Wool prices rise but too late to save fleeing farmers
Last updated 05:17, Friday, 28 November 2008
THE number of sheep farmers in Britain has fallen by 14 per cent in the past three years, putting pressure on the industry’s association, the British Wool Marketing Board (BWMB).
A similar decline has been recorded in New Zealand and the crisis was discussed at the BWMB annual conference in Bradford.
Ian Hartley, chief executive of the BWMB, said: “Between 2005 and 2008, both the clip weight and number of producers reduced by 14 per cent.
“These figures highlight the problems faced by the board in planning future operations, when 76 per cent of our costs directly relate to the number of depots and their staffing.”
He said that changes to the Board’s depot structure had saved around £750,000 through redundancies and by not replacing executive posts.
Guest speaker Mike Petersen, chairman of Meat and Wool New Zealand, told the conference that the situation in New Zealand mirrors that of the UK.
He forecast that for 2009 lamb numbers would be down by six million, and ewes down by three million in his country.
Wool prices have recovered slightly over the past 24 months as prices have increased by 10p a kilo.
The conference heard that the board was working with a leading bed manufacturer to promote its British wool-filled mattresses and that DIY chain B&Q was now selling wool insulation produced by Cumbria-based licensee Second Nature.
BWMB chairman Frank Langrish said: “Another decrease in the number of sheep and the weight of wool puts more pressure on the sheep farming infrastructure, from abattoirs to wool depots and to the wider textile industry.”
The creation of the Wool Industry Network in New Zealand – which includes Wool Partners International and Wool Grower Holdings – was a “model for change” in wool marketing, said Mr Petersen.
The new co-operative is seeking to consolidate the clip, unify wool growers, collaborate with the industry and innovate in the market.
