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Investment: THE WORLD OF FINANCE arrow BUSINESS PLAN arrow Business plan for farm breeding ostriches
, 24 2014
Business plan for farm breeding ostriches Print

Business plan for farm breeding ostriches


Ostrich or ostrich breeding farm, has long been practiced. Industry has experienced a rebirth in the 80-ies of XX century, while low-fat ostrich meat has been in vogue. Black African ostriches, but only those pets now kept in pens entrepreneurs are able to exist in the northern climate and relatively easy to tolerate the winter - turns out, their immune system vysokoadaptivna. All this has led to what is potentially promising, long-term agri-business a few years ago was in Eastern Europe and Russia.


Today in our country has been in some pretty successful captive breeding ostriches. And they are not limited to poultry production, and engage more and selling meat, eggs, leather and feathers. Even give tours. By the way, many market participants argue that the place for "newbies" there is still quite lacking.

And Africa they do not need

To understand the intricacies of this business, we went to two large and quite successful company. The joint Russian-Moldovan company Anatex Investagro and firm "Russian ostrich" of Serpukhov near Moscow. Anatex Investagro first began to engage in the CIS countries of ostrich breeding in 1996, and "Russian ostrich" appeared on the market in 1999.

- On the cultivation of marketable young at that time there could be no question. There was no reproductive stage and the experience of incubation. In the market of specialized literature on ostrich - "complete calm" and the vacuum in the legislation as an ostrich farm poultry. All this and determined the direction of our activity: we started the development of breeding ostrich - says CEO Anatex Investagro Andrew Ravens. Analysis of the economic situation in the CIS and Eastern Europe has allowed entrepreneurs to shape the future markets for breeding birds. Major addresses were Russia, Ukraine and Romania. And, according to Andrey Voronov, the choice was entirely correct.

Generally speaking, under the "ostrich" market experts clearly distinguish the two segments. This production of meat, skin, and - growing breed poultry, on which directly depends on the market of finished products. Both niches, says Andrei Voronov, not just are not filled, but "pristine." But really promising until you can recognize the growing breed of producers.

According to experts of company "Russian ostrich, a commercial product by live weight of an ostrich is about 40%, and it is much higher than that of cattle, sheep and even poultry. A female ostrich brings to 60 eggs from which hatch in the year 40 chicks. Chicks are gaining market weight by 12-14 months after birth, account for almost 1.5 tons of meat and 50 square meters. m skin. An ostrich meat is very unusual. It is low calorie and low in cholesterol. The optimum age for slaughter of poultry - a year. When cutting a carcass weighing about 120 kg can be obtained up to 40 kg of meat. A kilogram is worth it in Russian rubles, 400-500. For comparison: in Germany, 14-25 euros. In the U.S. wholesale price of ostrich is formed at the level of 12.08 dollars in Australia, 10-14 dollars, 12 euros in Belgium. In Japan, a kilo of meat ostrich pay 50-70 dollars. Retail prices are much higher.

Annual consumption of ostrich meat in Russia does not exceed, according to the manufacturers, 100 tons, and because of its market, including the delivery of all domestic ostrich farms and imports, far from saturation. Potential is the amount of just the Moscow market of 5,000 tons, or, in the carcass young, about 125 thousand. For the growth of so many commercial calves to be 10.9 thousand tribal producers. But today the whole of Russia breeding herd numbers and the 1000 goals. Ostrich leather can be used in the leather and fashion industry. For a broad conclusion on our market such new products with superior performance - ostrich meat and skin, according to Andrey Voronov, requires time and financial resources. However, the game worth the candle.

In the past two years in the country is noticeable growth of interest in the creation of ostrich farms, and most welcome, it provides a medium-sized businesses, and farmers are not single. Alignment as a whole is this: the company that five years ago embarked on the path of the ostrich, are positioned as the tribal economy. Newly same farm commodity preferred direction. What's the difference? Commodity production is easier and breeding in the organizational and economic terms, and certification. To obtain the status of breeding, the farm must operate for at least three years in a hard veterinary and sanitary conditions. The financial impact of commercial farms is faster and this is important, given the market of credit resources, developed in the present moment. "All our clients, we recommend starting with the ostrich business is commodity production, and then, after a few years, we finally decide on the direction of its activities" - advises Andrew Ravens.

