THE Wool Board has outlined its plans to adapt to the continuingly difficult market, recognising that returns to producers must improve, either through cost savings or increased sales value.

Speaking at the annual conference for regional representatives, Mr Frank Langrish, acting chairman, said that, while last year had produced little appreciable improvement in the market, he was more optimistic about the future.

"In this our 50th year, I think we can look forward with some confidence," he said.

Having disposed of its trading subsidiaries, the board's resources are being concentrated on collecting and handling the clip. A rationalisation and investment programme should be of long-term benefit to producers, through cost savings and greater efficiency.

Running costs have been cut by £180,000 following last year's move to more economic head office and depot premises in Bradford. A similar move in mid-Wales has generated a further £50,000 reduction.

The next phase of the strategy, to run fewer depots with larger throughput, will be in the North of England. Depots in Hexham and Carnforth will close at the end of this season and a new one will open in Carlisle.

The board aims to sell the clip within the year of production; to sell a high proportion before Christmas to allow for a fall off later in the year and to sell about 15pc of the new clip before the season.

Of the 1999 clip, 98pc has been sold within the year of production and, despite the strength of sterling, especially against the NZ$; the Middle East crisis, and rising oil prices, 47pc of the 2,000 clip has been sold, compared with 52pc a year ago.

The entire selling system is being computerised and electronic auctions will be piloted soon.

Next year, with new objective measurement testing equipment installed in all depots, all the clip will be sold to internationally recognised specifications.

The European social fund has provided free shearing training for more than 500 trainees and contributed towards re-training instructors.

Marketing and promotion continues to centre on the carpet industry, which consumes about 70pc of the clip world-wide.

The board says: " The quality and presentation of wool coming from the farm is crucial if British Wool is to compete in the international market and, in this respect, we welcome the return of OP dips."