Fresh headwind for SA game farming – DEA investigating colour variants

One never knows when a price bubble will burst. Because while it expands, even the most rational of beings can get sucked in. Witness the great scientist Sir Isaac Newton. In the early 1700s, Newton, an avid investor, was one of the earlier beneficiaries of the South Sea Company, a publicly listed business that promised to make a fortune out of trading with South America. After seeing the share price surge, Newton identified it as a bubble and cashed in a sizeable profit. But as the price kept climbing, he got sucked back in, eventually losing his fortune in the crash, the equivalent of R50m in today’s money. While its inflation hasn’t been quite as spectacular, game farming in South Africa has similar qualities. The auction price of wildlife, particularly that of genetically engineered species, has been rising in a near straight line for years now. Even otherwise unemotional beings have been sucked in, witness the names of those splashing out millions on big horned buffalos. With SA’s Department of Environmental Affairs starting to take an interest, it must surely be time for investors to reflect. – Alec Hogg    
By Kevin Crowley
Kudu female
Kudu female.

(Bloomberg) — South Africa is conducting a scientific study into the growing practice of breeding so-called color- variant animals such as golden gnus, black impala and white kudu.

The study by the Scientific Authority of South Africa will help the government decide whether to regulate the industry, the Pretoria-based Department of Environmental Affairs said in an e- mailed response to questions. Selective breeding of previously wild animals for color and horn-length has drawn criticism from conservationists and hunting groups.

“The DEA does not regard the intentional breeding of animals for specific traits such as color coats as a conservation benefit,” the department said March 31. “Whether it is a threat to conservation would depend on the size and genetic make-up (genetic diversity) of the population into which the color morphs are introduced.”

Rare-colored animals, or those with unusually large horns such as specially-bred buffaloes, have become big business in South Africa, attracting record prices at auctions in the past three years, causing more farmers to switch from cattle to breeding wildlife, pushing up prices even further. The practice is part of the country’s game ranching industry, which is worth 12 billion rand ($1 billion) a year and growing at 10 percent annually, according to Barclays Africa Group Ltd.

Mystery, a buffalo with a 53-inch horn span, was bought for 40 million rand by billionaire Johann Rupert in 2013, while Deputy President Cyril Ramaphosa sold three white-flanked impala for 27.3 million rand last September. Impala are usually copper-colored.

To determine whether the breeding of color variants is detrimental to South Africa’s biodiversity, the department plans “a process of national dialogue,” it said.

‘National Dialogue’

Elephant - Kruger National PArk
Elephants in the Kruger National Park.

“The outcome of the national dialogue, as well as a scientific report on this matter that is currently being compiled by the Scientific Authority of South Africa will assist to determine whether or not it will be necessary to regulate or monitor this practice,” the DEA said.

Breeders say demand from trophy hunters is behind the record prices as well-heeled marksmen from countries such as the U.S. demand bigger and rarer game. The growth in hunting has led to record numbers of wild animals in South Africa at a time when native species have been decimated across the continent, Wildlife Ranching South Africa has said.

In 2010, the Scientific Authority said while the breeding of color variants is a low threat to affected species, it does not benefit conservation so should not be supported.

Dung Beetles

“What we don’t really understand at the moment is whether this type of practice has any value for conserving habitat,” John Donaldson chief director of biodiversity research at the Scientific Authority said by e-mail last month. “Does game farming with color variants support habitat conservation even though it’s not ideal for the focal species?” bushveld_s

Wildlife Ranching South Africa, which represents game farmers, supports much of the research being carried out of the government. The association’s president, Peter Oberem, said game farming as a whole has benefited populations of animals as diverse as dung beetles and oxpecker birds as former farming land slowly returned to its natural form.

“We agree with the findings” of the Scientific Authority’s 2010 study, Oberem said in an interview on April 2. “We support the government in many ways.”

Hunting organizations such as the Professional Hunters’ Association of South Africa deny they are spurring demand for rare animals and said “potential risks” of breeding must be monitored to safeguard conservation in a statement March 19.

The record animal prices are a “bubble” as they are inflated by wealthy breeders trading between each other, Chris Niehaus, former head of the South African Hunters and Game Conservation Association, said in January.

 

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