WFDB Accuses SoC of Threatening Diamond Wholesalers, Industry
July 02, 03
The WFDB presidents meeting in Sun City, South Africa concluded yesterday, with much of the talk revolving around the effects of the implementation of the Supplier of Choice (SoC) program by the DTC. The delegates resolved that SoC is “seriously threatening the business structure of the established wholesale diamond sector, and is likely to have a major adverse effect on the future of the entire wholesale diamond trade and industry”.
The delegates say the source of the threat is that under SoC the rough market is concentrated in fewer hands.
Further to the resolution, a committee will be created to investigate any actions that will protect the best interests of the members of bourses affiliated to the WFDB. According to the WFDB, this will include an approach to all major diamond producers to discuss the future commitment to the overall health of the international diamond sector, and more specifically the future supply of rough diamonds to the open market.
DTC’s Gareth Penny addressed the Presidents Meeting earlier yesterday and explained in detail the how the DTC selected its SoC clients and by what criteria.
Responding to the concerns voiced by WFDB members that less rough will reach the open market under the DTC's new sales policy, Penny revealed that the number of rough diamonds which will be sold through De Beers' Diamdel rough dealerships to non-sightholders will be increased to $500 million a year.