Structure: SA Ostrich Industry
Abattoirs
NOPSA
Tanneries
SAOBC
N.E.W. Cape
SAVO
Northern
Province .

Private-Public-Part
Dept. Agric
Laboratories
SAOBC:
Directors/CEO
Game Databases
NOPSA
18
Ostrich databases
SAVO
Producers
1 050
Bio-diversity
Abattoirs Tanneries N.E.W. Cape Northern Prov .

Mission
To promote a sustainable and economically viable ostrich industry in South Africa with the participation of stakeholders

Ostrich Industry Status
RSA World Leader 70%
 Feathers
 Meat
 Leather
Exporting 90% of product

Industry Contribution
20 000 220 000 R1 500 M

Origins
 1864 : Industry Established
 1959 : One-channel marketing system
 1964 : First abattoir
 1970 : Tannery
 1993 : Deregulation, new entrants

Ostrich Industry : Realities
• Capital Intensive
• High risk

Realities of the industry
 Capital Intensive

Amount of land required
 Feeding cost
 Time: 30 month cycle
 Abattoirs and tanneries : Standards

Realities of the industry (continue)
 High risk industry

Mortalities : chick raising
 Chick born without immunity to diseases
 Birds = sensitive to temp changes
 Information on diseases = scarce

Production
Breeder birds
Hatching
Day old chicks
Chicks rearing to 3 months
Chicks rearing to 12 months
Quarantine birds
Slaughter birds
Processing

Public – private partnership
 Research
 Disease control
 Exports

Information Systems

Flow Chart-Traceability System: Production

Traceability System: Processing

• Brochure
• Website
• Quantify value of projects : R12 m p.a.
– Processors
– Producers

A Small Scale Farmer
Development Project with a proven track record for success.
Martin Fick

This project started off in Zimbabwe 13 years ago.
In the face of severe economic & political problems, the project has succeeded and continues to do so in that country.
Virtually the whole of the ostrich industry there is now in the hands of small-scale farmers.
In 2003, we established a similar project in the Eastern Cape.

Ultimate goal of project:
To facilitate the rapid, successful, holistic development of small scale black farmers in Southern Africa by integrating with existing large-scale commercial agricultural enterprise.

 Create a Generic model that can be reproduced elsewhere in the country.
 A model for further initiatives.
 Timing goals:
– End 2008 - project of 64 farmers.
– 2008 - 10 - Project “Shop Window to Africa”.

• For long term success we have to manage three critical success factors:
 Market Led
: production must be market driven, and market justified.
 Access to competitively priced inputs
, including finance.
 Training in all technical aspects of the business, as well as business training on a formal level, and social training on a personal level.

Who are we targeting?
Mature persons, in good standing in the community in a suitable rural area. Who have access to a small piece of land around their home, and who have a desire to develop themselves.

typical
• Is semi-literate with an average schooling of
Grade 3 or 4.
• Has little or no
• Has no operating bank or account.
• Has no collateral for loans.
operations and commerce.
understanding.
• Has few transactions with • Has no business banks, etc.
• Operates at a very low level on a cash basis.
record or reputation.
Would be considered as
“High Risk.”

• Strengths.
– The Grow Out concept links small scale to commercial in a mutually beneficial business relationship.
• Weaknesses.
– Success requires willing partners, with a genuine commitment to development; such partners are not easy to locate.

Training
• Participants are trained in technical aspects of production and, through mentorship, gain skills and proficiency.
• Business and finance training enables all levels of participants to understand and manage their own financial affairs.
• Training takes in a holistic view of life, including happy marriage, parenting, health, investment and personal needs.

Strengths of the project approach:
– Creates worthwhile employment at home, improving opportunities for family participation.
– Embodies individual private ownership, so responsibility and accountability issues are clear.
–
Not gender specific . Both men and women can participate towards empowerment in the community.

We understand our weaknesses:
The project requires commitment to guarantee success:
1. Financiers: Need to be development minded; not all of them are.
2. Beneficiaries: require a Vision of the future; change is always threatening, even if for the good.
3. Mentors: We need skilled and committed people, demand outstrips supply.
4. Markets: Geared and secure, we have to continually move up the value chain.

Successful participants will gain these benefits:
• A solid opportunity to build their own successful, sustainable and profitable business .
• The management systems, tools and understanding to control and plan their business dealings in an effective way.
• The recognition of their learning through a formal qualification.

Successful participants will also have:
• Developed a track record, and collateral , to allow them access to institutional loans.
• Reached a position where they can run their own business relatively successfully, without outside assistance or subsidy.

• For successful administration of the project we assume these issues are covered:
– The Participants.
– Equipment and Infrastructure.
– Locations.
– Support
– Sales

Participants are selected by the respective Community leaders within
Rural areas, NOT by Salem
Agribusiness.

– Sales are done through existing market networks which are secure and are geared for the product.
– Payments are made directly to relevant finance institutions where participants hold their accounts.

Equipment and infrastructure can be sourced through Government Grants.

Salem Agribusiness facilitates and supports by walking “alongside” participants, until they are proficient.

– Sales are done through existing market networks which are secure and are geared for the product.
– Payments are made directly to relevant finance institutions where participants hold their accounts.

• Progress on schedule .
– On-track in all areas.
– Behind in no areas.
• Unexpected delays or issues:
– These have mainly been finance related.

• Retention of Export Status:
– DoA-level:
• Capcity : Vet. Services
– Eastern Cape : Capacity
• Staff : AHT’s, Vets.
• Equipment
• Operational funding : Travel

Conclusion
 Unique Industry
 SA is world leader
 Experience
 Expertise
 Systems
 Research
 Well-organised industry : SAOBC

• www.ostrichsa.co.za
• admin@saobc.co.za
• Tel: 044 272 3336
• Fax: 044 272 3337