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Private & Confidential
©Ingomso Lethu 2014
A DEVELOPMENT PROGRAMME BY:
LATHITHA INGOMSO LETHU RABBIT FARMS (PTY) LTD
RABBIT FARMING FOR SMALLHOLDER FARMER
DEVELOPMENT
(RF4SHFD)
INFORMATIONSHEET
&INVESTMENT
SUMMARY
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©Lathitha Ingomso Lethu 2016
A Brief Missive to Current and Future
Primary Agri Partners
SUBJECT : RABBIT FARMING INFORMATION SHEET
Abstract
There are some 500 million smallholder farms worldwide; more than 2 billion people depend on
them for their livelihoods. These small farms produce about 80 per cent of the food consumed in Asia
and sub-Saharan Africa1.
Yet, like elsewhere in the world, most smallholder farmers in South Africa are characterized by poor
resources such as land, labour and capital while they play an important role in poverty alleviation,
especially in poor rural areas. Smallholder farmers are increasingly recognized because of their
contribution to household food security – which in itself is limiting the transition of smallholders
towards commercial sustainability.
While it is widely accepted that the importance of agriculture in sub-Saharan Africa cannot be
underestimated; with over 70% of the arable land under smallholder agriculture in the region. The
sector employs more than 70% of the workforce, and is the primary source of income for rural
populations, while contributing significantly to foreign exchange earnings and accounting for more
than 35% of national gross domestic product.
It is widely recognized that the viability of these smallholder producers is constrained by institutional
obstacles which include lack of access to information, high marketing and transaction costs and low
quality and lack of critical volume in the absence of bulking up arrangements, limited to no access to
financial markets, limited to no access to markets, infrastructure constraints, limited access to business
management sills, limited capacity development, declining productivity and inconsistent quality, risks
associated with limited diversification, tenure insecurity, organisational capacity – are they
organised? etc.
In its paper, Smallholder farming in Asia and the Pacific: challenges and opportunities, IFAD confirms
that in the midst of these overwhelming challenges often remained resilient; noting however that this
“Resiliency” does not imply viability, because smallholder farmers often remain in agriculture due to
a shortage of employment opportunities in non-farm activities or urban areas and a lack of required
skills for a shift in occupation.
This further supports the view that: “…half of the world’s hungriest people are smallholder farmers, yet
the grow 70% of the world’s food.” This is largely a result of limited transitioning from smallholder
farming to commercial farming as informed by the barriers noted herein.
While the widely accepted definition of Smallholder Farms as being those of those with less than 2
hectares of crop land; at Lathitha Ingomso Lethu Rabbit Farm (Pty) Ltd, we advocate that the
commerciality of our farming practice has a structural disconnect from a measure of size but rather
the ability to achieve excessive output from effective utilisation of available (and not necessarily
arable) land.
1 Smallholders can feed the world – Kanayo F. Nwanze President of the International Fund for Agricultural Development (IFAD)
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©Lathitha Ingomso Lethu 2016
Unfortunately in South Africa: “Climate-soil combinations leave only 12% of the country suitable for the production of
rain-fed crops. With only 3% considered truly fertile land, South Africa falls short of other countries, such as India,
where arable land covers 53% of the country. Most of South Africa’s land surface (69%) is suitable for grazing, and
livestock farming is by far the largest agricultural sector in the country2.” It is in this regard that we have adopted
Rabbit Farming to achieve efficiencies in the use of land, infrastructure requirement, no reliance on arable land or
grazing infrastructure, etc. with some key observable benefits including:-
- as small monogastric herbivore, the rabbit easily accommodates a fairly wide range of cellulose-rich foods;
- it is adaptable to the family diet and food preservation techniques available on small rural and peri-urban
farms;
- it is highly productive in terms of offspring (kg /year dam) thanks to mating-induced ovulation, short
gestation and lactation periods and great prolificacy;
- it produces highly nutritious, low-fat, low-cholesterol meat;
- it is easy to transport and market and the recurrent cost for maintaining animals beyond the optimum
marketing age are low;
- labour cost are low and the work can be done by family members: women and children, or perhaps aged or
handicapped people, usually the most vulnerable and least privileged social strata, for whom rabbit
husbandry, like that of other small animals, represents an attractive and remunerative occupation;
- it represents a contribution to the family income;
- investment is low: infrastructure and equipment can easily be put together by the breeder and not much
space is needed.
It in this context that a meagre 2 hectare (20 000 m2) can sustain multiple commercial sized rabbit farming
operations. This achievable because a typical rabbitry housing 100 does (female rabbits) in a 2 tier structure
requires 252m2 while the same amount of does is a 3 tier structure requires 180m2. In this regard, a 1 000 does
operation that produces between 108 and 144 tons of meat per annum can be housed in a property ranging from
1 800m2 and 2 520m2, generating a sustainable annualised turnover.
The most immediate competitor to rabbit has been said to be chicken (if at all it is necessary to view rabbit meat as
competition to broiler, especially given that there is a shortage of approximately 400 000 tons of broiler supply in South
Africa annually, rather than complementing or bridging the gap). In this regard, it needs to be observed that this
business or model does not seek to replace chicken meat but to bridge the gap between demand and supply – that
is not even filled by imports (which imports are also cause for multilateral agreement review because of the dumping
practices in the industry/sector).
The South African poultry meat industry, with a gross value of more than R27 billion (US$3.1 billion), is the country’s
largest individual agricultural industry and contributes almost 17 percent to the total gross value of agricultural
products. In 2011, South Africa slaughtered 979 million broilers that produced 1.37 million tons of broiler meat,
while in 2012, production was slightly higher, i.e., 997 million broilers that produced 1.4 million tons of meat. South
Africa consumed approximately 1.8 million tons of broiler meat in 2012, a rise of almost 70 percent since 2000.
Broiler meat imports increased by 13 percent to 367,500 tons in 2012 from 325,052 tons imported in 2011. This is
the gap that needs to be filled – which rabbit meat production proposes to fill (especially given the challenges
associated with the dumping practices in the poultry imports. Put this into context; a rabbitry of a 1000 does
returns an annual R6.2 Million gross value and if replicated 10 times produces R62 million annual turnover (against
R27 billion poultry); again a 1000 does rabbitry produces 108 tons per annual and 1 080 tons for 10 rabbitries of
the same size.
2 AGRICULTURE: Facts & Trends South Africa ~ World Wide Fund for Nature
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It is clear from this analysis that rabbit meat farming will not have a negative competitive impact in the local
poultry producer market besides augmenting the demand-supply gap – at least in the medium-term.
Over and above just the Poultry sector, Rabbit is also an alternative protein for other livestock – all of which have
supply challenges to meet the demand.
Rabbit Farming: A Commercial Food Security Strategy
The Rabbit Farming for Smallholder Farmer Development Programme (#RF4ShFd) is developed in the backdrop of
commercially sustainable rabbit farming operation (that already has over 120 Rabbit Breeders across 4 Provinces in
South Africa contracted to produces rabbits against a guaranteed off-take agreement) and therefore applies proven
commercial methodologies as its core sustainability pillar.
