AGM Minutes 2014

The Minutes of the Annual General Meeting 2014 AGM are now available to members for viewing here.   Please note members must login before clicking on this link to gain access.

AGM Voting & Meeting Final Reminder

A reminder to members that the voting for this years AGM closes tomorrow (14th October, 2014) at 18.00 BST (British Time).    The meeting itself takes place 2 hours later on line.  It is essential that any member wishing to take part notifies secretary prior to the meeting in order for the Chairman to call you into the meeting on Skype.

The voting form is updated and simpler to use.   The agenda and voting form are available on this page

The instruction on how the meetings are run are also available from that page or available directly from here.

Members AGM Reminder

A quick reminder that the AGM is taking place on Tuesday 14th October (next week) and that this meeting takes place on line to enable all members to take part if they wish.   Full details are availalbe to member here.   Members, please remember you must be logged in before clicking this link.

Please also remember there is a voting form to complete and that voting takes place prior to the meeting with a cut-off time for voting of 2 hours before the AGM meeting begins on 14th October, 2014 at 20.00pm BST (UK Time).

Notice of AGM 2014

The date for the AGM for 2014 is 14th October, 2014.   As usual the meeting is held at the Secretary’s office in England, any members wishing to particpate are able to do so on line through skype.

Full details are available to members when visiting the Members Only Page    Please remember to login first.

Strategic Analysis of the Ostrich Industry

A meeting held in Pretoria in 1999 carried out a full strategic analysis of the industry the supplement to Newsletter No. 15 provided a full report.   Industry immaturity was identified as the primary cause of the problems.  As this study related to every stage of the process and delegates were from all aspects of the value chain, this can be viewed as a fair analysis.    The problems and solutions identified during this meeting remain accurate today.

All present at the strategic analysis sessions, under the guidance of 2 academic professors, were first asked to identify the problems as they saw them.   The idea was to list the problems and divide them into sectors and order of importance.  That created the “Problem Tree” as in Figure 1.  Then we discussed each problem asking the question “what action is required to overcome each of those problems?”   That enabled the construction of the “Objective Tree” as in Figure 2.

Note there are 4 major sectors with their problems and actions required listed below.

Figure 1 – Ostrich Industry Problem Tree
Problem Tree

Looking at the Problem Tree in Figure 1, it is clear why our industry was struggling.  All looking at it can identify with most of the items listed and every one of those items relates to immaturity – maybe a better word is inexperience.  Over the past 15 years many new countries have started up before any previous country has successfully transitioned to commercial production, therefore we have had ongoing inexperienced newcomers and loss of the experience gained by those let down by the lack of development.

Each one of those items has to be in place as laid out in figure 2 in order to have a sustainable market.  The buyers are there, but they can only buy when the product is produced consistently, at the right price, consistent in quality and in the adequate volume.

Figure 2 – Ostrich Industry Objective Tree
Objective Tree

The industry, for the most part, remains inexperienced.    Why is this?

The history of the industry to date is a high turnover of involvement with many around for only 3 or 4 years before failing to make money and then leaving the industry.   The result is a lack of continuity.   Figure 3 is an illustration of the cycle experienced that started in the latter part of the 1990s.

Figure 3 – Current Cycle of Ostrich Industry
history

As the early producers and processors were finding their feet in the transition an important event took place that had a major role to play in the reasons why the production problems became severe.  At this time a South African scientist achieved a PhD in ostrich nutrition and went to many countries lecturing.  A video from one of these presentations was widely distributed.  Many developing rations for ostrich used the work as the foundation of their rations.  In 1999 he wrote:  “± 80 % of the total ostrich industry is based on nutritional guidelines presented by my work”.

Figure 4 provides the comparison of the production problems and the objectives required to overcome those issues copied from Figures 1 and 2.   Proof that South Africa has failed to introduce any of the improvements in their technologies and production systems lies in the fact that they are experiencing continued export restrictions for their meat as a result of health issues within their industry.

