23 October 1998
NZ wool producers face poor season

NEW ZEALAND wool farmers are facing up to a very poor season because of a severe drought, low demand from overseas and a strong New Zealand dollar.

Prices for fine wools have fallen since the new selling season began in July. More falls are expected for the countrys merino farmers.

The fine wool indicator fell 59¢, or 8%, to a five-year low of NZ$6.46 (£2) at last weeks sales. The coarse or strong wool index fells 13¢, or 3.5%, to NZ$3.61.

Poor prices at recent sales have forced the New Zealand Wool Group to reduced its forecast returns for the season mainly because of the fall in the wool prices.