THE NEW ZEALAND WOOL INDUSTRY

New Zealand Journal of Agriculture, Volume 71, Issue 3, 15 September 1945, Page 275

THE NEW ZEALAND WOOL INDUSTRY

By

J. E. DUNCAN,

Wool Supervisor, Livestock Division, Wellington.

JI was estimated that there were 755,400,000 sheep in the world in 1938-39, of which almost half were non-woolled or bore very light fleeces, so that the total of world wool production was 3,990,500,0001 b. The average fleece weight was only 5.31 b. per head. Of this quantity of wool it was estimated that approximately 40 per cent, was of Merino type, 35 per cent, of Crossbred type, and the remaining 25 per cent. Carpet wool. The tables below show that New Zealand ranks seventh on the list for number of sheep, fourth as a woolproducer, and third as an exporter of wool, the United States consuming most of her own clip.

AS it is impossible at present to get complete and up-to-date statistics for. any branch of sheep or wool production, it is unfortunately necessary to rely on pre-war figures in the tables. TABLE I—SHEEP NUMBERS, 1938-39. Number. ' “ Country. (In millions). Australia .. .. .. 110.5 Russia . 84.5 United States of America 52.7 India .. .. .. 50.0 - Argentina .... .. 45.9 South Africa .. '.. 40.5 New Zealand .. .. 31.9 (33.1 for 1943-44) United Kingdom .. 26.3 China -.. .. .. 20.9 Uruguay .. .. .. 17.9 (1937-38) TABLE WOOL PRODUCTION, 1938-39. Weight. Country. (In millions of lb.) Australia .. ~ .. 985.0 United States of America 425.7 Argentina .. .. .. 394.0 New Zealand .. .. 329.0 (330.0 for 1943-44) Russia .. .. .. 303.0 South Africa .. .. 264.0 Uruguay .. .. .. 125.4 United Kingdom .. .. 110.0 New Zealand’s, specialty is the production and export of Crossbred wool, the only . serious competitors in this field being Argentina and Uruguay. During the war this type of wool has

been in great demand for uniforms, because of its strength and durability. In the 10-year period 1930-39 an average of 64.4 per cent, of New Zealand’s exports of wool went to the United Kingdom. An unspecified amount of this was subsequently reexported, but Britain has always been our best market. France, Japan, the United States, and Germany were our other main customers, but the relative importance of their buying fluctuated a great deal from year to year. Since the outbreak of war Britain has bought the whole of our wool clip each year, and this arrangement is to con tinue for the duration and at least one season thereafter. Wool statistics, are notoriously unsatisfactory, both in their methods of presentation and in their shortcomings. In general, they leave us in a position to make little better than an educated guess as to who the ultimate consumers of our wool are, or to what precise use they put it in their 'mills and factories. Without more,adequate information we ...re not in a position to cater for the wants of quite a large proportion of our customers, and are consequently groping . ahead rather blindly in our trends of production. Wool-growers and wool-users tend to

be separated by great distances, and there is little liaison between them. Their knowledge of each other’s problems is usually small, and frequently distorted. Growers have become wary of the advice given by buyers—in many cases justly so, for most buyers are interested only in particular types of wool, and their advice is biased accordingly. It is to be hoped that after the war some responsible body, such as the International Wool Secretariat, will take active steps to interpret the requirements of the manufacturer to the grower of the wool, and conversely make plain to the manufacturer some of the producer’s problems.

Development of Industry The wool industry has steadily evolved and expanded from the earliest days of settlement, and today wool is one of our major items of export. Since first settlement wool has contributed more to the revenue of this country than any other single product, and the aggregate value to date reaches the enormous figure of approximately £600,000,000. Although development has been more or less steady and progressive, it is convenient to observe it under several periods, and those which best lend themselves for the purpose are: (i) From first settlement till 1916. (ii) From 1916-1920—generally referred to as the “commandeer” period. (iii) From 1920-1939 the post-war period. (iv) From 1939 until the present which can be called the “appraisement” period. (i) 1835-1916: x The first record of wool being exported from this country is of a few bags of Merino wool being sent from Mana Island in 1835 to Sydney for'

sale.. As the sheep population expanded, the regular thing was to send wool and tallow direct. to Britain for sale, and the first local auction sales were not held until about 1866. This practice rapidly /expanded, as the farmers felt they had a better chance of obtaining, ruling market values by this method than by private treaty. As the quantity of wool offered and the importance of the local market increased, large overseas manufacturers found .it worth their while to send their buyers to obtain wool at first hand .at the New Zealand wool auctions although many farmers still preferred to ship; their wool direct to London and sell it there by auction—claiming that this practice paid them better in the long run. Some of the larger stations, particularly in the South Island, made a practice of scouring their wool (to save transport costs) and then shipping it to London, as there was no demand on the local market for the scoured product. They too claimed' better returns from this practice. .By the. season 1914-15 322,000. bales of wool were sold in New. Zealand, to a total value of nearly £5,000,000. By the following year - the value . for a similar quantity of wool had jumped to nearly £8,000,000, but, on account of the .World War, marketing conditions were rapidly becoming very uncertain and auctions as they had previously existed impossible. (ii) 1916-1920— . Commandeer”: . Under a proclamation of December 21, 1916, the Crown became the sole buyer and seller of wool, and woolbrokers were appointed to act ,as agents of the Government .in these transactions. , .Wool-growers ■ had . to deliver their wool to the store of a Government broker, ; where it ' was examined, . classified, and valued by two experts— one of them appointed by the Government and the other by the broker. A detailed price and type schedule for all wools was prepared, and the Imperial Government agreed to pay a price 55 per cent, . above the ruling average price for the 1913-14 clip. All charges incidental to handling the wool were met ;by the Imperial Government, so that the purchase price was the actual net cash return to the grower. As the Imperial Government also agreed to return to the grower half the ■ profits on any wool re-sold, but to bear any losses incurred itself, the scheme was .a, generous one to the wool-grower. Four clips were requisitioned under the scheme, - namely. 1916-17, 1917-18, 1918-19, and 1919-20, a total of 2,350,000 bales of wool -to the value of almost £59,000,000. (iii) 1920-1939—The “Post-War” Period: “BAWRA”: At the close of the commandeer period Britain still held

