Agricultural business chamber of commerce Agbiz, federation of agricultural organisations AgriSA and the National Wool Growers’ Association of South Africa (NWGA) have welcomed an agreement between the South African government and the government of China to lift a ban on South African wool exports.
Agbiz says the decision is a welcome development within the context of an increasingly volatile environment for international trade.
When South Africa relinquished its foot-and-mouth-disease (FMD-) free status in 2019, a protocol was agreed upon with the government of China to mitigate any chance of contamination by registered warehouses following the time/heat inactivation protocol.
The protocol was put in place precisely to ensure consistent supply in the wool trade when biosecurity is under threat and these measures needed to be trusted to mitigate any risks posed by an FMD outbreak.
However, exports were once again halted when an FMD outbreak was detected in the northern provinces of South Africa earlier this year.
About 80% of South Africa’s wool exports are destined for China, thereby threatening the sustainability of an industry that supports 8 000 commercial farmers and 40 000 communal farmers.
The ban jeopardised more than 35 000 jobs and an additional 4 500 seasonal jobs. With 70% to 80% of South Africa’s wool exported to China yearly, the impact of the ban could have been devastating, says AgriSA.
Agbiz and the wool industry worked closely with the South African government – including the departments of Agriculture, Land Reform and Rural Development, Trade, Industry and Competition and International Relations and Cooperation – in reaching out to their Chinese counterparts to find a solution.
AgriSA and the NWGA say they 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 international and national government cooperation is an example of what can be achieved through effective partnership between industry and government, AgriSA says.