MARKETING OF WOOL

Taranaki Daily News, 27 September 1933, Page 12

MARKETING OF WOOL

SHEEPOWNERS AND BROKERS

THEIR OPINIONS CHALLENGED. MARKETING CONTROL FAVOURED. The recently published opinion of the New Zealand Sheepowners’ Federation executive and the New Zealand Woolbrokers’ Association that there is no need for Government interference in the wool trade or for the establishment of any control board to handle the marketing side of the industry, has been challenged by Mr. L. W. Bagley, author of the booklet, “Efficient Wool Marketing,” in a statement issued to the Press of New Zealand. “Criticism,” Mr. Bagley writes, “has been levelled at the practicability of a national standard of classing because of regional peculiarities of the wool due to the geographical and climatic influences. In other words, what is called a 46’s wool at Wanganui certainly has some different characteristics from a 46’s Auckland, or even 46’s Dunedin, and therefore could be used for a different purpose. Fortunately, the decentralisation of our selling centres aids rather than hinders the application of a national standard of classing in New Zealand, because it groups naturally and geographically most wools with their regional peculiarities. “There are no insurmountable practical difficulties in the way of the introduction of a suitable national standard of classing in New Zealand, and the greatest advantage arises from the fact that, after allowing for seasonal climatic influences, the types would be the same year after year, and would become known by the buyers as reliable. “The .bare facts arising from a simple analysis' of marketing conditions and statistics show the advantage the Argentine is enjoying over New Zealand. The fact that the Argentine has made buying easier is reflected in the statistics of the Empire Marketing Board’s wool survey, showing that because of their standardised grading and guaranteed yield, Argentina is supplanting New Zealand’s position in the quantity of raw wool imported into the United Kingdom. “No form of compulsion is necessary in regard to binning wool by the growers, though at present they voluntarily reclass or bin 36 per cent, of the average wool sold in the Dominion. But they have a right to demand efficient work to be carried out by the brokers on their own wool, especially when efficiency can be combined with lower costs. “The owners have been sufficiently genuine in promoting the smaller woolgrowers’ welfare to offer to a suitably representative, and therefore unbiased wool council any benefits arising from the New Zealand rights on a small royalty basis. In'other words, their outlook has been wholly national and the confidence in their work is strong enough to allow the right to such a competent body of practical men to examine and accept or reject this free and tangible national offer, but only after a thorough investigation has been carried out. “The fostering or developing of overseas markets for wool would be greatly hampered by present selling conditions. However, by establishing in New Zealand a national standard of classing, even with the wool at present reclassed in brokers’ stores, it would enable not only growers’ representatives, but the buyers to foster further business with foreign markets. The Argentine dealers do not depend solely on buyers to come to them, but because they can offer standardised graded wool they send representatives to England, the Continent and elsewhere, to get more business, and they are getting it at our cost.” “In conclusion,” Mr. Bagley says, “I would remind these organisations that I have spent five years in a very thorough business research into wool marketing. However, my present offer to woolgrowers in New Zealand will remain national in scope for a limited time, and I will define such an offer to our present Parliament for action as they deem wise. The smaller- woolgrowers are entitled to the full value of their wool, and are going to get it if it lies in my power to arouse them from their apathy. At the same time the value to the Dominion as a whole must not be lost sight of.”