Mohair auction fails

Mohair auction fails

MASERU – THABA-BOSIU wool centre has failed to hold mohair auction due to inadequate quantities, thepost can reveal.
It only managed to collect 300 bales, 900 short of the 1 200 required to hold an auction. The Chief Executive Officer of Maseru Dawning, Stone Shi says if things go according to plan the centre will have an auction next month. He said three government’s shearing studs out of 40 that have promised to supply the centre with wool have already delivered.

He said Motlejoeng shearing stud in Mohale’s Hoek, Duma and Ribaneng shearing studs in Mafeteng have already supplied 80 bales of wool.
Shi said because of the low quantities they could only have a testing report instead of a certificate for the pilot auction.
He however said they have an arrangement with the Wool Testing Bureau of South Africa that they would send their workers if these are 4 000 bales of wool so that they could get certificates.
Shi said a testing report does not have an impact on the buyers.

The problem is with the certificate, he said. “That is what BKB was using against us but once things get going in full force we will also have testing certificates,” Shi said.
He said there is still confusion amongst some farmers who see him as the buyer when he is a broker.

“They come and expect to get paid but we can only process payment if we hold an auction which requires certain quantities,” Shi said, adding that as the broker, he would deduct a 4 percent commission and 1.5 percent for storage, workers and insurance. These, he said, are the same fees BKB is charging.

He said he would also deduct a dipping fee but the Ministry of Small Businesses is yet to decide how much that should be.
Bales will be bought by farmers through their shearing studs accounts and the commissions will not be deducted directly from an individual farmer.
He stated that what sets the centre apart from BKB is that “farmers only incur transport to the centre”. The cost from the centre to the factories will be paid by the buyers, he added.
Shi said farmers would no longer pay 14 percent VAT like they used to do with the BKB and they would cut the middle- man and sell directly to the factories.

Tekane Thibeli, a farmer from Rapo-le-Boea shearing stud, said they have moved their mohair from a facility owned by BKB in Masianokeng to Thaba Bosiu Wool Centre.
Thibeli said they are doing that because they realised that there is no way the mohair would reach BKB because of the new Agricultural Marketing Regulations of 2018 enacted by the parliament.
“We cannot take our mohair to BKB because the new regulations say wool or mohair can only leave the country after being sold. We advised ourselves that keeping our mohair at Masianokeng when we do not know what the end will be was not in our advantage,” he said. He said at least at the centre they know when enough quantities are met, their mohair would be auctioned and they would get what’s due to them.

Lemohang Rakotsoane

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