…as farmers praise its efficiency, timely payments and value for money
Moroke Sekoboto
PREMIUM wool and mohair broker, Baokunyaoda, is making a strong mark on Lesotho’s wool and mohair industry, promising farmers faster payments, lower transport costs and more direct access to international markets.
Only five months into its Lesotho operations, the company has already traded with woolsheds in Mokhotlong, Quthing, Thaba-Tseka and Butha-Buthe, as well as private traders.
Farmers who have done business with the company say its approach is bringing much-needed efficiency to an industry where delayed payments, high transportation costs and multiple intermediaries have long eaten into their earnings.
Baokunyaoda is a licensed wool and mohair broker and auctioneer registered in the Kingdom of Lesotho and regulated by the Ministry of Agriculture. The company is the Lesotho arm of a Baokunyaoda Group that has purchased Lesotho wool and mohair through South African auctions for over 30 years, and which operates a large, vertically integrated processing business in China spanning fibre testing, scouring, combing, spinning, weaving and finished textile manufacture.
Its core activity in Lesotho is to broker and auction wool and mohair on behalf of Basotho farmers, connecting local clip directly to large, established international firms and mills – principally in China – rather than routing it through the traditional South African auction system and its multiple layers of local agents and secondary traders.
Baokunyaoda Public Relations Officer, Motlatsi Mofokeng, told the Lesotho Times yesterday that the company was established in Lesotho after recognising the quality of the country’s wool and mohair and the challenges faced by local producers.
“We came to Lesotho after realising the quality of the product and understanding its longstanding challenges and how we can fix them for the betterment of Basotho,” Mr Mofokeng said.
He said the company was focused on providing rapid market access, building trust around quality and positioning Lesotho wool and mohair as a premium brand in China, which he described as the world’s largest textile market.
Baokunyaoda, he said, was leveraging its international experience to connect Basotho producers more directly with Chinese buyers while reducing the number of middlemen involved in the trade.
Mr Mofokeng said this model was already producing tangible benefits, particularly through faster payments and reduced transportation costs.
“Baokunyaoda has been in operation for 35 years globally and five months in Lesotho. Our main purpose is to establish a mutually beneficial relationship with farmers and the Government of Lesotho through the Ministry of Agriculture,” he said.
He said the company’s payment system was one of its major advantages, with farmers receiving payment within days rather than waiting for lengthy auction and export processes.
At Mateanong Woolshed in Mokhotlong, for instance, the company received two consignments after farmers were satisfied with the payment process.
Mr Mofokeng said all farmers whose products were received from Mateanong were paid within five days, depending on the quantity and sorting of their wool and mohair.
He said the company also helped farmers navigate disruptions caused by the outbreak of Foot and Mouth Disease (FMD), which affected the movement and handling of livestock products.
Another major benefit, he said, was the reduction in transport costs.
“Wool and mohair farmers are mainly based in the mountainous areas and make a living from their products. At Baokunyaoda, we offer real-time payments as we auction wool and mohair in Lesotho, unlike other brokers who auction it from Port Elizabeth, adding costs such as transportation,” Mr Mofokeng said.
He cited BB Corp Woolshed in Butha-Buthe as an example, saying the woolshed had previously incurred transport costs of about M32 000 to Port Elizabeth, compared with approximately M2000 to transport its products to Baokunyaoda premises in Maseru.
“We volunteered to cover that transport cost because they were among our first clients from Butha-Buthe,” he said.
Baokunyaoda has since received consignments from Quthing, Mantšonyane in Thaba-Tseka, Butha-Buthe and private traders.
Mr Mofokeng said the company’s ambitions extend beyond simply buying and selling wool and mohair.
He said Baokunyaoda plans to invest in local infrastructure and create jobs, with a long-term strategy to establish processing factories in Lesotho within the next three years.
The factories, he said, would add value to wool, mohair and other fibre products before they leave the country.
