What lies ahead for wool producers
"The clear leap that British wool has taken over the last 12 months is good news for both the British Wool Marketing Board (BWMB) and producers, but what does the future hold for us as wool producers," asked Meirionnydd NFU Cymru County Chairman Eifion Davies at a recent county meeting.
Speaking at a recent Meirionnydd NFU Cymru County Meeting, Gareth Jones, Producer Relations Manager for the BWMB explained that there is still a strong demand for the product resulting in higher prices for producers.
Mr Jones said, "The strong demand for wool continues with the seventh sale of the new selling season achieving a 100% clearance and the Wool Price Indicator, which is the average auction price of our main grades up to 127p k/g. The Price Indicator was around 73p a kilo in October of last year but tightening supplies have sent prices soaring. It’s good news for producers who will have seen an increased wool cheque this year, however, the full benefit of this strong market and price increase will not be felt by producers until next year, with the projected prices forecast by the board in the price schedule, already achieving higher prices at auction."
In a prominent sheep producing county, NFU Cymru members present at the meeting were keen to learn the value of Welsh Mountain wool.
Mr Jones explained, "In 2009 the value of Welsh Mountain wool was up to 45p k/g, projected prices based on sales in February to April 2010, as quoted in the price schedule was up to 80p k/g. The actual price based on the recent new season sales, in early October was up to 88p k/g."
Urging NFU Cymru members to continue supporting the BWMB, Gareth Jones said, "It is vital, now more than ever, that the board has the full support of all producers, as the more wool we handle the lower the cost per kilo to all producers. Any wool sold outside of the scheme is sold to our customers outside of the auction system at lower prices which reduces the value of wool to all producers. By having as much wool as possible to sell through the auction system, increasing demand and competition will ensure we get the highest price possible, which is to the benefit all producers. Due to limited supply and strong demand, two sales were cancelled during the last selling season. If at least one of these sales had taken place, as the market was strong and prices increasing, producers could have received even more for their wool this year."
Eifion Davies, ended, "We all welcome this news as the recent shift in wool prices has been simply overdue. Earlier this year a major promotional campaign was launched by HRH the Prince of Wales of Wales. The ’Campaign for Wool’ is a five year campaign to bring the natural and sustainable attributes of wool to the attention of textile buyers, retailers and ultimately the consumer. The aim is clearly to promote the use of more wool, make it fashionable and better understood, so that consumers are buying with knowledge, and can understand better how their choice makes a difference - a campaign that we all fully support."