It the commercial sustainability benefits presented through a multitude of factors that rationalises Rabbit Farming as
a Sustainable Food Security Strategy. These include with no limitations:
- a Rabbits’ gestation period is 31 days (that is, it remains pregnant for 31 days)
- commercially a Rabbit is re-bred 7 days after giving birth; therefore the cash-flow circle is an average of
31 days a consistency that is rarely found in livestock breeding, if at all
- a single Rabbit produces ~6 (post mortality) kits (babies) every circle (MINIMUM). Therefore, annually a
single rabbit has ~10 re-productive circles – thus producing 60 kits per annum
- the Market-Ready Weight of the kits is average 1.5 kilograms
- the kits reach market-ready weight in ~90 days
- at a spot farm-gate price of R43.50 per kg; a single Rabbit contributes R3 915 per annum (an equivalent
of R1.958 Million for a 500 breeding stock – FROM MEAT ALONE)
- rabbit farming presents opportunities for other value-added by-products – such as Skin and Organic
Manure
- typically a farmer requires ~252m2 in order to breed with 100 Rabbits, making access to farmland easier
for non-land owners. Scaling up requires a simple multiplier – meaning that for a 500 breeding stock one
would typically require ~1 260m2 (252m2 x 5)
- therefore, a 500 breeding stock rabbitry contributes R1 554 per Square Meter (m2) representing ~R15.540
Million per Hectare
- it produces highly nutritious, low-fat, low-cholesterol meat
- it is easy to transport and market and the recurrent cost for maintaining animals beyond the optimum
marketing age are low.
About the RF4ShFd Programme
The Rabbit Farming for Smallholder Farmer Development Programme is a multi-partnership programme that we
championed to ensure that Smallholder Farmers, particularly women and youth of HDI status, are provided with
opportunities to participate in the Rabbit farming value-chain against an off-take agreement. The chosen contract
smallholder farmers will only be required to breed rabbits (no slaughtering, etc.) to be sold live when they reach
market weight with no need to engage in the processing of the rabbits, marketing, packaging, distribution, meat
storage, etc. and the related regulatory compliance.
Qualifying participants in the programme (e.g. with access to agricultural property (owned or leased), no prior
farming experience in required, etc.) are provided with technical support, training and development, ICT Rabbit
management systems, access to market through the off-take agreement, with all related operating manuals.
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The Rabbit Farming for Smallholder Farmer Development (RF4ShFd) Programme seeks to redress challenges faced
by Smallholder Farmers while empowering Farmworkers through the adoption of an Integrated Approach. Such
Approach recognises the importance of sustainability of Smallholder Farmers as an integral part of the survival of
this ecosystem but also extends to ensuring that the Farmworkers are empowered without compromising the
sustainability of the farming operation; with the former being achievable through ensuring that the farmworkers have
access to adequate employee benefits, permanent work opportunities and adequate training & development
(through a network of partnerships).
According to DAFF’s Agricultural Production Strategy there is about 1.3 million Smallholders farming on ~14 Million
hectares; this means that on average a farming unit requires or uses ~10 hectares. Without considering a multitude
of constraining factor, this alone is limiting the capacity to start new farming operations while rabbit farming requires
only 180-252m2 for 100 breeding stock producing six (6) times market-ready stock per month (every 31 days)
further producing ~1.5 times meat.
While Smallholder Farmers across the globe face a myriad of challenges in their respective endeavours to achieve
sustainability and commercial status; using a multi-stakeholder engagement approach, Lathitha Ingomso Lethu has
developed an integrated RF4ShFd Programme that promises to deal with the following critical challenges:-
- Limited Access to financial markets: The challenges of Smallholder Farmers include understanding
financing & financial markets (i.e. lack of information), trading history constraints, high cost of capital due
to size of the enterprises, limited collateral, etc.
The off-taker has negotiated an MoU with the Land Bank Retail Emerging Markets (REM) that is a
demonstration of interest to finance commercially viable Smallholder Contracted Rabbit Farmers. We
still are continuing efforts to incorporate more potential funders to the system in our efforts to improve
access to capital.
Furthermore, the Land Bank has concluded an MoU with the Thembani International Guarantee Fund
(TIGF) to provide up to 75% Guarantee for the Land Bank’s exposure.
- Limited to no access to markets: Smallholder Farmers, particularly existing Rabbit farmers in South
Africa, operate in silos and therefore are faced with the challenges of producing sufficient produce to
meet demand.
This Programme’s model allows Smallholder Contracted Rabbit Farmers to have access to markets
through the guaranteed off-take – thus marginalising the costs associated with market development and
the related regulatory compliance costs related to the processing of the end products to be market
compliant.
- Long production cycles: Livestock farming requires long periods before the livestock produce is ready
for the market.
Effective management of each farmer’s activities to ensure adherence to the approved farming system
is critical to achieve desired yield – A rabbit farmer achieves revenue quicker than any Livestock
farming practice applied in South Africa because a rabbit’s gestation period is only 31 days and the
fattening period is only 90 days (with no stimulants used).
- Bulking up arrangements: the inability of Smallholder Farmers to bulk up on input (feed, cages, etc.)
limits them from achieving economies of scale.
By incorporating a number of Smallholder Contracted Rabbit Farmers the economies of scale can be
achieved for the benefit of the contract farmers.
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- Limited access to business management skills: because the sub-sector (rabbit farming) is relatively
new and development finance institutions have not funded the sector; the farmers that need finance tend
to raise personal loans / own capital that does not come with business support.
The business support relationships that are being developed with the likes of Productivity SA, Ex-Change
vzw and the Sanlam Group ensures effective skills transfer to support the sustainability of the
Smallholder Contracted Rabbit Farmers.
- Infrastructure constraints: Access to arable land, irrigation infrastructure, grazing capacity, electricity,
road, etc. infrastructure is limiting the growth of the agriculture industry particularly in the rural and
peri-urban settings.
Rabbit farming requires only 180-250m2 for 100 breeding stock producing a minimum of six (6) times
market-ready stock per month further producing 1.5 times meat.
There is no need have access to grazing capacity as the rabbits are raised in structure (that can easily
be a shed in an existing farm). The size of the animal means that it can be raised in small spaces.
Because they require lighting NOT heating they use little electricity and due to being small animals the
can be transported quite easily.
- Tenure insecurity: Land tenure is a big constraint in farming because the nature of agriculture
requirements for large plots of land (in hectares) and irrigation infrastructure over a long-term to
recover investment.
Rabbit Farming only requires access to a building on agriculturally-zoned land (with no requirements for
grazing land) and due to the size of the building required anyone may lease a property from any farm
land owner – including an existing and current farming operation.
- Limited access to farm management practices: these skills are generally accessible through
development financing institutions and not commercial financing banks. If sourced from independent
consultants, they tend to be expensive.
While the off-taker provides technical rabbit farming training; other institutions such as Ex-Change vzw,
ProductivitySA, Land Bank REM, TIGF, etc. have the capacity to provide farm management training to
all Smallholder Contracted Rabbit Farmers.
- Inadequate rabbit farm management skills (Technical): Existing Rabbit farmers do not have access to a
local provider of skills from a consolidated source.
We utilise standardised operating manuals, training manuals, ICT farm management system to ensure
operating efficiency and effective skills transfer.
- Declining productivity and inconsistent quality: These are direct challenges associated with the rabbit
farming sub-sector operated in silos with no unified standard thus limiting the interest from major buyers.
The centralised production management technique has enabled this Model to ensure that the
Smallholder Farmers (currently ~120) have been able to produce consistent quality and efficiently use
resources. Again we utilise standardised operating manuals, training manuals, ICT farm management
system to ensure operating efficiency and effective skills transfer.
