Wool weathering the price storm

While reduced demand from China and the uncertainties of Brexit have added additional challenges to the global wool market over the last 12 months, British wool has been weathering the storm – with stable auction prices and good clearance rates throughout the season.

Speaking this week, British Wool chairman Trevor Richards said the market was recognising the value of British wool, with good demand from buyers: “If we look back 12 months ago, prices for British wool were 20 per cent low- er than New Zealand wool. Recent months have seen that gap close, with a premium being paid for some British types.”

Richards added that it was worth remembering that British Wool paid more than the competition buying wool direct from farmers: “That’s because we are a producer organisation, standing up for producers’ best interests.”

He said the more sheep farmers who marketed their wool through British Wool, the better the returns for every producer.

“This is why we’ve recently launched initiatives like our new entrants scheme, which provides early years cash flow support to farmers who are new to wool production,” he said.

The organisation’s chief executive, Joe Farren, said that it was important that producers thought about the future and implemented a strategy to ensure long-term success.

“This is where British Wool comes into its own,” he said. “We have a strategic role to play in assessing and developing new market opportunities, and increasing consumer demand for British wool. Initiatives like this will deliver greater rewards across the long-term, securing the future of the wool industry.”