Argentina shows interest in I.W.S.

Press, 23 January 1984, Page 4

Argentina shows interest in I.W.S.

By

NZPA staff

correspondent London Argentina’s new Government is interested in the possibility of joining the International Wool Secretariat. “We would love to have them in,” the I.W.S. chairman, Mr David Asimus, has told NZPA. An approach, which Mr Asimus described as “very encouraging,” had been made to the I.W.S. New York office by an Argentinian official.

Argentina is the third biggest exporter of wool, after Australia and New Zealand, but it has never belonged to the 1.W.5., founded in 1937, which is funded by the woolgrowers of New Zealand, Australia, South Africa and Uruguay. Mr Asimus, who is also chairman of the Australian Wool Corporation, said that the I.W.S. was providing the Argentinians with information on the organisation, which has its headquarters in London, and was keen to see the approach followed

up. There has been contact with Argentinian growers, but they have been worried about Government interference.

A lot of Argentine wool is exported to the United Kingdom and western Europe.

Sales to Britain were suspended for about six months after the Falklands war, but wool continued to come in through other countries. Brazilian growers have been interested in joining the 1.W.5., but the problem has been that the Brazilian Government would not let them remit funds for the I.W.S. budget, now about ?USIOO million.

Argentine membership would mean an extra source of funds to help promote the demand for wool. New Zealand reduced its contribution to the budget by about a third last year.

Mr Asimus said that recent legislation and an increase in the growers’ levy

should mean New Zealand would be back close to its full share in a couple of years. The New Zealand Wool Board was well aware that there had been a significant reduction in the I.W.S. work because of the cut.

Dr John McPhee, newlyappointed managing director of 1.W.5., said he was pleased that the New Zealand Wool Board had attacked the problem so quickly and aggressively. Mr Asimus said he thought an increase in the I.W.S. budget would be worth while, but it was difficult to convince his colleagues — and growers.

“I believe the current budget is adequate and big enough to be effective,” he said.

Dr McPhee, an Australian who joined the I.W.S. 17 years ago as a scientist and technologist and had been deputy managing director since 1978, took over the top job at the beginning of this year.

Speaking to journalists yesterday, he said wool had performed well in the difficult market situation of the last few years and this was cause for confidence.

Wool prices in 1983, in real terms to growers, were reasonably comparable with those prevailing in 1978, while the real prices for synthetic fibres were generally lower. Cotton prices in real terms were lower in 1983. Wool had been able to maintain its market share during this period of fibre price cutting and weak selling.

In important product areas such as men’s suits and men’s knitwear, wool had increased its market share from 54 to 60 per cent and from 33 to 38 per cent. In the growth area of tufted carpets wool’s usage had increased by more than two thirds. Dr McPhee warned that wool continued to face fierce competition from synthetic fibre producers. The I.W.S. had to become much more flexible and en-

trepreneuriai and develop new products top meet competition. It had to encourage more use of wool in the 25 to 40 age bracket, and there was a need to increase wool’s share of casual clothing. Dr McPhee said he had reorganised the I.W.S. central marketing, fashion styling and technical services and programmes into one department which would be located largely at the I.W.S. technical development centre at Ilkley, Yorkshire. He had also decided there should be a co-ordinated multinational approach to wool promotion programmes. Mr Egon Kolsch, formerly I.W.S. area director for western Europe, had been appointed director of international marketing to develop this approach. “More narrowly targeted promotion aimed at growth segments of the market and involving new and exciting wool products, supported by fully co-ordinated multinaional marketing, will be the new emphasis in the I.W.S. approach,” Dr McPhee said. The chairman of the New Zealand Wool Board, Mr Doug Mcllraith, has welcomed news of an Argentinian approach to join the International Wool Secretariat.

If Argentina did join, it would make a big difference to the funding of the secretariat, and would reduce the burden on other member countries, he said. Mr Mcllraith said it was also encouraging that Argentina saw the I.W.S. as such a successful promoter of wool that it wanted to join, but he said that Argentina faced a number of problems in the organisation which it would have to overcome before it could join.

One of these was the fact that there was no grower organisation in Argentina and no single organisation which would collect a levy from growers.