Transcript Wildlife Ranching – an industry of the future

Wildlife Ranching
- an industry of the future –
WILDLIFE RANCHING
- an industry of the future Brief history.
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Prior to 1652 game in Southern Africa was widespread and could move freely (no fences).
Initially seen as food (introduced livestock did not have to be killed for meat).
Also hunted for sport.
Later seen as:
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Competition to domestic stock for grazing
Disease carriers and reservoirs
Other major factors reducing game numbers
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Rinderpest (reaching Western Cape in 1898)
Anglo Boer war (1899 to 1902)
Fencing
Tsetse and Ngana control (1928 to 1960)
Tb control programmes (1930 …..)
WILDLIFE RANCHING
- an industry of the future Brief history (cont).
• Pres. Paul Kruger
• 1894: Africa’s first game reserve: Pongola
• 1894: Sabi game reserve =KNP
• LEGALIZATION OF PRIVATE OWNERSHIP
• Laws passed in 1991 meant that ownership of wild game was recognized by the state.
• This lead to a boom in game ranching, hunting and game trading.
WILDLIFE RANCHING
- an industry of the future Agriculture, Conservation or Business?
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One of the major challenges for both the industry and government is where does the industry fit best.
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Varied member interests.
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Impacts on all sorts of things:
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Tax,
Road verges,
Drought/fire assistance, etc.
Statutory ‘cost of doing business’.
WILDLIFE RANCHING
- an industry of the future Current global economic trends.
• 2008 crash
• Slow 2 phase recovery(USA/China vs Eurozone)
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USA expected to increase interest rates mid 2015
Most trophy hunters from US
Sub-Saharan Africa’s growth predicted to be 5,4% for 2015
Game Ranch industry far outstripped any of the above
WILDLIFE RANCHING
- an industry of the future Current local economic trends.
• Currency depreciation: Lost >50% over past 3 years,
expected to continue.
• SA is one of “Fragile Five” due to double deficit:
• Fiscal
• Current Account deficit (at record levels).
WILDLIFE RANCHING
- an industry of the future A different ideology regarding game.
• American wildlife culture which is based on the belief that making money out of
wildlife is immoral; South African wildlife culture is based upon sustainable use.
• Due to the value placed on game, the wildlife industry has not only restored wildlife
to the land, but has also enhanced and restored genetic quality of RSA’s wildlife.
• The RSA wildlife industry has grown positively, as a result of the legal trade,
hunting and eco-tourism.
WILDLIFE RANCHING
- an industry of the future Outcome of 2 wildlife ideologies.
• RSA had 3 private game ranches in 1960 with ownership of game and land vested in farmers.
Currently, 28 000 000 ha marginal, uneconomic, semi-desert agricultural land converted into sustainable
land use option.
• Kenya, with similar agricultural industry, banned private ownership in 1977 – their game declined by an
estimated 70%. The most widely accepted estimates for some of the key species:
• 1960 = 20 000 rhinos, currently < 1 000
• 1970 = 150 000 elephants, currently 30 000
• 1970 = 20 000 lions, currently 2 000
WILDLIFE RANCHING
- an industry of the future Alternative land use option.
• Most private game ranches in SA are marginal farms in terms of
land capability classes that have been converted from domestic
stock / crop farms into effective land-use options.
• These farms are not, and never have been conservation land.
WILDLIFE RANCHING
- an industry of the future Scope of the wildlife industry.
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Private Game Ranchers ~ 16.8% of agricultural land
State Protected Areas ~ 6.1% of agricultural land
US$ 1.3 billion plus, contribution to GDP
20 million plus, head of game and 6 million in protected areas
± 14 million head of cattle (with ± 8 million in the commercial sector
and 6 million in the communal areas)
• >20% of red meat produced in the country annually
WILDLIFE RANCHING
- an industry of the future Scope of the Wildlife Industry (continued).
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120k people employed; reward systems 3x higher than conventional stock farmers:
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Average game ranch > 2500ha = semi-extensive
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Out of more than 100 permanent employees on game ranches, ±15 qualify as farm / general workers.
