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Wool brokerage opens up for competition

Aug. 15, 2019 2 min read

MASERU - Five more competitors in the wool and mohair promotion business are set to compete with Thaba-Busiu Wool Centre following award of new licenses for brokers and auctioneering.

The government of Lesotho through the Cabinet Sub-Committee on Wool and Mohair has on Wednesday this week awarded brokers and auctioneering licenses to five local and South African companies.

The companies are Maluti Wool and Mohair Centre which has been awarded wool and mohair brokering and auctioneering licenses; Frasers for wool and mohair shearing and bulking storage licenses; OVK for wool and mohair brokering and auctioneering licenses; BKB for wool and mohair brokering and auctioneering licenses as well as Highlands Veterinary Services for wool and mohair brokering and auctioneering licenses.

Speaking at the press conference held in Maseru, the Minister of Small Businesses, Cooperatives and Marketing, Chalane Phori said the awarding of the licenses followed interviews that were conducted on Monday this week by companies that had applied.

He said the awarding of licenses was aimed at affording wool and mohair farmers alternative brokers form their produce rather than restricting them to one broker. He said this was per Prime Minister Thomas Thabane intervention and instruction in the wool and mohair impasse that saw some farmers failing to get their payments while some got their payments too late.

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“We intend to open competition in order to get best value for wool and mohair in prices and the best service. We believe that a mixture of local and South African companies will promote linkages of the countries value chains unlike in the past when the knowledge was limited to shearing, packaging and documentation since it is now extended to brokering, auctioning and export logistics,” he said.

Mr Phori said he was looking forward to a development where wool and mohair beneficiation will be done from start to end within the borders of Lesotho up to garment manufacturing.

Speaking at the same event, Lesotho Wool and Mohair Farmers Association Deputy Chairperson, Teboho Leleka expressed gratitude to the government over the awarding of licenses, indicating that it signified the government commitment to address the needs of farmers as they now have more options about where and to who to sell to.

He said: “We believe the prices will be competitive now that the companies are many. We were really not satisfied with the money we were paid this year for our wool and mohair. The awarding of licenses indicates that our plight might be over.”

On behalf of brokers, Lehlohonolo Matee of Maluti Wool and Mohair Centre said they promised to provide good service to the farmers and urged the government to offer any required support in the process.

The licenses will be renewed annually.

As a result of the new developments the farmers have withdrawn the planned protest demonstration which was to take place on Thursday August 15 in Maseru to petition the Prime Minister.


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