Why batch size changes everything (economies of scale)

Here's a simple, almost intuitive principle once you understand it, yet it has significant consequences for the final price of a local wool product: the size of the lot transported between the farm and the mill directly influences the cost per kilogram of processed wool.

The reasoning is as follows: transporting a batch of wool, regardless of its weight — within the vehicle's capacity, of course — costs roughly the same fixed amount. Whether you transport 150 pounds or 500 pounds of raw wool in a single trip, the travel cost remains essentially identical. The difference lies in how this fixed cost is distributed: the larger the batch, the more this amount is divided among a greater number of kilograms, and the lower the attributable transportation cost per kilo of wool.

Specifically, this means that a small, isolated batch — say, the fleece from a single farm with a small flock — will bear the full weight of this fixed transport cost alone, which can make processing economically difficult for a farmer to justify. Conversely, when several neighboring farms combine their shipments to achieve a larger volume, each benefits from a significant reduction in cost per kilo — sometimes up to 25 or 30% savings, simply by better logistical planning.

This logic is not exclusive to wool; it's a principle of economy of scale that applies to many sectors. But in the particular context of artisanal wool processing in Quebec, where most farms have modest-sized flocks, this understanding becomes a real tool for collaboration between producers. Rather than each farm sending its own wool in isolation, the simple act of coordinating shipments between neighbors can transform a barely profitable operation into an economically viable endeavor for all.

This is exactly the type of coordination that Makeloo Studio actively encourages among its network of partner farms in Lanaudière. By facilitating the grouping of batches, we are not just optimizing our own production costs: we are concretely helping our partner farmers receive a fairer share of the value of their fiber, which, ultimately, supports the very sustainability of local sheep farming.

Source: Wool Cost Calculation Methodology, Makeloo Studio Laine Québec inc. (2026).