World Ostrich Association Newsletter No. 114
September, 2012

Included in this edition:
10 Years of the World Ostrich Association
Strategic Analysis of the Ostrich Industry
Future of World Ostrich Association
Annual General Meeting (AGM)

10 Years of the World Ostrich Association
The World Ostrich Association was established on 10th September 2002 and thus we are celebrating our 10th anniversary.  

Ostrich farming developed rapidly with very limited information available on how to raise or process the birds.  Information was limited and conflicting.   During the 1990s good experience was gained but as the industry was ready to transition from selling to new farmers to commercial levels of slaughter progress faltered.  

Recognising the need for serious discussions and to have a better understanding of the issues, many major players in the international industry attended a meeting in Pretoria, South Africa in July 1999.  There were delegates from 12 Countries and 5 continents representing all stages of the value chain.

At the end of the 2 days a number of actions were agreed.  The meeting dispersed with the agreement that the secretariat of the International Ostrich Association would put forward a plan for putting those activities into action.   These included setting agreed standards at industry level.  No action took place. On examination it was found that the International Ostrich Association had no official registrations and was controlled by a single person.   

Recognising the importance of agreed standards, a number of people formed the World Ostrich Association and immediately set about establishing committees to agree these basic standards.      The association was registered as a not for profit company operating under company laws for England and Wales. 

The ostrich industry has continued to decline over the decade to the point that it is time for a review.  The 10 year anniversary of the World Ostrich Association establishment is a good time to look back and examine the activities required to move the industry forward.  

Strategic Analysis of the Ostrich Industry
The meeting held in Pretoria in 1999 carried out a full strategic analysis of the industry the supplement to Newsletter No. 15 provided a full written 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.   

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

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 10 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

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

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 including a video from one of these presentations.    

When studying his information it was clear to see that there was little meaningful science as it relates to commercial production livestock nutrition and management.   In 1999 he wrote:  “± 80 % of the total ostrich industry is based on nutritional guidelines presented by my work”.   Within a few years of that communication he was out of the industry.   Farmers were complaining of lack of results.

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

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 potential, but to achieve that potential requires a totally new approach than has to date been applied on a commercial scale.

Future of the World Ostrich Association
Industry associations have an essential role providing infrastructure for communication:

National and International associations are a mechanism to support their industry.    To do that successfully requires industry participation and input.  Industry participation requires companies working in volume to enable them to support their associations.   

Our 10 year anniversary provides an opportunity to reflect the past and review the future. Any Other Business gives us an opportunity for all members interested in the future of our industry to discuss how they see the role of World Ostrich Association in the current Global Market Place.

Annual General Meeting (AGM)
The date for the 2012 Annual General Meeting is Monday 15th October.  As before, the meeting is held using Skype Chat.  Further details on time and agenda will be published soon.

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