Economics of meat production from springbuck in the Eastern Cape Karoo

Abstract

The feasibility of springbuck based meat production in the Eastern Cape Karoo was analysed through a stochastic budgeting model, while openly taking cost and price risk into consideration. Monte Carlo simulation of a springbuck-based meat production enterprise was used to quantify the risks that would be faced by springbuck ranchers. Springbuck ranching has been proven a viable alternative in the production of highly nutritious and healthy meat (venison) that is in high demand in European markets and more recently, with a promising and increasing local demand as well. The results indicate that in the Eastern Cape Karoo, springbuck ranching for meat production is a viable business. As the call for more environmentally friendly rangelands utilisation economic systems intensifies, rangelands owners in the Eastern Cape Karoo have a practicable option. At the very least, an alternative to broaden their incomes with springbuckbased meat production exists.

Keywords:

• game ranching
• springbuck ranching
• meat production
• economic feasibility
• Monte Carlo simulation

JEL Classification:

• C63
• Q01
• Q27
• Q57

Additional information

Notes on contributors

T.S. Dlamini

PhD student, Department of Economics and Economic History, Rhodes University, Grahamstown

G.C.G. Fraser

Professor, Department of Economics and Economic History, Rhodes University, Grahamstown

B. Grové

Associate Professor, Department of Agricultural Economics, University of the Free State, Bloemfontein