IN 1989, BLACK FARMERS ACCOUNTED FOR 0.5% OF SOUTH AFRICA’S TOTAL WOOL PRODUCTION. TODAY, IN 2026, THEY ACCOUNT FOR A 16% SHARE OF PRODUCTION
I am sitting in the audience at the National Wool Growers Association Congress here in Jeffreys Bay. The rain is pouring outside, and it’s chilly in the big hall we are in at Mentors Country Estate. Even more chilling are the insights we have just received from Professor Johann Kirsten of Stellenbosch University. Prof Kirsten is one of South Africa’s most eminent agricultural economists, and his words should always be taken with necessary reverence. This morning, he took us through 100 years of formal structures in South Africa's wool industry.
I will find time to reflect more on his speech at a later stage, but I do want to raise a few points from his talk. Among other things, he reminded us that wool has always been part of the South African economy. He stated that “Wool has always been part of the agricultural economy of South Africa and the Cape Colony. In 1866, wool production was responsible for 71% of the GDP of the Cape Colony”.
Of course, as other industries grew, this changed, and the South African economy is now more advanced. But it is always important to remember just how important this industry has been over time.
Still, the wool industry remains vital to South Africa’s farming economy. For example, wool has been among the top 10 agricultural products exported by South Africa over the last hundred years.
More fascinating is the story of how the NWGA, with government financial assistance, commercialised Wool production in the communal areas of the Eastern Cape. This deliberate effort to bring black growers into the commercial export value chain is often underappreciated! For example, in 1989, black farmers accounted for 0.5% of South Africa’s total wool production. Today, in 2026, they account for a 16% share of production.
Still, this is an undercount as production volumes of black farmers on freehold land in other parts of the country are not included in this statistic. My guess is that it is probably exceeding 20%! This is encouraging progress, and continuous collaboration between organised agriculture and the government is key. Improving genetics and infrastructure, and addressing stock theft, are among the key interventions.
Improving the genetics and quality of sheep farming and wool production in the Eastern Cape, Free State, and the Northern Cape will help the wool industry increase exports. There is solid demand from China. This would also bring much-needed economic improvement in rural South Africa. Imagine the impact of better quality, better price and bigger volumes on the income of rural families. Instead of around R300 million per annum, these growers can bring a potential R1 billion to rural areas.
In a session that I moderated, we focused on “inclusive and sustainable sheep economy”. In this session, we heard from various new-entrant commercial farmers, government officials, and production advisors, who shared their first-hand experiences and envisioned the future of this industry.
The key point that came out was the need to focus on breeding, address biosecurity breaches, deal with stock theft, and improve land governance. These are some of the constraints the farmers raised in our discussion, amongst other things.
--Wandile Sihlobo is the Presidential Envoy on Agriculture and Land. He is also the chief economist of the Agricultural Business Chamber of South Africa, and a senior research fellow in the Department of Agricultural Economics at Stellenbosch University.