Valuing Ostrich

Newsletter No. 37 – April 2006 Item 2

Last month we announced that your directors would develop a guide to Valuing Ostrich.  This has now been completed and is available to members to download on the website.

Compiling the document makes us all aware of how immature our industry is today.  We have hugely variable production per breeder, few records to accurately reflect the performance of genetic lines and low profitability for too many.  With slaughter birds we have slaughter age varying from under 200 days to in excess of 375 days, with no meaningful price differentiation practiced through meat grading and strong marketing and this remains a true statement in 2013 that requires addressing.

The key to valuing production livestock is establishing their productive value.  The document gives advice on how to establish the productive value of the livestock. The starting point for establishing a productive value is good record keeping.  Records that prove the productive performance of the breeders as well as sale price of progeny and gross margins achieved.

Commercial livestock are raised as a source of food or other products (e.g. Wool, leather, oils) that are usually considered by-products that also contribute to revenue.  Whatever the reason for production, it is essential to make a profit.   The figures demonstrate clearly why early slaughter, combined with good meat yields are essential to commercial success of ostrich production.

 

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