British Wool has confirmed the prices being paid to members for last year’s wool clip, with its chief executive admitting that the prices are “disappointing”.
British Wool has said a total of £6.6 million will be paid to its members this year for their 2022 wool, with exact prices depending on grade and type of wool.
Core grades will achieve 30p/kg; Blackface wool 20p/kg; Welsh Mountain wool 10p/kg; and 8p/kg for Swaldale.
Fleeces from organic flocks attract a premium of 70p/kg for core types and 20p/kg for the Welsh Mountain type. Members will receive a personalised letter this month confirming the total value of their 2022 wool.
Chief executive of British Wool, Andrew Hogley, said he expects British Wool members to be disappointed by the price amounts.
“We understand that prices will be disappointing to our members, particularly on the back of falling lamb prices and other difficulties in the wider industry. We are frustrated too,” he said.
“Global prices have been under pressure in recent months and this, alongside the cost inflation experienced by the wider industry, had created significant difficulties in the marketplace.
“As a farmers cooperative, the returns we offer our members are determined by the value we can achieve for the wool we sell on their behalf and the costs of bringing that wool to market.”
Short-lived recovery
Hogley said that, despite the pressure the sheep sector has been under recently, there have been some “positive signs of recovery in the wool market” since the Covid-19 pandemic.
However, he said with the war in Ukraine, the subsequent spike in energy prices have “reversed much of those improvements”.
“High energy costs and consumer confidence had led to a very challenging environment for all raw material suppliers including wool.
“The impact of high energy prices on the cost of processing wool has been enormous.
“Commercial scouring tariffs have increased by 30% over the past 12 months. Increased haulage rates and diesel prices had also been a significant challenge to the business.
Remaining optimistic
Despite the many difficulties faced by the industry, Hogley said British Wool has still been able to sell the wool achieving prices comparable to those in New Zealand.
“We are optimistic about the future and believe there is much to be positive about. Our focus on the environmental and sustainability credentials of British wool is gaining traction,” he said.
“Over the past year the number of brands with verified British wool product ranges has increased to more than 100.
“Increasingly we are seeing manufacturers willing to pay a premium for traceable British wool and we have invested in our systems that give full traceability back to the farm. Exploring new uses and markets for wool was ongoing too he said.”
Hogely said British Wool is encouraging sheep farmers to continue to support it as it continues to “navigate these difficult times”.
“We truly believe that with continued effort, determination, and innovation we can build a positive future for wool, but we all need to work together,” he said.
