DEMAND FOR WOOL

Evening Star, Issue 26091, 3 May 1947, Page 6

DEMAND FOR WOOL

IMPORTANCE OF LONDON MARKET K 0 SIGN OF WEAKENING • (P.A.) WELLINGTON, May 2. Tq re-establish the close connection which existed before the war between the London market and the New Zealand wool producer, Mr K. M. Ronald, joint general manager of the committee of London Wool Brokers, is at present visiting the Dominion. He said in an interview to-day that he was undertaking this visit with' any idea of fostering a spirit of intense competition between local markets and London, for he looked upon the two markets as complementary one to the other and vitally necessary to the whole industry right from the grower to manufacturer. Mr Ronald, who arrived by the Arawa 10 days ago, intends to spend three months in New Zealand visiting the wool-growing and selling centres to see for himself the conditions of production and marketing and to meet those engaged in the industry. . RETURN TO PRE-WAR METHODS. He said that after the war years, during whicli the auction system was of necessity interrupted, wool had now reverted to the well-proved pre-war marketing methods and, as was always the case, the London market had the most important part to play in the disposal of the New Zealand wool clip. To-day, when Great Britain and all wool-oonsuming countries of Europe were ehgaged in the task of recovering from the dislocation of war, an effective spot market such as London only could supply, was more than ever necessary. Without such a market, users would be unable to satisfy' their urgent needs and the stability of prices might be seriously affected. It was perhaps worth while pointing out, Mr Ronald said, that the Joint Organisation operated in London in exactly the same way as it did here, and the grower couid therefore rely on full Join Organisation protection if he shipped to London. KEEN DEMAND IN ENGLAND. “ Conditions in the wool and textile trade in England to-day are by no means easy,” said Mr Ronald. “ There is an acute shortage of labour, particularly in top-making and spinning, and of course there is the serious shortage of fuel as well. Against this, the demand for. woollen goods is at present immense, for everyone in England wants a new suit or a new dress. As the result of this almost insatiable demand, wool prices* are to-day about twice what they were before the war, and so far during the season have shown no real signs of weakening.”