THE WOOL INDUSTRY.

Otago Witness, Issue 3803, 1 February 1927, Page 12

THE WOOL INDUSTRY.

There are features about the wool business which merit the careful attention of growers. An arrangement has been entered into between the New Zealand Woolbuyers’ Association and the Woolbrokers’ Association that “star” lots shall consist of three bales instead of two bales, and one bale. It has been stated on behalf of woolbrokers —it is supposed in the interests of the growers—that at the meeting at which it had been decided to maffe three bales comprise a “star” lot, brokers were against the proposed change; but it was no use kicking, and buyers overruled them, the buyers stating that they would refuse to bid if this were not done. Th© restrictions under which brokers worked in offering wool at the recent sale at Dunedin, may here be briefly stated: —(l) The New Zealand Government Wool Committee limited the total offering to 25,000 bales. (2) The woolbuyers limit the number of lots offered. (3) The woolbuyers demand that South Island brokers shall offer an average of not less that five and a-half bales per lot. The result of these two last restrictions is that brokers must catalogue a considerable proportion of large clips and “lots” of binned wools, in order to maintain their average per lot, and keep their lot numbers within the number’ allowed them. Admittedly, considerable advantage accrues to the smaller growers by reason of the fact that their wool if catalogued along with the big, showy station clips. Always provided, of course ; that the smaller clip has been classed oui

to qualities. This re-classing of wool has of recent years grown apace to the advantage, we venture to say, of farmers owning some few hundred sheep. These sheep are often bought in lots of mixed breeding, yielding -wool not infrequently ranging from fine (merino) to coarse crossbred (Lincoln). At times it may, and does, happen, that a farmer’s one or two bales of wool will contain 10 to 15 different

qualities of fleece wool. Obviously, if these bales were submitted to auction unclassed, they would not receive the attention of Home buyers, but leave room for speculators to “come in,” and buy these mixed bales at a price (usually the market value of the fleece of least value), and re-class the various fleeces out into straight lots, and probably offer them at a subsequent sale to some pecuniary advantage. On the other hand, if these mixed farmers’ lots, after being weighed into store, are opened up, and the various fleeces classed by experts, weighed and binned with similar quality wools, it

follows that the quantity of the same quality catalogued, warrants the best attention of the visiting buyers. For all his super wool the grower receives the market value, while also for his various grades of coarser fleece wool he has the widest competition. Needless; perhaps, to say, the system of re-classing in the various stores involves a great deal of handling and close expert attention, but, as no wool is lost in the reshuffle, and every pound is accounted for in the farmer’s return, there are sound reasons whv the re-classing of wool grows larger each year. At one time the wool was offered as it

came into store. The buyers saw and sampled a few strands of wool at the top or bottom of the bale, suspected or hoped that the balance of the respective lot was “much of a muchness,” and priced it accordingly, low enough, no doubt, to safeguard their prospective outlav. Today it is possible for buyers to bid with the conviction that the wool purchased is not of dissimilar quality throughout the particular lot catalogued, with the result that the guaranteed classed lots have wider attention, in addition tn confident bidding. As evidence of the increasing popularity of re-classing and- binning of wool, it is interesting to learn that throughout the Dunedin series of wool sales this season it is estimated that fnllv 50 to 69 per cent, of the wool coming info stores in Dunedin will have been reclassed ere being submitted to buvers. The balance, it is conjectured, has been classed as hitherto on the sheep farms .or stations, and is accepted as catalogued. In a final word, it is satisfactory to find that Otago wools this season are well grown and sound, and that the market is firm, with every prosnect of remaining so until the next sale here on March 7, when, of course, those wools held over will bo. offered. It is held in some quarters that the limitation of catalogues is solelv- in the interests of growers, sc it is thought that unlimited sales would be too big a burden for the buyers to lift, and that an even distribution of offerings

tends to make a steady market throughout the season.