THE WOOL INDUSTRY

Wanganui Chronicle, Volume 89, Issue 300, 20 December 1945, Page 4

THE WOOL INDUSTRY

A FTER the last war one of the first repercussions so far as New Zealand was concerned was a blow to her wool industry. Wool fell to 6d per lb. at Auckland and got down to about 4d by the time the sales got to Wanganui. That drop was a major cause of the disastrous conditions which led to drastic economies in this country, and the ultimate change of Government when those, economic changes had, to use a coined term, “brought New Zealand round the corner.” Without entering into the political aspect of what happened then, the present situation can be examined to see whether New Zealand has profited at all from the after-war pitfalls of the past, with particular reference to wool. Although there is a vast quantity of wool on hand, accumulations over the years of State commandeer for war purposes, arrangements to market that holding are being pushed to the utmost. New Zealand, in partnership with Britain, has established a wool marketing pool. It has taken over the wool on hand and the, intention is to blend the marketing of that with the new wool coming along. The State purchase scheme, which had been in operation during the war, is to cease at the end of the current wool selling season, after which there is to be a return to a system of auction, with the guaranteed minimum price. The wool pool will buy in wool which does not reach the guaranteed minimum. The minimum will be fixed from year to year, according to circumstances. On the face of it. the scheme is encouraging to the grower, in that there is to be a guaranteed minimum /trice; but that minimum, of necessity, must be based on world marketing conditions and the buoyancy or otherwise of the New Zealand pool. Prices overseas will depend on how soon mills can be restored, and. at the moment, labour shortages are a main stumbling block in Britain. Mills in Germany are idle, and may remain so for a long lime. In France there are marked signs of revival. But, in the end, the whole future of the industry, that is without, taking any note at all of dangers to it from artificial fabrics, will depend firstly upon the quality of the raw product, and, secondly, upon the ability of other nations to pay for it at a price which will pay the grower to continue his present, standard, or improve it. There is a touch of boldness about the marketing scheme, and it is aimed to cushion the shocks from the ups and downs of world trade. What the grower can best do to aid the scheme is to maintain production and improve the quality of the product. In that he can be assisted materially if the Government will reduce costs.