Wool payout to cost $86M?

Press, 22 October 1981, Page 20

Wool payout to cost $86M?

PA Wellington The Ministry of Agriculture expects wool prices to average only 290 c to 300 c a kilogram this season. 20c to 30c below the Government’s guaranteed minimum price. The Ministry’s latest report on agriculture said a big Government payout would be needed under the minimum price scheme over the first half of the season.

It does not say how much the payout would be if its price prediction is right, but a Wool Board spokesman said an average price of 295 c would cost the Government about $B6 million in supplementary payments. The Government pitched this season's supplementary

minimum price at 320 c a kilogram. This was a huge rise on the previous season’s supplement of 235 c. It was also far higher than the average price for wool sold at auction last season, which was less than 250 c. The Wool Board, which runs its own, separate, minimum price scheme, sets its minimum price this season at 250 c. The outlook for wool prices is moderately favourable, says the report, published in the latest issue of the Ministry’s magazine, the “Agricultural Economist.” Prices were expected to rise slowly during the second half of 1981 and more quickly in the first half of 1982.