MARKETING OF WOOL

Dominion, Volume 23, Issue 5, 1 October 1929, Page 14

MARKETING OF WOOL

POVERTY BAY SUGGESTION PRESENT SYSTEM BEST The chairman of ,tbe Poverty Bay Provincial executiva of the Farmers’ Union (Mr F. 8. Bowen) at a meeting of the executive last week stated that the marketing of wool was the most important problem to be faced by the farmers of New Zealand. He held that they should hold wool sales over the whole year instead of In a period of only about four months. With the short season the Dominion was simply throwing the wool at the buyers. If they could hold wool sales over the whole twelve months they would get 3d. or 4d per lb. more than they were securing at' present. After some discussion the cbairmail was authorised to write to the Prime Minister setting forth his ideas on the disposal of the New Zealand wool clip.

All-the-Year-Bound Sales.

The suggestion that wool sales should be held all the year round is quite impracticable. It must be remembered that there are three interests associated with the marketing of wool—the growers, who are the sellers; the brokers, and the buyers—and of these three, the buyers are the dominating party. They come iiere with their buying instructions, which are subject to variation by cable instructions, they buy what they want and leave again for their home towns as early as possible. Once the sales start the buyers have a very strenuous time and are no doubt very glad when they can pack up and return home. Australia holds sales over the twelve months, but then, Australia markets well over •>OOO 000 bales and about half of the clip Is marketed in five months. Furthermore, there are few selling centres. New Zealand markets about 560,000 bales and this wool comes under the hammer In the course of five months—November to March inelusive. 1 ‘lf there is still wool to be marketed after March a supplementary sale can be held in April. The bulk of the clip is, however, practically cleared in the five months and there is never sufficient held over to warrant foreign buyers standing by for the supplementary sale. New Zealand markets about 560,000 bales in five months and Australia markets about double that quantity in the same period. The Poverty Bay farmers have long desired sales to be held in Gisborne, and the woolbrokers have done their utmost to meet the wishes of the farmers, but the buyers absolutely refuse to attend sales in the East Coast town because of the lack of transporrtfacllities. Effect of Spreading Bales.

It is difljcult to follow Mr. Bowen’s contention that if the sales were spread over a twelve month the farmers would get 3d. or 4d. per lb. more for their wool. The probability is that spreading the sales and offering a limited quantity each month would have the opposite effect. Ifewer buyers would attend the sales throughout the year, and this w.quld restrict competition; and without the stimulus of competition values would decline. It is foolish to believe that wo.ol prices can be pushed up by any scheme or dodge; buyers will not pay at any time more than the economic value of the wool offered. ' The wool brokers of New Zealand have worked up the sales to a fine standard and it is safe to say thqt on the average the woolgrowers of New Zealand get the full market price of the day for their clips, and they run fewer market risks than the producers of other commodities. The expenses, too, of marketing wool will compare favourably with the marketing of any other farming product. The Prime Minister is to have the Poverty Bay suggestion brought to his notice, but what Sir Joseph Ward can do in the matter it is difficult to discern. Possibly the Poverty Bay farmers think that an Act of Parliament will solve the difficulty for them—Parliament may enact that wool sales should be held all the year round, ever since the first sale was held at Timaru. It would be a very serious mistake to Interfere with that system by legislation, over a period of thirty or thirty-five years, but an Act of the New Zealand Parliament will not rope in foreign buyers to attend the sales. The system of wool selling in New Zealand has developed steadily REDUCED WOOL PRICES FOR . SMALLER CLIPS “Unless wool prices substantially im prove on the opening rates, I am afraid that Australia will be selling its wool clip this season at no profit at all to the growers. The position is so serious that Governments and the general public must take earnest note of it.’’ So said Mr. F. H. Tout, president of the New South Wales Graziers’ Association. a few days ago. He pointed out that, there would be a considerable decrease in the Australian wool production as a result of the unfavourable season. “Taking into consideration the drop of approximately 33 per cent, in wool prices, compared with the opening rates last sea son,” Mr. Tout continued, "and the decrease in the amount of wool produced, we can assume that, unless the market improves Australia will have a decreased revenue this year of from £15,000.000 to £20,000.000. Such a serious decrease must affect or concern everybody in Australia. “The pastoral industry is being further hit by resulting depreciation in sheep values. Land values* too, are likely to feel the repercussion. It Is wool more particularly that governs values throughout the pastoral industry. “I would say most emphatically that in the face of the wool prices, costs of production simply must be got down. In my opinion, Governments will have to strive . most earnestly to reduce taxation, transport charges will have to be revised, and wages generally readjusted. Economically we have reached a critical point, and apparently there is no dodging it.” STUD RED POLL SALE On of the most interesting developments in live stock circles of the Dominion during recent years has been the rapid spread in the cult of lied Poll cattle. This breed has now many adherents on account of Its acceptance as an ideal dual purpose breed. Last year the demand for Red Poll bulls exceeded the supply. Hence it is interesting to note that farmers will be afforded an excellent opportunity on October 9 ar a consignment sale to be held at Feilding to purchase from the leading Red Poll studs of New Zealand, male and female stock ot splendid breed, type, and quality, extremely well suited to the requirements of the various types of farming. Deep, well-fleshed, well-backed bulls, as desirable for crossing on to all dairying breeds as they are for crossing on to beef breeds. At the Smithfield show from 1924 for four years out of five Red Polls, in each case the progeny of deep milking dams, beat nil the pure beef breeds in the early inaturig carcass competitions. The Red Poll being one of the oldest breeds. Is very prepotent, and other commendable features are their robust constitutions, docility, hornlessness, economy in feeding, immunity from disease, fleshing and earlv maturing qualities. Even tn halfbred Red Poll Jersey steers, these . qualities are strongly pronounced. ■ The sale will, take place on Wednesday. October 9. at 11 a.m.. on the Feilding showgrounds, and eatalognes are obtainable from the auctioneers. Messrs. Murray, Roberts and Co.. Ltd., and all their branches and agencies.