MercoPress. South Atlantic News Agency

Falklands' government will buy unsold wool clip in support of producers

The Department of Natural Resources has been authorized to develop a program to purchase the unsold wool, in a one-time offer, with price set at March 20.

The Falkland Islands government announced on Wednesday a support program for wool producers and their unsold clip in light of the COVID-19 pandemic. For that purpose, it has authorized the Department of Natural Resources to develop a program to purchase the unsold wool, in a one-time offer, with the price set at March 20.

FIG said that the emergence of COVID-19 and its spread has placed an enormous pressure on the global wool selling system. Markets in several key wool producing countries are now closed.

Likewise in combination with a number of other factors, wool prices are now some 40 to 50% below prices achieved a year ago with sales of the Falklands' wool clip reduced to zero in the last two to four weeks, and currently 71% if the Falklands' wool clip remains unsold, some 5.800 bales.

Therefore as one of a number of industries focused economic measures in light of the COVID-19 pandemic, the Executive Council on Wednesday has decided to support Falkland Islands wool producers with a program to purchase unsold wool.

In related news FIG also announced that this Wednesday the building sector has been able to resume activities. Executive Council agreed to the move last Friday, contingent on the latest test results received from the United Kingdom.

Nevertheless FIG Chief Executive Barry Rowland said that the sector reopening requires strict observation of the government's guidance on to how safely operate in the current environment, including maintaining social distancing. The change will be subject to daily review, based on test results and other circumstances. And if the guidance was not followed, restrictions could be reinstated.