Ostrich Farming and Industry Strategic Analysis

With the industry stalling, failures in many ostrich farming enterprises and the forward progress expected following deregulation in South Africa stalling, the South African industry held a Log Frame session held over 2 days in 1997 to strategically analyze where their industry was and what was required to move this forward. The following year the now defunct International Ostrich Association (IOA) carried out a similar exercise on the International Industry.

Both sessions were facilitated by Prof. Luc D’Haese (Prof. of Economics – University of Gent, Belgium) and assisted by Prof. Johan van Rooyen (University of Pretoria and the South African [SA] Agriculture Business Chamber) and Mr. Dirk Esterhuizen (SA Agricultural Business Chamber).

IOA Members entering Incubation Facility in Israel

8 IOAmeeting Israel Ostrich Farming and Industry Strategic Analysis

Reviewing the report of this meeting 10 years on is a great reminder of what an important process this was for any starting Ostrich Farming today. The process clearly identified problems that needed addressing. Clearly challenging to achieve as an industry as it requires individual commercial operations to take on board the issues and implement them in their own businesses in line with the industry association implementing those areas clearly identified as industry infrastructure requirements.

The strategic planning process was split into 4 sections:

1. An environmental analysis utilizing the SWOT Methodology

2. Logistical Framework Analysis
2.1. First identifying the problems by using negative statements – attendees built a negative tree
2.2. Then discussing how to turn those negatives to positives statements to build an enabling environment.

3. Strategy Analysis

4. Action Plans

The following is a summary of the SWOT analysis:
Strengths = Healthy Products, Quality Products, Product Range
Weaknesses = Inconsistencies, Poor Health of Livestock, Distrust
Opportunities = Large Market Potential, Growth Potential, Niche Markets
Threats = Animal Rights, Poor Quality Products, Low Efficiency

All were discussed in detail under the guidance of the facilitators headed by Prof. Luc D’Haese. The aim of the process was to identify the core problem and what strategies were required to overcome those problems. The core problem identified was Industry Immaturity.

These were the 4 sectors identified as requiring action:

- Product Inconsistency – Production and Processing
- Logistical Distribution – Transport and Distribution
- Confusing Messages to Consumer – Lack of Standards and an uneducated market at all levels of the production chain.
- Weak Institutional Environment – At Governmental level and National and International Association Level.

What is required to address these clearly identified actions?

- Product Inconsistency is dependent on the systems at ostrich farming level supported by adequate processing systems
- Logistical Distribution is dependent on the systems and companies the processors employ. The standards required will be similar to those required in any other meat industry.
- Confusing messages to consumers – this was addressed by the World Ostrich Association establishing industry standards following the collapse of International Ostrich Association collapsed.
- Weak Institutional Environment – Industry immaturity remains the issue here.

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