Cape Town – A light at the end of the tunnel has come into view for the local wool industry following the lifting of China’s restriction on South African wool imports.
This comes after Agri SA and the National Wool Growers’ Association of South Africa (NWGA) raised concerns about restriction, and mentioned that since the ban was announced in April, the South African wool industry made a huge loss in wool exports to China.
Department of Agriculture, Land Reform and Rural Development spokesperson Reggie Ngcobo said that the Ministers of Agriculture, Land Reform and Rural Development, Thoko Didiza and Trade Industry and Competition’s Ebrahim Patel welcomed the decision by the People’s Republic of China to lift restrictions on SA Wool products due to the outbreak of Foot and Mouth.
“South Africa produces over 42 million kilograms of wool from 8000 commercial sheep farmers.
“In Addition to this number of commercial farmers, there are 40 000 communal smallholder farmers who contribute 14% of the total wool exports.
“These farmers would have suffered an irrecoverable loss of R730 million if the restrictions continued.
“The wool export industry is worth R1 billion.
“This ban on wool, which was harvested in the last season, would have irrecoverably dented the wool industry since this year’s harvesting is in full swing.
“This means the industry would have had to incur losses of two seasons.
“We welcome the decision by the General Administration of Customs of China (GACC) and the Ministry of Agriculture and Rural Affairs of China to lift the ban on the wool and other cloven-hoofed animals' skin products imported from South Africa as announced today
“The engagements with the People’s Republic of China have been conducted in a positive manner and the coordinated efforts by different parts of the SA government greatly assisted,” said Ngcobo.
In a joint statement, Agri SA Executive Director Christo van der Rheede said that both Agri SA and the National Wool Growers’ Association of South Africa (NWGA) are relieved to learn that the South African government has secured the agreement of the government of China to lift the ban on South African wool exports.
“The ban jeopardised more than 35 000 jobs and an additional 4 500 seasonal jobs. With more 70-80% of South Africa’s clip exported to China annually, the impact of the ban could have been devastating.
“We want to thank the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, and Minister for Trade, Industry and Competition, Ebrahim Patel, as well as the directors-general of these departments for their work in securing this relief.
“This is an example of what can be achieved through effective partnership between industry and the government,” said Van der Rheede.