Weekend Argus (Saturday Edition)
Oudtshoorn shows strong growth
Enterprising Klein Karoo ostrich farmers adapt and diversify after bird flu cull
THE KLEIN Karoo economy relies primarily on agriculture with tourism its secondary source of income. Since the 1880s and the early 20th century’s feather boom, Oudtshoorn and its surrounds have been known for their ostrich farms, says Jacques de Beer, Pam Golding Properties (PGP) area principal in the Klein Karoo.
“It is understandable that our Klein Karoo economy was exposed with the outbreak of the highly pathogenic H5N1 strain (bird flu) in Oudtshoorn during 2011,” De Beer said.
“The EU placed an export ban on South African ostrich meat. Thousands of ostriches had to be slaughtered, but not with everyone’s approval. The world-famous ostrich show farm, Highgate, had to close its doors as all its ostriches were slaughtered.
“The EU ban remains in place and has accounted for more than 50 percent of ostrich farmers leaving the former R2 billion- a- year industry. Before the ban, the Klein Karoo region was producing about 170 000 slaughter birds a year, which represented about 70 percent of ostrich meat consumption worldwide, most of it destined for the EU.”
Although water is scarce in the semi-arid Klein Karoo, it is a fertile farming area, and De Beer says the Afrikaans expression ’n boer maak ’n plan (a farmer makes a plan) applies to the area.
“Since the bird flu outbreak, the tenacity of our farmers and their ability to adapt has come to the fore. Diversification has been the slogan through these challenging times and we have noticed farmers increasing their sheep where possible. Some have introduced cattle, goats and even springbok.
“Farmers with access to irrigation have introduced lucerne or increased their lucerne production substantially. Some farmers are returning to tobacco farming and a substantial number are producing vegetable seed. Some big ostrich farmers have negotiated profitable lucerne deals with horse farmers throughout the Western Cape.
“Ostrich farmers have also transformed most of their conventional ostrich business by exporting cooked ostrich meat. Worldwide ostrich feather prices have risen and fortunately this avenue subsidises some losses on other ostrich exports.”
De Beer says some of the smaller ostrich farmers have had to sell out to bigger operations.
“We still have many ostrich breeding farms throughout the Klein Karoo, but have also noticed ostrich farmers flourishing in the Swellendam and Riversdale areas. Farms vary in size. Smaller farms, from 500 hectares to 1 000ha, are viable only if they have at least 10 percent of the land producing lucerne under irrigation and the rest veld. The older traditional big ostrich farmers still manage farms of more than 5 000ha.
“We have also seen ostrich and other farms come on to the market at reasonable prices. Some of them had ostriches, but can be converted to lucerne-producing, livestock or lifestyle farms.
“We have experienced a sudden increase in demand for large game farms or large farms with enough veld to be converted into game farms. These buyers are from upcountry, and want to buy farms for breeding buffalo and other scarce game species.”
Pam Golding Properties Klein Karoo has a well-equipped 16 000ha farm with enough water, for sale at R62 million.
Said De Beer: “We also have three exceptional game farms for sale. They range from 3 500ha to 8 000ha in size and from R14m in price. Throughout the Klein Karoo smaller farms, between 6ha and 200ha, are being sold for less than R2m as lifestyle farms, some with spectacular views over the Swartberg and Outeniqua mountains and others in idyllic settings.
“These farms are popular because they are easily accessible and close to towns with schools and other amenities. The Klein Karoo’s number one drawcard is the quality of life, with clean air, pure water, a low crime rate, quality schools and a simple lifestyle.”
Sales have included a 100ha eco farm bought for R2.2m by a buyer from George, and guest smallholdings, one of which – on 11ha – was sold by PGP for R690 000. De Beer said PGP was receiving notably more enquiries about big commercial farms than in the past five years. These farms vary in size from 2 500ha to 4 500ha and are priced from R4.6m to R17m.
“During 2013 we have experienced a huge demand for residential property to rent. We have had a tremendous inflow of military and police personnel in Oudtshoorn, some of whom are not accommodated in barracks.”
De Beer says average rentals in Oudtshoorn have steadied at between R1 600 and R5 500 a month.
“We are letting central wellmaintained bachelor flats to mostly public sector personnel at rentals from R1 600, while a four-bedroomed home in the best neighbourhood will fetch from R5 500.
“PGP Oudtshoorn has just sold a three- bedroomed property for R350 000 with a rental income of R3 300. These opportunities are coming up again and you need to be close to the market to snap them up.
“We have a commercial property with a monthly rental of R22 000, available for sale at R2.4m. We also have a centrally situated sandstone building – with two low-risk tenants paying a total of R9 950 a month – with a listed price of R1.4m.”
Call Jacques de Beer on 044 272 2822 or 082 897 8262 or e-mail jacques.debeer@pamgolding.co.za