enormous stocks of unsold wool, including almost 800,000 bales from New Zealand: 'lt was in an effort to dispose of this surplus without completely glutting the market' that BAWRA was formed. The name stood for British Australian Wool Realisation Association, Ltd., which was established in January, 1921. In addition to the operation of BAWRA in disposing of old stocks of wool, regulations were brought : in in ’ New Zealand first completely prohibiting any sales of the new clip for two months, and later allowing increasing quantities to be sold, but with the imposition of a minimum’ price. As market prices were steadily rising, the minimum price clause was revoked in 1922, but a permanent legacy from this period is the control of quantities of wool offered at auction sales by the Wool Committee, which has persisted. This committee still functions, and includes a chairman appointed by the Minister of Agriculture and representatives of the Wool Brokers’ Association and . the Sheepowners’ Federation. With the disposal of all surplus, wool stocks by 1924, BAWRA was dissolved, after performing: in an outstanding manner a necessary and difficult task. From Farm to Mill The channels through which our wool normally flows from the farm to the manufacturer may be considered at this stage. Restrictions of space forbid anything but the barest outline: (1) The sheep are mustered by shepherds with dogs, and brought to (2) the sheep-yards, where they are held, and those requiring it (3) “dagged,” i.e., pieces of dried dung clipped off the wool round the tail. (4) The sheep are put into the wool-shed where they are held overnight in small pens. .This causes them to sweat, and makes (5) the shearing easier next day. Most properties use shearing-machines, but some of • the high-country stations in .the South Island still use blade shears to leave more wool on as a protection from the cold. (6) The sheep are then wool marked with the. owner’s brand, and (7) returned to their;, paddocks. (8). The shorn fleece is picked up and thrown on a slatted wool table, where it is (9) skirted, this procedure - involving the removal of all the inferior wool from the main portion of . the fleece, which is then (10) rolled into . a compact bundle. On most of the larger properties it is now usually (11) classed by ■ a specialist, wool-classer, who classes fleeces of similar type together into (12) the bins, where they are held until required for (13) pressing into packs by a manually-operated press. These bales average about. 3401 b. . in weight, and they are now (14) stencilled with the owner’s brand, bale number, , and description of wool,

and (15) dispatched to the woolbroker. When they are (16) received by the broker description and weights of bales are noted, and they are (17) piled up in stacks. A proportion’of each line of bales is put on the welllighted top floor - of the store, where (18) the ends are cut open. to . display the wool. (19) In pre-war days this was valued by competing buyers, who subsequently bid for it at auction, but at present it is appraised on a standard schedule of values by a team of appraisers. (20) The wool which has been pulled out'is pushed back into the bales, and these are ' then (21) check-weighed and resewn. (22) Shipping marks are placed on the bales, and then it is usual to (23) “dump” them, i.e., force two bales into the volume normally occupied by one, by means of- a powerful, hydraulic press, and bind them thus with steel bands or wires. They, are then (24) carted or railed to the ship, and (25) i exported. This gives the usual procedure from which there may be certain deviations, such as will be explained presently in regard to classing.

Normal Methods of Disposal

At the beginning of the century only a quarter of the wool grown in New Zealand was sold through the auction sales conducted by the wool-brokers, the ; remainder being - sold by direct consignment to Britain, or by private treaty to country wool-buyers.

The central auction system expanded rapidly on its own merits, and

immediately prior to the present war accounted for at least 85 per cent, of the wool sold in New Zealand. Marketing in Australia and South .. Africa developed along similar lines, but in South America sales ■ are still by private treaty. In North America and Europe also sales are usually by the latter method, but these. are not exporting countries.. Many, advantages are claimed for the system of selling by auction at a few centralised points, and quoted below is a section from the publication “Wool” by the New Zealand Loan and Mercantile Agency Co., Ltd., which sets out these points very clearly:—

The main features of the central auctioning system may be said to be :

(a) The collection of large quantities of wool of. various grades and qualities at convenient focal points, thereby attracting the principal world buyers, facilitating inspection, ensuring genuine competition among buyers, and making anything in the ’ nature of a ring on their part difficult, if not impossible.

(b) ’ It places at the disposal ,of the small producer highly-skilled advice and assistance at relatively low cost, and enables small clips to be classed, graded, and amalgamated, thereby attracting a class of .buyer who would not be interested in small, individual, unclassed lots.

(c) It assists growers (especially the smaller growers) to obtain finance against their wool clips.

(d) It encourages. , a spirit of healthy competition among growers to class and' grade their clips to the best advantage, with a view to attracting the highest possible price.

(e) It helps producers of wool to keep : in constant touch with current wool prices, as the prices realised at the auction sales are publicised by Press and radio.

(f) The free publicity given to the auction sales throughout the world is a valuable advertisement for wool.

There can, be little doubt that in sales by private treaty the small producer is largely in the hands of the buyer, as competition is restricted and a combination of buyers against any producer is facilitated and indeed almost encouraged.

The auction sales were usually held in some. large building, such as the town hall or an opera house in each centre, and lent a touch of colour to the selling season with their collection

of ' international buyers, the staccato bids/ the rapid tempo of the proceedings, and the excitement and anticlimax as prices soared and just as often crashed. Space forbids going into detail, but the modern auction system acquired many regulations and safeguards as it evolved, arid both the Brokers’ and the Buyers’ Associations have contributed to these. Once his wool is sold the producer’s main concern is to get the money for it, and he is not kept waiting long, for the rules stipulate that the buyer must pay at or before “prompt,” which means in effect 14 days after the sale. Prior to the war the methods of disposal actually open to the grower were as follows; — 1. Sell wool at auction through a broker. (a) The broker both skirting and classing the wool. ■ (b) The farmer doing the skirting . but leaving the classing to the broker. (c) The farmer skirting and classing, the broker merely displaying and selling. (d) Small lots . were often skirted and sent to the broker for binning, or (e) Sent to the broker for . skirting and binning. . . ' (f) Lines of 3 bales or less might be “interlotted” by the broker with other small lines of simi-

