Emergency measures for adult mohair

The adult mohair indicator fell 9% to close at R70,85, despite emergency intervention from the industry at the fourth sale of the 2010 mohair winter season.

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Mohair SA (MSA) said the drop was exacerbated by the poorer quality of the clip, of which 108 676kg was on offer. The robust rand – 7% stronger than at the start of season – and the Chinese ban didn’t help. MSA general manager Deon Saayman said Mohair Pools stepped in to assist producers after the sudden decline in the international demand for adult hair.

“The company agreed to take in adult mohair at a 45% premium above the current floor-price level, effective immediately, for the remainder of the winter season,” he explained.The decision was taken after several emergency meetings convened by Mohair Pools and the Mohair Trust following reports of producers succumbing to the crippling drought in the Eastern Cape.

Mohair Pools will now buy adult mohair and hold it until the price moves above the break-even figure. The hair could then be sold with any additional profits realised going to producers. Cape Mohair and Wool (CMW’s) Pierre van der Vyver said the decision couldn’t have come at a better time.

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“The brokers immediately declared the biggest portion of the better component of the adults, not sold. In doing so, they illuminated the effect of increased downward price pressure on these types and consolidated the market. This should bring more security and stability for the farmer and processor,” he explained.

Van der Vyver added that it’s comforting to know the industry has the financial power to do this. The highest price fetched by a CMW client was R160/kg, which was paid for three bales belonging to BF van der Merwe (Murraysburg), JP Lategan (Aberdeen) and BT Henderson (Steytlerville). The winter kid indicator ended on R114,01/ kg, with 86,2% sold. The young goat indicator finished on R85,84/ kg, with 82% cleared. The adult indicator was set at R62,90/ kg, with only 42,3% sold.