A comparative economic case study of switching from cattle farming to game ranching in the Northern Cape Province

Switching from cattle farming to game ranching has become commonplace in the Northern Cape Province. The need to assess the financial implication of such a switch arose from the question of whether game ranching is financially superior to cattle farming in this province. Comparative economics was used in this case study to analyse the profitability, as well as the financial feasibility of three scenarios to determine the financial implications of such a switch. Estimations were based primarily on hunting (biltong and trophy) and live game auctions, the two pillars of the game industry in this province. Results indicate that game ranching can be more profitable, i.e. generate a higher gross margin per hectare than cattle, although not in all cases. Despite this higher profitability, the results indicate further that it is not always financially viable to convert from cattle farming to game ranching, due to the high level of capital investment required. This may have tremendous cash flow implications for the first few years of operation.