British Wool has announced its first sustained price recovery since the pandemic, with a general rise of 20 percent across recent auctions.
Sold globally across several different markets and products, demand is growing across the world for British wool, the co-operative said.
This has been helped by the addition of three new buyers of scale at British Wool's auctions.
A drop in demand for wool products as a result of the Covid pandemic had severely impacted prices.
Graham Clark, British Wool's director of marketing, said that over the past few months, the co-op had seen a healthy improvement in both demand and prices at its auctions.
"Generally, prices have increased by 20 percent with some of the more sought-after types gaining 15p to 20p per kilo," he explained.
"Our auctions are more competitive than they have been in years with several new buyers entering the fray over the last couple of years.
"This, along with our promotional work, has had a positive impact on prices and means there is now genuine competition on all wool types.”
Over the past 12 months, British Wool said that it had further strengthened its brand licensing scheme with an additional 44 brands coming on board.
Now the organisation works with 130 brands across the globe which all use high proportions of British wool in their products.
Mr Clark said retail sales and consumer confidence remained an issue in the UK, but there had been improvements across other markets such as contract carpet plus good volume coming out of China.
He said: “Although we are still some way off where we need to be, these gains are very encouraging, and will help support member returns this year. We hope to see this trend continue into 2024.”
British Wool’s grading depots and collection sites remain open, and farmers who have wool on-farm have been urged to deliver it by the end of March.
