New Publication: Wool Without Value? Price Determinants within a Fragmented Market. [24.08.26]
Bublik, N. and Hess, S. (2026).
Cleaner and Circular Bioeconomy. https://doi.org/10.1016/j.clcb.2026.100234
Abstract
Markets for sheep wool in Europe appear to be fragmented, if not missing, despite growing efforts to substitute non-renewable materials in industrial value chains through bio-based alternatives. A revenue function model of alternative wool marketing options is being developed and empirically tested with survey data from n=326 German sheep farms. A two-stage hurdle model with a hedonic pricing framework explains wool price formation under the present, fragmented market conditions. Wool price is significantly shaped by on-farm processing practices, market channel choice, and regulatory barriers (e.g., Category 3 waste classification), while sheep breed has no measurable effect. The findings inform policy and cooperative strategies to promote processing and direct marketing of domestic wool as a renewable material.
