Introduction

The different grades of wool mean it has many uses, from the very soft fibres that can be worn against the skin, to the coarse fibres with uses like insulation and stuffing.

  1. Around 80% of wool is used to make garment products (sweaters, clothes, coats, hats), blankets and carpets. Wool is also highly flame resistant and so is frequently used for mattress and rug manufacturing. Other products include water proofing outer garments and sound proofing applications, Musicians might be interested to know that the piano’s distinct sound (compared to a harpsichord, for example) is a result of wool. The wool fibre is used to muffle the impact of the hammers on the strings.
  2. Products made from wool are durable, flexible and can keep their appearance for a longer period than other fabrics.

The wool market can be divided into three broad product segments based on mean fibre diameter:

 

  • Fine wools (<19,5µ) are used in luxury products. Prices are rather volatile and poor quality (e.g. as a result of drought) suffers significant penalties on price. Fashion trends and consumer demand for soft, light products for next to the skin wear are and will remain the key drivers in this segment. The finer end of this segment competes with other products e.g. cashmere.
  • Medium wools are usually in the 20-25µ category and are used essentially in the classical menswear, womenswear and knitwear product sectors. Probably the major offtake of wool in this product sector is in blends with synthetic fibres to target lower price points at retail, and in some cases to achieve certain technical effects. Prices in this category are particularly sensitive to competition from synthetics.
  • Strong (coarse) wools (>26µ) are mainly used for interior textiles such as furnishings, carpets and bedding products.
Source: DAFF-NAMC International TradeProbe, Issue No 55, January 2015; 2015 Wool Market Value Chain Profile; Cape Wools SA

International business environment

Find updates on www.capewools.co.za.

  • The global price for apparel wool is determined in Australia, the world’s largest supplier of apparel wool, where the largest volumes of wool are traded. South Africa, with its small clip, is therefore a market follower or price taker.
  • Top wool producing countries are Australia, China, USA, New Zealand and Argentina. Turkey, Iran, UK, India, Sudan and South Africa follow.
  • South Africa is a full member of the International Wool Textile Organisation (IWTO). Visit the IWTO website – www.iwto.org. Find global information and statistics on the website.

 

South Africa: imports and exports

  • Despite being a net importer of sheep meat, more than 90% of the wool produced in South Africa is exported. The wool sector has been a true success story within South African agriculture.
  • In 2018, wool accounted for 4% of South Africa’s agricultural exports, ranked the largest exportable commodity after oranges, grapes, wine and apples (Sihlobo, 2019).
  • China represents the biggest market for South African wool exports. After Australia, South Africa represents the second largest exporter into China.
    China’s decision (February 2019) to suspend all greasy wool imports from South Africa as a result of the Foot and Mouth Disease outbreak in Limpopo province earlier in the year presents a crisis since that country accounts for some 71% of South Africa’s wool exports in value terms (Sihlobo, 2019).
  • Other markets for the South African wool industry are China, the Czech Republic, Italy, India, Bulgaria, Germany, and the United States.
Source: Sihlobo, W. 2019, February 26 (see heading 9); Bureau for Food and Agricultural Policy (BFAP) Baseline 2018-2027 p 72. The Wool Market Value Chain Profile (see heading 9) also takes a close look at exports and imports.

South Africa has only about 30% capacity to process its own wool, and export is thus critical (ABSA, 2018).

Local business environment

Cape Wools SA supplies an SMS message service supplying market information directly after sales, as well as a weekly market report via e-mail. This information can also be found on its website, www.capewools.co.za.

  • The sheep and wool industry is one of the oldest agricultural industries in South Africa. As a largely export commodity it plays an important economic role as an earner of foreign exchange for the country.
  • Prior to 1994, the Cape Province was the most important wool producing area in Southern Africa. “Cape Wool” became the international generic trade term for all wool produced on the sub-continent. Today, the main production areas are in the Eastern Cape and Free State. Other high producing provinces are the Western Cape, Northern Cape, Mpumalanga and KwaZulu-Natal. Find the latest production statistics on www.capewools.co.za which sets out wool production per province and magisterial district.
  • The main sheep breeds used for wool production are the pure-bred Merino followed by other dual-purpose Merino strains (Dohne Merino, South African Mutton Merino and the Letelle). Merino farmers earn about two-thirds of their income from meat, but a high wool price improves their profitability (ABSA, 2018).
  • Cape wools are traded either through the auction system or by private treaty. The largest percentage of the clip is sold through the auction system. Auctions have been centralised in Port Elizabeth and take place once a week during the season (August to June). Even though centrally auctioned, wools are warehoused in three of the four ports: Port Elizabeth, Cape Town and Durban. 5,42 million kilogrammes of wool with the value of R383,6 million was produced in the 2017/18 year (NWGA, 2018).
  • Prices paid for Cape wools are determined by free market supply and demand forces and are closely linked to the international price for apparel wool, which is determined by the Australian market.
  • Most of the clip is marketed overseas through members of SAWAMBA. Only registered members of that organisation are allowed to bid at auctions held under the auspices of the South African Wool Exchange.
Source: Cape Wools marketing brochure available on www.capewools.co.za and the 2015 Wool Market Value Chain Profile.

