THE OTAGO DAILY TIMES FRIDAY, MAY 12, 1950. WOOL IN AMERICA

Otago Daily Times, Issue 27387, 12 May 1950, Page 4

THE OTAGO DAILY TIMES FRIDAY, MAY 12, 1950. WOOL IN AMERICA

Woolgrowers the world over are at present receiving extremely high prices for their product, but few are optimistic enough to believe that these prices will last for ever. In both Australia and New Zealand sheep farmers, while producing to the utmost, are apprehensively speculating on the time when world demands will decline and overseas buyers will operate with considerably more reserve than they have shown in the past few seasons. The problem of future markets is particularly acute for growers of fine wools, for in both New Zealand and Australia the majority of fine-wool sheep are of hardy breeds, pastured on country of a nature that cannot be readily adapted to agriculture or other avenues of production at a time of declining prices. On such land wool is almost the only source of income, and when fine wool is not in urgent demand these fanners fare badly. There is hope, however, that a stable future might be assured through recent United States offers to lower the tariff barriers which for so long have prevented the exploitation of a potentially wide market in America. American domestic production is hopelessly inadequate to cope with increasing demands, and now supplies only 40 per cent, of the nation’s requirements, compared with 88 per cent, before the war. In 1938 domestic production of apparel wool in the United States was 85,700,0001 b, and 22,100,0001 b were imported. In 1945 the respective figures were 160,200,0001 b and 154,700,0001 b; and for the current year it is estimated that domestic production will be 300,000,0001 b, and imports will be 400,000,0001 bto 500,000,0001 b.

The State Department has already announced its willingness to negotiate revised duties on apparel wool and woven wool cloth when the Geneva trade agreements of 1948 are reviewed by the signatory countries next September. At Geneva two years ago the United States reduced the duty on the chief classes of apparel wool by 25 per cent, approximately—from 34 to 25g cents a clean pound. At the same time some reduction was made’ in the duty (37a per cent.) on wool fabrics, but these gestures on the part of the United States were not sufficient to enable wool and woollen fabrics to become dollar earning exports on the scale that most countries of the British Commonwealth desired. Without special legislation the United States cannot reduce the pre-Geneva duty by more than another 25 per cent, but even this concession would stimulate exports of wool from the principal growing countries. According to an English report one purpose of the American Administration in making early announcement of the goods on which it was prepared to negotiate revised duties was to enable the American wool industry to make representation on the subject. It is almost certain that American woolgrowers and the wool textile industry will present some protest, but the event would be doubly unfortunate if the intentions of the Administration were to be defeated. The full potentialities of wool have yet to be realised in the United States, where sheep farming has for many years been of comparatively minor importance in the primary production structure. The wider interest in wool that would ensue from the more general use of high-quality imported wool and wool fabrics would give the American industry a much needed stimulus, and would encourage farmers in the United States to develop the methods of production that have been so successful in New Zealand and Australia.