British Wool scraps onward carriage fees for this season
© Tim Scrivener British Wool has announced plans to scrap its producer haulage charges ahead of the 2021 shearing season to help sheep farmers affected by poor wool prices.
Normally, producers are charged £5.15 for each wool sheet delivered to a British Wool Collection Centre.
But this year, British Wool said producers would not have to pay any fees for transporting wool to all approved collection sites.
See also: How to make the most of wool in a depressed market
The news will be welcomed by sheep farmers who have been dogged by poor wool prices following a crash in the global market last year.
Reasons cited for the price plunge have included a drop-off in demand for wool products as a result of the Covid-19 pandemic, growth in demand for synthetic fibres, Brexit uncertainty, and a huge global overhang in crossbred wool stocks combined with reduced demand in the Chinese market.
Current prices
According to the latest British Fleece Wool Price Indicator on 27 April, the price for returns of greasy wool at auction was 67p/kg, with clean wool fetching 100p/kg. Prices have climbed slowly since last spring, but analysts are not predicting a spike in prices this year.
Andrew Hogley, British Wool’s chief executive, said: “Abolishing the onward carriage fees for approved collection site demonstrates our commitment at British Wool in delivering a high level of service and also enhancing our service offer to producers.”
Mr Hogley said a small number of producers chose to hold on to their wool clip last year, in the hope that prices would improve.
But this meant British Wool handled less wool, which had a negative impact on its operating cost a kilogram.
“The more wool we handle, the more cost effective our operations become, which in turn allows us to return more value to all producers,” he said.
New collection sites
He encouraged sheep farmers to support British Wool and deliver their wool this year.
British Wool has opened new collection sites this season and it will communicate with producers directly on any changes to the drop-off arrangements in their local area.
Details on producer payments and the 2021 Producer Information & Wool Values Booklet will go live on the British Wool website on Friday 14 May.