WOOL MARKETING

Manawatu Standard, Volume LIII, Issue 248, 16 September 1933, Page 12

WOOL MARKETING

VIEWS OF SHEEPOWNERS AND BROKERS. OFFICIAL' STATEMENT ISSUED. The following official statement has been issued by the New Zealand Sheepowners’ Federation executive and the New Zealand ' Woolbrokers’ Association regarding wool marketing: As during recent months there have been some discussions through the Press and at farmers’ conferences regarding wool marketing, and as there appears to be considerable confusion of ideas, it is considered desirablo to draw attention to a few points. A most important Empire "Wool Conference was held in Melbourne in 1931. It was the most representative conference hitherto held south of the Line. Woolgrowers were present from all over Australia, and also from South Africa and New Zealand. Woolbrokers’ representatives were present from South Africa, New Zealand and all Australian States. England was also represented. The chairman, Sir Gru/ham Waddell, in his opening address, said that the conference had been entirely arranged by the Australian Woolgrowers’ Council. Australian woolgrowers had no faith in Government interference : the less Government interference they had the better. They believed in working out their own salvation. They always practised self help, and refused to lean on Governments, although Governments had leaned heavily on them. This spirit of independence is characteristic, not only of the wool industry of Australia, but of the Empire. Governments can help best by leaving woolgrowers tree to help themselves. They believe in continuing to place their, faith in the law of supply and demand, coupled with orderly marketing, embracing co-ordinate offerings, and linking up of scientific research and publicity. They recognise the great importance of careful ci assing. j'he following resolutions (inter alia) were carried unanimously, the only two dissentient votes being to resolution 1 by two South African brokers, the South African woolgrowers supporting the resolution: (1) That in the opinion of this conference the best method of selling wool is by means of pubiic auction. (2) With a view to stabilising the wool market, regulation of the wool selling season was necessary in order to permit of suitable offerings witnom creating a carry over into tho next selling season. (3) That this conference is opposed to any scheme for the marketing of wool which ignores the law of supply and demand. (4) That this conference strongly urges on all concerned the necessity of the greatest care being taken in tho classing and preparation of wool for sale. It was pointed out with reference to South Africa that the levy of one shilling per bale was struck by the South African Government, especially for the purpose of establishing the woolgrowing industry, which was on a very different footing from that in Australia and New Zealand. Sir John Higgins, in his remarks, agreed that sale by auction was the best method for the final disposal of wool. Mr W. D. Stewart, who represented New Zealand woolgrowers at the conference, in his report stated that tho outstanding feature of the conference was the unanimous decision against arbitrary fixation of prices or Government interference in the wool industry. Several individual stabilisation schemes were submitted to the conference, but they were turned down as they’ were based upon the fixation of minimum prices, to which the conference was unanimously opposed. These considered opinions we strongly endorse. In New Zealand, various suggestions have recently been put forward:— (a) That grades should be standardised throughout the Dominion.—This, we consider, is impracticable. Wool differs in every district; 46-48 sof one district will vary in growth, character, stive and yield, though tho actual count may be tne same, and the same applies to other grades. The suggestion that buyers could buy on a national standard and without; inspection of the bulk, or even without inspection at all, is quite impossible. (b) The suggestion that Argentine methods are better than those obtaining in Australia or the Dominion is not borne out by those who have had experience of the two systems.—The idea of selling here on a guaranteed yield basis would never be agreed to. It would lead to endless claims against growers and brokers from all parts of the world. The buyer now has the opportunity of inspecting any wool and deciding for himself as to yield, and the particular suitability of any lot, and the growers’ risk terminates, as it should, at the fall of the hammer.

(c) Binning of wools by brokers is an established practice in the Dominion, and does not require the assistance of certified classers in any form of compulsion on the grower, whether lie be a large or small owner. (d) No machine for classing or binning has been evolved which will reduce the cost, and the one which is being advocated by interested patentees does not appeal to brokers. . It is doubtful if it would be even practicable, and would certainly add to the cost of handling wool. (e) New methods of baling and dumping have been put forward which are also impracticable when examined by those who have knowledge of the handling of wool. (f) The suggestion of any board fostering or developing markets overseas is a visionary and unnecessary one. Wool is now sought for in the producing markets by representatives of all consuming centres in the World.

To sum up, we are of the opinion that there is no need for Government interference in the wool trade, or the establishment of any control board handling the marketing side. The law of supply and demand and tho worldwide competition which is obtainable through the means of the wool sales here, and in Australia, determine in tho only practical way the price a buyer can give and which the grower gets. The business of wool selling, as the Empire Conference indicated, is already well conducted and systematised.