Tuesday, May 23, 2006

To what extent has the Ostrich Industries export product focus changed ?

Introduction

The Ostrich:
The ostrich is the largest species of bird. It is flightless but can run in
excess of 65 km/hr. They can grow to be a height of 2.4 metres and weigh up
to 130 kg. Male ostriches are black, with white wings and tails. The female
is a dull greyish-brown. The females lay their yellowish-white eggs together
in a single large hole in the sand. The eggs weigh about 1.4 kg each and
have a volume of about 1.4 liters. They spread their small wings when
running and have long, powerful legs that are used for defence. The feet of
the ostrich have only two toes. The ostrich originated in the middle east
but is all but extinct in this region. The majority of the worlds population
can be found in Southern Africa with other populations springing up in
places like Australia, Namibia, Zambia and America for farming practices.

Start of The Ostrich industry in S.A
Commercial ostrich farming started in SA in 1864. The main area were the
farming began was in the Klein Karoo area, centred around Outshoorn. The
climatic conditions of this area are well suited for large scale commercial
ostrich farming. The dry and warm summers and sunny winter days made it the
ideal breeding ground and habitat for ostriches. The dry climate also helps
prevent the transmission of diseases. An increasing demand through out the
world for ostrich plumes reached its peak in 1913. This was a result of the
ostrich feather being prized as a status and fashion symbol. The feathers
were used mainly in women's fashion and was very in 'vogue' at the time. The
demand was so great that the number of ostriches skyrocketed from roughly
50000 birds at the turn of the century to roughly 700000 birds at the height
of the feather craze. By 1913 ostrich feathers were the fourth largest
export earner from after gold, diamonds and wool. An example of the huge
trade in feathers was the enormous feather market hall in Port Elizabeth
were furious trading of the feathers took place. The export demand for
ostrich leather or meat was almost non-existent at the time. The feather
export was by far the dominant product focus of the industry at the time.
The Decline in demand for feathers
The economic instability running up to WWI started a decline in the demand
for ostrich feathers. A fashion change also took place from the extravagance
of the early part of the century to the more practical fashion senses of the
war time and post war times. This decline turned into a major crash as the
war broke out all across Europe, the main importer along with the U.S.A of
ostrich feathers. The war resulted in many of the markets being cut off from
trade and subsequently the industry back in S.A took a huge hit. The advent
of the war coupled with a sever drought that struck S.A at the time all but
put an end to the industry. Most of the feathers now were being used for
industrial use, feather dusters and alike. The great depression that
followed the war further hit the industry. The whole industry was on the
back-burner for the next 50 or so years, eg. in 1970 only 27000 birds were
slaughtered.
The take-off of Leather products
At the beginning of the 70's the industry was dead. production was on a
small scale and there was no substantial demand for any ostrich products. A
fashion change in America, ostrich leather boots, belts etc sparked off a
expansion of the industry again, this time focusing on leather. This
stimulated the industry and all around ostrich farms started springing up to
deal with the demand. An example of the massive surge in production is was
the Klein Karoo Ostrich company that by 1982 was keeping 120000 ostriches
and was exporting 50000 hides a year to the U.S. At the time, when S.A had a
legal monopoly on the industry, a hide was worth around $500 so it was a
very lucrative business to be involved in. The upward trend continued and
the leather industry continued to expand. By 1993 Klein Karoo was keeping
150000 birds and obtaining most of its export profits from raw hides.

The take-off of Meat products
The take of f of meat products started around the mid 1980's. This was a
result of the industry marketing the meat as a healthier alternative to
beef. It is high in protein and low in fat. The Mad Cow Disease epidemic
also turned many people away from beef and opened up the market to
alternatives such as ostrich meat. The industry has expanded from one
abattoir in 1964 to ten export approved abattoirs today. These abattoirs are
internationally certified and the meat produced there is safe for export.
The meat is then exported to Europe and the East. The whole modern shift
towards healthy eating and a healthy life style have all aided the meat
industry. The Heart foundation has approved ostrich meat as a much healthier
alternative to beef products and actively encourages the consumption of
ostrich instead of beef. As world tastes change and the continuous search
for new and exciting foods continues the future of ostrich meat looks good
as the meat reaches a wider and wider market.

The shift from Feathers to Leather and Meat
After the feather industries collapse after the advent of WWI, the ostrich
industry was in a steady decline. An example of this was the drastic drop
from 770000 birds at the height of the feather craze to just 23000 in 1930.
The industry started changing its focus. In 1964 the first abattoir was
opened and in 1970 the first tannery was established. Since this time the
respective industries have grown considerably and far outweighed the
contribution of feathers to the total export value of the whole industry. As
a result of the emergence of  the meat and leather industries the total
number of birds in South Africa has risen to roughly 300000. Currently South
Africa exports roughly R1.2 Billion of ostrich products, 90% of this is from
meat and leather products. It is clear from this evidence that the leather
and meat side of the ostrich industry is in the dominance. The shift from
feather products to meat and leather products is very evident.

Conclusion
The ostrich industry has been through many ups and down over the last 100
years. From the dramatic feather boom of the early 1900's which saw a
massive increase in production in S.A to the devastating effects of the
subsequent crash. The industry went through a very quite patch between 1930
and 1970. From the 70's onward a new trend emerged. This trend was a an
increase in demand for ostrich leather products. This demand sparked off the
second ostrich boom, this boom has continued into the present day and is set
to grow steadily. The meat industry also started to pick up from the 70's
onward and started to have an impact on the export earnings of the industry.
It grew and is now on a par with the leather industry in its export
earnings.
From the evidence presented in the previous pages it is clear that the
industry has drastically shifted its focus from solely feather in the early
1900's to predominantly meat and leather products in the present day. From
earning nearly 100% of its export revenue from feathers to now only earning
around 10% is a obvious indication of the shift that has taken place. The
shift of focus from feather to leather and meat products is clear.
With the process of globalization taking place and the opening up of new
markets such as China and the Middle-East for meat and leather exports the
future of the ostrich industry looks bright.

Written by Luke Mann
(Gr12 student at Kingswood College)