'Collaboration key to growing market returns for wool': Farming industry urged to get behind British wool

Past 12 months has seen price volatility in the market place
Past 12 months has seen price volatility in the market place

As the shearing season gets underway, the NFU is showing its support for the work of the British Wool Marketing Board (BWMB).

The non-profit organisation has been collecting, grading, promoting and selling great British fleece wool since the 1950s and represents 45,000 wool producers, returning the market price for their wool, less its own costs.

The BWMB is essentially a farmers’ co-operative involved in all aspects of the industry from farm to product – shearing, grading, auction and marketing/promotion, supporting the future of the UK sheep sector.

It has its own training division for shearers and trains approximately 1,000 shearers per year, investing in the future.

NFU livestock board chairman Charles Sercombe said: "Clearly, working together and collaboration are key to growing the market returns for wool which unfortunately remain relatively poor.

"We’ve seen over the past 12 months price volatility in the market place and challenging times across the livestock sector.

"Although price volatility is something as an industry we have to accept and adapt to, the wool sector has seen little change in value.

"How we grow its value to the producer is an ongoing challenge.

"So with a producer organisation such as the BWMB, we continue to rely on them to achieve the best possible returns for producers.

"This collective strength also ensures wool producers can maximise the value of their wool – wool is a global commodity and British wool amounts to only two per cent of the world’s wool production.

"Therefore, having a strong producer organisation to compete in this global market is essential.

"I want to see a real commitment from the BWMB, working with our sheep farmers to promote wool on a global scale in order to achieve the best possible price."

The wool market has been struggling globally as a result of the strong sterling for most of the selling season. This resulted in a lower return for producers this year compared to 2015.

'Wool prices under pressure'

BWMB chairman Ian Buchanan explained: "It is no secret that wool prices are under pressure this year, resulting in producer returns being lower than in 2015, as is the case for wool producers across the globe.

"This is a result of the strong sterling for most of the selling season coupled with a weak New Zealand dollar."

Looking at the UK in particular Mr Buchanan said prices for some breeds may be harder hit than others due to a downturn in the demand for carpet style wools.

"In the last six months there has been a continued demand for the fine and medium wools as a result of Chinese interest.

"It would be easy to look at the overall average price for all wools, however, of greater interest and importance are the individual breed prices."

Fine and medium wools such as Texel and Lleyn wool are expected to average £1.02/kg, with Cheviot wool at £1.20/kg and Romney wool around £1.12/kg.

"The carpet wool market has been tougher, due to tight price boundaries being pushed by retailers and the increasing use of polypropylene.

"On the lowest end of the scale we expect Swaledale wool to make in the region of 40p/kg, Blackface an average of 61p/kg and Welsh wool about 45p/kg based on current market trends in recent months.

"Of course no one wants to see wool prices slipping and that is why BWMB is investing in new marketing initiatives to drive demand."