OSTRICH NUTRITION BULLETIN #73
From Daryl Holle
Blue Mountain Ostrich Feeds
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TOPICS For November 5, 2001

1. Stopping The Ostrich Industry "Downward Spiral" In Your Country!

By Daryl Holle of Blue Mountain Ostrich Feeds

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STOPPING THE OSTRICH INDUSTRY "DOWNWARD SPIRAL" IN YOUR COUNTRY!

Since the Ostrich Nutrition Bulletin is sent to subscribers in almost every country of the world these days, I thought I would share some thoughts and observations that continually happen from producer to producer and country to country. The pattern is always the same and it is most frustrating--not only to me but to all Ostrich producers around the world.

With the today's wonderment of instant email communications, it probably is a good time to discuss the "Downward Spiral" that I see in the Ostrich Industry that is continually being developed country by country. Maybe by stating the facts as I know them to be, some newer Ostrich countries will recognize the symptoms and take steps to side-step them before it is also too late for them. Experience is always the best teacher, and experience in the Ostrich industry says that the industry in any country MUST PROGRESS at a constant rate or it will fail in the very same manner as many countries already have before it.

The pattern of what I call "The Downward Spiral" is most recognizable. The pattern is almost always the same. It starts with lots of hopes and dreams that can be realized if "progressive" steps are taken to advance the industry. These hopes and dreams are usually squelched when the local industry in a country begins taking "regressive" steps backwards in an effort to "economize" and those steps are usually the beginning of the END for most individual country Ostrich Industries. It happened it the United States and was most predictable--and since then is happening over and over again--country by country.

The GOOD NEWS is that the "Downward Spiral" is clearly preventable and does not need to happen. However, trying to convince people of that in a time when their local industry is in total turmoil is next to impossible unless the people are willing to pay attention to what makes sense in a progressive livestock industry and quickly begin moving in a "progressive" direction.

What is "The Downward Spiral"?

The Downward Spiral is a complicated set of circumstances that take place over a period of time within the local Ostrich Industry. Lots of it has to do with Human Nature but most of it has to do with Economics and the producers ability to raise a "Economically Viable" bird. If the producer is not raising an Economically Viable bird for the processor, and a good quality meat, hide, and oil product for the consumer, things rapidly begin going downhill. This forces most everything in the local industry to continue towards a "regressive" path downward. Finally, the local industry comes to a close (for the most part) as the regressive movement can only go down so far before it ENDS.

What is the main cause of "The Downward Spiral"?

Using proper or improper Animal Nutrition on Ostrich quickly determines whether the local industry is going to be "progressive" or "regressive". Allow me to demonstrate as best I can a scenario of why Nutrition plays such an important role in the outcome of the local Ostrich Industry:

Scenario:

Step 1:
A producer purchases and imports some Breeding Ostrich (adults) from another country. Most times these Breeder birds have been fed inadequate diets and even though the birds may look very nice, their productive capabilities have been damaged by poor quality feed and feeding practices.

Result:
The new producer that imported these birds immediately begins feeding these birds some local feed diet that again has not been proven for good production in Ostrich. The production results are much less than planned, but usually the first year or two a few chicks will be raised.

Step 2:
The new producer tries to be most economical with feeding the few chicks that he is raising for slaughter in order to maximize his profits (he thinks). This results is low meat yields and lower quality meat and many times lower quality skins.

Result:
The processor buying these slaughter birds from the producer has fixed costs of processing--and pretty much fixed costs for marketing and distribution of the meat and skins. So, the lower yields of meat and lower qualities of the end products from the bird result in a lower price being paid to the producer raising and feeding the birds. There is NO CHOICE in the matter for the processor--he can only pay for what he is given.

Step 3:
As the processor prices go down, as the end product yield and quality go down, the farmer/producer is forced to think of ways to lower his production costs of raising the birds. Since feed costs are usually 75-80% of the production costs, the first place the producer looks to "economize" is to lower his feed costs. (First major "regressive" move).

Result:
Because of the regressive feeding program fed to the slaughter birds, now the end-product yield and quality is going down even farther. This is usually when very low meat yields per bird begin showing up and also multi-colored and "off-tasting" meat start showing up in some instances. The producer may have lowered his feed costs but the feed is now even less of a productive feed and has lowered the "economic viability" of the bird being furnished the processor. (Regression again)

Step 4:
Because of what the farmer/producer did in Step 3, the processor now is forced to lower the price again to the producer as he is now getting Chef/consumer complaints on meat quality and his production costs per unit of product have significantly increased due to the lower yields experienced on the birds furnished to him (Regression again).

Note: The cycle of Step 3 and Step 4 continue to repeat several times with each time regressing a little farther downward both in quality of birds and processor prices paid for those birds.

Result:
It finally comes to a point that the farmer/producer can not lower his feed costs anymore. He is feeding the birds as "cheaply" as possible and the price paid to him by the processor is not enough to make a profit and is usually a loss. At the same time, the producer also started feeding the Breeder birds a lower cost and non-productive feed which has now resulted in chronic chick hatching and chick rearing problems. This total regressive pattern has now come to a point that not only can the producer not provide the processor with a economically viable slaughter bird, but the producer is not raising any chicks from his Breeder birds either.

