South Africa is one of the major producers of wool in the world, with more than 90% of the country's wool clip exported in raw form.  Much of the clip is either Merino or from Merinos that have been crossed with other breeds to include qualities for meat production.  Although primary production is flourishing locally, the processing industry has almost completely died out. 

To fully understand the ins and outs of the wool value chain, a good starting point is to understand the terminology. 

Article by Segard Masurel Wool Buyers