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Johannesburg - The rare game industry is delivering double-digit growth for investors and attracting some prominent business names.
At a public auction on Wednesday by game marketing company Vleissentraal, businessman Piet du Toit bought a buffalo bull of exceptional genetic stock for R9.2m. It is rumoured Cyril Ramaphosa will jointly own the bull, but when contacted by Fin24.com, he denied any knowledge of the purchase. He did however acknowledge that he knows Du Toit.
The second-highest bidder at the auction was insurance mogul Douw Steyn's Shambala game reserve, which spent R6.84m on a buffalo bull earlier this year.
Professor Piet du Plessis, director of research and conservation at Wildlife Ranching SA, said investing in game can offer a return of between 20% and 25% on your original capital. He also said the game farming industry isn't only for those who wear khaki.
"There are some serious businessmen who are in the game industry, because they know a good investment when they see one," he said.
Wildlife like buffalo and sable antelope are a good option for investors keen on realising their returns in the short run, Du Plessis says.
Buffalo breed every 16 to 18 months from the age of four and sable antelope every 12 months from the age of three, but rhino only start breeding from six, at three-year intervals. At auctions, the females of the different game species often fetch higher prices.
Rhinos going cheap
Game farms breed these animals to sell for trophy hunting and to supply other farmers for breeding purposes.
Rhinos are currently trading at a substantial discount because of poaching. Keeping rhinos is seen as a liability by some.
"This is a good year to buy rhino for the sake of an investment," said game marketing company Vleissentraal's Johann Vosser. According to Vosser, there were fewer animals on the market this year, as farmers feared the auctions alert poachers to the whereabouts of the animals.
He said when news broke of a major poaching ring bust on Tuesday, rhino prices started climbing.
"We sold 10 white rhinos (on Wednesday) and the cows fetched R300 000 each." Until recently, rhinos were selling for around R230 000.
Vleissentraal auctioned over R200m worth of game in 2009. Often a highly sought-after animal can bring in millions, but generally buffalo reach a maximum of about R400 000 at auctions.
However, as with most alternative investments, a degree of expertise is needed to invest in game farming, Vosser cautioned. For investors looking to enter the industry it is important to remember that it takes planning and thorough management to ensure your herds are reduced at the right time to reinvest the money in the business, he said.
"It's not so easy to get into this industry as a beginner - it will cost you some serious cash because you need to get the top quality breeding material," said Vosser.
- Fin24.com
At a public auction on Wednesday by game marketing company Vleissentraal, businessman Piet du Toit bought a buffalo bull of exceptional genetic stock for R9.2m. It is rumoured Cyril Ramaphosa will jointly own the bull, but when contacted by Fin24.com, he denied any knowledge of the purchase. He did however acknowledge that he knows Du Toit.
The second-highest bidder at the auction was insurance mogul Douw Steyn's Shambala game reserve, which spent R6.84m on a buffalo bull earlier this year.
Professor Piet du Plessis, director of research and conservation at Wildlife Ranching SA, said investing in game can offer a return of between 20% and 25% on your original capital. He also said the game farming industry isn't only for those who wear khaki.
"There are some serious businessmen who are in the game industry, because they know a good investment when they see one," he said.
Wildlife like buffalo and sable antelope are a good option for investors keen on realising their returns in the short run, Du Plessis says.
Buffalo breed every 16 to 18 months from the age of four and sable antelope every 12 months from the age of three, but rhino only start breeding from six, at three-year intervals. At auctions, the females of the different game species often fetch higher prices.
Rhinos going cheap
Game farms breed these animals to sell for trophy hunting and to supply other farmers for breeding purposes.
Rhinos are currently trading at a substantial discount because of poaching. Keeping rhinos is seen as a liability by some.
"This is a good year to buy rhino for the sake of an investment," said game marketing company Vleissentraal's Johann Vosser. According to Vosser, there were fewer animals on the market this year, as farmers feared the auctions alert poachers to the whereabouts of the animals.
He said when news broke of a major poaching ring bust on Tuesday, rhino prices started climbing.
"We sold 10 white rhinos (on Wednesday) and the cows fetched R300 000 each." Until recently, rhinos were selling for around R230 000.
Vleissentraal auctioned over R200m worth of game in 2009. Often a highly sought-after animal can bring in millions, but generally buffalo reach a maximum of about R400 000 at auctions.
However, as with most alternative investments, a degree of expertise is needed to invest in game farming, Vosser cautioned. For investors looking to enter the industry it is important to remember that it takes planning and thorough management to ensure your herds are reduced at the right time to reinvest the money in the business, he said.
"It's not so easy to get into this industry as a beginner - it will cost you some serious cash because you need to get the top quality breeding material," said Vosser.
- Fin24.com
