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Wool Industry: Challenges and Opportunities

Wool Industry: Challenges and Opportunities. Harry Prinsloo: Chairman National Wool Growers’ Association of SA. Background: NWGA. 10 000 voluntary members 846 communal shearing communities > 17 000 communal wool producers mainly in Eastern Cape SA clip > 44 million kg

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Wool Industry: Challenges and Opportunities

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  1. Wool Industry: Challenges and Opportunities Harry Prinsloo: Chairman National Wool Growers’ Association of SA

  2. Background: NWGA • 10 000 voluntary members • 846 communal shearing communities • > 17 000 communal wool producers mainly in Eastern Cape • SA clip > 44 million kg • Value 2011/12: R2.27 billion • Main export destinations: China (48%), Czech Republic, India, Italy.

  3. Infrastructure development Before After

  4. Training and Mentorship • Veterinary Health programs in communal areas • Hands-on Training • 13 training areas identified

  5. Marketing Support • Broker field services involved

  6. Shearer Training Silver ware again for SA in NZ 2012!! SA Shearers: National colours

  7. Genetic Improvement • 27 988 rams + 2 868 rams in 2012 • Progeny testing: • Clean fleece weight 30.5% • Clean wool price 18.7% • Clean wool income 32.6%

  8. Impact: Long term

  9. 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%)

  10. Wool Production

  11. Wool Production: Communal

  12. Challenges • Govt Personnel turnover: Senior Management • No continuity of agreements and initiatives • Time consuming and costly- start negotiations all over • MOA: DAFF • Signed March 2011 • Formalises partnership with NWGA • Established Joint Implementation Committee. • Very little progress • Leverage funding on Industry contribution • Industry contributes at least R8 million/annum towards development • Needs govt support • Long term agreements needed (at least 5 years)

  13. Challenges • Predation • DAFF and DEA to share responsibility • Support producer initiatives • Sheep shearers • Lesotho shearers • 5 year commitment from industry to address problem • Mining • Mpumalanga (coal mining vs high potential agric land) • Karroo (fracking)

  14. Challenges • Bio-security • FMD: Threatening exports of wool (i.e. Egypt) • OIE visit to SA to assess situation • Role and capacity of Public Veterinary Services • Other diseases (Johne’s; RVF)

  15. Opportunities • LRAD • Identification of successful communal producers • Commodity training and mentorship • Training of Extension Officers • Involvement of commodity organisations • CASP: Infrastructure development • Fencing, shearing, dipping, etc • Long term agreements/partnership with govt. • Portfolio committee support

  16. Thank you!! • NWGA contact details: Tel. 041 365 5030 Fax. 041 365 5035 nwga@nwga.co.za P.O. Box 34291 41a Pickering Street Newton Park Port Elizabeth 6055 www.nwga.co.za

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