Small-scale farmer news

  • Around half of the sheep in the Eastern Cape have always come from the former homeland (communal) regions. Unfortunately, people in these areas received very little for their wool. The National Wool Growers Association (NWGA) Woolled Sheep Development Programme aims to ensure sustainable economic wool sheep farming. Within the communal sector, the NWGA focuses on: (1) Infrastructure (2) Training and Mentorship (3) Genetic Improvement of flocks (4) Marketing support (5) Resource management.
  • The result of this interaction since 1997/98 on the wool income of black farmers within the former Transkei / Ciskei increased from R1,5 million to the present R131 million. The volumes of wool that gets marketed annually through the formal auction system, have increased from 222 610kg in 1997 to the present 3 461 937kg. There are some 1 400 “wool-growing communities” representing about 40 000 individual small-scale producers (NWGA News, June 2017).
  • Details of production advisors operating in communal areas are available from the NWGA (details under “Associations involved” heading).
Source: www.nwga.co.za/home-mainmenu-1/core-business/communal/genetic-improvement-programme.html

National strategy and government contact

Find contact details and information on the different directorates of the Department of Agriculture, Forestry and Fisheries (DAFF) at www.daff.gov.za.

National Agricultural Marketing Council (NAMC) Tel: 012 341 1115 www.namc.co.za Cape Wools SA administers the proceeds from a levy laid down in terms of the Marketing of Agricultural Products Act, 47 of 1996. Each broker, trader, processor, importer and exporter of wool has to register and furnish records and returns to Cape Wools SA. The purpose and aims of this is to compel parties to keep records and render returns, to ensure that continuous, timely and accurate information relating to the products is available to all role players. Market information is deemed essential to make informed decisions. Read about the Wool Trust on the website.

Animal welfare

Incorrect shearing of sheep, whereby, animals sustain unnecessary injuries will be deemed as contraventions of the Animals Protection Act, 71 of 1962. Shearers must undergo training, which must include an animal welfare curriculum and be competent to shear sheep efficiently. See http://sasheepshear.co.za for trainers. See also “Training & research” heading below.

Associations involved

The South African wool industry was restructured in 1997 to comply with the regulations of the Marketing of Agricultural Products Act, 47 of 1996. The first step was to establish a Wool Forum representing the various affected groups in the industry. The Forum meets biannually and its representatives carry their own expenses. The main functions of the Forum are the following: (1) To create opportunities for industry issues to be discussed; (2) To liaise with Government and other organisations; (3) To ensure an independent and objective information, statistical and supportive service; (4) To establish a viable business environment through the promotion of the necessary research, development and training; (5) To promote South African wool.

Cape Wools SA is a non-profit organisation established by the Forum as its executive arm. Its directors proportionately represent these groups and they are elected from the Wool Forum. Cape Wools reports to the Forum regarding its activities. To minimise overhead costs and to make maximum funds available for services and functions required by the industry, Cape Wools operates with a small staff complement of five and outsources certain of the functions but accepts full responsibility for the planning and management of all functions.

The company started operating in 1997. It has been granted statutory measures for the collection of statistics (records and returns) for the wool industry, which enables it to create a wool statistics data bank from which a national market indicator and other information regarding the industry can be made available locally, as well as internationally.

