Newsletter No. 44 – November 2006

  

1. World Ostrich Congresses

2. Leather Grading

3. Breeder Production

4. Science and Technology of Livestock Production

5. Looking through the Archives – Breeder Production Goals

6. Setting our Goals High Enough

7. Transitioning to Commercial Production

8. Contributions

 

1.     World Ostrich Congresses

October saw two conferences, one in Belgium, one in Brazil and both conferences have shared the same name - XIII World Ostrich Congress.

 

Rayan Hayder, one of our Directors, was scheduled to present a paper in Brazil based on his article in September’s newsletter, http://www.world-ostrich.org/member/news42.htm. The ill health of Ray’s father has forced him to offer his apologies, as he was unable to travel to Brazil.  We send him our good wishes and hope his father is making a good recovery.

 

We would all appreciate reports from any members who have attended either of these conferences. 

 

2.     Leather Grading

This month we have completed the World Ostrich Association leather grades and published them on the web site http://www.world-ostrich.org/woaleather.htm.  Premium and Super Premium are two additional grades not included in the NOPSA Leather Grading that has been our industry standard.   These new grades more accurately reflect customer demand and encourage production to higher standards.

 

Studies carried out by the South African researchers proved the younger the birds at slaughter the higher percentage of Grade 1 skins achieved.  Scars and blemishes determine grades rather than weight, thickness or follicle development.  That study also reported the follicles insufficiently formed and blamed the young age of the birds as the reason, but there is evidence that genetics may also contribute to follicle style and size. 

 

There is further evidence, verified by a study I personally carried out in South Africa[1], that method of rearing controls the age of maturity of the follicles.  The significance of producing acceptable skins at younger age indicates the ability to achieve skins with fewer blemishes and scars and therefore it makes sense to introduce these new grades to improve standards and prices. 

 

Nutrition and management are the major factors influencing age of slaughter, scaring or blemishes.  Overcrowding, batch size, fencing, handling methods, transport are all management factors that influence scaring and blemishes.  We still see many skins ruined by poor handling at slaughter and storage.  

 

We have also published a document to identify the areas of management that influence the quality of the skins.  http://www.world-ostrich.org/woaskinqual.htm.

 

There are currently no classifications for follicle size and development even though buyers vary in their requirements, some preferring larger, heavier skins with large follicles, others prefer lighter weight skins with small follicles and others like to roll their skins to flatten the follicles.  These items remain subjective to the individual buyers and sellers. We can develop follicle classifications and quantify other elements as volume increases with industry growth.

 

The greatest benefit of improving standards of production to produce better quality finished products is that the systems required to achieve those standards also reduce the costs of production to enable commercially viable meat production. 

 

Earlier slaughter requires less feed, less infrastructure and faster return on working capital.  These factors significantly reduce production costs.

 

3.     Breeder Production

Management of the breeder herd is the foundation for improving standards of production.  At the beginning of the month, we discussed the results of the report in World Poultry and the numbers in Table 2 of that article. The full article is available to down load by clicking on the following link - http://www.world-ostrich.org/member/download/WP_22.8_7.pdf. 

 

Readers may remember that those numbers demonstrated again, the huge variation in eggs laid per hen and conversion of those eggs to day old chicks and slaughter birds. 

 

Our member Michael Gross, who produces and slaughters Ostriches in the Philippines, suggested that the numbers reported for the Philippines were inaccurate and we can confirm that Michael is not the only member to suggest that numbers in their own region may not be accurate.  We are aware of the problems of achieving accurate production figures. 

 

Michael went on to report the variability of egg quality that he sees between the different farms he incubates eggs for under contract.  I asked Michael to quantify the variations between farms.  He split the results into three groups. Table 1 shows the details.  Note that the percentage of eggs to chicks is ‘chicks hatched’, not chicks that reach slaughter or maturity.

 

Table 1 - Egg Production Comparisons

 

Readers may remember Michael stating that the worst performers were simply feeding vegetables.  Table 1 illustrates that when there is no production that feed is the most expensive feed of all, no matter what the cost per tonne.   

 

This highlights a problem that replicates in every country becoming involved in Ostrich. Unlike other specie, smaller ostrich farmers cannot simply go to their local feed company and buy feed that provide the basic nutritional needs for ostrich, let alone feed with productive characteristics. 

 

Working in small volume to provide the right feed is expensive, particularly when importing all major ingredients, as in the Philippines.   A certain volume is required to achieve ingredients at reasonable cost to prevent tying up valuable working capital for an extended period, as happens when turnover is slow. 

 

When forced to feed incorrectly, production is uneconomic because bird production is so low, resulting in the costs per unit of production too high to be competitive and commercially viable. The above table also shows that at worst there is no production.  Inconsistent production influences negatively marketing efforts because the supply is unreliable. 

 

What is the solution?  Sufficient resources are required to develop the required infrastructure to coordinate food provision, production, slaughter and marketing.  The more who can work together, the greater the economies of scale and pooling of marketing costs. 

