Wool As A Stabiliser In A Summer Cropping Region

While wool accounts for only about 30% of his income, Free State farmer Le Roux Fourie views it as a crucial element in his cropping and livestock operation. He spoke to Sabrina Dean about the value of this commodity, especially in light of its consistently high price.

- Le Roux Fourie

Le Roux Fourie, who farms in the Brandfort district of the Free State, believes that the only way to produce more is by optimising resources to unlock their full value. In a summer cropping area, he says, the best way to achieve this is through a sheep component, specifically wool sheep.

“Brandfort is involved in cropping, but we don’t have high-potential lands. We’re more marginal than places where they have so-called watertable lands,” he explains.

Therefore, rather than trying to compete in the highrisk and variable cropping business, he uses his cropping component to add value to his sheep production.

“My view is that with different practices, such as bringing in wool sheep, I’ll be able to optimise those lands.”

A STABLE PRODUCT LINE

According to Fourie, wool can serve as a “stabiliser” to the up-and-down business of cropping; put another way, he uses his wool component as a way of hedging against risk. This method is used by most retailers.

“If you look at a retail business plan, the owners always have a product line that brings stability to the business. They want that consistency: the bread, milk and eggs for which customers come into the shop every day. You want to bring something like that into your farming operation too.”

He views his sheep component as a best-of-both commodity as its provides two products: meat and wool. His meat income is driven largely by domestic demand.

“Wool is priced on the international market. It’s also a niche product at this stage, and it’s always good to have a niche product.”

VARIETY OF CROPS