- Risks associated with limited diversification: The limited productivity by farmers that operate in silos
as that they cannot produce sufficient by-products (like Rabbit Skins and Rabbit Manure) to sell to the
market. Also due to limited access to farm management practices; farmers have not maximised on mix-
farming opportunities to diversify income and also use rabbit manure as a fertiliser to the other farming
operation.
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The application of mix-farming systems is an essential driver to the development of this programme; to
ensure diversification of income streams of the farmers through:-
o Rabbit Meat sales
o Rabbit Manure (processed / prepared at farmer level)
o Rabbit Skin sales (for further processing)
- Organisational capacity: The Rabbit farming sub-sector is challenged by lack of organisation to
broaden recognition and resource mobilisation.
Through the organisation achieved by Smallholder Contracted Rabbit Farmers through this programme
will facilitate coordination in the sub-sector.
- Sustaining value-adding employment: Agriculture relies on temporary/seasonal employment thus
failing to retain value throughout the life of the business and the seasonal nature also means that the
employment available in prior seasons may not be available the next - thus resulting in slower
productivity due to the learning curve challenges.
Rabbit Farming creates permanent employment opportunities, because there is no harvesting cycles.
o There are on-going negotiations with the Sanlam Group to offer employee of the farmers
Employee Benefits that include Group Life and Funeral Cover once the numbers of farmers
grow and are consolidated.
THROUGH THIS PROGRAMME WE ARE COMMERCIALISING SMALLHOLDER FARMS OF
500 BREEDING STOCK (DOES) AND PROVIDING AN OFF-TAKE AGREEMENT
AGAINST THESE FARMING UNITS.
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©Lathitha Ingomso Lethu 2016
The Basic Infrastructure Required
It is critical to note that before considering Rabbit Farming, there is a need to have basic infrastructure on the farm in
order to participate in the RF4ShFd Programme. This is because this is Intensive Farming and therefore requires the
following infrastructure:-
- Agriculture Zoning – The Land needs to be Zone accordingly
- A building measuring 1 300m2 – it is also worth noting that a farmer wanting to participate does not
need to own such a building and therefor may lease it
- Adequate access to water – a single rabbit drinks between 3 to 5 litters of water in a single day
- Adequate access to electricity – the electricity is not used for heating the Rabbitry (unlike in broiler
farming) but used regulating temperature without air-conditioning and facilitating oxygen flow in the
Rabbitry
It is imperative to note that the building / structure on the farm may be brick and mortar or a Greenhouse.
Start-up Capital Summary3
Start-up training 11 394.30
Lepus License & Tablet (incl. Training) 11 394.30
Breeding cage 1 664 856.64
Doe Cages 231 740.63
Bucks Cage 37 078.50
Followers Cage 463 481.25
Wastepan 518 569.98
2.8 meter - 3 Tier frame warren 413 986.28
Feeders 316 817.40
Standard feeder 58 915.20
Wide feeder 142 500.00
Nest box 51 300.00
Drinkers (Nipples) 37 825.20
Water tank with high pressure ball valve (250L) 19 950.00
Hose pipes (30meter) 2 052.00
Drainage pipes 4 275.00
Costs of Rabbit house structure
This is will vary depending on the amount of interior renovation in the existing building
TOTAL FIXED ASSETS CAPITAL EXPENDITURE R 1 993 068.34
Breeding Stock4 279 072.00
Breeding Does 259 920.00
Breeding Cucks 19 152.00
TOTAL CAPITAL EXPENDITURE R 2 272 140.34
Overdraft Facility / Production Loan R 485 558.73
3 The costs quoted in this section are valid as at the date of publishing this Information Sheet
4 part of start-up capital – can be allocated to long-term loan amount or production loan/overdraft based on requirements of financier
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Return on Investment Summary
Products & Revenue Units Revenue/month CAPEX -2 065 590,09R
Rabbit Carcass 6 000 240 000,00R Revenue - Year 1 1 230 480,00R
Rabbit Skin 4 000 26 200,00R Revenue - Year 2 3 278 348,14R
Rabbit Manure 3 632 7 264,00R Revenue - Year 3 3 674 847,90R
Vermicompost - -R Revenue - Year 4 3 983 813,23R
- -R Revenue - Year 5 4 318 453,54R
- -R
- -R
- -R CAPEX 2 065 590,09R
- -R OPEX (p.a) -1 400 376,88R
- -R Cost of Money(p.a) -456 491,82R
- -R Annual Revenue 3 674 847,90R
- -R Annual GM (Rand) 1 817 979,19R
- -R EBITDA 2 274 471,02R
Total Revenue Potential / Month 273 464,00R Debt Service Ratio 4,98
IRR 108,70%
ROI (EBITDA 5yr av) 88,01%
Simple Payback 1,01
RABBIT FARMING SUMMARY - based on 100% capacity achieved at 3rd yr
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Concluding Remarks
This project will have multiple developmental impact that include with no limitations:
- Creating new employment opportunities (targeted at women, youth and people with disability) – this
achievable because of the relative ease of farming with rabbits than other livestock
- New skills will be acquired by employees in both the area of Rabbit Farming Breeding (including
rabbit manure preparation) as well as Rabbit Skin Tannery
- Creating new Smallholder Farmers/New Enterprises (beneficiaries)
- Provide Smallholder Farmers with access to new market opportunities (including the rabbit farmers that
are not included in the PROGRAMME)
- New Revenue generation, from Rabbit Meat, from Rabbit Skins and from Rabbit Manure – and
potentially Rabbit Urine trade
- Effective use of land – with the farming technique that generate 36-50 tons per hectare (e.g. 100 Doe
generate 600 market rabbit monthly that produce ~900kgs from only 250m2 – 180m2)
- Environmental Impact – through the use of high quality organic (cold) fertiliser in the agriculture sector
as well as limiting land degradation through the commercialisation of every output from the farm
- No waste generation (full value appreciation) – Rabbit Farming produces:-
o Meat - for Human Consumption
o Faeces - for Organic Manure
o Skins & Pelt - for Fur, Fashion and Fertiliser production (through waste skins)
o Urine - for Fertiliser production (later in the process)
- Introduction of a new Agricultural subsector in South Africa
- Introduction of a new developmental and empowerment model (through beneficiary upstream
ownership)
- Innovative Smallholder Farmer financing model (while crowding in local financing institutions)
- Introduction of farmworker Employee Benefit Packages (broadening the insurance sector’s participation
in the agri value chain – “crowding in”)
- Introduction of a new industry (rabbit skin tannery & rabbit manure and fertiliser)
- Employees will be employed by Lathitha Ingomso Lethu Rabbit Farms (Pty) Ltd to guarantee benefit
delivery and maximising employee benefits through economies of scale. This has a potential of being
replicated across multiple sector and not only agri-related businesses
- Potential markets can be explored through the introduction of Vermiculture at Smallholder Farmer level
- With rabbit manure high quality gas – renewable biomass electricity generation is a potential market
(where the ecosystem can supply to existing plants)
- With the facilitated financing (crowding in) through the support of other Donor Institution (locally &
Internationally); the broader financing of the subsector will be encouraged thus capacitating existing
and new farmers that are outside of this Programme. Which will in turn create new jobs
- The nutritional value of rabbit meat (being higher than any meat product available in South Africa) will
have a positive health and welfare impact to the consumers
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- Fostering Intra-Africa Trade as the largest buyers of Rabbit Meat at the moment are found across
Africa in Countries like Namibia, Mozambique, Ghana, Zambia, the Democratic Republic of Congo,
Swaziland, to mention but a few.
