News 90

Included in this edition:
Extreme Weather Events
A critical review of Botswana’s ostrich industry
World Pork Output Grows
Feed Companies Reporting Upturn

Extreme Weather Events
We have all seen the devastating floods in Pakistan which have destroyed vast areas of agricultural land. Reports coming through indicate that prior to the flooding the farmers were experiencing problems associated with low water availability.

At the same time we have been receiving reports of areas of China experiencing severe mud slides from exceptional rain falls – also a country reporting reduced water table levels. In Niger we hear of families starving from drought and then extreme flooding.

In Russia we are hearing reports of significantly reduced grain harvests as a direct result of drought conditions, resulting in Russia closing their boarders to export of wheat to ensure sufficient grain available to feed their own people.

All our hearts and prayers go out to those losing their homes, livelihoods and loved ones as a direct result of these extreme events.

A critical review of Botswana’s ostrich industry
Today it is rare to receive information on Ostrich production in different regions. All are welcomed. We received a copy of this paper authored by J. C. Moreki and O. A. Koloka from the Department of Animal Production, Ministry of Agriculture, Gaborone, Botswana. You can read the full paper at this link – below is a copy of the abstract.

Abstract

Botswana has the world’s largest population of wild ostriches, indicating that the local climate is suitable for ostrich production. However, commercial ostrich production is still in its infancy despite the good climate and the construction of an ostrich abattoir by the government of Botswana in 2002. The abattoir has the capacity to slaughter 20 000 ostriches per year but has lacked throughput since its inception resulting in frequent closures that contributed to farmers incurring economic losses.

This paper evaluates literature on the ostrich industry in Botswana with a view to highlighting the challenges and opportunities. The main constraints in commercial ostrich production are frequent closures of the abattoir, lack of access to credit and poor extension service. Despite these challenges, opportunities do exist including availability of market (locally and internationally) for ostrich meat and skins, as well as, strong veterinary support. To revive the industry, vertical integration (contract farming) is suggested and feed subsidy is critical.

Key words: Commercial ostrich production, DOMU, meat and skins, ratites, vertical integration.

The authors have correctly highlighted a number of aspects for reason for the slow progress / failure of their industry to develop. Their highlighted causes are common to many and some unique to Botswana. They discussed global production referencing production figures in other regions that are now outdated. The most recent data published by the WOA on global ostrich production is also outdated as production has changed from year to year with no country, including South Africa, has yet establishing sustainable production.

The authors are correct in identifying the need for an aggressive approach driven by a commercial operation following models similar to the successful poultry (and pig) business models is required.

World Pork Output Grows
The latest edition of Pig International reports on the growth of Pig Production/sales over the last decade.

The importance of these statistics to Ostrich is recognising that a high number of the world population are unable to eat pig meat and Ostrich offer the potential, when managed correctly, to provide an option for those populations. This represents the significant market potential for ostrich production.

Table 1 - Top 20 Countries Trends in Pork Production [source: Pig International]

The article discusses the return to growth in production and the changes in the rankings. Figures 2 and 3 illustrate the overall trends over the past decade. It is interesting to note the drop in production in China during 2007, the year the feed grain prices spiked.

Figure 1 - Trends in Pork Production and Exports [Source: Pig International]

Figure 2 - China's Contrasting Trend [Source: Pig International]

It is interesting to note that the EU has exported more Pork than any other trading block (Figure 3)

The article states that last year pork accounted for 37.8% of last year’s all-meats total. This compared with 32.6% for poultry meat and 22.8% for beef/ruminant sources.

This once again illustrates the potential for ostrich meat as it can be used to manufacture hams, bacon and other processed meats that form a large portion of pork meat sales.

Feed Companies Reporting Upturn
Figure 4 is a list of feed companies producing in excess of 1million tonnes of feed per annum. The list provides an illustration of the dominance of a limited number of companies and their impact on the global animal feed market today. Many, if not all, these feed companies have direct investment and/or linkages to livestock production, meat processing and marketing with outlets operating in a number of international markets.