Wildlife Economics . . . My story . . .

Scenario critical...

South Africa is approaching 2019 with many uncertainties and the only way to turnaround industries such as Wildlife Ranching is to lead with a pragmatic and methodological approach in finding practical answers, - leveraging the collective knowledge and know-how and experience of committed players in the industry.

One thing is sure though, - rural economies depended heavily on the capital and revenues induced as a result of the economics of wildlife and its decay hit hard and could take decades to replenish. Ironically this phenomenon has been neglected by role players in and around the industry, - leaving a devastating void.

With future options murky, - making informed decisions are near impossible, - desperately in need of reliable market intelligence and innovative economic and enterprise development initiatives.

Commercially viable transformation mission critical.

Feb 2016, 35℃ in the shade...

Pieter Gouws, Kobus Fick and I were finding refuge against the heat in the shade of a Kameeldoring tree after touring Pieter's new farm, Boomfontein, located in the Springbokvlakte, - procured with the intent of spreading risk and diversifying his farming operations.

Kobus was in the market for Sables and Pieter meticulously bred prime genetics over a period of 15 years. Bellua Enormis has matured into a model game breeder - best in class infrastructure, scientific methods, experienced management, precision-engineered to ISO standards - the result of the fusion of economics, biology and years of experience and lessons learned.

I've been pursuing the Wildlife Ranching industry since early 2014 with the idea of introducing new entrants to the game. Even large banks proclaimed a great future. Hooking up these two trusted business partners was a critical milestone to test the water, safely.

Relevant heritage...

In 2000, Kobus bought his farm Buffelspan near the Botswana border, - the same year Pieter bought his first farm, Holland near Dwaalboom.

For both it was a lifetime dream come true.

Kobus journeyed into wildlife at age 19 as first-time biltong and trophy hunter, developing a deep love for the bushveld. It was not long before enjoying and appreciating God’s creations overtook his passion for hunting and eco-safaris became a primary pastime, also involving his family. His principal business in industrial engineering and information systems provided him with the means to invest in a game farm and establish Trapsuutjies Eko Safaris. Over time he managed to pay off the farm and make significant infrastructure improvements including a tented safari camp, cold room facilities, game fencing and investing in small quantities of plains game.

Pieter, on the other hand, grew up in and around the Louis-Trichardt area where his dad had sawmills, - paving the way for cattle farming near Vivo and forestry at Levubu and Ysterkroon. Whenever Pieter was not at boarding school, he was on the farm, labouring, learning. Pieter joined Telkom to further his education and later started his own business, specialising in Telecoms infrastructure. His heart and soul were however on the farm and buying his own was a natural conclusion, thus taking the leap, purchasing Holland at Dwaalboom. Expanding his turf, Pieter acquired neighbouring farms, Leeuwkuil in 2002 and Vetboom in 2005, totalling some 5,000 hectares of open fenceless bushveld. In 2012 he purchased Makouwpan in the Waterberg district to focus entirely on breeding rare game species.

In my teens, I dreamt of one day taking over my godfather's farms, Baviaanskloof and Crooks Corner, near Bandelierkop. The farms were later earmarked to form part of Venda but the love for nature ran deep in my veins, and my focus shifted to becoming a veterinarian. I eventually studied medicine rekindling my interest in ecology, biology, and genetics with Botany and Zoology being my favourite first-year subjects. After dropping out of med school, I ventured into computers and, amongst other, pursued farming, financial and cooperative management systems. My wife's uncle, who headed up the Department of Agriculture at the time, was my mentor on economic development, growth and governance.

Barriers to entry...

Kobus's idea was to move his Sables to Buffelspan eventually. Reintroducing a breeding herd into the wild, however, presented some challenges with the risk of mortality. It seemed it would take considerable effort and time to rebuild the herd's natural immunity against disease. Also uncertain was if fight or flight instincts can successfully be reinstated, given being domesticated and the absence of predators. A few years earlier Kobus released some Gemsbok which disappeared unexplainably and he had to reconsider the impact of the ecological, biological and other factors at play.

