Unsold wool will "severely impact" prices
Website Editor • May 7, 2020
British Wool has circa 7m kgs extra of unsold 2019 clip wool on top of the circa 3m kgs that it would normally be carrying at this time of year due to the Covid-19 crisis which is likely to "severely impact prices".
In a business update from British Wool, the organisation said the pandemic has had a significant impact on the global wool market which affected British Wool before the rest of the UK due to the reduced demand from the Chinese market in January.
The global cross bred wool market slowed significantly in February and then shut completely at the beginning of March and remains closed. February to May is normally the busiest selling period of the year and, as a result, British Wool has circa 7m kgs extra of unsold 2019 clip wool on top of the circa 3m kgs that it would normally be carrying at this time of year.
The market closed in New Zealand at the same time meaning that New Zealand wool agents and auctions will also be carrying significant unsold stock.
Joe Farren, CEO at British Wool says: "The severe, hopefully short term, drop in demand for wool products coupled with the huge global overhang in cross bred wool stocks from the 2019 season is likely to severely impact prices for the next 12-18 months.
"Wool producers can be assured that British Wool will be at the forefront of leading the growth and renewal of wool values, but this will take time., he said. "We will emerge stronger from this period."
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