OPPORTUNITIES IN THE EMERGING AND COMMERCIAL WILDLIFE SECTOR

PRODUCTION: GAME RANCHING & PRODUCTS

Adri Kitshoff-Botha

WRSA (Wildlife Ranching South Africa)

www.wrsa.co.za ceo@wrsa.co.za

27 October 2017

GAME RANCHING & PRODUCTS

• BRIEF HISTORY OF THE SOUTH AFRICAN WILDLIFE INDUSTRY

• GAME RANCHING CONTRIBUTION TO BIODIVERSITY

• THE FOUR PILLARS OF WILDLIFE RANCHING

- Tourism

- Hunting

- Products

- Breeding

• FROM EMERGING TO COMEMRCIAL

• IN CLOSING

BRIEF HISTORY

Invasion of wildlife

habitat

Establishment of

Parks:

Natal and KNP

1800’s to 1900’s

Wildlife under

threat

Invitation hunts

replaced by paid huntsConversion of stock

farms to game farms

1652: Abundant

Wildlife

Agricultural

Development:

Wildlife seen as pests:

Exterminated

Urbanisation:

Agriculture pushed

further away

Wildlife Today:

Unique comparative

advantage

WRSA VISION

To create a new wave of growth and prosperity in the wildlife industry,

by leveraging our unique natural strengths for the benefit of all South Africans.

PRESENTATION – CENTURY GOTHIC FONT 18PT

Source: “The New Game Rancher” by Drs Peter and Pam Oberem – BRIZA publications

SINCE 1991: STEADY STREAM OF CONVENTIONAL FARMERS INTEGRATING WITH

OR CHANGING OVER TO GAME FARMING

Livestock and crop farming – more and more challenging, therefore less profitable

(South Africa, along with rest of sub-Saharan Africa, regarded as resource-poor country,

compared to major agricultural producing regions such as Europe and USA)

Weather conditions – wild animals adapting better to severe weather conditions than live

stock

Reason enough for farmers to explore alternative land-use options, on what we refer

to as “marginal land” in South Africa

DIVERSIFICATION,

OPPORTUNITIES

WITHIN

THE FOUR PILLARS

OF

THE WILDLIFE

INDUSTRY

FUNDING AND FINANCE

• 20 % Standard Bank and 80 % private

WILDLIFE TOURISM

80% of all tourists to South Africa partake in

some form of wildlife tourism

75% of all tourists to South African national

parks are South Africans

2015 Domestic tourism survey: Besides

recreation and entertainment, nature-based

tourism is the 2nd-most important activity

Large % of SA wildlife on private land

Game viewing;

Night drives

Bird watching

Quad biking

4x4 trails

Horseback

Cycling

Paddleboats

Fishing

Photography

Caving

Mountain climbing

OPPORTUNITIES AS LAND/LODGE OWNER, OR AS ENTREPRENEUR

DID YOU KNOW??

Field

Guide

Training

Photography

courses

Etc.

RESPONSIBLE AND SUSTAINABLE TOURISM IS AN APPROACH, NOT A

PRODUCT

Agriculture workers make up 6% of the workforce,

higher than those employed in the Mining sector,

but on a par with those employed in the Transport sector.

Tourism employs 4.5% of the total workforce.

Source: Agri Tourism

SOCIO-ECONOMIC DEVELOPMENT IN RURAL SOUTH AFRICA THROUGH AGRITOURISM

• Improved utilisation of both natural and built rural resources

• Enhancement of environmental conservation and management

• Promotion of rural products

• Support for rural traditions and cultural initiatives

• Development of Agricultural areas

• Development of Youth and Social Tourism

• Enhancement of the relationship between city and countryside

Source: Agri-Tourism

HUNTINGconsumptive tourism

Estimated 200,000 South African hunters

(Calculation against number of hunting rifles, ammunition and related items, can be as

much as 450,000)

30 Hunting Associations (80,000 – 90,000 members) Build relationships!

Proficiency grading training done by hunting associations

R7b – average total spending per annum

(200,000 hunters = R35,000 per hunter)

Current focus on youth, ladies and individuals not previous exposed to hunting

Diversify: Tourism during non-hunting months

WHERE DO YOU START?

