1. Wildlife Ranching

2. WILDLIFE RANCHING - an industry of the future - Brief history. Prior to 1652 game in Southern Africa was widespread and could move freely (no fences). Initially seen as food (introduced livestock did not have to be killed for meat). Also hunted for sport. Later seen as: Competition to domestic stock for grazing Disease carriers and reservoirs Other major factors reducing game numbers Rinderpest (reaching Western Cape in 1898) Anglo Boer war (1899 to 1902) Fencing Tsetse and Ngana control (1928 to 1960) Tb control programmes (1930 …..)

3. WILDLIFE RANCHING - an industry of the future - Brief history (cont). Pres. Paul Kruger 1894: Africa’s first game reserve: Pongola 1894: Sabi game reserve =KNP LEGALIZATION OF PRIVATE OWNERSHIP Laws passed in 1991 meant that ownership of wild game was recognized by the state. This lead to a boom in game ranching, hunting and game trading.

4. WILDLIFE RANCHING - an industry of the future - Agriculture, Conservation or Business? One of the major challenges for both the industry and government is where does the industry fit best. Varied member interests. Impacts on all sorts of things: Tax, Road verges, Drought/fire assistance, etc. Statutory ‘cost of doing business’.

5. WILDLIFE RANCHING - an industry of the future - Current global economic trends. 2008 crash Slow 2 phase recovery(USA/China vs Eurozone) USA expected to increase interest rates mid 2015 Most trophy hunters from US Sub-Saharan Africa’s growth predicted to be 5,4% for 2015 Game Ranch industry far outstripped any of the above

6. WILDLIFE RANCHING - an industry of the future - Current local economic trends. Currency depreciation: Lost >50% over past 3 years, expected to continue. SA is one of “Fragile Five” due to double deficit: Fiscal Current Account deficit (at record levels).

7. WILDLIFE RANCHING - an industry of the future - A different ideology regarding game. American wildlife culture which is based on the belief that making money out of wildlife is immoral; South African wildlife culture is based upon sustainable use. Due to the value placed on game, the wildlife industry has not only restored wildlife to the land, but has also enhanced and restored genetic quality of RSA’s wildlife. The RSA wildlife industry has grown positively, as a result of the legal trade, hunting and eco-tourism.

8. WILDLIFE RANCHING - an industry of the future - Outcome of 2 wildlife ideologies. RSA had 3 private game ranches in 1960 with ownership of game and land vested in farmers. Currently, 28 000 000 ha marginal, uneconomic, semi-desert agricultural land converted into sustainable land use option. Kenya, with similar agricultural industry, banned private ownership in 1977 – their game declined by an estimated 70%. The most widely accepted estimates for some of the key species: 1960 = 20 000 rhinos, currently < 1 000 1970 = 150 000 elephants, currently 30 000 1970 = 20 000 lions, currently 2 000

9. WILDLIFE RANCHING - an industry of the future - Alternative land use option. Most private game ranches in SA are marginal farms in terms of land capability classes that have been converted from domestic stock / crop farms into effective land-use options. These farms are not, and never have been conservation land.

10. WILDLIFE RANCHING - an industry of the future - Scope of the wildlife industry. Private Game Ranchers ~ 16.8% of agricultural land State Protected Areas ~ 6.1% of agricultural land US$ 1.3 billion plus, contribution to GDP 20 million plus, head of game and 6 million in protected areas ± 14 million head of cattle (with ± 8 million in the commercial sector and 6 million in the communal areas) >20% of red meat produced in the country annually

11. WILDLIFE RANCHING - an industry of the future - Scope of the Wildlife Industry (continued). 120k people employed; reward systems 3x higher than conventional stock farmers: Average game ranch > 2500ha = semi-extensive Out of more than 100 permanent employees on game ranches, ±15 qualify as farm / general workers. On average-sized ranch, the staff complement would consist of the following: Ranch manager Assistant manager Secretary / admin officer Mechanic 4 Field rangers 6 Labourers

12. WILDLIFE RANCHING - an industry of the future - Agriculture in SA: Mostly marginal conditions. South Africa is not well endowed with the basic needs for agriculture Low and erratic rainfall, High evaporation, and Poor/shallow soils (all in general of course). 70% of agri land precluded its use for commercial agri crop production. Restrict its use to recreation, semi-extensive game farming, water supply or aesthetic purposes Unsympathetic government

13. WILDLIFE RANCHING - an industry of the future - Agriculture in SA: Current economic trends. Hard to compete internationally Cost squeeze Commodity prices (import parity) Input prices (weakening Rand and inflation) Labour unrest and costs Normal business practice is to look for the unique selling point and to exploit the competitive edge Movement to game ranching.

14. Market segmentation within the Wildlife Ranching Industry Hospitality & Eco-Tourism Game Meat Game Ranchers Game Meat Game Meat (Local Consumption & Export) Trophy & Corporate Hunting Recreational Hunting Safaris & Game Viewing Game Breeding / Trade Hunting contribution: (US$ 762 million)67% Game trading contribution:(US$ 238 million)28% Game Meat Production:>20% of Red Meat per annum WILDLIFE RANCHING - an industry of the future -

15. Game Ranching in SA: Biodiversity contribution and trends: Conservation: More game animals in SA today than anytime since 1850 (165 years) = >10 m head owned privately. Massive contribution to threatened species: Rhino (40% in private hands) Sable antelope (90%), * buffalo (disease free) (90%) 60 000, and roan (>90%) 2 500. Converted >28 m ha from marginal agricultural land to a sustainable green economy. *Note: only an estimated 40 roan & 800 sable in the Kruger National Park

