Stockpile Sale May Be Slower

Press, Volume CX, Issue 32385, 26 August 1970, Page 26

Stockpile Sale May Be Slower

(New Zealand Press Association) WELLINGTON, August 25. Although half of the Wool Commission’s stock had been sold in a little over two years, it might be unwise to expect that the remaining half could be sold within any similar short period without disturbing the market for new wool, the chairman of the commission (Mr E. L. Greensmith) told the electoral committee of the Wool Board today.

He said the demand for the first half of the stock was -sustained by the reduction in the inventories of New Zealand wools in consumer countries during 1967 and 1968. “With that factor gone it seems that a slower rate of disposal may have to be expected,” he said. A great deal would depend on economic developments in consuming countries, upon the success of promotion efforts, and on the weather in producing areas affecting the quantities of new wool sold. Sales of stock wool during the last year had enabled the number of stores required in New Zealand to be reduced from 162 at the beginning of the season to 93 at the end of June.

By relinquishing the more expensive stores wherever

possible the average storage cost rate had been reduced from 3c to 2.9 c a bale a week. Of the 93 stores in use seven were owned by the commission, 17 were woolbrokers’ stores and the remaining 69 were leased. Almost 47 per cent of the stock wool was now housed in com-mission-owned stores, he said. One of the commission’s stores was sold at Napier during the year in terms of a sale and purchase agreement entered into when the store was built Two other stores, one at Timaru and one at Wanganui, would be similarly sold in November this year and November 1971, respectively. In the last two years private selling had developed strongly and during 1969-70 it had reached new high levels. Of the 1,798,891 bales of wool sold, 283,949 were sold privately in New Zealand, 52,383 were growers’ shipments sold at London auctions, and 1,462,559 bales at New Zealand auctions, he said.

For some time the commission had been considering thr minimum prices for the coming season. X making its decision the commission would have tn take into account the statutory criteria which basically related to trends and prospects in the international markets, Mr Greensmith said. It was also related to the amount of available financial resources of the commission, the production of wool in New Zealand, and the views of the Wool Board. Mr Greensmith said it was expected that an announcement would be made early next month before the main sales of the new season.