Leon de Beer: General ManagerNational Wool Growers’ Association of South Africa

WOOL SHEEP FARMING: A LUCRATIVE COMMODITY FOR RURAL DEVELOPMENT IN EASTERN CAPE

National Wool Growers’ Association of SA

Represent SA Wool Producers

Voluntary membership: 4 325 commercial 756 communal shearing sheds

(20/shed); Representing > 15 000 individual small holder- and communal wool sheep farmers.

Export Destinations 2013/14

Country Greasy (kg)

Scoured (kg)

T & N (kg)

Total Rand % of FOB value

China 29 428 501

197 175 111 583

1 890 337 138

60.2

Czech Rep 6 565 707

0 0 453 782 986 15.3

Italy 1 592 434

682 786 1 430 501

374 765 914 11.9

India 2 411 833

180 945 0 170 988 059 5.4

Germany 140 392 486 237 250 077

86 243 409 2.7

Egypt 951 145 0 0 78 655 829 2.5

UK 29 818 0 283 139

36 171 374 1.2

Others: Mauritius, Portugal, Hong Kong.

2001/2002

2002/2003

2003/2004

2004/2005

2005/2006

2006/2007

2007/2008

2008/2009

2009/2010

2010/2011

2011/2012

2012/2013

35,000,000

37,000,000

39,000,000

41,000,000

43,000,000

45,000,000

47,000,000

49,000,000

51,000,000

47,501,978.0

44,156,046.6

46,399,565.746,474,738.645,870,838.2

46,822,912.3

48,390,673.047,920,883.048,300,787.0

46,099,196.0

44,807,741.0

48,955,805.0

38,810,647.038,057,940.4

41,015,031.540,973,002.1

38,156,213.8

42,267,288.8

43,517,981.0

41,438,438.042,255,046.0

40,756,969.040,117,290.0

43,793,082.0

Wool production (kg)

Total Only SA provinces

Key Challenges: Emerging producers

Quality and quantity of wool produced in communal areas

Informal market/Traders Infrastructure Harvesting & Classing Wool Market access Knowledge and Information Stock- and Wool theft Predation and stray dogs Wool Industry contributes >R7

million/annum

Impact: Wool marketed through the commercial market (auction) and income of communal wool producers in the EC (Source CWSA)

Season Kilogram Value (R) Nat. Price (c/kg)

Comm. Price (c/kg)

97/98 222 610 1 502 908 1 225 675

99/00 336 700 1 965 557 1 102 584

01/02 535 911 6 927 640 2 277 1 293

03/04 2 029 556 17 768 955

2 109 876

06/07 2 345 991 30 791 496

2 594 1 313

08/09 2 666 933 43 149 706

2 548 1 618

09/10 2 807 161 64 676 989

3 222 2 304

10/11 3 027 276 71 749 104

3 900 2 370

11/12 3 555 077 113 015 898

5 236 3 179

12/13 3 461 937 131 842 578

5 537 3 803

13/14 3 806 993 137 919 368

6 016 3 623

Social Impacts

Income from sales of wool and mutton: 47 % internal income in 2004 Increased to 59% (2006) and 65% (2009)

Social indicators (2004 to 2009): Children going to bed hungry (43,1% to 27,3%) Households savings accounts (56,9% to 77,3%) Borrow money school fees: (78,4% to 52,3%)

Job creation: 30% increase in number of communal producers in formal market

Conclusion

Wool is non-perishable- market when opportune Export product- earns foreign currency for

households in most rural and extensive farming areas in SA

“New” money to stimulate and support rural economy

Was the stimulus for establishment of many rural towns in SA over TWO centuries plus a commercial bank!

Wool has potential to continue to support rural development even today!!

NWGA needs partnership with DRDAR to continue with T&D

Thank you!!

NWGA contact details:

Tel. 041 365 5030Fax. 041 365 5035nwga@nwga.co.zaP.O. Box 3429141a Pickering StreetNewton ParkPort Elizabeth6055www.nwga.co.za