SHEEP farmers should find their wool cheques are on a par with, or slightly up, on last year.

Although problems resulting from the foot-and-mouth crisis still dog the market, the 2002 wool price schedule indicates an average payment of 48p/kg, compared with 42p/kg last year.

However it is well-grown, quality white wool which is generally commanding better prices; Swaledale is stuck at last year's low figures.

British wool's international reputation was damaged by foot-and-mouth and the Chinese market, which imported 12.5pc of the greasy British clip in 2000, is still closed to greasy wool.

On top of that, the strength of sterling, particularly against the New Zealand dollar, and the downturn in manufacturing following September 11, outweighed any possible price advantage from a reduced clip.

There is a considerable differential between prices paid for white wools which, reflecting the demand for better quality, have been selling well, and those for coarser, coloured hill wools.

According to the British Wool Marketing Board, Cheviots are averaging 65.4p/kg, compared with a maximum 60p/kg last year. Crosses, grades 430 and 434, are 64p/kg and 54p/kg, (54p and 51p last year); Halfbreeds, grade 338, are 62p/kg (54p/kg), with Swaledale (707 and 709) stuck on last season's value at 19.7p/kg and 10p/kg respectively.

Largely through foot-and-mouth, the volume of wool handled last season rell from 44m kg to 36m kg. At the same time, board costs escalated from 19.4p/kg in 2000 to 23p.kg, because of restrictions imposed on collection and the requirement to store wool for two months before sale.

The board says it is committed to improving producer returns by reducing costs and increasing the sales value of the clip, but it believes that it is important to act cautiously and not to take short-term measures.

Significant staff changes have been made to reduce wages by £500,000 and, as the size of the clip is not expected to show any significant increase, the present depot structure will probably be changed.

The board is to invest in mechanisation and computerisation trials within the coming year, for extended use in 2003/04.

Haulage charges are to be increased, based on the weight of wool handled. A surcharge will be introduced for producers with less than 500kg who do not deliver their own wool, in the hope that more will get together to deliver either to the depot or to a collection centre. Currently 40pc of producers do this.

The board acknowledges that prices are still far from adequate but believes the outlook is more encouraging. Global production is either static or in decline and there is now a much younger national flock, with indications that some farmers are re-stocking with white faced, better woolled, sheep