British Wool has welcomed the publication of Defra’s review into its operations, which called the co-operative 'vital' for the UK sheep supply chain.
The review recognised the co-op's role in the supply chain from collecting and marketing wool, as well as delivering shearing courses.
It highlighted the important function for farmers – particularly those with smaller flocks and in remote rural areas – who would otherwise be unable to create the economies of scale needed to sell their wool.
Defra's review also identified that many producers misunderstand what British Wool does, believing that it buys wool from them and sells on to make a profit.
This is not the case, and the review makes clear that the co-operative collects, grades and sells wool on behalf of its members.
In the review, Defra praised British Wool for its "strategy, ethos, and strong vision for the future", and it also made several recommendations to help future-proof the organisation.
Defra said: "British Wool has, in recent years, taken significant steps to put in place a modern and transparent approach to their governance, finances and relationship with members.
"This can be further supported through establishment of clearer relationship management structures and improved reporting and communication arrangements both with government and members."
The review added that British Wool had established infrastructure to deliver this universal service, but they faced 'ongoing challenges'.
These include the price of wool continuing to decline, continued decline in flock sizes, and the ongoing impacts of the global market closures caused by the pandemic.
Andrew Hogley, British Wool’s CEO, welcomed the review's findings: “Defra’s review recognises the vital role that British Wool plays in the wool sector, the value we add for our members, and our contribution to the wider wool industry in the UK."
Phil Stocker, chief executive of the National Sheep Association (NSA) also welcomed the review, adding: "The NSA views the future success of British Wool as being vital if our wool producing sector is to succeed financially at an industry level.”
John Royle, NFU chief livestock adviser, said the review came amid a challenging global market for wool.
"British Wool provides an essential service offering guaranteed collection, irrespective of wool type, location, quantity, and quality," he said.
"By grading and managing sales throughout the year they aim to achieve the best possible price for their members.”
