
Cattle may be the all-pervasive livestock industry in the North Queensland Register's coverage area these days but in 1991, there was a lot of interest in the federal government's decision to abolish the reserve price scheme for wool.
Winton grazier Noel Kennedy, chairman of the Central and Northern Graziers' Association sheep and wool council, said the government would place the Australian wool industry on social welfare by offering carry-on funding for debt reconstruction, farm improvements, household support and counselling.
Advertisement
Proceeds from the next round of wool sales were expected to fall from what would have been a floor price maintained reserve of between $4.5 and $5 billion to what would be a wild market return of around $1 to $2 billion.
Mr Kennedy's grim predictions encompassed global wool processors who he said might turn to fibres offering a stable price and easier access.
Australia was looking at a production output of one billion kilograms at a time when worldwide demand was set at around 650 million kg.
"All this excess will be thrown onto the market and sacrificed," Mr Kennedy said, suggesting further that wool would become a commodity of speculation controlled by just a handful of financiers around the world.
"The market in the northerly areas of Queensland will fall well below the cost of production," he predicted. "Wool of 24 to 25 microns could not pay the cost of shearing. I hope I'm wrong."
Sheep slaughter
Another ramification of the floor price crash was the suggestion of an "aggressive flock reduction scheme", which wool industry identity Sir William Gunn rejected.
"I'm strongly opposed to the opposition plan to shoot sheep and to have a quota on wool production," he said.
He added that the only way wool growing would be profitable in the future would be to increase wool production and price, to absorb the increasing costs of wool production.
- This story first appeared in the North Queensland Register's 130 year souvenir edition.
ALSO READ:

Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications.