PROSPECTS FOR WOOL.

King Country Chronicle, Volume XXVI, Issue 3439, 1 November 1932, Page 4

PROSPECTS FOR WOOL.

A message was received on Saturday stating that a British company had perfected a new artificial wool possessing all the virtues of the natural article, a'nd that this could be manufactured at a lower cost. Whether the inventors of the synthetic wool will be able to justify their claims only time will prove. If it can be manufactured at a lower cost than the present price of sheep-grown wool then it means a revolution in this important industry for New Zealand and Australia. No mention is made of the raw material from which the new wool is to be made, and this is a very important phase of the whole subject. On several occasions during the last few years there have been reports of inventions that it was claimed would take the place of natural wool, but nothing has since been heard of them. There is little doubt that the manufacture of artificial silk from wood pulp and other raw materials did affect the price of wool for some time, but this is not altogether responsible for the present low prices for wool. It seems to be next to an impossibility to replace the ■natural article by artificial methods. The report from London will 'naturally cause some anxiety to the woolgrowers, but there is nothing' to warany serious concern until more information is forthcoming. At the same time, with a probable competitor, it is absolutely essential that the production cost of wool should be kept down as low as possible. If the natural wool can be produced at a minimum of cost it will be very difficult for any artificial manufacture to replace it. At the present time the wool market shows a better tendency than for some time past. It is still far below the cost of production. The most hopeful features of the wool situation is that all the countries using wool have participated in the upward trend. In America, for instance, on the wool market during the last two months, values have appreciated by an average of 30 per cent. The London markets have not shown the<

same advance, but with present-day world conditions it is at least satisfactory that the advances in prices made some time ago have been maintained. It is still more satisfactory to note that wool is again coming into favour. There has been an appreciable gain in interest in wool fabrics and a steady demand for woollen goods. The knitting craze throughout the world has also helped the demand for wool. There are many favourable factors acting for the benefit of the wool-grower, and given normal times, his position would have been satisfactory so far as the coming season is concerned. With the world depression in prices, he cannot hope to obtain prices that will give him a reasonable return. This depression will in time be lifted, but when it is impossible to prophesy. It is quite evident, however, that wool is not going out of favour, and has not yet to compete with a permanent opposition by an artificial article. It has to be realised, however, that high prices for wool provides the opportunity for such opposition, and this means that the cost of production for 'natural wool must be lowered in this Dominion.