INSURANCE ON STORED WOOL IS A NEW AUSTRALIAN HEADACHE

Gisborne Herald, Volume LXXVII, Issue 23352, 7 September 1950, Page 8

INSURANCE ON STORED WOOL IS A NEW AUSTRALIAN HEADACHE

SOARING prices for merino

BALLOONING prices for Australian wool, which it is confidently predicted will sell at the “pound per pound” level in the coming j season, are raising' issues that Commonwealth politicians, business- ■ men and farmers never expected to ha Ye to cope with. One angle of (he situation is that Australian insurance companies are nervous of Ihe risks involved in the storage of the clip, and' are reported to be seeking re-insurance wit h . overseas organisations better lilted to spread the risk. Few people in the Commonwealth are unaffected by the extraordinary increase in Merino wool values, and most responsible public men are working to ensure that the boom is treated in the light of a purely temporary bonanza.

This is \he impression brought hack (o New Zealand by Mr. Andrew I’icken, a Matawai district farmer who iias spent the past three months in the eastern States of tiie Commonweal'll. Australians are frankly frightened by the overwhelmingly important place taken by woo! in the national economy, and the general reaction is one of incredulous acceptance of a (urn in the world demand which may be short-lived —and which, ot course, will encourage competition from wool subs itutes now being developed chiefly in lire United States. Ficccnt prices and the prospects of further substantial increases in wool values mean that the contents of an average central wool-store can run into the millions. Losses resulting from fire might easily be catastrophicin the financial sense. Wool Held in Station Sheds Wool held in station storage presents another problem, even more difficult from the physical angle. Major woolbroking firms can establish fire-risk precautions around their stores which cannot be applied to every woolshed in the countryside. Wool in transit poses a further problem of protection, both in relation to fire and theft. A truck-load of wool would be a costly loss if it went astray. These are only a few of the considerations which have to be taken into account by wool men and various Governmental authorities in the Commonwealth. The wider aspects of the situation are believed to be absorbing the attention of Commonwealth statesmen from the Prime Minister down. The average farmer across the Tasman has these matters in tiie back of his mind, hut his chief interest is in getting his share of the boom-lime prosperity while it lasts. Stock prices generally reflect the world demand for wool, and station flocks are reckoned poor in these days if their wool is worth less than £4 per sheep. Marketed in Store Condition This helps to account for the values realised by stud rams, fat sheep and stores, and also for high ruling rates for cattle. Formers who raise cattle look for big prices for beasts yarded in average store condition; it docs not pay to fatten cattle for the home market. Australians seem to prefer lean meat, and on a visit to the Homebush saleyards near Sydney Mr. Picken saw very few sheep or cattle that would be considered prime in New Zealand. Large numbers of them would not be killed for meat in New Zealand, but at. Homebush a good bullock was worth £4O or more, and so-called fat owes, just off the shears, were worth £3 Bs. Sheen are never offered with the wool on—the grower takes his £4 worth of wool before sending I hem to the yards. The major butchering concerns dealing in the domestic market go to the farms for their meat, and Mr. Picken heard of an individual station-owner who regularly sells car-loads of beef —not much better than stores —at £4O a head. Light two-year bullocks sold as fats at I-lomebush for £3(l. and up to £33 for types a little more forward in condition —worth about £l6 in New Zealand. Merino Ram Is a “Gentleman!” Breeding stock values have risen sharply in recent months, and at a Sdney sale of Merino rams prices ranged from lOgns. up to 75gns. incidentally. this sale was held on the third floor of a woolstore. covering about an acre of door space devoted for the time being to pens and staging. The Merino ram is a “gentleman” for whom the best treatment is not too good—even to the use of passen-

+<—« —•• —» *—»—«. —«—* — get- lifts in his journcyings to and from the sale-room floors. During a visit to Brisbane Mr. Picken found a good deal of interest in the Royal Show, which is staged on an area of over 50 acres fitted with permanent appointments even to postoffice buildings which are staffed and equipped for the annual fixture lasting from Saturday to Saturday. Here again lie found plenty oi evidence of the terrific importance of the pastoral industry in the State and Commonwealth economy. Side-attractions to the great show include rodeo performances carried on nightly, trotting and pacing heats, and a variety of other entertainments with emphasis on fanning and sports interests. But the major attractions are the displays of stock and implements for farm use. Fat Bullocks £5 Per 1001 b. The degree of interest is indicated by the tact that on one day the atI tendance reached over 120,000. Racing and other associations offered special fixtures for those who wanted a break in the show interest, and businessmen in Brisbane reaped a rich reward from the huge influx of visitors. Much of the stock displayed at the show was offered for sale after the fixture, and the prize-winning fat bullock achieved a price of £63. He was a fairly bw fellow, running <o 12001 b. Other exhibits in the cattle section sold at a general level of £5 per 1001 b. Though he was unable to check the exact figure now ruling, Mr. Picken learned that the trade unionist's wage for shearing was now just under £6 per 100 sheep. The disparity between this wage and the New Zealand figure of £2 19s Gd minimum is accounted for in part by the slower rate of shearing on Merinos. A better comparison is offered by the rate of £4 15s per 100 paid in the South Island last year for blade-shearing of Merinos on high country. Australian shearers have to be good to get through 150 a day, and the average is a rood deal lower. On Romneys and crossbred sheep in the North ” Island of New Zealand an average of 170 nor day is regarded as a good tally for an experienced machine-shearer.