Wool price boost for sheep farmers

Demand for wool from the over side of the world means the region’s sheep farmers are in line to benefit from better returns for fleeces in the year ahead, the latest market analysis by the British Wool Marketing Board suggests.
..
.

The price of wool, sold through the board, has soared by 34 per cent in a year with a six-fold uplift in the volume sold recorded since this time a year ago.

The board’s latest sale saw the indicator price settle at 153p per kg, up from 114p per kg at the same sale last September.

Hide Ad
Hide Ad

Wool producers who sell the commodity through the board receive a set price throughout the year so to capitalise on the current price increase, farmers are being urged to present fleeces to the board during the current season.

Gareth Jones, the board’s producer communications manager, said: “The market is good, it’s an improving market and the benefits of the current market are going to be felt next year.” He said the increase in price and volume sold was a result of the competitive element of the board’s auction system, coupled with a falling global wool supply and a resurgent demand for the product from the fashion and interior design industries.

“There is no doubt that without the auction system, prices wouldn’t have risen to the levels they are at now and clearance rates would also be lower,” Mr Jones said.

“We started to see an uplift in demand at the last few sales in the 2012 selling season and this has continued into the new season.

Hide Ad
Hide Ad

“As with all commodities there is a big element of supply and demand involved in driving prices too and a falling global wool supply coupled with a resurgence in demand has helped boost trade.

“Guide prices for all wool types have been met, with many breed types easily exceeding the guide price issued at the start of the selling season.”

Mr Jones said the UK’s 2013 clip is estimated to be about 10 per cent lower than the 2012 clip as a result of lower average fleece weights and a reduced number of sheep being clipped due to heavy losses earlier in the year, but this in turn will help stimulate demand and prices.

“In the 2012 selling season BWMB sold 37m kg of wool, including a 5m carry over from the 2011 season.

Hide Ad
Hide Ad

“Having analysed the clips received to date we anticipate having 29m kg of wool to sell this selling season, with 33 per cent of that having already been sold. Clearly, the lower volume available will mean buyers have to bid strongly to secure the volumes they need.”

Mark Powell, the board’s chief operating officer, said the indications from across the globe were for a stronger wool trade in the coming months.

“There are no signs of demand slipping at the moment and the market in China, a key market for British wool, is continuing the rise seen earlier in 2013,” he said.

“Economies around the world look to be improving and there are clear signals of improvements in the UK and USA economies which will be of major benefit to wool sales.

Hide Ad
Hide Ad

“And on top of this there is a growing trend towards wool and natural fibres from both the fashion and interior design sectors.”

An event to celebrate the diversity of wool, as well as cotton, linen and silk fibres, is being held this weekend at Skipton Auction Mart.

The Yarndale Festival starts today and is an opportunity to peruse stalls selling an array of yarn, materials, haberdashery, kits and handicrafts.

Related topics: