A reduced clip in 2023 combined with an ongoing challenging market is resulting in wool returns similar to last year for British Wool members in 2024.

However, while most of core grades are up 1p or 2p per kg, mountain grades have slipped with Blackface medium falling from 23p to18p per kg; Herdwick is down from 40 to 10p and Swale has slipped from from 8p to 5p.

Most Shetland types have also slipped with the exception of white Shetland No 2 wool which has risen 10p on the year to 75p, while Shetland wool No 1 is valued at the same price – down from 81p last year. In contrast, Cheviot wool remains on a par with 2022 values at 32-33p per kg.

Medium, Mule and fine wools have risen slightly, and range from 29-32p up to 52p per kg for Zwartbles. The best returns are for Bluefaced Leicester blue/black wool at 600p per kg.

Jim Robertson, chairman of British Wool, said: “Prices strengthened in the autumn but have weakened again over the last two months with mountain wool types struggling all season.”

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He added that British Wool’s auction prices are on a par with those in New Zealand and that the market remains extremely challenging throughout the world.

One of the biggest issues last year he said was the co-operative handled 2500 tonnes less wool due to the fall in sheep numbers nationwide as a result of increased rewilding and forestry.

On average, the fleeces were also 10% lighter in 2023 due to the hot, dry weather of the previous year. “The decline in wool volumes reduced our returns by around 7p per kg. If we had handled the same weight as the previous year, many grades would have been up 20p per fleece. Every additional 500 tonnes we handle improves returns for all members by 1.5p per kg,” Mr Robertson said pointing out that plastics are wool’s greatest competitor.

“The rise of oil-based fibres over recent decades has driven down the value of wool. The world is however now starting to wake up to the environmental damage these fibres cause, and the sustainability credentials of wool.”

He said that differentiating the product away from commodity markets is adding value with new income streams making a growing contribution towards members’ payments. The traceability scheme generated £150,000, while grading for the Isle of Man and other initiatives also boosted returns.

British Wool has also increased the number of brands specifying British Wool by 50% over the past year. As a result, there are 153 licensees producing a wide range of products from British wool. Others such as John Lewis, Next and Marks and Spencer are also interested in using British wool.

“Driving demand for British wool is essential if we are to differentiate our clip from the commodity market. We have also broadened the bench of buyers in the auction over the past few years, which has led to much more competitive sales.”

However, Mr Robertson admitted wool prices remain below what they should be.

“We understand the recent wool prices have been disappointed to many, but with the initiatives we have in place, from traceability to our consumer marketing activity and our licensing scheme, we truly believe that the long-term outlook is encouraging. As such, we urge sheep farmers to continue supporting us as we continue to navigate these difficult times. Working together, we can build a positive future for wool.”