4 March 2024
The mohair broker House of Fibre concluded a successful ram auction season at a time when the small livestock industry is struggling due to high input costs and lower product prices.
Stud rams at House of Fibre’s seven auctions fetched an average of R37 356 and selected commercial rams averaged R18 824. Commercial rams were sold for an average of R8 829.
“The outstanding quality seen throughout the year reflects the unwavering commitment to excellence of our Angora stud breeders,” says House of Fibre’s auction report.
A total of 469 rams were sold at seven auctions involving House of Fibre.
“We note that our commercial breeders who buy rams at our auctions improve their Angoras and fleeces. That makes us proud.”
The most expensive ram for the season was sold at the national Angora ram auction in November 2023 in Graaff-Reinet. Ray and Donna Hobson of Steytlerville sold this ram to Johannes Conradie of Aberdeen for R87 000. The second most expensive ram, at R70 000, was sold at the Van Hasselt and guest sellers field ram auction. Jordi van Hasselt of Prince Albert sold it to Leon Eybers and Roland du Toit of Karoo Angoras.
Good start, but…
According to Pierre van der Vyver, manager at House of Fibre, the mohair market, like other world commodities, experienced a price decline with reduced demand in 2023.
“The main cause was sky-high inflation rates in all consumer countries due to political instability. The ongoing wars have the potential to turn into a global crisis for everyone.”
He says House of Fibre was hesitant to accept the low prices and encouraged producers to put reserve prices on their hair. House of Fibre also bought its own mohair to support the market at a minimum level.
This strategy paid off and the market began to stabilise by October 2023, according to him. Thanks to this decision, House of Fibre was able to move a large quantity of accumulated stock at an improved price in December.
According to Mohair South Africa, 360 000 kg (360 tons) of mohair was exported from South Africa to Eastern markets in December. About 15 tons of the remaining stock was offered and sold at the first auction of the summer season on February 13.
“It was a pleasant surprise for many farmers who received an unexpected cheque in December and February,” says Van der Vyver.
According to Mohair South Africa’s market indicator, mohair prices increased by a solid 13% during the first auction. The hair was mainly purchased by China and Taiwan. Both countries have shifted to mohair as a fibre, with alpaca hair being the first choice due to cheaper prices in 2023. China also began to experience an economic upturn.
According to Van der Vyver, another encouraging sign is renewed interest from Europe, but this market is still price-sensitive. Two auctions of all types of hair will be held in March. “It will be a true test of how strong the recovery in demand is.”
Although the market is trading 6% below last year’s levels, “it may be good to create a more sustainable price in demand”, says Van der Vyver. Producers also feel there is increasing pressure for an acceptable carbon footprint of the product they deliver.
