US tariffs sap ‘strength of global wool markets'

Agriland

14-06-2025

Wool markets have weakened slightly over recent weeks, primarily on the back of additional trade tariffs introduced by the US.
Ulster Wool Group chairperson, Brendan Kelly, explained: 'China is the biggest processer of wool in the world, with much of this raw material imported from countries including Ireland and the UK.
'In turn, the US is the market of choice for a significant proportion of Chinese wool-based exports.
'Hence the impact of new US tariffs on the strength of global wool markets.'
Ulster Wool Group collects and grades 70% plus of the fleeces produced across Northern Ireland. And the co-op is committed to growing this figure.
Kelly said: 'For the most part, wool prices have strengthened considerably over the past 12 months. These very welcome trends have been facilitated by the monthly auctions hosted by British Wool.
'Increasingly, wool is regarded as an elite quality, natural product with an intrinsically high value.
'And Ulster Wool Group's unique relationship with British Wool is helping to make this a positive reality for local sheep farmers.'
New season wool deliveries to the Ulster wool Group depot at Muckamore in Co. Antrim are already taking place
Payments for 2024 wool deliveries are being made to sheep producers directly following receipt of their 2025 clips.
But, as a matter of principle, all payments for wool delivered last year will be made by the end of June.
Kelly said: 'Payments to Ulster Wool Group members are up 70% year-on-year. This is clear evidence that the co-operative marketing approach that we take is working on behalf of sheep farmers.'
Wool throughput is a key factor in determining the costs that are passed on by Ulster Wool Group to its farmer-suppliers.
'The more wool we handle, the lower the handling charge per fleece that we have to factor in,' Kelly said.
'Sheep numbers have dropped by around 4% over the past 12 months. And, obviously, this will impact on the total volumes of wool available in 2025.
'This trend is equally apparent across all the regions of the UK and Ireland.'
Ulster Wool Group operates a total of 27 collection centres plus its main grading depot at Muckamore.
According to Kelly: 'Wool is a commodity of real value at the present time. And Ulster Wool Group is at the very heart of a system that delivers the best possible returns for sheep farmers on a consistent basis.
'In supporting Ulster Wool Group, flock owners are helping to secure a sustainable future for their own businesses in a meaningful way.
'No other option can deliver this degree of certainty.'
Looking ahead, Ulster Wool Group will be hosting an open day at its Muckamore depot in Co. Antrim on Friday, September 19.
Amongst other things, the event will allow visitors to see how different types of wool are graded.