Exotics: A correction, not a downturn
Johannesburg, Gauteng, SA – Ostrich has been stable this year, Nile crocodile has been more challenging. There is still a demand in Europe for the top ostrich grades and top crocodile grades.
However, the demand for crocodile in Europe has slowed down. This comes after a couple of years of high demand for Himalayan niloticus croc leather – a tanning process where the skin is not bleached, leaving the natural pigment colours to contrast against the white bellies. It was hugely popular, but now everyone is offering it, so demand has slackened. Current demand is more about normalising the curve than a drop in demand, but it feels like hitting a wall. The major brands in Europe, with the exception of very few, have seen their share prices plummet after the last few months of poor trading.
Asian demand follows Europe, but the correction isn’t as marked there yet, however we will see what the demand is after the Chinese New Year.
Quality is always an issue in Europe. American alligator skins are the main competition, and South African farmers need constantly to improve their standards. An issue at the moment in South Africa is ‘double scale’, which is a condition caused by external factors, not a genetic condition. A major cause is stress. Other contributing factors are temperature extremes and erratic feeding practices.
Overall, business is always challenging, but essentially satisfactory.
