Mohair resilient in recession: expert

Rangiora-based mohair exporter Chris Sundstrum says while mohair prices seem to be resisting the economic downturn, the same can not be said about other goat fibre.

Mr Sundstrum, who is also president of Federated Farmers North Canterbury, said there were only a couple of mohair sales a year, but indications were demand had gone up.

"My own company, Mohair Pacific, has seen the price for adult coarse fibre go from $8.50 per kilogram to $11 per kilogram.

"That's a 22 per cent uplift from the previous auction for 35-micron fibre.

"The highest quality superfine kid fibre, used for suiting material is holding steady at around $40 per kilogram for 25-micron fibre," Mr Sundstrum said.

Mr Sundstrum believed the mohair fibre market was under-supplied by about 15 per cent.

Most of the world's demand for mohair was met by South African growers, he said.

However, these growers were often beset with difficulties preventing the fibre from reaching its market, he said.

New Zealand's production of about 53,000 kilograms made up only one per cent of total world production.

The prices paid for super-fine kid fibre were remaining steady, but it seemed there was continued strong demand for the coarse angora fibre, he said.

"It raises the price of the whole clip, dramatically," Mr Sundstrum said.

The way the prices were increasing for coarser fibre was an important indicator demand for high-end rugs and coats was growing, he said.

Mohair from young goats or kids is used in high-quality suits, but as the animal ages, the wool, at 32 microns, becomes suitable for velours and knitwear and, from 34 microns, in the production of coats and rugs.

The average Angora goat produced about 4kg of mohair each year.

However, despite the rising fortunes for mohair producers, there was little demand for cashmere and cashgora fibre, Mr Sundstrum said.

Although his company Mohair Pacific did at times accept cashmere and cashgora it was "not flavour of the month".

Cashmere is the fine fibre or down at the base of the coat of a feral or cross-bred goat, which is removed by combing or shearing before the goat moults in autumn.

Cashmere has a hair running through it which has been breed out of the mohair goat, Mr Sundstrum said.

So cashmere had to be de-haired before it could be processed which was a slow and expensive process and meant actual yields could be very light, he said.

Because of this and although the fibre could fetch up to $100/kg, the actual price paid for the resulting net yield could be as low as $6/kg or $7/kg, Mr Sundstrum said.

Buyers insisted on strict quality control and any contamination by coloured fibres - or with moth, meant the fibre had to be dumped, Mr Sundstrum said.

It was "very easy" for the fibre to become contaminated, because even the inclusion of a light, milky-fawn coloured fibre would mean it was worthless, he said.

"There is no market for coloured fibre."

Cashmere was now processed in countries like China, which had low labour costs, Mr Sundstrum said.