Lastly, we would like to take this opportunity to thank the institutions that have committed to supporting this laudable
programme – mainly from just hearing about for the first time. It is indeed comforting to see that when the internal
development and finance community calls for local institutions to take the lead in our Country’s development – such a
call can be answered through practical application of solutions.
Yours sincerely,
____________________
Lungisa DYASI
Co-Founder and Chief Executive Officer
Lathitha Ingomso Lethu Rabbit Farms (Pty) Ltd
Mobile: +27 (0) 72 010 3840 / +27 (0)81 576 3622
Fax: +27 (0)86 756 3095
Email: lungisa.dyasi@yahoo.com
Skype: lungisa.dyasi
Twitter: The_Rabbit_Guy
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Rabbit Farming Basics
Doe A female rabbit.
Buck A male rabbit.
Dam A Mother Rabbit
Sire A Father Rabbit
Breeding When you mate two rabbits together
Testing
When you check to see if the doe is pregnant or when you breed her again before
she is due to give birth
Nesting When you put a box in the hutch that is lined with hay
Kindling When the doe gives birth
Gestation period The period of time between breeding and kindling
Kits / Kitten Are the babies of a Dam / Is the baby of a Dam
Litter The bunch of bunnies (kits)
Weaning When you take the young rabbits away from the mother
Measure of Rabbitry
Measured by the number of Does (e.g. a 500 rabbit farm means a rabbit farm with
500 breeding Does)
Infrastructure Requirements
100 Breeding Does farm
3 Tier Structure: 180m2
2 Tier Structure: 252m2
Cages
4 Breeding Does per cage
4 Breeding Bucks per cage
1 Cage x for each Breeding Bucks required for Breeding/Mating
Followers/Fryers Cages: 1 Cage x 2 Breeding Does litters
Nest Boxes 1 per Breeding Doe
Waste Pans 1 for each Cage
Drinkers (Nipples) 4 drinkers per Cage
Feeders
Standard: 1 per Breeding Stock (Does & Bucks)
Wide: 2 per Breeding Doe
Water Tank 1 x 250liter per 500 Breeding Does
Frames (Structure) 1 : 4 Cages
Hose Pipes 1 x 30 metre Hose Pipe per 300 Breeding Does
Feeding
Breeding Does 80 grams per day / 100 grams when pregnant / 120 grams when lactating
Breeding Buck 80 grams per day
Followers / Fryers 55 gram average (over 6 weeks)
Average Water Consumption 3 litres per day (5 litres for lactating Dam)
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About the New Zealand White Rabbit
New Zealand White Rabbits are a breed of rabbit, which despite their name are commonly known to have been
developed in the US. The original breeds that were used are unknown, but Suarez are believed to have played
some part.
Physiology
New Zealand Whites have well-rounded bodies; slender and muscular faces with round cheeks; large, long back
feet; and small, short front pectoral muscles (Rubins). They have long perforated ears that stand straight up. Unlike
the thick, snowy fur on their bodies, their ears have shorter fur that allows the delicate pale pink of their skin to show
through. The most noticeable characteristic of New Zealand White rabbits is their bright eyes, which range in shade
from pale pink to bright ruby purple.
New Zealand White rabbits have large, broad, and muscular bodies. Bucks (males) weigh between 4-5 kilograms,
while the does (females) weigh between 4.5-5.5 kilograms pounds. In addition to their greater size, females are
distinguished by the presence of a dewlap, which is flap of fur below the chin that is pulled for a nesting box, and
stores fat during pregnancies.
Albinism
New Zealand White Rabbits have a genetic deviation called albinism. Albinism is caused by a lack of melanin, which
is a vital pigment that gives all creatures, including humans, their skin/ fur/ hair/ eye colour. The snowy coat of a
New Zealand White Rabbit is a normal length like other rabbit breed. Most New Zealand Rabbits also have a
white/pink/light brownish colour tint to their noses.
Diet
The diet of a New Zealand White Rabbit is no different than for any of other rabbit breeds. A high quality pellet
feed (protein ~ 15-16%), along with unlimited timothy hay and fresh water and exercise will maintain a healthy
individual.
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ANNEXURE A – RABBIT MEAT NUTRIONAL CHARACTERISTICS
The U.S. Department of Agriculture has stated that “rabbit is the most nutritious meat known to man.”
Here are the nutritional facts taken from USDA circular #549. Pound-for-pound, rabbit meat has FAR MORE
PROTEIN and LESS FAT than any other meat products.
PROTEIN: Rabbit has the highest
percent protein of all meats.
Protein is needed in the diet for
healthy cellular processes and
functions. The body needs protein
for tissue development, repair
and maintenance. For overall
health and proper functioning, the
human body must have protein.
FATS: Rabbit has the lowest
percent fat with 4.5%. Most
meats are high in fats.
Unfortunately they are high in the
most undesirable fat which are the
saturated fats. If you break down
the fat into its components of
saturated and unsaturated, 63%
of rabbit’s 4.5% fat is
unsaturated, the “Good”
Fat. This information can be
found in 4-H publication 4-H-
1510.
CALORIES: Rabbit meat has 795
calories per pound of meat
compared to chicken at 810, veal
at 840, turkey at 1190, lamb at
1420, beef at 1440 and pork at
2050. The lower the calories of a
food, the greater impact it has on
a positive diet. Amazingly rabbit
meat is less than half the calories
of pork, and about one half the
calories of lamb and beef.
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CHOLESTEROL: The wrong types
of cholesterol leads to many types
of heart problems. Red meat and
pork are equally high and are
often discouraged in low
cholesterol diets. Those who want
to continue to eat some form of
meat should consider rabbit which
is lower in cholesterol than chicken.
Above is a chart on this nutritional
aspect of rabbit meat from a
study by Alabama A&M University
1989.
Farm-raised rabbit meat is an all-
white meat and mild in flavour,
without having the “gamy” flavour
often associated with other animals such as water fowl or deer. It is almost cholesterol free and low in sodium and
therefore very heart patient friendly. The calcium and phosphorus contents of this meat are more than any other
meat. Phosphorus, along with calcium, helps in bone health and also helps to regulate fluids.
Rabbit meat also has other vitamins and minerals in it, which are needed by the body in small amounts. These include
iron, copper and zinc. Iron is important in the production of red blood cells and the distribution and absorption of
oxygen throughout the body. Copper is necessary for cellular growth and development and is taken in through diet
since the body cannot produce this mineral. Zinc is important to boost the immune system and calcium absorption.
Rabbit meat also contains selenium and potassium. Selenium works as an antioxidant to remove free radicals
before they can do damage to your body. Some types of cancer, as well as the ravages of aging, can be battled
with selenium. Selenium is also very important in maintaining good thyroid functioning and supporting a healthy
immune system. Potassium helps with fluid regulation and helps remove salts from the body.
