1. Ostrich
Supply Problems
2. South
Africa lift self imposed Export Ban
3. Revenue
per Bird
4. Low Yield
Agriculture vs High Yield Agriculture
5.
Contributions
1. Ostrich
Supply Problems
Written by Bert
Rayner, Country Liaison for Australia
As we all know the ostrich livestock industry is a
relatively new livestock production industry. Up to 1994 95%-98% of all product
came from South Africa. Klein Karoo Co-op had a full monopoly up to 1994. From a
maximum production of +/- 160,000 birds in
1994 production jumped to an estimated 580,000-620,000 in 1998. Many think prices dropped due to
over production. Incorrect - prices actually declined due to poor or pathetic
marketing strategies.
Leather
Unfortunately all newcomers
simply went to established markets and sold at lower prices. No ‘new markets’
were developed by ‘new tanneries’. If we compare production of luxury items such
as ‘Whisky’ and ‘Diamonds’ the growth over the last decade has been phenomenal.
Did they discount the product? No. There are many whisky producers and the
highest value product such as single malt is struggling to keep up with demand.
Although DeBeers still dominates sales in top quality diamonds, the competitors
have not gone in and sold at half price. Why did the bigger players in the ostrich industry drop the value of our
product so drastically? No one has the answer but many suspect it was an ill
judged attempt to control the growth of the industry.
Meat
Unfortunately the major player,
South Africa has always seen the meat as a by-product. A recent article in South
Africa quoted the S.A.O.B.C. spokesperson as stating that meat is only 30% of
income. Hopefully he is referring to the current situation where exports are
banned. At the moment in the
Australian industry meat value makes up roughly 66% of the gross value of our
product sold. We anticipate this will increase with niche marketing and improved
meat yields. We do expect a rise in the value of skins but my humble
opinion is that meat will continue to be our primary product.
Supply
I am a farmer and a
marketeer. Lack of consistency of
supply and consistency of quality are the two main factors that have had a
negative impact on development. With correct nutrition and management I
believe we can solve the problems. We have two high quality products from
ostriches and we should not have to discount to sell. As many know I am ex South
Africa and have realised their farming technology on ostriches does not lead the
world. We need to seek advice and work together to lift
production.
The future
The world needs 50% more
meat by 2025. Much of this growth will occur in intensive chicken and pork
production units. It is however an ideal opportunity to expand our
healthy, low fat, high iron ostrich meat industry. Certain parties are exploring new avenues
for ‘high quality’ ostrich leather goods. These markets have massive potential
that can only be realised with consistent, sustainable production.
Ostrich production has a huge growth potential where
efficient farmers, processors and reliable marketeers can all
benefit.
Editors note: Our thanks to Bert for taking time out to write
the above article. All our members like to hear from other members
and contributions very welcome. If you are not comfortable to write in
English, you can submit in your own language and arrange
for translation for those who cannot understand your
language.
2. South Africa lift self
imposed Export Ban
On September 13th the South African Ostrich Business
Chamber (SAOBC) announced that the ban on the export of ostrich meat has been
lifted by the Department of Agriculture. It is important to remember that
although the voluntary ban has been lifted, importing countries still have to
decide on the resumption of imports from South Africa.
Your directors are recommending any producers considering
importing fertile eggs, chicks or breeders from South Africa, to have the birds
tested by independent laboratories
before considering importing. The June report from the OIA
(http://www.oie.int/eng/info/hebdo/AIS_67.HTM#Sec2) reported infection on a large number of farms and there has not
been a kill out policy in the Western Cape to eradicate the
disease.
3. Revenue per
Bird
Bert made reference to the proportion of South African meat
revenue to total revenue per bird representing no more than 30% of Income
by comparison to Australian producers achieving 66%. There are a number of
factors that can influence the proportion of revenue:
- Price of different
products (Meat, Skins, Feathers and Fat/Oil for those with a
market)
- Grade of Meat and
Skins
- Yield of
Meat
South
African production has had a long history of producing ostrich with slow
growth, low meat yields and slaughter at 14 months of age. Average carcass
weights are only 42 kilos with 17kgs to 18 kgs of export
muscles. It is possible to produce a bird in half that time
producing similar meat yields and double meat yields with birds 42 weeks (10
months).
Produce double the meat, you double your meat revenue per bird, even when
prices are low. Working together we have increased strength to
improve supply and prices.
4. Low Yield Agriculture vs High Yield
Agriculture
Communicating with producers in different countries and travelling as I
am able to do provides the opportunity to see tremendous variations in
agriculture in different countries. Travelling in Bulgaria this
month was again a reminder of the importance of agriculture to the local
economy. The collapse of communism resulted in much of the land being
returned to the original owners. In many cases the families had grown,
with the land split many ways. The average ownership is now .3
hectares per producer - tracts of land that are uneconomic. Farming in
most areas has returned to peasant farming producing sufficient for own needs,
harvested by hand and carried home by donkey cart. Crops will have minimal
inputs, so output is low. Cattle, sheep and goats are shepherded on open
land and brought home each night. With low production much of their food
is imported. This situation is not unique to Bulgaria.
A
sound agricultural base generates employment and raises the standard of living
in rural areas.
Quote: The Green Revolution and the
increasing effects of globalisation continue to change the face of
agriculture. The revolution began in 1944 when the Rockefeller Foundation
and the Mexican government established the Cooperative Wheat Research and
Production Program to improve the agricultural output of the country's farms.
Norman Borlaug was instrumental in this program. This produced astounding
results, so that Mexico went from having to import half its wheat to
self-sufficiency by 1956 and, by 1964, to exporting half a million tons of
wheat. This program was continued in India and Pakistan where it is credited
with saving over one billion people from starvation. Norman Borlaug won the 1970
Nobel Peace Prize for his
efforts.
From there, the technologies were
exported abroad, finding use in regions all over the world. The success in
increasing yields was undisputable. The growth of crop yields was such that
agriculture was now able to outstrip population growth — per capita production
increased every year following 1950. end
quote
Figure
1 shows the growth in employment generated by a strong agricultural
base.
The Green
Revolution has been successful through the combined use of improved plant
varieties, irrigation, chemical fertilisers, herbicides and pesticides,
mechanical tractors and other farm implements. Livestock production has
been supported by the improved quality of the crops, the contribution of the
pharmaceutical industry, advances in nutrition and improved
genetics. The effect of these high inputs have been to feed an ever
increasing population and reduce the cost of that food significantly.
There
have been some negatives identified from this rapid development.
Progress is an ever evolving process with systems developed to
overcome some of these negative issues associated with modern
agriculture. Examples are:
No Till Agriculture to combat soil erosion and improve soil
structure
Ethanol Production to provide fuel to slowly replace
the finite supplies of fossil fuels
Biodegraders to turn waste material safely into usable
fertilisers
Optimum Nutrition to increase production,
reproduction and improve feed conversion making better use of the
resources and reducing costs of production
Optimum Nutrition to reduce the use of antibiotics,
growth hormones and minimise metabolic disturbances in high production
livestock
Apply the
modern technologies to Ostrich production and as reported last month,
Ostrich can make significant contributions towards providing the additional 50%
meat forecast as required by 2025. Apply these technologies to
Ostrich and they can be the most feed efficient red meat production
animal. This cannot happen utilising Low Yield Agriculture
techniques.
WOMRAD introduces this technology as it applies to
Ostrich
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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