Ostriches still big business

Mosstrich, the world’s second largest processor of ostrich products, increased its turnover from R178 million during 2005/2006 to R224 million in 2006/2007. A pre-tax profit of R21,5 million was achieved of which R14,7 million was declared as production bonuses and fully paid out to ostrich producers – the major shareholders of the company. An additional R2,5 million was paid out for ostriches slaughtered in the four months following the end of the financial year. Dr Francois de Wet, CEO of Mosstrich, ascribes the group’s excellent financial performance to the fact that the industry was once again able to export ostrich meat to the EU for 12 consecutive months as well as favourable exchange rates with the rand falling between R9,50 and R10 to the euro. There was also a satisfactory demand for ostrich leather. “Leather is mostly sold in the US and although the average exchange rate of R6,60 to the dollar of the past year is still lower than we would like to see, it is a substantial improvement on the previous year’s level of below R6 to the dollar,” said De Wet. The group has also diversified by slaughtering a range of game in winter – the ostrich off season – and exporting the meat. “Around 70 000 ostriches are slaughtered annually and the group handled about 26 000 springbok, as well as kudu, zebra, blesbok and blue wildebeest during the past financial year. Our existing distribution channels in Germany, Switzerland, Belgium, France and Holland also serve for the export of game,” said De Wet. H endrik Pienaar, chairperson of Mosstrich, warned at the group’s AGM that producers should be cautiously optimistic in 2008. “Mosstrich managed to increase the acquisition prices for ostriches by 24% during the year, excluding the production bonuses we paid out. This, coupled with very favourable rain, once again makes ostrich farming viable for us as producers. However, it is important for every ostrich producer to realise that self regulation regarding requirements, ongoing pruning of unnecessary costs and striving for better quality raw material will be necessary for long-term success in the industry.” – Glenneis Erasmus