Vitamin B2 or riboflavin is another nutrient found in rabbit meat which is important to keep the digestive track
healthy. It is also important in breaking down protein and fats. Another nutrient, Vitamin B12 is necessary in the
proper function of the nervous system. It is also needed in the production of protein and red blood cells. Rabbit
meat has also been recommended for special diets such as for heart disease patients, diets for the elderly whose
metabolism has slowed and digestion is compromised. Low sodium diets, and weight reduction diets, because the
meat is easily digested, has been recommended by doctors for patients who have trouble eating other meats.

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Rabbit_Farming(RF4ShFd)_Info_Sheet

  • 1. Page 1 of 16 Private & Confidential ©Ingomso Lethu 2014 A DEVELOPMENT PROGRAMME BY: LATHITHA INGOMSO LETHU RABBIT FARMS (PTY) LTD RABBIT FARMING FOR SMALLHOLDER FARMER DEVELOPMENT (RF4SHFD) INFORMATIONSHEET &INVESTMENT SUMMARY
  • 2. Page 2 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 A Brief Missive to Current and Future Primary Agri Partners SUBJECT : RABBIT FARMING INFORMATION SHEET Abstract There are some 500 million smallholder farms worldwide; more than 2 billion people depend on them for their livelihoods. These small farms produce about 80 per cent of the food consumed in Asia and sub-Saharan Africa1. Yet, like elsewhere in the world, most smallholder farmers in South Africa are characterized by poor resources such as land, labour and capital while they play an important role in poverty alleviation, especially in poor rural areas. Smallholder farmers are increasingly recognized because of their contribution to household food security – which in itself is limiting the transition of smallholders towards commercial sustainability. While it is widely accepted that the importance of agriculture in sub-Saharan Africa cannot be underestimated; with over 70% of the arable land under smallholder agriculture in the region. The sector employs more than 70% of the workforce, and is the primary source of income for rural populations, while contributing significantly to foreign exchange earnings and accounting for more than 35% of national gross domestic product. It is widely recognized that the viability of these smallholder producers is constrained by institutional obstacles which include lack of access to information, high marketing and transaction costs and low quality and lack of critical volume in the absence of bulking up arrangements, limited to no access to financial markets, limited to no access to markets, infrastructure constraints, limited access to business management sills, limited capacity development, declining productivity and inconsistent quality, risks associated with limited diversification, tenure insecurity, organisational capacity – are they organised? etc. In its paper, Smallholder farming in Asia and the Pacific: challenges and opportunities, IFAD confirms that in the midst of these overwhelming challenges often remained resilient; noting however that this “Resiliency” does not imply viability, because smallholder farmers often remain in agriculture due to a shortage of employment opportunities in non-farm activities or urban areas and a lack of required skills for a shift in occupation. This further supports the view that: “…half of the world’s hungriest people are smallholder farmers, yet the grow 70% of the world’s food.” This is largely a result of limited transitioning from smallholder farming to commercial farming as informed by the barriers noted herein. While the widely accepted definition of Smallholder Farms as being those of those with less than 2 hectares of crop land; at Lathitha Ingomso Lethu Rabbit Farm (Pty) Ltd, we advocate that the commerciality of our farming practice has a structural disconnect from a measure of size but rather the ability to achieve excessive output from effective utilisation of available (and not necessarily arable) land. 1 Smallholders can feed the world – Kanayo F. Nwanze President of the International Fund for Agricultural Development (IFAD)
  • 3. Page 3 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 Unfortunately in South Africa: “Climate-soil combinations leave only 12% of the country suitable for the production of rain-fed crops. With only 3% considered truly fertile land, South Africa falls short of other countries, such as India, where arable land covers 53% of the country. Most of South Africa’s land surface (69%) is suitable for grazing, and livestock farming is by far the largest agricultural sector in the country2.” It is in this regard that we have adopted Rabbit Farming to achieve efficiencies in the use of land, infrastructure requirement, no reliance on arable land or grazing infrastructure, etc. with some key observable benefits including:- - as small monogastric herbivore, the rabbit easily accommodates a fairly wide range of cellulose-rich foods; - it is adaptable to the family diet and food preservation techniques available on small rural and peri-urban farms; - it is highly productive in terms of offspring (kg /year dam) thanks to mating-induced ovulation, short gestation and lactation periods and great prolificacy; - it produces highly nutritious, low-fat, low-cholesterol meat; - it is easy to transport and market and the recurrent cost for maintaining animals beyond the optimum marketing age are low; - labour cost are low and the work can be done by family members: women and children, or perhaps aged or handicapped people, usually the most vulnerable and least privileged social strata, for whom rabbit husbandry, like that of other small animals, represents an attractive and remunerative occupation; - it represents a contribution to the family income; - investment is low: infrastructure and equipment can easily be put together by the breeder and not much space is needed. It in this context that a meagre 2 hectare (20 000 m2) can sustain multiple commercial sized rabbit farming operations. This achievable because a typical rabbitry housing 100 does (female rabbits) in a 2 tier structure requires 252m2 while the same amount of does is a 3 tier structure requires 180m2. In this regard, a 1 000 does operation that produces between 108 and 144 tons of meat per annum can be housed in a property ranging from 1 800m2 and 2 520m2, generating a sustainable annualised turnover. The most immediate competitor to rabbit has been said to be chicken (if at all it is necessary to view rabbit meat as competition to broiler, especially given that there is a shortage of approximately 400 000 tons of broiler supply in South Africa annually, rather than complementing or bridging the gap). In this regard, it needs to be observed that this business or model does not seek to replace chicken meat but to bridge the gap between demand and supply – that is not even filled by imports (which imports are also cause for multilateral agreement review because of the dumping practices in the industry/sector). The South African poultry meat industry, with a gross value of more than R27 billion (US$3.1 billion), is the country’s largest individual agricultural industry and contributes almost 17 percent to the total gross value of agricultural products. In 2011, South Africa slaughtered 979 million broilers that produced 1.37 million tons of broiler meat, while in 2012, production was slightly higher, i.e., 997 million broilers that produced 1.4 million tons of meat. South Africa consumed approximately 1.8 million tons of broiler meat in 2012, a rise of almost 70 percent since 2000. Broiler meat imports increased by 13 percent to 367,500 tons in 2012 from 325,052 tons imported in 2011. This is the gap that needs to be filled – which rabbit meat production proposes to fill (especially given the challenges associated with the dumping practices in the poultry imports. Put this into context; a rabbitry of a 1000 does returns an annual R6.2 Million gross value and if replicated 10 times produces R62 million annual turnover (against R27 billion poultry); again a 1000 does rabbitry produces 108 tons per annual and 1 080 tons for 10 rabbitries of the same size. 2 AGRICULTURE: Facts & Trends South Africa ~ World Wide Fund for Nature
  • 4. Page 4 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 It is clear from this analysis that rabbit meat farming will not have a negative competitive impact in the local poultry producer market besides augmenting the demand-supply gap – at least in the medium-term. Over and above just the Poultry sector, Rabbit is also an alternative protein for other livestock – all of which have supply challenges to meet the demand. Rabbit Farming: A Commercial Food Security Strategy The Rabbit Farming for Smallholder Farmer Development Programme (#RF4ShFd) is developed in the backdrop of commercially sustainable rabbit farming operation (that already has over 120 Rabbit Breeders across 4 Provinces in South Africa contracted to produces rabbits against a guaranteed off-take agreement) and therefore applies proven commercial methodologies as its core sustainability pillar. It the commercial sustainability benefits presented through a multitude of factors that rationalises Rabbit Farming as a Sustainable Food Security Strategy. These include with no limitations: - a Rabbits’ gestation period is 31 days (that is, it remains pregnant for 31 days) - commercially a Rabbit is re-bred 7 days after giving birth; therefore the cash-flow circle is an average of 31 days a consistency that is rarely found in livestock breeding, if at all - a single Rabbit produces ~6 (post mortality) kits (babies) every circle (MINIMUM). Therefore, annually a single rabbit has ~10 re-productive circles – thus producing 60 kits per annum - the Market-Ready Weight of the kits is average 1.5 kilograms - the kits reach market-ready weight in ~90 days - at a spot farm-gate price of R43.50 per kg; a single Rabbit contributes R3 915 per annum (an equivalent of R1.958 Million for a 500 breeding stock – FROM MEAT ALONE) - rabbit farming presents opportunities for other value-added by-products – such as Skin and Organic Manure - typically a farmer requires ~252m2 in order to breed with 100 Rabbits, making access to farmland easier for non-land owners. Scaling up requires a simple multiplier – meaning that for a 500 breeding stock one would typically require ~1 260m2 (252m2 x 5) - therefore, a 500 breeding stock rabbitry contributes R1 554 per Square Meter (m2) representing ~R15.540 Million per Hectare - it produces highly nutritious, low-fat, low-cholesterol meat - it is easy to transport and market and the recurrent cost for maintaining animals beyond the optimum marketing age are low. About the RF4ShFd Programme The Rabbit Farming for Smallholder Farmer Development Programme is a multi-partnership programme that we championed to ensure that Smallholder Farmers, particularly women and youth of HDI status, are provided with opportunities to participate in the Rabbit farming value-chain against an off-take agreement. The chosen contract smallholder farmers will only be required to breed rabbits (no slaughtering, etc.) to be sold live when they reach market weight with no need to engage in the processing of the rabbits, marketing, packaging, distribution, meat storage, etc. and the related regulatory compliance. Qualifying participants in the programme (e.g. with access to agricultural property (owned or leased), no prior farming experience in required, etc.) are provided with technical support, training and development, ICT Rabbit management systems, access to market through the off-take agreement, with all related operating manuals.