Figure 4 – Comparative Production Problems and Objectives

problem objective production comparison

As identified, in order to deliver consistent delivery of a consistent product at commercial and profitable levels of production, it is essential to improve production efficiency and to achieve consistent good health of the livestock. Ostrich are proven to the have significant production potential, but to achieve that potential requires a totally new approach that has yet to be applied on a commercial scale.

Amendments to Ostrich Meat Trading with the EU

The EU published some important amendments relating to ratite meat importation into the EU earlier this year. You can read on line or download the changes that have been made – in your own language here.  The document is entitled: COMMISSION IMPLEMENTING REGULATION (EU) No 166/2014 of 17 February 2014 amending Regulation (EC) No 798/2008 as regards certification requirements for imports into the Union of meat of farmed ratites for human consumption and the entries for Israel and South Africa in the list of third countries or territories.

This is a direct link to the English PDF version, which includes the updated “Model Veterinary Certificate” required for meat of farmed ratites for human consumption (RAT).

Both Israel and South Africa have experienced Avian Influenza outbreaks. The new regulations enable export of meat from approved closed farms. The regulations are extremely strict and designed to minimise risk of infection from the wild bird populations as ratites are farmed outdoors.

Meat from those ostrich farms that are within the 100km range of the coast may not be exported fresh to the EU and must undergo heat treatment prior to exporting.

Hatching Eggs after Extended Storage

A recent article published in World Poultry discusses work carried out by Aviagen’s specialist hatchery team who are successfully developing a technique to hatch eggs with extended storage time.  To achieve this they are evaluating improved ways of handling, storing and incubating eggs.  They report improvements in hatchability of 2-3% in eggs stored for 7-14 days and significantly higher improvements in eggs stored for more than 2 weeks.

It is well known that the longer eggs are stored prior to incubation the lower the hatchability and the higher cull rates of hatched chicks.  So why is it necessary to hold eggs a little longer before incubation?   The reason is market conditions. Delayed setting of eggs could be as a result of reduced demand or it could be to meet specific order sizes.

Figure 1 – ostrich eggs incubating and hatched chicks
ostrich incubation and chicks

The basic principles of egg incubation are the same for chicken and ostrich – but of course the variables in size of eggs are significant.   In addition with ostrich we have to develop sufficient VOLUME production to support the research necessary.

This YouTube video is produced by an incubator company.  The principles discussed illustrate just how advanced poultry production is today and highlights the importance of every management aspect at each stage of the production chain and their impact to the overall profitability.

They discuss how a growing chicken now takes 25% less time to reach the same weight than it did 25 years ago.   In this context they are discussing the importance ever increasing role of optimising embryo development during incubation pointing out that 25 years ago 20% of the time from egg to processing plant was spent in the incubator and today it is 33%.  Figure 2 is captured from the video.

Figure 2 – Comparative Ratio of Incubation Time when reducing Days to Slaughter           [source: pars reform video]
comparative ratios of incubation time and farm time as days reduced to slaughter

The reasons given for these significant improvements in production are the combination of genetics, nutrition and management – the 3 factors that the WOA directors have continued to emphasise.

In the same 25 years ostrich has gone through various phases from the introduction into different countries and their failures to yet develop to commercial production. The 25 years have provided the opportunity to gain experience and prove the potential that under the right management systems, ostrich can reach the same slaughter weight in less than ½ the accepted time.  It now requires adoption of the knowledge learnt implemented on a large enough scale to ensure it is commercially viable.

Supplying Local and Export Markets

A frequent question asked by those starting out in ostrich farming is for information regarding export requirements.   Our response is always:  “there is no direct answer as regulations are dependent on the veterinary health and disease status of the exporting country and the requirements of the importing country”.  Each country or region, such as the EU, set their own requirements.

The drivers for the different regulations are of course disease control and meat hygiene.

Regarding disease control the OIE (The World Organisation for Animal Health) has developed systems referred to as WAHIS (World Animal Health Information on-line reporting System).  WAHID (The World Animal Health Data Base) is the resource that stores this information.

