May 12
15
Units of Ostrich Farming Production
Costing Ostrich Farming Production focused on identifying the costs per “Unit of Production”. What do we mean by “Unit of Production”?
Understanding Production Assumptions in Ostrich Farming discussed the different production assumptions required when Building an Ostrich Farming Business Plan. In order to establish a profitable business it is essential to optimise the production potential. Poor fertility, low hatchability and chick mortality are major barriers to profitable production. These are measurements that management need to monitor as they all influence potential lost production with serious effects on profitability.
Important “Units of Production” required for costing production are:
- Number of Eggs Produced
- Number of Live Chicks Hatched
- Number of Slaughter Birds or Birds Reaching Maturity
- Kilos of meat produced
Whilst the number of eggs produced is important, it is also important to ensure those eggs are viable. Therefore the important “unit of production” to cost when measuring breeder performance is the number of slaughter birds and/or birds that reach maturity as the ability to produce quality slaughter birds starts with breeders. This applies whether the same farm is rearing or if purchasing eggs or chicks from another farm. In the latter case the buyer will not return to purchase more eggs or chicks if they are not successful. Ostrich Farming Production Depends on Quality Egg Production discussed the reasons.
To establish the costs of producing slaughter birds the total revenue received at slaughter after all costs to rear that bird plus the processing costs need establishing. This is where meat yields and quality are so important. Meat yields not only affect the total meat revenue – they also have a significant influence on the costs of slaughtering and processing. The influence of Meat Yields on Profitability in Ostrich Farming discussed the importance of good meat yields and how it influences not only producer returns but also processor costs.
This simple illustration indicates the areas where value is built. Any failures impact significantly on potential profitability of the ostrich farm so it is essential to identify the key areas where value maybe lost.
Another important influence in processing costs is consistent delivery to the slaughter plant. The slaughter plant will have certain fixed costs that require paying regardless if birds are going through the plant or not. Workers who only slaughter ostrich become extremely efficient, staff working with various livestock are less efficient when slaughtering a small number of ostrich. This loss of efficiency also impacts on the slaughter and processing costs per kilo.
For the ostrich farmer their key cost per unit is the total cost to raise a slaughter bird. The ostrich farmer needs to work in collaboration with the processor/buyer to establish the price received for that slaughter bird. The processor/buyer of slaughter birds needs to work in collaboration with the ostrich farmers as all are interdependent on the other to optimise their unit costs to produce every kilo of ostrich meat, quality ostrich skins, marketable ostrich feathers and consistent ostrich fat.
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Apr 12
16
Costing Ostrich Farming Production
ostrich farming, like all other livestock production enterprises, has a number of input costs. All too often they are measured in actual cost without evaluating the impact these costs may have on the overall production of the operation.
Naturally focus must always remain on the quality of the end products sold to our consumers and delivered at a price they can afford? When costing production, we first have to identify which costs are of a capital nature and those of an operational nature. Those of an operational nature will be divided into:
- fixed costs: those costs that have to be paid regardless of the levels of production as they are independent of the level of production
- variable costs: those costs that vary according to the levels of production
Items of a capital nature are fixed assets such as buildings, fencing, infrastructure to deliver water, electricity and gas (if used) but not the actual cost of using those utilities. The illustration below provides examples of the type of expenses in the different categories. Note that if the land is rented, the annual rental will become a fixed cost.
Ostrich producers currently experiences extreme variability in the number of eggs laid per hen, fertility, hatchability and survivability. Significant variability continues in growth rates, meat yields and meat quality. With livestock production it is critical to understand how what may seem like a minor variation in production levels can impact significantly on the “unit costs of production”.
Every additional egg laid that hatches and grows efficiently to reach slaughter age will impact on the total “unit cost of production”. Every cost decision will have an impact on production and the cost to the business when production is lost or gained as a result. Some examples:
Infrastructure:
Buildings and pen construction needs to consider all extremes of environmental conditions such as rainfall, temperature or predators in the area. Failures here can result in substantial losses if the infrastructure is inadequate to protect the bird group against extreme conditions.
