06 Jun 2019

British Wool continues to perform well despite tough year

Despite an 'extremely challenging’ global cross-bred wool market, British Wool performed 'relatively well' last year.

The unforeseen US-China trade war coupled with Brexit uncertainty has resulted in a tough year, but British Wool has managed to maintain average prices in line with last season’s.

Trevor Richards, Chairman at British Wool, said this has been 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.”

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 we offer have been consistently higher than those offered by direct farm competitors for a number of years, and early indications from 2019 indicate this gap will increase even further over the coming season. We’re working on many new initiatives to maximise the value of producers’ wool.”

Such initiatives include a new marketing strategy which has gained traction over the past 12 months with the implementation of a new brand licensing scheme.

A new office in Shanghai, targeting the largest and fastest growing middle-class consumer market in the world is also another significant development for British Wool.

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