THE WOOL MARKET

Dominion, Volume 14, Issue 298, 10 September 1921, Page 8

THE WOOL MARKET

A MORE HOPEFUL TONE COMMENT RY THE MINISTER OF AGRICULTURE THE WORLD’S REDUCED FLOCKS The Minist r of Agriculture (the Hon. W. Nosworthy) suggested yesterday that there was now a more hopeful tone in the wool market. He referred particularly to the reduction in the world’s flocks during tho last seven years and the consequent decline in the production of wool. Ho believed that there was evidence now of an upward movement in values. “In tho many reviews that have been made of the present wool position,” said tho Minister, “it does not appear that' sufficient consideration has been given to the reduced number of sheep throughout the world. Much has been made of the carry-over stocks of Imperial Government wool which have obsessed the minds of producer, manufacturer and consumer alike. When the worst is said the total stocks held by the Imperial Government at the end of December, 1920. amounted to something less than tho equivalent of the 1919-20 Australia, New Zealand, and Cape 'Clips. "Is it not a fact that in normal times this quantity of wool, and perhaps mere, would be held as a matter of course at the commencement of the marketing of a new clip by manufacturers in the United Kingdom, France, Belgium, nnd Germany? For once in the world’s history this wool has been all in one hand, counted, and held up as a bogey before everyone’s eyes. “Immediately after the war the world was starved for woollen goods, and the demand forced up the prices for both raw and manufactured goods to abnormal and unjustified prices The ergy of spending had the natural ending of empty pockets, and the sudden cessation of demand, coupled with heavy working costs, labour troubles, and the delay, in determining the German reparations and the basis on which' business would be done with late enemy powers, resulted in a panic which brought prices down in a few mouths to the lowest this ci untry has over seen and far below 'he cost of production. “Comparison of the world’s flocks of sheep in 1914 and 1920 indicates that every bale of the carry-over v 00l will bn needed for consumption, h d tne increased activity lately evidenced »n manufacturing centres justifies the Irelief that an upward movement in values, bearing at least some closer relation to tho cost of production, is now m progress. “The following figures are compiled from official statistics, and show the number of sheep in the principal countries producing wool with vliich New Zealand wool is in competition:—

♦Uruguay, 1918, latest figures ovailabln. “There is no suggestion that, the production of wool ill 1914 was in excess of the world’s requirements—rather the contrary, as wool rose gradually in price from 1906 to 1914. Yet it is seen that in 1920 there were in these eight countries 71,817,312 sheep fewer than in 1914, tho annual reduced production of wool 71b. per head and 3501 b. to the bale ueing no fewer than 1,436,346 bales. “Of the principal Continental sheepbreeding* countries the most, reliable figures show that the flocks of 1 rance, Germany, Spain and Italy combined have boon reduced by over 10,000.000 sheep. Of Austria, Russia and Turkey biere are no late statistics, but even if *he usual quantities 'were available from these countries, which is impossible, wool does not come into competition with the wool of the Dominions. “Careful consideration of the above facts will, it is hoped, assist to produce a more hopeful financial outlook tor our sorely embarrassed wool growers.

No. of Sheep No. of Sheep Country. 1914. 1920. United Kingdom 27,886,085 25,107,806 United States ... 49,719,000 45,067,000 Canada .... 2,175,302 3,720,783 Argentine .... 83,548,000 45,309,419 Uruguay .... 26,286,296 11,472,852* South Africa .. .... 35,710,843 29,305,241 Australia .... 78,600,334 73,002,250 New Zealand .. .... 24,798,763 , 23,919,970 Totals .... 328,722,633 256,905,321