lar type, to avoid “star lots.” (A “star” is any lot of less than 4 bales, and is 1 not sold , in the main catalogue). 2. Ship direct to England for sale at the London wool auction sales. 3. Scour wool locally, and ship to London for sale. 4. Sell by private treaty to an . itinerant wool-buyer. 5. Sell to a co-operative concern specialising in wool-sorting. 6. A combination of any of the above. These various methods of disposal in 7 greater detail are:— 1. (a) The statistics show that the average size of flock in New Zealand is approximately 1,000 sheep, and the number of bales of wool that these will produce varies from, say, 20 to 30, according to circumstances. It must be remembered, however, that this average of 1,000 sheep is derived from a relatively large number of small , flocks and a correspondingly small number of large flocks, and actually three-quarters of the country’s flocks are of less than 1,000 sheep, and half of them less than • 500. On this basis at least half our wool clips are of 15 bales or less, so the . amount of wool-classing that can be done on the farm is strictly, limited in these cases. In addition,' many of the smaller farms have poor facilities both in labour and equipment for handling wool, although, it is frequently possible to overcome - this drawback by making use of a neighbour’s wool-shed. Where

adequate facilities cannot be provided it is better to leave the whole job of preparation to the wool-broker. The - usual charge for skirting and classing is |d. per lb., and the broker will use his discretion as to the best method of, disposal of small lots bybinning, etc. (see below). -

1. (b) Even with a small clip it is desirable that skirting should be carried out at shearing time whenever possible, because the fleece is then in its best condition for this operation.' It has just come off the sheep and has not yet been disarranged and tangled >by rolling, pressing, and unrolling, as would be the Case with skirting when it reached the Woolstore. If properly thrown out on the wool table, the different portions of the fleece are easy to distinguish and proper skirting can be efficiently carried out. (For full details of this process see “New Zealand Journal of Agriculture,” Nov., 1944, p. . 453). Where the broker has only to class the wool much less labour is involved, and the standard charge is id. per lb.

1. (c) Where the quantities of wool warrant it and the necessary labour and facilities are available, classing on the farm has much to recommend it, and costs a good ; deal less than when done by the broker. Where the grower has the necessary skill he may class his own wool, but it is more usual to employ a professional classer to take complete charge of the woolroom.

Space does not permit a detailed discussion of the objects and benefits of wool-classing, but good classing should divide the clip into a few main lines with clear-cut distinctions between them. After, the removal of inferior wool by skirting the fleece is the unit, . and as. many fleeces as possible of similar type are assembled together to make each line. As far as practicable the oddments such as belly wool, pieces, locks, etc., which are products of the skirting process, are also assembled into the. largest possible even lines. Some fleeces, and small quantities of oddments, which on account of certain special characteristics cannot be fitted into any of the main lines, are usually sent to the broker for binning (see below).

Efficient classing benefits all parties concerned. The grower receives a better price for his product, and eventually his station —which is equivalent to his “trade-mark,” achieves a good reputation with the buyers. The broker prefers to . display well-classed clips in preference to shoddily-prepared wool, and his selling job is made easier. The buyer can select what he wants with greater facility, can value with more confidence and accuracy, and under the auction system can bid up to the last farthing for a desirable line of wool. Under the present appraisal system

well-classed wools receive a definite premium over poorly-prepared lots. (The reasons for this are fully explained in the article “Wool AppraisementHow the Scheme Works”see “New Zealand Journal of Agriculture,” November, 1944). -

The costs involved under the auction system were transport charges from farm to store, insurance in transit, warehousing, and commission, also the levy of 6d. per bale. These charges usually amounted to between 4 and 5. per cent, of the gross return to the farmer on his wool. The charges for skirting, classing, binning, etc., mentioned elsewhere are, of course, superimposed on the costs just mentioned, which cover simply the display and sale of the wool. Under the present appraisement system the-, broker is paid fd. per lb. by the Government for displaying and selling the wool, so this amount is not a direct charge on the farmer, although he pays it indirectly by getting that much less for his wool. He still pays directly for transport.

1. (d), (e), and (f) Binning (or pooling as it is sometimes called) is the method used for the effective treatment of even the smallest, quantities of wool, and all brokers now provide this service for their clients. The facilities available and the skill with which the. method is applied vary a .good deal from firm to firm, and some brokers have made more of a specialty of it than others. The system derives its name from the large number of bins which are provided to separate up the different grades of wool. Some brokers provide well over . 200 of these bins. Each fleece received is graded as it passes over the wool table and allotted to the appropriate bin, where it joins other fleeces of similar type and quality, to make an even, uniform line of wool. When sufficient wool has accumulated in . a bin it is offered for sale -or appraisement under the firm’s brand. The farmer is credited with the value according to the weight of his wool which went into each bin. The charge for binning is usually id. per lb., and for binning and skirting fd.

It is provided in the rules of the New Zealand Wool Brokers’ Association that lots of 3 bales and under (with certain minor exceptions) are to be known as '“'star” lots, and are not to be offered for sale in the main catalogue. Under the auction system such wools tend to be neglected by the main buyers, and their price suffers accordingly. At present they receive full value under the appraisement scheme, but are- still avoided whenever, possible, as they waste valuable time and space. In practice the brokers avoid making star lots whenever they can, and the principal method employed is known as interlotting or grouping. Under this sys-

tern a minimum of eight bales of similar type are grouped together, and sold as a single lot. The farmer does not submerge the identity of his brand, but obviously could no longer place a reserve on his wool under the auction system, as it was sold along with that from several other properties. At present, of course, no reserves can be placed on wool. Interlotting is something of a makeshift, and the results are a compromise. Naturally, with a line of mixed wool of - this type • the buyer -or appraiser tends to value on a conservative basis, and while the owner of the poorest wool in the lot may get more than it is worth, the owner of the best wool will certainly lose by it. In most cases the owner of the wool would secure a higher net return by sending his wool to a reputable firm for binning (even after paying the extra f-d. per lb.) than by allowing it to be interlotted, which costs him only 1/6 per bale.

2. There are no exact figures available on the quantity of wool which was shipped direct to London for sale at the large central wool auctions held there before the war. At one time a large part of our wool was disposed of in this way, but in the years just preceding the present war the amount was probably below 10 per cent, of our annual clip. Those who still sent their wool to London claimed that in doing so they received better returns over a period of years than they would have got at the New Zealand auction sales. Their contention is almost impossible to prove on account of the difficulty of securing valid comparisons. There is no doubt that in some seasons London prices were definitely in advance of New Zealand parity, and for some specialty lines of wool (e.g. scoured) this was nearly always the case, but in the long run and covering all types of wool there is not enough available evidence to prove anything. Selling in New Zealand is certainly easier, the time lag before payment is much shorter, and the producer has better control of his wool.