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On average-sized ranch, the staff complement would consist of the following:
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Ranch manager
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Assistant manager
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Secretary / admin officer
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Mechanic
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4 Field rangers
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6 Labourers
WILDLIFE RANCHING
- an industry of the future Agriculture in SA: Mostly marginal conditions.
• South Africa is not well endowed with the basic needs for agriculture
• Low and erratic rainfall,
• High evaporation, and
• Poor/shallow soils (all in general of course).
• 70% of agri land precluded its use for commercial agri crop
production.
• Restrict its use to recreation, semi-extensive game farming,
water supply or aesthetic purposes
• Unsympathetic government
WILDLIFE RANCHING
- an industry of the future Agriculture in SA: Current economic trends.
• Hard to compete internationally
• Cost squeeze
• Commodity prices (import parity)
• Input prices (weakening Rand and inflation)
• Labour unrest and costs
• Normal business practice is to look for the unique
selling point and to exploit the competitive edge
• Movement to game ranching.
WILDLIFE RANCHING
- an industry of the future Market segmentation within the Wildlife Ranching Industry
Hospitality &
Eco-Tourism
Game
Ranchers
Game Meat
Game Meat
Game Meat (Local Consumption &
Export)
Trophy & Corporate Hunting
Recreational Hunting
Safaris & Game Viewing
Game Breeding / Trade
• Hunting contribution:
• Game trading contribution:
• Game Meat Production:
(US$ 762 million) 67%
(US$ 238 million) 28%
>20% of Red Meat per annum
WILDLIFE RANCHING
- an industry of the future Game Ranching in SA: Biodiversity contribution and trends:
• Conservation:
• More game animals in SA today than anytime since 1850
(165 years) = >10 m head owned privately.
• Massive contribution to threatened species:
• Rhino (40% in private hands)
• Sable antelope (90%), *
• buffalo (disease free) (90%) 60 000, and
• roan (>90%) 2 500.
• Converted >28 m ha from marginal agricultural land to
a sustainable green economy.
*Note: only an estimated 40 roan & 800 sable in the Kruger National Park
WILDLIFE RANCHING
- an industry of the future Game Ranching in SA: Economic contribution and trends.
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Ostriches and crocodiles (exports)
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Slaughter 92% of worlds ostriches
SA crocs, unlike Zimbabwe and Zambia do not rely on imported young from the wild in
Mozambique (sustainable utilization?)
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Plains game (incl. rare species and colour morphs).
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1991 -2000:
Phase 1 – plains game
2000 – 20xx:
Phase 2 – Valuable rare species & colour
morphs = game husbandry technologies.
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2015- …… :
Phase 3 – game meat
WILDLIFE RANCHING
- an industry of the future Wildlife Ranching: Transition Required
US$ 762 US$ 171 428
VALUE CHANGES
US$ 952 US$ 84 761
Source: Dr F Cloete, NWU
WILDLIFE RANCHING
- an industry of the future US$ 86
Structural
economic
change
US$ 76
All Species (including
rare game species)
Only Rare Game Species
Millions
US$ 67
US$ 57
US$ 48
US$ 38
US$ 29
US$ 19
US$ 9.5
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: Groenewald & York. 2013. An economic outlook, the wildlife industry. Golden Breeders. May 2013
2012
WILDLIFE RANCHING
- an industry of the future Species
Buffalo
ERR
2005
2006
2007
2005-2012
2006-2012
2007-2012
US$ 69 579
US$ 115 507
US$ 152 103
62.6%
48.7%
42.60%
80076000
RUS$
191
450
70066000
RUS$
667
400
60057000
RUS$
143
350
300
50047000
RUS$
619
250
40038000
RUS$
095
200
30028000
RUS$
571
150
20019000
RUS$
048
100
1009000
RUS$
524
50
Numbers
CPI base year = 2013
Average Price (Real)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
0
2001
R 00
US$
2000
PRICE
TRENDS
Initial investment: capital outlay
Source: Dr F Cloete,
NWU
WILDLIFE RANCHING
- an industry of the future Initial investment: capital outlay
Species
Golden Wildebeest
ERR
2005
2006
2007
2005-2012
2006-2012
2007-2012
US$ 83 810
US$ 117 857
US$ 178 095
98.2%
89.1%
66.5%
R 600
000
US$ 57
143
PRICE
TRENDS
180
160
R 500
000
US$ 47
619
140
US$ 38
095
R 400
000
120
100
US$ 28
571
R 300
000
80
US$ 19
048
R 200
000
60
40
9 524
R US$
100 000
20
US$
R 00
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
CPI base year = 2013
Numbers
Average price (Real)
Source: Dr F Cloete,
NWU
WILDLIFE RANCHING
- an industry of the future Governance Ideology for Sustainable Wildlife use.
