DISPOSAL OF WOOL.

New Zealand Herald, Volume LVIII, Issue 17780, 13 May 1921, Page 4

DISPOSAL OF WOOL.

NEW ZEALAND'S INTERESTS.

QUESTION OF CO-OPERATION.

FIXING MINIMUM PRICES. [BT TBXEGBAPH.-OWK CORRESPONDENT.] WELLINGTON. Thursday. The decision of the Standing Producers' Committee that the woolgrowers of New Zealand shall reain full, control of their wool while co-vesting with the" BritishAustralian Wool Realisation Association as regards the fixation of minimum reserves and the limitation of offerings seems to be generally approved in farming and commercial circles. It is recognised, however, that many knotty points remain for consideration. Mr. A. E. Mabin, who has been conducting the negotiations with the association on behalf of New Zealand, is still in Melbourne. He has been informed by cablegram of the committee's decision, and it is expected that he will proceed now to discuss schemes of co-operation with the Australian directors of the organisation. A clear understanding with the association is important to the New Zealand woolgrowers. The members of tha committee, in deciding against a full partnership in the British-Australian wool realisation scheme were actuated to some extent by a belief that the directors of the association will be disposed to give a preference to fine wool in their plans of realisation. The bulk of the Australian clip is fine wool, while most of the New Zealand wool is coarse. British and South American woolgrowers also producing coarse wool independent of the association, and New Zealand might be placed in an unfortunate position if it were bound to Australia, while the Dominion's real competitors were free to take advantage of any opportunities that the market offered. The committee had before it a report from Mr. Mabin detailing the reserves that are being enforced by the association. These reserves, based on an average rate of: 9d per pound for greasy Merino, and 5d per pound for greasy crossbred, are very low. In the case of medium and inferior wool the improved rates that have been ruling at recent wool sales in England and Australia are above the association's reserves, but it is stated that they represent something like from to per pound for much of the North Island clip. Sales on that basis would be a very serious matter for the farmers since the prices are well below the cost of production. Dates are being arranged for the New Zealand sales, which are to be resumed shortly. These sales will be awaited with keen interest. The scheme of contr** that is to be exercised in New Zealand is likely to be based upon the scheme that was placed before the producers' conference in Wellington at the beginning of last month. The recommendation made then was that offerings of wool should be limited and that minimum reserves should be placed on all wool offered on a parity basis, the reserves to be agreed upon by the 8.A.W.E.A., the British Wool Importers' Association, and the Council of the New Zealand Woolbrokers' Association.