ISSUE No: 7
 
1. Which Direction is our industry heading?
2. What do Meat Buyers Look for?
3. What can we learn from other livestock industries?
4. Definition of a Carcass
5. Definition of Meat Yield
6. Bulgaria Conference Cancelled
7. Changing email address
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1. Which Direction is our industry heading?
Most every member has joined the WOA to help to understand better what is happening generally in the Industry and specifically the markets. Many countries have introduced Ostrich and each country to date has failed to establish sustainable growth markets. Many write to me about their concerns on their future as the marketing of end products becomes their block. The next two items I trust will provide some insight?
 
2. What are Meat Buyers looking for?
The Meat and Livestock Commission in the United Kingdom have introduced a Red Meat Industry Forum that covers Beef, Lamb and Pork production. They are now producing a regular newsletter for their members. There are many lessons that we can learn from this forum set up to assist producers understand market requirements as the basic principles apply to all meat production, no matter which specie.
 
Some quotes in an article carrying the subject title: "Producers Must Study Market Requirements" from the Director of Food and Drinks procurement of a major Service Industry company based in the United Kingdom, with hotels and restaurants of a number of different brand names:

�We all want consistency of quality and guaranteed availability of course. But the supermarkets can package and price meat of different weights and thickness, for example, while the diner in a restaurant will expect his steak, say, to be of much the same thickness, size and shape as that of others around
him, who have ordered the same meal and are paying the same price. Uniformity of product is, hence, of particular importance to the food service sector - pubs, restaurants, leisure markets and the like - which accounts for some 30% of the food consumed in the UK".

"When buying meat products, from whatever source, a major marketing outlet such as ourselves looks not only at factors like breed of animal, carcass conformation, cost and delivery guarantees, it also needs uniformity of product and the ability to buy ahead at a guaranteed price".
 
The article referenced wishing to purchase their products from British producers but with Red Meat they were purchasing from a few other countries that were listed and went onto state:

�Being a commercial company, we buy from these other suppliers as they sell at a lower price, for a like-for-like product, than their UK counterparts. Consequently, it is up to the British farmer to seek to compete with products from overseas by supplying more precisely what the food service sector requires."

�Currently, overseas producers of red meat are inclined to be more flexible and knowledgeable about our requirements than the UK producer."

�Farmers need to look beyond the farm gate, further even than the needs of the supermarkets, and to learn and understand the requirements of the food service sector".

�I see a major educational role for the Red Meat Industry Forum in helping and encouraging producers to achieve this.�
 
Personal comment: With Ostrich we have an additional problem and that is our buyers do not yet know the product adequately because the industry itself is still learning. The WOA has now established basic grading systems.
 
3. What can we learn from other Livestock Industries?

At the end of last month the History Channel in the United States produced a program focussing on Beef Production. Some interesting facts that were referenced as the same principles apply to Ostrich Production and indicates just how much work we have to do. Almost half of the program was about genetic improvement and how that has progressed over the last 40 years. How all that is tracked by the Producer and the parameters that are needed to ensure the animal they produce is a Profitable animal and what the consumers want.
 
Many statistics were provided - some of the most interesting and I will add a few comments in italics (bracketed also for those not able to read html email).

     a. Genetics and Nutrition have increased at such a rapid rate that today the beef industry is producing far more efficiently in "cost of gains" than it was in 1970. It is "cost per pound of gain" that is the only determining factor for raising a profitable beef.

     b. Cattle ranchers know that in order to raise a marketable product, it has to be acceptable to the
consumer. For example, today's beef is far less fat per animal, with genetic improvements to ensure fast muscle growth (weight gains) so that the meat is still tender, tasty and appealing.

     c. Today, the same OUTPUT of meat production, as produced in 1970, can be achieved with 20,000,000 less animals than it could in 1970. (Currently the Ostrich Industry has a variation of meat yields from as low as 18kgs per bird to in excess of 50kgs, indicating the potential to very quickly achieve the same amount of meat from far less slaughter birds.

     d. The average commercial feedlot these days is around 87,000 head of cattle. (One limiting factor to developing markets for our Ostrich Meat, and skins, is the lack of production. Let's put this statement into perspective. Very approximately:

         A US Cattle Feed Lot turns over the cattle in a feed lot on average every 100 days
87,000 head x 3,65 = 320,000 head of cattle per annum. With an average of 250kgs (550 pounds) of saleable meat products from the average feedlot fed beef animal that represents:

250 x 320,000 = 80,000,000 kilograms (80,000 tonnes of meat) from as SINGLE beef feedlot

         Total world production of Ostrich is currently about 16% of that SINGLE beef feedlot.
Around 60% of all Ostrich production currently comes from South Africa, the rest of the production is very fragmented

         Our major markets - such as the market referenced in the article above - are not yet available due to the very low volume of Ostrich production.
      
     e. Range cattle breeder farms, those producing quality beef for feedlots, that use modern genetic practices and good nutrition principals, account for 75% of all high quality beef animals that now go to slaughter in the US.

     f. A growth hormone is essential to profits as it accounts for an increase of 10% to 15% in daily weight gains. Without it, there would be no profits for the beef ranchers without a tremendous increase in beef prices, which would have a negative consumer demand effect (This is a major marketing advantage our Industry has - the technology is available to produce a quality. Red Meat that as an industry we must be sure we maintain totally free of Growth Hormones).

