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Preferential offer for Konsortium-wool

Preferential offer for Konsortium-wool

Segard Masurel South Africa (SMZA) made an offer to Konsortium members to purchase wool directly from them. Besides the fact that they will be receiving a premium price for their wool, there will also be considerable cost savings.

SMZA CEO, Clarence Friskin, said at the recent Konsortium-Merino farmers’ day at the Gariep Dam that his company is pleased to be associated with Konsortium-Merinos. “We are proud to offer the growers an alternative channel for the marketing of their wool clip. Since 1948 SMZA has been buying the best quality wools, and we know that Konsortium-Merino growers deliver just that. It is this fact that makes for a perfect fit between our two organizations.”

Friskin offered the growers two options for their wool. The first is a direct option for wools used by SMZA for local processing at the mill in Uitenhage. The second option is the SMZA auction option held by Segard every second week in Port Elizabeth.

Direct option: These wools include fleeces, back and neck wools in the 18.5 micron to 24.5 micron range, with a minimum combing length of 58HM. Konsortium members will receive 20c/kg more than the previous week’s auction price. SMZA will take 2,75% commission compared to the 4 to 5% taken by the larger brokers. There will be no handling fees (this is a further saving of about R43/bale) and payment will take place within two weeks from the arrival of the wool at the warehouse. Finer wools, with a minimum length of 62HM, can also be delivered to them. This will be exported as greasy wool.

Auction option: “This option is available for the entire clip, or the producer may choose to use a combination of both options with some of the wools being sold through the direct option and the remainder going on auction. The auction option works exactly the same as that of the major brokers, but offers substantial savings for the producer. The higher the kg price per lot, the smaller the commission charged. It can vary from less than 2% at R60/kg, up to a maximum of 4% at R27.50/kg. There are no handling fees. (See examples).

Friskin says this step is not only a sound economic decision, but it also gives an identity to wool. “We have had inquiries from the UK for Konsortium wool. However, we do not have the volume needed. We also had inquiries from Italy for trademark wool. Our partnership will put us in a position to supply a regular flow of wool under the Konsortium-Merino trademark”.

Gawie van Heerden, Konsortium director, says 98 farmers with 170 000 ewes, have already joined Konsortium. The company is focusing on establishing their brand of sheep throughout South Africa. “We produce of the best wool and meat and would like to market it under our brand. The SMZA offer adds momentum to these dreams.”

To give the wool an identity, special woolpacks with the Konsortium logo are being manufactured locally. These woolpacks are available at about R40 cheaper than the packs sold at retail outlets. The Konsortium bag's carbon footprint is also smaller than that of the traditional bag.

SMZA is the third largest woolbuyer in South Africa. They process wool on a commission basis at the Cape of Good Hope Woolcombers mill in Uitenhage. This is the only mill in SA which still washes and combs wool. Friskin says the processing of Konsortium wool adds value to the product and local economy, and provides work for over 120 people.

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