Biosecurity:
Investment in time developing the veterinary health plan[29] will enable management to identify areas of critical importance that can influence the control of disease.
Feed:
Feed is the highest proportion of the variable costs of any livestock production, it is therefore essential to ensure your feed program provides sufficient nutrients to support the commercial production. The food fed to commercial livestock controls the health of the stock, the productivity of the stock and the quality of their products. It is essential to understand how to identify the “production potential” of different rations.
Management:
The importance of the management and staff must always be recognised as critical in ensuring the “production potential” of the livestock under their control is achieved. There are many management factors that influence the overall “production potential” and therefore commercial viability and profitability.
Conclusion:
It is always important to watch costs very carefully, but consider also any possible negative impact on production when ostrich farming for profit.
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A major challenge when starting ostrich farming today is sourcing foundation fertile eggs and/or livestock. “How to Detect a Rogue Seller” discussed this issue and provided a few clues on how to identify any rogue traders offering to sell fertile eggs or livestock. As the internet develops we are becoming aware of further ways in which rogue traders are now operating. The following information is to help reinforce the message of “Buyer Beware”.
There are an increasing number of “trade directory” style web sites developing that appear to have the capability to pick up on searches and input contact details and pictures automatically. When studied we find the contact details contain inconsistencies. Some examples:
- An address and post code in one country but location and telephone in a different country
- Responses to enquiries confirming shipment from South Africa at a time when South African ostrich meat and livestock are unable to be exported with no reference made to this temporary closure.
- 100% hatching rate stated.
- Paper work sent requesting money and payment methods before confirming local veterinary requirements can be met or even the destination for the eggs or livestock
- Does a particular photo become repetitive with different contact details
- A response to an advertisement one assumes is from one country turns out to be a different country. The illustration is one such example.
This illustration is a screen shot from an advertisement on a .co.uk bird marketing website that came up in answer to search for “Fertile ostrich eggs”. The seller gave UK contact details. For research purposes I followed it up and the response came from a totally different country. This was not a surprise given the errors in the advertisement. Hopefully even a newcomer to the industry will pick up on these errors and inconsistencies. However when there is a shortage of supply the temptation will always be there.
The response I received had a number of errors that should alert any potential customer:
- The font in the email was inconsistent suggesting copy/pasting content from variable sources
- Some prices quoted in £ and some in $ and not specifying if US Dollars
- Suggesting flight times without first asking where delivery was expected
- Quoting prices before establishing delivery destination
- Stated stock over 70g in weight would be micro-chipped.
We are talking Ostrich – so that weight is a dead giveaway that the sellers do not have or know anything about ostrich. A target ostrich chick hatch weight should be 1kg with anything less than 800g not worth shipping to any customer. There are a number of other errors in this advertisement that make it clear the seller is unfamiliar with ostrich.
This type of marketing illustrates the negative side of “search engine marketing” and the increasing need for “Buyer Beware”. If any readers have experienced negative experiences when attempting to purchase ostrich eggs or livestock in your efforts to start ostrich farming we would like to hear from you.
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When ostrich farming, a question often asked is whether it is better to have the feed pelleted or to feed the mix as meal or ground. There is only one trial I am aware of that tested this correctly and the results were very interesting.
The trial took place in a windy Cheyenne, Wyoming in the mid 1990s. One important factor of this trial is that it was a high wind area. When carrying out any meaningful trial it is essential to eliminate all variables and then you change just one. What variables would be likely to influence such a result? – Genetics – Nutritional History of the parents – Age – Management – Feed Under feed the rations must be identical, with the only difference one is fed ground and the other is fed pelleted. But in every other respect the rations must be identical in nutrient content and ingredients. This is critical to such a study as it is the nutrient profile and ingredients used that are critical to the performance of any rations.
