Ratite production as an agricultural enterprise

• Published in: The Veterinary clinics of North America. Food animal practice Vol. 14; no. 3; p. 373
• Main Authors: Gillespie, J M, Schupp, A R
• Format: Journal Article
• Language: English
• Published: United States 01-11-1998
• Subjects: Animal Husbandry - economics; Animals; Dromaiidae; North America; Struthioniformes; North America
• ISSN: 0749-0720
• DOI: 10.1016/S0749-0720(15)30226-7

The ratite industry remains in the market introduction stage of evolution; basic information on markets and production is limited. It is uncertain when, or perhaps whether, either the ostrich or emu industries will progress to the market growth stage. Until significant expansion occurs, ratite operations are likely to be faced with low or even nonexistant profits. It is the authors' observation that the ostrich industry is making slow but significant progress toward introducing products into potential growth markets. The fact that ostrich products were in demand prior to the ostrich being introduced into North America has helped the industry. The future of the emu industry appears to be much less certain. In the authors' opinion, in order for the emu industry to become profitable and grow, significant promotion of emu meat and immediate resolution of the value of the oil must be achieved. Meat sales alone will not carry emu production as a profitable commercial enterprise. Veterinarians can derive significant conclusions from this information. Currently, ratite production is composed of firms generating losses or minimal profits. South African producers are receiving approximately the same amount for a slaughter ostrich as North American producers. It is unlikely that North American ostrich prices will increase significantly. Prices of ostrich breeders of $2,000 to $4,000 per pair and $400 to $450 for slaughter birds are likely to remain the same for some time. Given that world demand has increased at a slower rate than supply, prices may decrease further. Breeder and slaughter birds will continue to require significant veterinary care; however, the producer will be forced to perform more farm treatments, given the negligible margins. Based on the differences in efficiency of existing operations, there are ample opportunities for veterinarians and extension services to assist producers. Vertical coordination in the ratite industry may evolve slowly in the future, especially in the arid regions of the country; however, economies of size in ratite slaughter are likely to remain uncaptured in the short run, limiting the rate at which vertical coordination evolves. If significant opportunities develop for veterinarians in vertically integrated ratite firms, the emphasis, as with other intensive livestock operations, will be preventative rather than therapeutic medicine, and will involve the integration of nutrition, management, genetics, and the control of disease.