3. In the early days of colonisation a number of the large sheep stations

in New Zealand made a practice of scouring their wool on the property. They had crude equipment for doing the job, but managed to remove most of the grease and dirt from the wool, and achieved their main object of reducing the weight which had to be carted to the coast,, and at the same time increased the value per lb.’ of the product. 1

In later years numbers of permanent scouring establishments . were built at strategic points, and handled the wool on a commission and/or a speculative basis.’ Just before the war there were 25 of these establishments handling an average of z some 50,000 bales of greasy wool a year. Some of them were rather primitive in their equipment and methods, and the industry was purely seasonal due to the small quantities of wool handled, and partly due to the fact that many works depended on outside drying and could operate only in summer. In spite of these handicaps a number of works had built up a good reputation for their products on the London market, and their clients were able to show over a period of years a net gain by selling their wool in the scoured ; state in London rather than in the grease in New Zealand.

It has always been unwise to attempt to sell scoured wool in New Zealand, because the buyers who came . to the auction sales had no orders for such wool, and were' not interested in. it. In London, on the other hand, the wool could be inspected and bought by those directly interested in it. Unfortunately, the wool-producer has not' always had access to the true facts, and the pros and cons of scouring in New Zealand have been hedged about with misconceptions and propaganda. Naturally, Bradford has never encouraged scouring in New Zealand, because it would take business away from them, and also because they emphasise that the requirements of the trade for selection, sorting, and blending can be more efficiently carried out on the spot. The latter argument at least is perfectly, sound when it- refers to high-class fleece wools for. the worsted section of the. trade, because scoured wools' cannot be sorted, but it leaves a large proportion of other types of wool suitable for the “woollen” trade which can be quite well enough sorted before scouring in New Zealand. These wools comprise mainly the oddments of the clip,, such as bellies, pieces, locks, crutchings, dingy fleece wool, dead wool, and to some extent lambs’ wool. At a conservative estimate . 25 per cent, of our wool clip could be considered suitable for scouring, and on this basis it is probable that we could scour up to. 200.000 bales a year without upsetting normal trade practices or antagonising our overseas customers. This- contention is partially borne out by the fact that

during the present appraisal scheme an average of about 150,000 bales of greasy wool a year have been selected and scoured by the' 27 scouringworks in the Dominion.

4. Latterly, sales by private treaty have been a very small proportion, because, as the figures show, in 1939 at least 85 per cent, of our wool was sold at public auction, and of the remainder sales in London either in the grease or scoured accounted for the major portion. Very few farmers would sell a whole clip privately, although . many farmers were quite willing to sell an odd fleece or two left over after shearing, often along with some skins, to an itinerant buyer. As the buyer usually sold the wool at auction in the long run, and as he had to make a living in the process, the farmer stood -to lose by the transaction, but what he lost in cash he probably made up in convenience.

5. The essential , difference between classing and sorting wool is that in classing the fleece is treated as a unit, and fleeces of similar type are grouped together, whereas in sorting the fleece is broken up- into perhaps half, .a; dozen different sorts of wool. Similar portions from different fleeces are grouped together to form “matchings.”, It follows that a line of matchings will be much more uniform than a line of whole fleeces, and sorting is the natural sequel to classing. It has to be performed at some stage, usually at-the mill, before the wool is ,finally converted into fabric.' Before the war there was one firm in New Zealanda co-operative concern —which specialised in sorting, * and was \ able to sell wool abroad on sample. They claimed to show a better return to their clients than by ordinary methods of sale. Under war conditions they are unable to continue with their sorting operations, and at present the outlook is uncertain. ' -/

Grading and Inspection

Grading and inspection are not normally Government functions at all. In peacetime there is no compulsion on the farmer to carry out any classing or grading of his wool, although it is in his own interests to do so.. He may either class his wool himself or employ a professional wool-classer to do it for him, or he may leave these functions to his broker, as mentioned above. ’

Inspection of wool offered for sale at auction comes within the province of both the Wool Brokers’ and the Wool Buyers’ Associations. Both these bodies have books of rules and regulations which cover the manner in which the wool is to be handled, displayed, and sold. In' normal times the. Buyers’ Association employs an inspector, who visits the wool-stores prior to sale, and sees that the brokers

observe the conditions, mutually agreed upon between the two associations. Although the Government enforces no laws covering the grading of wool, the Department of. Agriculture takes an active interest in . advising and instructing farmers l in the best methods of preparing their wool. In normal times two officers are employed, whose work’ is mainly the giving of advice, lectures, and -demonstrations to farmers on wool-growing and the proper preparation of their wool for sale. This instructional work covers the whole of New Zealand, and is carried out in conjunction with, a certain amount, of investigational and extension work'on related problems, all with the same- ultimate objective, to encourage the most efficient methods of wool production combined with the most effective means of marketing.- .

(iv) 1939 Onwards—The Appraisement Scheme:

Immediately on the outbreak of hostilities in 1939 Britain once more offered to buy all our wool for the duration of the war and one season thereafter. The only point in question was the price to be paid, and a meeting was held in Wellington to determine this. All interested parties were representedthe producers of the wool, the Government, which would have to administer the scheme, the Wool Brokers’ Association, which would have -to handle the wool, and the Wool Buyers’ Association, which would have to supply the' personnel to carry out appraisement. The aim was to fix a price which, while being reasonably remunerative -to the farmer, would not unduly penalise Britain. An average price of 1/- per greasy lb. for the grower of the wool was agreed upon as a fair one, and when the negotiations were completed the net average price to the farmer worked out at 12.25 d. . per lb.

