Structure: SA Ostrich Industry

3. Structure: SA Ostrich Industry

4. Structure : SAOBC Private-Public-Part Dept. Agric Laboratories Bio-diversity Game Databases Ostrich databases

5. Mission To promote a sustainable and economically viable ostrich industry in South Africa with the participation of stakeholders

7. Ostrich Industry Status RSA World Leader 70% • Feathers • Meat • Leather Exporting 90% of product

8. Industry Contribution 20 000 220 000 R1 500 M

12. Origins • 1864 :Industry Established • 1959 : One-channel marketing system • 1964 : First abattoir • 1970 : Tannery • 1993 : Deregulation, new entrants

16. Ostrich Industry : Realities • Capital Intensive • High risk

17. Realities of the industry • Capital Intensive • Amount of land required • Feeding cost • Time: 30 month cycle • Abattoirs and tanneries : Standards

18. Realities of the industry (continue) • High risk industry • Mortalities : chick raising • Chick born without immunity to diseases • Birds = sensitive to temp changes • Information on diseases = scarce

19. Production Breeder birds Hatching Day old chicks Chicks rearing to 3 months Chicks rearing to 12 months Quarantine birds Slaughter birds Processing

23. Public – private partnership • Research • Disease control • Exports

26. Information Systems

27. Flow Chart-Traceability System: Production

31. Traceability System: Processing

32. BEE-information • Brochure • Website • Quantify value of projects : R12 m p.a. • Processors • Producers

33. KULA SIZWE Salem Agribusiness Development Project A Small Scale Farmer Development Project with a proven track record for success. Martin Fick

34. Background This project started off in Zimbabwe 13 years ago. In the face of severe economic & political problems, the project has succeeded and continues to do so in that country. Virtually the whole of the ostrich industry there is now in the hands of small-scale farmers. In 2003, we established a similar project in the Eastern Cape.

35. Project Goals Ultimate goal of project: To facilitate the rapid, successful, holistic development of small scale black farmers in Southern Africa by integrating with existing large-scale commercial agricultural enterprise.

36. Project Goals • Create a Generic model that can be reproduced elsewhere in the country. • A model for further initiatives. • Timing goals: • End 2008 - project of 64 farmers. • 2008 - 10 - Project “Shop Window to Africa”.

37. Description • For long term success we have to manage three critical success factors: • Market-Led: productionmust be market driven, and market justified. • Access to competitively priced inputs, including finance. • Trainingin all technical aspects of the business, as well as business training on a formal level, and social training on a personal level.

38. Description Who are we targeting? Mature persons, in good standing in the community in a suitable rural area. Who have access to a small piece of land around their home, and who have a desire to develop themselves.

39. Is semi-literate with an average schooling of Grade 3 or 4. Has little or no comprehension of business operations and commerce. Has few transactions with banks, etc. Operates at a very low level on a cash basis. Has no operating bank or account. Has no collateral for loans. Has no economic understanding. Has no business record or reputation. A typical person for this project: Would be considered as “High Risk.”

40. Critical strengths & weaknesses? • Strengths. • The Grow Out concept links small scale to commercial in a mutually beneficial business relationship. • Weaknesses. • Success requires willing partners, with a genuine commitment to development; such partners are not easy to locate.

41. How do we reduce risks? Training • Participants are trained in technical aspects of production and, through mentorship, gain skills and proficiency. • Business and finance training enables all levels of participants to understand and manage their own financial affairs. • Training takes in a holistic view of life, including happy marriage, parenting, health, investment and personal needs.

42. How do we reduce risks? Strengths of the project approach: • Creates worthwhile employment at home, improving opportunities for family participation. • Embodies individual private ownership, so responsibility and accountability issues are clear. • Not gender specific. Both men and women can participate towards empowerment in the community.

43. Risks reduced? We understand our weaknesses: • The project requires commitment to guarantee success: • Financiers: Need to be development minded; not all of them are. • Beneficiaries: require a Vision of the future; change is always threatening, even if for the good. • Mentors: We need skilled and committed people, demand outstrips supply. • Markets: Geared and secure, we have to continually move up the value chain.

44. Critical future outcomes Successful participants will gain these benefits: • A solid opportunity to build their own successful, sustainable and profitable business. • The management systems, tools and understanding to control and plan their business dealings in an effective way. • The recognition of their learning through a formal qualification.

45. Further Outcomes Successful participants will also have: • Developed a track record, and collateral, to allow them access to institutional loans. • Reached a position where they can run their own business relatively successfully, without outside assistance or subsidy.

46. Resources for success • For successful administration of the project we assume these issues are covered: • The Participants. • Equipment and Infrastructure. • Locations. • Support • Sales

47. Participants Participants are selected by the respective Community leaders within Rural areas, NOT by Salem Agribusiness.

48. Sales • Sales are done through existing market networks which are secure and are geared for the product. • Payments are made directly to relevant finance institutions where participants hold their accounts.

49. Equipment and infrastructure Equipment and infrastructure can be sourced through Government Grants.

50. Support Salem Agribusiness facilitates and supports by walking “alongside” participants, until they are proficient. Mentorship is essential to success in life.