According to the South African Business Daily, South African wool production may increase in 2013 because the wool industry has recovered from the effects of Rift Valley Fever. After the outbreak of Rift Valley Fever, South African wool production in 2011-12 was reduced from 48.2 million kg in 2009-10 to 44.8 million kg.
However, according to the chairman of South Africa’s Cape Wool, there were no new cases of sheep disease reported last year.
According to Cape Wool, the number of wools received by traders in the second half of 2012 increased by 4.5% year-on-year.
On January 9, 2013, the first wool auction was close to 15,400 bales, possibly in Port Elizabeth.
Before the Christmas holiday, the Cape Wools Market Index rose by 25.8% from the opening price in mid-August last year to reach 109.91 rand/kg.
Due to strong demand from China, wool prices have risen. Last year China purchased about 48% of all South African wool.
According to the signal from China's economic improvement, Cape Wool expects South African wool prices and demand to be better in 2013.
The group said that, to a large extent, the fear of the US fiscal crisis has faded, which also indicates that the prospects for South African wool are bright.
Last year, a total of 289,689 bales of wool went into the auction and the sales amount was 2.27 billion rand, which was 36% higher than the previous year.
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