These are the words reporting the parameters of this study:
Quote: “The trial was 2 groups of 12 birds in different pens. Bird groups were evenly matched for age and parentage. Both the Ground feed and the Pelleted feed rations were identical in nutrient content with equal levels and ratios of Protein, Fat, Fiber, Energy, Minerals, Trace Minerals, Vitamins, and Additives.
The ground feed ration was formulated by Daryl Holle of Blue Mountain Feeds using the Blue Mountain Ultimate Ton Mix for Minerals, Trace Minerals, Vitamins and Additives. The rest of the Ground feed formula ingredients (Alfalfa, Corn, and Soya) were purchased by the rancher and ground/mixed by him using a grinder/mixer machine. The pelleted ration was a complete pelleted feed of equal value in all nutrients and feedstuffs made by Blue Mountain Ostrich Feeds and also formulated to the same nutrient specifications by Daryl Holle”. End Quote
The table illustrates the result. The difference in growth rate was around 5%, but both groups had grown well above the industry average at 300 days recording live weights of 131kgs and 124kgs gaining 435 grams and 412grams per day during the 300 days.
The big difference will be in the cost, when pelleting becomes unnecessary. When mixing feed on farm it is essential that the ingredients are mixed correctly and similar particle size to ensure the birds have balanced intake of all nutrients.
This trial illustrates the importance of minimising variables and proves again the ability of ostrich to achieve excellent liveweight in 300 days. These birds were 30% heavier than the South African’s target liveweight in excess of 425 days. This is the future for commercial ostrich farming success.
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Successful ostrich farming is a dependent on many things. However, the ability to provide a consistent supply of slaughter birds is essential as that is the only way to fulfil orders. This supply must also be produced at a cost our consumers can afford and at a quality that satisfies the market.
The title of this article is Malnutrition in Ostrich. The reason for this is that nutrition is the foundation to achieving commercial levels of production and to providing a product to the quality that is acceptable to the consumer.
What do we understand by malnutrition? Our first reaction to that question is something close to “starvation” defined as “lack of access to sufficient food”. Maybe it is better defined as “lack of access to sufficient nutrients to support optimum health and production”? In humans a simplified definition of production can be “the ability to perform a days’ work free from pain and/or disease and the need for medication”.
The following are examples of the many symptoms of malnutrition currently experience in ostrich production:
- Statements that “Ostriches die for No Reason”
- Short breeding season (less than 275 days)
- Increasing problems with fertility, hatchability and chick survivability as the season progresses
- Variable chick problems such as: yolk Sac Infections, Bad Legs, High Chick Mortality, Slow Growth, Yellow colouration of the skin and/or eyes , Yellow Livers and other signs of abnormal internal organ development
- High levels of Chick Mortality
- Stunted and slow growth
- At slaughter birds presenting with poor livers, multi-coloured muscles, excess fat, too little fat, fat yellow in colour, poor muscle development – extended time taken to ensure sufficient meat yield
There are two important comparisons to be noted in the illustration. Photographs A, B and C illustrate the same batch of chicks at the time of weighing. Note the size of the chicks alongside the farmer with them. Also note that these chicks still have their golden baby feathers normally change from around 200-210 days. The birds in these photos dominate the man with them as a result of their size.
In comparison note the size of the scientist in photograph D kneeling while scanning a breeder hen and the proud new owners alongside one of the new breeder hens they had recently purchased in photograph E. Photograph D was part of a scientific study to understand why hens were not laying well. These hens have no size, both in height or depth of body.
Whilst genetics have an influence on size, the overall appearance of the birds in C and D is that of birds suffering from stunted growth during their development. It is just plain common sense that birds stunted in growth during their development are less able to produce viable eggs in adulthood than birds on quality nutrition throughout their life.
It is essential to overcome the current malnutrition experienced to achieve viable levels of commercial ostrich farming.
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Ostrich farming produces a number of products. Ostrich Farming Sources of Revenue illustrated how there are a number of market sectors that the ostrich supply. These are Meat, leather, cosmetics, pharmaceutical, fashion and craft. Then there are sub-markets within those different market sectors. But which is the most valuable?
