South African mohair growers have experienced turbulent times during the last 12 months, according to Mr. Frans Loots, general manager of Mohair South Africa.

    Mr. Loots said various non-market related factors had had a negative impact on the mohair industry and contributed to a lack of activity at auction sales, resulting in downward pressure on raw-mohair prices.

    Demand has been affected by political instability in the Middle East; the Gulf War; SARS in China and other Far East countries; international currency instability; and the relatively-strong South African rand.

    Mr. Loots said mohair prices and market demand had also suffered from recession in some mohair-using countries; a lowering of pipeline stocks; imports of mohair into South Africa, which could have had an influence on auction activity; and difficulties facing local processors, whose competitiveness had been threatened by the strength of the rand.

    However, Mr. Loots expressed optimism in mohair’s long-term prospects, and said a recent analysis of the international market showed “positive signs”.  His optimism was supported by a number of international mohair users.

    Pipeline stocks are at relatively-low levels and forward contracting has already commenced, he pointed out.  Buying patterns have changed with emphasis on orders for prompt delivery, putting the emphasis on stock services throughout the pipeline.

     There are indications that fashion favours mohair and that international prices of semi-processed mohair are reasonably competitive.  Product and market development are priorities in various segments of the market, with developments in the furnishing-textile sector holding exciting prospects for future demand, he said.

    At international level, several mohair users are putting strong emphasis on mohair in their marketing campaigns for the next two or three

seasons, which could have positive results for growers in the next 18 months.

    The industry is encouraged by reports from China that the SARS problem is under control. This could be a positive sign for mohair.

     It is noted that during the last two years the United States stockpile of mohair has dramatically decreased.  Consequently, South African producers can expect imports to pose less of a problem over the next two years.

    There is evidence of an increase in the use of mohair in the production of hand-knitting yarns.  The introduction of new spinning technology could open new avenues for the use of mohair in fabric weaving.

    During the past season or two it has again become evident that growers who pay more attention to quality standards in clip preparation should be better positioned to “weather the storm” of a downturn in the market.  In this regard it is important to remember the words of Dr. Paolo Zegna: “There will always be a market for superior quality.”

     Summing up, Mr. Loots said that it should be borne in mind that mohair was a rare natural fibre, and in total textile terms of significant volume, amounting to less than 0.01% of world fibre consumption.  It was not a fibre suited for use in bulk markets.

     “The future of the fibre, therefore, lies in exclusive, luxury niche markets, catering for discerning, quality-conscious consumers at the very high-end income level.  This market segment, in terms of natural fibres, is regarded as a growing market, which bodes well for the future of mohair,” he said.