Wool is the most neglected agricultural commodity in the UK. In many sheep enterprises the returns from wool represent less than 2% of the gross income and in some cases the value of the wool produced is less than the cost of shearing. Wool production, however, represents a potential avenue for agricultural diversification and, being a non-food commodity and suited to production in the Less Favoured Areas, accords with the agricultural policies of the UK government and the EU.

Significant increases in return from wool can come only from improvements in quantity and/or quality, two traits which in most breeds are negatively correlated. The most important determinant of wool quality, is fibre diameter. An analysis of prices of wools of different qualities over a four year period (1987-1990 inclusive) showed that the relationship between these variables could be described by the equation