Corporate

groups

Families

Father & Son/

Mom &

daughter

Hunting/fishing/

photography

combo

PLAINS GAME

INTERNATIONAL (TROPHY) HUNTING TOURISM

OPPORTUNITIES

2015: 7,653 hunters

Landowner Partnership opportunities

with hunting outfitter / professional hunter

Designation as professional hunter / outfitter

Combine with tourism

Job Opportunities; Camp attendants,

trackers, skinners, chef, professional hunter,

CHALLENGES

Infrastructure (lodge, chef, transport,

etc)

Marketing / time consuming to build

client base

Trophy animals

PH: Away from home

NEED: PASSION & COMMITMENT

INTERESTING STATISTICS RE INTERNATIONAL HUNTING TOURISTS

DEA INFORMATION: 2015

* 7,653 international hunters

* R1.65b

Species R1.235; Daily rates R421m

* Top 3 countries:

USA, Denmark, Germany

* Top 5 Species:

Impala, Warthog, Blesbuck, Kudu

Blue wildebeest

* Top 3 Income generators

Lion (R181m) Buffalo (R145m)

Kudu (R104m)

NWU: 2015/6 (362)

• 61jr + = 58%

• 42% - professional; 28% pensioners

• 73% bring partners

• 51% with a hunting partner

• 32% 10-12 days at hunting destination

• Specie fees: Average $10345 (R134 485)

• Top 5: Impala, Warthog, Springbuck, Kudu,,

Blesbuck

• Top generators Buffalo, lion, sable, koedoe, njala

• Totale spending: R1.98 miljard

• Marketing: Conventions/verbal 34%

• Top 3 provinces: Limpopo, Eastern Cape, North

West

• 79% respondents indicated they will return to RSA

4 MAIN REASONS FOR HUNTING IN

SA:

Affordability; Best value for money;

Animal availability; Variety of species.

BREEDING

1. THE LANDSCAPE:

The Players

Where you position yourself

Mindset of sharing

Auction / Direct Sales

2. INFRASTRUCTURE:

Land: Owned / Joint Venture?

Management

Breeding Camps and fencing

Veld management, Feeding, animal health

3. PROCESS OF BUYING:

Business Plan

Budget / Prices

Species

Quality / Genetics

4. RETURN ON INVESTMENT

Risk Platform

Diversify

Wildlife breeding is a business like any other

and has to be managed accordingly

IMPORTANT FACTORS TO CONSIDER

PRODUCTS

SA GAME MEAT SCHEME

The objective of this initiative is to ensure high quality, safe, meat

to reach the end consumer, through compliant processes at existing and new meat

processing plants.

Currently:120,000 to 150,000 ton p/aBiggest share: for own use

by hunters

Currently:20% of red meat

consumed in South Africa is game meat

Game Meat

Unique South African, healthy, natural product

PROCESS

FINALISE LEGAL FRAMEWORK

FORMALISE SUPPLY CHAIN

BRAND & MARKET

MODEL.

BUSINESS

OPPORTUNITIES

LEGISLATION

EMERGING TO COMMERCIAL

Structured enterprise development in communal land development

Biggest handicap for new entrants: Lack Of Resources (capital, physical and human)

Need for partnerships, coaching, mentorship and training

The need for a multi-faceted institutional environment,

Allowing for the formation of partnerships between public and private sectors including NGOs and

grassroots organisations of disadvantaged communities (Role of government; delivery of services)

Aligning objectives, action plans, policies and strategies

Agricultural sector is expected to significantly start and contributing to land reform.

WRSA and the wider value chain aligning its objectives, action plans, policies and strategies with the policy

frameworks of government

Focus on

commercialisation

– “the business of

farming”

Avoid unrealistic

expectations

We need the WILL

and DESIRE of

both industry and

government

Need for

collaboration and

depoliticised

discussions

Most of all,

we need

PASSION &

TAKING OF

OWNERSHIP

To create a new wave of growth and prosperity in the wildlife industry,

by leveraging our unique natural strengths for the benefit of all South Africans.

IN CLOSING

WHAT DOES TRANSFORMATION MEAN?

WRSA VISION

To create a new wave of growth and prosperity in the wildlife industry,

by leveraging our unique natural strengths for the benefit of all South Africans.

TRANSFORMATION OF THE SOUTH AFRICAN WILDLIFE INDUSTRY

=A FULLY REPRESENTATIVE INDUSTRY