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WOOL BOARD TALKS: From left, FUW vice president Richard Vaughan, Gareth Jones, FUW director of agricultural policy Nick Fenwick and Emyr Jones.[/caption]
Farmers' Union of Wales officials and staff have met British Wool Marketing Board producer relations manager Gareth Jones to discuss latest developments in the market for Welsh wool.
Following the meeting at Meirionnydd county show, FUW president Emyr Jones said: "We discussed a broad range of issues including the welcome increase in the wool price and those issues which were likely to affect the market over the coming months."
Wool prices have increased significantly in recent years with average prices in 2010 reaching £1.02 per kg compared to 48p/kg in 2009 and 33p/kg in 2008.
Emyr Jones also emphasised his support for the wool board and the central role it plays for the sheep industry.
"The wool board has faced a number of well founded criticisms from the union over the years and it is our duty as producers and farming representatives to bring such concerns to the attention of the board. However, we must not lose sight of the central and important role the board plays for Welsh wool producers.
"Our dairy farming members often lament the demise of the Milk Marketing Board and, while the nature of the dairy industry is very different, it would be disastrous if the wool board was to go the same way as the MMB."
During the meeting, Gareth Jones, who is responsible for developing and maintaining the board's producer relations and communications, said: "The strong demand and increased prices look set to continue, with forecasts for the current season positive.
"The enthusiasm, renewed interest and increased profile of wool as a direct result of the marketing and promotional initiative the 'Campaign for Wool' is encouraging. There has never been a better opportunity for wool as a quality natural fibre and we must all work together to ensure there is a bright future ahead for wool."
Welsh wool producers were also urged to check for any tax implications when selling wool to foreign merchants. "Unless it can be shown that wool has left the UK within three months of the sale, producers may be liable for a VAT charge on their sales," said Emyr Jones.
"If wool does not leave the UK, the transaction is a domestic one and farmers must charge for VAT on their wool and account for this in any information they supply to the Inland Revenue. If it is exported within three months of the sale, the vat rate is zero. The correct documentation is also required by the farmer to show the wool has actually been sold and exported.
"This issue should be carefully considered by farmers when they consider the prices they are offered for their wool and who to sell to."