FOLLOWING extensive debate and deliberations, the National Woolgrowers Association’s (NWGA) executive committee has decided to investigate the possibility of establishing a development fund for the wool industry.
According to NWGA chairman, Guillau du Toit, this is being done against the background of the current decline in external development funds (such as funding from government sources), economic pressure on existing industry assets and investments, as well as challenges in development partnerships.
“The proposed fund will enable the industry to be more self sufficient, while maintaining current quality standards and development initiatives,” said Du Toit.
“An industry fund can only be implemented if it carries the support of wool producers. This fund will assist with the funding of those projects that will benefit the total value chain.
“Should such a fund be implemented by the wool industry, it will create a sense of ownership of every rand that will be collected. This is in contrast with a statutory levy that is subject to many rules and regulations and prescribed by law.
“With a statutory levy, the wool producer does not have full control over the funds that are collected,” he added.
The SA Wool and Mohair Buyers’ Association (SAWAMBA) will give consideration to administer the fund in the same manner as the wool promotion contribution.
It is envisaged that the following projects be funded by this: shearer training, to retain this skill in South Africa; maintenance of monitor farms in support and research on healthy predation management practices; and improved communication to all interested parties in the value chain (including producers).
“To execute these projects, an amount of approximately R5,8 million per annum is required, which will come down to a contribution by wool producers of only about 0,135% of the total value of the clip,” said Du Toit.