OUTLOOK FOR WOOL

New Zealand Herald, Volume LXXV, Issue 23059, 9 June 1938, Page 12

OUTLOOK FOR WOOL

In view of the fact that New Zealand's wool cheque last season showed a decline of approximately £6,000,000, special interest attaches to the latest review of world wool consumption issued by the Imperial Economic Oommittee. A clear indication is given that world tendencies do not encourage hope of a return to such favourable conditions as existed a little over a year ago and, with this in mind, sheepfarmers in the Dominion would do well to look to the future. The committee's estimate of available supplies in the 10 principal consuming countries last year amounts to some 1,800,000,0001b., a rise of 5 per cent for the 12 months and the highest total recorded in, recent years. It is also stated that the general factors leading to the sudden price reverse of last season were largely international. In this respect, notwithstanding Mr. Nash's panacea of "insulation," wool producers have the declaration of an established authority that world conditions constitute the most important influence on their market returns. It is for this reason that the review of world consumption should prompt a survey of internal problems. In the Auckland Province, at any rate, next season's wool clip is bound to suffer from the ravages of facial eczema in sheep and there is the consequent prospect of a smaller quantity of wool being sold at prices which, at the moment, cannot be expected to advance materially on those ruling last season. The farmer has not been insulated against a fall in world prices and he cannot be insulated against the outbreak of stock diseases. The remaining factor to be considered is the level of internal costs. Any insulation in this direction can only be forthcoming through Government assistance and so far there has been no evidence that adequate assistance is likely to be granted.