NATIONAL NEWS - The farming industry has called on the South African government to urgently engage its Chinese counterparts to discuss the lifting of the ban on wool.
Agri SA and the National Wool Growers’ Association of South Africa (NWGA) said they are highly concerned about the “unjustifiable” ban.
The ban was imposed on South Africa’s wool exports in April this year due to an outbreak of foot and mouth disease in parts of the country.
However, the farming sector now states that there is currently no disease present in their registered wool-producing facilities countrywide.
According to the sector, the first wool auction for the 2022/23 season is scheduled for August 17 and, with 70-80% of the South African clip traditionally destined for China, the ban will have a devastating effect on the local wool industry.
The value of the South African wool clip is around R5 billion per annum, said the sector.
It further said since the ban was announced in April 2022, the South African wool industry has thus far lost an estimated R734 million in wool exports to China.
Furthermore, it said, the ban also threatens the livelihoods of the industry’s 35 000 workers as well as 4 500 seasonal sheep shearers and wool handlers.
“The ban is unwarranted since South Africa has protocols in place that regulate the storage of wool after shearing for a specified time at required minimum temperatures as stipulated by the terrestrial code of the World Organisation of Animal Health (WOAH).
Christo van der Rheede, executive director of Agri SA said:
With the auction date looming for the country’s wool, it is essential that ministers Thoko Didiza and Ebrahim Patel intervene to secure the industry’s access to the Chinese market. Failure to act will have devastating consequences for industry workers, and for small-scale producers in particular.
Leon de Beer, CEO of NWGA said they are concerned about the emerging and communal wool-producing sector in particular, as most of their clip is destined for export to China.
De Beer said more than 40 000 small-scale producers market close to six million kilograms of wool annually valued at an estimated R300 million.
These producers and surrounding communities will fall back into poverty should the Chinese market remain closed for wool from South Africa.
De Beer said many commercial wool sheep producers have only recently emerged from an extended period of drought, and if wool exports to China cannot resume due to the ban, these farmers may not survive.
The National Freedom Party (NFP) has also called on both minister of trade and industry Ebrahim Patel and minister of international relations and co-operation Naledi Pandor to engage with their Chinese counterparts on this.
NFP MP, Ahmed Munzoor Shaik Emam, said they have heard from experts in the field that no outbreaks have been recorded in recognised wool-producing areas.
Thousands of jobs will be directly affected by this ban. Furthermore, our economy desperately needs to grow and not shrink. This ban will have a ripple effect and will result in more unemployment and greater poverty.