Return From Wool “Still Inadequate”

Press, Volume CIX, Issue 31926, 1 March 1969, Page 44

Return From Wool “Still Inadequate”

(New Zealand Press Association) WELLINGTON, February 28. Wool prices were still well below an adequate return to producers, the chairman of the Dominion Meat and Wool Council of Federated Farmers (Mr F. G. Spackman) said today.

“Because this season’s sales have been an improvement on the last the impression has been created that wool is over its difficulties,” said Mr Spackman. “This impression is quite erroneous. The average price for wool will have to rise to about 35c a pound—a rise of 20 per cent—before it yields a reasonable return to grower “oniy those producers who are well established and have a large equity in their properties can at present face current prices with any degree of ease. Unfortunately recently settled farmers, and farmers who have been encouraged to embark on large development programmes, are struggling to maintain themselves,” said Mr Spackman.

“In the 1963-64 season prices for greasy wool aver-

aged 45.9 c a pound at auction, in 1967-68 the average price was 22.9 c a pound. Any improvement this season should be viewed in the context that in 1967-68 prices had reached the lowest point since 1948-49 and, if adjusted for inflation and devaluation, the 1967-68 price would be well below the 1948-49 level.”

Percentage increases based on such a low level could sound misleadingly high. “Growers cannot hope that prices will reach the 1963-64 level even with our present devalued curency,” said Mr Spackman. “They certainly hope, however, that prices will rise above the present levels to give them something approaching an economic return. Unless prices improve significantly many sheepfarmers throughout New Zealand will continue to face serious economic difficulties.”