Ostrich meat, although poultry is red, not white like most other birds. This red meat, which looks and tastes much like beef, is lower in fat, calories and cholesterol than not only beef, but also white meats like chicken and turkey. Ostriches belong to a family of birds called ratites, which includes emus and rheas well, and they are easy to tell apart from other winged creatures because they can’t fly. All ratites have red meat. It has to do with their muscles. They reproduce more often than cows, and they sell for a lot more because their meat is considered a delicacy, at least in the United States.
1. What are the five steps for starting an ostrich farm? Prepare a brief financial plan for starting an ostrich farm.
2. Based on the video, the owner of the farm said that he sold 25,000 pounds of ostrich meat last year. At the Exotic Meat Market of Las Vegas (www.exoticmeatmarket.com), 25 pounds of ostrich meat sells for $600. If you assume that the markup is 50%, how much would the ostrich farmer earn?
3. Based on the video, one ostrich egg is equal to 24 chicken eggs. At the Exotic Meat Market of Las Vegas (www.exoticmeatmarket.com), one ostrich egg sells for $60. Assuming the equivalency, what would the buyer be willing to pay per chicken egg? What is the normal amount that you would pay for a chicken egg? Is there a benefit to the ostrich egg over the chicken egg that is responsible for the price difference?
4. What are some of the fixed costs and variable costs that an ostrich farmer would have?
CNN video. (2011). Demand for Ostrich Meat on the Rise. August 22, 2011.
Arie, B. (2011). How to Start an Ostrich Farm. Chron.com, August 22 (Retrievable online at http://smallbusiness.chron.com/start-ostrich-farm-17914.html)