  • 5. Page 5 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 The Rabbit Farming for Smallholder Farmer Development (RF4ShFd) Programme seeks to redress challenges faced by Smallholder Farmers while empowering Farmworkers through the adoption of an Integrated Approach. Such Approach recognises the importance of sustainability of Smallholder Farmers as an integral part of the survival of this ecosystem but also extends to ensuring that the Farmworkers are empowered without compromising the sustainability of the farming operation; with the former being achievable through ensuring that the farmworkers have access to adequate employee benefits, permanent work opportunities and adequate training & development (through a network of partnerships). According to DAFF’s Agricultural Production Strategy there is about 1.3 million Smallholders farming on ~14 Million hectares; this means that on average a farming unit requires or uses ~10 hectares. Without considering a multitude of constraining factor, this alone is limiting the capacity to start new farming operations while rabbit farming requires only 180-252m2 for 100 breeding stock producing six (6) times market-ready stock per month (every 31 days) further producing ~1.5 times meat. While Smallholder Farmers across the globe face a myriad of challenges in their respective endeavours to achieve sustainability and commercial status; using a multi-stakeholder engagement approach, Lathitha Ingomso Lethu has developed an integrated RF4ShFd Programme that promises to deal with the following critical challenges:- - Limited Access to financial markets: The challenges of Smallholder Farmers include understanding financing & financial markets (i.e. lack of information), trading history constraints, high cost of capital due to size of the enterprises, limited collateral, etc. The off-taker has negotiated an MoU with the Land Bank Retail Emerging Markets (REM) that is a demonstration of interest to finance commercially viable Smallholder Contracted Rabbit Farmers. We still are continuing efforts to incorporate more potential funders to the system in our efforts to improve access to capital. Furthermore, the Land Bank has concluded an MoU with the Thembani International Guarantee Fund (TIGF) to provide up to 75% Guarantee for the Land Bank’s exposure. - Limited to no access to markets: Smallholder Farmers, particularly existing Rabbit farmers in South Africa, operate in silos and therefore are faced with the challenges of producing sufficient produce to meet demand. This Programme’s model allows Smallholder Contracted Rabbit Farmers to have access to markets through the guaranteed off-take – thus marginalising the costs associated with market development and the related regulatory compliance costs related to the processing of the end products to be market compliant. - Long production cycles: Livestock farming requires long periods before the livestock produce is ready for the market. Effective management of each farmer’s activities to ensure adherence to the approved farming system is critical to achieve desired yield – A rabbit farmer achieves revenue quicker than any Livestock farming practice applied in South Africa because a rabbit’s gestation period is only 31 days and the fattening period is only 90 days (with no stimulants used). - Bulking up arrangements: the inability of Smallholder Farmers to bulk up on input (feed, cages, etc.) limits them from achieving economies of scale. By incorporating a number of Smallholder Contracted Rabbit Farmers the economies of scale can be achieved for the benefit of the contract farmers.
  • 6. Page 6 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 - Limited access to business management skills: because the sub-sector (rabbit farming) is relatively new and development finance institutions have not funded the sector; the farmers that need finance tend to raise personal loans / own capital that does not come with business support. The business support relationships that are being developed with the likes of Productivity SA, Ex-Change vzw and the Sanlam Group ensures effective skills transfer to support the sustainability of the Smallholder Contracted Rabbit Farmers. - Infrastructure constraints: Access to arable land, irrigation infrastructure, grazing capacity, electricity, road, etc. infrastructure is limiting the growth of the agriculture industry particularly in the rural and peri-urban settings. Rabbit farming requires only 180-250m2 for 100 breeding stock producing a minimum of six (6) times market-ready stock per month further producing 1.5 times meat. There is no need have access to grazing capacity as the rabbits are raised in structure (that can easily be a shed in an existing farm). The size of the animal means that it can be raised in small spaces. Because they require lighting NOT heating they use little electricity and due to being small animals the can be transported quite easily. - Tenure insecurity: Land tenure is a big constraint in farming because the nature of agriculture requirements for large plots of land (in hectares) and irrigation infrastructure over a long-term to recover investment. Rabbit Farming only requires access to a building on agriculturally-zoned land (with no requirements for grazing land) and due to the size of the building required anyone may lease a property from any farm land owner – including an existing and current farming operation. - Limited access to farm management practices: these skills are generally accessible through development financing institutions and not commercial financing banks. If sourced from independent consultants, they tend to be expensive. While the off-taker provides technical rabbit farming training; other institutions such as Ex-Change vzw, ProductivitySA, Land Bank REM, TIGF, etc. have the capacity to provide farm management training to all Smallholder Contracted Rabbit Farmers. - Inadequate rabbit farm management skills (Technical): Existing Rabbit farmers do not have access to a local provider of skills from a consolidated source. We utilise standardised operating manuals, training manuals, ICT farm management system to ensure operating efficiency and effective skills transfer. - Declining productivity and inconsistent quality: These are direct challenges associated with the rabbit farming sub-sector operated in silos with no unified standard thus limiting the interest from major buyers. The centralised production management technique has enabled this Model to ensure that the Smallholder Farmers (currently ~120) have been able to produce consistent quality and efficiently use resources. Again we utilise standardised operating manuals, training manuals, ICT farm management system to ensure operating efficiency and effective skills transfer. - Risks associated with limited diversification: The limited productivity by farmers that operate in silos as that they cannot produce sufficient by-products (like Rabbit Skins and Rabbit Manure) to sell to the market. Also due to limited access to farm management practices; farmers have not maximised on mix- farming opportunities to diversify income and also use rabbit manure as a fertiliser to the other farming operation.
