Here is one way that I have found to put some of that wool to use: a woolen dog bed! Now that a year has gone by, I can say with certainty our dog really does like this dog bed. I'm quite happy with how durable and fluffy it still is. And, I'm happy I've found one way to repurpose what would otherwise be compost-quality raw wool.
I started with a big pile of raw wool, and picked out the burrs, and anything too dirty. The rest I washed in a big Tupperware: hot water, dishsoap, and no agitation, followed by several rinses. Here is the washed, multicolour wool.
I sewed what amounts to a large pillowcase out of an old bedsheet, and stuffed it with the clean, dry wool. I used heavy duty yarn to stitch in several places in order to hold the wool in place. I used denim to sew an outer cover (think pillow sham) that I can remove if it needs to be washed. This way the dog bed can be washed without having to wash the inner wool-stuffed cushion.
In this picture, the inner cushion has been placed inside the denim outer lining, and, our dog is testing it out. Don't let that pathetic look fool you, he really likes it...
If you're interested in a woolen dog bed for your pooch, get in touch. I will quote you a price based on the size and wool that we have available.