PROSPECTS FOR WOOL

Northern Advocate, 22 April 1933, Page 6

PROSPECTS FOR WOOL

On AVednesday last a cable message made reference to the Empire Marketing Board’s report oil world wool production and‘trade. The full text will bo awaited with interest in New Zealand. The figures given in the cable news shows that, despite five years of low prices, production is being maintained nearly at the level of the record season of 1928-29. The decline in American and Russian production has. it appeal’s, boon balanced by increased production in the grazing countries of the southern hemisphere. Whether this level of production will be maintained in the next two or three seasons is at least doubtful, since flocks have shrunk in New Zealand and Uruguay and probably in Australia also. Though nothing is said about

stocks, a report issued by the' _ Empire Marketing Board in October, .1932, shows that there lias been no accumulation of wool in producing countries on a scale comparable with the enormous increases in stocks of other fibres, particularly cotton. This is the most hopeful feature of the wool situation, for it seems to show that demand is clastic and that ■ lower prices are helping wool in its struggle with competing fibres. At present, as the Press recently stated, the sheep industry, in New Zealand, as in other Dominions, is worse off financially than other primary industries. It has. I moreover, little immediate prosipect of relief through increased |prices. If, however, the sheep inIdnstry has the strength loft to 1 fight, it may be able to put itself lin a better and more assured i position than the dairying or eej real industries. Its first task is to adjust itself to low prices by im- ! proved methods of production and lower overhead costs. Needless to say, this is not a task which it can perform without substantial assistance from outside. Its second task is to eo-oper-ate with manufacturers in an effort to encourage the use of (woollen, textiles. The following table shows how rapidly competing textile fibres have gained on wool since the War: World Production (in million lbs.). I Per. I Average ventage 1909-18. 1926-80. increase. 'Wool 8,086 8,617 18 Cotton ... 11.668 14,018 20 Silk 6.1 121 93 | Rayon ... 19 831 1,610 1 There is no question that a great deal of the ground lost by wool during the period mentioned could be regained if increased advertising were allied with more enterprising manufacturing methods.