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

2. National Wool Growers’ Association of SA  Represent SA Wool Producers  Voluntary membership:  4 325 commercial  756 communal shearing sheds (20/shed); Representing > 15 000 individual small holder- and communal wool sheep farmers.

3. Export Destinations 2013/14 CountryGreasy (kg) Scoured (kg) T & N (kg) Total Rand% of FOB value China29 428 501197 175111 5831 890 337 13860.2 Czech Rep6 565 70700453 782 98615.3 Italy1 592 434682 7861 430 501374 765 91411.9 India2 411 833180 9450170 988 0595.4 Germany140 392486 237250 07786 243 4092.7 Egypt951 1450078 655 8292.5 UK29 8180283 13936 171 3741.2 Others: Mauritius, Portugal, Hong Kong.

5. 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

6. 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) 97/98222 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 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 12/133 461 937131 842 5785 5373 803 13/143 806 993137 919 3686 0163 623

8. 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

9. 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

10. 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