Sheep farmers see wool returns climb towards £1/kg

Sheep farmers could finally see wool cover the cost of shearing this season as producer returns continue to recover.

British Wool has indicated that some core wool types could return more than £1/kg for the 2026 clip, compared with an average producer payment of 68p/kg last season and 40p/kg two seasons ago.

At £1/kg, a 2.5kg fleece would be worth £2.50 — enough to cover the £1.93 guide rate for shearing a ewe, leaving 57p.

The National Sheep Association (NSA) has welcomed the stronger market, saying the 2026 season could mark a significant improvement after years in which shearing has often cost more than the fleece was worth.

British Wool has reported an average auction price of £1.70/kg across its first four sales, around 70p/kg higher than at the same stage last year. Around 3,000 tonnes of new-season wool have been sold, with clearance rates in the latest three sales close to 90%.

While auction prices are not the same as payments received by farmers, producer returns have also improved, with the average payment for the 2025 clip reaching 68p/kg — the highest level in a decade.

For the 2026 clip, British Wool has indicated a further rise of around 25p to 30p/kg, although final payments have not yet been confirmed.

The value of a tonne of wool has also risen sharply, from around £400 two seasons ago to £680 last season. On the current outlook, that could increase to between £930 and £980 for the 2026 clip.

NSA chief executive Phil Stocker said the improvement would be welcomed by producers after a difficult year.

“This is welcome news. Sheep farmers have been dealing with bluetongue and wildfires, due to the extreme heat. For many flocks, shearing has been an essential welfare job done at a loss.”

He added: “Two seasons ago the average payment was 40p/kg. There is now a real prospect of £1/kg for core types. Wool is natural, renewable, biodegradable and hard wearing. It is good to see the market starting to value it properly.”

However, Stocker cautioned that the recovery was not being felt equally across all wool types.

“Hill and mountain wools still have ground to make up, and this is where the recovery most needs to reach.”

The NSA has argued that stronger returns are particularly important for upland flocks, where wool income can make a difference to overall viability.

Stocker said additional income could also help keep grazing sheep on the hills, where the association believes they can play a role in reducing moorland wildfire risk.

“Every income stream that helps keep upland flocks’ viable helps keep them on the hill.”

The NSA is encouraging farmers with wool still stored on farm to move it into the supply chain through British Wool or Ulster Wool depots and collection points.

“The recovery now needs to be sustained. NSA encourages anyone with wool still on farm to get it to a British Wool or Ulster Wool depot or drop-off point. Every manufacturer, retailer and shopper choosing British wool helps keep this going.”

While the outlook is stronger for some core wool types, the association said the next challenge is ensuring the improvement reaches hill and mountain producers as well.