Wool trigger now 300c

Press, 18 July 1979, Page 3

Wool trigger now 300c

The trigger price for wool, in the new selling season, which will begin next ; month, has been increased to 1 300 c a kilogram. The new figure was an-i nounced yesterday by the 1 Minister of Agriculture (Mr Maclntyre). This is an average price.’ Should wool at auction ex- i ceed that level, a part of j growers' returns will be skimmed off into individual! accounts established for them at the Reserve Bank. In the season which has just ended the trigger level was 250 c. When it was set about a (year go, it was never ; dreamed that wool values

w'ould reach that level dur-II ing the season, but they did|< ifor a brief period. ji It would seetn most un- s ; likely that the new trigger i i will be reached in the com- ' ing season. The aw’asp (aver- 1 I age weighted average sale 1 i price) on which a retention t I from growers’ returns would i (be based has lately been > (about 230 c a kilogram. Growers will naturally be ! (pleased that the trigger level (has been pushed well out in (front of the market. They ( : have no wish to see a part |of their returns removed , :from them even if. as in the I case of meat, it will ultimately come back to them. I Whereas the trigger price 1

has been raised by 20 per: cent, the Wool Board's minimum price for the new sea-; son has been increased by| not quite 18 per cent, from; 170 c to 200 c, but this is! largely an academic price these days as the Government has already guaranteed a minimum level of 235 c in the Budget, below which growers’ returns will not fall. At least as far as wool is concerned growers can face the new season which will open with the combined Dunedin-Invercargill sale on August 17, with some confidence.