Structure: SA Ostrich Industry

Structure : SAOBCOstrich databasesGame DatabasesPrivate-Public-PartDept. AgricLaboratoriesBio-diversity

MissionTo 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 Contribution20 000220 000R1 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

ProductionBreeder birdsHatchingDay old chicksChicks rearing to 3 monthsChicks rearing to 12 monthsQuarantine birdsSlaughter birdsProcessing

Public private partnership Research Disease control Exports

Information Systems

Flow Chart-Traceability System: Production

Traceability System: Processing

BEE-informationBrochure

Website

Quantify value of projects : R12 m p.a.ProcessorsProducers

KULA SIZWE Salem Agribusiness Development Project

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

BackgroundThis 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 GoalsUltimate 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 GoalsCreate 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.

DescriptionFor 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.

DescriptionWho 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.

Critical strengths & weaknesses?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.

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.

How do we reduce risks?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:

Risks reduced?We understand our weaknesses:

The project requires commitment to guarantee success:Financiers: Need to be development minded; not all of them are.Beneficiaries: require a Vision of the future; change is always threatening, even if for the good.Mentors: We need skilled and committed people, demand outstrips supply.Markets: 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 OutcomesSuccessful 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 successFor successful administration of the project we assume these issues are covered:

The Participants.Equipment and Infrastructure.Locations. SupportSales

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 StatusProgress on schedule.On-track in all areas.Behind in no areas.

Unexpected delays or issues:These have mainly been finance related.

Challenges to ostrich industryRetention of Export Status: DoA-level:Capcity : Vet. Services

Eastern Cape : CapacityStaff : AHTs, Vets.EquipmentOperational funding : Travel

Conclusion Unique IndustrySA is world leader Experience Expertise Systems Research Well-organised industry : SAOBC

Contact detailswww.ostrichsa.co.za

admin@saobc.co.za

Tel: 044 272 3336

Fax: 044 272 3337

Thank you

Who needs Development?- identifying project beneficiaries:

An understanding of the financial concepts of cash, credit, invoices, delivery notes, statements, records, profit, loss, investment, interest rates, accounts, balances etc.

An understanding of the financial concepts of cash, credit, invoices, delivery notes, statements, records, profit, loss, investment, interest rates, accounts, balances etc.