“This aligns with national efforts to transition from subsistence to commercial farming and reduce reliance on raw exports,” he said.
He added that the company wanted to see Lesotho become a preferred supplier of natural fibres to the Chinese market.
“Our unwavering mission is to bridge the gap between farmers, government and the global market. We are committed to providing producers with direct access to international market intelligence and ensuring the delivery of prompt, reliable payments,” Mr Mofokeng said.
Farmers applaud new approach
Farmers at BB Corp Woolshed in Butha-Buthe are among those who say they have already experienced the difference.
The farmers recently received their payments within two days after delivering their wool and mohair to Baokunyaoda.
Raphoko Mokoteli said the company had helped them significantly reduce transportation costs, particularly after FMD restrictions disrupted the traditional movement of their products.
“We benefited even though FMD emerged and disrupted our operations. There were many costs for our wool and mohair to reach Port Elizabeth,” Mr Mokoteli said.
He said that following the outbreak, they were required to transport their wool and mohair to Mohale’s Hoek, where it was processed for eight days before being transferred to Port Elizabeth.
“We were separated from our product for eight days, with extra costs before the transfer,” he said.
Mr Mokoteli said Baokunyaoda offered a simpler and more affordable alternative.
“When we were approached by Baokunyaoda, we were impressed because it reduced costs. We just transport our wool and mohair to Maseru and Baokunyaoda takes care of everything,” he said.
He said the company had eliminated the costs associated with transporting their products to Mohale’s Hoek and Port Elizabeth.
“The costs are lower, the payments are better and timely. They broke the record by paying us in two days after promising to pay us in three days. Baokunyaoda’s approach is amazing; the services are perfect,” Mr Mokoteli said.
He added that the company had also built trust among farmers by involving local extension officers, veterinarians and police during its engagement with them.
Another BB Corp member, Mats’okolo Ranthoko, said timely payment was particularly important because many farmers depended on wool and mohair for their livelihoods.
“It is my first time taking my products to Baokunyaoda, yet they have already paid us. We are excited because we enjoyed their services compared with the previous broker,” Ms Ranthoko said.
“With the previous ones, we would be wondering when we would be paid, but with Baokunyaoda, we are enjoying our money. We received our money in two days. We encourage other farmers to join Baokunyaoda because of its effectiveness and efficiency,” she said.
Phumo Sello, another BB Corp member, said the company’s service had changed their experience from the moment they arrived in Maseru.
“We left here on Friday and our wool and mohair was accepted the same day and started being processed. Baokunyaoda paid for our transport, accommodation and food over the weekend,” Mr Sello said.
He said the farmers began receiving their payments at around 18:00 on Monday.
“In the past, it took months to be processed because they waited for it to be auctioned and exported as a South African product. We were paid from South Africa, not China, meaning South Africans were reaping us off. With Baokunyaoda, we get real value for money from our products,” he said.
Treasure Molefi Raletina described Baokunyaoda as a company that had demonstrated genuine concern for farmers.
“Baokunyaoda is like a parent who takes care of orphans. It first showed love by paying for our transport and then outdid itself when it made the payments,” Mr Raletina said.
He said the timely payments had helped heal what he described as the farmers’ “2019 wounds”, referring to previous difficulties experienced in the wool and mohair sector.
He urged Baokunyaoda to establish an office in Butha-Buthe to bring its services even closer to farmers.
For Baokunyaoda, however, the early success is only the beginning.
The company says its ultimate goal is to build a sustainable wool and mohair value chain in which farmers earn more from their products, young Basotho find employment opportunities and Lesotho increasingly exports finished, value-added fibre products rather than raw materials.
Mr Mofokeng called on farmers to join the company in building what he described as a long-term, mutually beneficial partnership.
“Lesotho wool and mohair is ready to become China’s preferred natural fibre partner. Through focused marketing strategies, we are not only opening new markets, but creating jobs, empowering farmers and youth, and building a lasting win-win industry partnership,” he said.