16. WILDLIFE RANCHING - an industry of the future - Game Ranching in SA: Economic contribution and trends. Ostriches and crocodiles (exports) Slaughter 92% of worlds ostriches SA crocs, unlike Zimbabwe and Zambia do not rely on imported young from the wild in Mozambique (sustainable utilization?) Plains game (incl. rare species and colour morphs). 1991 -2000: Phase 1 – plains game 2000 – 20xx: Phase 2 – Valuable rare species & colour morphs = game husbandry technologies. 2015- …… :Phase 3 – game meat

17. WILDLIFE RANCHING - an industry of the future - Wildlife Ranching: Transition Required VALUE CHANGES US$ 762 - US$ 171 428 US$ 952 - US$ 84 761 Source: Dr F Cloete, NWU

18. Source: Groenewald & York. 2013. An economic outlook, the wildlife industry. Golden Breeders. May 2013 US$ 86 US$ 76 US$ 67 US$ 57 US$ 48 US$ 38 US$ 29 US$ 19 US$ 9.5 Structural economic change

19. WILDLIFE RANCHING - an industry of the future - Source: Dr F Cloete, NWU CPI base year = 2013 Species Initial investment: capital outlayERR 2005200620072005-20122006-20122007-2012 Buffalo US$ 69 579US$ 115 507US$ 152 10362.6%48.7%42.60% US$ 76 191 US$ 66 667 US$ 57 143 US$ 47 619 US$ 38 095 US$ 28 571 US$ 19 048 US$ 9 524 US$ 0 PRICE TRENDS

20. Source: Dr F Cloete, NWU CPI base year = 2013 Species Initial investment: capital outlayERR 2005200620072005-20122006-20122007-2012 Golden WildebeestUS$ 83 810US$ 117 857US$ 178 09598.2%89.1%66.5% US$ 57 143 US$ 47 619 US$ 38 095 US$ 28 571 US$ 19 048 US$ 9 524 US$ 0 WILDLIFE RANCHING - an industry of the future - PRICE TRENDS

21. Sustainable use cannot be understood only from a biological or ecological perspective, such as the harvest of a specific species over time in isolation. The broader social, economic, cultural and political dynamics, should be factored into the equation. Governance Ideology for Sustainable Wildlife use. WILDLIFE RANCHING - an industry of the future -

22. Sustainable use dictates a specific State Governance system. Eco- and humanity systems that depend on good governance change constantly. The governance system must be capable of detecting, assessing, and apply adaptive management prudently to changes in public, private, community-based, formal and informal, environments. Applied evidence-based research by academic research agencies Adaptive management WILDLIFE RANCHING - an industry of the future - Governance recommended for SA.

23. WILDLIFE RANCHING - an industry of the future - About 40% of the global economy is based on biological products and services. More than 50% of all commercial medicines used today come from nature. About 80% of the poor people in developing countries are dependant on traditional medicines from nature (WHO). Green Economy – A matter of human survival. (Source: Victor B. 2013. Human impacts on biodiversity. St Xavier’s College, Palayamkottai)

24. WILDLIFE RANCHING - an industry of the future - Green Economy – A matter of human survival (Continued). Harvesting of wild animals from land and sea provides protein of > US$ 400 billion annually, supporting > 1 billion of the Earth’s poorest inhabitants. (Source: JS Brashares et al., Wildlife decline and social conflict, 2014)

25. WILDLIFE RANCHING - an industry of the future - The food security imperative. Food security >20% meat during hunting season Exports were almost R400m annually (can import 3 kg beef for every 1 kg game meat exported R2,5 billion p.a. opportunity Game meat scheme: Now a WRSA initiative

26. WILDLIFE RANCHING - an industry of the future - Participation in the Industry Certification Scheme Participation in the gazetted certification system will be open to all wildlife ranching practitioners and bio-traders. Typically this includes: Wildlife Ranching of South Africa and National Hunting Associations, etc. with Self-Administration fully employed.

27. WILDLIFE RANCHING - an industry of the future - Participation in the Industry Certification Scheme (Continued). According to WRSA Industry Standards (currently being developed); General Game Husbandry: how animals are bred, kept and treated (e.g. medication, feeding and general translocation practices) Harvesting of animals based on acceptable standard operating procedures How carcass is handled / processed; WRSA, Vet & VPN Standards How meat is further processed / beneficiated; Department of Health and WRSA Standards An International Compliant industry standard for game meat (ISO 9601 QA Standard, ISO 14 000 Environmental Standard and ISO 22 000 Food Standard) approved this week for WRSA

28. Source: Dr F Cloete, NWU Past Medium term Long term Bottom Early- middle bull market 1990 2000-20132014 - 2017 Middle-late bull market ECONOMIC FORECAST WILDLIFE RANCHING - an industry of the future -

29. WRSA believes in a positive future for the industry. WHY? Wildlife is a unique asset – different to most if not all other assets Wildlife enables one to breed a good investment – boils down to good asset management! Balance between short term financial gains and long term financial viability Game Meat Production new growth phase Institutional Repositioning in progress Land Reform Pilot Projects Genetics and Evidence-based Research Vaccine for Malignant Catarrhal Fever (MCF) ‘Snotsiekte’ CITES & Rhino trade normalization Conclusion (Continued)

30. THANK YOU WRSA WISHES YOU A HAPPY AND PROSPEROUS FUTURE IN THIS GREAT INDUSTRY