Economic implications of increased wool production
B.P. Philpott
Lincoln College, Canterbury
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Proceedings of the New Zealand Society of Animal Production.
1964, 24: 164-180
The paper analyses the implications of a national annual
increase by New Zealand producers of 5% in the production of wool
compared with the present long-term rate of increase of 3%. This, it is
estimated, would change the rate of world wool production increase from
about 2.2% p.a. to 2.6% p.a. and this, it is felt, could be readily
absorbed without change in wool price provided the world production of
synthetic fibres does not increase at more than about 10% p.a. Over the
past 10 years the rate of increase in world synthetics has slowed
markedly from 60% p.a. to about 25% p.a. in the last five years.
Provided adequate volume and price competition are provided by wool on
world markets, the annual rate of expansion (of synthetics may well fall
to 10% p.a., but if it fell to only 15%, it is estimated that this would
cause a wool price decline of only ¼d. per lb per annum.
It is further estimated that, to preserve stability of lamb prices in
the U.K., the rate of increase of lamb exports will have to be confined
to 1% pa. at most.
These factors, together with the increasing demand for mutton by eastern
countries, imply, amongst other things, the need for a rapid increase
in wool production and a change in the growth pattern of New Zealand
primary production so that less reliance is placed on increased lamb
production and more on wool and mutton.
Keywords: NZSAPAB;
Last Updated 24-08-2000
