Farmers’ Union of Wales officials have discussed the opportunities and challenges facing the wool industry with representatives from British Wool at their grading depot in Newtown.
Speaking after the visit, FUW President Glyn Roberts said: “We had a constructive meeting with British Wool which allowed us to discuss how local, national and global influences have an impact on commodity markets and subsequently on our members.”
During the pandemic, the reduced demand for wool from China meant that UK producers received average balance payments of 17 pence per kg for the 2019 clip, some 70% less than the payments received in the previous year.
“While global wool prices have recovered to a point, the cost of wool scouring alone has increased by 30% over the past 12 months. This, along with cost of living pressures on consumers, will likely be reflected by the prices British Wool will be able to pay farmers for last year's clip.
“However, we heard how British Wool continues to engage with its producers, improve efficiencies and work with end brands to provide the best possible returns. We have a role to play in promoting this excellent natural fibre and lobbying the Welsh Government to include Welsh wool in its procurement policies,” said the Union President.
The outcome of the recent Defra review into the current model of British Wool also means that amendments to the 1950 order can be brought forward with the hope that becoming an independent body in future will allow them to make the most of existing markets and respond more effectively to commercial challenges.
“I would like to thank British Wool for their warm welcome to the Newtown depot and for the constructive discussions around the future of British Wool and how we can actively promote this important fibre,” added Mr Roberts.