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The Heart of the Klein Karoo: When Tariffs Threaten Livelihoods

NewsThe Heart of the Klein Karoo: When Tariffs Threaten Livelihoods

In the sun-drenched Klein Karoo, a region synonymous with the majestic ostrich, a quiet anxiety is simmering. It’s not the familiar concern of drought or market fluctuations, but the looming shadow of proposed 30% tariffs by the United States, threatening to dismantle a trade relationship cultivated over 40 years. For the hundreds of families whose lives are intricately woven into South Africa’s R200 million ostrich export trade, this isn’t just about economics; it’s about their very survival.

Oudtshoorn at the Centre

Oudtshoorn, often dubbed the “ostrich capital of the world,” stands at the epicentre of this concern. It’s here that Cape Karoo International (CKI), the agri-collective processing and distributing for some 300 farms across the Western and Eastern Cape, operates. These farms, predominantly family-run, represent generations of expertise, dedication, and a deep connection to the land and its unique feathered inhabitants.

A Wider Rural Impact

Dr. Francois de Wet, managing director of CKI, speaks with a measured gravity. He acknowledges the company’s 1,000 direct employees, but his concern extends far beyond the factory walls. “Over and above the people in our employ,” he says, “the clients we represent have people and families on their farms, and it’s important for them to feel protected.” The broader South African ostrich industry, which contributes significantly to the rural economy, is estimated to create around 20,000 direct jobs. A blow to CKI’s US exports directly impacts this vast network of human lives.

A Labour-Intensive Heritage

Consider the daily rhythm of an ostrich farm in the Klein Karoo. From the delicate handling of eggs in the incubators to the careful rearing of chicks, and eventually to the processing of the birds for their prized leather, feathers, and meat, every step is labour-intensive. Exports include everything from luxury leather to feather dusters and pet treats — a surprisingly diverse product line that supports jobs far beyond the farm gates. It’s a heritage passed down through generations, supporting not just the immediate family but also farmhands, veterinarians, feed suppliers, and numerous small businesses in the surrounding towns.

The Irreplaceable US Market

The particular vulnerability lies in ostrich leather. The US market, with its enduring demand for high-end cowboy boots, is a unique and irreplaceable customer. South Africa remains the sole supplier of the specific tanned leather favoured by brands like Lucchese and Justin Boots. While 80% of CKI’s ostrich leather finds its way to luxury markets elsewhere, the US share, though sensitive information, is a “significant amount of our annual turnover.” Losing this could force painful adjustments.

Uncertain Negotiations and a Narrow Window

For now, the strategy is cautious. CKI is engaging with its US clients, hoping to cushion the blow, and holding out hope that the South African Government of National Unity can avert the tariffs by August. But the prospect of a 30% tariff, potentially escalating to 40% if retaliatory tariffs related to BRICS materialise, casts a long shadow. As Dr. De Wet grimly notes, “if additional tariffs are imposed on existing tariffs and costs escalate beyond 30%, then it becomes very difficult to feasibly remain in the US market.”

 

A Way of Life at Risk

Diversifying markets is a long-term goal, but not a quick fix. The unique demand and established supply chains in the US make a rapid shift challenging. Previous efforts to build alternative markets, such as stimulating demand for dress-shoe leather in Europe — notably in fashion-forward Italy — have failed to gain traction. For the farmers, the thought of reducing the roughly 20,000 ostriches processed annually by CKI is not just an economic decision; it’s a profound disruption to a way of life.

A Community in Waiting

In the quiet communities of the Klein Karoo, the threat of these tariffs is a tangible one. It’s in the anxious conversations around dinner tables, the tightened budgets, and the uncertain glances towards the future. This is the human cost of distant trade disputes, where the fate of an iconic South African industry, and the thousands of livelihoods it sustains, hangs precariously in the balance.

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