Britain's wool industry will prosper again after embracing the need to search for new markets and opportunities, the chairman of the British Wool Marketing Board said today.

Frank Langrish said the Bradford-based BWMB was ready to lead the industry into a new era where it would be more focused on customer demand.

And he insisted moves to modernise the industry and work with, rather than against, foreign competitors would help build a more solid future for the product.

The BWMB recently and controversially abandoned the tradition of open cry auctioneering in favour of a computer-based system.

And, as part of a policy to drive up quality standards, it has teamed up with the New Zealand Testing Wool Authority to develop a new testing facility in North Wales which will serve the whole of the northern hemisphere.

Today Mr Langrish admitted the new slimmed-down BWMB had "changed dramatically" in recent years.

But he said it was vital if producers were to build on a welcome 12 months of stability in the industry.

"Things have at long last been going the right way after three quite dreadful years," said Mr Langrish, pointing to the ongoing impact of foot and mouth.

"The price of wool is still very low and it still hardly covers the cost of shearing the wool off a sheep's back.

"But, at long last, we have seen a lift in the price and there is a little more stability."

He said the improvement stemmed partly from a reduction in supply as a result of sheep farmers moving out of the market due to the low prices.

"In this country, the age range of our farmers has been getting older and they don't want the hard work of looking after sheep when there is so little reward," explained Mr Langrish.

And he stressed the role the BWMB was playing in attempting to find new, alternative markets for the product.

It is keen to encourage the use of wool in bedding products to make up for the declining demand for the fabric in the manufacture of carpets.

"We need to do more research and development work to look for other uses for the wool," said Mr Langrish. "Providing we can find other, higher value users for wool then there is a great future for the industry because it is a special product."

He said that meant a change from the traditional role of the BWMB as an organisation which fought against rival producers to secure the best deal for British sheep farmers.

He said, with wool representing just two per cent of the total market for fabrics, the industry needed to work together.

"We are co-operating much more with other wool-producing countries in the world," he said.

"The battle is against manmade fabrics, not against other producing countries."