2. Research and
Development
3. Ostrich Meat - the Driving
Product
4.
Opportunities
5.
Contributions
1. Klein Karoo Group
Acquisitions
On January 1st, 2004
Camdeboo Meat Packers and Exotan amalgamated to form Camexo.
Camdeboo Meat Packers is an EU Approved ostrich abattoir based
at Graaft-Reinet in the Eastern Cape of South Africa. Exotan,
based in Port Elizabeth, Eastern Cape is a
tannery specialising in Exotic leathers, including Ostrich.
The management and a number of members
of Camdeboo were instrumental in forcing deregulation of the Ostrich industry in
South Africa.
News has come through that the Klein
Karoo Group has acquired Camexo. The acquisition is currently in
front of the Competition Board..
The group have also acquired Sun Cuisine, a
company that manufacture cooked food products, with the aim to produce processed
products from ostrich. It is hoped that this will enable export of ostrich products in place of
fresh meat, while the borders remain closed.
The South African borders currently remain
closed for the export of live birds, eggs and meat. The Eastern Cape
producers carried out a kill policy to eradicate Avian Influenza, but the
Western Cape producers have chosen not to operate a kill out
policy.
2. Research and
Development
The article is a discussion on a study on
the economic impact of slaughter age on meat yield of ostrich. One has to
question why a costly academic project using public funds was set up to
do the study in this manner with just a few birds when this is the
type of study that all successful commercial farmers do every day, of every
week, of every year as standard management
practice in other specie. It
is the reason for maintaining records of all feed input and yield output and the
input costs vs the output revenue. It is the way to identify the good
genetic animals, identify the rations with the right production potential to
challenge the better genetic animals. This is the mechanism to bring
forward the slaughter age and at the same time increase the yields to reduce the
costs of production.
This study is flawed in many ways. The study assumes that all feed, all management
systems, all environmental factors and all genetics perform the same and have no
influence on results. As any one with knowledge of production livestock
knows that is not true at all. The study fails totally
to understand the difference between simply "raising livestock" and operating a
"production livestock unit".
The study reports an overall increase in
carcass weight of 31kgs to 52kgs between the ages of 8 months and 16
months. My own birds
recorded carcass weights of 39kg at 34 weeks (8 mths) and 54 kgs at 42 weeks
(10mths). When the skins were put in front of members of NOPSA (National
Ostrich Processors of South Africa) they assessed them as being
from 12 to 14 month birds. I am not
alone in achieving these results from younger birds.
The study was funded by THRIP, the
Technology and Human Resources Industry Programme, a joint initiative supported
by the Department of Trade and Industry and the National Research
Institute. The THRIP program promotes cooperation between higher education
institutes and businesses with the aim of enhancing the competitiveness of South
African industry. The question has to be
asked why the South African Ostrich
Industry research continues to resist investigating improving
performance, slaughtering younger and implementing production livestock
techniques that make up the "true science of livestock production" to ensure
that their producers remain competitive?
3. Ostrich Meat - the
Driving Product
Following on
from the previous two items, this quote and the discussions
that follow may help answer the above question?
Quote:
Ostrich
meat
For many
years meat was a by-product of ostrich processing in South Africa. In 1993
ostrich meat accounted for only 15% of the income from a slaughter bird.
Today this percentage is between 30% and 45% and ostrich meat therefore plays an
integral role in the survival/sustainability of the South African ostrich
industry. The current average carcass weight of a South African produced ostrich
is 43 kg (live weight approximately 95 kg) at 12 - 14 months (the same weight is
achievable at an earlier age, but with negative effects on the skin
quality). An average carcass yields 24 kg of meat (16 kg of prime steak
and fillet cuts and 8 kg of trimmings). end quote
Meat yields
have not changed in South African production during the years
from 1993 to the publication of this report in 2003, 10 years later.
The
percentage of revenue has therefore changed because either the revenue has
dropped for the other products (skins and feathers), because the price for meat
has risen or a combination of both.
