British Wool has confirmed the prices being paid to farmers for last year’s wool clip, with the co-op saying they will be 'disappointing' to its members.
Core grades will achieve 30p per kg, the Blackface wool 20p/kg, Welsh Mountain wool 10p/kg and 8p/kg for Swaledale, British Wool said.
Fleeces from organic flocks attract a premium of 70p per kg for core types and 20p/kg for the Welsh Mountain type.
The prices come on the back of falling lamb prices and other difficulties in the wider sheep industry.
There had been positive signs of recovery in the wool market after the impact of the Covid, but the war in Ukraine and subsequent spike in energy prices reversed much of those improvements.
High energy costs and consumer confidence has led to a challenging environment for all raw material suppliers, including wool.
Andrew Hogley, CEO of the Bradford-based co-op said: “We are frustrated too. Global prices have been under pressure in recent months.
"This, alongside the cost inflation experienced by the wider industry, had created ‘significant difficulties’ in the marketplace.
“As a farmers cooperative, the returns we offer our members are determined by the value we can achieve for the wool we sell on their behalf and the costs of bringing that wool to market.
Mr Hogley said the impact of high energy prices on the cost of processing wool had been 'enormous', with commercial scouring tariffs rising by 30% over the past 12 months.
"Increased haulage rates and diesel prices had also been a significant challenge to the business," he said.
Despite these difficulties, British Wool has still been able to sell the wool achieving prices comparable to those in New Zealand.
The co-operative added that it was optimistic about the future, as it focuses on the environmental and sustainability credentials of British wool.
Over the past year, the number of brands with verified British wool product ranges has increased to more than 100.
Mr Hogley said: “Increasingly we are seeing manufacturers willing to pay a premium for traceable British wool and we have invested in our systems that give full traceability back to the farm.”
“We encourage sheep farmers to continue supporting us as we continue to navigate these difficult times."
