WOOL RAISING
A WORLD SURVEY
ENCOURAGEMENT MEASURES
STATE AND PRIVATE
(From "The Post's" Representative.) LONDON, August 18.
An interesting survey of the various /measures taken for the encouragement of wool production in both exporting and importing countries is given in the "Wool Intelligence Notes, provided by the Imperial Economic Committee.
Certain measures, it is noted, have been taken in the producing countries in recent years to increase sheep numbers and wool production, and generally' improving the quality of the flocks. In some cases, these measures have ;■ been . mainly initiated by the producers themselves, but in the majority of cases the Government has taken the initiative and is providing of the finance. Exporting countries,, of which the southern Dominions, Argentina, and Uruguay are the most important, are mainly concerned with the maintenance and improvement of an established industry, and with ensuring a profitable market for their expdft products.
In consuming countries, dependent on outside sources for some part of their raw material supplies, the policy of economic nationalism is leading to vigorous encouragement of domestic wool production by subsidies, longterm credits, and guaranteed prices for home-grown wool well above world parity rates. In many cases, particularly in European countries, • possibilities of expansion are strictly limited by pastoral, economic, and geographic, conditions. Many countries so situated are concentrating on an improvement of quality and per caput. yields. In general, however, it would appear that the measures taken in such countries can only affect the world wool supply position to a minor extent, the possibly quantitative increases being relatively small as compared with aggregate world production. EXPORTING COUNTRIES. Summarising briefly the more important measures taken in certain producing and consuming countries with, a view to assisting and expanding the wool-growing industry, the Notes continue;— The southern Dominions (Australia, New Zealand, and the Union of South Africa),.—Early in 1937 wool-produc-ing interests in these three countries agreed to finance a joint scheme for wool publicity and research, with the object ;of promoting wool utilisation and improving wool production. This scheme is financed by a levy on each bale of wool exported. A similar scheme: was introduced in the Union of South Africa some years ago, and after being abandoned in the lowprice years of the depression was readopted in 1935-36. In addition, South African growers were assisted-during difficult years by an export premium, which' was gradually abandoned as the-market improved and prices became more remunerative. It finally ceased in 1937. Argentina.—The Institute de Investigation de Lanas was established by the Government in 1936, owing to concern at the fall in sheep numbers between 1930 and 1935. The duties of this institute include the classification and preparation of. standard samples of; w.ool, the sampling of wool and the establishingvof -the probable yield of various grades, the' advising of producers regarding the best procedure for the shearing, classification, baling, transport; and marketing of their wool, the, recording and. control of price, the calculation of the wool clip and possible surplus, and the supply to wool producers of information regarding international market conditions. In addition, Argentine exporters of. wool receive an indirect. export subsidy through the' special exchange regulations, which operate in their favour.
Uruguay.—Measures for the improvement of sheep-breeding in Uruguay include the establishment of a special commission in April, 1936, with the object of improving the existing breeds. Special premiums are paid to growers ' for the breeding and pur-1 chase of pedigree sheep, and the sale and utilisation of sheep of inferior quality are forbidden. In addition, rebates are allowed on the transport of wools by rail, and all material and machinery intended for the wool industry are exempt from fiscal dues !and,.Customs charges. , , Brazil.—The greater part of the Brazilian sheep population is concentrated in the State of.Rio Grande do Sul, where climatic and pastoral conditions are most suitable for the industry. The Government is encouraging attempts to improve breeds and yields. An export tax on wool has ; increased Its utilisation in an expanding home industry. < IMPORTING COUNTRIES. United States.—ln addition to various Government aids to sheep raisers in the shape of technical and advisory institutions, the wool-producing industry in the United States is further protected by an import duty of 34 cents per 1b on the clean content of greasy wools imported for other than carpet use, with a slightly higher tariff on 'imports of scoured wool. During the years of low prices (1933-35) the Farm Credit Administration Wool Plan provided for the orderly marketing of wool pledged as collateral security by growers who had borrowed from regional agricultural credit corporations or co-operative credit associations. Prices for a large proportion of the domestic wools coming on the market were thus controlled, and major fluctuations were prevented. With the return to more prosperous conditions in the wool-using industry at the end of 1935, Government supervision of wool marketing was finally abandoned.
Soviet Union (Russia).—Under the Second Five Year Plan, provision is made for a steady increase in sheep numbers, with the object of making the Soviet wool-using industry relatively independent of outside sources ior its raw material supplies. With a view to' improving the quality of these; raw materials supplies, considerable . attention is being paid to the crossing of fine and. coarse woolled sheep. Large, numbers of sheep., are being transferred to collective farms, and to the private flocks of individual members of the farms, for breeding purposes, and special grants and credits have been made available to sheep-raisers for this purpose. Compulsory collections of wool for use in the textile industry were also reduced in 1935 and 1936, and larger direct purchases were made at prices considerably higher than those paid for the compulsory collections. This provided an added inducement to individual and collective sheepowners to increase their output, while further subsidies were granted to those who sold fine and semi-coarse wools.
France and French Possessions.—A small sd valorem duty of 0.1 per cent. is. levied in France on imported wool and sheepskins. The amount collected is devoted by a Government Commission to the encouragement of domestic wool production and sheep breeding. In addition, wools from i countries other than Australia. the jtJnion of South Africa, and India, enjtering France through other European pay. a special tax o£ 1.60 ptrancs per 300 kilos. L'Union Ovinci.
with branches in Algeria, Morocco, Tunis, and the various colonies, was established with a view to stimulating sheep raising and improving by scientific research the quality of the wool produced and to afford technical advice to breeders and manufacturers. L'Union Ovine is the national association of sheep breeders, and organises competitions among breeders, the exchange of rams among breeders, the supervision of wool and sheepskin auctions, etc.
| Italy.—Efforts to chock the fall in Italian wool production, which has been in evidence in recent years, led to the requisition by the Government of the whole of the 1937 wool clip at prices well above world parity, It is expected that the high prices offered and the premium for fine wools will stimulate producers to improve both the quantity and the quality of the output.
Germany.—ln March, 1935, the German Government, began a campaign for the increase of domestic sheep numbers and wool production. Credits were made available to sheep raisers for the purchase of stock, and prices for home-grown wool were fixed at levels well above the world standard, a rebate being made by the Government to the purchasers. Manufacturers working -on Government contracts were required to include a specified proportion of German wool. Facilities are also granted to sheep owners for transport on the railways, and a National Pasturage Law is included in ! the, Four Year Plan to regulate the utilisation of pastures. Manchukuo.—Until recently sheepraising in Manchukuo was carried on mainly for the production of mutton and hides, wool being regarded mereiy as a by-product. A 35-year programme, with the object of increasing sheep numbers, improving yields and quality, and providing a substantial output of wool for use in the Japanese woql textile industry, has recently been adopted. A Japan-Manchurian sheep association has been formed, financed by the Japanese Government, the Wool Industry Association, and the South Manchurian Railway, and experimental farms have been established. Climatic and pastoral conditions, however, are likely to prove a limiting factor to this development.
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Bibliographic details
Evening Post, Volume CXXIV, Issue 60, 8 September 1937, Page 13
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1,371WOOL RAISING Evening Post, Volume CXXIV, Issue 60, 8 September 1937, Page 13
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