The next step was to secure a body of men to implement the appraisal system, arid theonly ones available in the..country with the requisite knowledge and experience were the wool-buyers. The Wool Buyers’ Association immediately set to work to draw up a type and price schedule for all grades * of wool, or, as it is generally referred to in the trade, the “Bareme.” Some idea of the magnitude of this task can be judged from the fact that eventually 977 types of greasy wool were established, for each of which a standard . clean-scoured price had to be fixed, . so that the over-all average price to the farmer for the 800,000 odd bales of greasy wool falling into these many different grades , would work out at 12.25 d. per lb. in the greasy . —the figure agreed upon with Britain. Besides the Bareme for greasy wool there is another for the slipe wool from

freezing - works and fellmongers., embracing nearly 500 additional types, A Controlling Appraiser was appointed, who ' has one Assistant Controlling Appraiser stationed in the North Island and one in the South. Each of these assistants has attached to him a team consisting of supervising appraisers, appraisers, and samplers. The : actual numbers vary according to the amount of wool which has to be dealt with, and members are transferred between the two teams as required to handle the work. A large clerical staff is also necessary. Instead of a roster of auction sales being drawn up, as was done before ' the war, a list of wool appraisals is now . prepared, covering the normal selling season. , Before the war wool was sold at eight / centres, namely, Auckland, Napier, Wanganui, Wellington, Christchurch, Timaru, Dunedin, and Invercargill. Since then it has been found necessary to . include additional appraisal points to expedite the handling and shipping of the wool, and these are Tokomaru Bay, Tolaga . Bay, Gisborne, Nelson, Blenheim, and Oamaru. Facilities for storage and valuing were . provided at these points. As far as the woolbrokers are concerned the introduction of the appraisal system has not brought about any radical changes. The wool is handled and displayed in the same way as previously, but there is now no 'point in a farmer pestering the broker to get his wool into a particular sale, as sometimes happened previously, because whatever appraisal it is sold at the -basis of valuation will be exactly the same.

The appraisers work in •_ pairs, and later their work . is checked by a supervising ■ appraiser, so that uniformity in valuation will be preserved from store to store and centre to

centre. Provision ,is also made that if the broker (acting on his client’s behalf) considers that any lot of wool has been under-valued, he ■ can have it re-checked, and if necessary the supervising ' appraiser can be called in to, act as arbiter. His decision is final. Under the original agreement Britain offered to pay an over-all average. of 10.55 d. sterling per lb. for our wool, which included the charges for appraisal and handling up to f.o.b. The appraisers are paid set salaries, and the brokers receive fd. per lb., . to cover the handling, display, insurance, etc., of the wool. They are also paid storage at the rate of 3d. per bale per week, after the initial free storage period of 28 days has expired. The average price received by the farmer for his wool, from Britain, in the original . agreement was 12.25 d. per lb. Of course, from this had to be deducted the charges for services rendered by the broker, such as skirting, classing, binning, etc.

It will readily be appreciated that with a quantity of wool as large as the New Zealand clip,, and comprising so many types, it was virtually impossible, for the average to work out exactly at 12.25 d., so a Retention Fund of 5 per cent, was established to cover discrepancies. That is to say, the farmer was actually paid out the value of his wool less 5 per cent. 14 days after the completion of appraisal. Thus, if the season was a poor one and the style of the clip below average, it meant that appraised values would be somewhat down. So -at the end of the season the farmer received his share of the 5 per cent, retention money, plus the difference by which actual average appraised values were below 12.25 d. Conversely, in a particularly ■ good season the reverse would apply, and the pay-out at the end of the year'would be slightly less than 5 per cent., although this has not so far occurred. The Retention Fund also takes care of any slight alteration in the standard of valuing from season to season, for in spite of every care the appraisers are only human, and there is a long gap between wool seasons. ' '

On account of increased costs of production in Australia, Britain granted that country an increase of 15 per cent, for her wool in 1942. At the same time she voluntarily granted' a similar increase to South Africa and New Zealand, bringing the price to

the New Zealand farmer up to 14.0875 d. per lb. ■ Actually the farmer did not receive the whole of this 15 per cent, increase, as it was decided in the interests of stabilisation not to increase the issue price of wool to our local New Zealand mills, which . still get jit at the old price of 12.25 d. per lb. The aim was to prevent a further increase in the price, of clothes. As the local mills, even in wartime, use only some 5 per cent, of our wool, the effect on the price received by the farmer was relatively small, and he , actually received 13.9676 d. for his wool in 1943-44, instead of 14.0875 d., which would have represented the full 15 per cent. During 1942 the Retention Fund was increased to 10 per cent., and the present arrangement is that at the end of the season the wool-grower receives half of this in cash and the other half in bonds, or he may elect to take the full amount in bonds. (In practice the farmer can sell these bonds for cash. if he so wishes). The adjustment money, i.e., the small addition . to the retention money, is also paid in cash. The half-share of any profits made by Britain on re-sale of our wool will be paid , out in a lump sum after the war. Although the contract for the sale of our wool is exclusively with Britain, not the' whole of our clip goes there. Last season (1943-44) 51,426 bales went to our own woollen mills, and Britain diverted substantial quantities to other destinations,' so that actual shipments were, as follows: — Bales. United Kingdom . . .. 622,494 Canada .. . . .. 83,252 United States of America .. 57,278 India .. . . . . .. 12,800 Australia .. .. .. 1,790 Total .. ... .. 777,614 The appraisement scheme was fully covered in an article in the “New Zealand Journal’ of Agriculture” of November, 1944, and is now available in bulletin form, New Zealand De-

partment of Agriculture Bulletin No. 237, available free on request." ' On the whole the appraisement scheme has worked very smoothly, considering the very large volume of wool handled, and the producer for the first time in many years knows in advance the - price his ’ wool will bring; and has reasonable stability of income, allowing him to budget ahead. Types of NJ?. Wool The numbers and percentages of the different breeds of sheep in the country, which, after due allowance for differences in fleece weight between breeds have been made, will give- an approximate idea of the amounts and sorts of wool produced, appear in table 3. In the wool trade, however, certain characteristics other than breed are of over-riding importance, and fineness of fibre diameter is one of the most important. Broadly, New Zealand’s wool can be divided into two groups, Merino and Crossbred, using the latter term in its widest. sense, i.e., all wools intermediate between Merino and Carpet types. .In practice the Crossbred group, which constitutes approximately 97 per cent, of our wool, can be subdivided' into several other trade categories, as set out in the following table. Without' going into detail it may be said that the “counts” or “quality numbers” really signify average fibre . diameterthe higher the count the finer the .fibre. The range given below covers all the wool produced in New Zealand. '/ / TABLE TYPES OF WOOL. New Zealand Trade "" Description of Wool. Count. Fine Merino .. .. .. .. 70’s Medium Merino ... .. 64’s Strong Merino .. .. .. 60’s Quarter-bred .. .. .. 58’s Half-bred (fine) .. .. .. 56’s Half-bred (strong) .. .. 54’s Three-quarter-bred . or Superfine Crossbred ... .. .. 50’s Fine Crossbred .. .. 48’s Medium Crossbred .. .. 46’s Strong Crossbred .. .. 44’s Low Crossbred .. .. .. 40’s Lincoln .. 36’s

Other countries, of course, produce wool outside this range, such as the Superfine Merino wool of Australia, or the Coarse Carpet wool of India. The above table gives merely a broad outline of the usual practice of grading on “quality” (with reference mainly to average fibre diameter), but other factors such as length, soundness, colour, efficiency of skirting, freedom from vegetable matter, etc., are ; all taken into account in determining the commercial value of the wool.

