May 11
25
Ostrich Farming Feasibility Study
Before starting ostrich farming or any other business, it is wise to carry out a Feasibility Study. The Feasibility Study provides an analysis and evaluation of a proposed project to determine if:
- The project is technically feasible?
- The project is feasible within the estimated cost?
- Will the project be profitable?
Ostrich Farming and Industry Strategic Analysis discussed the meeting where attendees from 12 countries and 5 continents representing all stages of ostrich production, processing, distribution and marketing came together to analyze why the industry was stalling in development. The two day session illustrated how each sector is interdependent on the other as outlined in Defining the Ostrich Farming Value Chain and Sources of Ostrich Farming Revenue. At one point the chairman of the South African Ostrich Producer’s Association, a producer himself, made the following statement:
“The message that I am getting from you ALL is that I am not providing you with the right product”
The 4 ostrich steaks in the picture came from the same retail pack. Note the significant variability in size, shape and colour. The meat colour is a determined by the diet fed.
Technical feasibility includes such things as nutrition, management and genetics of the birds at farming level to enable the production to be cost effective and producing marketable products. The processing includes transport of birds to slaughter without damage, slaughter facilities, meat processing and all to be achieved cost effectively. There is sufficient evidence to prove that the right systems do now exist if implemented correctly provided that technology is available in your area of operation.
Costing the project accurately is essential and where many have fallen short. Critical mass also has a major role in controlling costs. Costs come down when volume increases as a result of volume of scale.
Will the project be profitable? Over the years it was felt that ostrich cannot be slaughtered at less than 365 days – and more like 425 days. This was because the systems of rearing used were outdated and resulted in low meat yields and all too often the meat was of poor and variable quality as discussed above. We now know that the birds can be slaughter ready in half that time. Additional benefit of rearing in the shorter period of time is a more consistent meat of greater yield. This improves the economics of production significantly. To achieve these improvements does require improved technical inputs than has historically been practiced on farms.
The SWOT analysis is a component of any feasibility study. A SWOT analysis is an analysis that identifies the Strengths, Weaknesses, Opportunities and Threats to the business. One benefit of generating a full SWOT analysis is to ensure the Ostrich Farming Business Plan understands not only the strengths and opportunities, but also the weaknesses and potential threats and how to put in systems to overcome those weaknesses and threats.
Ostrich farming has the potential to be extremely profitable with the right technology and adequate financial backing.
