Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, SATURDAY, NOV. 25, 1933. THE OUTLOOK FOR WOOL

Poverty Bay Herald, Volume LX, Issue 18255, 25 November 1933, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, SATURDAY, NOV. 25, 1933. THE OUTLOOK FOR WOOL

Not for some years has the outlook

for wool appeared so encouraging as. it. is to-day, and the most heartening

mimre, pernups, is the deiiuito imliea lion that the recovery in prices is not

merely a lem pin ary, spasmodic ad vanec, but. a dcJiuilo upward processdtetaied by the .statistical position improved values have been m evr

Ueuee for some time for liner do neriptioiis of wool, and now the tut vaucc lias been transferred to coarsei qualities in which New Zealand U.

most interested. Various reasons arc given for the change in the tone of the market, the principal ones being that there is likely to be a substantial reduction in the quantity of raw material and, at the same time, an increase in the demand for the manufactured articles. In other words, this particular commodity is reacting to the immutable law of supply and demand. It is interesting to observe, incidentally, that, there have been no attempts to artificially influence the market ns there have with other products, notably wheat, meat, and butter. Apart from the general benefit of the exchange premium there has been no concession to growers, there have been, no attempts to restrict, production or to withhold supplies, and there is less marketing organisation than in connection with any other important item of agriculture produce. It is worth while considering whether the recovery of the market is not, in some .measure, at least, due to this absence of interference. Fortunately, there was never the same over-production of wool as

of some other commodities. On the contrary, with the recovery of the demand that had been lessened temporarily through the competition of artificial substitutes, it is found that there is a distinct shortage, aggravated I li is season by the existence of drought conditions in Bouth Africa. The present buying activity, however, is not speculative on account of a prospective dearth of supplies, but is very largely governed by the fact that mills are working under pressure to fnllil orders. This is the point that is of greatest interest to all sections of the industry—that wool is

returning to popularity, and, consequently, a better consumptive demand may be expected more or less permanently. ’D is essential to remember, nevertheless, that the greatest demand is for liner,wool, and it. should not be overlooked that in all possibility the higher prices that are being paid for coarser sorts are not the result of anypartieular request for them, but are due to inability to obtain supplies of the desired qualities at reasonable prices. It is for this reason that N<?w Zealand, in particular, should make a very close study of market conditions and requirements so that the greatest possible benefits can be obtained. It is beyond question that too little attion has' been'paid in the past to catering for the. needs of manufacturers and consumers, for, not only has a large proportion of the wool produced been of the wrong type, but, in addition, its quality has been allowed to deteriorate. It is found, for example, that while merino wool in March of this year was selling at 29 per cent below pre-war prices, the value of crossbred wool had declined by no less than 59 per cent. Thus it is apparent that the catastrophic fall in the price of New Zealand wool, was only partly due to the general fall in world price levels and largely due to it not being ot' the quality that is sought after at the present time. It is possible, of course, that the recovery in crossbred values will continue, but it would bo the . gravest mistake lot growers to roly on this, and they would be well advised to waste no time in making a comprehensive inquiry into the prospects of the market in future. If it is found, as it probably will be, that tlie wide disparity between the returns from' fine and coarse wools is likely to be permanent, then there is an immediate case for investigating the possibility of effecting a change in the type of wool bred in New Zealand, and. at the same time, securing a class of animal that will meet the requirements of the fat lamb trade. Research of this nature is not a matter l'or individual breeders, but must be undertaken on comprehensive lines so that some uniform standard can be evolved as a guide to all. "For litis

purpose some organisation is necessary, find it can only be obtained by the co-operation of growers. When a proposal in this direction was fiist advanced some opposition was expressed, mainly because exception was taken to the suggestion that a small levy should be imposed on growers, 1.-t the last few months, however, there has been a decided change of opinion, due, no doubt, to the scheme having received more careful consideration, and there is every reason to believe that if the Government introduced legislation now it would be generally supported. The recent statement, bv the Prime Minister provides an, important contribution towards the discussion, for it contains a very thorough review of the whole position and has done much' to meet the criticisms that, were previously advanced. It should be emphasised that it is not intended to impose restrictions or control over the industry, but merely to secure the necessary finance to carry out much-needed research work with the object- of effecting all possible improvements in the quality of tho Dominion’s wool. If this position is appreciated, and if growers will realise the danger that they may not secure the full advantages to be derived from the changed outlook of the market unless they take some steps for .effecting necessary all orations to their end of the industry, then they 'Will not hesitate to assist in an organisation which should bo of immense value to them and to the Dominion as a whole.