Prices for 2022 wool affected by ‘inflation’ and ‘consumer confidence’, British Wool says
24th May 2023
Having confirmed payments for last year’s wool clip, British Wool acknowledged the prices will be disappointing to members and said the organisation is doing everything it can to navigate what is currently a ‘very challenging environment’ for raw material suppliers.
A total payout of £6.6 million was confirmed to British Wool members this year, with exact prices depending on grade and type of wool. Members will be receiving a personalised letter in mid-May detailing the total value of their 2022 wool with core grades achieving 30p/kg, the Blackface wool 20p/kg, Welsh Mountain wool 10p/kg and 8p/kg for Swaledale.
Meanwhile, fleeces from organic flocks will be receiving a premium of 70p/kg for core types and 20p/kg for the Welsh Mountain type.
Andrew Hogley, CEO of British Wool, said the prices are ‘frustrating’ and have been driven down by inflation and global pressures experienced in recent months, which 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,” Mr Hogley explained.
“There had been positive signs of recovery in the wool market after the devastating impact of the Covid pandemic, however the war in Ukraine and subsequent spike in energy prices 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,” he added. “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.”
Despite these difficulties, British Wool has achieved prices comparable to those in New Zealand and believes there is much to be optimistic about in the future.
“Our focus on the environmental and sustainability credentials of British wool is gaining traction. Over the past year the number of brands with verified British wool product ranges has increased to more than 100,” Mr Hogley pointed out.
“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.
“We encourage sheep farmers to continue supporting us as we continue 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 concluded.
