The Farmers Mart Jun-Jul 2019 - Issue 63 | Page 35

NSA NORTH SHEEP 35
• JUN/JUL 2019
ADDING VALUE TO PRODUCERS
AFTER an encouraging start, the
global cross-bred wool market
proved extremely challenging
in 2018 due to the unforeseen
US-China trade war. Increasing
uncertainty over Brexit also im-
pacted UK consumer confidence,
reducing demand for carpet wool
types.
Trevor Richards, Chairman at
British Wool, provides further
commentary, explaining the
market situation and pricing in
more detail. “Against this back-
drop of economic challenge, we
feel that British Wool has per-
formed relatively well, maintaining
average prices in line with last
season’s. This is highlighted when
benchmarking against the price of
New Zealand cross-bred wool –
historically our wool has sold at a
20% discount, but our prices have
been consistently higher during
2018.”
Index vs. New Zealand benchmarks (USD)
Mr Richards believes this success
is due in part to a more strategic
approach at auctions and the
launch of an agency buyer in July
2018, making it easier for new
buyers to access the auction. “This
initiative is already starting to have
a material impact on competition
in the auction room, which should
help support our prices moving
forward.”
The prices paid by British Wool
are consistently higher than
those offered by direct from farm
competition. Mr Richards explains
“The prices we offer have been
consistently higher for a number of
years, and early indications from
2019 indicate this gap will increase
even further over the coming sea-
son. We’re working on many new
initiatives to maximise the value of
producers’ wool.”
Such initiatives include a new
multi-channel end customer (con-
sumer and commercial) marketing
strategy which has gained real trac-
tion during the past 12 months with
the implementation of a new brand
licensing scheme.
Another significant and exciting
development is the opening of a
new office in Shanghai, targeting the
largest and fastest growing middle
class consumer market in the world.
Mr Richards explains “As well as
implementing our brand licens-
ing scheme in China, we are also
looking for new product opportu-
nities to help increase the value of
producers’ wool. I am pleased to
say that we have already received
our first order for new products and
anticipate good growth in this area
over the coming 12 months.”
Mr Richards concludes “We offer
a unique proposition for UK wool
producers – we’re dedicated to de-
veloping new market opportunities
and delivering value for our produc-
ers. Our work aims to achieve our
three key objectives – maximising
the price paid for British wool, con-
tinuously seeking to improve cost
effectively our reliable, convenient
and trusted service to our produc-
er members, and investing in and
supporting the future of the wool
industry through activities such as
shearing training”.
british wool pays more for your wool
Suffolk
£0.60/kg
Romney
£0.75/kg
Radnor
£0.56/kg
Texel/Lleyn
£0.66/kg
Welsh
£0.30/kg
Mule
£0.67/kg
Swaledale
£0.30/kg
Cheviot
£0.92/kg
Blackface
£0.45/kg
*Net value after all operating costs deducted and excluding VAT. Based on auction sales as at Spring 2019.
To find out more call us on 01274 688666 or visit our website at britishwool.org.uk
Together we’re growing something special.
1559_BW Breed Prices Advert_149.6x266.8mm AW.indd 1
06/06/2019 09:42