What is “wool banking”?

Something I seldom do–I have removed my knitter/designer/historian hat and donned my American Sheep Industry Certified Wool Classer and consumer educator hat.

—Ava Coleman

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WOOL BANKING, in one form or another, has been in existence for centuries. What many knitters perhaps fail to realize is that wool is a farm commodity. Just like corn, wheat  and sugar, it holds a place on the world’s economic market. Just like those other commodities it is stored to prevent a shortage. A shortage or an abundance in a product can result in extreme cost fluctuations worldwide. Like gasoline, product released during a shortage helps to maintain a balance in the cost of the raw product or finished goods to the consumer.

Prior to 1970 evaluating wool quality on the world market was fairly uniform. That meant that the raw wool was universally more or less treated the same. Market prices were set by the quality of the breed producing the wool and strength/length of the fibers. Growers worked for better quality of their clips based more on breeding and the fiber production than how it was shorn or stored. Growers brokered their raw fleeces to warehouses, to yarn companies or as was, and still is the case in some countries, they stored them as best they could until a buyer was found. Most of this wool, even if originally of good quality and stored reasonably, is unusable if not sold within a very few of years. It would probably be of questionable value for many end products after two years.

There have always been exceptions. These are where clips (all the fleeces from one shearing produced by one grower) were pre-purchased by or prepared specifically for companies or mills servicing more high end final production. For example America’s Pendelton brand and manufacturers such as the Italian clothing market creating custom made men’s suits have always demanded these top quality wools for their products. Today those trendsetting companies continue to deal with second and third generations of the same wool producers they have worked with since their early beginnings. On-going working relationships like these have resulted in producing some of the finest quality raw wool ever available.

By the early 1980s the universal wool market was changing. There was a very large amount banked and growers were producing more each year. Additionally third world countries were beginning to enter the market.  Austrailian growers, historically known for their fine merino, relaized that unless they changed how they banked their wool, their industry would not continue to be profitable.

Taking pieces of the production process being used by those selecting wool for high end quality finished products, opening on-going discussions with breeders, consulting with forage specialists and working with experienced shearers, Austrailian growers crafted a workable way to  push their wool industry into the twenty-first century. They developed a countrywide clean wool program that today serves a a model for a large portion of the rest of the world.

The benefits of such a program are many. Always a leader in both product volume and fiber quality, their clean wool methods allow for more wool to be banked more effectively. Instead of the 2-3 year timeframe before more poorly stored wool is no longer good, their stored wool has a much longer storage life. Buyers are more likely to purchase their banked product because it’s more viable and much cleaner than most banked product that is available elsewhere.

Many other countries have tried to develop similiar programs to one degree or another. Results vary depending on the recognition of the economic importance placed on the wool industry in each country. Implemanting a clean wool program is costly for a  grower, especially in countries where labor is expensive. This is the case in the US. We have seen large companies like Berlington Mills move all of their spinning facilities to foreign countries because they can purchase foreign wool for less. Many large scale growers no longer raise wool producing flocks. They have become part of the meat and pelt producing market or have left the industry completely. We have also seen a decline in smaller mills, Many  of these that remain have taken on processing and spinning other animal fibers to make ends meet.

Just like foreign grown produce in or grocery stores, the American wool industry has changed. Over the past two decades we appear to have generally become less a buyer beware culture. Many more consumer groups have been formed to protect us. We have become more trusting. However as far as woolen products are concerned we need to be better educated ourselves. Recently off shore countries spinning yarns for everything from commercially produced clothing to carpets have stepped up to fill demand gaps and help deplete their stocks of banked raw wool. Much of this wool has been banked for many years. Depending on the country of origin, few participate in quality assurance for stored raw wool or participate in recommended clean wool programs of any kind. In some countries industrial regulations don’t kick in until the spinning and dying processes for many yarns.

Retail stores depend on their wholesale  brokers, buyers and venders to assure them they are getting the of quality product they order. We need to question the retailer to make sure our dollars are wisely spent.,We shouldn’t be afraid to ask questions before purchasing – “How was the raw wool initially processed? Was the fleece stored properly and how long before it became a finished item?” “Was the this part of a clean wool project?”

Remember it’s your money!