Wool Bd endorses centralised selling

Press, 19 May 1984, Page 6

Wool Bd endorses centralised selling

The decision by the wool auction sales committee to proceed in the 1984-85 season to a new auction sales format has been endorsed by the Wool Board. The new format will mean centralisation of North Eland selling for Wellington, Auckland and Wanganui wool, and Napier from the start of the season, and centralisation of South Eland selling to ChrEtchurch, for Christchurch, Timaru and Invercargill wooE, and Dunedin from late January, 1985. The chairman of the Wool Board, Mr Doug Mcllraith, said that the wool industry has been discussing for some time ways of streamlining the wool auction system to cope with the increased production over recent years and to offer increased selling opportunities to woolgrowers. “Centralisation of selling centres E seen as the means by which thE can be achieved,” he said. “The aim of the industry is eventually to reduce the number of selling centres to , one in each island.” Mr Mcllraith emphasised that this move did not affect the physical handling and

warehousing of the wool itself, but referred only to the actual wool auction sales.

“While this move meeE with the general approval of woolgrowers throughout New Zealand, concern has been expressed by Otago woolgrower representatives that the 1984-85 South Eland proposaE could be detrimental to their interesE,” said Mr Mcllraith.

“Before making its decision the Wool Board met a delegation of Otago woolgrowers. Following this meeting the board weighed up their views and examined the alternatives. “However, it E still believed it is in the over-all interesE of New Zealand woolgrowers to move now to adopt this new format of selling as a first step towards the ultimate goal of sale by description,” he said.

“The board does, however, strongly urge the wool industry to move as quickly as possible towards single selling centres in both the North and South Islands. "It E believed that this can be achieved relatively quickly in the South Eland, however logistical factors could Eke a little longer to resolve in the North Eland,” said Mr Mcllraith. Mr Mcllraith said that the board saw the over-all advantages to the woolgrower and the wool industry as a whole as warranting this step. “The board supporE these moves because of the benefiE to the grower from greater selling frequency, quicker payment and smoother wool flow,” said Mr Mcllraith. "Also we must remember that at present brokers, scourers and everyone else in the industry handling raw

wool are all geared to meet the current production peaks. “Anything that smooths the wool through the system benefiE all parties, from the shearing contractor to the shipping lines. Better use of labour and overheads should help hold cosE for the farmer as well,” he said. The Woolbrokers’ Association has welcomed the decision.

The general manager of the association, Mr John Malyon, said that the decision was made possible by the woolbrokers withdrawing their application for a 51c per bale increase in delivery charge to offset the cost involved in implementing the change. Timing constrainE in hearing the application would have delayed the introduction of the new system.

“The time constrainE imposed by buyers physically moving their appraisal and buying team from centre-to-centre has until now made it impossible to increase the frequency of sales,” Mr Malyon said.

“Under this system the wool comes to the buyer, rather than the buyer to the wool, providing the opportunity for a weekly sale in each island.” Substantial savings would accrue to growers as a result, Mr Malyon said. “Several million dollars in interest alone will be saved on behalf of wool growers through the reduction between the time wool is received into the store until the time it is sold.

“In every selling centre all wool will be sold by sample and test certificate, thereby meeting the requiremenE of the international market.