Fin24

Ostrich industry future hinges on ban

2012-05-03 12:26

Cape Town - South Africa's ostrich industry hangs in the balance as farmers desperately await a lift on a meat export ban, with time and money running out.

About 741 farms used to be registered with the SA Ostrich Business Chamber (SAOBC), but this number decreased when the H5N2 bird flu virus broke out in the Klein Karoo in the Western Cape last April.

"This (number) has reduced significantly in the last few months, with the European Union export ban being a main driver, as it's no longer profitable," SAOBC interim chief Piet Kleyn said.

The EU used to import 90% of South Africa's ostrich meat.

The ban's effects have been keenly felt by ostrich farms, mostly found in the Klein Karoo valley, Southern Cape and Eastern Cape, which used to slaughter 250 000 birds a year for meat, leather and feathers.

More than 40 000 infected ostriches were culled following the outbreak, according to Western Cape agricultural spokesman Wouter Kriel.

He said the industry was losing about R108m a month in export revenue and 20 000 job opportunities were at stake.

The national government provided R50m compensation to farmers who lost birds, but many had to close their farms or survive with a limited flock.

The last time a highly pathogenic virus form was detected was back in October. A low pathogenic form, which caused mild disease in poultry, was detected in February but has already been slaughtered out, said Kriel.

However, the agriculture department would apply to lift the ban only once the industry has been restructured - in line with the recommendations of a EU delegation which visited the country in February.

It required that all farmers re-register their businesses and comply with specific regulations before any of them would be allowed to export meat.

They were told this was necessary to protect the country's image as a reliable and responsible exporter, said Kriel.

He said the industry accepted the recommendations and agreed it was sound advice, but time is running out.

"As the Western province, we are lobbying national government to re-think this approach and let's rather allow a few guys to export now. 

"Let's find ways to get them to export at this stage, otherwise the industry will collapse," he said. "This (process) might take as a long as a year.

"We have a situation where all the (ostrich) farmers in the export business haven't had income for a year. They are struggling to survive and have to invest more capital in order to export."

The delegation recommended that bird and farm density be reduced, the movement of ostriches between farms and areas be cut down and ostrich health regulations be tightened up.

Kleyn said he believed a solution could be found if farmers, businesses and national and provincial government worked together.

Farmers are increasingly looking to the domestic market to sell ostrich meat, but there are few prospects as it is a niche market favoured mostly by the health-conscious.

"It's ironic and frustrating. The meat that we are not allowed to export is perfectly safe and can be sold into the domestic market.

"It is very small though and wherever we could, we've been trying to campaign and lobby," Klein said.

Ostrich is a pricey meat as it cannot be sold on the bone, unlike beef and mutton. A 95 kilogram bird yields only about 15kg to 17kg of prime cuts.

Klein said a glimmer of hope for farmers is "a nice increase" in the price of leather and feathers.

The national department was unable to comment on Thursday as it was briefing parliament on its budget vote.

It is likely to give detailed comment soon.

Comments
  • Anned - 2012-05-03 13:33

    so what is the problem, why don't they sell it to the domestic market? O, do I hear the feint whisper "more money, more money from euro" . they will rather go down than to sell it to South Africans at a realistic price.

  • Peter - 2012-05-03 13:34

    Sell your meat here in South Africa - BUT PRICE IT RIGHT FIRST!!! Ostrich is very tasty, and exceptionally good for you. HOWEVER, the price is RIDICULOUS!!!! Priced out of the range of the average middle class South African consumer!!!!!

  • Jana - 2012-05-03 21:30

    It took some time for the wine industry to realise how important the local market is. I have not seen any local marketing of ostrich meat over the last 12 months, can not find ostrich in my local supermarket, do not see it on any restaurant menu... (while I see a lot of pork and beef being advertised, many types of venison on the menu at my local restaurant). With proper marketing of the health benifits,it will sell, even at the same nett price they get when exporting to the EC (free range lamb, at three times the price of chicken, flies from the shelves). Stop waiting for the EC to rescue the industry!

  • craig.esterhuizen - 2012-05-04 08:49

    Farmers expect to achieve an export price for meat sold locally in SA. While this may work for motor vehicles, this strategy will get you nowhere in your industry. As other commenters have said - local ostrich prices are simply way too high.

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