 

4.     Science and Technology of Livestock Production

The science and technology of livestock production is a broad multidisciplinary field that encompasses many aspects and interrelationships between all the parts to make the whole.  The following are some of the different elements that must all be in place to make the whole and there are many elements to each section:

 

      Crop Production (e.g. Seeds, Crop Nutrients, Disease Control)

      Livestock Feed  (e.g. Nutrient Levels, Ingredient Types, Vitamin and Mineral Interrelationship to each other and the other ingredients in the rations)

      Feed Management (e.g. Feeding Times, Feeding Rates, Freshness)

      Farm Management (e.g. Records, Biosecurity, Environment)

      Veterinary (e.g. Preventative medicine, such as Vaccination Programs)

      Genetics  (e.g. Use records to identify and select to optimise egg laying, progeny high growth rate, good feed conversion)

      Testing Methods and Result Analysis (e.g. Identifying the true value of inputs and developing correct responses to them)

      Other support (e.g. Handling systems, transport, benchmarking)

      Products  (e.g. Production methods, slaughter methods, processing methods)

 

Ostrich production is no more than 15 years as an industry looking towards meat production as the primary product, but still recognising the value of leather and other by-products.  During this period, new countries have started production in small numbers with small farmers purchasing breeders to build a business in isolation and limited support.  Initially the market is for breeders selling to other farmers.  As identified above, a certain infrastructure, and strong market, is required to be in place to enable economies of scale for all the elements above, even to support a strong breeder market. 

 

Nutrition of the animals is at the top of the list.  Every element is critical to the whole, but as in all commercial livestock production, no matter how good every other element is, correct Nutrition is the foundation to achieve high production goals.  Modern agriculture is about precision.  Nutrition alone cannot achieve those production goals; precision agriculture is dependent on all other aspects that make up the whole.

 

The production goals set in the WOA Benchmark Targets, http://www.world-ostrich.org/targets.htm, are very achievable and required for commercial viability.  To achieve those goals the first step is for the nutrition program with a design capable of sustaining those levels of production and then supported by all the management factors required for modern precision agriculture.  

 

5.     Looking through the Archives - Breeder Production Goals

In the early 90’s a number of feed companies in the United States produced Ostrich rations with significantly higher nutrient values capable of sustaining reasonable production goals than are experienced generally throughout the industry today.  There is sufficient evidence to indicate production levels were excellent, although still extremely variable for many reasons, including the inexperience of producers, as all were new to ostrich, and many with no production livestock experience.  There were a good number of reports of hens achieving in excess of 100 eggs per annum.  The highest number reported was by Karen Hicks [2] quoting a hen producing 167 eggs in one season. 

 

A leading South African Ostrich nutritionist is on record at a conference held in California in 1997 making the following statement:

 

Quote “if the feed formula is correct and birds are getting the nutrients they need, they will produce 20 chicks average per hen and the chicks will have a 20% mortality rate". End Quote

 

He strongly indicated that a well-designed feed formula would have those production parameters and that he designs his feed formula to support that production goal. Why would a nutritionist design production goals for just 20% of the potential production and accept any mortality?  This does not make scientific or commercial sense.

 

Clearly to design rations for such low production goals results in severely nutrient deficient breeders, poor production for producers and low profitability for all, as the published figures continue to indicate is the case.  

 

Many books and publications have published the nutrient levels reported by this nutritionist and fellow scientists as correct for ostrich and assumed proven to support production goals to optimise the genetic performance potential.  Many nutritionists and feed mills followed these guidelines.    

 

6.     Setting our Goals High Enough

Newsletter 25, http://www.world-ostrich.org/member/news25.htm asked the question “Are you setting your Goals High Enough?”   Returning to the archives, I remember listening to a talk from a nutritionist at an International Conference telling the audience:

 

Quote: “Your breeders eat nearly 1 tonne of food per annum and therefore that food must be cheap”.  End quote

 

Stated in that way producers fail to look beyond the “price per tonne” of that feed, just make it as cheap as possible, totally ignoring production targets or even the birds most basic needs for good health.  The key is to develop feed to maintain them in good health and optimise production targets; then produce it at the lowest cost possible and that is where economies of scale enter the equation. 

 

Which target is more cost effective?

-         1 hen producing 100 chicks per annum

or

-         5 hens to produce 100 chicks per annum

 

Farmers achieving the first option save the following costs:

-         Capital costs of additional breeders

-         Infrastructure required to keep those additional breeders

-         Feed for the additional breeders

-         Labour costs to maintain those additional birds

 

Once started on the right track, it will take some years to reach an average production goal of 100 chicks per annum, but it is clear from results in the early 90’s that this is an achievable goal.  It is clear that it is essential to raise production goals, even if still operating in a breeder market.

 

7.     Transitioning to Commercial Production

We know from communication we receive privately and sourcing product to supply the markets we currently have, that producers of all size of operation continue to seek guidance.

 

Understanding the production issues is critical as the marketing of all agricultural products starts on the farm.  Some examples of farm aspects that are marketing issues:

 

      Production

      Traceability

      Product Uniformity and quality

      Animal Welfare (an import issue in an increasing number of markets today)

      Costs of Production (e.g. underweight birds increase processing costs)

      Meat Residues

 

Consumer concerns on the safety of their food are putting increasing pressures on standards operating in slaughter plants, adding to processing costs.

 

These additional market requirements such as traceability, hygiene measures, veterinary inspections, slaughter plant building standards etc. increase costs and collaboration to develop economies of scale helps keep those costs to a minimum.  Today, it is increasingly challenging for smaller operators in any specie to work in isolation and that is why it is even more difficult for smaller operators in a new livestock production sector, as Ostrich is.  The value chain approach http://www.world-ostrich.org/member/news43.htm is proving a successful method to keep these costs at a minimum while enabling companies to remain independent.  We have access to a funding mechanism that we can discuss with any groups, or larger companies that if appropriate, can enable the provision of adequate resources. 

 

8.     Contributions

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.