Wool payments for UK farmers set to increase

30 May '12

2 min read

Sheep farmers marketing their wool through the British Wool Marketing Board are set to benefit from a further 22p/kg rise in wool payments this year.

The increase in wool payments, the fourth in consecutive years, comes on the back of strong worldwide demand, notably in the emerging economy of China explained BWMB Chief Executive Ian Hartley.

Addressing a meeting of BWMB Regional Committee members at the Farmers Club in London, Mr Hartley said:

“The increase payments have come as a result of the competitive auction system used by the BWMB to trade all the wool it sells. The average clip value this year will be £1.24/kg, representing a significantly increased return for producers. This will be a welcome boost to farm incomes, particularly as lamb values have been hit in recent weeks by the shift in the exchange rate,".

Meanwhile, BWMB Board Member Trevor Richards said there had been an increase in production in 2011, with volume up by 6% across the UK. "This bodes well for the wool market as demand is still strong from across the world and sheep populations have fallen in the major wool producing nations in recent years," he explained.

It should be remembered that the collective strength producers have by marketing through BWMB is unrivalled in the wool market and allows BWMB to maximise wool prices for members," said Mr Richards.

Although the overall economic outlook is not as positive we hope to see prices maintained for the 2012 season said Mr Hartley.

Mr Hartley said the BWMB was working hard to ensure British wool was well promoted across the globe with much of this work being done in tandem with the Campaign for Wool (CfW) of which BWMB is a founding partner.

"The CfW continues to go from strength to strength and in 2012 is entering new territory with major campaigns in China, France and the USA. This year will also see CfW support the Queen's Jubilee celebrations as well as building on the work done in both 2010 and 2011."

Mr Hartley said overall the BWMB was in a good position and once again producers were set to see their income from wool increase on last year. "We are confident of another good year and look forward to working with them to maximise the value of their wool in the coming season."

British Wool Marketing Board

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