Auction prices for wool are down by 13 per cent on average against last year, according the British Wool Marketing Board (BWMB).
The association's chairman, Ian Buchanan, told FarmingUK that the global market for wool had been challenging over the last 12 months.
Exports of British wool to China were down on four years ago, but the chairman said that BWMB was planning a new marketing campaign to explain the benefits of woollen carpets to consumers and, hopefully, boost sales.
“We have a new marketing manager, a new marketing strategy from September, and we need to focus on the end user,” he said.
“Over 50 per cent of our wool goes into floor coverings - carpets.
“We have to focus on that because that is the real bread and butter of our business and we will be concentrating more on the carpet industry,” said Ian Buchanan.
'Uncertain and volatile'
British Wool says that signs from recent auctions have been more encouraging but it says that the market is increasingly uncertain and volatile.
“The market this last year has been a difficult market,” said Ian Buchanan.
“Prices on average - and I don't like to use averages because different breeds are up and down - but on average the latest auction prices this Spring compared to the previous year's prices were 13 per cent down on the previous year.
“We think the reason for that is there's just less wool going into China. It's always the cream that makes a difference at the top of the milk and there's less milk - or wool - going into China.
“We reckon there's now about 25 per cent of the clip now going into China, whereas maybe four years ago it was 35 per cent. They're looking for a finer Merino type of wool and we have a coarser, carpet type of wools.”
British Wool says there are some tentative signs that the Chinese market may be picking up.
“We have a quality product. There's (sic) companies in China that want British wool for their carpets,” said the British Wool chairman, who said that the UK fibre offered significant benefits in carpets.
It offered longevity compared with other materials, it had a natural "bounceability" and it was not flammable.
'Fantastic story to tell'
British Wool's head of marketing, Graham Clark, said that wool had a fantastic story to tell. He said it would be his job to educate consumers about why they should buy a wool carpet.
British Wool says it has been speaking to manufacturers and has had an encouraging response, but Graham Clark said it was consumers that he was targeting.
“We have to think like a manufacturer when it comes to marketing,” he said.
The benefits of using wool for clothing, fabrics, furnishing and flooring were discussed recently at the International Wool Textile Organisation’s annual congress, which was held this year in the United Kingdom for the first time in nearly 20 years.
Some 300 delegates from countries like New Zealand, Australia, Argentina and Uruguay attended the event in Harrogate, Yorkshire.
Ian Buchanan said during the event: “We have an incredibly varied wool clip in the UK and provide variety to the textile industry.
“Our flocks grow good really strong wool and it is perfect for quality carpets being naturally bulky and robust.
“British Wool is far superior to man-made fibres, maintaining excellent appearance and, of course, comes with our fantastic rural heritage that consumers can really appreciate.”
60 different breeds
There are more than 60 different breeds of sheep in the United Kingdom - more than in any country - providing, says British Wool, a wide range of natural colours and textures for fabric and carpet manufacturers.
The British Wool Marketing Board was established as a farmer run organisation in 1950, collecting, grading and selling the wool through a central, computerised auction system.
It also promotes the use of wool. Its Campaign for Wool, which has been publicly supported by the Prince of Wales, has created a cross-industry coalition to promote wool as a natural, sustainable fibre for fashion and interiors.
Those involved in the campaign include leading figures from the fashion industry, interior design, wool carpet manufacturers and representatives of the insulation and building industries.
Modernise business
British Wool is a non-profit making organisation. Even so, Ian Buchanan said that the organisation had been making strenuous efforts to cut costs over the last year at a time when prices had been down.
“This year within the board the budget for this current year's handling costs have been reduced by seven per cent in one year - seven per cent down. I would anticipate a further up to seven per cent in the next two to three years trimmed off operating costs per kilo,” he said.
British Wool says it is working to modernise the business and improve efficiency at every level. It says that early signs have been encouraging and it believes more savings can be made.
“I think there is reason for optimism,” said Ian Buchanan.
The British Wool chairman said that, although average auction prices were down year-on-year, one encouraging sign was that for the first time ever British wool was achieving the same price as New Zealand wool in US dollar terms.
