British Wool confirms payments for 2022 wool
British Wool has confirmed the prices being paid to members for last year’s wool clip.
A total of £6.6 million will be paid to members this year with exact prices depending on grade and type of wool. Members will be receiving a personalised letter in mid-May confirming 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.
Fleeces from organic flocks attract a premium of 70p/kg for core types and 20p/kg for the Welsh Mountain type.
Andrew Hogley, CEO, British Wool said: “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. 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, he added.
“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,” he said. “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,” explained Mr Hogley. “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, he said.
Despite these difficulties, British Wool has still been able to sell the wool achieving prices comparable to those in New Zealand.
Mr Hogley concluded: “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. 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.
“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.”