Costs Problems For Wool Producers

Press, Volume CIX, Issue 31942, 20 March 1969, Page 14

Costs Problems For Wool Producers

The only way farmers could improve their position in a wool market in which the price for wool had become tied to the price for synthetic fibres was by more efficient production and the containing of transport costs, Mr B. H. Palmer, vice-chairman of the meat and wool section executive of North Canterbury Federated Farmers, said at a meeting of the executive today.

In giving a summary of the report by a committee of the Wool Board on wool flow in New Zealand ports, Mr Palmer said the industry had fallen behind in the area of transport between the woolbroker’s floor and the ship's side. Much work had to be done and much capital expended before the board could match the 48 per cent increased wool production of the last 10 years with improved handling. Handling Rates

the Lyttelton Harbour Board (Mr F. I. Sutton) in which he said that wherever possible wool was now being assembled at Cashin Quay by the shipping companies in accordance with the recommendations of the wool flow committee.

“To encourage the preassembly of wool the board makes no charge to shipping companies for space made available in Cashin Quay transit sheds for this purpose,” the letter said. “Through this pre-assembly and with the unitisation of wool there has been a marked improvement in loading rates at Cashin Quay. Example Given

Mr Palmer said the handling rate for the port of Timaru had increased, but in every other New Zealand port the rate had fallen badly, particularly in Lyttelton and Wellington. The gross loading rate at Lyttelton at March 31, 1954, had been 58 bales an hour and 638 bales a day, compared with 48 bales and 480 bales at March 31, 1966. This represented a drop of 17.24 per cent an hour and 24.76 per cent a day. The daily rate for Wellington also had fallen 24 per cent, for Bluff 10 per cent, and for Auckland 19 per cent. This was in part attributable to the availability of dumping stores, storage at the wharf side and access. The internal cost of transporting wool in New Zealand was about $3.5m and the cost of moving wool to the manufacturer about s9om. “A lot of this can be recouped with better handling,’ Mr Palmer said. He said the committee’s recommendations were for dense baling, high-density dumping, container shipping, and a wool village or area where the wool-handling facilities were concentrated as much as possible. Mr W. N. Dunlop, the provincial president, said there had already been a big improvement in handling at Lyttelton, and referred to a letter from the chairman of

“As an example, the vessel Luka Botic loaded 4533 bales of dumped wool ex transit shed at Cashin Quay at a net loading rate of 150 bales a gang an hour, compared with the last published port average of 126 bales a gang an hour.

“While this loading rate may not be possible in cases where there are smaller consignments or where the wool is loaded into awkward spaces, without doubt even higher loading rates can be achieved if larger shipments are handled through Cashin Quay. “The factor which will encourage the pre-assembly of wool at Cashin Quay is the recent announcement by the overseas shipping companies that from March 24 the wharfhandling charge on wool handled through transit sheds at Cashin Quay is reduced from 25c to 18c a bale. At the same time a slight increase from 17c to 18c a bale was announced for wool delivered ex rail or motor lorry to the ships’ side,” the letter said.