Wool marketing co-op. had a good year

Press, 29 November 1976, Page 25

Wool marketing co-op. had a good year

In the year to August 31 the New Zealand Cooperative Wool Marketing Association had its second highest profit at $623,937, according to its chairman, Mr H. W. Upton, Sales for the year, at $31,456,640, were 85 per cent higher than in the previous season, reflecting both an increased volume of wool handled and also higher values. Mr Upton says that a refund of the full 10 per cent of valuation deduction has been authorised and in addition the board of the association had approved the payment of a further 2c per kilogram on wool sold during the season, being a share of the surplus earned.

The 2c payment was equal to about $3.10 on an average weight bale and represented a return of 17 per cent on the standard shareholding of $18.60 required on such a bale. Although the directors were “very’ mindful of the excessive deductions now being taken from wool payments to growers,” he said it was proposed to continue the 10 per cent of valuation deduction in the new season. It would assist considerably in financing wool stocks at peak periods and reduce

dependence on bank accommodation. During the last season, Mr Upton said, the association had been joined by 566 new suppliers, and as well a number of shareholders who had not supplied the association for some time had resugied supplying them. “It is patently obvious that a large number of growers are far from happy with the determined efforts now in train to place the internal handling of the New Zealand wool clip under the control of commercial monopolies,’’ he said.

Ninety-five per cent of the association’s throughSut of more than 100,000 ales was sold in the scoured state. This compared with the national average of 46 per cent. Wool scouring, which was conducted on a costplus basis, was a profitable business, said Mr Upton, and it was unfortunate that only 15 per cent of the scour facilities in the country were controlled by growers.

All the indications were that wool scouring would increase and that ultimately about 80 per cent of the clip would be handled in this way was a fair estimate. This meant that

eventually an additional 600,000 bales could be scoured in New Zealand, which would earn more than SIOM additional foreign currency. But a problem which needed very careful attention was the manner in which primary processing was being saddled with an inequitable share of cost increases, and if this continued it could result in local scourers not being competitive with their overseas counterparts. Effluent discharge levies, water supplies, electricity, interest and other local costs continued to rise at an alarming rate.