Wool Supplementary To Stay, But Floor Lower

Press, Volume CVIII, Issue 31772, 31 August 1968, Page 1

Wool Supplementary To Stay, But Floor Lower

The W 00l Commission will continue to make supplementary payments to growers, but on the basis of a lower floor price.

The new floor price for growers will be 22|c per lb. This is 2fc lower than last season’s floor price, but it is only Ic, or 4 per cent, below the average appraised value of the clip last season.

Under the new floor price, the commission’s valuations will give relatively greater support to finer wools and to shorter wools.

This policy for 196869 was announced by the commission yesterday, according to the New Zealand Press Association.

“The commission’s valuations last season resulted in an average appraised value for the clip of 23 |c,” said the chairman, Mr E. L. Greensmith.

“This result, which was announced last week, reflected the further coarsening of the wool clip. In the coming season, the ‘target’ average will be 22}c —a reduction of 4 per cent from the actual average of the last season.

“For 1968-69 we expect the

appraised average to be very close to the target average,” said Mr Greensmith. “The result wiU depend on the pattern of production. Last year the target was assessed on the average production pattern over the previous five years. But the pattern is changing and this season we shall be using for assessment of the target the 1966-67 season's production figures, which are the latest available.” The commission places two valuations on every lot of wool offered at auction. The valuation at which it will buy the wool at auction is based on an over-aU average of 16}c. It was announced in July that this will continue

until the end of the winter sales in August, 1969. The valuation for the grower’s floor price will be based on an average of 22 jc. When the market fails to reach the grower’s floor price, the commission will pay a supplement, as it did last season. , In 1967-68 supplements were paid on half the offering at an average of 3c per lb,

or IJc over-all. The total cost was sB.sm. Mr Greensmith confirmed that the commission would be offering at New Zealand auctions before Christmas 76,000 bales of stockpiled wool. Total offerings of stockpiled wool for the season, he said, were intended to be 100,000 bales. Every care would be taken that the market was not depressed by these wools.