Wool Sales Update from Andrew Hogley - CEO

Dear Member,

I am pleased to share some positive news regarding the wool market. Since the start of July, we have seen significantly better demand in our auctions and this has helped sale prices for your wool to reach their highest levels for four years.  Relative to this time last year average prices have increased by 17 pence per kilo.  This equates to approximately 40 pence per fleece.

Prices have improved for all types with Blackface, Mule, Cheviot Cross and Romney types seeing the strongest uplift.  Welsh Mountain and Swaledale types have seen an increase, but yet, this has not been to the same extent.

Demand has been driven by improved conditions in the contract carpet market.  Manufacturers we work with in this sector such as Brintons, Haima and Shanhua are seeing an improvement in trade.  Each of these companies specify British wool in the carpets that they supply to the leading hotel chains cruise ship industry.

In addition, the British Wool team has been actively working on a number of initiatives to enhance demand and improve pricing.

• To promote wool carpets in the residential sector we have launched a marketing campaign featuring Shaun the Sheep.  Over the next few weeks this will be rolled out to 2,000 retailers in the UK. British Wool has worked with several manufacturers on this promotion.  Our aim is to increase the market share of wool carpets, and thus drive further demand for your wool.
   
• Earlier this year we announced a strategic investment in NexGen Tree Shelters which has developed biodegradable tree shelters made from wool.  Our investment is helping NexGen to start commercial production and guaranteed that it will source its wool from British Wool’s members.  Over the medium term this should provide a much-needed increase in demand for Swaledale and Welsh Mountain wool and help reduce the use of single use plastic in our environment.
   
• British Wool is now working with more than 160 brands through our licensee scheme. As we head into Wool Month we’ll be showcasing and promoting many of these brands at press events to increase consumer awareness.

We all recognise that prices need to increase further to give you a better return for your wool.  The improved demand and success of these initiatives is however an encouraging step in the right direction.

Our depots and drop-off sites remain open.  If you still have wool on farm, please contact your local depot to arrange delivery.  (https://www.britishwool.org.uk/depot-network)

Thank you for your continued support.

Best regards,

Andrew

CEO, British Wool