Wool prices jump 70% in major turnaround for UK sheep sector

Sheep farmers are finally seeing wool become commercially valuable again after British wool prices climbed to their highest level in a decade, with returns forecast to cover shearing costs on many sheep units for the first time in years.

Some fleece types are now forecast to exceed £1/kg next year following a sharp recovery in demand and stronger auction returns across the market.

For many producers, the turnaround marks a dramatic shift after years in which wool was barely worth collecting, with some farmers choosing not to send fleeces to market at all because returns failed to cover shearing costs.

British Wool said average member returns for the 2025 clip year had risen by around 70% year-on-year, increasing from 40p/kg to 68p/kg.

Prices improved across all wool grades, with Cheviot wool reaching 85p/kg and many major commercial fleece types returning between 70p and 75p/kg.

Recent auction activity has also strengthened expectations for another positive year ahead, with some wool types forecast to exceed £1/kg during 2026.

The latest figures represent a major revival for the wool trade after years of weak prices and difficult conditions across the sheep sector.

National Sheep Association (NSA) Policy Manager Michael Priestley said the industry was finally seeing a significant improvement after several difficult years.

He said: “After several gloomy years of rock bottom prices the wool market has improved.”

Mr Priestley said stronger returns through the British Wool system meant many farmers could now expect wool sales to cover last year’s shearing costs across a wide range of breeds.

The National Sheep Association is encouraging farmers who previously kept wool on farm rather than selling it to reconsider as prices continue strengthening.

Mr Priestley said: “The message from British Wool is that those farmers who have left wool on the farm in previous years should send their clip in this time.”

He added that wool prices were currently around 70% higher than the previous year and forecast to rise further during 2026.

Welsh Mule wool rose from 44p/kg to 68p/kg last season and is forecast to reach around £1/kg next year, while Romney and Cheviot wool are expected to climb even higher.

The recovery comes as many sheep producers continue facing pressure from volatile lamb prices, rising costs and wider uncertainty across the livestock sector.

Covid disruption left huge volumes of wool unsold as demand from the hospitality and transport sectors collapsed, creating a major backlog across the industry.

With much of that surplus now cleared, demand and prices have strengthened sharply across the market.

Mr Priestley said British Wool staff had worked hard to rebuild demand across domestic and international markets.

He said more fleece types were now attracting premium prices, while sales of traceable wool had increased by 10%.

Retailers are increasingly turning to traceable British wool as brands place greater emphasis on sustainability and transparent supply chains.

The organisation also reported there are now 176 brands selling products containing British wool.

Concerns remain that confusion over overseas shearer visas could still affect labour availability during the shearing season.

However, the NSA said another year of visa concessions had now been confirmed, helping provide reassurance for sheep producers preparing for summer shearing.

Forecast average returns for 2026 suggest Cheviot wool could reach 109p/kg, Romney wool 105p/kg and Welsh Mule wool 103p/kg.

Even traditionally lower-value hill breeds including Welsh Mountain and Swaledale sheep are expected to see stronger returns compared with recent years.

After years when wool was barely worth collecting, many sheep farmers are finally seeing fleeces become financially worthwhile again.