Strong Prices for British Wool
Strong prices and full clearance of British Wool was the message given to regional committees of the British Wool Marketing Board (Wool Board) as they attended their annual conference in Bradford this week.
The positive message on price was well received by the producers attending the conference to represent fellow sheep farmers across the UK. Average auction prices have increased from 70 pence per kg to £1.55 pence per kg and projected producer clip values for the 2010/11 season were very positive. Based on these prices next year’s average wool cheque will be nearly double last years and three times the average wool cheque of two years ago.
"We are seeing the value of these and other breeds achieve very strong prices in comparison to recent years. The demand is evident with full clearance at the sales so we are very hopeful that this trend will continue." Ian Hartley, CEO at the Wool Board said.
The increase in price was outlined as being the result of a combination of factors. The global decline in sheep numbers has resulted in a fall in the volume of the clip – since 2000 there has been a 40% fall in the UK clip from 44 million kgs to 28.5 million kgs – and this means there is less wool available to the textile industry. Secondly, the economic downturn had led to de-stocking in the textile industry, so manufacturers and spinners have no reserve stock to call on. Thirdly, the profile of wool has been raised with the Patronage of HRH The Prince of Wales and his Campaign for Wool.
"Price is all important to the sheep farmer as it is to any business, these prices are heading in the right direction – upwards - and the regional committee members are happy to see the consistency of the higher prices this year. We are increasingly confident that the earlier projections made in our Price Schedule will be met, if not exceeded." Frank Langrish, Chairman of the Wool Board said.