British wool prices have increased by 10p/kg from 2006 as the market has begun to gain momentum, the British Wool Marketing Board has said.

Average wool prices reached 76.5p/kg at the first British wool sale of the year, up from 66p/kg in 2006.

According to BWMB, the prices achieved showed the market had become brisker and returns were “very good”.

Based on these figures, the BWMB said balance payments next year should be about 30-35p/kg for this year’s clip.

With the advance payment, the 2007 clip should have an average value of about 40-45p/kg.

Mr Mark Powell, BWMB wool marketing manager, said the sale showed “great potential”.

“Supply and demand is a vital part of the wool chain and the continuous support of the producer is vital to uphold this rise in market interest and British Wool prices,” he added.