Establishing Ostrich Farming Revenue Sources
Without established or emerging revenue sources, ostrich farming, as any other business, would cease to exist. The first source of revenue should be established before the venture is undertaken, and then secondary sources of revenue can be sought out as by products become available, or as your own production and processing venture yield extra resources.
It remains a challenge in any new company to generate cash flow throughout the producing and processing phases to make the business not only viable, but successful.
In ostrich farming, the first source of revenue in the early 1990's was seen to be providing the market with breeding ostriches, for emerging ostrich farming ventures to buy. This only remains profitable as a main source of revenue as long as the market is large enough to absorb all the stocks you have available, and that at a profitable price.
To keep up with the new developments in agriculture and technology, farmers have had to branch out into additional revenue sources, and often these new opportunities have become the driving force of their enterprises, and the main source of revenue of selling breeding ostriches has become an additional but secondary revenue source.
Let us look at the different areas of revenue that can be generated by an ostrich farming enterprise.
Revenue firstly comes from one or all of the products coming solely from the ostriches:
Ostrich meat. This can be in the form of fresh meat, frozen meat, biltong, value added meal, offal and bone meal.
Ostrich feathers. Think of single feathers, fashion and utility such as dusters.
Ostrich skins. Sold fresh to a tannery, or as finished leather or even manufactured accessories such as bags, clothing, wallets, purses and belts.
Ostrich eggs. Can be sold as fertilized eggs for incubation, or infertile eggs can be blown and sold empty. Egg shells are sought after by artists and those in the craft industries for carving. Crushed egg shells as a calcium source in feed.
Ostrich fat. can be refined oil for feed, pharmaceuticals and cosmetics.
Live ostriches. Birds ready for slaughter, the sale of chicks at various ages to feedlots or new enterprises, breeders.
Tourism. You can allow groups to visit your farm for educational and sight-seeing tours. Incorporate an ostrich craft shop for extra sales or product and ostrich processed meats.
Additional sources of income can be obtained by providing services.
- Incubate eggs for small-scale farmers that do not own an incubator
- Provide expertise to start-up ventures
- Slaughter / process birds and /or products for small-scale farmers
- Provide transportation for small-scale farmers
Whichever of the many available fields you decide to branch into, remember to market and price each area according to market values. If you are producing your own feed, value the feed at market value, and not at cost. Even for the use of only your own ostriches, this should be calculated at market value. Rather show the extra profits as being those of the secondary revenue source of providing feed, than to increase the profit yield of the finished ostriches.
Remember that although each of these areas can be seen as an independent area of revenue gain in your ostrich farming enterprise, they are all interdependent on another, and will build the value and success of your company, if each area is managed profitably.
For more information on ostrich farming, check out this ebook entitled "How to Start An Ostrich Farm".
Alan B. Stables is a freelance writer on alternative agriculture, has organized the World Ostrich Congress in Madrid, Spain in 2005 and has also been a guest speaker in Brazil, China, Egypt, Italy, Latvia and Spain, on how to market ostrich produce for maximum returns. His leaflet "The Information Guide on How To Remove, Store, Transport and Grade Your Ostrich Skins" has become an Ostrich Industry Standard that has been translated and used in many countries today. Alan is also a founding member of the World Ostrich Association.
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