Industry News II

High hopes for South African wool market – Business Leaders

August 23, 2012 No Comments »

South African wool producers are hoping to develop an even more close-knit relationship with China with the start of the new wool season.

China currently imports 48 percent of the total value of wool exported from South Africa said Cape Wools SA, a non-profit service company established and owned by wool farmers and other directly affected industry groups represented in the Wool Industry forum in South Africa.

"The present situation is that all wool from Rift Valley Fever (RVF)-free areas this year qualifies for export to China," the company said.

Cape Wools SA also noted that the Department of Agriculture, Forestry and Fisheries and the Chinese government are in discussions to reduce the waiting period for the export of unprocessed wool from districts that were affected by RVF to three months.

The company said: "The department presently stipulates that the three-month waiting period would come into effect after a district has been officially declared free of the disease, while the Chinese have agreed that the waiting period could start three months after the last reported outbreak."

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A total of more than 280,000 bales were offered at auction in the previous season, realising a sale-value of close to 279 million US dollars.

The current economic climate in the US and Euro-zone countries, however, is a cloud hanging over this season’s expectations.

"In Australia, where the new season has already commenced, prices have declined sharply. A strong Australian dollar, large offerings at auction and the European holiday contributed to this decline," Cape Wool SA said.

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