Demand for poultry is growing very quickly. "Today we are already struggling to cope with increased volumes, - the expert said. - This situation can not continue indefinitely, and after the saturation of the market supply of breeding material producers to stabilize at quite specific level. The consequences of not hesitate to impact: develop competition, lower prices and so etc. In the meantime, the freedom to maneuver is ".

In the morning - the money in the evening - eggs?

Breeding of ostriches - just profitability. And the more manufacturers on a farm, the business profitable. Total cost of cultivation of a bird to slaughter weight of 100 kilograms - about 140 euros. They consist of the following articles: subsistence young - 25 euros; feed - 68 euros; other costs of production nature - 37,2 euro (40%), extra - for dressing skins (one head) - 10 euros. Plus the cost of outside work is associated with any business.

Now the income statement. Profits generated from the sale of meat and skin. In 2003, the wholesale price per kilogram of meat was about 6 euros per tanned hides (about 1.3 square meters. M) - 60 euros. On average, from ostrich to slaughter weight of 100 kg can be obtained almost 35 kg of pure meat. Thus, total revenue is 35 x 6 + 60 = 270 euros.

Profit before tax - 130 euro, product profitability (the ratio of profits to costs) 93%! Return on sales (the ratio of profit to revenue) - 48%. This high level is due, according to Andrey Voronov, so that the prices of ostrich products are added is not taking into account the cost of production, normal (acceptable) level of profitability and competition, and based on dictates of direct selling prices of the manufacturer. Ostrich - perhaps the only area where it is still possible.

Without waste

Ostrich was born in South Africa in the second half of the XIX century and soon spread rapidly throughout the world. Bred birds, mostly to appease fractious world of fashion. Boa of ostrich feathers adorned the shoulders of socialite and frivolous suits Stars "Moulin Rouge"; damsels at the ball, coyly hiding behind their fans lush, fed false signals to its admirers: "You are to me indifferent." Accidents ostriches could fall victim to an insatiable beauty. In 1840 in South Africa have taken out 1,000 kg of ostrich feathers, in 1910 - already 370 thousand pounds, and if ostriches do not have to breed in captivity, they would have now been exterminated. Already in the first decade of the twentieth century there were more than a million birds giants. In Russia, African ostriches first introduced to the end of the XIX century, Baron Frederick Edward Pfalz-Fein - in his steppe estate Askania Nova in the Tauride province. Only a few decades, and enterprising farmers have realized that this bird - the golden. Ostrich is not only paraded or pluck to stick a colored feathers in the cap coquettes. It turned out that it actually can be considered "the cow in the feathers," as some call haughty bird strausovody. And this "cow" does not suffer from any FMD or BSE, which scared all of humanity today. Industry has experienced a rebirth in the 80-ies of XX century. In Europe in the last 10 years there is a real ostrich boom. People, concerned about his health began to count calories and cholesterol, and it was found that the most useful diet is meat - ostrich. Birds started to breed for slaughter. However, neither turned away and fashion: ostrich skin is considered as one of the most luxurious and put on a par with leather crocodile and a snake from her sewing bags, purses, shoes. From the huge egg weighing up to six kilograms of roast can be a giant omelette, and paint the shell and profitable to sell as a souvenir. Feathers still adorn the ladies. Mystic, Dadaist, architect, astrologer, couturier Paco Rabanne creates clothing including the fluorescent leather, ostrich feathers. "Chanel" offers from ostrich feathers ... skirt. Unique therapeutic properties has ostrich fat. From it produces oil, which is already used by thousands of years for cosmetic purposes. We study the blood, marrow, corneas birds, which presumably can be used to treat various human diseases. Production of ostrich practically - wasteless. And the demand for it increases every year. Now the total herd of ostriches in the world - 4 million.

 
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