This article is focusing on recent developments in these new information systems.  Whilst they are a great resource, they also illustrate the importance of focussing first on developing the local markets.

Animal Disease Control Resources
The ever increasing international trade of livestock and meat have meant that controlling disease is increasingly important when trading across international borders.  This web page of the OIE summarises the current reporting systems for notifiable diseases throughout the world.

For those not only new to ostrich production but also new to livestock production, the message to get from Figure 1 is the important role of the government veterinary services.   National Veterinary services are the government veterinary services required to monitor diseases, report outbreaks, put in place and monitor control systems when any disease outbreak occurs that carries the risk of rapid transmission to other farms.

Figure 1 – Risk Notification Systems [Large Version]

113-notification-processes-sm
The national veterinary services of the country with infected livestock are responsible for notifying the OIE of such outbreaks.  The OIE then issue alerts to notify any regions, such as neighbours and trading partners that are at particular risk to enable those countries to take appropriate action to protect their domestic livestock.

It is this process that the South African industry has undergone during their various disease outbreaks in the ostrich flock over the past decades and the most recent outbreak still causing a ban on the export of their meat.

The World Animal Health Data Base (WAHID) provides an excellent resource to gain a better understanding as to why it is impossible to have a set of rules for a single species regardless of the importing and exporting country.

This system is under development, but still able to provide a helpful tool:  Countries Sanitary Situation Comparisons.  That link enables the visitor to type in an exporting country and importing country to obtain lists the Probable Disease Hazards, the Possible Disease Hazards and the Diseases that are unlikely to pose any hazards to the importing country as they are currently unknown in that particular country.   It illustrates well just why import and export regulations vary from country to country and why it is impossible to have a “one size fits all” approach.

Figure 2 is the OIE’s illustration to show the interactions between the different processes.

Figure 2 – WAHID and WAHIS [large version]
WAHID interface

The Benefits of Developing the Local Market
The motivation given for exporting when starting out in ostrich farming is usually because there is no established market in their country.  Is this a valid reason?

In general the basic regulations required for health and hygiene at the slaughter plant are standardised across the all species, such as requirements for a Hazard Analysis Critical Control Program (HACCP), residue testing procedures and so on.  These requirements should be available from your national veterinary services.  A slaughter plant must be operational to enable certification.   This is just one good reason for ensuring the business plan for a new ostrich business is not solely based on exporting meat.

If there is no plan to develop local markets, then the business plan must include the costs of slaughtering birds with limited or no revenue from those birds slaughtered during the certification process.

Another reason for developing the local markets is to ensure that there is a market for the meat in the event export markets are shut down for any reason.  A factor to remember is that an outbreak of a disease that impacts ostrich, such as Avian Influenza or Newcastle Disease, breaks out in any other poultry specie it affects the export status of all avian species of the country of that outbreak.  It was an outbreak of H5N1 Avian influenza in poultry that stopped the export of the Israeli ostrich meat production even though the ostrich were not affected.  They had not developed any domestic markets for their ostrich meat.

The main reason there is no developed ostrich meat market in most countries is lack of commercial levels of production.  If there is no commercial production, there is no way to supply the market.  Many newcomers look to the export market assuming those markets are already established in other regions.  The answer is they are not because to date the industry has failed to supply.  It is the inability to supply that remains the barrier to market development not the lack of demand.

The scope of the market is illustrated here.  The challenge is firstly understanding the time taken to build volume and the secondly the investment required to achieve that volume.

Today’s meat markets are dominated by the efficient mainstream industries that over the past few decades have improved their production systems extremely successfully.  They have addressed many management issues, including genetics, to reduce their production costs.   Starting production with just a few birds to test the market cannot work as small numbers are inefficient and expensive to produce and process and inconsistent in taste and appearance.   Newsletter 65 discussed some major production cost items that are influenced significantly by volume.

Building a business plan based on export adds even more costs to meet the requirements of the importing country.

Benefits of Recording Feed Conversion

The PigSite ran an article discussing the importance of keeping good records focusing on measuring feed conversion.  The article illustrates how just a small improvement can make a significant difference in the overall profitability.

