WOOL PRICES.

Gisborne Times, Volume LXVIII, Issue 10741, 12 November 1928, Page 2

WOOL PRICES.

ALLEGATIONS AGAINST BRAD-

FOKD.. REPORT SAID TO DEPRESS’ SALES. MR BOWEN’S ADVICE TO BUYERS. . Wool buying firms ( operating in New Zealand, particularly those representing Bradford, were ' charged by Mr F. S. Bowen, president of the Poverty Bay executive of the Farmers’ Union on Saturday with issuing reports that would have a depressing effect on the prices of wool offered at the. Dominion sales. The president told members that he had addressed the following letter on tlie subject to the Dominion executive:

“In view of the approaching wool season it is necessary for the farmers to be acquainted with the prospects of the market and of the many attempts published too freely throughput New Zealand to depress wool prices jn general. These are inspired reports and usually of Bradford origin and are used every year before each selling season.

“When Bradford tiros of reporting ‘'market dull, tops selling at below cost of raw material,’ etc., she tries to invoke bur sympathy by comparing their manufacturing ' costs with the Continent. The Continent are paying from 38s for females to 54s for men for a 54 hour' 1 week as against Britain’s 48s to 65s ner week of 48 hours work. These labor troubles are not our concern—we have plenty of our own. The recent rises in shearing and shed hands rates arc only some of the many rising costs which have been put upon us during the last eight or ten years, and were it not for fat lamb and mutton trade attached to wool growing, thousands of these small flock ■■•wners would have to go out o*' -v----istence, if they depended on wool for a living.

“It has cost New Zealand wool growers many millions to put our country in a fit state to produce what is now known as the finest crossbred wool in, the world, apart from our heavy ' annual running charges and when the wool buyers purchase our wool, they arc passing on tho lowest cost on the F ' ’

article. Our wool buyers should be reasonable and realise that wool cannot and will no.t be grown lower than its present day value and that, the cause of the rapid rise in the dairy industry is entirely due to the small wool growers being forced out of the sheep industry, and unless better values are to be paid many more must follow suit.

“I'o 'the wool growers of New Zealand I would suggest during the coming wool season, not to be disturbed if the buyers hold off the early sales to endeavor to lower the values. Last year Bradford operated slowly on the first three sales and afterwards paid more to obtain their requirements before leaving the Dominion

“T would suggest that wool growers should look for a 1-jd to 2d per lb. more than the average obtained last year, for the following reasons: “Firstly, over supplies are not in sight; Australian clip has every prospect of being one hundred million lbs. less than last year, equivalent to nearly half the New Zealand clip. “Supplies in England last Ju! were 5 per cent, less than the previous year; British manufacturers during the first six months of this year did more business than for several seasons past. “Many countries that once were supplied from British houses are now active buyers of. the raw material, particularly Russia and Japan. “First class crossbred supplies are not plentiful and will get up noar.lv to merino values, its blending with short fine merinos by improved machinery has produced a better wearing article. 'and finally, in spite of anything that may he said in favor oi artificial substitutes, wool has become more into favor than ever. “I would ask growers to take no notice of brokers’ values and to expect better prices during the com:ng season. Mv advice to you is to instruct your broker what average you expect to get and value accordingly. Tho world has absorbed all that has been grown, substitutes notwithstanding, and if buyers and manufacturers expect supplies to be maintained they must pay better values than in the past and it will still remain the lowest cost in the finished article.”

BRADFORD’S OPERATION 1 " ‘ "T YEAR. i , Mr Bowen added that the Bradford firms issued statement after statement regarding the state of the market and yet the New Zealand farmers did nothing to combat this propaganda. During last season, he pointed out, the Bradford buyers had hardly operated at all in the three first sales, but 1 at the close they had bought as much wool as Bradford had taken the previous year. if' the growers had depended on Bradford purchases thev would have been “skinned alive.” Ho believed that the opening rates at the first sales m the Dominion this season would be on a par with- closing quotations at the final sales last year.

EM ALL FARMERS URGED TO HOLD OFFERINGS.

Mr W. Turnbull said that if the burners received the early rates of last • season they would be well satisfied. He contended that it cost the small farmer much more to produce wool than the big shcepfnrnier. and this fact had been admitted by the latter. Therefore the small farmer, of whom there were a large number, must be persuaded to ho'd his offering for fair prices. He considered that growers should receive L9Sd ner lb on an average for their wool this season, adding that in his opinion rates would not bo lower than last season, and would be higher on the average. He pointed out that that fine crossbred wool was required for blending and there was a shox-tage of this material compared with merino. The greater proportion, of the world’s production of fine crossbred wool was grown in the Dominion, therefore ..farmers had it in their 1 own hands to ensure that they received a reasonable price for The president urged members to be optimistic, advising them to make up their minds they Were going to receive another Id or 2d, a lb. and. they would get it.. He argue- 1 if the competition of the foreign buyers were removed from the New Zealand market, Bradford would not give more than Is per 18. for the wool. Under the present conditions a commodity worth £17.000 OCO was just pitched on to the' market, because 17,000 small growers were mortgaged to a bank or mercantile firm and had to take whatever was «oing. He considered that propaganda should be disseminated throughout the selling season, and they should continue their agitation for a wool hoard. _ This view was shared by otlier members and the discussion concluded with support for the president, m forwarding the letter. b-