Sheep producers will be receiving a “significantly higher” Wool Cheque from the British Wool Marketing Board (BWMB) this year, to reflect the record breaking demand for wool which has sent prices to the highest level for over a decade.

“Our wool producers will benefit from the substantial increase in auction prices over the last 12 months, reflecting the improved demand and the decline in UK wool production which was down to 28.6 m kg in 2009 compared with 31.2 m kg the year before. The annual wool clip in 2000 was 45.8 m kg, which shows the marked reduction that has occurred over the last decade,” according to BWMB Chief Executive Officer Ian Hartley.

He says that the average producer price for the 2009 clip is 48p/kg which includes an average Balance Payment paid to producers of 36p/kg.

Based on recent prices achieved at auctions held at the BWMB’s Bradford headquarters, there was every indication that next year would also see a “considerable increase” on the price sheep farmers will be paid in 2011.

Mr Hartley added, “Although we believe that the new – and very much higher price level – will be maintained for 2010, and hopefully for the foreseeable future, the BWMB has kept the 2010 Advance Payment made to sheep producers at roughly the same level, as history has shown us that unexpected crises, over which we have no control, can cause prices to fluctuate dramatically.”

This year the BWMB has provided more information in the way it identifies wool prices in an effort to provide producers with a clearer understanding of how their wool is valued. This year’s Price Schedule, which has been sent to all UK sheep farmers, relates the value of wool to individual breeds as well as to wool grades.

Source BWMB