When ostrich production was strictly controlled under a single channel marketing cooperative, they were able to build a market based on the ostrich skin. The ostrich skin was turned into beautiful leather, with the best ostrich skins selling for in excess of US$40 square foot.
This would yield revenue of around US$500 – US$600 per bird. This is the per bird value of the finished leather sold into the leather manufacturing markets such as the very high end handbag markets in Japan, Italy and cowboy boot market in Texas.
It is important to remember, these high figures were only the very top grade skins, average returns were a lot lower and the above are post tanning values, not farmer value. At that time ostrich meat was considered low value and sold as a filler ingredient in low value processed meat products. With production strictly controlled there was insufficient volume to supply meat markets in any quantity.
However, as production became deregulated the ostrich leather market changed. There were a number of reasons for this including changes in the fashion industry as the fashion industry. By its very nature, the fashion industry is subject to change from year to year. Today the average raw ostrich skin farmer payment may not achieve greater than US$50 and many have no value if they are poorly produced.
The core product that will form the foundation for the ostrich farmer is ostrich meat. A strong ostrich meat market provides the foundation to support regular production enabling development of the ostrich skin and ostrich oil markets.
What is the likely revenue from meat? Clearly the revenue from meat depends on the yield as discussed in Influence of Meat Yields on Ostrich Farming Profitability. As yields increase the processing costs per kilo reduce, enhancing the overall returns.
As Influence of Meat Yields on Ostrich Farming Profitability illustrated meat yields currently remain extremely variable often as low as 20kgs but with potential of 50kgs and above. Assuming the quality of the meat is the same and selling at an average of say $14/kg for all muscles, that puts the value per bird between $280 (20kg yield) and $700 (50kg yield).
Clearly this differential is very significant illustrating clearly how high yielding meat production birds ensure meat provides the foundation for the business providing excellent revenue opportunity. The revenue for skin and oil can be extremely valuable by-products. The return for the ostrich farmer will depend on the payment structure in place but should reflect the yield.
The future of ostrich farming depends on development of production systems that enable production of high quality meat at commercial levels of production.
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In ostrich farming, forage ingredients are an important component of ostrich rations as discussed in Feed Ingredient Types in a Balanced Ostrich Ration.
All too often one hears people refer to roughage with the thought process that this is in an addition to the main ration. The forage ingredient is provided only for the “roughage” element. The definition of ‘roughage’: “Fibrous, indigestible material…….” in a nutritional sense, roughages have no place in ostrich rations – ostrich need feed ingredients of high digestibility in order to adequate nutrients. Therefore it is more suitable to use the word fibre rather than roughage. The fibre portion of a ration should always be from a quality source and highly digestible.
The Role of Nutrition in Ostrich Farming Establishing the “Productive Value of Ostrich Rations illustrated the variations in nutrient contents of different forage ingredients, including straw. The table listed only the main nutrients, but there will be vitamins and minerals in the different quality, with those with greater digestibility providing gram for gram consumption far more nutrients than those containing high fibre content. The grains and protein ingredients also contain some fibre, but this fibre low and a different quality.
The illustration demonstrates the increasing proportion of stem to leaf as the lucerne/alfalfa crop matures. Notice how rapidly the digestibility drops as the proportion of stem increases. The best nutrients are in the leaf, the stem contains not only a higher proportion of fibre but also, as can be seen, increasing loss in the digestibility. In order to obtain a balance between yield and quality, Lucerne is best harvested around first flower.
According to the NRC United States and Canadian Tables of Feed Composition, forages produced in cooler climates have improved digestibility to those produced in warmer regions.
While on the subject of fibre there are two common beliefs in ostrich documentation that have subsequently been proven incorrect.
The first: that bran may be used as a substitute for lucerne when lucerne is in short supply. Lucerne is a quality forage crop, highly digestible providing many nutrients, not only fibre. In contrast wheat bran is a by-product of wheat and has very different characteristics both in nutrient profile and digestibility.
