Newsletter No. 22 – January 2005 Item 3

On the subject of development of our Association, last month we discussed the fact that the competition for our industry lies not within each other, but rather the other specie supplying the meat and leather markets.   One member of the South African industry hired a professional Market Research company to assess the meat marketing opportunities in Europe.  The clear message that came back was their opinion that the industry had made a very big mistake when it opened up from 1994.  Meat was treated as a commodity and sold via traders.  The very low volume of current production operating in a market place of increasing globalisation, has made it most difficult for any single operation to make the transition from breeder market to commercial production.

A professional Market Research company hired by SUSTA (Southern United States Trade Association – http://www.susta.org) to do market research for the US ratite industry produced a report in 1997.  A quote from the summary of that report:

quote:
6.2 Recommendations to the Ratite Industry:

6.2.1 Overall

– Be more ORGANIZED generally in the USA before it expects too much effect promoting exports.

– Bring down costs for both Ostrich leather and Ratite Meat through undertaking research:

* into feeding and rearing regimes
* into improved breeding methods
* ways to improve meat yields and egg fertility

– Combine together to establish and set QUALITY STANDARDS

– Conduct more research into the effectiveness of Emu Oil

– Participate and exhibit in relevant trade shows end quote

This document was discussing all Ratites, but the principles apply to each specie as each have their own unique qualities and I am sure all are agreed must not be marketed together.  However, while our industries are developing there are similarities that need to be understood in the market place to ensure each specie can take their individual place in the market place.

So, what is the solution?

In their ongoing determination to support the industry and understanding of the industry, your directors and Blue Mountain have been discussing solutions.  They believe that a commercial company be formed that is affiliated to the WOA to undertake the Marketing of the industry products on a global scale.   At the same time this company will also fund the Research and Development the industry needs to enable the Ostrich Industry to compete with the other protein producing agri-processing industries.

The suggested name for this company is ‘World Ostrich Marketing, Research and Development Company’ (WOMRAD)

This global company would invite participants from all around the world to invest in the infrastructure required to market their products on an international scale.  This company would have the benefits of economies of scale and the resources to identify and develop new markets.  All the suppliers from wherever in the world they are operating would receive the same price for their produce.  In addition all suppliers would benefit directly from the results of the research and development, training and many other areas of support.

Blue Mountain and your directors will continue to work on this idea in an effort to guide the industry in the right direction and are discussing it in detail to see if such a commercial enterprise could be dovetailed into the WOA whilst retaining the principals of this organisation.    .

In the interim, the directors invite everyone to give some thought to this idea and consider whether they think their own business could benefit from belonging to such an enterprise.  The basis of the proposal is outlined in The Blue Mountain “Review of 2004“.