It is advisable to mention very briefly at this point the distinction between “Woollen” and “Worsted” — the' two broad divisions into which the wool-manufacturing trade of the world may be divided. The two systems make use of different types' of raw material and machinery. It may be said that very generally the Woollen trade utilises cheap wools, mostly inferior in length and soundness compared with those for the Worsted trade, and usually the sorting it goes through .is much less intensive. Not only re-worked wool, but cotton and synthetic materials may be blended in with the wool, and the number of processes the blend goes through prior to spinning is . kept to a minimum. The resulting yarn is soft and fuzzy, but can be woven into a large variety of useful materials, ranging from cheap to moderate in price.

The Worsted trade, on the other hand, pays more for its raw materials, buying generally the soundest and longest wool. No reclaimed fibres are used, although a little synthetic fibre may be employed with the wool, to give novelty and style effects, but this is used sparingly'-. Sorting has to be intensive, and the wool goes through many manufacturing processes before emerging as a smooth, strong yarn, which is woven into many' high-class materials, or knitted into fine fabrics. These products are generally high in style and finish, but also in. price.

It will thus be seen that even as far back as the classing stage distinctions have to be made between wools which reflect their ultimate manner of use and, consequently, their value; e.g., unsound wools are not suitable for the Worsted trade, and long, well-grown, ; shafty wools are too dear for the Woollen trade. It is throwing money away to mix wools of fundamentally different types.

New Zealand’s total wool production (on a greasy basis) for 1943-44 is estimated at 330,000,0001 b., which includes fleece wool, oddments, crutchings, wool on skins, slipe wool, and scoured wool, after necessary adjustments have been made to z the two, last-named classes to convert the weights to a greasy, basis.

As mentioned previously, precise information regarding the destination

and uses of our wool is lacking, but it is possible to mention , in a general way the sort of fabrics usually made from certain kinds of wool. It takes fine wool to make fine fabrics, and Merino is used for highquality underclothing, knitting yarns, high-class worsteds, and fine dress materials. The quarter-bred and halfbred types (including Corriedale) are used for a similar range of products to Merino wool, but with less emphasis on softness and more on durability. They are also used for flannels and high-quality travelling rugs and blankets. Three-quarter-breds and Fine Crossbreds are used for a wide

city and scouring, on an average, some 150,000 bales per annum. ' Wool Exports and Prices A Bradford man once naively remarked that the only certain thing about the wool market was its uncertainty. Many wool-producers will probably agree with him, but statistics show that wool is not alone in being subject to sudden and violent price fluctuations. Other well-known raw materials which enter into international trade, such as cotton, rubber, and wheat, show even greater average annual price fluctuations. Synthetic fibres, on the other hand, have been characterised by extremely stable

variety of purposes, including army uniforms, overcoating materials, knit-

ting yarns, ’ sports fabrics, rugs, and blankets, to mention but a few. Medium Crossbred is used for ma-

terials where durability is required, such ’ as' army battledress and overcoats, blankets, serges, and sports ,•, K j r tweeds. The coarser Crossbred types are used tor such things as upholstery materials, rugs, felts of various kinds, braid, etc. Lincoln wool may go into

carpets, furnishing fabrics, roller lappings, bunting, . etc. The Down type wools, which include the major portion of /the slipe wool (removed from skins at freezing works), have special properties which render them particularly suitable for such things as high-class hosiery materials and flannels. There are in New Zealand 14 woollen mills, which in normal times : consume 6,000,000 to 7,000,0001 b. of wool annually, and turn out a complete range of woollen and worsted products, including made-up garments and knitwear. Some of our mills are particularly celebrated for the exceedingly high-quality travelling rugs which they produce.

In addition, there are 27 woolscouring works in the country, which in the past have .fluctuated considerably in their output, but during the war have been working to full capa-

price levels, which have been artificially controlled by powerful cartels.

A concise picture of our wool exports, revenue, and average prices over many years is given in the graph on the next page. The exports and revenue are taken from official statistics, but the average price per lb. prior to 1922 has been derived indirectly, and may show minor inaccuracies, but is sufficiently near the mark to illustrate the general trend.

Synthetic Fibres v. Wool Anyone who reads the newspapers cannot help being aware of the ' constant discovery and development of new synthetic textile fibres, and the modifications and improvements to existing ones. We . hear ,of synthetics being produced from such diverse raw materials as coal and casein, soya beans and seaweed, peanuts and pulpwood. Their number is legion, and

each new arrival is heralded with a fanfare of sensational Press publicity, and fantastic claims of . wonderful new properties of warmth, strength, cheapness, and proof against this and that. When this smokescreen is dispersed what remains? A great deal, and more than enough to disturb the peace of mind' of the world’s wool-producers. Wool possesses ; a formidable list of valuable textile properties,, and so far no single synthetic material ; has been able to equal or better more than a few of these valuable attributes. Nevertheless, sheep-farmers can no longer afford - to. ignore these new fibres, and ■ merely rest on their laurels, with a false sense of security in the knowledge that ‘“wool is best.”. That slogan still remains true, but by an ever-diminishing margin. Some of the most able scientists in the world are continually striving after a fibre which will be the perfect substitute for wool, and that their efforts are not altogether unavailing is . shown not only by the range and diversity of new products emerging from the laboratory, but by the fact that one by one, and step by step, they are imitating the valuable attributes of wool. As yet the scientists have been unable to imitate the fundamental and very complex internal structure of the wool fibre, or its precise chemical make-up,, yet although these may seem

