Positive news on wool prices

FOR sheep farmers who have endured the tough winter, the coming of spring has brought with it an optimistic view on better wool prices this year.

According to Ian Hartley, chief executive of the British Wool Marketing Board, which handles almost all of the wool clip in the UK, producers' returns will be much higher than they have been in recent years.

On the BWMB's fortnightly auctions, Blackface wool has risen between 55 per cent and 87 per cent since last December, reaching 93p per kilo. This will give producers a small second payment from the 2009 clip.

Mark Powell, who sells the wool on behalf of the BWMB, said these prices came after a season where it was necessary to closely control the release of wool on to the market.

He said: "These prices came in at the end of the season and whilst cheques will be significantly better this year, the true benefit of the strong market will not be felt until next season."

Hartley added that he expected prices to be up on a year ago, with the average price per fleece coming in between 1.50 and 2, against an average shearing cost of about a 1 per head.

The market for wool has been heavily affected by the wider economic downturn, mainly because the majority sold in the UK goes to the carpet industry.

However, a bigger influence in the world wool market is the attitude of the Chinese. They are now back in the market buying wool and this is one reason why prices are strengthening.