Wool proving to be the golden fleece

The British Wool Marketing Board has cancelled two of its last six sales of the June to June selling year to eke out remaining stocks, because demand has been so high. It expects 100 per cent clearance of stocks for the second year running.

Factors include exchange rates and production dips in big wool countries like New Zealand, Australia, Argentina and South Africa. But the wool board thinks a reviving interest in wool as a material is also involved.

The average price of the 30 types of wool it handles went up to 113p a kilo last month, compared to 73p in October and 70p last June. The average for the whole of the previous 12 months was 68p.

If the new price sustains for the four million kilos still left to sell, from last summer's clip, the average for the year will be 84p and farmers could get cheques averaging around 50p a kilo, compared to 34p last year.

If the price stayed up all next year – for wool clipped between May and June – the pay-out after wool board expenses could be close to 80p a kilo.

Average production from a sheep is 2.2 kilos and the average cost of a clip is 1.50.

Frank Langrish, Sussex sheep farmer and chairman of the BWMB, said this week: "It's good news for producers, who will see a noticeable improvement in their balance payment, even allowing for the fact that 65 per cent of wool was sold before the price increase.

"I believe this is the start of a trend that will see wool recognised for its qualities as a sustainable fibre at a time when the manufacturing processes of synthetic materials are increasingly at the mercy of volatile oil prices."

Mark Powell, chief marketing officer, agreed that reviving interest in wool was a factor, but pointed out that a decline in the British clip was also involved.

High prices for mutton meant old ewes were being butchered rather than kept and the board started the current selling season with 28.5 million kilos, against 31.3 the previous year.

The wool marketing board normally runs 22 sales over 12 months. The last one, which saw the new price record, was February 24.

One scheduled for Wednesday this week was cancelled. Another scheduled for April 28 has been cancelled.

That leaves sales to be held on March 24, April 14, May 12 and June 16, with interest high.