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.
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.
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.