South African ostrich farmers expect to be affected financially, with a notice that their exports to the U.S. will incur a 30% tariff beginning on August 1 as a result of a delayed trade agreement. The tariff directly affects the trade in ostrich leather which is an especially lucrative trade for South Africa and an historic one in Oudtshoorn, the town in the semi-arid Karoo region of South Africa known as the “ostrich capital of the world.”
Close to 70 percent of ostrich products from feathers to meat and leather come from South Africa where about 200 farmers located in Oudtshoorn produce more than half. They belong to Cape Karoo International (CKI), a significant exporter.
Why Is Texas So Dependent on South African Ostrich Leather?
The cowboy boot industry in Texas, especially for brands like Lucchese, Justin and Rios of Mercedes, relies a great deal on South African ostrich leather. These three brands make up 20% of CKI’s exports. According to Ryan Vaughan of Rios of Mercedes, ostrich leather is the best skin to build boots from because of its properties of durability and flexibility.
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Can the U.S. Replace South Africa’s Supply?
No. “The U.S. does not have enough ostriches.” says CKI Managing Director Francois de Wet. Even if the boots are manufactured in the U.S., the raw leather must come from South Africa due to the climate and history of the industry that raises ostriches.
Who Will Bear the Cost?
With ostrich leather already selling for $20 per square foot; it is not feasible to just absorb the whole tariff. De Wet anticipates that the cost will likely be passed on to South African exporters, U.S. manufacturers and consumers and the industry may face long term shrinkage if a solution is not found soon.
South Africa’s ostrich farmers are concerned about history repeating itself, similar to previous crises when the industry’s back was against the wall, they face trade pressure rather than pressure from fashion.
