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Your investment will be recouped.
Because you will hunt based on auction replacement cost, you may be able to get your investment back over as few as 1 or 2 hunting trips, depending on what species you want to hunt. See 2 scenarios for 1 or 2 trips savings below.
DISCLAIMER: Suiderland DOES NOT blame or shame operators who charge their prices. Read more about that here.
Two scenarios, where we use the difference between average operator prices, and auction prices, are shown here.
It can be seen that even with moderate hunting, 2 hunting trips will recoup the investment.
8 larger species in one trip will also recoup the investment.
*Recoupment excluding selling of unused weeks discussed under revenue.
On Feb 14, '24 we received a request to quote for a 47" buffalo bull. A hunting ranch quoted $20K (plus the usual costs, $400 per night etc.)
At a recent auction ending Oct 12 '23, reported here, we found a 47 2/8" bull for $9,200. You can hunt an animal on the property and pay replacement cost plus 5% admin fee, or if such animal is not available on the property, have it brough in before your hun
A brief Internet search showing comparison between Texas ranch, SA ranch, and auction prices. While hard to compare apples with apples, with limited size, age and sex detail available on price lists, an attempt was made to be fair and we believe the proportions are true.
Texas vs SA ranch prices: the $2,200 return travel to South Africa can be recovered by the savings on one species
SA ranch vs auct
Property Description
Target property
Remote property in the Northwest, Northern Cape or Limpopo "Bushveld" of South Africa, with minimum existing infrastructure, and minimum evidence of human activity, such as buildings, power cables, agriculture, and nearby settlements. No perfect properties will be found, especially with regards to limited infrastructure. In fact several of the intended developments are very likely to exist. Examples are the 8 foot wildlife fencing, water holes, and some farmers residence and storage buildings, which one could use for initial occupation and later manager's quarters.
Access will be around 4-6 hours by road from Johannesburg International airport. A dirt airstrip will be built to facilitate quick and easy access by light aircraft in less than 2 hours.
Property sizes vary wildly, thus the target property will not be an exact multiple of 2,000 acres. While a single ~2000-acre property will be quicker to fund and acquire, larger properties are desirable for several reasons, including more diversity of habitat and thus wildlife species, and being less impacted by neighbor behavior. Larger properties will also have cost advantages by sharing costs of management and infrastructure such as a landing strip, a slaughtering facility, and the perimeter wildlife fence. Because no property will be an exact multiple of 2000 acres, the minimum portion size will be set at 1800 acres and may well exceed 2000. Lodges will be spaced as far apart as practical allowing for existing infrastructure, terrain and desirability of locations. There will be no fences between portions, and owners will be able to visit and hunt the full extent of the property, excluding a marked perimeter around other lodges on the property.
Structural field improvements to the property will include (some of which will already be established)
- Game fence (around 8 feet) around property
- Game watering points, supplied by boreholes and solar driven pumps.
- Blinds for game viewing and bowhunting.
- Dirt landing strip of around 4000 to 5000 ft
- Minimum dirt roads for game viewing
- Low-footprint minimum slaughtering facility.
Below are some links to properties which all partially meet the criteria for the ideal property. Finding properties with a small footprint and with limited development is a challenge, as you will see from below. Ironically the advertisements often focus on exactly those improvements that we want to avoid, as not only do we not want them, they inflate the prices. There will be ways to use overdeveloped infrastructure innovatively to support our mission somehow.
https://www.africagamefarms.com/game-farms/beautiful-4120-ha-game-farm-near-vryburg/
https://www.africagamefarms.com/game-farms/gorgeous-5000-ha-game-farm-in-schoemanskloof/
https://www.africagamefarms.com/game-farms/gorgeous-4800-ha-game-farm-in-pontdrift-region/
https://www.africagamefarms.com/game-farms/gorgeous-3000-ha-game-farm-near-roedtan/
Swartwater. 3 077 ha. Game Farms (Wildlife Ranches) for sale, South Africa. (gamefarmnet.co.za)
Hunting lodge
The self-catering hunting lodge will be a minimum-footprint "glamping" setup. The idea is to blend in with the surroundings while providing adequate comfort and facilities. Structures will be durable, and low-maintenance.
Three permanent tents with concrete or wooden deck floors will accommodate four single beds each. Each tent has an ensuite bathroom with a shower and toilet.
