British Wool – Market Situation

The auction system has been a tried and tested method of selling products off the farm for generations with wool being no exception. British wool is sold across 20 remote online auctions throughout the year which enables British Wool to supply wool onto the market in a controlled way in order to maximise its value and reduce the risk around price volatility in the global market.

By collectively marketing on behalf of wool producers, working to drive demand, and selling wool through auction, British Wool returns the true market value to producers with each lot being sold to the highest bidder (assuming it has met the reserve price).

As reported in the last edition of Graze, we saw a strong end to the 2020 selling season and the market continues to recover in the 2021 selling season which started in July.

The sixth British Wool sale of the 2021 season took place today (5^th October) and despite challenges in terms of haulage, transport and energy prices, the wool market sees continuing strong demand and improving prices.

Since the start of the year auction prices have increased by over 40% with the average price in today’s sale reaching 77.5p per kilo.

Both of the UK scouring plants remain busy and we continue to see signs of recovery in the contract carpet sector.

Andrew Hogley, CEO, British Wool said: “We are optimistic the price recovery we have seen in recent months will continue during the course of the next year. With a healthier stock position, a reduced cost base and recovering auction prices this puts British Wool in a much stronger position to deliver better value to those producers who market their wool through the scheme in 2021.”

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