U.K. Board’s Comment On Sale Of N.Z. Wool

Press, Volume CVI, Issue 31362, 6 May 1967, Page 10

U.K. Board’s Comment On Sale Of N.Z. Wool

“The New Zealand floor price, of course, is Is per lb or 25 per cent less than we are paying British producers for fleece wools,” says the chairman of the British Wool Marketing Board in a statement accompanying the 1967 wool price schedule for British growers—these growers are paid a set price by the board which sells the wool at auction.

“Trading conditions In the world market have been extremely difficult during the last 12 months,” says the statement. “While sales of British wools have not suffered too badly in comparison with some, we have had to withdraw considerable quantities that did not reach the reserve price at auction. At the time of writing—about two-thirds of the way through the current selling season—we are carrying 12m lb more of unsold stocks than at the corresponding time last year. Our average realised price

for wools sold to date is 5d a lb down on last year.

“In New Zealand the position is much worse. There the Wool Commission has bought in at the auctions more than 100 m lb of wool at the seasonal floor price of 36d a lb. This is much more than the weight of our total United Kingdom clip—and the commission is still buying heavily. The New Zealand floor price, of course, is Is per lb or 25 per cent less than we are paying British producers for fleece wools.

“Of the various factors that have influenced the wool market over the last year, the United Kingdom economic situation has probably had the greatest effect Dear money and credit restrictions have caused stock reductions at all stages right through to textile retailers. Then, there was a sudden influx of cheap South American wools, due to changes in currency conversion rates. Carpet wools have also had to face severe price cutting of competing nylon fibre.

“Through their centrally organised marketing system and with the support of the Government guarantee which is unchanged for the coming year—British producers are insulated from the short term, damaging effects

of a falling market But the carrying of larger stocks for longer periods inevitably Imposes a burden of extra costs on the board. We are therefore seeking all possible economies in other directions to keep marketing costs down to a minimum.

“In the coming season we hoped to achieve a more even flow of wool from farm to warehouse by offering attractive financial incentives to producers whose clips are delivered between August 22 and October 31.. ..” (briefly anyone sending in his clip between August 22 and October 31 will have interest added to the value of his wool at the rate of 8 per cent a year, back dated >to June 30 and paid right up to the date of payment by the board, or November 14).

“The board is also trying to develop new outlets for certain types of British wools for which demand is at present limited. We have arranged for the design and production in commercial quantities of cloths made from Swaledale, Herdwick, Wensleydale and other wools which have hitherto been used mainly for carpets and furnishing fabrics. These new cloths will be featured at fashion shows and other promotions during the next few months. . . .”