Ostrich: ‘Stable to positive’ – the good days continue
Mossel Bay, W. Cape, SA – We are now nearly 5 years down the line, since the KKI and Mosstrich/SCOT merger. The new name Cape Karoo International (CKI) is now well known among all international and local buyers of ostrich leather. Our clients across the globe also have switched now to “CKI” as the new brand, understanding and realizing that our ostrich leather tanneries in Oudtshoorn and Mossel Bay both produce high quality ostrich leather, under the same brand.
Sometimes you find an “old buyer” still referring to “Klein Karoo” or “SCOT”, but in practical terms all communication, invoices and agreements only refer to “CKI”.
One must bear in mind that we actually only produce a raw material for the manufacturers of leather goods. Our name or “brand” is nowhere visible on a Justin ostrich leather cowboy boot, or a Hermes or Louis Vuitton handbag or an Anderson Bean ostrich leather belt.
These clients want to have long term relationships with us as a reliable, affordable, and high-quality supplier of ostrich leather, in different finishes and different colours. And that is exactly how they see CKI (as continuation of the long history of KKI and SCOT as suppliers of quality ostrich leather).
The market demand for ostrich leather goods is stable to positive. The high-end brands in Europe are doing well with their ostrich products, and the ostrich Western ware in the USA and Mexico is also healthy and alive.
We have recovered from fairly low ostrich production levels a few years ago, mainly due to severe drought conditions in the Klein Karoo and Eastern Cape. During the past year, the agricultural conditions in these areas improved significantly, and total realisation for farmers per slaughter bird improved also significantly. CKI is therefore not far away from a number of ca. 130 000 slaughter birds per annum. This is at present a healthy level for us in terms of the balancing between throughput of the abattoirs and tanneries on the one hand, and market demand for ostrich leather, feathers and meat on the other hand.
Overall, we are positive about the new ostrich season starting in August, and believe that ostrich farmers and our processing units will play their part in sustaining jobs, contributing to the wellbeing of owners and employees in the industry, and creating invaluable foreign currency for our country.
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