‘False dawn’ on wool price gains

Press, Volume CXV, Issue 34013, 29 November 1975, Page 3

‘False dawn’ on wool price gains

'At'ic Zyolund Pros AsS'H’h! lI.XMILTO;\. November 28. Present trends and predictions of rising wool prices in New Zealand are "a bit of a false dawn,” according to a visiting International Wool Secretariat representative. Mr John W ilco\.

Mr Wilcox is the area director for North-west Europe. He discounted assertions that wool growers are once more heading for a price peak. “When 1 left the . United Kingdom three weeks and a half ago we of the I.W.S could not see any evidence of a real upturn in demand tn markets in the Northern Hemisphere.” he said. There was no sign yet of

• a movement out of .the 'worst recession for several years, although there were indications that the bottom of . this recession had been reached. The real resurgence tn demand for products such as :wool in the Northern HemiI sphere would come in autlumn, next year. 1 In the ease of the United ■ Kingdom — New Zealand’s > biggest market for wool — ptlie upturn would come in 1977, Mi Wilcox predicted. "What we're seeing now is the 'result of devaluation, r.a bit of topping up of wool stocks in the pipeline, and I the moving out of fine wools •into coarse wools by European mills, who are looking I tor ways to cut costs." I Mr .' Wilcox hammered I home a message to a group iif farmers at the WhalaI whata Hill Country Re- • search Centre that there is a definite future for wool. I "There is going to he a ■market lot the best — slightly bigger than there is 1; now — and it is going to ■increase gradually.’' He told farmers who , wanted to know what type lof wool they should be proiiducing that they should go Jon producing what was best .iloi New Zealand, and do it pas well as possible. I Oil prices had increased the production costs of syn.ithetic fibres, just as woo! .'production had been hit by ,isoaring costs. The fact that J wool had to go through so ,I many more steps than synpthetic fibres before it could’ compete side by side — and' I win — proved how good a ’’product wool was.