  • Wool Testing Bureau of South Africa Tel: 041 503 6600 www.wtbsa.co.za WTB is a test house accredited with the International Wool Textile Organisation. It’s responsible for all independent objective measurement testing services to the trade.
  • South African Wool and Mohair Buyers’ Association (SAWAMBA) Tel: 041 484 5252 SAWAMBA represents the wool buying industry in South Africa. Most of the companies belonging to it have a significant shareholding in local early stage scouring and combing facilities, or are associated with international wool trading houses.
  • South African Wool and Mohair Exchange Tel: 041 484 5252
  • South African Wool and Mohair Processors’ Association Tel: 041 484 5252
  • Wool Textile Council Tel: 041 484 5252 The South African National Committee representing the buying, processing and exporting industry on the International Wool Textile Organisation (IWTO).
  • The Wool Trust Tel: 041 484 4307 The Wool Trust was established in 1997 in terms of the Marketing of Agricultural Products Act of 1996. See note under the NAMC, previous heading.
  • South African Textile Industry Export Council Tel: 021 959 4162

 

Producer Organisations

  • National Wool Growers Association SA (NWGA) Tel: 041 365 5030 www.nwga.co.za

The production and advisory and training services are outsourced from Cape Wools SA to the National Woolgrowers’ Association (NWGA). The main aim of these services is to assist producers to increase production efficiency and profitability in order to maximise income. It involves the transfer of production technology and research results. It also includes development and training with the emphasis on farmers who previously did not have access to such services. The largest share of this budget is earmarked for the upliftment of small-scale or developing producers, mainly in the old Ciskei and Transkei regions of the Eastern Cape, Free State and Mpumalanga. In 1997, a wool development programme was launched in the Eastern Cape. The main focus was improving the quality and quantity of the wool produced in the rural areas. NWGA members are kept abreast of current news and trends in the wool industry through the monthly Wool Farmer newspaper, sent to them free of charge.

For the different breeder associations, see the “Animal Improvement & Breeders” chapter.

 

Others

  • South African Sheepdog Association www.sasda.za.net The SA Sheepdog Association’s main objective is to introduce farmers and other interested people to sheepdogs as labour saving force. This is done through demonstrations and courses, as well as competitions, where breeding success is tested and the best breeding material selected according to working ability.
  • Clotex www.clotex.co.za Contact this clothing and textile service centre through the website.
  • South African Topmakers’ Association Tel: 041 484 5252

Training and research

  • Courses at all universities/universities of technology offering agricultural degrees/diplomas cover small stock production (see the “Agricultural education and training” chapter). Two examples are: University of the Free State, Department Animal, Wildlife and Grassland Sciences, Prof JB van Wyk Tel: 051 401 2677 www.ufs.ac.za (2) Central University of Technology, Department of Agriculture Tel: 051 507 4051 www.cut.ac.za Short courses are also offered at the above two institutions.
  • The Agricultural Colleges cover small stock production in their diploma courses. For the full list, consult the “Agricultural education and training” chapter. Examples are: (1) Glen College Tel: 051 861 8500 (2) Grootfontein Agricultural Development Institute (GADI) Tel: 049 842 1113 http://gadi.agric.za (3) Dohne Agricultural Development Institute (DADI) Tel: 043 683 1240. The Provincial Departments of Agriculture, working closely with the Agricultural colleges, offer short courses.
  • AgriSETA accredited training. The following are some of these providers: (1) National Wool Growers Association (NWGA) Tel: 041 365 5030 www.nwga.co.za (2) Skills for Africa Tel: 012 377 3248 www.skillsafrica.co.za Find additional training providers at www.agriseta.co.za.
  • Council for Scientific and Industrial Research (CSIR) Fibres and Textiles Industrial Support Tel: 041 508 3223 / 89 afbotha [at] csir.co.za www.csir.co.za
  • South African Sheep Shearing Federation Tel: 051 447 3023/4 http://sasheepshear.co.za Sheep shearer training

Companies involved

Find the directory on www.capewools.co.za for a complete list of wool buyers, processors, exporters, traders and brokers.

 

Wool buyers

  • A Dewavrin Freres Tel: 041 484 4443
  • Beier Finance (Pty) Ltd Tel: 041 319 0222
  • Chargeurs Wool (SA) (Pty) Ltd Tel: 041 581 0081
  • Fibres International Tel: 041 503 3431
  • Lempriere SA http://lemprierewool.com
  • Modiano SA (Pty) Ltd Tel: 041 484 6545/6
  • New England Wool (SA) Tel: 041 360 6788
  • Segard Masurel SA (Pty) Ltd Tel: 041 451 0481 www.segardmasurel.com
  • SA Wool Exporters (Pty) Ltd Tel/fax: 041 365 4620
  • Standard Wool Tel: 041 487 0610
  • Stucken Group South Africa Tel: 041 397 4700 www.stucken.co.za

 

