The 2020 wool season is opening in an even more perilous position than in recent years. The temporary closure of large facets of the world’s textile industry and wool processing facilities amid the coronavirus pandemic is having a major effect on wool markets.

Many Irish merchants are currently not in a position to quote for wool. Some comment that if demand were present, the current market position would only be capable of returning a price of 15c/kg to 20c/kg for fine or lowland wool. With the price difference between lowland and Scotch wool generally in the region of 20c/kg for white scotch wool and as high as 25c/kg to 30c/kg for grey or black scotch wool, it leaves the prospects for wool from hill breeds in negative territory.

Price pressure

Trade in the UK is also under significant pressure. The latest British Wool Marketing Board sale on 24 March witnessed very weak demand and only 16% of the 1.45m kilos of wool offered sold. What did sell was mainly lower-value types and given the limited clearance, there was no index price reported. This follows on from a challenging sale on 10 March, where just 37.8% of 2.044m kilos sold.

Chinese buyers have not re-entered the market to any great degree in 2020 and their absence is leaving a gaping hole in demand for all categories of wool. Processing has also been disrupted, with both scouring plants in the UK closed at present. The low price of oil is also a negative, as it reduces the cost of processing synthetic fibres.

While prospects in the short term are negative, the hope is that markets may record some improvement as the season progresses. Some merchants are telling farmers that they will purchase the wool, but not price it until trading resumes and an accurate market validation can be calculated.

Optimum storage

Merchants report that this offer to take in wool but price it later in the season, or talk of a price of 20c/kg, is being met with a mixed response.

Some farmers are happy to work with their merchant where long-standing relations are in place, while others have said that they will store wool in the hope of better prices.

Merchants advise that where wool is being held on-farm, the conditions in which it is stored will have a significant influence on its value.

Wool should only be packed where it is perfectly dry and any daggings should be removed. Daggings or damp wool will increase the moisture content of wool and can lead to wool rotting in sacks.

Wool should be stored off the ground to prevent dampness. A loft is the ideal choice, but storing on pallets will also do the job. It is important to store wool in a location where there is no risk of rain getting in through vented sheeting, air inlet or outlet points or damaged roofing.

Composting

Some farmers have started to query the potential of composting wool and recycling the nutrients back in to the land. This is being explored mainly for lower-value wool that currently looks unlikely to possess a value.

It is estimated that wool has a nitrogen content of about 15% and also contains sulphur, carbon and other nutrients. Moist, wet and warm wool will biodegrade relatively quickly buried in soil (about three to six months) and is broken down by bacteria and fungal growth.

On the other hand, the unique properties of wool, with its keratin chemical structure and tough water-repellent outer layer, mean that in normal conditions, wool will retain its integrity and last for a significant period of time. This process of composting and recycling nutrients will be explored more in the weeks ahead.