Notes
Slide Show
Outline
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Cutting the Costs of Ostrich Production
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Value Pyramid
  • Low Volume = High Costs
  • High Value = High Quality
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Measures of Performance
  • Cost Per Chick
  • Cost Per Kilo Meat
  • Cost Per Kilo Processing
  • Carcass Grade
  • Skin Grade
  • Fat Quality
  • Feather Quality
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Inputs Costs
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Production Costs Consolidated
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Costing Chick Production -Breeder Birds
  • Breeder Birds = Number of Slaughter birds
    • Not Eggs
    • Not Day Old Chicks



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Feed Production Value
  • High Production
    • High Nutrient Density – High Cost/Tonne
          • Quality Ingredients, High Supplemented Vits and Mins
  • Medium Production
    • Medium Nutrient Density – Medium Cost/Tonne
          • Quality Ingredients, Medium to Low Supplemented Vits and Mins.
  • Low Production
    • Low Nutrient Density – Low Cost/Tonne (often +/-25% higher intake)
          • Poor Quality Ingredients/By Products, Low Supplemented Vits and Mins
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Low Daily Feed Intake
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Costing Chick Production -Breeder Birds
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Chick Production – Chicks/Hen
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Costing Chick Production – Cost/Chick – Breeder Feed
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Incubation Costs
  • Fixed Costs:
    • Servicing Capital of Incubation Facility
    • Labour (greater when high infertility and low hatchability)
    • Electricity
    • Administration
    • Misc.


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Other Economic Benefits to
Enhance Producer Profitability
  • Costs Reduced
  • Veterinary
  • Labour
  • Investment required in Breeder Stock
  • Investment required in Breeder Infrastructure
  • Working Capital
  • Capital Depreciation Costs
  • Stronger Chicks require less Heat


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Units of Production
Slaughter Birds
  • Cost per kg Meat Production
  • Cost per kg Fat Production


  • Costs of Processing
  • Marketability of Meat
  • Marketability of Skins
  • Marketability of Fat
  • Marketability of Feathers
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Factors Influencing Costs per Kilo


  • Early Slaughter Reduces Feed Intake
  • Early Slaughter Reduces Infrastructure Required
  • Early Slaughter Reduces Labour Costs
  • Early Slaughter Reduces Working Capital
  • Faster return on Working Capital


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Can Slaughter Age of Ostrich be Reduced?
  • Ostrich are now Produced with same weights in 7 Months that traditionally were achieved in 14 Months
  • Poultry, Beef, Hogs and Dairy have all made dramatic improvements in production in recent decades


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What about the Skins?
  • How many have been told the skins will not be mature?


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Follicle Classification
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Slaughter Age
Skin Study
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Young Skins
Follicle Study
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Young Skins Acceptable IF
  • Correct Nutrition
  • Correct Feed Management
  • Correct Farm Management
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Slaughter Age
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Other Benefits Young Slaughter and High Nutrient Dense Rations
  • Cash Turnover improved
  • Working Capital Required for Shorter Period
    • Reduced financing costs
  • Less Infrastructure
    • Reduced Capital Costs and servicing of capital
  • Healthier Stock
    • Reduced Veterinary Costs
  • Reduced Labour


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Producer Costs Per Kilo
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Producer Costs per Kilo
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Comparative Systems
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Processing Costs Per Kilo
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Impact of Meat Yield on Processing Costs Per Kilo
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Factors Influencing Revenue
  • Meat Yield  +/- 100%
  • Meat Grade +/- 25%
  • Skin Grade +/- 100% (many skins reject)
  • Skin Follicle Class +/- 20%
  • Skin Size +/- 30%
  • Feather Quality
  • Feather Density
  • Fat Yield
  • Fat Grade
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Production Targets
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Factors that Influence Production
  • Feed
  • Feed Management
  • Farm Management
  • Genetics
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Top of Value Chain
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Lucerne/alfalfa
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Cutting Cost of Feed
  • Obtain Feed with Highest Production Potential
  • Volume (small groups work together buying power)
  • Farm Production of Major Ingredients
  • Bulk Purchasing of Ingredients
  • Control Manufacture
  • Location
  • Ensure High Standard of Feed Management
  • Ensure High Standard of Farm Management
  • Minimise Wastage
  • Improve Genetic Base




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Factors that Influence Yield
  • Feed
  • Feed Management
  • Farm Management
  • Genetics
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Value of Measurements of Production
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Return on Investment
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Value of Genetic Tracking
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Value of Meat Quality
  • Uniformity of Colour
  • Holding Colour
  • Uniformity of Muscles Sizes
  • Aroma
  • Texture
  • Nutritional Content
  • Drip Loss
  • Consistency of Supply
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ROI to Producer and Retailer
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Value of Skin Quality
  • Method of Rearing
  • Scaring
  • Pin Holes
  • Removal
  • Treatment
  • Storage
  • Tanning



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Value of Fat
  • Small Market as Inconsistent in
    • Quantity and Consistency
    • Emu Industry report 35% Variation in Oil Yields for same weight of Fat
    • Variation in excess of 4 litres


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Value of Feathers
  • Volume
  • Freedom from Parasites
  • Damage
  • Maturity
  • General Health




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Cut Production Costs
  • Cost of Chick
  • Early Slaughter
  • Improved Feed Conversion
  • Improved Percentage Liveweight to Meat
  • Greater Yields = Reduced Processing Costs
  • Improved Quality and Consistency
  • Larger Muscles Greater Market Opportunities
  • Improved Skin Quality
  • Fat Revenue
  • Economies of Scale
  • Improved Genetics
  • Increased Revenue



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Potential Cut Costs and Increased Revenue?
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High Production Nutrition