July 30- June 3,
2005 general manager of Shaan Xi Land Reclamation Group, president of IKO
Ostrich Limited Company and vice leader of China Ostrich Breeding and Developing
Association Yang Haomin attended 2005 International Ostrich Industrialization
Congress. Later following the team of China Economy Trade Committee Mr. Yang
Haomin inspected ostrich industry and market in Russia, South Africa and Brazil
etc. October 10 -17, 2005 Mr. Yang Haomin attended the World Ostrich
Development Congress XII in Spain, and inspected ostrich industry and market in
Spain and Italy.
This report is a
summarization of the two congresses, inspections and situation of world ostrich
industry.
i. Brief of 2005
International Industrialization Congress
International
Industrialization Conference was held in Ukraine July 30 - June 3, 2005. There
were 119 delegates from 13 countries and regions.
The subjects of the
congress were development of ostrich products, market, ostrich breeding
technologies, strategy of developing ostrich industry as well as establishment
of North European new ostrich producing area etc.
Mr. Yang Haomin gave
a special report named “Endeavour to Inaugurate a New International Ostrich
Producing Area”. He impelled on the basis of mutual benefit all the world’s
ostrich breeding enterprises to be united, exchanging techniques, developing
market and making full use of advantages.
This congress
stressed market, trade, cooperation, the union as well as mutual benefits;
prospected development of world ostrich industry; analyzed regional advantages
of developing ostrich industry and emphasized information communication and
importance of the union. The conference with strategy significance was a
distinguished one in the history of Asian and East European ostrich
industry.
ii. Brief of the
World Ostrich Development Congress XII
The World Ostrich
Development Congress XII took place in Madrid Spain, October 14-16, 2005. There
were 30 countries attended the congress. They were delegates to ostrich
breeding, processing and marketing; senior technological experts dealing with
ostrich breeding and processing as well as chairmen of ostrich associations from
the United States, Brazil, Belgium, Canada etc.
The subjects of the
congress were international market for ostriches and strategic pattern,
construction of ostrich producing bases, analysis of competition power of
ostrich breeding enterprises, study of ostrich breeding technology, the way to
produce high quality ostrich products and study of ostrich processing
technology.
President Yang
Haomin, on behalf of China Ostrich Breeding and Developing Association, gave the
report named “China Will Become a New World Ostrich Producing Area” and Mr.
Zhang Lao had an exchange of views on the matter of technology.
This congress
displayed comprehensively the last word of the world ostrich industry,
summarized the experience and lessons in the process of developing ostrich
industry, studied, discussed and forecasted the trend of ostrich industry. This
congress was a landmark with profound historic significance and important
realistic meaning.
iii. Matter of
market for ostrich products
When ostrich meat was
introduced into European market, few people knew it. Ostrich meat held the
market gradually depending on its high quality, and has showed huge market
potential.
In Russia, ostrich
meat is top grade delicacy to entertain guests. Previous Russian prime minister
entertained the guests with ostrich meat on his son’s wedding banquet. Several
inspected supermarket in Italy all had sold ostrich meat previously. Now they
stop because of lack supply and high price. Another main reason is that
few people understand ostrich meat so the consumption rate is low. In
Italy due to the BSE, price of ostrich meat had increased to Euro 40-50/kg.
Current prices of ostrich meat on international market: the factory price of
ostrich meat in South Africa is 14USD/kg. The price increases to 17USD/kg
air-ferried to Europe. In Britain, good ostrich fillet is Euro 25/kg. In Span,
ostrich fillet is Euro 15-25/kg, and the factory price of the packed ostrich
fillet is Euro 8.5-15/kg. In German, consumptive group of ostrich meat is middle
aged women. All the delegates in this congress believe ostrich industry has a
great prospect.
Ostrich skin
products in Italy are sold directly by factories. Few products can be found on
the market. Only in one walking street, skin products, one kind is handbag, the
other is female shoes, which are found in two stores. In South Africa, the price
of finished skin is 17USD/square feet, top grade which is mainly marketed
towards Europe. In Spain, ostrich skin shoes have 3 grades. One is ordinary
shoes made from common skin in China with characteristic of comfort. They are
sold at the price of Euro 100-200/pair. One is middle grade, produced in Spain
with characteristics of brand, good skin and fine make. Another is top grade
world famous brand with wonderful skin, splendid make as well as high attached
brand value, which can also be found in emporiums in big cities of Beijing, Xian
etc.
