SAOBC

NOPSA SAVO

Abattoirs Tanneries N.E.W. CapeNorthern Province.

Structure: SA Ostrich Industry

Structure : SAOBCSAOBC:

Directors/CEO

NOPSA18

SAVOProducers

1 050

Abattoirs Tanneries N.E.W. Cape Northern Prov.

Ostrich databasesOstrich databasesGame DatabasesGame Databases

Private-Public-PartDept. Agric

Laboratories

Private-Public-PartDept. Agric

Laboratories

Bio-diversityBio-diversity

Mission

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

Ostrich Industry StatusRSA World Leader 70%

Exporting 90% of product

Leather

Feathers

Meat

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

Amount of land required

Feeding cost

Time: 30 month cycle

Abattoirs and tanneries : Standards

Capital Intensive

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

BEE-information

• Brochure

• Website

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

KULA SIZWE Salem Agribusiness Development Project

Martin Fick

A Small Scale Farmer Development Project with a

proven track record for success.

Background

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.

Project Goals

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.

Project Goals

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”.

Description

• 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.

Description

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.

A typical person for this project:

• Is semi-literate with an average schooling of Grade 3 or 4.

• Has little or no comprehension of business operations and commerce.

• Has few transactions with banks, etc.

• Operates at a very low level on a cash basis.

• Has no operating bank or account.

• Has no collateral for loans.

• Has no economic understanding.

• Has no business 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.

Critical strengths & weaknesses?

How do we reduce risks?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.

– 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.

Strengths of the project approach:How do we reduce risks?

Risks reduced?We We understandunderstand our weaknesses our weaknesses::

The project requires commitmentcommitment to guarantee success:

1.1. FinanciersFinanciers: Need to be development minded; not all of them are.

2.2. BeneficiariesBeneficiaries: require a Vision of the future; change is always threatening, even if for the good.

3.3. MentorsMentors: We need skilled and committed people, demand outstrips supply.

4.4. MarketsMarkets: Geared and secure, we have to continually move up the value chain.

Critical future outcomes

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.

Further Outcomes

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.

Resources for success

• For successful administration of the project we assume these issues are covered:

– The Participants.– Equipment and Infrastructure.– Locations. – Support– Sales

Participants

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

Sales

– 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

Equipment and infrastructure can be sourced through Government Grants.

Support

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

Mentorship is essential to success in life.

Sales

– 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.

Current Project Status

• Progress on schedule.– On-track in all areas.– Behind in no areas.

• Unexpected delays or issues:– These have mainly

been finance related.

Challenges to ostrich industry

• 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

Contact details

• www.ostrichsa.co.za

• admin@saobc.co.za

• Tel: 044 272 3336

• Fax: 044 272 3337

Thank you