The long-awaited wool feasibility study commissioned by the Department of Agriculture was published last week.
The main finding from the review, titled Market Opportunities for Irish-Grown Wool-Based Products, is the development of an “Irish-grown” wool brand.
The report highlights at the outset that while there were some encouraging prospects identified in an assessment of several market sectors, there are many barriers and obstacles to Irish-grown wool successfully accessing these opportunities.
It concluded that solutions discussed in the review include the need for further research and the introduction of recommended mechanisms to support the industry along the entire value chain from producer to end user.
Textile industry limitations
The textile industry was identified as the best-known sector of value-added products in Ireland but it was pointed out that most of the wool consumed by this sector is imported merino wool.
The report says this reflects modern consumer preference for soft-textured textiles, while Irish-grown wool tends to be strong wool more suited for use in hard-wearing carpets and other non-garment uses. It is stated that an Irish wool brand is required to market Irish wool in a better light.
Main recommendations
The main recommendations of the report are summarised below:
Establish an all-island “Irish-grown” wool council: the objective of an all-island wool council is to develop and champion the “Irish-grown” wool brand domestically and internationally. The council would also be responsible for creating and overseeing structures designed to bring dissimilar groups together to collaborate, innovate and scale activities. The report advises that the wool council should comprise a mixture of primary producer farmers and stakeholders/supporters, including successful commercial enterprises which should be willing to fund research and promotions and to advise on scaling of micro-businesses involved in the wool sector.
It goes on to say that members should participate on a voluntary basis and raises the possibility of funding being raised by an annual membership subscription for the council and affiliate membership.
Scaling of micro-enterprises: the report highlights the need to support the commercial scaling of micro-enterprises via collaboration and mentoring. In this regard, an appendix highlighting numerous funding sources is contained in the document. Marketing and awareness initiatives: the importance of focusing marketing activities on new product categories and, in particular, higher-value products such as mattresses, duvets and pillows is outlined. Another initiative recommended is a schools awareness campaign promoting Irish-grown wool products and their green circular bio-economy-led credentials. Wool hub: the creation of a wool hub is seen as a key enabler for the success of any initiative. It is highlighted that the hub would provide a platform for researchers and commercial entities to: – Collaborate on research projects.
– Promote innovation through complementary research projects and optimum cross fertilisation of ideas.
– Incorporate an independent wool testing facility which would be used to set standards and substantiate all promotional claims made about Irish-grown wool products.
– Develop a system of traceability for wool that is sent abroad for scouring and further processing so that provenance is protected at all stages in the value chain.
It is viewed that the wool council should sponsor high-impact, quick delivery projects developed in the wool hub and elsewhere to highlight the value and appeal of innovative Irish-grown wool products.
Fertiliser and insulation: it is predicted that value may at some stage start to come to the farmer if a market is established for sheep wool for fertiliser or insulation. This will require significant investment in the case of fertiliser but the report says EU directives promoting a shift from chemical to biofertilisers will encourage a greater appreciation of wool-based fertiliser, while record prices for synthetic fertilisers and environmental pressure will improve its competitiveness. Wool insulation is seen as offering huge potential.
This is dependent on wool insulation being given an advantage or “green premium” as part of the national retrofit programme or in new builds.
There are sufficient players in the marketplace to facilitate a regionally based wool collection
This could come in the form of natural fibre-based products being given a competitive advantage via State mechanisms, which in turn would support increased demand and economies of scale.
Wool co-op
The report views the current route to market for much of Ireland’s annual production of 7m kilos of wool as presenting “challenges for the objections set by the Department of Agriculture to get a higher proportion of the value created by wool production in to the hands of the primary producer”.
The categorisation of wool as a Category 3 animal byproduct is said to be feeding in to a perception of wool being a lower-value product. \ Donal O'Leary
It highlights that there are only 41 registered wool stores in Ireland, more collection agents which it says are “merely collection agents for large buyers” and fewer than 10 competitive wool-buying operations. It says that this highly fragmented system where individual farmers sell raw wool for aggregation foregoes the potential for grading, with this seen as a key stage in value creation.
