In the early 1990s, a farming craze took off across the United States & Australia. Investors were convinced they had found the future of agriculture—sustainable, high-profit, and “revolutionary”. This was the rise of the ostrich industry.
At first glance, it seemed like a no-brainer. Ostrich meat was just like beef, only leaner, higher in protein, and lower in cholesterol.
Plus, ostriches were incredibly efficient.
They needed less feed, less water, and less land than cattle, making them a dream for environmentally friendly farming. Add in extra income from feathers, leather, and eggs, and the promise of massive profits had investors rushing in.
And rush in, they did! By 1995, the U.S. alone had between 2,500 & 3,000 ostrich farms, with Texas leading the way. Australia wasn’t far behind, with over 1,000 farms. Investors poured in, paying between $30,000 and $80,000 for breeding pairs in the U.S. and up to $50,000 AUD in Australia.
The global market was estimated at over $2 billion!
Then, almost overnight, it all fell apart.
The problem? Consumer demand—or rather, the lack of it. Despite all the hype, ostrich meat never caught on. Without real consumer demand, prices collapsed.
Then came the reality of farming these giant birds. Unlike cattle, ostriches weren’t easy to handle.
They could sprint at 45 mph, making them hard to contain. They were prone to stress, which impacted growth and reproduction. Many farmers had no idea what they were getting into, leading to high mortality rates and skyrocketing costs.
As more farms opened, the market was oversaturated. The speculative bubble burst, and prices for breeding pairs crashed.
By the late ’90s, the industry was all but dead. 1000’s of farms abandoned, & investors who poured fortunes into it were left with nothing.
What does this have to do with property? Everything.
The ostrich industry collapsed because it was built on speculation, not real demand. Investors got caught up in the hype without considering the fundamentals.
Today’s property market is full of trends—Airbnb gold rushes, the latest “hotspot” boom suburbs, tax saving gimmicks?!
Real, sustainable success in property investing isn’t about chasing fads. It’s about strategy, due diligence, & investing where real demand exists.
At S&L, we don’t follow trends, we follow proven investment fundamentals.
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