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OSTRI-BEE PRINCIPLES

22 April 2010

    OSTRI-BEE PRINCIPLES:
  • OSTRI-BEE is a sincere endeavour of the South African ostrich industry to be instrumental in the reaching of the goals of Broad-based Black Economic Empowerment (BBBEE) as set by government.
  • In order to comply with the AgriBEE guidelines, the South African Ostrich Business Chamber (SAOBC) developed a unique OSTRI-BEE model that focuses on the entire value chain derived from this rather unusual bird.
  • Due to the specialised nature of the ostrich industry, and to minimise risk for new participants, it is important to distinguish between two entry levels: producer and processor.
  • The ostrich industry encourages participation in the entire value chain. Hereby we believe that:
    • New participants will be able to increase their income and raise their standard of living.
    • Their ability to access capital and natural resources (land) will be enhanced.
    • The number of Black managers and specialists will be increased.
  • There are, however, definite risks and certain challenges that new entrants inevitably have to face:
    • Access to capital: It takes 30 months for a new entrant to receive the first income.
    • Access to land: One ostrich requires no less than 22,8 hectares of natural veld.
    • Disease control: Ostrich chicks are born without an immune system. Therefore, specialised care is essential.
  • OSTRI-BEE focuses on development and skills-training:
    • The ostrich industry plays an active part in the training of artisans at ostrich abattoirs and ostrich tanneries.
    • Structured mentorship programmes exist on both farm and processor levels.
    • Clear targets have been set for staff development.
    • Various development programmes have been implemented.
    OSTRI-BEE PROJECTS
    Western Cape
  • Klein Karoo Agri Business Centre
    (Klein Karoo Region)
    • KLEIN KAROO International Ltd (KKI) is the sponsor of the Klein Karoo Agri Business Centre (KKABC).
    • The aim of the KKABC is to advise new entrants on their business plans and to assist them with funding applications.
    • 286 new jobs have already been created and the aim is to reach 440 new jobs.
    • Some of the KKABC’s successful projects:
      A manufacturing unit for ostrich leather items sold at the Klein Karoo Ostrich Boutique in Oudtshoorn
    • At De Hoop (10 km outside Oudtshoorn) a group of previously disadvantaged rural women manufactures ostrich feather and ostrich egg shell products. They ship two con- tainers with products to Germany every six months.
    • The Klein Karoo Feather Sorting Project in Dysselsdorp provides jobs for 100 people and is run independently by its members.
    • KLEIN KAROO International supplies the ostrich feathers, which are sorted and sold back to KKI.
    • Various other projects are being estab-lished at the ten agricultural societies in the Klein Karoo region.
    • Study grants are provided to ten students from previously disadvantaged communities. This enables them to enter their first year of degree studies at the Free State University.
  • SCOT: Southern Cape Ostrich Tanning - (Member of the Mosstrich Group, Mossel Bay)
    • SCOT has established joint ventures with Transnet and Eskom.
    • SCOT provides ostrich leather product manufacturing training to unemployed women in the Mossel Bay area and sells the products via SCOT’s marketing channels.
    • On occasion SCOT also donates leather for worthy developmental projects.
  • Mosstrich BEE Trust (Mossel bay)
    • Mosstrich is owned by 180 ostrich producers. The company has implemented a project whereby 6 000 preferential shares, representing 6.5% of the issued shares capital, were given to 250 employees.
    • The employees share in the company profits and a total of R1,815 million was paid out to the employees in the form of dividends.
    • The next step is to extend this programme to farm labourers working on some of the farms of the ostrich producers.
    Eastern Cape
  • Integrated Meat Processors of the Eastern Cape (IMPEC)
    • Integrated Meat Processors of the Eastern Cape (IMPEC) is fully BEE-compliant
    • IMPEC facilitates an integrated project to contribute to the economic empowerment of previously disadvantaged individuals. Through the Salem Project beneficiaries are included in the entire value chain - from the egg to the end-products.
    • The Salem Project also focuses on community development. More than 100 small-scale rural black farmers have received proper business training to ensure sustainability. They have individual ownership of the 7 000 ostrich chicks raised annually for slaughter in Grahamstown.
    Northern Cape
  • (Kuruman)
    • The Kuruman Project is a Black-owned enterprise comprising 30 members who are involved in ostrich production.
    • The SAOBC’s ostrich production training booklet is used extensively by the members of this group.
    ALL OSTRICH PRODUCTION AREAS: COUNTRY-WIDE
    • Donating ostrich chicks to them. The producers then assist with raising the chicks and obtaining feed.
    • After the ostriches have reached maturity (slaughter age), the producers buy the birds from their workers.
    • Mentorship programmes exist on numerous farms
    • There are also ostrich producers who have founded co-operatives for the benefit of their workers who are now also shareholders.
    OSTRI-BEE QUICK FACTS
    • BEE Expenditure: R12 Million per year.
    • BEE Active Farms: 600 in Eastern, Western, Northern and Southern Cape.
    • BEE Beneficiaries: 15 000 (Direct and indirect)
    • The SAOBC commissioned the publication of The Ostrich Farm – How to Get Started. This booklet is given free of charge to new small-scale ostrich farmers.
    OSTRI-BEE is sincere about growing people, teaching them new skills and developing their potential - taking hands to form new links in the value chain of the ostrich industry in South Africa.

    Source: South African Ostrich Business Chamber

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