Quote:  Producers record numbers born and have a reasonable idea of growth rate while backfat is measured for them when finished pigs are slaughtered. Yet none of these is as important as feed conversion rate (FCR).

Pointing out the relative importance of these factors, Mr Sutcliffe demonstrated that an improvement of one standard deviation in feed conversion (equivalent to about 0.4 FCR points) could be worth as much as £18.52 per pig, assuming daily feed intake remained the same.

In comparison, one standard deviation in grading was worth £1.51; in daily gain, £9.46, and numbers born alive, £5.91 per pig. While one standard deviation is a large change in a trait, it does allow the relative economic impact of each trait to be assessed. End Quote

The author also mentioned the challenge of recording feed intake when feeding is on a conveyor system as is the case in many pig houses today.  It is usually possible to achieve FCR figures on a batch basis if not individual basis and is the best that can be expected in high production systems.

So what factors control feed conversion? This is a combination of productive rations supported by excellent feed and farm management systems, good stockmanship and the genetics of the livestock.  The fact that no genetic work has yet started with ostrich illustrates how this is an area that offers such exciting potential in the future of our industry.

Defining Nutrient Density

An article entitled The 2010 USDA/HHS Guidelines — A Rather Bizarre Definition of “Nutrient Dense”  discusses human nutrition but the principles the author discusses relate to all species.    Production Ostrich require nutrient dense rations, so it is important to understand the meaning of nutrient density.

So what do we mean by Nutrient Dense?  Usually the amount of nutrients provided in a given weight.

Using domesticated ostrich as an example, rations are made up of a combination of ingredients to ensure the birds receive adequate daily nutrient intake and ensuring these nutrients are in their correct balance and ratios to each other and within the weight that the bird can consume in a single day.

The table below is a simple example illustrating how Lucerne varies in quality.  A kilo of lucerne can yield very differing nutrient levels depending on the stage of growth (maturity) it was cut and how it was dried.  The more mature it is when cut the greater the fibre and the less digestible that fibre becomes.  The table illustrates how as the protein reduces per kilo as the fibre increases.  Lucerne provides many essential vitamins and minerals….these all drop as the fibre increases.

Comparative Nutrient Density of Lucerne

Lucerne Quality Protein Fibre Calcium Phosphorous
22% Premium 22% 23% 1.80% 0.32%
20% Good 20% 26% 1.60% 0.29%
18% Average 18% 29% 1.40% 0.24%
15% Mature 15% 34% 1.30% 0.21%
13% Very Mature 13% 38% 1.18% 0.19%

Therefore, many of the nutrients lost in that kilo of lucerne have to be provided by a different ingredient that is denser and will be more expensive.   When the quality is too low, it may not be possible to achieve adequate nutrients within the ration within limits of the daily consumption of the birds fed.

The industrialisation of human food has resulted in the processing of many ingredients.  This has resulted in many by products as the processing removes unwanted elements of the ingredients.  Examples are wheat bran, sugar beet pulp, citrus pulp, grape residue or hominay chop.  Some by products can have a place in small amounts in a ration, but others have no place in a ration as they take up space in the ration whilst providing very few nutrients.  Whilst a certain amount of fibre is essential in a ration, the source of that fibre must provide other essential nutrients that are usable by the birds.

Many of these by products can be very cheap when measured by price per tonne, but when measured by nutrient content they can be extremely costly as they provide so few nutrients for that space they take up in the ration.   When measured by the cost in lost production, and even poor health, they can be prohibitively expensive.

Ostrich require rations that are more nutrient dense than other production species because their daily consumption of feed is much lower when expressed as a percentage of their body weight – see illustration below. This makes it even more critical to use only ingredients that provide the best balance of nutrients and why there is no room in their rations for ingredients that are not to the best quality they can be if commercial levels of production are to be achieved.

Comparative Feed Intake [Courtesy: Blue Mountain Feeds]
comparative feed intake