An enclosed kitchen structure (material TBD) will house a food preparation area, dishwashing area with hot water, LPG cooktops, and storage for kitchenware and tools.
Electrical power for water pressure, lighting, electronics, and refrigeration, will be supplied by solar and batteries,
A backup LPG-powered generator will be available. LPG water heaters will provide hot water.
A storage/utility area structure (material TBD) will house tools and equipment, including generator and LPG.
Water will be provided by water tank, replenished from borehole water.
A thatched "lapa" for sun and rain protection, with dining table, and nearby open fire area..
A game viewer will be provided for each camp.
A 3-seater "side-by-side" will be available at each camp.
Hunting
Sustainable, affordable and equitable hunting by all owners require a policy.
This policy is likely not finally settled, and over time, more ways of allowing and managing hunting may come to light. Owner representatives will review and propose/enact policies as their limits of authority determine. It stands to reason that access/occupation of the property does not automatically allow unrestricted hunting.
A shareholder-representative body will, in consultation with experts from time to time, assign hunting categories, based on species, sex, size, specific herds, or specific individuals. Categories will include no-hunt, over-populated, in-equilibrium, and under-populated. No-hunt categories may be for a set period, around, for instance, reproduction seasons.
Note that South African law requires that non-South African hunters be accompanied by a certified professional hunter (PH). The property manager will be a PH. This PH will also advise and help ensure that hunting practices cause the least possible impact to other hunters or their non-hunting guests' experiences. All bowhunters know that sitting tight after an even well-placed shot, will not only avoid an unnecessary adrenaline-fueled chase, but also not cause the rest of the animals to become too skittish for the next hunter to have a fair chance. While shooting from vehicles is a topic that should be further contemplated and possibly disallowed under certain rules, it is true that even when shooting from a vehicle, it can have less impact to animals skittishness if there is no immediate commotion after the shot. The author has personally shot a crippled Zebra in the middle of a vehicle-tame herd with an unsilenced rifle and, after looking up after the shot for a few moments, the herd continued grazing, to the point that it frustrated an impatient crew, waiting for the herd to slowly move on.
Owners will hunt available species and pay replacement cost (determined from recent auction prices, from for example African Wildlife Auctions), plus an admin fee depending on its hunting category, namely -10% for over-populated, +10% for in-equilibrium, +15% for animals specifically brough in for a hunt, and for under-populated animals. Owners can have specific animals brought in ahead of their hunt. Hunting quotas per week-share per category/species will be determined annually. Hunters will recoup some of their cost by having the meat they do not consume sold through established channels. Admin fees are reviewed during the annual budget to try and ensure enough revenue to cover operating costs.
Excess animals threatening the habitat with over population will, if not adequately controlled by owner-hunters, be sold on auction, or professionally harvested for meat.
Additional off-property hunting Species/sizes not available for hunting on the property, including big-five species, can be hunted at nearby properties where available. We will use our management team, group negotiation, local knowledge and connections to get owners hunting opportunities in the area, and in the region, on operations that are fully geared, at prices likely more than what on-property costs will be, but negotiated te be lower than the typical going rates for international hunters. Suiderland has been a proponent, and driving an initiative to convince operations to take in more overseas hunters at lower prices. We believe there is a whole strata of American hunters who are not catered for. There is a false stereotypical perception of the American hunter needing extreme comfort and pampering, and that they should be billed accordingly. Suiderland knows that the average American tag hunter works much harder than their South African counterpart. Suiderland is endeavoring to show the industry that higher numbers of overseas hunters, hunting more than just the biggest of trophies, is a win-win al round.
Hunting seasons
Legally, South Africa's private reserves are allowed to hunt year-round, and most do. The concept of hunting season is thus not not legal, but for practical reasons, to do with seasonal climate considerations.
South Africa, aside from the Western Cape, has a summer rainfall season. The graph above, for the Northern Limpopo province, shows moderate rainfall in summer, with average high temperatures. From this the generally agreed hunting seasons that apply to South Africa are;
- The peak hunting season during May, June, July and August, with lower temperatures and very little precipitation.
- The regular hunting season during March, April, September and October.
- The off-season hunting season with higher temperatures and precipitation, during November, December, January and February.
