Emergency measures instituted in the Adult mohair sector

13 Oct '10

2 min read

The fourth sale of the 2010 mohair winter season took place (12 October 2010) with a total of 108 676kg on offer, and the biggest news was the 9% decline in the adult mohair market indicator, to close at R70.85, despite emergency intervention from the mohair industry.

The drop in the adult market indicator was exacerbated by the poorer quality of the clip on offer.

Turning to the emergency intervention, Deon Saayman, general manager of Mohair South Africa, says that the Mohair Pools company stepped in to assist producers following the sudden decline in the international adult mohair market. “They agreed to take in adult mohair at a 45% premium above the current floor price level, effective immediately, for the remainder of the current winter season.”

The decision was taken after several emergency meetings convened by the Mohair Pools company and the Mohair Trust, within the mohair industry and follows increased reports of producers succumbing to the sustained and crippling drought in the Eastern Cape region. “We took the decision to introduce these measures because of the very real risk of more producers making the decision to opt-out of mohair production. Added to which, the ban on buying adult mohair by China due to the Rift Valley Fever scare, hasn't helped matters,” said Saayman.

“Essentially Mohair Pools will buy and pay for the adult mohair from producers and hold it until the price moves above the break-even figure. It could then be sold and any additional profits realized, will be paid to the producers,” explains Saayman.

Meanwhile Fine quality kids sold well today and young goats experienced good demand. The currency continued to strengthen against the dollar from the precious sale and is now 7% stronger than the start of the winter season.

Compared to the previous sale, prices were as follows:
• Young goats (winter) unchanged
• Fine adults down 2%
• Average down 9%
• Exchange rate: R/$ = R6.91 R/Euro = R9.55

The fifth sale of the winter season is scheduled for 26 October 2010.

Mohair South Africa