A streamlined wool board is in fighting shape to take on the challenges of competition after a difficult year for the industry.

Speaking at the annual conference of the Wool Marketing Board, chairman Frank Langrish said that while the previous 12 months had offered little in the way of improvement in sales conditions, the future was looking more promising.

The Bradford-based board has disposed of its trading subsidiaries in the past year and Mr Langrish said the rationalisation and investment programme should produce long benefits through savings and greater efficiency.

He told the meeting: "In this our 50th year, I think we can look forward with some confidence."

The Board has reduced running costs by £180,000 a year following its move to head office premises on the Euroway Trading Estate in Bradford and a further £50,000 generated by the change of premises in Wales.

The board is focusing its efforts on clip wool - that which is sheared off the sheep - rather than any other parts of the animal.

A spokesman said the stagnant market meant the only way to retain market position was to cut outgoings, adding: "The market is difficult and moving slowly so the way forward has to be to cut costs.

"We had moved into other aspects of the wool and sheep market but we have had to focus on the clip sector.

"We have already achieved short-term benefits through reduced costs and long-term advantages will also be felt."

She added that despite the strength of sterling, the Middle East crisis and rising oil prices, 47 per cent of the clip up for sale this year had already been sold, compared with 52 per cent in 1999.

The newly-elected members of the Board have also agreed to reduce their remuneration by 30 per cent in the coming year to cut costs.

The number of members has reduced from 16 to 11 but the board is recommending a lower remuneration figure of £95,000, down from £101,000.

The Board is a non-profit-making group which aims to help the country's 80,000 sheep farmers market and sell their products.