Have you ever wondered why farmers often struggle to make a profit on wool, yet wool products can come with a hefty price tag? The answer lies in the complexities of the supply chain and the many steps between shearing a sheep and the final luxury garment.
The British Wool Supply Chain: Where Does the Money Go?
The British wool industry is shaped by a complex set of factors, from farming practices to global market dynamics. This article provides an overview of key challenges and opportunities but does not cover every nuance in detail. Wool production and pricing involve many interconnected aspects, which we will continue to explore in future newsletters.
1. Farmers and the Cost of Wool Production
British sheep farmers are at the base of the supply chain, but they often receive very low prices for raw wool—sometimes not even covering the cost of shearing and transport to centralised depots. Why??
British wool competes with higher-priced fine merino from Australia, New Zealand, and South America. Much of British wool is believed to be coarser and not always suitable for luxury garments, which is a generalised belief. However, what really comes into play here is the biodiversity of British wool, an incredible strength that deserves recognition and appreciation. This diversity in wool types allows for a vast range of uses, from durable textiles to soft, luxurious fabrics. This topic alone is rich and complex, meriting a separate newsletter to explore its full potential.
Additionally, cleaning, sorting, and grading wool can be costly, especially in the UK.
2. Wool Sorting, Grading, and Auctions
In the UK, most wool goes through British Wool (formerly the British Wool Marketing Board), which collects, grades, and sells wool via auction. Grading affects pricing, some breeds fetch more than others. Grading is the process of assessing wool based on its quality, which includes factors such as fibre length, fineness, colour, and strength. Higher-graded wool is typically more valuable and used in premium textile production, while lower-graded wool may be directed toward carpets or insulation materials. Despite this, margins at this stage are low, and logistics and labour costs take a cut.
3. Scouring and Processing (The Middlemen)
Scouring (washing the wool), carding, combing, and spinning add significant costs. This is where the biggest price jumps begin. The UK has few scouring plants, so some wool is sent abroad (often China or India) for washing and then re-imported as cleaned fibre or yarn. If wool is spun into yarn locally, it goes through small to mid-sized mills, which charge considerably for their services and aim for healthy profit margins.
4. Spinning, Weaving, and Knitting (Value Addition)
Turning fibre into yarn or fabric significantly increases value. High-end mills producing for British heritage brands price wool much higher because they use small-batch, high-quality processing. Some of these businesses make comfortable margins, especially luxury brands, but costs such as labour, energy, and equipment are high.
5. Branding and Retail (The Real Markups)
This is where the largest profits often occur. Luxury brands mark up wool products by 500% or more, covering marketing, branding, and exclusivity. Even mid-tier brands add substantial markups to cover retail overheads, packaging, and positioning as “premium.”
So Who Makes the Most Money?
Farmers often break even or make a loss, while wool traders and processors see small but steady profits. However, the biggest markups and highest profits are captured by luxury brands and retailers.
The Future of British Wool: Wovenbeyond’s Vision for Change
British wool has long been undervalued, despite its incredible diversity and potential. The current system leaves many farmers struggling to make ends meet, with wool prices often failing to cover the cost of shearing. However, a shift is happening, one that values British wool not just for its function but for its role in a regenerative, circular future.
At Wovenbeyond, we believe that British wool is a premium material that deserves to be recognised and valued. Our Regenerative British Wool Project is designed to transform high-quality, responsibly farmed wool into innovative yarns and textiles that reflect its true worth. By blending British wool with other natural fibres and ensuring full traceability, we are creating a new model, one that moves away from bulk commodity pricing and toward meaningful value for farmers and the land they steward.
The UK is home to over 80 different sheep breeds, each with unique fibre properties. This biodiversity is a strength, not a limitation. By reintroducing lesser-known breeds into premium textile production, we can celebrate British wool’s natural versatility—offering soft, luxurious options alongside durable, high-performance fibres.
But the change doesn’t stop at the fibre itself. Transparency is key. By working directly with regenerative farms, we ensure that our supply chain remains short, ethical, and accountable. Every yarn we produce is a statement: that quality, sustainability, and fairness can coexist.
Consumers today have the power to drive change by choosing traceable, regenerative materials. The more we demand ethical wool, the more we shift the industry towards fairer pricing models, ensuring that British farmers are paid properly for their work.
This is just the beginning. The future of British wool is not in commodity markets but in purpose-driven innovation. At Wovenbeyond, we are weaving a new path: one that regenerates both the land and the livelihoods of those who care for it.
Want to be part of the change? Explore Wovenbeyond’s commitment to regenerative wool and discover our latest yarns.