The program covered standards established for beef "grade quality" and beef "grade yield" and many other issues that explained how modern meat production has progressed a very long way in just a few decades, from simply feeding an animal and selling that animal and fits in with all the writer of the above referenced article was discussing.
 
4. Carcass Weight

Liveweight to Carcass is one of the critical production measurements when assessing the costs of production, efficiency of the nutritional program and genetic performance of livestock. This is common across all livestock production specie.

A major difficulty we currently have with Ostrich is that there are a number of different methods used to dressout the carcass. As our industry is in its infancy as a livestock production industry, there are many newcomers seeking guidance. So standardisation, clear definitions and understanding of the different methods is extremely important. It is important for buyers to know exactly what they are purchasing, it is important to for producer's to measure performance against others. For me personally, knowing which definition a producer is referencing is of particular importance when discussing their bird performance. Many producers share with me their performance figures - we first have to establish exactly what the weights are based on. It is also essential when recording bird data for superior genetic grading and classifications.
 
From correspondence that I receive, I am experiencing an area of confusion in understanding the difference in Carcass Weight and Meat Yield and all that is included in these different classifications. This I have found to be particularly relevant amongst those marketing the birds to new production groups. Recently I had a case where a marketer of birds had been supplied with a thorough break down of a South African carcass. He presented me with a business plan that he planned to present to new producers based on these figures supplied and allotted revenue from the "meat" to the weight of the "carcass". On average the carcass weight is +/- 50% of liveweight. Meat Yield is 60% - 65% of Carcass
weight.
 
When the first Meat Catalogue was issued by the IOA in 1998 there was just one Number applied to the Carcass. At that time I recommended that there should be a clear definition of Carcass as different countries dress out carcasses in slightly different ways and even within South Africa at that time some were removing the Fat Pan (Belly Fat) and others were retaining the Fat Pan. This suggestion was acknowledged as important by the scientist in charge of producing the very first catalogues but no action was taken by the industry to correct this.
 
It is accepted that different slaughter plants have different equipment, processing requirements, cultural
requirements and so on that will influence the way they dress a carcass. However, the better we can standardise this as an industry the easier it will be as we are a young industry developing on an International basis. If there are any processors amongst our membership, the Meat Committee would appreciate hearing your thoughts on the definition of a Carcass if you are currently processing birds in a different manner to either of these two definitions.
 
The Meat Standards Committee is suggesting the following carcass classifications:
 
- OS1001 Whole Carcass Assembly
Definition: Complete Carcass
(Full neck on, breastplate removed, fat pan removed)
 
- OS1002 Half Carcass Assembly
Definition: Complete Carcass cut in half
(No neck, breastplate or fat pan)
 
- OS1003 Compact Carcass Assembly
Definition: Carcass with front bone frame removed
(No rib cage, wings or neck)
 
5. Meat Yield

Another area of confusion is exactly what does constitute "meat yield" when measuring the performance of a bird.
 
The Meat Yield Classification can be determined by the total yield of Deboned Meat harvested from a bird.
 
- Definition: Deboned Meat Weight is the total weight of the Drum Muscle assembly without the leg bone, the Thigh muscle assembly without the Thigh bone and the Tenderloin muscle.

- Deboned Meat Weight Standard: Silver/Blue skin left on the meat, Major Tendon ends removed. Not included in the weight are Rib Cage meat, Neck meat, Organ meat or Fat.

The reason for leaving out the Rib Cage meat, Wing meat and Neck Meat is to maintain uniformity as not all slaughter plants recover this meat. Necks are often sold bone still in and rib cage sold to other plants for deboning. The meat from these areas and the organs are all usable, with 5kgs - 10kgs of meat that can be recovered from these areas, but is labour intensive to recover.
 
6. Bulgaria Conference
It is with regret that due to insurmountable administration problems and difficulties with online booking on the web site the conference in Bulgaria has been cancelled.
 
We would all like to acknowledge the assistance that Dessi Daskalova has provided over these past months. A very sincere thank you Dessi.
 
Your directors will be discussing how the Annual General Meeting will take place and the date. The by laws of the association allow for virtual participation as it was expected that due to the fact that we cover so many countries throughout the world, not everyone is able to make physical meetings.
 
7. Changing your email address:
The usual reminder please for any of you changing your email address. Please notify Craig at [email protected]. When providing that notification to ensure it is identified properly, please include:
 
Your Name
Your Current email address
Your New email address
 
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