Practical considerations include;
- Breeding season for some species. Some species may be in a "no-hunt" state for part of the off-season.
- Heat. The graph shows average high temperatures but it can be hotter (or cooler) on a particular week. Heat exhaustion of the hunter is a factor that should be considered. Another consideration is that trophies and meat can spoil quicker, something which good logistic will largely neutralize.
- Rain/water. Aside from the obvious impact on mobility and discomfort, water in the field means that wildlife movement is much more unpredictable and depending on waterholes to locate game is not useful. (mineral supplement feeders can mitigate the impact somewhat).
- Foliage. Denser foliage during and after the rainy season means that walk and stalk efforts can become more challenging due to visibility impact.
Revenue and expenses
The intent is to break even on operations, with some reserves for unplanned issues
An annual budget will be set up to adjust admin fees and other owners and 3rd party costs, with first priority to lower owners cost, if third party revenue, such as selling unused weeks and hunts to third parties, selling excess game, etc. is possible.
It will take time to get reliable budget numbers so the initial budget will be set conservatively to avoid shortfall. Later budgets can be fine-tuned. Budget surplus/profit taxation need to be carefully considered and is TBD.
MORE TO FOLLOW: Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Typical Species
Leopard (Panthera pardus). They are there, you can't keep them out, and you can't keep them in. One of the species that are even occasionally spotted in the suburbs. Their numbers are affected by active eradication to protect livestock in the area.
CLICK ON IMAGE FOR MORE INFO
Cape Buffalo ( Syncerus caffer ). As disease carriers to cattle, they were limited to large National parks, until they acquired hunting value, and made a come-back over the last decades through careful breeding and control, with prices having come down significantly over the last twenty years.
CLICK ON IMAGE FOR MORE INFO
Zebra ( Equidae equus ) African symbol. As prolific grazers competing with cattle, they mostly unwelcome on cattle farms. Numbers need to be kept in check even on a wildlife reserve. (Have you ever seen a skinny Zebra?)
CLICK ON IMAGE FOR MORE INFO
Next steps & proposed timeline
** TIMELINE TO ACQUISITION WILL BE VOLATILE UNTIL FUNDING FOR AS-IS PROPERTY SECURED **
** TIMELINE TO DEVELOPMENT COMPLETION WILL BE VOLATILE UNTIL FULLY FUNDED **
We are currently in the feasibility determination phase, which is to gauge investor interest by acquiring leads, communicating and clarifying the concept, while monitoring potential investors' level of commitment as follows:
- Just browsing - this the assumed level of interest for folks who have provided their contact details to learn more.
- Interested, pending further details and/or funding - it really looks like something I would be interested in and may be able to afford soon.
- Funding available and interested pending further details - It looks like something I would be interested in, pending some remaining clarifications. I have the necessary liquid funds at reasonably short notice
- Concept is clear and acceptable, and the funds are available. I will fund pending review of final shareholders agreement and related documentation.
- Ready to sign/fund - the concept and the documentation is acceptable and the funds are ready. I am ready to sign and fund.
Operator prices are justified
International dollars saved Southern Africa's wildlife.
Despite our concept for lower hunting costs, and our comparisons with operator prices to illustrate our value proposition, we believe that operators charge the rates they need to for survival. We support the industry to continue the good work, with the help of foreign dollars, to reverse the demise of African plains animals. We want no part in damaging that industry and in fact promote such operations, especially for hunters that want to do one hunt or their first Safari, and have no desire for repeated returns (yet).
We are not aware of hunting operations making huge profits, and have personally experienced the challenges having developed 2 hunting properties, one of which we still market for. All people involved in the conception, financing, development, and management of these operations are motivated by passion for African wildlife, to the extent that most rarely if ever turn a profit, especially considering cost of capital. As was the case with Suiderland, these properties are very often subsidized by owners' other businesses. Visitors and clients' contribution will at best help to break even on operating costs.
Reasons why the safari operations have a hard time turning a profit include cost of capital, and the unreliable and sporadic hunting market. Since COVID-19 several property owners have in fact given up om hunting, and have started looking at other ways to utilize the property, including reverting back to cattle farming, and when water is available, clearing the savannah for irrigated crops.
It is Suiderland's stated mission to work for a more reliable stream of overseas hunters, which will then in turn allow for the lowering of prices.