The announcement came almost five months after China first announced the ban at the beginning of April. 

ALSO READ: Wool industry heavily impacted by China’s ban on imports due to FMD

The ban was implemented due to outbreaks of foot-and-mouth disease (FMD) in South Africa.

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The Chief Executive Officer (CEO) of Cape Wools SA, Deon Saayman, told OFM News that estimates show that the industry had lost about R730 million due to the ban. “A large portion of that will not be recoverable.”

Another challenge the industry will now face, said Saayman, is to find enough vessels to ship the complete backlog of wool, which might take some time.

How the ban impacted employment

According to Saayman, it is unclear if any jobs were lost as a result of the ban. 

“The biggest factor is the loss in farmers and also the communal farmers, because it is very easy to actually no longer produce any wool and just convert to meat.

“We just hope that that switch was not too big. We won’t know yet until we can see at the end of the season what the actual production volumes were.

“Lots of pressure would have come on the actual farmers in terms of the produce they can deliver.”

LEES OOK: #FMD: Kleinskaalse wolprodusente, werkers bedreig deur China-verbod

Meanwhile, Leon de Beer from the National Wool Growers’ Association (NWGA) told OFM News that China’s ban was probably one of the biggest challenges that the South African wool industry had to face.

NWGA and Agri SA released a joint statement on the matter in August this year, describing the ban as unfair, fearing that it threatened the livelihoods of the industry's 35 000 workers, as well as 4 500 seasonal sheep shearers and wool handlers.

De Beer further stated that up to 80% of the country’s wool is exported to China. He added that although South Africa still has markets in Europe, Egypt and India, the ban was a big concern because it had the potential to drastically affect the demand for wool at local auctions.

ALSO READ: Lifting of wool import ban by China widely welcomed

The South African government was in constant communication with China in a bid to have them lift the ban.

These constant interactions paid off and Minister of Agriculture, Thoko Didiza, and Minister of Trade and Industry, Ebrahim Patel, issued a statement in which they welcomed the decision by the People’s Republic of China to lift restrictions on South African wool products, due to the outbreak of FMD.

The agriculture department shared that South Africa produces over 42 million kilograms of wool from 8 000 commercial sheep farmers. It said that in addition to this number of commercial farmers, 40 000 communal smallholder farmers contribute 14% of the total wool exports.

“We welcome the decision by the General Administration of Customs of China (GACC) and the Ministry of Agriculture and Rural Affairs of China to lift the ban on the wool and other cloven-hoofed animals' skin products imported from South Africa as announced,” said Didiza.

“The engagements with the People’s Republic of China have been conducted in a positive manner and the coordinated efforts by different parts of the South African government greatly assisted,” added Patel.

Cape Wools SA announced on 23 August 2022 that China lifted its ban on the import of wool from South Africa with immediate effect.

OFM News