As a member of that committee I
suggested that the wording should make reference that better produced birds
today are now achieving 50kgs of meat at 12 months, as that is
fact, and replicated many times in the United States in the mid 90's,
before their industry collapsed. [Table
1]
Table 1 -
Comparative Muscle weights
The figures in Table 1 are clear indicators
that meat revenue can be doubled simply on yield alone. Double meat yield not only doubles meat revenue,
it also reduces processing costs per kilo by 50%. When I left
South Africa I was receiving greater than 50% revenue from meat as a direct
result of the increased meat yields. Increased meat yields result in
reduced processing costs, which enable the processors to pay the producers a
better rate per kilo for that increased meat. Why was there a
determination to ignore this clear evidence?
The discussion above relates to Ostrich Meat, but note
the reference to skin quality in the quotation. An 8 month bird, with a carcass weight of 31kgs, as in
the study discussed in item 2 above, will not have acceptable skins.
Note the feather development in the
photos in the study I reported in Bulletin No. 79 - "Influence of
Ostrich Skin Quality - Age or Nutrition?" - http://www.blue-mountain.net/bulletin/bull79.htm .
Originally Ostrich were farmed only for
feathers, then the leather. These two products are unique and exquisite
products, when produced correctly, but the high value feathers and leather are
fashion products. Fashion products have trends that change from year to
year. The markets are limited at the top end where high prices can be
achieved. The 150 year history of following this pattern
has led to continual boom or bust situations.
Figure 1 -
Revenue per bird
[Source:
"Cutting the Costs of Production" - Blue Mountain Bulletin No.
95
Figure 1 is an indication of the
percentage of revenue per product. The actual breakdown will vary
dependent on local costs, size of operation and markets serviced. They
will also vary on whether valuing the different products at producer price or
valuing the products at market prices after processing and value adding.
In order for the industry to be sustainable
and viable, it is important and most essential to maximise the revenue from the
whole bird. However, the meat market is the most important product to
establish as the major revenue earner of a slaughter bird as shown in Figure
1.
The meat market requires a consistent supply
for a restaurant or hotel chain to be able to maintain it on their menu; a
small deli shop, family butcher or supermarket to maintain shelf
space; a sandwich manufacturer to retain ostrich as one of their fillings and so
on. They will not use the product unless they are guaranteed supply.
Implementation of "production livestock"
techniques are required for accessing the meat market successfully. The
overall health of the birds automatically improves and that will bring
about greater consistency and greater marketability in all the other products;
commercially viable levels of production and sustainability of that
supply.
Why are the South African researchers continually ignoring these
important factors when designing and evaluating their projects?
5. Opportunities
The purchase of companies carried out by the
Klein Karoo is a move to returning to monopoly ownership and strict control
of development. The research projects, as published, demonstrate
that no progress has been made in production systems or improved
performance as witnessed in other livestock industries. History has
proven these systems to lead to negative profitability in a competitive
environment.
By
comparison working in collaboration, as
the WOMRAD plan envisages, would bring
with it many benefits to enable members to grab hold of the opportunities to
grow and develop their individual businesses. The market is wide open
today for development.
To achieve this development requires
collaboration, consistency in supply, security of supply and consistency in
quality of that supply.
It requires implementation of standards that
enable our buyers to understand our product and not simply buy on price.
It requires training at all levels of the
supply chain to learn how to be competitive in a commercial market place.
It requires fair remuneration for every
member of the supply chain.
It requires collaboration to build the
volume to be able to enter markets not possible with low volume supplies.
It has been suggested that ostrich
cannot be raised the same way in different parts of the world. There will
be certain management factors that will change as clearly facilities and systems
required in Norway or Sweden will differ from facilities and systems in Spain or
Italy and be different again in areas such as Saudi Arabia or
Brazil. All countries and regions within countries differ in
climate, environment, labour costs and land availability. Diet does
not change in the way many believe it does. Consumption may be a little
higher in a cold climate, rations may need to be a little denser in a humid
climate where daily intake can be reduced - but the basic nutrient requirements
remain the same if optimum health, production and commercial viability are to be
achieved.
With collaboration, we can "Unleash this
Giant".
5. Contributions
As always, I ask for contributions from Country Liaisons and other members. A sharing of your experiences, what is happening in your area - anything you believe that would be of interest to other members. Any contributions for inclusion in future news letters please send to Fiona at [email protected].
Any comments or suggestions, please post either to the members list [email protected] or Craig at [email protected]
Ask not only what the WOA can do for you but also what you can do for the WOA.
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