Bulawayo — Bulawayo-based ostrich processing giant PT Royal Ostrindo has warned that the number of birds suitable for slaughter this year will fall to 24 000 as more ostrich producers relocate to Botswana to escape instability in Zimbabwe's commercial farming sector.

Ostrich producers - based mostly in the Matabeleland region - were supplying up to 42 000 birds to Ostrindo four years ago, but the figure dropped to 26 000 last year as most large-scale operators were forced off their farms by the government's land reform programme.

Industry officials say the disturbances in the commercial farming sector have forced a large number of ostrich producers to move to Botswana, where they have entered into lucrative contract schemes with the Botswana Ostrich Producers' Association.

Ostrindo financial manager Velenjani Lupankwa said the company was intensifying its communal farming outgrower projects in an attempt to boost output.

He said communal farmers participating in the outgrower schemes were this year expected to deliver about 7 000 birds, nearly a third of the total deliveries this year.

"We had 26 000 birds delivered for slaughter last year and this will be down to 24 000 this year," Lupankwa told The Business Daily.

"However, because of changes in the farming sector, some ostrich producers have gone into crocodile farming, others have fled the country and others have relocated to Botswana, thereby affecting our production base."

He added: "Most of our birds this year will come from our sister companies that specialise in ostrich production, while the communal farmer outgrower schemes are expected to contribute nearly a third of our total deliveries."

Lupankwa said Ostrindo would target a turnover of US$6 million (about $21 billion at the ruling forex auction rate) through the sale of ostrich skins and meat to European Union countries, especially Belgium.

He said the company hoped to counter the decline in bird production by producing higher quality skins and meat in order to increase the average bird prices for export.

The Ostrindo official said although Zimbabwe's ostrich industry was still viable, the new foreign exchange auction system introduced by the central bank adversely affects exporters.

"Exporters are in trouble over this new auction system," said Lupankwa. "We need to be involved in determining the price and value of currency, but at the moment, all that happens is that importers go in and bid for allotted amounts. There is no room for exporters to say we want to sell at this price."

He added: "The policy itself is in the right direction in terms of the value of the dollar, but more consultation needs to be done with exporters."

Zimbabwe's ostrich output is second only to South Africa's on the continent, but analysts say the closure of most large-scale producers means that the country will not benefit substantially from firming international prices.