Cost of selling wool soars

Press, 24 March 1977, Page 2

Cost of selling wool soars

Wellington reporter Woo l-marketing costs have risen 89 per cent in the last two years, according to the chairman of the Wool board (Mr John Clarke). He told the board’s halfyearly meeting with its electoral college that transport to store had gone up 55 per cent in two years, insurance 80' per cent, and brokers’ charges were up 28 per cent. These were all costs borne by the grower, but the grower also eventually incurred the subsequent costs borne by the buyer. Brokers' delivery charges had risen 27, per cent in the two years, and pre-shipmen t charges were up 260 per cent. Die biggest item was overseas freight. Mr Clarke said. It comprised about 40 pec cent of the total costs between farm and mill, and it had increased in the last two years by just over 100 per cent. This figure included the basic rate, currency surcharges, and bunkering. Marine insurance was up 120 per cent, and delivery charges from port to mill had nsen 55 per cent. “Over-all, the cost of moving a bale of wool from the farm to the other side of the world has risen from $36 in January, 1975, to $70.70 in January this year,” he said. “This is an increase

of about 95 per cent in two' ! years.” s This figure of 95 per cent! ;I included the Wool Board! j.levy, which had been $10.49 i I on an average bale this season. It was a percentage of . gross value, and would fall .lit prices tell. tj "If the levy is taken out r of thfe reckoning, the gftwth e of these marketing costs is i’ still 89 per cent,” Mr Clark . said. “This is the sort of ine crease that will kill an iri- . dustry, no matter how great ' and well-founded. ’ "Inflation affects wool j prices as well as shipping ’ and insurance costs, but not ™ to the same extent.” t