The Bellua Enormis brand and its strategic positioning justified the premium on price but things didn't quite add up, - considering the shift from intensive breeding to an ecotourism oriented approach. Though very much a general industry practice, - buying from a recognised breeder to then continue under another brand could potentially imply dilution in perceived value, - as it did not necessarily constitute the continuation of hard-earned recognition. - We chose to overlook the above, much uncertainty prevailed.

I abruptly faced a big dilemma - my reputation unexpectedly at risk.

Likewise, that of Pieter, should things not work out for Kobus to his expectation. My long-standing business relationships and friendship with both of them were not worth putting to the test at the time.

Answers, please...

By nature, I don't let go of something if I believe in it. - but it comes at a price, - in this case, one I'm more than willing to pay, - given what is at stake and the prosperity and rural relief it could bring.

In general, adequately researched information was few and far between, - the time and costs it took to compile professional and usable insights did not keep up with the pace of change. - It became a mission to isolate what was relevant versus the outdated.

For the remainder of 2016, I went out of my way to learn more about the industry.

The ever-present omen of wildlife ranching being a bubble had to be demystified to continue. In my mind bubbles are caused by greed, misinformation and panic. Many of those breeding for the jackpot bellied up. Those that can afford to stick it in have little option but to farm it out or go into hunting.

I could not find what I was looking for.

Disappointing was that, where I thought to get answers, turned out to be a lost leaders. Many inputs were vague, sometimes pure bullshit trying to make a sale. Television became boring, - hearing the same thing over and over again. Googling deeper revealed wondrous websites, costing plenty, - many not even getting out of the block.

As prices dropped towards the end of 2016, the pressure of ongoing drought and the high cost of feeding hit hard. To add insult to injury, - our dear beloved government allowed the Rand to plummet. - As in the case of Kobus and Pieter, many playing in the game made their money elsewhere, - reserves were fast drying up to invest and cover expenditure, - it was now needed to plug holes elsewhere.

On an inspection to Boomfontein, I was astounded by the radical transformation. Land designated for future breeding camps turned into orchards. As we drove to check on a pump, a trophy Impala ram bounced over the road. "You can shoot it if you want, - it's nibbling off the tops of my trees" - The tide has changed. - Passion for conservation faded as barriers to preserve curbed the enthusiasm.

As we drove, we wandered into memory lane of the days when we were mentored to get the best out of us. Probably one of the most valuable growth-enhancing practices that disappeared since '94, - incoming leadership that did not have this privilege, - not realising the potential and power within to turn around our economy.

Depressing was the news of a seasoned player giving up more than 30 years of farming experience to settle in a retirement village he was not ready nor destined for, - at least not yet. South Africa cannot afford to lose such expertise. -

We need to make a plan - we're loosing skills and experience we cannot replace

Looking Forward...

If all's not lost, - then where is it? - We needed answers, and a professionally compiled online survey was launched in early 2017, seeking two very critical answers.

1) What do those in the game think?

2) what is the potential for new entrants?

Grateful I was when 480+ business owners, directors, and executives afforded 13 minutes on average to share their valuable opinions. By December we surpassed 680 responses, 84% complete, 70%+ top-dogs.

Conservation, ecotourism, market and new business development, liaison on legislation, regulation, policy surfaced as priorities.

Let the hunt begin...

Ukuma has many meanings in African dialects - highly relevant to this moment in time, - appropriate orientation, - being in shape, - right stance, - to stand upright, - excellent posture, - stop losing, - persuasion powers to serve as an exceptional mentor.

Join us online and benefit from ongoing market research and insights on the economics of Wildlife to refine your game plan and business model

Kobus and Pieter eventually concluded a mutually beneficial deal and on the 8th of April 2018, a Bellua herd of 17 prestigious Sables was re-wild on Buffelspan.

What a BEAUT!