Mohair price adjustment catches producers off guard

Mohair growers were shocked when mohair prices were recently adjusted.

Mohair price adjustment catches producers off guard
- Advertisement -

This had a huge economic impact on the producers, Andries Greeff, president of the SA Mohair Growers’ Association (SAMGA), told delegates at the association’s annual congress in Graaff-Reinet on 22 June.

“It completely wrong-footed everybody – producers, buyers and traders. Since then prices for adult hair remained on the same price levels, but kids’ hair is currently much too low.

“The effect of the drought was further worsened by the drop in prices in the 2016 winter season. The market indicator for the summer season was R 248,08. The 24% drop brought the market indicator for the winter season down to R169,80.

- Advertisement -

“Prices for the current season have, however, shown a slight increase, and now stand at R190,30. Buyers and traders kept on buying our mohair and marketing it overseas, with the result that there currently are again positive tendencies in the market.”

Greeff said that not only had prices dropped; production had also dropped by 8%, because of the drought.

Greeff emphasised the importance of technology to modern farming, saying: “We must become even better farmers by making use of the best available technology to produce sustainably”.

But Greeff remains optimistic.

“Once the rain returns, producers must concentrate on their biggest asset, natural grazing, because on every Karoo farm there is a ravine with a few thorn trees”.