Over the past six months the price of Merino wool used in our products has increased by 21% to 24% driven by increased global demand for fine micron wool suitable for next to skin wear. This follows on from similar fibre cost increases in the twelve months prior to this. The increase in the cost of fibres has been more marked for the finer micron merino wool tops. This cost increase has now also spread to Alpaca fibres as buyers have looked to alternative fine fibres.
We purchase our wool tops six to nine months in advance of it being spun into our yarns. Our current yarn sales prices reflect the historical fibre cost at the time of purchase. However, as this product is sold and replaced by yarn spun from more recently purchased tops we are being forced to increase our prices to recover these higher fibre costs.
We have held off increasing our prices for as long as possible until most of our stock spun from the old tops had been exhausted and in the hope that tops prices would moderate for our next tops purchases. Unfortunately the cost of fibres have continued their upwards trajectory and we now need to increase prices to reflect this.
We purchase our wool tops six to nine months in advance of it being spun into our yarns. Our current yarn sales prices reflect the historical fibre cost at the time of purchase. However, as this product is sold and replaced by yarn spun from more recently purchased tops we are being forced to increase our prices to recover these higher fibre costs.
We have held off increasing our prices for as long as possible until most of our stock spun from the old tops had been exhausted and in the hope that tops prices would moderate for our next tops purchases. Unfortunately the cost of fibres have continued their upwards trajectory and we now need to increase prices to reflect this.
We will implement price increases after close of business on Friday 6th April. The average price increase over our product range is 5% which ranges from no price change for some of our UK wool based yarns, cotton yarns and our popular SOCBH yarn to 9 to 11% for some of the pure low micron merino and merino/silk yarns. Our Alpaca yarns generally reflect price increase of 5% to 8%. We have limited the price increases to the flow through of the increased fibre costs to us.