Wool cheques will be issued as normal

Despite the current difficult market situations, Ulster Wool has confirmed that producer cheques will be issued as normal.
Ulster Wool CEO Joe FarrenUlster Wool CEO Joe Farren
Ulster Wool CEO Joe Farren

Joe Farren, CEO of Ulster Wool, further explained: “Despite extremely challenging trading conditions in the global wool market all season, and then the closing of the market from February onwards, Ulster Wool will be paying producers their balance for last season’s wool clip as normal. The announcement of the payment level will be made, as it is every year, at the end of May.”

Where prices are concerned, Farren explained that the returns received by flockowners vary between the different wool types and breeds.

He added: “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 to 18 months.

“It may be for some breeds, it would not cover the cost of shearing but wool, as is always the case, makes a valuable contribution towards the shearing costs for the producer.”

Ulster Wool has confirmed that the global cross bred wool market slowed significantly in February and then shut completely at the beginning of March.

It remains closed.  February to May is normally the busiest selling period of the year and, as a result, there is approximately 7m kgs extra of unsold 2019 clip wool on top of the 3m kgs that would normally be in store in the UK at this time of year. 

According to Farren, Ulster Wool is in a sound financial position.

He said: “We are pressing the government to allow us participate in all the various schemes set up to help businesses through the Coronavirus crisis so that Ulster Wool can achieve the best outcome for its producers.”

Farren also confirmed that Ulster Wool’s depot and headquarters at Muckamore in Co Antrim are operating as normal.

“We are collecting and receiving wool as usual,” he stressed.

“As we head towards the shearing season, Ulster Wool’s depot and network of collection sites are ready to start receiving wool from producers.

“Following Government guidance relating to Covid-19, protocols are in place to ensure the safety of producers as well as Ulster Wool staff.”

Farren concluded: “During these difficult and unprecedented times, Ulster Wool continues to be proactive: maintaining service to producers, working with the industry on the shearing shortage and moving to a remote on-line auction. 

“It’s important for producers, and the Northern Ireland sheep sector, to have confidence they can continue to rely on Ulster Wool as a trusted partner in providing a high level of service and in increasing wool returns for producers in the long term.”