The second: that baby chicks require very little fibre in the early weeks. The ostrich nutritionist promoting this advice subsequently corrected this advice. Baby chicks require a certain amount of quality fibre in their diets from day one. Impaction was commonly thought to be a cause of death as a result. Chicks hatched with poor livers, yolk sacs or other internal organ problems as discussed here are unable to digest food well. Whilst the food looks undigested (see here), the cause is poor breeder rations and often followed by poor chick feed as well.
As a result of the connotations with roughage being a poor quality fibre source, the word has little room when discussing nutrition in commercial ostrich farming or any other livestock agriculture.
To avoid the mistakes of many past ostrich farmers, and to save you time and money, check out “How to Start A Successful Ostrich Farm“.
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In commercial ostrich farming, it is essential to understand that ostriches require rations that supply adequate nutrients. The Role of Nutrition in Ostrich Farming And Understanding Nutrients And Ingredients and as well as Establishing the Productive Value in ostrich rations referenced “Nutrient Density”.
In livestock nutrition there can be some confusion when discussing “nutrient density” and “concentrates”. The word “concentrates” was introduced some years ago when livestock were fed some additional grains and maybe a few vitamins and/or minerals to help improve the overall nutrient content of their rations to support the forage that they would receive either as grazing, hay or silage.
Today production livestock are fed their rations as a complete mix of all ingredients, including the forage portion of their ration. This ensures balanced intake of all nutrients to optimise their ability to work together.
“Nutrient density” is achieved through the use of quality ingredients from all the ingredient types included in the rations and by adding adequate levels of vitamins and minerals, with some supplementation of certain amino acids, to make the complete rations. Including the supplemented vitamins and minerals in rations is the only way to achieve rations of the correct “nutrient density” and ensure a balanced intake. This is a far superior manner to ensure adequate nutrient intake than simply supplementing vitamins in the water or by other method.
Quality Lucerne is one of the most important ingredients in any production ostrich ration, including Baby Chicks. Quality Lucerne not only provides quality digestible fibre, it also supplies many other nutrients including a valuable source of protein, vitamins and minerals.
Everything an animal consumes carries a number of nutrients – some ingredients more than others. Everything consumed during the day contributes to the overall balance of their rations as well as ensuring adequate nutrients to meet the animals need for good health and adequate production. The less each individual ingredient provides the greater the need for more ingredients to make up those deficiencies, but animals also have an upper limit for daily consumption.
Ostrich’s daily intake of dry matter is relatively low for their size. They therefore they require rations of greater “nutrient density” per gram than maybe required by some other species in order to achieve adequate intake of the required nutrients. Understanding the Moisture Content of Feed in Ostrich Farming discussed the variations in moisture content of different food ingredients
The graphic illustrates various ways to provide forage ingredients. Dry feeds maybe forage provided as hay it may also be grains or protein ingredients. Note the dark areas represent the dry matter, which contains the nutrients. The balance (pale area) is moisture. The greater the moisture, the more total weight the animal has to consume in order to achieve adequate nutrient intak. Then it is important to ensure those ingredients are highly digestible and have optimum nutrients for their ingredient type. Successful commercial ostrich farming depends on understanding these details.
To avoid the mistakes of many past ostrich farmers, and to save you time and money, check out “How to Start A Successful Ostrich Farm“.
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When ostrich farming developed globally yolk sac infection was commonly identified as the cause of death for many chicks. The reason for this was the variable yolk sacs witnessed. One ostrich veterinary book even suggested that yolk sacs with some green colouration may be yolk sac infection as they were so unused to seeing the green yolk sacs. In fact the green colouration is correct and the sign of a healthy chick with excellent bile production to assist in the digestion on the fats in the yolk sac.
The picture illustrates 3 baby chicks during autopsy. No 1 and No 2 are about 10 days of age and No 3 was only 1 day old. No. 2 was a healthy chick euthanized for the purpose of a study to illustrate how a healthy yolk sac should look.
