SCOTTISH EXECUTIVE CONSULTATION ON THE REVIEW OF THE BRITISH WOOL MARKETING BOARD - ANALYSIS OF RESPONSES
BACKGROUND
The British Wool Marketing Board (BWMB) was established in 1950. Its powers are laid down under the British Wool Marketing Scheme (Approval) Order 1950 and the Agricultural Marketing Act 1958. The BWMB is the last remaining Marketing Board covered by the Agricultural Marketing Act 1958 and, following last year's review of the levy boards, is the only significant statutory body in the agriculture sector not to have been recently reappraised.
The functions and structure of the BWMB have been reviewed several times since 1950 and changes have been made both to the British Wool Marketing Scheme (Approval) Order 1950 and to the way the Board operates. In the light of changes to the sheepmeat support system and developments in the markets for wool, the BWMB's functions are being reviewed again.
The review is being carried out by Defra in liaison with other UK agricultural departments. It is anticipated that a report will be published by the end of January 2007. The terms of reference for this review are - to consider whether the functions set out in the British Wool Marketing Scheme (Approval) Order 1950 and the exemptions and other arrangements subsequently applied by the British Wool Marketing Board remain appropriate in light of developments in the sheep and wool industries, and whether any changes are needed.
Consultation on the review of the BWMB's functions commenced on 31 July 2006 and ended on 23 October 2006. Separate consultations were carried out by each UK Department. This paper summarises the responses to the consultation in Scotland.
RESPONSES TO THE CONSULTATION FROM STAKEHOLDERS
Stakeholders were asked to comment on any element of the BWMB's functions or activities relevant to the review. In total, 9 responses were received to the consultation. A full list of respondents is at Annex A.
All but one of the respondents was strongly in favour of the continuation of the BWMB with its current functions
The National Sheep Association (NSA) strongly supported the principle of the BWMB. They did not think that significant changes were required to the current Board arrangements Nevertheless, the NSA felt it was important for the BWMB to be flexible in its approach in order to adapt to changing markets, for the benefit of producers. Increased efficiency was also important, especially with an increasing number of producers regarding the business of wool production as a cost to their business rather than a source of income.
The NSA suggested that further efficiencies could be made by using technology and through a process of encouraging and facilitating individual producers to take wool to depots rather than having it collected. The NSA asked that a cost benefit analysis be undertaken to see if the delivery option for farmers could be better promoted and incentivised, particularly for those with a small number of fleeces.
On marketing, the NSA suggested that the process whereby individual producers can opt not to sell to the Board needed to be more transparent and easier to access. They considered that more work could be done to develop alternative markets for wool. They also questioned whether selling all wool through a straight auction process was the best way of enhancing returns to producers and said that they would welcome an independent look at this aspect of the work of the BWMB.
NFU Scotland were generally in favour of the continuation of the work of the BWMB. They emphasised the need for the BWMB to operate efficiently and effectively. They also commented that there was a need for the BWMB to give greater emphasis to finding more profitable markets for British wool and to assist in the development and promotion of new wool based products.
The Scottish Agricultural College acknowledged the important contribution that the BWMB make to their research work on sheep, for example genetics research on performance traits including wool. They considered that the activities of the BWMB were crucial for the sheep industry, especially at this time of low world prices for wool, given their centralised collection, grading, marketing and promotional business.
Quality Meat Scotland saw no compelling reason to change the functions of the BWMB. They considered that the BWMB fulfilled its role effectively, acted to improve its efficiency and provided a cost effective mechanism for the uplift of wool clip from producers. The BWMB also helped to educate the sheep industry on best practice regarding animal welfare and presentation of wool. Its promotional and research work was considered important for the industry.
The Scottish Textile Manufacturing Association (STMA) said that the textile manufacturing sector in Scotland was very much behind the work of the BWMB. The STMA considered that the BWMB provided very good value for money. The standard price for wool across the UK, regardless of collection costs, was recognised as important for Scottish producers.
The Scottish Rural Property and Business Association generally supported the current functions of the BWMB and were in favour of the continuation of its work. They said that in order to be as effective as possible, the BWMB would benefit from improved monitoring and assessment. They also called for the BWMB to place greater emphasis on identifying more profitable market outlets, including the development and promotion of new wool based products.
The Crofters Commission supported the fact that the BWMB set a price for wool and could guarantee a market. They pointed out that the income from fleece contributed to crofters' incomes and any reduction in income could accelerate the decline in the number of crofters keeping livestock.
The Cheviot Sheep Society were supportive of the continuation of the BWMB, for the benefit of the industry.
One respondent, (an individual producer, who has asked not to be named), felt the BWMB lacked direction and that by limiting its marketing and research activities, it had negatively affected the viability of the product.
ANNEX A
LIST OF RESPONDENTS TO CONSULTATION ON THE REVIEW OF THE BRITISH WOOL MARKETING BOARD
National Sheep Association
NFU Scotland
Scottish Agricultural College
Quality Meat Scotland
Scottish Textile Manufacturing Association
Scottish Rural Property and Business Association
Crofters Commission
The Cheviot Sheep Society
Sheep producer (requested name to be withheld)