Processors

  • Beier Finance (Pty) Ltd Tel: 041 319 0222
  • Cape of Good Hope Wool Combers (Pty) Limited Tel: 041 992 3412
  • Gubb & Inggs Limited Tel: 041 994 7500 www.stucken.co.za
  • Nouwens Carpets Tel: 058 622 1101 www.nouwens.co.za  Details of offices in Gauteng, Durban and Cape Town can be found on the website

 

Wool Traders And Brokers

  • BKB Ltd Tel: 041 503 3302 www.bkb.co.za
  • Bruce, Lappersonne & Saunders Tel: 041 451 1201
  • Cape Mohair and Wool (CMW) Tel: 041 406 7500 406 7500 www.cmw.co.za
  • Junior Steenkamp Wool & Mohair Tel: 041 451 1104
  • Lanata (Pty) Limited Wool/Mohair Tel: 041 922 1419
  • Van Lill Woolbuyers Trust Tel: 041 486 1237

Websites and publications

See the websites listed earlier in this chapter.

  • Find a number of videos at www.nwga.co.za (under “Media gallery”).
  • The National Wool Growers Association (NWGA) brought out the Best practice reference manual for wool sheep farming in South Africa (see heading 6). It can be downloaded as a PDF file from the website. Also contact the NWGA for the publication International Sheep and Wool Handbook. Although aimed at university students, it is also highly recommended reading for anyone involved in the wool industry.
  • Find the NWGA YouTube video “Woolled Sheep Development Programme – how to get involved” at www.youtube.com/watch?v=OlZms8FwQR0
  • The Sheep Shearer Instruction Manual is available from the NWGA Shearer Training Division, PO Box 4520, Bloemfontein 9300.
  • An educational DVD of the wool value chain was produced by Cape Wools SA and the NWGA. Find their contact details under heading 6.
  • Find the latest annual publication South African Wool Market Value Chain on www.daff.gov.za. It can be found on the Directorate Marketing’s web pages on the Department of Agriculture, Forestry and Fisheries (DAFF) website.
  • Also available from DAFF are the Agricultural Marketing Extension Training Papers. The first part of the 8th in the series looks at the marketing of wool. Find the document under “Resource centre” and “General publications” at www.daff.gov.za.
  • Downloads on the GADI website – http://gadi.agric.za/ – include useful management charts and tools for working out measurements e.g. how many ewes can you keep? The latest research report also has numerous articles of relevance.
  • The Shepherd Manual by Dr JJ Olivier is part of a computer recording programme for sheep and goats. Read more at http://gadi.agric.za/software/shepherd/shepherd.php.
  • Find the latest issue of Wool Farmer / Wolboer at www.agriconnect.co.za.
  • Find the Nation in Conversation overview of the sheep industry (Jan 2017) on YouTube www.youtube.com/watch?v=GX43LXJnjzo
  • The agricultural weeklies Landbouweekblad and Farmer’s Weekly frequently cover stories of interest to the wool producer (and processor). Find archived articles at www.landbou.com and www.farmersweekly.co.za.
  • The DAFF-NAMC Trade Probe 70 (Aug 2017) contains a trade analysis of wool grease. Find the document at www.namc.co.za.
  • The Bureau for Food and Agricultural Policy (BFAP) Baseline Agricultural Outlook 2017-2026 looked at the success for small scale production programmes (pages 79-81). Find the document at www.bfap.co.za.
  • Find the general sheep publications in the “Mutton (sheep)” chapter, under the “Websites and publications” heading.

 

Some articles

The National Wool Growers Association (NWGA) brought out the Best practice reference manual for wool sheep farming in South Africa.

 

“Animal health and well being” is dealt with under the following headings:

  • Management practices for sheep (hoof care, lambing, castration etc)
  • Infrastructure for sheep (shelter, sheep-handling facilities, shearing facilities)
  • Sheep handling strategy
  • Health and disease management strategy (medicine storing, injecting sheep, controlled and notifiable disease etc)
  • Sheep feeding strategy
  • Transport of sheep

 

The “Environment” section covers the following:

  • Rangeland (soil and water management, invasive alien control etc)
  • Alternative fodder crops
  • Drought
  • Fire management
  • Game management in natural areas
  • Waste management
  • Predator control
  • Pesticides for the control of Ectoparasites in wool sheep

 

“Social responsibility” covers topics like Basic conditions of employment, skills development, Occupational health and safety etc. Contact the NWGA at 041 365 5030 or visit www.nwga.co.za.

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