tasks of. insuperable difficulty, he would be a bold man to say that they ■will not one day be accomplished. All synthetic i fibres possess the enormous advantage over wool of being standardised products, strictly under control in regard to all their . properties. If the customer says, “The same again please,” he can be sure of getting a satisfactory repeat order. Unfortunately, he has not always this assurance when buying wool. Many of the synthetics possess, in addition, the advantage of low manufacturing cost and a stable price over long periods. When a textile manufacturer can buy standardised synthetic material for one-third the cost of wool in an. equivalent stage of manufacture it . is' not surprisingthat he seeks ways of using increasing quantities to blend with his -wool. In the final analysis, textile manufacturers owe no firm allegiance to wool, ■ for if they can use their machines on a blend, or even on 100 per cent, synthetic, and make a greater profit thereby, they are not likely to be unduly concerned about the welfare of the sheep-farmer. . Ah ; , It has been claimed that synthetic fibres are an adjunct rather than ‘ a competitor to wool, and that by skilful blending with wool cheap yet effective novelty effects can'be pro-

duced, which, result in increasing sales of wool. This is true, and it is also true that until the war began all the wool produced in the world was being sold and used each year. The question is: —lf synthetic fibres are being made better and better, cheaper and cheaper, more and more abundant, will there not come a time when they displace wool to a serious extent? The graph on the opposite page shows the startling growth in the production of synthetics. It can be seen that by 1940 they had equalled world production. of wool on a clean-scoured basis, which after all is the only fair way to compare x the two, for grease and dirt do not count. More recent figures are not at present available, but. the trend is plain. The displacement of wool has already begun, and it. has been practically completely . ousted from certain lines of production, such as women’s hosiery, part of the underwear trade, and also linings for suits and overcoats. Synthetic fibres have also put a stop to any really high prices being paid for woolthe peaks in the graph which in the past have helped to compensate for the depressions. As soon as wool prices get unduly , high synthetic fibres tend to be substituted for wool, and the normal law of supply and demand comes into operation to reduce the price of wool.'

Publicity, Research, Etc. In the past New Zealand sheepfarmers have tended to be ■ individualists, and have not been as closely organised as other sections of . the primary industries. This is hardly surprising on taking into account the size and location of the average sheep

station compared with other types of holdings, and the relatively' few occasions on which sheep-farmers have an opportunity to meet and discuss their problems. The only official body elected - to watch their interests was the New Zealand Sheepowners,’ Federation, which has now amalgamated with the New Zealand Farmers’ Union.

It was not until the depression of the early ’3o’s, when wool prices dropped to catastrophic levels, that producers really got together to consider ways and means of tackling the industry’s problems. These were thoroughly thrashed out in the course of the next few years, and on October 31, 1936, the Wool Industry Promotion Act was passed, which established a levy of 6d. per bale on all wool produced in New Zealand for publicity and research purposes. The New Zealand Wool Council was set up at ..the same time to administer the fund.

A large part of -the revenue collected went to provide New Zealand’s contribution to the work of the International Wool Secretariat in London. This body comprised a representative from each of the main Empire woolproducing —Australia, New Zealand, and South Africa—and there was close liaison between it and the Wool Councils in these three .countries. The International Wool Secretariator I.W.S. as it is commonly called— some excellent publicity work before the outbreak of war in 1939 seriously restricted its. activities. It did not carry out research directly, but sponsored various research projects which were undertaken by such bodies as the Woollen Manufacturers’ Research Association. As already mentioned, wool' possesses an extensive array of valuable textile properties, and one or two disadvantages. The I.W.S. initiated research on a number of these valuable properties, to back up with scientific facts what was already known in > a general way. These were the sound foundation, of their publicity programme. All propaganda for wool was based on accurate data, and a most ambitious advertising campaign was commenced. Wool’s drawbacks were not overlooked, and . research on these and their remedies —-such as non-shrink and moth-proofing, processeswas included in the programme, and promising results in these have been obtained. ' During the war years the secretariat has continued to function on a much-reduced scale, but has kept the main links in its organisation intact as a basis for future expansion. It is likely'that the I.W.S. will play an increasingly important part in the post-war organisation of the Empire wool industry, and its unrivalled fund of knowledge and experience will then be utilised to the full. Dr. I. Clunies Ross, one of the original members of the secretariat, summed up the position during his visit to New Zealand last year, when he said: — . Surely there is only one course to be taken by Australia and New \ Zealand, and that is to match the resources and efforts of the synthetic fibre producers with the far greater resources of the tens of

ARTIFICIAL AND SYNTHETIC FIBRES

PRACTICALLY all artificial fibres have one feature in E common raw material is first reduced to the form of a viscous liquid and then squirted through tiny nozzles, or ' spinnerets, into a coagulating bath where the thin fibres harden immediately. All characteristics of the fibre are under close control, and a highly-standardised product results. The fibres produced are originally in long, continuous filaments, and may be used in this form, but are more commonly cut up into short bundles—known as “staple fibre”in which

form they can readily be blended with wool. Cellulose, usually derived from wood, forms the raw material for by far the largest proportion of staple fibres, which go by such names as “Vistra,” “Fibro,” etc. Proteins derived from milk, soya beans, peanuts, etc., are the basis of another group of fibres, which are closer to wool in chemical make-up and general behaviour than the cellulose fibres, but still fall short of the genuine article in several important characteristics. Nylon is an example of a true synthetic fibre where the actual chemical molecule has been synthesised from simpler materials.

thousands of wool-growers and of the peoples and Governments of producing countries. There is no corporation under heaven with a similar capital investment or a comparable power. ... We must make up our minds that our effort will be on a scale never previously contemplated. We must take every step necessary to ensure, by research and extension, that loss from disease and inefficient production is reduced to a minimum. We must know what characters in wool are important for varying manufacturing purposes, and how by control of heredity and environment production policy may be modified to meet . changing market requirements 'with speed and efficiency. We in the producing countries, who alone are vitally concerned in wool’s future, must accept responsibility for textile research, to discover methods of improving the processing and manufacture of wool, and to find new modifications and uses for it, to demonstrate its virtues and versatility, and its relationship to human health.

