REDUCED demand for all types of wool but in particular, carpet style, coupled with unfavourable exchange rates, will affect prices paid to sheep producers this year.

That was the warning from British Wool Marketing Board chairman, Ian Buchanan, who said that in such a tough global market, the Board is working hard to maximise producer returns through a range of new marketing initiatives.

"It is no secret that wool prices are under pressure this year, resulting in producer returns being lower than in 2015, as is the case for wool producers across the globe," said Mr Buchanan. "This is a result of the strong sterling for most of the selling season coupled with a weak New Zealand dollar.

He said it would be easy to look at the overall average price for all wools, however, of greater interest and importance are the individual breed prices.

"In the last six months there has been a continued demand for the fine and medium wools as a result of Chinese interest.

"Fine and medium wools such as Texel and Lleyn wool are expected to average £1.02/kg, with Cheviot wool at £1.20/kg and Romney wool around £1.12/kg."

"The carpet wool market has been tougher, due to tight price boundaries being pushed by retailers and the increasing use of polypropylene."

"On the lowest end of the scale we expect Swaledale wool to make in the region of 40p/kg, Blackface an average of 61p/kg and Welsh wool about 45p/kg based on current market trends in recent months."

To combat these price falls, the BWMB has nevertheless invested in new marketing initiatives to drive demand.

In March, with support from the Campaign for Wool (CfW), the Board launched a new trade show for carpets held in London.

"This was the first show of its kind held in London and was well supported by the UK carpet industry and was aimed specifically at carpet retailers, manufacturers and the interior design sector.

"The UK is still a major market for using British wool in carpets and with a difficult retail market in the UK, the show proved timely and successful, with commitments from the manufacturers already for next year's show."

Clearance rates at BWMB auction sales over the last few months have nevertheless been strong and there is still demand for quality British wools, said Mr Buchanan.

"The BWMB is the only way to achieve the true market value for your wool. The wool market, by its nature, will always be a competitive one and through its collaborative and cooperative nature BWMB is well placed to deliver the best returns for producers.