How to free space for food?
I have lots of wool and wool coats, far more than I need. All this wool and coats are occupying space in barns and markets that can't be filled with food. Lots of meat is laying on the ground because markets and barns are full of other stuff. How can I solve this problem?
Solution 1:
You can either stop producing wool coats, stop producing wool (that will kill off your sheep), trade it in a Trading Post or build more barns. Your citizens will take a small number off you every so often, but if you have more than one Tailor that probably will be over-producing.
Trading excess coats would be the best option. They can be worth a lot to some traders who will sail to your village (from memory it's 15). Set the capacity for wool/wool coats to be slightly less than what you're producing, and the worker there will fill it up leaving the rest for your villagers.
I personally keep a trading post to have as an "extra store", and items like coats I use primarily for trading as they are easy to make.
Source: I've played a lot of Banished.