Despite the challenges facing the wool sector due to the Covid-19 pandemic, British Wool is collecting and receiving wool as usual.

The company’s network of depots and collection sites are ready to start receiving wool from producers – which, given the circumstances is quite an achievement. Also, following the Government guidance related to Covid-19, company has ensured that protocols are in place for the safety of producers as well as British Wool staff.

However, the Covid-19 pandemic has had a significant impact on the global wool market which affected British Wool before the rest of the UK due to the reduced demand from the Chinese market in January. The global cross bred wool market slowed significantly in February and then shut completely at the beginning of March and remains closed.

According to company, February to May is normally the busiest selling period of the year and, as a result, British Wool has approximately 7 million kgs extra of unsold 2019 clip wool on top of the approximately 3 million kgs that it would normally be carrying at this time of year.

The severe drop in demand for wool products coupled with the huge global overhang in cross bred wool stocks from the 2019 season is likely to severely impact prices for the next 12-18 months. It will also make the company’s longer term objective of repositioning British Wool as a premium product more challenging. However, finding new demand for 9ts wool in China at attractive prices will be a key driver of the early stages of recovery in British Wool prices.