Russia has many
special stores selling ostrich products. Moscow Second International airport has
a middle sized special store for ostrich products. The products are mainly
imported from South Africa. Prices of the shoes are Euro700-1250. And one of
Gallo famous ostrich skin bags is sold at the price of over Euro 1000. It was
observed that1/3 products in the stores had been sold up in one week and
supplemented by new ones. All the travel sites in Brazil and South Africa sell
middle grade ostrich products. Grade 4-1 are sold at the prices of
Euro100-105/sheet in European and US markets, and California is the main market
for producing and consuming ostrich skins. Compared to that of meat, skins have
great profit space because of attached value of brand.
From the above, it
can be concluded that currently, two main markets for skin and meat have opened
up, which are in urgent need of large supply of goods. For example one of France
enterprises demands 30 tons of meat, but it is hard to find supply.
iv. Distribution
Patterns of ostrich breeding in the world
Since the 1990s,
ostrich industry has been developing steadily and appeared five
patterns:
Firstly: European ostrich breeding
area
Advantages:
1. Being near and low
doorsill to market. The dominant problem of marketing meat in the area is
disease prevention.
2. Strong ability to process. Two slaughtering
plants in Span can provide 10,000 ostriches.
Disadvantages: high cost of
production
1. High labour cost at the price of Euro
100-600/person.
2. High price of feedstuff. For example, alfalfa is
Euro 160/ton, corn is Euro 180/ton, and soya bean is more expensive.
Secondly: African ostrich breeding bases represented by South
Africa.
Advantages:
Mature technology scale and market and Europe is the main market for
the meat and the skin.
Disadvantages:
high cost of production
1. Technicians are paid USD
300-400/month. Ordinary workers are paid USD 160-200/month.
2. High cost
of feedstuff. Corn is USD 130-140/ton, and alfalfa is USD/ton. In recent years,
due to Bird Flu and high cost of breeding, ostrich production is decreasing. In
2003 South Africa produced 280,000 commercial ostriches, 250,000 ostriches in
2004, and 230,000 ostriches is estimated in 2005.
Thirdly, South America ostrich breeding areas represented by
Brazil
Advantages:
Huge potential, good policy, strong
economic base and favourable natural conditions and climate.
Brazil first
introduced breeders from South Africa and European countries in 1995. Currently
Brazil possesses 200,000 breeders with an annual production capacity of
200,000-300,000 commercial ostriches. Most ostrich breeding farms in Brazil are
middle sized, with 100-500 breeders and the largest one plans to reach 3,600
breeders. Ostrich industry is developing rapidly in South American
countries.
Fourthly: Eastern European ostrich breeding areas represented by
Poland and Russia
Advantages:
Large land area, abundant feedstuff, low price of land, low cost labour
force, and being near to EU market.
Disadvantages:
1. Long winter which
is unfavourable to exert ostrich breeding ability.
2. Large investment
of infrastructure.
Fifthly: Asian ostrich breeding areas represented by
China
Advantages:
Favourable climate
for ostrich to live, abundant land and low cost of feedstuff and labour force.
Making a
comprehensive view of the five patterns, it can be concluded:
In terms of
market: EU market is NO.1, South America NO.2, Eastern Europe NO.3, then
Asia.
In terms of
competition: Asia, represented by China is the strongest, then Eastern Europe,
then South America, then South Africa and then EU.
China has done a lot
in respects of developing by-products, producing high quality ostrich products,
decreasing the cost, increasing the profit of ostrich industry, and exerting the
advantages of ostriches.
v. Matter of
processing ostrich products
According to the Madrid
Congress and from personal visits, it can be said that every country dealing
with ostrich breeding has mature technology. China’s breeding and processing
technologies have also reached international level. The current problem exists
in Chinese market is high demand and low supply. In addition, the way to
decrease the cost of managing, breeding, processing and marketing combined with
improvement in the quality of products need to be tackled as matter of urgency.
vi. Matter of
uniting ostrich industry
Union of ostrich industry is a
necessity. Ostrich industry should be impelled in different way at
different levels, which includes union of every ostrich association, union of
every ostrich country, union of regions and union of enterprises. Only by union
can ostrich industry realize the unification of breed, management, process, and
brand and achieve intensivism, industrialism, standardization and
commercialization.
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