Karoo Sheep – Creative Planning to Progress the Industry
Cape Wools, BKB, and OVK hosted the Karoo Winter Wool Festival over a recent weekend. The festival was hosted in Middelburg, the Karoo region of the Eastern Cape. It was an excellent event, showcasing not only the value chain activities of the South African sheep industry but also the rich Karoo heritage.
Speakers reflected on the growth prospects of South Africa’s agriculture with a focus on the activities of the Karoo region. The outlook for South Africa’s agriculture is positive in the near term, and we forecast a 3% growth in the sector’s gross value added this year (from 0,9% in 2022). This is all because of favorable rains during the summer season that supported crop production and grazing veld.
Over and above an El Niño on the horizon more issues are conspiring against the sector. These include persistent episodes of load-shedding, higher input costs, rising protection in some export markets, animal disease outbreaks, rising interest rates, intensified geopolitical tensions, ongoing weaknesses in municipal service delivery and freight, rail and port networks, and the deterioration of rural roads.
Karoo Sheep specific issues
Regarding the Karoo specifically, the message focused on how South Africa can promote agricultural growth in this sparse and very remote region by unlocking its natural assets and the heritage of the Karoo. There are various opportunities to pursue, including the region’s food heritage, high-end fashion and agri-tourism.
Exploring and expanding these opportunities would ensure that the farmers can diversify and improve their revenue streams by not solely depending on export markets of wool. High dependence on Karoo Sheep wool exports can come with challenges, such as when China temporarily banned the exports of South African wool, leading to a 22% y/y decline in South Africa’s wool export earnings.
Food heritage also offers obvious spin-offs in product development, economic value and tourism. One sees many elements of foreign food heritage products on the shelves of our leading supermarkets, but somehow these same retailers do not showcase enough of our own heritage.
The Karoo is South Africa’s hinterland and one of the natural assets of the Northern, Eastern and Western Cape because of its pristine natural beauty, clean air, peace and quiet. It, therefore, has a strong commercial and marketing value which farmers can utilize. Still, the name “Karoo” has been widely misappropriated by various individuals and businesses, misrepresenting products such as “Karoo Lamb”. In fact, some retailers may be sourcing large volumes of lamb from the Karoo without acknowledging the origin and heritage of the product.
The Karoo region farmers should
- Reclaim the Karoo name by protecting the name and identity through the registration of a Geographical Indication (GI)
- Lift Karoo Lamb out of the meat commodity mark and create its own pricing and distribution structure
- Create a different’ price point’ for Karoo Lamb
- Enforce quality and food safety standards
- Ensure producer control of supply chain and form strategic partnerships with abattoirs, packers and wholesalers
- Prevent over dominance by major retail chains
- Educate consumers about quality and value of Karoo Lamb.
The ongoing efforts to promote Karoo Sheep and Karoo Lamb as a GI have also brought about interesting spin-offs in relation to the fashion industry, which can add tremendous value to the Karoo. The global fashion industry, especially the luxury goods and clothing industry, is now demanding Karoo Sheep wool, mohair and leather from the Karoo because of the Karoo quality, reputation and heritage. Wandile Silobo, Agbiz