Leon de Beer: General Manager National Wool Growers’ Association of South Africa WOOL SHEEP FARMING: A LUCRATIVE COMMODITY FOR RURAL DEVELOPMENT IN EASTERN CAPE

National Wool Growers’ Association of SA  Represent SA Wool Producers  Voluntary membership:  commercial  756 communal shearing sheds (20/shed); Representing > individual small holder- and communal wool sheep farmers.

Export Destinations 2013/14 CountryGreasy (kg) Scoured (kg) T & N (kg) Total Rand% of FOB value China Czech Rep Italy India Germany Egypt UK Others: Mauritius, Portugal, Hong Kong.

Key Challenges: Emerging producers  Quality and quantity of wool produced in communal areas  Informal market/Traders  Infrastructure  Harvesting & Classing Wool  Market access  Knowledge and Information  Stock- and Wool theft  Predation and stray dogs  Wool Industry contributes >R7 million/annum

Impact: Wool marketed through the commercial market (auction) and income of communal wool producers in the EC (Source CWSA) 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%)  Job creation: 30% increase in number of communal producers in formal market

Conclusion  Wool is non-perishable- market when opportune  Export product- earns foreign currency for households in most rural and extensive farming areas in SA  “New” money to stimulate and support rural economy  Was the stimulus for establishment of many rural towns in SA over TWO centuries plus a commercial bank!  Wool has potential to continue to support rural development even today!!  NWGA needs partnership with DRDAR to continue with T&D

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