With a new office now open in Shanghai and plans to launch a brand, British Wool is eyeing potential expansion in the Chinese market.

“A small percentage lift in Chinese demand would have a big impact,” said British Wool board member and Ulster Wool chair Brendan Kelly, at a briefing for journalists last week.

At present, around 25% of UK wool ends up exported in greasy form to the Chinese market. That figure has been relatively stable in recent years, but British Wool believes there are opportunities to grow the market by working further along the wool supply chain in China.

In the UK market, carpet manufacture remains the main outlet, but Kelly maintains more can be done to add value, especially in clothing, and to promote wool as being a sustainable product.

With British Wool set up as a co-operative-type structure, it collects and sells wool on behalf of farmers and passes back the best possible return. To keep unit costs down in NI, Ulster Wool remains keen to attract more suppliers, with an estimated 800,000kg out of a total clip of 2m kg sold to Republic of Ireland-based buyers rather than Ulster Wool.

“It would make a big difference if we could get that back. These buyers buy cheap and sell cheap, and ultimately undermine our market,” said Kelly.

Last year, 40 new entrants in NI availed of the scheme

At present, the 2019 market for wool remains challenging, although there has been some improved demand for fine, medium, Mule and Cheviot types, with returns slightly improved over the final 2018 prices (shown in Table 1).

To encourage more local supply, Ulster Wool is continuing to offer a new entrants scheme this year, which allows eligible producers to receive 100% of their clip value as an up-front payment for their first two years. Last year, 40 new entrants in NI availed of the scheme. It has also announced extended opening hours over the next few weeks to cater for part-time farmers. To the end of August, the depot at Muckamore will be open at 7am-4.30pm Monday to Thursday, and to 3.30pm on Friday. It will also be open from 8am until noon on Saturday 29 June, 6 July, 27 July and 3 August.

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