An analysis of the production and marketing practices of the wool industry in Lesotho

[摘要] English: Lesotho is a small country with, apart from abundant water, very few significant naturalresources. The countries' economy is mainly based on limited agriculture and manufacturing.Most of the labour force depends on subsistence agriculture, yet this sector only contributes15% to the Gross Domestic Product (GDP). Wool is one of Lesotho's largest exportcommodities and (together with mohair) is the only agricultural earner of foreign capital. Thecontinuous decline in national wool production during the past three decades, coupled with adrastic deterioration in the quality of the rangelands, has become a serious predicament forthe Lesotho government. The competitiveness of the wool industry in Lesotho is in question,and wool farmers remain poor despite the export earnings of wool. The Lesotho governmentis also under pressure to privatise the shearing shed system, and it is seeking alternativesolutions to substitute or increase the efficiency cif the present system. These factors andremedial actions to increase competitiveness have necessitated an analysis of the woolproduction system.This study forms part of a larger study focussing on the wool and mohair industries inLesotho. The main objective of the study is to analyse the wool system in Lesotho, includingthe production, trade, and marketing processes of the industry and to recommend thenecessary remedial actions.The problem conceptualisation method was used to analyse the research problem. Bothdeductive logic and inductive reasoning were used to analyse the data and to formconclusions. The study relies heavily on a comprehensive literature study for the gathering ofsecondary data. The Rapid Rural Appraisal (RRA) technique was used to obtain thenecessary primary data, and the basic principles of action research were applied during theresearch.The study highlighted the lack of proper feeding, low reproduction rates, high mortality, andstock losses as the major reasons for low yields. Emphasis is placed on the importance toimprove the quality of rangelands and to introduce efficient production systems. Alsohighlighted in the study is the crucial role of the shearing shed system and the need toprivatise the shearing sheds through the establishment of producer-owned cooperatives.Computerisation and streamlining of the administration process during marketing shouldcoincide with the privatisation process. The development of micro-cooperatives at theshearing sheds can also serve as a structure to bring services such as the availability of inputscloser to the producer. The development of a rural banking system supported by microcooperativesas a basis should also be exploited. The present trade and marketing systemthrough the South African marketing structures should be treasured. The system of licensedtraders, though, should be liberalised because of its monopolistic nature and the lack of lawenforcement and proper policing of the system.An empirical estimation by means of a policy analysis matrix indicates that the wool systemin Lesotho is not competitive and efficient at all. It shows that the economy is losing foreignexchange from local production because the opportunity cost of its domestic resources ismore than the foreign exchange it gains. This is in total contrast to what the industry andgovernment believe since they regard wool production as the flagship of all the agriculturalsystems in the country. The study, however, shows that an increase of 15% in woolproduction output is sufficient enough to ensure competitiveness. The study thereforeconcluded that the wool system, as a vital supplier of income at household level in the ruralareas, should increase productivity at the production level to increase its competitiveness.

[发布机构] University of the Free State