More sales of Chilean wool

Press, 18 March 1988, Page 14

More sales of Chilean wool

The sale of Chilean wool through the New Tealand auction system boks set to become a monthly event, in spite of staunch opposition from the New Zealand Wool Board.

j The company behind the sales, South American Wool Marketing, Ltd, Ss dealing in relatively (smalflamounts of Chilean Corriedale wool, but the Wool Board insists if the sales continue New Zealand growers will suffer.

A director of the company, Mr lan Morrison, said 3200 bales had already been sold at two separate auctions, fetching prices “comparable” to the New Zealand product. The next sale is planned for Napier on April 9, the day after an auction rostered by the board.

The company has defended the sales, saying Chilean wool traditionally undersold New 'Zealand wool. By channelling it through the New. Zealand auction system a “weak seller” was being removed from the international market.

Mr Morrison said the increase in the price of Chilean wool from between SUSI.2O and SUSI.6O last year Ito SUS2.9O this year vindicated the company’s actions.

But the board’s managing director, Mr Bernie Knowles, said continued sales of the wool will encourage other South American growers to increase production, which would depress world prices.

The board and Corriedale growers have also accused the Chileans of “free loading” on New Zealand growers because Chile, like most other South American countries, does not pay levies to the International Wool Secretariat.

Mr Morrison said the company recognised that concern, and had offered to pay a levy to the board, and assist in selling the concept of the I.W.S. to South American growers. But Mr Knowles said the company’s offer of a 1.5 per cent levy on wool sold was unacceptable. With the board wanting an 8 per cent levy, the two parties appear to be at an impasse. New Zealand growers pay a 6 per i cent levy, 4.5 per cent of which goes to the I.W.S.