The report says: “We believe that if the wool were to remain in the ownership of the farmer, or a related entity such as a wool co-op, until it reaches the graded stage there would be significantly more value in the wool for the farmer.”
It also alludes that the acquisition of Irish wool merchants by the two largest wool merchants in the UK presents a clear risk of further acquisitions leading to large players squeezing indigenous merchants out of the market.
The co-op model operated by Ulster Wool, which is supplied by 5,000 farmer suppliers or the Galway Wool Co-op, is highlighted as a preferable route to market.
“There are sufficient players in the marketplace to facilitate a regionally based wool collection and grading process that should minimise the transportation costs that are currently high, relative to the low-value wool being collected.”
It states that such appropriately graded wool, with Irish-grown wool designation, could then be sold to wool merchants or buyers similar to the British Wool trading process.
In its own words, the wool feasibility study intends to form the basis for the development of a robust policy roadmap for Irish wool. This is badly required in the context of wool currently representing a significant cost to a farm production system.
There are, however, many questions that still need to be answered.
The potential for a scouring plant in Ireland was deemed out of scope in the review, yet the report says it identified most value-added product applications, other than composting and pelleting of fertiliser, require some scouring to be conducted.
Wool presentation has been hampered by the low value of wool not going anywhere near covering the cost of shearing. \ CJ Nash
The report recommends that the Department of Agriculture engages in and provides funding for further studies to develop a roadmap towards on-island scouring or to conduct research into modern methods of scouring which may be more suitable to the low volume of wool produced here.
There are conflicting opinions on changing the classification of wool from a Category 3 animal byproduct with one area of the review explaining that this would help change the perception of the value of wool, while other areas of the report state this is not possible.
The Department of Agriculture will provide €30,000 towards the initial setup costs of a wool council but more precise economics are required on the economics surrounding the formation of a wool co-op or other initiatives in the report.
The long-awaited wool feasibility study commissioned by the Department of Agriculture was published last week.
The main finding from the review, titled Market Opportunities for Irish-Grown Wool-Based Products, is the development of an “Irish-grown” wool brand.
The report highlights at the outset that while there were some encouraging prospects identified in an assessment of several market sectors, there are many barriers and obstacles to Irish-grown wool successfully accessing these opportunities.
It concluded that solutions discussed in the review include the need for further research and the introduction of recommended mechanisms to support the industry along the entire value chain from producer to end user.
Textile industry limitations
The textile industry was identified as the best-known sector of value-added products in Ireland but it was pointed out that most of the wool consumed by this sector is imported merino wool.
The report says this reflects modern consumer preference for soft-textured textiles, while Irish-grown wool tends to be strong wool more suited for use in hard-wearing carpets and other non-garment uses. It is stated that an Irish wool brand is required to market Irish wool in a better light.
Main recommendations
The main recommendations of the report are summarised below:
Establish an all-island “Irish-grown” wool council: the objective of an all-island wool council is to develop and champion the “Irish-grown” wool brand domestically and internationally. The council would also be responsible for creating and overseeing structures designed to bring dissimilar groups together to collaborate, innovate and scale activities. The report advises that the wool council should comprise a mixture of primary producer farmers and stakeholders/supporters, including successful commercial enterprises which should be willing to fund research and promotions and to advise on scaling of micro-businesses involved in the wool sector.
It goes on to say that members should participate on a voluntary basis and raises the possibility of funding being raised by an annual membership subscription for the council and affiliate membership.
Scaling of micro-enterprises: the report highlights the need to support the commercial scaling of micro-enterprises via collaboration and mentoring. In this regard, an appendix highlighting numerous funding sources is contained in the document. Marketing and awareness initiatives: the importance of focusing marketing activities on new product categories and, in particular, higher-value products such as mattresses, duvets and pillows is outlined. Another initiative recommended is a schools awareness campaign promoting Irish-grown wool products and their green circular bio-economy-led credentials. Wool hub: the creation of a wool hub is seen as a key enabler for the success of any initiative. It is highlighted that the hub would provide a platform for researchers and commercial entities to: – Collaborate on research projects.