  • 7. Page 7 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 The application of mix-farming systems is an essential driver to the development of this programme; to ensure diversification of income streams of the farmers through:- o Rabbit Meat sales o Rabbit Manure (processed / prepared at farmer level) o Rabbit Skin sales (for further processing) - Organisational capacity: The Rabbit farming sub-sector is challenged by lack of organisation to broaden recognition and resource mobilisation. Through the organisation achieved by Smallholder Contracted Rabbit Farmers through this programme will facilitate coordination in the sub-sector. - Sustaining value-adding employment: Agriculture relies on temporary/seasonal employment thus failing to retain value throughout the life of the business and the seasonal nature also means that the employment available in prior seasons may not be available the next - thus resulting in slower productivity due to the learning curve challenges. Rabbit Farming creates permanent employment opportunities, because there is no harvesting cycles. o There are on-going negotiations with the Sanlam Group to offer employee of the farmers Employee Benefits that include Group Life and Funeral Cover once the numbers of farmers grow and are consolidated. THROUGH THIS PROGRAMME WE ARE COMMERCIALISING SMALLHOLDER FARMS OF 500 BREEDING STOCK (DOES) AND PROVIDING AN OFF-TAKE AGREEMENT AGAINST THESE FARMING UNITS.
  • 8. Page 8 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 The Basic Infrastructure Required It is critical to note that before considering Rabbit Farming, there is a need to have basic infrastructure on the farm in order to participate in the RF4ShFd Programme. This is because this is Intensive Farming and therefore requires the following infrastructure:- - Agriculture Zoning – The Land needs to be Zone accordingly - A building measuring 1 300m2 – it is also worth noting that a farmer wanting to participate does not need to own such a building and therefor may lease it - Adequate access to water – a single rabbit drinks between 3 to 5 litters of water in a single day - Adequate access to electricity – the electricity is not used for heating the Rabbitry (unlike in broiler farming) but used regulating temperature without air-conditioning and facilitating oxygen flow in the Rabbitry It is imperative to note that the building / structure on the farm may be brick and mortar or a Greenhouse. Start-up Capital Summary3 Start-up training 11 394.30 Lepus License & Tablet (incl. Training) 11 394.30 Breeding cage 1 664 856.64 Doe Cages 231 740.63 Bucks Cage 37 078.50 Followers Cage 463 481.25 Wastepan 518 569.98 2.8 meter - 3 Tier frame warren 413 986.28 Feeders 316 817.40 Standard feeder 58 915.20 Wide feeder 142 500.00 Nest box 51 300.00 Drinkers (Nipples) 37 825.20 Water tank with high pressure ball valve (250L) 19 950.00 Hose pipes (30meter) 2 052.00 Drainage pipes 4 275.00 Costs of Rabbit house structure This is will vary depending on the amount of interior renovation in the existing building TOTAL FIXED ASSETS CAPITAL EXPENDITURE R 1 993 068.34 Breeding Stock4 279 072.00 Breeding Does 259 920.00 Breeding Cucks 19 152.00 TOTAL CAPITAL EXPENDITURE R 2 272 140.34 Overdraft Facility / Production Loan R 485 558.73 3 The costs quoted in this section are valid as at the date of publishing this Information Sheet 4 part of start-up capital – can be allocated to long-term loan amount or production loan/overdraft based on requirements of financier
  • 9. Page 9 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 Return on Investment Summary Products & Revenue Units Revenue/month CAPEX -2 065 590,09R Rabbit Carcass 6 000 240 000,00R Revenue - Year 1 1 230 480,00R Rabbit Skin 4 000 26 200,00R Revenue - Year 2 3 278 348,14R Rabbit Manure 3 632 7 264,00R Revenue - Year 3 3 674 847,90R Vermicompost - -R Revenue - Year 4 3 983 813,23R - -R Revenue - Year 5 4 318 453,54R - -R - -R - -R CAPEX 2 065 590,09R - -R OPEX (p.a) -1 400 376,88R - -R Cost of Money(p.a) -456 491,82R - -R Annual Revenue 3 674 847,90R - -R Annual GM (Rand) 1 817 979,19R - -R EBITDA 2 274 471,02R Total Revenue Potential / Month 273 464,00R Debt Service Ratio 4,98 IRR 108,70% ROI (EBITDA 5yr av) 88,01% Simple Payback 1,01 RABBIT FARMING SUMMARY - based on 100% capacity achieved at 3rd yr
  • 10. Page 10 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 Concluding Remarks This project will have multiple developmental impact that include with no limitations: - Creating new employment opportunities (targeted at women, youth and people with disability) – this achievable because of the relative ease of farming with rabbits than other livestock - New skills will be acquired by employees in both the area of Rabbit Farming Breeding (including rabbit manure preparation) as well as Rabbit Skin Tannery - Creating new Smallholder Farmers/New Enterprises (beneficiaries) - Provide Smallholder Farmers with access to new market opportunities (including the rabbit farmers that are not included in the PROGRAMME) - New Revenue generation, from Rabbit Meat, from Rabbit Skins and from Rabbit Manure – and potentially Rabbit Urine trade - Effective use of land – with the farming technique that generate 36-50 tons per hectare (e.g. 100 Doe generate 600 market rabbit monthly that produce ~900kgs from only 250m2 – 180m2) - Environmental Impact – through the use of high quality organic (cold) fertiliser in the agriculture sector as well as limiting land degradation through the commercialisation of every output from the farm - No waste generation (full value appreciation) – Rabbit Farming produces:- o Meat - for Human Consumption o Faeces - for Organic Manure o Skins & Pelt - for Fur, Fashion and Fertiliser production (through waste skins) o Urine - for Fertiliser production (later in the process) - Introduction of a new Agricultural subsector in South Africa - Introduction of a new developmental and empowerment model (through beneficiary upstream ownership) - Innovative Smallholder Farmer financing model (while crowding in local financing institutions) - Introduction of farmworker Employee Benefit Packages (broadening the insurance sector’s participation in the agri value chain – “crowding in”) - Introduction of a new industry (rabbit skin tannery & rabbit manure and fertiliser) - Employees will be employed by Lathitha Ingomso Lethu Rabbit Farms (Pty) Ltd to guarantee benefit delivery and maximising employee benefits through economies of scale. This has a potential of being replicated across multiple sector and not only agri-related businesses - Potential markets can be explored through the introduction of Vermiculture at Smallholder Farmer level - With rabbit manure high quality gas – renewable biomass electricity generation is a potential market (where the ecosystem can supply to existing plants) - With the facilitated financing (crowding in) through the support of other Donor Institution (locally & Internationally); the broader financing of the subsector will be encouraged thus capacitating existing and new farmers that are outside of this Programme. Which will in turn create new jobs - The nutritional value of rabbit meat (being higher than any meat product available in South Africa) will have a positive health and welfare impact to the consumers
