South African Wool Marketing

Abstract

As in many countries, the marketing of agricultural products in South Africa is one characterised by a complex pattern of regulations and institutional intervention. Since the 1930s the marketing of South African wool has passed through a full range of alternative structures. Originally wool was marketed in South Africa through a free market system of private sales and auctions. During World War II and the years 1972-93 full acquisition schemes operated, and also buffer stock (surplus removal) schemes in the years 1946-51 and 1958-72. After the suspension of the single channel pool scheme in June 1993 the marketing of wool in South Africa reverted to a structure of auctions and private sales. In practice the marketing of wool has finally reverted to close to its original form, as did the South African Wool Board which gave up its marketing functions and today concentrates on the promotion of wool and conduct of scientific and economic research.