Soviet tops list of N.Z. wool buyers

Press, 11 June 1980, Page 23

Soviet tops list of N.Z. wool buyers

The Soviet Union was now the biggest single ' buyer of New Zealand ! wool, the chairman of the | Wool Board, Mr J. Clarke, \ told the plenary session-of ■ the conference of. the I International Wool Textile i Organisation in Monaco. He said that for the first time since,New Zealand began exporting in the mid 1800 s, Britain had lost its traditional place as this country’s biggest customer. The Soviet Union, to the end of March, had 33,000 tonnes exported to it compared with 21,000 tonnes to Britain. “This is a reflection of what is happening in the world’s wool textile industry,” Mr Clarke said. “The emphasis has ■ swung towards the lower j cost countries of South- ' East' Asia and Eastern I Europe and that swing j shows no sign of abating.” i In a. report to the sta- | tistical committee of the I organisation, the deputy I managing director of the ; board, Mr N. Thomas, said I that Eastern European countries, including the ‘I Soviet Union. now ■ accounted for about 22 per j cent of New Zealand’s | total wool exports. Outside Eastern Europe,

he said, there had been significant increases in exports to France (up 5558 tonnes), Iran (up 4157 tonnes), China (up 2500 tonnes), and Italy (up 1885 tonnes). Over the . same eightmonth period to the end of February this year, Mr Thomas said, exports to E.E.C. countries had totalled 74,971 tonnes, compared with 71,742 tonnes in 1978-79. Purchases by Japan . and (Britain had declined about 5300 tonnes and 4600 tonnes respectively. -. • Mr Clarke, who was making his last address to the organisation as chairman of the board, said that export proceeds from wool this season would be a record at more than $9OO million, compared with $750 million last season. Production would be up by about 30,000 tonnes on last season to .a record of more than 350,000 tonnes and sheep numbers had also risen to a record estimated at 65 million he said.

But while growers had had reasonable returns this season — the average price for the season up to the end of May was about 268 c a kilogram, which

was some 23 per cent higher than at the con esponding time last year — they had had to contend with big increases in overheads in the order- of 20 per cent. Oil prices .were a big factor but fertiliser price increases had also had. a significant impact. On cost saving in the industry,. Mr. Clarke said that one area where significant progress had been made was in the development of higher density dump presses which, when working fully later in the year,-would trim about $4 million off New Zealand’s annual freight bill to Europe. Concessions had also been negotiated with the lines serving Hong Kong, Taiwan, and South Korea. Mr Thomas said that 13 high density dump presses were now 'being installed and should be in use by the end of this year. It would then be possible to deliver 90 bales (45 double dumps) in a standard international container instead of 56 bales using the existing machinery. Scientific tests showed that New Zealand wool did not suffer any fibre damage at the new density, nOr were there any additional problems with opening: ■ ■ ,