LETTER: Flaws in plan to sell horn
Demand reduction needs to be driven by enforcing the laws promulgated in horn-consuming countries
The arguments vented by commentators to promote the concept of a central selling organisation (CSO) as the anchor component of the legalisation of the trade in rhino horn debate are seriously flawed.The success of a CSO, as once practised by de Beers for the sale of diamonds, had as a fundamental tenet, the focus on price stability throughout all aspects of the industry: the producer, the trader, the polisher and the consumer.This was achieved via a supply-control mechanism at the De Beers wholesale level coupled with the ability of its customers to buy and move diamonds to the international market. In poor market conditions, such as high interest rates, de Beers put into stock millions of US dollars worth of diamonds to avoid a slump in prices and for these stones to be released to the market under better economic conditions.Another key component of such a strategy was the massive annual investment in marketing campaigns to promote diamonds to the world consumer using its well know...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.