British Wool depot By Claire Taylor BRITISH Wool has announced major changes to its grading network, with plans to close four of its 12 depots as part of a major cost-saving effort. Covid-19 has had a significant detrimental impact on the global wool market and despite the fact that British Wool has cleared the 11million kg of unsold wool it had at the end of April, it insisted that the market remained extremely challenging . Wool producers have been assured that where grading depots are closed they will be replaced with a new Intermediate Depot in the nearby area, to ensure no extra haulage charges.
British Wool Launches Major Cost Saving Initiative.
News 06 Jan 2021
The Covid-19 pandemic has had a significant detrimental impact on the global wool market and despite the fact that British Wool has cleared the 11million kg of unsold wool they had at the end of April the market remains extremely challenging.
Andrew Hogley, Acting CEO explains “British Wool has managed to sell wool in decent volumes since August which has allowed us to clear last season’s unsold stock but prices are still severely depressed. The global market faces an oversupply of cross-bred wool, this is mainly from New Zealand but also from other European markets. Although we have seen some more positive signs in recent auctions on some wool types, carpet wools remain under a great deal of pressure. The contract carpet market which serves hotels, offices, cinemas, restaurants, airports, cruise ships, and the like, remains extremely depressed due to the closure of the hospitality trade due to the C
Four wool grading depots prepare to shut down
GLOBAL OVERSUPPLY: Demand for wool has plummeted amid the Covid-19 pandemic.
British Wool is to close four grading depots in order to maximise returns to producers as wool demand plummets due to the Covid-19 pandemic.
The Irvine depot will close along with Porthmadog, Stamford and Liskeard, which will result in the loss of 40 jobs.
British Wool, which is owned by around 40,000 sheep farmers in the UK, has calculated the move will save £1.5 million per annum – a saving of 6-7p per kg – and it says services will not be affected by the restructuring as the wool from these areas will be reallocated to other grading depots within the network.