A Brief History of the Ostrich Industry

The Ostrich industry in the United States probably started when feathers were in demand and the first ostriches were imported from Africa in the late 1880’s. The industry rose and fell when the fashion demand for feathers waned. A brief rebirth occurred in the late 1930’s before falling once again. Almost a hundred years after the first ostrich farms appeared in America, the industry was again reborn in the very early 1980’s when an American embargo interrupted the importation of Ostrich leather and disrupted the American leather industry. As a small American flock was being grown and processed, it was discovered that Ostriches produce red meat that mimics beef, but with significantly lower fat and cholesterol. As Americans were becoming more health conscious and aware of the importance of a healthy diet, an expected demand for such a healthy meat became the driving force of the industry in addition to the leather.

The mid 1980’s when “The New Alternative Agriculture” was the mantra.

The ostrich breeder market was a crazy place back then. Many individuals invested in ostrich without ever seeing them. Brokers got into the business of buying and selling ostrich without ever taking possession of a single bird. Investment packages in ostriches and their potential production were being marketed without verification. Investors eagerly poured funds into such investments and prices climbed to unreal levels.

An Egg for Several Hundred Dollars?

The market for ostriches climbed rapidly with breeder pairs priced in the tens-of-thousands of dollars. Single eggs were being sold for several hundred dollars each; with no guarantee the egg would even hatch. With such demand, eggs and chicks were being smuggled into the country by unscrupulous dealers looking to cash in on the frenzy. Several such individuals were caught, arrested, and prosecuted by the authorities. Scammers popped up around the country taking deposits on non-existent birds. The industry had been infiltrated by fraudulent scam artists who often sold investment packages of non-existent ostriches to unsuspecting individuals seeking to enter the industry.

A Fragile Foundation

All of this occurred because of promised returns and production levels that never materialized. Although a projected marketplace that would have meat buyers flocking to the door was not without a foundation, the reality was that only a few ranchers were actually sending birds to be processed at the time. The demand from those seeking to invest or buy breeding stock was simply too great, and most ostriches were sold at higher prices in the breeders’ market rather than at lower prices for processing. This left the commercial processing market without a supply of ready and available birds. In general, the meat industry operates economically on volume and such a volume of birds for processing was not going to happen in a frenzied breeder market. A few attempts were made to create a customer base by a few hardy souls that ventured into starting up processing facilities, but they failed under a mountain of debt. Moreover, there were few standards and little infrastructure in place for the distribution of ostrich products at the time.

A Hard Landing

When the industry fell in the late 1990’s, it fell really hard. Although many bad actors contributed to the collapse, they were not entirely to blame. During the 1990’s, the USDA changed importation regulations, causing an immediate industry overload by increasing the numbers of eggs and live ostriches that could be brought into the United States through USDA approved quarantine facilities. This contributed to a great rise in ostrich numbers in a short amount of time creating an oversupply in the market. A perfect storm continued to build when South Africa enacted policy changes that had adverse effects on the previously stable world-wide price for Ostrich Leather as well.

Take The Money and Run

Brokers and marketers disappeared quickly. Small brokers imitating ranchers because they actually had birds in their possession were hit first. There was little demand for the birds they had been “flipping” at higher prices and such flippers were stuck with birds they could no longer sell for a profit. As the market prices for ostriches continued to tumble, the little ranchers that started and invested with the best of intentions sold their birds off very cheaply which had a snowball effect of driving prices down further and faster. There were instances where ostriches were given away for free if someone would just pick them up. As the dust settled from the collapse, some unscrupulous individuals found themselves defending civil and criminal litigation due to allegations of fraud, smuggling, and violation of securities laws.

Rising from the ashes

By the early 2000’s, most of the American ostrich industry was gone. Hundreds of startup entrepreneurs had lost their bets as early adopters, and millions of dollars of startup capital evaporated.     The American Ostrich Association (AOA) had invested twenty years of research and policy advocacy to promote ostrich production in the United States, but profitable levels of farm productivity were never achieved. The “holy Grail” of ostrich production was the expectation that Intensive farming practice would (eventually) achieve high levels of productivity, as with domestic Galliformes such as chickens and turkeys. The error in this thinking was fundamental. Ostrich are not domestic Galliformes, they’re an undomesticated species of “bird like” ratites that share genomics with both mammals and birds. For example, Ostriches share the same ANP32 genome structure that inhibits Avian Influenza replication in mammals. Ironically, there is a controversial initiative to mimic this genomic resistance by editing the chicken ANP32 gene and creating “genetically modified” poultry that has this innate resistance to highly pathogenic avian influenza.

Sentiment regarding intensive farming, captive animal welfare and ecological stewardship is creating a paradigm shift in farm husbandry. US consumers are demanding sustainable, extensive farm practices to replace intensive/factory farming techniques. Ostrich farming represents a new poultry farming paradigm that is in-line with consumer demands.

Collapse of the US ostrich industry left a few struggling producers to supply the domestic market for ostrich meat and pet food by-products. Our core mission at the American Ostrich Association is to promote the industry through education, collaboration, and stewardship. We believe that the success of our members is positively influenced by the growth of a cohesive industry. The AOA facilitates communication between our members, USDA-FSIS, and supply chain vendors to promote and improve ostrich production in the US.

Our value proposition

The American Ostrich Association is not a service organization. We are a volunteer group of ostrich producers, promoting industry growth through collaboration and stewardship. As the recognized national industry association for ostrich growers in the United States, we advocate for all ostrich producers regardless of membership. Our initiatives include FSIS-NPIP subpart F policy, USDA-FSIS disease mitigation policy, US trade and labeling policy, and public policy regarding farmed ostrich in the US. Your tax-deductible membership supports our efforts to promote the industry, connects you to our extensive library of ostrich research, and grants you a direct line to like-minded producers in our industry. Together we succeed: if you are passionate about ostrich please join us.

What now?

Associate Members receive full access to our research library, member directory, and free classified advertising program. This membership is designed for individuals or organizations that are performing due-diligence or just getting started with ostrich farming. Associate members do not have voting privileges but are fully included in all events including the Annual meeting which is held at a participating farm each year.  The annual fee for this membership is $75

Sustaining Members are established producers who recognize importance of the AOA to improve our industry. In addition to our research library, member directory, and free classified advertising program, these members are invited to participate in our National or regional leadership. This membership includes five named associates who all receive private access to club to association resources.   Sustaining members are full voting members of the Association and select continued leadership at the annual meeting. The annual fee for this membership is $150

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