Wool prices 'should stay high'

Press, 13 May 1987, Page 9

Wool prices 'should stay high'

Australia and New Zealand wool prices have risen to a new plateau in recent months and should remain high for the foreseeable future, said the chairman of the International Wool Secretariat and Australian Wool Corporation, Mr David Asimus, to the wool industry in Christchurch yesterday.

At a seminar to mark the beginning of the National Golden Fleece Exhibition, which is part of the “Accent on Wool” week in Christchurch, Mr Asimus said Australian wool auction prices had risen 30 per cent since last November.

In the last four years wool prices had risen an average of 8 per cent annually and over the last 13 years price rises had outpaced inflation, which was almost unique for a primary commodity. Mr Asimus claimed that

International Wool Secretariat promotion in the northern hemisphere, particularly with the very successful Woolmark symbol, was directly responsible for the healthy price rises for Australian and New Zealand woolgrowers.

Australia would contribute two-thirds bf the 1987-88 I.W.S. budget of sAust22o million, he said, helped considerably by a Government contribution of $36 million. As New Zealand’s share of the I.W.S. budget is declining, Mr Asimus appealed again to the. Government to contribute direct as did the Australian Government

“I hope, for the sake of the. New Zealand wool industry, that a New Zealand Government will come to recognise the benefits for your country from a vigorous, wellfunded international promotion,” he said.

Wool exports would earn Australia $4 billion this year and still represented one-tenth of export income. The Golden Fleece Exhibition was officially opened in Canterbury Court yesterday afternoon with the presentation of trophies to the growers of the two top fleeces — Mr lan Stevenson, of Rangiora, for the fine wool fleece, and Kereru station, near Hastings, for the strong wool section.

Garments from the I.W.S. Paris office collection were modelled, along with items from local manufacturers and retailers.

A good crowd attended both the wool seminar in the morning and the opening of the exhibition in the afternoon. The exhibition continues today from 10 a.m. to 5 pan. with fashion parades at 11.30 a.m. and 3 pjn.