British Wool says prices paid to members in 2024 will be similar to the previous year due to a reduced wool clip in 2023.
The marketing body handled 2,500 tonnes less wool in 2023 primarily due to lighter fleeces, with a typical member delivering 10% less wool in 2023 than in 2022.
Most core grades this year are up 1p or 2p per kg but Mountain grades are slightly lower, with British wool auction prices for the season on a par with New Zealand.
Jim Robertson, who is chairman of British Wool and farms over 1,700 acres near Langholm, says the overall wool intake weight is impacting the returns.
Average member delivered 10% less wool in 2023 than in 2022
He says prices strengthened in the autumn but have weakened again over the last two months with Mountain wool types struggling all season.
“Prices strengthened in the autumn but have weakened again over the last two months with Mountain wool types struggling all season,” said Mr Robertson.
“The decline in wool volumes reduced our returns by around 7p per kg.
“If we had handled the same weight as the previous year, many grades would have been up 20p per fleece.
“Every additional 500 tonnes we handle improves returns for all members by 1.5p per kg.”
Mountain wool types struggle all season
Mr Robertson says that the rise of oil-based fibres over recent decades has driven down the value of wool but that the world is now starting to “wake up” to the environmental damage these fibres cause and the sustainability credentials of wool.
“More brands are specifying British wool – we now have 153 licensees producing a wide range of products from our wool,” he said.
“Driving demand for British wool is essential if we are to differentiate our clip from the commodity market. We have also been successful in broadening the bench of buyers in the auction over the past few years which has led to much more competitive auctions.”
New income streams are also making a growing contribution towards members’ payments.
153 licensees producing products from British Wool
The traceability scheme generated £150,000, while grading for the Isle of Man and other initiatives also boosted returns.
“We understand the recent wool prices have been disappointing to many, including ourselves but we are committed to creating long-term value for sheep farmers,” said Mr Robertson.
“Sheep farmers can be a stronger force by supporting British Wool together.
“With the initiatives we have in place, from traceability to our consumer marketing activity and our licensing scheme, we truly believe that the long-term outlook is encouraging.
“As such, we urge sheep farmers to continue supporting us as we continue to navigate these difficult times. Working together, we can build a positive future for wool.”