– Promote innovation through complementary research projects and optimum cross fertilisation of ideas.
– Incorporate an independent wool testing facility which would be used to set standards and substantiate all promotional claims made about Irish-grown wool products.
– Develop a system of traceability for wool that is sent abroad for scouring and further processing so that provenance is protected at all stages in the value chain.
It is viewed that the wool council should sponsor high-impact, quick delivery projects developed in the wool hub and elsewhere to highlight the value and appeal of innovative Irish-grown wool products.
Fertiliser and insulation: it is predicted that value may at some stage start to come to the farmer if a market is established for sheep wool for fertiliser or insulation. This will require significant investment in the case of fertiliser but the report says EU directives promoting a shift from chemical to biofertilisers will encourage a greater appreciation of wool-based fertiliser, while record prices for synthetic fertilisers and environmental pressure will improve its competitiveness. Wool insulation is seen as offering huge potential.
This is dependent on wool insulation being given an advantage or “green premium” as part of the national retrofit programme or in new builds.
There are sufficient players in the marketplace to facilitate a regionally based wool collection
This could come in the form of natural fibre-based products being given a competitive advantage via State mechanisms, which in turn would support increased demand and economies of scale.
Wool co-op
The report views the current route to market for much of Ireland’s annual production of 7m kilos of wool as presenting “challenges for the objections set by the Department of Agriculture to get a higher proportion of the value created by wool production in to the hands of the primary producer”.
The categorisation of wool as a Category 3 animal byproduct is said to be feeding in to a perception of wool being a lower-value product. \ Donal O'Leary
It highlights that there are only 41 registered wool stores in Ireland, more collection agents which it says are “merely collection agents for large buyers” and fewer than 10 competitive wool-buying operations. It says that this highly fragmented system where individual farmers sell raw wool for aggregation foregoes the potential for grading, with this seen as a key stage in value creation.
The report says: “We believe that if the wool were to remain in the ownership of the farmer, or a related entity such as a wool co-op, until it reaches the graded stage there would be significantly more value in the wool for the farmer.”
It also alludes that the acquisition of Irish wool merchants by the two largest wool merchants in the UK presents a clear risk of further acquisitions leading to large players squeezing indigenous merchants out of the market.
The co-op model operated by Ulster Wool, which is supplied by 5,000 farmer suppliers or the Galway Wool Co-op, is highlighted as a preferable route to market.
“There are sufficient players in the marketplace to facilitate a regionally based wool collection and grading process that should minimise the transportation costs that are currently high, relative to the low-value wool being collected.”
It states that such appropriately graded wool, with Irish-grown wool designation, could then be sold to wool merchants or buyers similar to the British Wool trading process.
In its own words, the wool feasibility study intends to form the basis for the development of a robust policy roadmap for Irish wool. This is badly required in the context of wool currently representing a significant cost to a farm production system.
There are, however, many questions that still need to be answered.
The potential for a scouring plant in Ireland was deemed out of scope in the review, yet the report says it identified most value-added product applications, other than composting and pelleting of fertiliser, require some scouring to be conducted.
Wool presentation has been hampered by the low value of wool not going anywhere near covering the cost of shearing. \ CJ Nash
The report recommends that the Department of Agriculture engages in and provides funding for further studies to develop a roadmap towards on-island scouring or to conduct research into modern methods of scouring which may be more suitable to the low volume of wool produced here.
There are conflicting opinions on changing the classification of wool from a Category 3 animal byproduct with one area of the review explaining that this would help change the perception of the value of wool, while other areas of the report state this is not possible.
The Department of Agriculture will provide €30,000 towards the initial setup costs of a wool council but more precise economics are required on the economics surrounding the formation of a wool co-op or other initiatives in the report.
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