Farmers welcome Stone Shi’s return
…as wool broker reopens Lesotho Wool Centre
Moroke Sekoboto
WOOL and mohair farmers have welcomed the return of broker Stone Shi, saying his reopening of the Lesotho Wool Centre at Thaba Bosiu will give them renewed access to a market they believe previously delivered better returns for their produce.
Mr Shi has begun settling about M11 million owed to farmers from the 2019/20 wool season, with payments being made to farmers attached to 11 shearing sheds across the country.
The first payment of M1.07 million was made to Luma Shearing Shed in Mafeteng this week, while Mr Shi has committed to clearing the outstanding debt by 29 September 2026. The repayment plan was reached following meetings between Mr Shi, affected farmers and the government, facilitated by the Office of the Prime Minister.
The government delegation, led by Chief of Staff Sofonea Shale, facilitated the negotiations aimed at ensuring transparency and helping the parties agree on a payment schedule.
Mr Shi said he would make weekly payments until all the affected farmers had been paid.
“I can confirm that we have held meetings to come up with a payment plan, and the agreement is that I will pay the 11 shearing sheds in batches. I settled the first one, Luma Shearing Shed in Mafeteng, with M1.07 million on Tuesday and will pay another three this coming Tuesday. I will have paid all of them by 29 September,” Mr Shi said.
The businessman has acknowledged that the farmers were not paid on time after the 2019/20 wool sale, attributing the delay to losses suffered after he failed to secure a shipping permit in time for a consignment of 20 containers containing more than 1 400 bales of wool.
According to Mr Shi, the prolonged storage damaged the wool while international prices fell.
“I failed to obtain the shipping permit on time after receiving wool from the farmers in the 2019/20 period. This was while the wool was already in containers,” he said.
He said the fibre subsequently lost significant value.
“I was forced to sell it at 40 percent of its original value because it had been badly damaged from being stored in containers for a long time, and the market had dropped by the time I was able to ship,” he said.
Mr Shi said he had not abandoned his obligations to the farmers, despite the prolonged delay, and had spent the past six years raising money through his other businesses to settle the debt.
“There were rumours that I had run away, but that is not true. I have always been around, trying to raise money through my other businesses to pay the farmers,” he said.
“I took full blame for the losses and committed to paying the farmers at the rate I had used previously.”
His return has been welcomed by some farmers who say their previous dealings with him exposed them to the value of their wool and mohair.
Tankiso Mosiuoa of Luma Shearing Shed said the prolonged delay in receiving payment had been painful for farmers who depended on proceeds from their wool and mohair.
“You can imagine if you expect money in December, being sure I have sheared my sheep in August and knowing how I used to get, and you don’t receive it. It was painful, but I am now happy that we are finally getting paid,” Mr Mosiuoa said.
He said he intended to continue working with Mr Shi and would encourage other farmers to consider doing the same.
“We worked well with him, he bought our wool and mohair twice before we encountered this challenge. We were from another broker and they were not happy that we left them. We learned the value of our wool when we started working with Mr Shi. He opened our eyes,” Mr Mosiuoa said.
He said his experience with Mr Shi had changed his understanding of the value of wool and mohair and that he believed the broker had offered farmers a more attractive market.
“We were not aware that we were robbed. I am interested in working with him. I am on a campaign to encourage individuals to rejoin Mr Shi and also encourage our wool shed to work with him for maximized profits,” he said.
Mr Mosiuoa said farmers were also encouraged by the government’s intervention, which he said had helped bring the parties back to the negotiating table.
“We are going back to him and we are grateful to Prime Minister Sam Matekane for intervening. I don’t see a better market than his, we saw great value because of this so we are returning to him,” he said.
Mr Shi said the settlement of the outstanding debt was part of his efforts to rebuild trust with Basotho farmers and continue operating in the country’s wool and mohair sector.
“I want to continue working with Basotho farmers, and I assured them during our meetings that I have learned from the previous challenge and we will not encounter it again,” he said.
He said the Lesotho Wool Centre provided farmers with direct access to international buyers without intermediaries.
“The company connects Basotho farmers directly with buyers, without any intermediaries or middlemen,” Mr Shi said.
Mr Shi said he started working with Basotho farmers in 2017 and that the Lesotho Wool Centre had since processed more than 30 000 bales of wool and mohair for buyers in China, India, Italy and other international markets.
“The Lesotho Wool Centre is reopening at the end of this month, and farmers can start working with us for maximised profits. The Lesotho Wool Centre is here to stay, with and for Basotho,” he said.
The Office of the Prime Minister has confirmed that the negotiations are progressing, with spokesperson Teboho Sekata saying the parties had agreed on a payment schedule under which all affected farmers would be paid by 29 September.
He said Luma Shearing Shed had already received its payment, while BB Corp, Ha Sello in Mafeteng and Mafeteng Corp were in the process of collecting their account sales to establish the amounts owed to individual farmers.
Mr Sekata said once all payments had been completed, the parties would sign an agreement on the way forward in the presence of Prime Minister Sam Matekane.
“After they are all paid, they will sign an agreement on the way forward in the presence of the Prime Minister, turning a new chapter. Farmers will choose whether to continue working with Mr Shi,” he said.
Liphapang Lesetla, treasurer of Luma Shearing Shed, confirmed receipt of proof of payment and said farmers were grateful for the government’s intervention.
However, he stressed that the decision on whether Luma farmers would resume business with Mr Shi would be made collectively by their association.
“I cannot confirm whether we will continue working with him because it is beyond my control. We have an association that will decide on our behalf,” Mr Lesetla said.
For farmer Tebello Mofokeng of BB Corp, however, the broker’s return presents an opportunity to resume a business relationship he says has benefited farmers.
“I am personally satisfied working with Mr Shi, and I encourage other farmers to work with him,” Mr Mofokeng said.
He said one of the benefits was that Mr Shi covered transport costs, reducing the financial burden on farmers.
“Some people influence farmers to work with other brokers, but we get more money from Mr Shi because he covers the transport costs. With others, we pay M25 000 for transport per consignment,” he said.
Mr Mofokeng also said farmers had found it easier to obtain permits when dealing with Mr Shi.