British Wool says 'confidence returns' as wool prices reach nine-year high
Confidence is returning to the wool industry as prices have hit a nine-year high, British Wool’s annual general meeting has heard.
Some of the Bradford-based cooperative’s 30,000 farmer members members celebrated “a year of positive progress” at the conference, reflecting renewed confidence across the UK wool sector.
Industry analysts say the last two months have seen a 27 per cent increase following a global decline in sheep numbers, along with eco-conscious shoppers switching to wool.
The meeting heard renewed confidence was being fuelled by rising wool prices, stronger consumer engagement and continued improvements in services for members.
British Wool revealed its latest auction, held earlier this month, achieved the highest average prices for nine years. The average auction price reached £1.21 per kg, compared to £1 per kg last season. The value of wool dropped significantly during the 1970s and 1980s due to the increasing use of synthetic materials for clothing and upholstery.
Such have been the low prices that farmers have received for fleeces in recent years that many fleeces have been burnt on farms across Yorkshire. However, wool sector analysts say demand is returning with the sharpest price increase in more than a decade recently being recorded.
“All core types are now trading at significantly higher levels than last season,” said British Wool chief executive Andrew Hogley said. “If current trends continue, our members can expect stronger returns in the year ahead. As a co-operative British Wool seeks to maximise the returns for all sheep farmers,” he said. “With prices having shown a further improvement over recent weeks, we encourage any members who still have wool on farm to send it in before the winter.”
The meeting also showcased a series of service improvements designed to make it easier for farmers to deliver and market their wool, including more convenient collection centres and enhanced support at regional depots. The NFU is supporting British Wool's call for producers to present their wool for sale, as the organisation reports its sharpest price increase in a decade.
As British Wool’s recent sale saw the most intense level of competition in the last decade, the NFU's Livestock Board is encouraging members to take advantage of the current price increases.
Prices in the sale in October increased by 14 per cent over the mid-September sale. Over the month the prices achieved in the British Wool auctions have increased by 22.5 per cent. British Wool says this trend mirrors price rises that have been seen in New Zealand with global demand for quality cross bred wools outstripping supplies.
NFU Livestock Board Vice Chair Oli Lee said sheep farmers were pleased to see prices reach some of their highest levels in a decade. He said: “The increases are being driven by a higher quality product than last season due to the dry weather meaning wool is whiter, strong demand and growing consumer interest.”
“With demand currently strong, we support British Wool's call for producers who still have wool on farm to send it in or arrange for collection before winter to have a better chance of getting a good price.”