DOMINION WOOL CLIPS

Greymouth Evening Star, 16 October 1939, Page 5

DOMINION WOOL CLIPS

PURCHASED BY BRITAIN N.Z. PRICE 9.8 d STERLING [BY CABLE —PRESS ASSN. —COPYRIGHT.] LONDON, October 13. It is officially announced that agreement has been reached among the British, Australian, and New Zealand Governments for Britain's purchase of the Dominions’ wool clips for the duration of the war, and one clip thereafter, as far as is not required for domestic consumption. The agreed price is Iffiid sterling for Australian and 9.8 d sterling for New Zealand. Each Dominion shares equally with Britain any profit made by resales outside the United Kingdom. Other details are still being discussed. A message from Canberra says that the Prime Minister (Mr. Menzies), confirming the completion of negotiations for the acquisition of the Australian wool clip) said that the basis agreed on by the British Government assured to Australia an advance of more than 3d per lb. compared with the average of the last year, representing an aggregate increase in the Australian wool cheque of £12,000,001). In other words, wool growers would receive 13.4 d per lb. Australian currency compared with 10 3-5 d Australian currency last year. Mr. Menzies added that the position of neutral countries had been under sympathetic consideration and' he anticipated that arrangements would be made to enable normal trade to be carried on.

Representatives of the wool growers expressed the opinion that the price Britain was paying was in all circumstances fair and reasonable — indeed, it was as much as they had expected.

NEW ZEALAND EQUIVALENT / [per press association.] WELLINGTON, October 14. The Minister for Marketing (Mr. Nash) announced that the price for New Zealand wool was the equivalent of 12R1 in Dominion currency. The average price of agreed on for the New Zealand wool clip compares with 9.17 d in 1938-39; 10.04 d in 1937-38, 15.71 d in 1936-37, and 9.13 d in 1935-36. The new price is, therefore, approximately 338 per cent, above the 193839 average. Wool sold in New Zealand in 193839 totalled 720,202 bales, of a total weight of 245,613,1821 b. and a gross value of £9,386,375. In addition, 94,862 bales were shipped on account of growers. Wool held over from sales at June 30, 1939, amounted to 45,601 bales, including 28,868 bales of greasy, but crutching sales since held in the various centres have reduced the carry over of greasy -wool The Australian price of 13.437 d, compares with 10.55 d in 1938-39, 13.74 d in 1937-38, 16.7 d in 1936-37, and 14.25 d in 1935-36.

A PAYABLE PRICE “IF COSTS DO NOT RISE” CHRISTCHURCH, October 15. The view that if there was no increase in costs the price to be paid by Britain for the New Zealand wool ciip would be payable to growers was expressed by men prominent in the in- J dustry in Canterbury. “Most farmers will consider the price satisfactory, so ‘ long as costs don’t go up, and provided that there is a satisfactory price for ' mutton and lamb,” said Mr. W. W. Mui- ‘ holland, Dominion president of the £ New Zealand Farmers’ Union. “After all, most farmers do not depend on ( wool only for their returns. From what ’ one can gather, it is probable that the • valuing of individual lines will be similar to the system used during the 1 last war. It appears that individual lines will be appraised on their mer- ' its, and it will be just as necessary for ’ farmers to give as much attention to 1 the classification and preparations of • their clips for sale as they have done j 1 in the past.” “It takes about 1/- to grow it!" said < Mr. T. D. Burnett, M.P. Tho clip last season averaged 9.2 d and except, where J the property-owners and their sons i did all their own work farmers were lucky to break even. A rigid control of costs is necessary, and no one must be allowed to get away with an advance in costs. The clip last year . was, on the whole, a good one, but there is every indication that there will be a light clip this year. This is especially so in the high country, notably in Otago and Southland, where many places have had to buy a number of sheep for restocking purposes following the unfavourable season and the losses of 'sheep through snow. On the ‘whole there is no great measure of encouragement in the price,” he remarked. “I feel sure that the price will meet with general approval provided, of course, that production costs do not rise in proportion,” said Mr. G. C. Warren, a member of the New Zealand Wool Publicity Committee. “If costs remain as at present, farmers should receive a fairly good return lor then wool. It has to be remembered that I the price covers all classes of wool. I and farmers may be inclined to judge it from the viewpoint, of fleece wool ■ only.” Mr. Warren said that New Zealand sheep were particularly heavy yi elders, and although New Zealand was 1 only in seventh place foi’ sheen flocks, it was fourth in production. The Dominion produced more wool than South Africa, although the latter country had 8.000.000 more sheep than New Zealand.

COMPARISON WITH 1914. SMALLER RETURN FOR FARMER DUNEDIN, October 15. The chairman of the Dunedin Stock Agents’ and Woolbrokers' Association (Mr. A. Miller.) says that it can bo assumed that the commandeer 01 wool will bo mi the basis which obtained on the occasion ot the prexious commandeer, when the Imperial authorities accepted delivery in store and paid all charges from this point, including storage. Sheepfarmers during the last, commandeer paid charges to the store and also the cost of classing and binning. The British Government was responsible for the cost ol appraisements, which included the olfering charge of Ml per lb. commission, all costs to f.o.b. and also freight. ‘‘The average price of 12Jd per lb.

for the New- Zealand clip is below the figure, anticipated by farmers,” Mr. Miller said, “and is considerably below that paid under the previous commandeer. The price was then in the vicinity of 15d. This was in sterling, which has since changed in value, and in terms of New Zealand currency, to a further extent. This makes the difference in the present price more marked than the figures woujd at first glance indicate. “The depreciation in money values has also caused a steep rise in farmers’ costs. It is considered by those directly interested in primary production that with increased costs of farming, 12d per lb. is required for cross-brcds and 15d for fine wools in order to show a small margin of profit. Unfortunately, recent-events show that costs will be increased still further. “No announcement has been made in regard to the range of prices to be paid to growers,” Mr. Miller. added, ‘but in order to meet the position of fine woolgrowers it is possible that, more than 12R1 will be made for line wools, and corresponding reductions made for crossbreds. This method was adopted in the last commandeer, and is again necessary. Growers of crossbred wools have the advantage of returns from their lambs, which in the majority of cases are fattened by them.” MEAT AND DAIRY PRODUCE. WELLINGTON, October 16. Negotiations with the British Government. for the purchase of New Zealand’s meat and dairy produce are not completed yet. Mr Nash explained today that, during the week-end, cablegrams had been exchanged with the United Kingdom, with regard to the prices at which meat would be acquired, and final decisions should be available in a few days. RETURN TO AUSTRALIA. SYDNEY, October 16The wool return to Australia for the current season’s clip will be about £54,000,000, compared with £42.500.000 last year. According to a Central Wool Committee statement, more than 7.000,000 bales of the current clip are already on the seaboard. DAIRY PRODUCE PRICES PROTEST TO GOVERNMENT HAWERA, October 14. A strong protest against what it considers to he the arbitrary manner in which the new’ season’s prices for butter and cheese were fixed by the Government has been forwarded by the Taranaki Federation of Dairy Companies to the Minister for Marketing (Mr. Nash). The federation states that a strong feeling of resentment exists among Taranaki dairy farmers and suggests that the Minister should arrange meetings of farmers in the various dairying districts with a view to holding an early conference between the Government and representatives of the industry. It is pointed out to the Minister that the farmers in Taranaki are whole-heartedly behind any steps necessary as war measures but feel that they should have been consulted before the present prices were fixed.