New Zealand wool has always been marketed by auction, except during the two world wars. This seems the most satisfactory method for a nonperishable commodity, though it has been criticised at times. No guaranteed price scheme has ever been seriously considered, though it has been possible to set up a minimum price scheme as an aftermath of the Second World War. Wool funds of £25 million were accumulated indirectly, mainly from profits on wool remaining unsold at the end of the war. These funds form the basis of a minimum price scheme. The Wool Commission was set up by statute to give effect to the scheme. The Commission (like the Meat Export Committee) determines a yearly schedule of minimum prices for each class of wool, but because of the auction system only the general average (not the detail) is published. This average has been 33d. a pound since 1957–58.

The Commission employs buyers to buy wool which might otherwise fall below the minimum price. This wool is stored and resold when prices improve. Thus the fund could be self-perpetuating if there is not too severe and too prolonged a drop in prices. The Commission bought heavily in the 1958–59 season, but, because of a later price rise, finished up with a profit. This is possible with wool, partly because it can be stored and partly because the minimum prices have been set conservatively in relation to likely trends in market prices. As with meat, the Government is not committed to finance the scheme if the fund is spent.