Statistics show 2007 was an outstanding year for all stakeholders in the live game industry, with average auction prices improving for most species. Roan went for nearly R75 000, buffalo for nearly R135 000, but lions dropped from R25 000 to R7 500. Roelof Bezuidenhout spoke to Flippie Cloete and Pieter Taljaard of the Unit for Wildlife Economics, at the University of the Free State’s Department of Agricultural Economics.
Based on figures obtained from formal auctions held in the various provinces, 2007 was an exceptional year for the live game trade. Although the number of animals offered on auctions showed little change from 2006, prices (nominal and real) increased, contributing significantly towards a record national turnover. However, it remains difficult to provide an overall view of the size and contribution of the wildlife trade, as the extent of direct trade within the industry is a grey area. Any help with information in this regard would be appreciated.
Table 1: Average Game Auction Prices from 2005 to 2007
Males and females
The average game auction prices from 2005 to 2007 are shown in Table 1. The averages for 2006 and 2007 reflect an accounting average, which can be used to compare game prices from 2005 to 2007, as well as a weighted average auction price for 2006 and 2007, which represents a weighted average between male and female animals sold on live game auctions.
Table 1 shows that alien and higher-value species including roan, buffalo and sable antelope gained 13%, 38% and 7% respectively in weighted average auction prices. The more popular common species such as impala, springbok and blesbok all reported a decrease, respectively 34%, 63% and 4%. This was due to higher demand and better prices for female/breeding animals, particularly for alien/higher-value females. In the case of common game, a premium is usually paid for male animals. Figure 1 shows the nominal and real price trends for two alien/higher-value species, buffalo and sable antelope. The real prices were deflated from the nominal prices using the consumer price index (CPI) with 2000 as a base year. The two species followed similar price trends, with an average annual real price increase of 13% and 14% respectively from 1994 to 2007. This means both species showed an average real price increase of double the average annual inflation rate for the same period (6%).
Higher-value species
In general, prices of higher-value species have steadily increased from 1994 to 2003, and decreased up to 2005. But from 2006 onwards, prices steadily increased again into 2007. The price improvement for buffalo and sable antelope corresponds with a decrease in supply, as seen in the decline in numbers sold on auction. Here, the higher demand for female/breeding animals for herd-building has also played an important role in boosting prices. For buffalo, 4% more female animals were sold, fetching average prices 59% higher than males.
The price of other higher-value species such as white rhino and hippo also increased. This was most noticeable for white rhino, with an increase of 56% from 2006 to 2007, corresponding with an 11% decrease in the number of animals sold. Hunting also contributed towards higher auction prices, as indicated by the demand for male (trophy) animals, which jumped 19% and attracted bids 13% higher than females. The nominal and real price trends for impala and springbok, two popular common game species, are reported in Figure 2. They followed similar price trends, recording a real price increase of 29% and 15% respectively from 1994 to 2007.
Figure 3 reports the nominal and real national income generated through formal game auctions in South Africa. Throughout the early 1990s this income moved sideways. From 1995 to 2002 there was a sharp 78% increase in real national income, followed by a 28% decrease up to 2006. During 2007, national income increased considerably, with an estimated R130 million generated. As there was no significant change in the number of animals offered on auction, this increase of 23% from 2006 to 2007 may be explained by the overall increase in the prices of the different species.
Limpopo: live-game leader At provincial level, Limpopo province remains the largest contributor towards live game sales. Almost 50% of all last year’s auctions were held there. Limpopo also accounted for 35% of national income generated, with 37% of all animals sold through the formal auction system. Other provinces that made significant contributions include the Free State (26%), KwaZulu-Natal (10%) and Gauteng (9%). Contact Pieter Taljaard or Flippie Cloete on (051) 401 3220/9367
