Increase in minimum wool price

Press, 14 July 1989, Page 20

Increase in minimum wool price

A five per cent increase in the minimum wool price has been announced by the New Zealand Wool Board.

The average minimum price for the 1989-90 season had been increased to 525 cents per kilogram clean (391 cents greasy) from 500 cents clean (372 cents greasy). Slightly higher increases for fine types would be made for fine wool, reflecting market preferences. This would be offset by a slightly lower increase for other wool types.

The chairman of the board, Mr Pat Morrison, said the minimum prices reflected the general increase in wool prices during the last year and took the devaluation of the New Zealand dollar into account.

“The minimum price has been set well below actual market prices. It represents the second line of grower security and we don’t expect that line to be significantly tested in the 1989-90 season.” The first line of security provided by the board would remain the flexible market support scheme, he said. It was designed to protect growers and end users from short-term aberrations that could occur during and between sales. It also allowed for the year-round trading of seasonal types of wool, such as lambs wool. 1

The board bought 160,500 bales, or 11.7 per cent, of wool sold by auction last season. It sold 155,000 bales.