and the Department of Agriculture. The work has been mainly confined to current problems on the production side, such as the detection and elimination of hairiness from stud flocks, the question of increasing fleece weight by suitable breeding and selection methods, and elimination of wool damage from branding materials. The manufacturers have been mainly concerned with their own current mill problems, and have no close liaison with the producer. Very little wool publicity has been carried out in this country, being confined almost solely to the displays at the Centennial Exhibition by the New Zealand Wool Council and those organised by the Department of Agriculture at the various Agricultural and Pastoral Shows. Specialised courses in sheep-farming are available at a number of agricultural high schools and at the two agricultural colleges, while instruction in wool-classing is given at several technical colleges, by Massey Agricultural College, by the Department of Agriculture, and by Canterbury Agricultural College. Unfortunately, the facilities available at a number of the technical colleges are inadequate and much of the teaching has to be done at night, which is most undesirable. At the present time Massey College possesses by far the most complete facilities for this work; and offers fulltime courses in the subject for resi-

dent students. Unfortunately, woolclassing is still mainly a seasonal industry, and to some extent must always remain so. Those who employ wool-classers —brokers, scourers, and farmers —have not yet demanded any registration or certification of classers on a basis of training and experience, and have no protection in this respect when employing men; nor have the classers been able to secure differential payment on a similar basis, such as obtains in other industries, so there is considerable room for improvement in this respect. The immediate future promises many reforms and changes in the wool industry, and should include an improvement in this important aspect.

Internal Parasites Much concern is felt in fanning circles because of the serious annual losses among sheep and calves due to the ravages of internal parasites. A bulletin has been prepared to cover all aspects of this problem, including short descriptions of the various common parasites encountered, and a summary of the methods of treatment available to the farmer. This bulletin, No. 171, is obtainable free from the Department of Agriculture at Auckland, Wellington, Christchurch, and Dunedin.

We must, through the International Wool Secretariat, show the people of the world and tell the people of the world what wool, as the product of modernised and revitalised industry, can do. We must recover old markets, and find new markets. Australia has put in hand plans for

an extensive programme of research and publicity, and intends to spend £600,000 on this in the first season. By the Wool Industry Act, 1944, the original New Zealand Wool Council was replaced by the New Zealand Wool Board, with an increased membership and wider powers. The new board took office on January 11, 1945, and one of its first acts was to send three delegates to the Empire Wool Conference in Britain. New Zealand’s future plans are not yet clearly defined, but will probably be announced after the return of the delegates.

In the past wool research has been carried out in New Zealand to the limit of the funds and personnel available, both of which have been very limited. Work has been done by Massey Agricultural College, the Department of Scientific and Industrial Research (working through Canterbury Agricultural College), the Wool Manufacturers’ Research Association,

[All photos on opposite page, except that at. bottom right, by T. Holden.]

[Photo at top right of opposite page by courtesy of N.Z. Loan and Mercantile' Agency Co.]

Name of Breed. 1 Stud Sheep [ Distinctive I breeds but | entered innot entered Flock Book. in Flock | Per cent. Distinctive | breeds but | not entered in Flock 1 Book 1 Per cent. 1 Total number. Total percentage. entered m Flock Book. Per cent. Merino • • • • 19,926 Lincoln . ' . . . 3,274 Romney , 271,827 Border Leicester ...12,651 English Leicester13,848 Shropshire . 769 Southdown ....... 155.681 Corriedale ....... 43,877 Half-bred . . 5,904 Ryeland 7,866 Other breeds ... ... . 3,191 Crossbreds and others • \ ' 19,926 3.274 271,827 . . 12,651 13,848 769 155.68143,877 5,904 7,866 3,191 \ — 1 0.06 0.01 0.82 0.04 0.04.0.00 0.47 ' 0.13 0.02 ' 0.02 ' 0.01 787,546 37,026 .5,695,326 29,399 15,147 .3,190 : 236,166 1,181,613 2,256,306 4,531 g®7,892 . — 2.37 0.11 17.16 0.09 0.05 0.01 " 0.71 3.56 6.80 • 0.01 0.02 ■ 807,472 ■ 40,300 5,967,153 42,050 28,995 3,859 391,847 1,225,490 2,262,210 12,397 - ll;083 — 22,407,342 807,4722.43 40,3000.12 5,967,15317.97 42,0500.13 28,9950.09 3,8590.01 391,8471.18 1,225,4903.69 2,262,2106.82 12,3970.04 11,0830.03 22,407,342 67.49 2.43 Lincoln Romney 0.12 Border Leicester .... English Leicester .... Shropshire Southdown 17.97 0.13 0.09 0.01 Corriedale J.. JL 8 Half-bred 3.69 Ryeland 6.82 Other breeds 0.04 Crossbreds and others .. 0.03 67.49 Grand Total .... ' 1 538,814 1.62 10,254,142 30.89 '■ 33,200,298 100.00

TABLE 3.—DISTRIBUTION OF BREEDS, 1944.

Season. (Year ended June). Estimated Total Wool Production. ’0001b. ; Total ■ Wool Exports. Percentage for export. -Percentage used ■ locally. Value of Wool Exports. £’000. Value of Wool sold at Auction or Appraised in N.Z. 1 ' ■£’000. . Average Price per Total (greasy) Wool lb. of Wool Exports.sold at' ’0001b. Auction or Percentage for export. Percentage used locally. Value of Wool Exports. £’000. Value of Wool sold at Auction or Appraised in N.Z. £’000. Appraisal. Average Price per (greasy) lb. of Wool sold at Auction or Appraisal. | - d. 1934-35 265,000 ' 200,385 96.7 3.3 6,328 4,486 d. 6.54 35-36 304,300 317,865 97.5 2.5 12,762 -10,083 9.13 36-37 302,900 286,465 97.5 2.5 18,771 15,344 15.71 37-38 296,800 258,619 97.6 2.4 12,326 9,028 10.04 ; 38-39 327,700 305,491 97.8 2.2 12,899 9,386 9.17 39-40 . 310,000 272,326 96.2 3.8 14,664 12,877 12.22 40-41 331,000 197,881 95.7 ■ 4.3 11,611 13,972 12.24 ■ 41-42 ' 345,000 ,238,921 95.3 4.7 14,437 14,499 12.25 ' 42-43 340,000 ' 248,565 95.1 4.9 15,216 16,803 13.95 43-44 330,000 - 244,431 94.8 5.2 16,307 15,811 13.97 [The apparent discrepancies between the second, third, and fourth columns are due to : a . varying carry-over caused by shipping difficulties.] caused by shipping difficulties.]

TABLE 5—WOOL PRODUCTION IN NEW ZEALAND. (From New Zealand Official Year Book and Dalgety’s Annual Wool Review).