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

2. Background: NWGA  10 000 voluntary members  846 communal shearing communities  > 17 000 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.

3. Infrastructure development Before After

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

5. Marketing Support Broker field services involved

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

7. Genetic Improvement 27 988 rams + 2 868 rams in 2012 Progeny testing: Clean fleece weight 30.5% Clean wool price 18.7% Clean wool income 32.6%

8. Impact: Long term SeasonKilogramValue (R)Nat. Price (c/kg) Comm. Price (c/kg) 97/98222 6101 502 9081 225675 99/00336 7001 965 5571 102584 01/02535 9116 927 6402 2771 293 03/042 029 55617 768 9552 109876 06/072 345 99130 791 4962 5941 313 07/082 809 55145 514 7263 2391 620 08/092 666 93343 149 7062 5481 618 09/102 807 16164 676 9893 2222 304 10/113 027 27671 749 1043 9002 370 11/123 555 077113 015 8985 2363 179

9. 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%)

10. Wool Production

11. Wool Production: Communal

12. 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)

13. 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)

14. 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)

15. 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

16. Thank you!!  NWGA contact details: Tel. 041 365 5030 Fax. 041 365 5035 nwga@nwga.co.za P.O. Box 34291 41a Pickering Street Newton Park Port Elizabeth 6055 www.nwga.co.za