  • 11. Page 11 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 - Fostering Intra-Africa Trade as the largest buyers of Rabbit Meat at the moment are found across Africa in Countries like Namibia, Mozambique, Ghana, Zambia, the Democratic Republic of Congo, Swaziland, to mention but a few. Lastly, we would like to take this opportunity to thank the institutions that have committed to supporting this laudable programme – mainly from just hearing about for the first time. It is indeed comforting to see that when the internal development and finance community calls for local institutions to take the lead in our Country’s development – such a call can be answered through practical application of solutions. Yours sincerely, ____________________ Lungisa DYASI Co-Founder and Chief Executive Officer Lathitha Ingomso Lethu Rabbit Farms (Pty) Ltd Mobile: +27 (0) 72 010 3840 / +27 (0)81 576 3622 Fax: +27 (0)86 756 3095 Email: lungisa.dyasi@yahoo.com Skype: lungisa.dyasi Twitter: The_Rabbit_Guy
  • 12. Page 12 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 Rabbit Farming Basics Doe A female rabbit. Buck A male rabbit. Dam A Mother Rabbit Sire A Father Rabbit Breeding When you mate two rabbits together Testing When you check to see if the doe is pregnant or when you breed her again before she is due to give birth Nesting When you put a box in the hutch that is lined with hay Kindling When the doe gives birth Gestation period The period of time between breeding and kindling Kits / Kitten Are the babies of a Dam / Is the baby of a Dam Litter The bunch of bunnies (kits) Weaning When you take the young rabbits away from the mother Measure of Rabbitry Measured by the number of Does (e.g. a 500 rabbit farm means a rabbit farm with 500 breeding Does) Infrastructure Requirements 100 Breeding Does farm 3 Tier Structure: 180m2 2 Tier Structure: 252m2 Cages 4 Breeding Does per cage 4 Breeding Bucks per cage 1 Cage x for each Breeding Bucks required for Breeding/Mating Followers/Fryers Cages: 1 Cage x 2 Breeding Does litters Nest Boxes 1 per Breeding Doe Waste Pans 1 for each Cage Drinkers (Nipples) 4 drinkers per Cage Feeders Standard: 1 per Breeding Stock (Does & Bucks) Wide: 2 per Breeding Doe Water Tank 1 x 250liter per 500 Breeding Does Frames (Structure) 1 : 4 Cages Hose Pipes 1 x 30 metre Hose Pipe per 300 Breeding Does Feeding Breeding Does 80 grams per day / 100 grams when pregnant / 120 grams when lactating Breeding Buck 80 grams per day Followers / Fryers 55 gram average (over 6 weeks) Average Water Consumption 3 litres per day (5 litres for lactating Dam)
  • 13. Page 13 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016
  • 14. Page 14 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 About the New Zealand White Rabbit New Zealand White Rabbits are a breed of rabbit, which despite their name are commonly known to have been developed in the US. The original breeds that were used are unknown, but Suarez are believed to have played some part. Physiology New Zealand Whites have well-rounded bodies; slender and muscular faces with round cheeks; large, long back feet; and small, short front pectoral muscles (Rubins). They have long perforated ears that stand straight up. Unlike the thick, snowy fur on their bodies, their ears have shorter fur that allows the delicate pale pink of their skin to show through. The most noticeable characteristic of New Zealand White rabbits is their bright eyes, which range in shade from pale pink to bright ruby purple. New Zealand White rabbits have large, broad, and muscular bodies. Bucks (males) weigh between 4-5 kilograms, while the does (females) weigh between 4.5-5.5 kilograms pounds. In addition to their greater size, females are distinguished by the presence of a dewlap, which is flap of fur below the chin that is pulled for a nesting box, and stores fat during pregnancies. Albinism New Zealand White Rabbits have a genetic deviation called albinism. Albinism is caused by a lack of melanin, which is a vital pigment that gives all creatures, including humans, their skin/ fur/ hair/ eye colour. The snowy coat of a New Zealand White Rabbit is a normal length like other rabbit breed. Most New Zealand Rabbits also have a white/pink/light brownish colour tint to their noses. Diet The diet of a New Zealand White Rabbit is no different than for any of other rabbit breeds. A high quality pellet feed (protein ~ 15-16%), along with unlimited timothy hay and fresh water and exercise will maintain a healthy individual.
  • 15. Page 15 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 ANNEXURE A – RABBIT MEAT NUTRIONAL CHARACTERISTICS The U.S. Department of Agriculture has stated that “rabbit is the most nutritious meat known to man.” Here are the nutritional facts taken from USDA circular #549. Pound-for-pound, rabbit meat has FAR MORE PROTEIN and LESS FAT than any other meat products. PROTEIN: Rabbit has the highest percent protein of all meats. Protein is needed in the diet for healthy cellular processes and functions. The body needs protein for tissue development, repair and maintenance. For overall health and proper functioning, the human body must have protein. FATS: Rabbit has the lowest percent fat with 4.5%. Most meats are high in fats. Unfortunately they are high in the most undesirable fat which are the saturated fats. If you break down the fat into its components of saturated and unsaturated, 63% of rabbit’s 4.5% fat is unsaturated, the “Good” Fat. This information can be found in 4-H publication 4-H- 1510. CALORIES: Rabbit meat has 795 calories per pound of meat compared to chicken at 810, veal at 840, turkey at 1190, lamb at 1420, beef at 1440 and pork at 2050. The lower the calories of a food, the greater impact it has on a positive diet. Amazingly rabbit meat is less than half the calories of pork, and about one half the calories of lamb and beef.
  • 16. Page 16 of 16 Private & Confidential ©Lathitha Ingomso Lethu 2016 CHOLESTEROL: The wrong types of cholesterol leads to many types of heart problems. Red meat and pork are equally high and are often discouraged in low cholesterol diets. Those who want to continue to eat some form of meat should consider rabbit which is lower in cholesterol than chicken. Above is a chart on this nutritional aspect of rabbit meat from a study by Alabama A&M University 1989. Farm-raised rabbit meat is an all- white meat and mild in flavour, without having the “gamy” flavour often associated with other animals such as water fowl or deer. It is almost cholesterol free and low in sodium and therefore very heart patient friendly. The calcium and phosphorus contents of this meat are more than any other meat. Phosphorus, along with calcium, helps in bone health and also helps to regulate fluids. Rabbit meat also has other vitamins and minerals in it, which are needed by the body in small amounts. These include iron, copper and zinc. Iron is important in the production of red blood cells and the distribution and absorption of oxygen throughout the body. Copper is necessary for cellular growth and development and is taken in through diet since the body cannot produce this mineral. Zinc is important to boost the immune system and calcium absorption. Rabbit meat also contains selenium and potassium. Selenium works as an antioxidant to remove free radicals before they can do damage to your body. Some types of cancer, as well as the ravages of aging, can be battled with selenium. Selenium is also very important in maintaining good thyroid functioning and supporting a healthy immune system. Potassium helps with fluid regulation and helps remove salts from the body. Vitamin B2 or riboflavin is another nutrient found in rabbit meat which is important to keep the digestive track healthy. It is also important in breaking down protein and fats. Another nutrient, Vitamin B12 is necessary in the proper function of the nervous system. It is also needed in the production of protein and red blood cells. Rabbit meat has also been recommended for special diets such as for heart disease patients, diets for the elderly whose metabolism has slowed and digestion is compromised. Low sodium diets, and weight reduction diets, because the meat is easily digested, has been recommended by doctors for patients who have trouble eating other meats.