Good year for SA mohair industry

Good demand and increased domestic consumption in China, coupled with a weaker South African currency, drove mohair prices upwards consistently during the financial year ended May this year.

Speaking at the annual congress of the Mohair Growers’ Association in Graaff-Reinet, Cobus de Klerk, chairperson of the association, said strong adult prices gained 31% from the opening sale of the year to close on R213,20/kg.

“Overall price levels remained very good with the average market indicator remaining fairly consistent during the summer season, gaining considerable momentum during the latter half of the year, closing 11% higher at R217,89/kg at the final sale of the year,” De Klerk said.

He added that local top-makers once again took up the bulk of the offering, with greasy buyers contributing 27% to total purchases.

“There were somewhat mixed results within the overall rise in prices, as the kid segment of the market continued to experience pressure. The GDP growth of the eurozone, specifically Italy, has been under pressure.

“This impacted negatively on the textile sector, including the kid mohair sector. The continuing strong demand for young goats, especially adults, resulted in China overtaking Italy as the biggest importer of mohair from South Africa,” said De Klerk.

The kid sector is expected to remain subdued in the short term.

“Sustainable production practices and traceability of the fibre will become increasingly important, and compliance and innovation will result in sustained good demand for the fibre,” he concluded.