WOOL HOLDING ITS OWN

Poverty Bay Herald, Volume LXVI, Issue 19884, 10 March 1939, Page 8

WOOL HOLDING ITS OWN

BREEDER’S OPINION BATTLE WITH SUBSTITUTES FREE TRADE NEEDED SYDNEY. Jail. 31 Although the present position of the Australian woolgrower is by no means bright, there can be no doubt that wool is still holding its own as far as consumption is concerned. With freedom of trade among the nations, the demand would automatically increase, and values would rise, although it is probable that, because of the competition of substitutes and adulterants, Australia will have to learn to cut her production costs, due very largely to taxation, without allowing any deterioration to creep into the quality of her clips.

These were the views expressed yesterday by Mr. E. 1. Body, of Bundemar, president of the Sheepbreeders’ Association of New South Wales. “No one seems competent to estimate the position of wool and its substitutes at present,” said Mr. Body, “and he wotdd be a rash man who would forecast the future; but certain statements have been made regarding

the use of artificial fibres, and, for purposes of discussion, I think these may be accepted. It has been stated, for instance, that the volume of artificial output is equal to twice the Australian wool clip, which is statistically recorded a's twofifths of the world’s wool. Another statement bearing closely on the position is that the same set of machinery will manufacture clothing from wool and from the synthetic fibre. Bradford Not Worried “These two facts indicate the extent of the competition to which our wool trade is exposed. Furthermore, some Bradford men have stated that they are not worried about the outlook, because they can handle both the real and the artificial product, and, as clothes will always be wanted, they will be in a position to give the people just what they demand.

“From Australia’s point of view these are very disturbing factors; yet there are other aspects that are somewhat reassuring. We know to-day that one of the influences that materially assisted the development of artificial fibres was a very considerable shortage of wool. We also know that all the wool that is being grown is finding a market, and that, as long as it is cheap enough, much more could be sold. Actually, the demand for clothing, etc., has so increased, that from 25 per cent, to 30 per cent, more material made from the tow commodities is going into consumption.” “But, is it not the case that trade restrictions in several countries have

done much to foster the production of substitute fibres?" Mr. Body was asked.

"That is true.” he replied, "but just to what extent this is being done at the expense of wool it is impossible to estimate, because no clothing made wholly from artificial fibres appears to be satisfactory, and most countries, as a matter of economy as well as of comfort, are forced to use an admixture of the genuine with the synthetic article. It is safe to say, however, that the influence of trade laws is greatly against wool. Wool’s Tremendous Advantage "There can be no doubt about the superiority of wool,” said Mr. Body. “Indeed so great is it that it is reasonable to assume that, whatever happens, politically and economically, some wool must always be used with the substitutes to make fabrics that will satisfy users, except, perhaps, in countries with a very low purchasingpower.

"In many countries, however, it looks as if those who can afford the real thing will buy it as a matter of preference, whilst those who are less better off will gradually form groups which will be caterd for by admixtures of 75 per cent, 50 per cent, and as low as 25 per cent of wool in the artificial. And these percentages will probably vary with good and bad times. “The outlook certainly suggests that, for blending, Australian wool will be needed more than ever. “I certainly think that, more than

ever, it is necessary for us to maintain the quality of our wool,” said Mr. Body. "Grazing conditions have given us a natural advantage over other wool-producing countries, and, if anything can save our industry, it is this fact, provided we take advantage of it.

“Would you say that we can grow wool cheaper than other countries”?

"I would say that we can grow it better, and to do so we must concentrate on quality, and remember always that, if once our clip lost its reputation, Australia’s position would become much more serious than it is to-day.

“There is no need to tell woolgrowers how this can be done by careful selection of sires and general attention to the flock. But it cannot be done by muddling along, nor will the requisite sires be available If the foolish export restrictions of to-day continue to be imposed on the stud industry. As these restrictions are being kept on wholly by the influence of our own Graziers’ Association, it is to be hoped that the present serious outlook may induce that body to reverse its policy, which, at present, is helping no one, and badly hurting the industry through the studs.

“That depressing influences in any industry are reflected in the output is axiomatic, and it is quite impossible for the studs to do their share in maintaining .the standard of our wool clip if they are deprived of the open market without some compensation in the way of a subsidy.”