ISSUE No. 11

1. Director Resignation
2. Globalisation - Economic Impact of Bad Publicity
3. Industry Comparisons
4. Conference in China
5. Normal vs Usual
6. Contributions

1. Director Resignation
It is with great regret that we have received and accepted the resignation of Marie Isabel Silva as a director due to ill health. I am sure you will all join me in thanking Isabel for all her hard work to date, and especially organising the conference in Chile.
 
This provides an opening for a new director. If any of you would like to serve as a director or nominate someone to be a director, please let Craig know at http://www.world-ostrich.org/member/resolve1.htm.
 
2. Globalisation - Economic impact of Bad Publicity
BSE, Avian Influenza, New Castle Disease and Toxic Contamination reports are all examples of situations that have resulted in overnight collapse of prices for producers and in many instances slaughter of the total flock or herd. Events of this nature are particularly devastating when there is a dependency on export markets as is the case with most all livestock rearing today.
 
They also have an impact on demand of alternative meat sources - such as Ostrich, Venison, Bison, Kangaroo in the case of the Red Meat Industry. The common factor of these alternative sources being their perceived purity as they are specie that have not previously been domesticated.
 
When added to increasing consumer concerns over the use of hormones, routine use of antibiotics and certain factory farming techniques, our industry does have considerable marketing opportunities IF we can develop commercial levels of production and as an industry we do everything we can to minimise the risk of adverse publicity.
 
We have had an example in our industry back in 1996. A report on Congo Fever in Ostrich had a devastating impact on the South African Ostrich industry in particular and the ostrich industry in general. It also impacted severely on Australian Emu producers marketing their meat into the Far East. They reported to me that their buyers perceived Emu the same as Ostrich. This particular incident only happened in a single slaughter plant in a totally different country but the buyers would not buy and used this incident as an excuse to drop the price offered. Although subsequently proven to be of no concern to consumer health, this particular incident took the heat out of a rapidly developing Ostrich Meat
Market with a severe drop in prices. It affected the entire Ostrich and Emu industry.
 
So we all need to be extremely aware of how interdependent we all are on each other at all times, but especially while our industry is so fragile during the transition to commercial production. As an industry we need to be working internally for all to understand and minimise our exposures to these risks.
 
3. Industry Comparisons
An industry that maybe we can consider the Farmed Salmon industry as similar to our industry for growth potential?
 
Over the past two decades, the farmed salmon industry has increased production from approximately 24,000 metric tonnes to over 1 million tonnes, growing at a rate of 14% per annum in the EU and 23% in North America between the years of 1988 and 1999. These are growth rates we need to be considering as an industry.
 
The Salmon industry is now the subject of a recent health scare that has come from the reports on the levels of certain toxic chemicals in farmed salmon. Whether or not the toxicity levels are a danger to consumers, the publicity indicating that there could be a problem will have shaken consumer confidence in their products and must have a devastating impact on the prices achieved. This also came to them at a time when their prices have reduced as a result of economies of scale now being achieved.
 
What is important is to do all we can to ensure that an incident in any single area does not put at risk the whole industry.
 
4. China Conference
The conference originally set for September has now been rescheduled to take place from April 2 to April 5 2004. Further details can be found at the following web site links:

http://www.iko.com.cn/conference
http://www.woc2003.com
 
The organisers have kindly offered discounts to WOA members of 10%. If you should wish to attend, you will need to quote your membership number and submit and pay for your registration by 29th February, 2004.
 
5. Normal vs Usual

Why is this important to Ostrich production?
 
Ostrich Production is new as a commercial industry. Whilst Ostriches have been domesticated in South Africa for 150 years, as a production industry in only started with the termination of the monopoly in November, 1993. As a result there has been a proliferation of information that has been based on perceptions that what has been seen as usual is actually normal, when this is not the case. Some examples:
 
- Slaughter Age is 14mths and Slaughter Live Weight is 95kgs
Consider: We all know that birds are sold as Blues, Blacks or Reds even though Dr. Jarvis has clearly identified at least 8 different sub-specie. This is as diverse as expecting a Jersey Heifer to yield the same as a Charolais Steer.
 
Consider: The best meat yields recorded on a regular basis from some producers have exceeded 50kgs of meat at 12 - 13 months. Liveweight in excess of 145kgs.
 
Consider: Many birds have been slaughtered at ages 10 months and younger achieving liveweights in excess of 95kgs
 
Conclusion: If the 95kgs is only being reached at 14months of age, the methods of rearing need to be investigated. The optimum slaughter weight will be dependent on the inherent genetic potential to achieve greater growth rates.
 
To finish a bird for slaughter at younger age and/or with significantly improved meat yields has a significant impact on profitability.
 
- Skins not mature until 14 mths
Consider: There are many slaughter ostriches currently grown that have immature skins at 14 months.
 
Consider: There are many ostriches grown that have acceptable skins from 7 months. The reasons for difference can always be traced back to the rearing methods.
 
Conclusion: Skins can be mature much earlier than 14 months. Any suggesting otherwise are producing misinformation.
 
To finish a bird for slaughter in 7 to 10 months is very much more cost effective than waiting to 14 months. Savings are in feed consumption, working capital, labour and infrastructure.
 
- Bright Yellow Baby Chick Livers are normal
Consider: Baby chicks can be hatched with the accepted normal red/brown liver colour
 
Consider: The higher the nutrient content of breeder rations, the lower the incidents of Yellow Liver Chick Syndrome, Yolk Sac Infections, Impaction, Poor growth rates and high chick mortality
 
Conclusion: If chicks can be hatched with livers of the accepted normal red/brown liver colour, these chicks have a head start in their ability to utilise nutrients and therefore grow faster.
 
This has to be more cost effective than working with chicks that are slow to get going as they have an internal organ that is unable to function adequately at hatch.
 
- Yellow Fat is Normal
Consider: There is a common statement made when handling yellow fat and that is that it has an unfavourable odour.
 
Consider: Tanner commenting on tremendous difference in the manner in which white fat handles in tanning process compared to the more tightly bound yellow fat
 
Consider: Birds have been autopsied as dieing from starvation even though plenty of yellow fat evident. Reason, the fat was too tightly bound to break down fast enough to provide the required energy.
 
Conclusion: The bad smelling odour is a key indicator of toxins present in the fat.
 
Toxins build up when rations are nutrient deficient and result in the birds inability to clear toxins.
 
- Late Season Chicks are Weaker than Early Season Chicks
Consider: Yellow Liver Chick Syndrome, Yolk Sac Infections and Impactions virtually disappear on breeder rations of higher nutrient levels than chicks displaying these symptoms.
 
Consider: The Blue Mountain Weight Gain Farmer Bench Mark Trial was carried out on chicks hatched in the latter part of the season, yet they are still the best published performance data in Ostrich.
 
Conclusion: When breeder birds have rations of adequate nutrient content, there are adequate nutrients to sustain quality egg production throughout the season.
 
Strong chicks throughout the season have significant commercial benefits to the producer
 
As can be seen from these few examples there are many myths that have been spread that instead of accepting as fact, there is a need to understand that they are correctable. If they can be corrected, then improvements in bird performance and overall profitability for producers, processors and marketers. If they can be corrected we can become more competitive to the traditional livestock meat supplies.
 
6. Contributions
As always I ask for contributions from Country Liaisons and other members. A sharing of your experiences, what is happening in your area - anything you believe that would be of interest to other members. Any contributions for inclusion in future news letters please send to Fiona at [email protected].
 
Any comments or suggestions, please post either to the members list [email protected] or Craig at [email protected]