None of these chicks have Infected Yolk Sacs even though all look very different. These variations are all caused by nutritional deficiencies in the diet of the hens that produced the eggs. No. 3 was one of a number of chicks autopsied that day. They were all different, with extremely large yolk sacs and variable internal organ development. No. 3’s yolk sac was twisted – the photograph was taken after untwisting.
During the South African investigation on Chick Mortality, personal communication with a vet involved in the study mentioned testing many chicks for yolk sac infection as he saw similar extremes variations as illustrated above. He was unable to identify any particular bacteria causing any major infection.
As the pictures illustrates, there are problems with the yolk sacs, but infection is not the cause.
Yolk sac retention is another condition often reported in ostrich chicks. As can be seen Chick No. 2, at 10 days old, is using the yolk sac well and was likely to be totally absorbed during the next week. As mentioned above, the green in the yolk sacs is bile. Bile is required to aid the digestion of the fats in the yolk sac. Chick 1 also has a liver that is extremely yellow rather than the natural brown as seen in Chick 2 and Chick 3. Chick 3 had other issues apart from the twisted yolk sac.
The purpose of the yolk sac is to provide the chick with adequate nutrients while the digestive system develops. It is essential to provide food and water to the chicks as quickly as practical after hatch. When a chick is hatched with internal organs that have not developed properly, such as the yellow liver, the chick has a battle to simply survive, let alone grow and develop. Chick 1 was unable to win that battle.
The main cause of yolk sac abnormalities at this time remains breeder nutritional deficiencies. Farms experiencing these problems will usually experience reduced egg fertility and hatchability. Addressing the cause of this problem is essential for commercial success in ostrich farming.
To avoid the mistakes of many past ostrich farmers, and to save you time and money, check out “How to Start A Successful Ostrich Farm“.
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Profitability in Ostrich Farming starts with ensuring quality eggs. ostrich eggs experience defects that are similar to other egg laying species. Before discussing causes, it is best to identify common types of defects that are experienced.
Extremes in Egg in egg sizes: Experience has indicated that egg weights of ostrich fed a balanced diet will range between around 1400grams and 1800grams – with genetics determining which end of the spectrum the eggs fall. Anything below or above those ranges should be considered extreme, regardless of the genetics of those birds.
Wrinkled Eggshells: These are egg shells that have a wrinkled appearance.
Chalky Eggshells: These are eggs displaying a chalking appearance – they lack the normal gloss finish….but rather have a matt (rough) appearance and feel.
Skin Eggs: These are eggs that do not have the normal hard finish to them. To the touch they are soft and spongy.
Porosity Problems: In order to incubate correctly egg shells need to provide adequate porosity. Most importantly to enable adequate air exchange to support the developing embryo. The pores on the shell should be deep, very distinct and many of them.
Egg Shells to hard: When an egg shell is too hard, the chick has a tough time breaking through at time of hatching.
Nutrition must always remain at the top of the list for egg deformity issues in all egg laying specie. Other factors such as environment and genetics remain important considerations. Once nutrition can be ruled out as a cause – what are other possible issues?
Wrinkled or misshaped eggs – a known cause is disturbance of the hen as she was about to lay the egg. Infection in the egg tract can also be a contributing cause.
Skin Eggs – these are eggs laid with no hard shell. If this happens, look for an egg with a double shell….this can be when something goes wrong with the timing that causes an additional shell to go onto one egg at the expense of another egg. As with wrinkled or misshapen eggs, this may be caused by disturbance.
Porosity issues are generally nutritional. If nutrition can be ruled out check the genetics. When checking genetics keep an eye on the breeders’ nutritional history.
At this time nutrition remains the number one cause to any egg deformity and also fertility and hatching issues in ostrich farming.
To avoid the mistakes of many past ostrich farmers, and to save you time and money, check out “How to Start A Successful Ostrich Farm“.
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