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

Background: NWGA  voluntary members  846 communal shearing communities  > 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.

Infrastructure development Before After

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

Marketing Support Broker field services involved

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

Genetic Improvement rams rams in 2012 Progeny testing: Clean fleece weight 30.5% Clean wool price 18.7% Clean wool income 32.6%

Impact: Long term SeasonKilogramValue (R)Nat. Price (c/kg) Comm. Price (c/kg) 97/ / / / / / / / / /

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%)

Wool Production

Wool Production: Communal

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)

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)

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)

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

Thank you!!  NWGA contact details: Tel Fax P.O. Box a Pickering Street Newton Park Port Elizabeth