• Sustainable use cannot be understood only from a
biological or ecological perspective, such as the harvest
of a specific species over time in isolation. The broader
social, economic, cultural and political dynamics, should
be factored into the equation.
WILDLIFE RANCHING
- an industry of the future Governance recommended for SA.
• Sustainable use dictates a specific State Governance system. Ecoand humanity systems that depend on good governance change
constantly. The governance system must be capable of detecting,
assessing, and apply adaptive management prudently to changes in
public, private, community-based, formal and informal,
environments.
• Applied evidence-based research by academic research agencies
• Adaptive management
WILDLIFE RANCHING
- an industry of the future Green Economy – A matter of human survival.
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(Source: Victor B. 2013. Human impacts on biodiversity. St Xavier’s College,
Palayamkottai)
About 40% of the global
economy is based on biological
products and services.
More than 50% of all
commercial medicines used
today come from nature.
About 80% of the poor people
in developing countries are
dependant on traditional
medicines from nature (WHO).
WILDLIFE RANCHING
- an industry of the future Green Economy – A matter of human survival (Continued).
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Harvesting of wild animals from land and sea provides
protein of > US$ 400 billion annually, supporting > 1 billion
of the Earth’s poorest inhabitants.
(Source: JS Brashares et al., Wildlife decline and social conflict, 2014)
WILDLIFE RANCHING
- an industry of the future The food security imperative.
• Food security
• >20% meat during hunting season
• Exports were almost R400m annually (can import 3 kg beef for
every 1 kg game meat exported
• R2,5 billion p.a. opportunity
• Game meat scheme: Now a WRSA initiative
WILDLIFE RANCHING
- an industry of the future Participation in the Industry Certification Scheme
• Participation in the gazetted certification
system will be open to all wildlife ranching
practitioners and bio-traders.
• Typically this includes: Wildlife Ranching
of South Africa and National Hunting
Associations, etc. with Self-Administration fully employed.
WILDLIFE RANCHING
- an industry of the future Participation in the Industry Certification Scheme (Continued).
• According to WRSA Industry Standards (currently being developed);
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General Game Husbandry: how animals are bred, kept and treated (e.g. medication, feeding and general
translocation practices)
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Harvesting of animals based on acceptable standard operating procedures
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How carcass is handled / processed; WRSA, Vet & VPN Standards
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How meat is further processed / beneficiated; Department of Health and WRSA Standards
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An International Compliant industry standard for game meat (ISO 9601 QA Standard,
ISO 14 000 Environmental Standard and ISO 22 000 Food Standard) approved this week for WRSA
WILDLIFE RANCHING
- an industry of the future ECONOMIC FORECAST
Medium term
Long term
Past
Middle-late
bull market
Earlymiddle bull
market
Bottom
1990
2000-2013
2014 - 2017
Source: Dr F Cloete, NWU
WILDLIFE RANCHING
- an industry of the future Conclusion (Continued)
WRSA believes in a positive future for the industry.
WHY?
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Wildlife is a unique asset – different to most if not all other assets
Wildlife enables one to breed a good investment – boils down to good asset management!
Balance between short term financial gains and long term financial viability
Game Meat Production new growth phase
Institutional Repositioning in progress
Land Reform Pilot Projects
Genetics and Evidence-based Research
Vaccine for Malignant Catarrhal Fever (MCF) ‘Snotsiekte’
CITES & Rhino trade normalization
THANK YOU
WRSA WISHES YOU
A HAPPY AND PROSPEROUS FUTURE
IN THIS GREAT INDUSTRY