END RESULT:
The local Ostrich industry is at its end! The farmer/producer is totally frustrated, the processor is totally frustrated, and nobody is able to produce, process, market or distribute an economically viable bird that consumers are happy with. As the Ostrich Chef Schmeider has often said:

Chef Schmeider quote:
"You can disappoint a Chef/consumer once, you may be able to do it twice, but if it happens a third time--you will never have another opportunity".

NEXT CYCLE:
The local farmer/producer then wants out of the bird business and sometimes sells his Breeder birds, usually to a import/export broker, and the birds are again shipped to a NEW country that starts the "Downward Spiral" all over again.

How to STOP the Downward Spiral Cycle:

1. Before buying and importing any Breeder birds from another country, research the QUALITY FEED availability in your country FIRST. Make sure that you are able to feed these new Breeder birds with the best nutritional technology available. Find out what that technology is and study it intensely--your success in the Ostrich industry depends on it. DO NOT buy the Breeder birds until you are assured without a doubt that you can feed them a correct diet that is designed for PRODUCTION. Work only with feed companies that have a proven history of good Ostrich production and then PROGRESS with them to make it even better. There is no doubt that working with a good feed company that has technologically proven production products will be more expensive as the costs of putting together those types of feed products cost more, but there really is no other good choice or alternative as the success of your Ostrich operation is most crucial. Measuring the cost of feed by it's "cost per pound or kilogram" has NOTHING to do with raising an Economically Viable bird. Measuring the cost of feed by it's "cost per unit produced" has EVERYTHING to do with raising an Economically Viable bird.

It has been our experience that most all of the newer countries starting into the Ostrich industry demonstrate very similiar type problems when purchasing feed for their birds:

a. Farmers begin feeding a feed made by the local feed company who has no experience whatsoever in formulating productive ostrich feeds and sometimes put together ingredients based on other animal species or using the limited data that is available which is now clearly proven to be most inadequate for Ostrich.

b. Farmers follow the advice of well-known, world-wide, major feed companies that they have used in feeding other livestock species trusting that this company will understand how to feed Ostrich for good production. This has not been working well as the feed formulations put out by some of these companies vary greatly from country to country causing severe inconsistencies in Ostrich production.

c. Most countries have not understood that the feed formulations they have available (and are using) are exceedly POOR until it is too late. By the time it is obvious that they have been using a severely nutrient deficient feed, the farmers are already in a financial crisis, birds are not producing, chicks are not surviving and his operation is to an end.

2. Since most birds available for export have been on some very questionable feeding programs in the previous country, start a "progressive" feeding program immediately on these Breeder birds. Then, plan on culling out the lower producing breeder birds with your own replacement chicks (new breeder stock) and genetically select the best progeny with the highest production potential. Your original Breeder birds may have been damaged with poor nutritional practices before you received them--these damaged birds will never be able to produce to the production levels you need to operate a viable Ostrich operation. Plan on replacing them with your own well-fed birds that you have raised and fed properly.

3. From day one, feed your chicks with the best nutritional technology available in your country. NEVER try to cut feed costs by feeding a cheaper and lower quality feed that may end up cutting down the slaughter bird yield and quality. Your slaughter bird meat and skin yields should be going UP each year and your number of chicks hatched and raised should also be going UP each year. Work on your feeding management and farm management to INCREASE the fertility, hatchability and overall output of your operation. Find a proven feed company that has modern "production feeding" technology and work closely with them to improve and PROGRESS. Don't follow the temptation to REGRESS and participate in the Downward Spiral.

4. Work steadily to give your processor a better bird each year--not a worse bird each year. Encourage your processor to buy your birds with a price based on "pounds of boneless meat yield" per bird. That way the processor gets what he paid for and so do YOU. That will give the farmer/producer automatic encouragement to produce the best quality bird with the highest meat yield and the best quality meat will accompany that effort which will in turn help the processor again to sell and distribute his product to the consumer.

SUMMARY:

The goal of any livestock industry is to PROGRESS, not REGRESS! Far too often, the Ostrich industry in any given country is caught up in a regression mode that it can't seem to get itself out of. The solution to that problem is to "break the cycle" and change from the "Downward Spiral" direction to an "Upward Spiral" direction. Regressing with participation in the Downward Spiral always brings an Ostrich industry to an end as has been proven in many countries already. Progressing with participation in the Upward Spiral will result in a viable bird and a viable Ostrich industry in your country. The most intelligent change any farmer/producer in any country can do is begin working closely with the country processors to PROGRESS by producing, processing, marketing and distributing a HIGH QUALITY BIRD that just continues to get better with every new hatching season. Don't ever be tempted to "backup", only go "forward". The nutritional technology is there to help make this all happen in the right way--USE IT!

Blue Mountain has recognized this Downward Spiral pattern state by state, and country by country. For this reason, we have set up an infrastructure to help all countries to gain access to well-researched "production" Ostrich formulations. Let us know how we can help you STOP the Downward Spiral in your country!

I personally encourage all new countries now working in the Ostrich production industry to NOT go the way many other countries have gone. It doesn't have to be that way at all--learn from others and prevent those same mistakes from happening again in your country.

‘Til Next Time

Last modified on Monday, May 06, 2002