise the grower's stake in the carpet market and the impracticability of diversifying even in this, our biggest and most diverse market. The following table takes into account only strong crossbred wools—nearly 70 per cent of the production—which are those worst hit by the price slump:

Carpets: Over a three-year period, total wool consumption has remained at about 83 million lb, with New Zealand maintaining a steady 25 per eent of wool’s share of the market

On the other hand, the use of synthetic fibres has doubled

from 13 to 27 million lb, to suppress New Zealand’s 15

per cent share of all fibres used, although a sizeable proportion of synthetics go into cheap tufted carpets. Wool has never been in this end of the market Apparel Cloth: Next to carpets, apparel is the biggest and most encouraging outlet for expansion, although predominantly for wools of 50s and finer. New Zealand wools of this quality, about 30 per cent of the clip, have a reasonably secure market here. Some crossbreds are used in wonted

cloths, mostly blended with finer wools, but the greater proportion goes into such woollens as men’s and women’s coating fabrics, tweeds and other heavy materials. Blankets: With a 16 per cent share of the market, this is one of the more important outlets for New Zealand wools —and also one under strong pressure from synthetic fibres. Handknitting Tarns: Though New Zealand wool represents nearly 60 per cent of all coarse crossbred wools used, this market belongs very largely to the finer wools—which bear the brunt also of increasingly strong competition from synthetic fibres. Knitwear: Most knitwear and hosiery is produced from finer wools, and any significant advance for New Zealand wools seems unlikely in the face of the current trend to finer, soft-handling fabrics. But this is the fastest-growing market for wool, and the most versatile. There are hopeful prospects in such developments as the use of knitted fabrics for men’s suiting and sportswear.

Furnishing fabrics: The i traditional pile upholstery ■ fabrics are a stronghold for 1 New Zealand crossbreds, but : production is declining with > the rise in popularity of flat woven fabrics for fprnishng

—a field in which synthetics have gained a big hold. Wool continues to hold its own against synthetics in pile fabrics, but this is a dwindling present trends can be turned. Felts: Both woven and pressed felts are a small but fairly secure market for coarse crossbreds, and synthetics are not a serious competitor in this market. In assessing the wider outlook, there are other things than bare market facts to be considered. Such things as the many market forces which can motivate the sale of wool throughout the world —new fashions; changing patterns of living; rising populations and living standards; advances in research, technology and textile processing which are producing new and wider uses for wool. Through the International Wool Secretariat’s stepped-up research and promotional efforts in more than 20 major wool-consuming countries, the woolgrower is now exerting a powerful direct longterm influence on the demand for pure wool products, and indirectly on the wool content of mixtures. In New Zealand and in I.W.S. laboratories and pilot plants around the world, coordinated research and technical work is developing new processes and techniques which will Improve the performance and competitive ability of crossbred wools in carpets and other important uses. Woolmark promotion of carpets is enlarging wool’s potential in such vast markets as the United States, Britain and Europe. In less than 18 months in Europe alone, 87 manufacturers have been licensed to produce Woolmark carpets. We have a strong crossbred interest here. Given an upturn in the economic climate, there is confidence throughout the wool trade here that the woolgrower will once again get a satisfactory price for his product

In the accompanying article William Riley, who is with the International Wool Secretariat in London, examines the extent of New Zealand's dependence on the carpet market, an important factor in this country’s present wool trading difficulties.

USE OF N.Z. STRONG CROSSBREDS IN U.K. (A rough estimate for the U.K. wool textile industry in 1965.) How it was Our share of Our share split among crossbred of all end uses wools used fibres used

100 * The apparel total appears relatively low because this table does not take into account New Zealand’s important medium/fine wools. A brief examination of the main sectors of the United Kingdom wool textile industry gives this picture of the place and prospect of New Zealand wools here:

% % % Carpets 56 27 13 Blankets 12 62 16 •Apparel 10 11 2 Handknitting yarns 10 57 9 Knitwear 4 50 2 Furnishing fabrics 4 40 25 Felts . * 4 66 25 '•