British wool has seen a dramatic fall in costs, and the trend is expected to continue amid concerns that Chinese consumer preferences have changed leading to a fall in demand.
In the past fourteen months alone, the price of British wool has fallen by over 30%, largely a consequence of new Chinese clothing trends. The pivot away from women’s knitted wool coats in China has had a huge knock-on effect in the industry as British sheep farmers fear they will not see a return to 2010 prices.
In response to this trend, British farmers are now rearing sheep for exclusively meat purposes. While sheep wool is still used as a by-product, excess supply is contributing to the price decline.
Ultimately, the future of wool will depend on whether companies can find new uses for the commodity but as it stands, little is being done to counteract the trend.