KM alternative saves farmers R840 000
An alternative wool marketing route, which gives our farmers a choice, guarantees them a premium and cuts costs, has been negotiated for Konsortium-Merino farmers.
Konsortium farmers now have the choice of delivering their wool directly to Segard Masurel South Africa (SMZA) to be processed in their mill in Uitenhage, or putting their wool up for auction. Due to the lower cost structures, producers who marketed through SMZA this season, saved themselves about R560 000 in marketing fees. The fact that SMZA does not impose a bale handling fee has meant a further saving of R280 000.
All Konsortium wool is identified under our logo in the SMZA catalogue. Vink Venter from SMZA says that when a Konsortium clip comes under the hammer “there is a buzz in the auction house” because it is evident that our clips have better quality, length and clean yield.
Initially some of the role-players were worried that SMZA's direct option would divide the wool industry further but Vink says that this past season has proved just the opposite. The wool from producers that were previously bound by other brokers to certain marketing options became available again to all local buyers when it was marketed through SMZA on the Wool Exchange. SMZA is the only seamless organization that processes wool from the farm to sliver tops. KM is proud of their contribution to this achievement.