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ILLEGAL TRADE vs LEGAL
  TRADE IN RHINO HORN
           ROGER PORTER

          Acknowledgements
  David Cook, Myles Mander & Michael
               Eustace
Status Quo
ILLEGAL TRADE – the market
•   Established in the Far East
•   Used as a TCM
•   Cultural and traditional beliefs
•   Although illegal it is not immoral to trade and
    use.

Therefore accept reality.
ILLEGAL TRADE - supply
• From criminal activities (poaching,
  pseudo-hunts, theft, fraud + corruption)
• Criminal wholesalers and retailers pay
  high prices
• Commodity is becoming more scarce
ILLEGAL TRADE - incentives
• Profitable and lucrative
• Risks are manageable (cautious,
  opportunistic, bribe)
• Can horde and speculate
ILLEGAL TRADE - costs
• Poacher (rural or sophisticated)
• Equipment
• Bribes (field ranger, security forces,
  customs official, owner)
• Transport (international)
• Fine / imprisonment
ILLEGAL TRADE - Risks
•   Apprehended + charged
•   Prosecuted and convicted
•   Confiscation
•   Asset Forfeiture

PRICE: = US$ 20 000 / kg (wholesale).
Retail = +US$ 40 000 / kg (143 doses / kg)
ILLEGAL TRADE - PROCEEDS
  $$$$$$ from sale of poached horns
         accrue to criminals.
LEGAL TRADE - Strategy
TWO PRONGED:
• Replace illegal market with a legal
  trade
1.   CSO
2.   Set price / package
3.   Manage price (do not lower price!)
4.   Manage supply on offer
5.   Avoid incentives for speculators
6.   Audit
LEGAL: TRADE - Strategy
•    Improved anti-poaching and illegal
     trade deterrents.
1.   No ‘silver bullet’
2.   Law enforcement
3.   Laws + Regulations
4.   Penalties
5.   Vigilance at borders
6.   Economic instrument to trade
LEGAL TRADE - Supply
• Natural mortalities of white rhino
• Stockpiles
• Acquired by courts of law



Note: harvested horns will not be
 accepted for trade.
LEGAL TRADE – Certification
•   DNA analysis
•   Chemical analysis (isotope)
•   Transponder inserted
•   Central database

Fraudulent horns will therefore be
  excluded.
LEGAL TRADE - Operation
• Verify buyers
• Hold 3 / 4 sales / year
• Offer horn as a ‘package’ @ set price
• Clean horns only
• Manipulate price between sales
• Export horns + CITES certification
Note: No auction, No flooding of market
LEGAL TRADE - PROCEEDS
  $$$$$ from sale of rhino horns accrue to
  conservation agencies and private rhino
  owners, allowing for:
• More effective law enforcement to protect
  rhinos (and other biodiversity).
• PA expansion especially for rhinos.
Desired State
Lessons Learnt – add value!
                                                             22000   960

                  14505
                                                                     725
                                        a
                                    fric
Number of Rhino




                                                                     Asset value ($ Million)
                                  A
                             th
                          Sou



                                     Re
                                        st   of A
                                                  f   rica


                                                                     150
                  3200                                        3000


 Ca. 1980                                                        2012
LESSONS LEARNT
             INCREASE VALUE!!!!
RSA experience:
• Allowed rhinos to be owned by private safari
  parks
• Allowed live animals to be traded
• Allowed trophy hunting of rhinos
• ADD TRADE IN RHINO HORN
Other rhino states.
• Rhinos nearing extinction as no value was
  added!
D2 s5l3

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D2 s5l3

  • 1. ILLEGAL TRADE vs LEGAL TRADE IN RHINO HORN ROGER PORTER Acknowledgements David Cook, Myles Mander & Michael Eustace
  • 3. ILLEGAL TRADE – the market • Established in the Far East • Used as a TCM • Cultural and traditional beliefs • Although illegal it is not immoral to trade and use. Therefore accept reality.
  • 4. ILLEGAL TRADE - supply • From criminal activities (poaching, pseudo-hunts, theft, fraud + corruption) • Criminal wholesalers and retailers pay high prices • Commodity is becoming more scarce
  • 5. ILLEGAL TRADE - incentives • Profitable and lucrative • Risks are manageable (cautious, opportunistic, bribe) • Can horde and speculate
  • 6. ILLEGAL TRADE - costs • Poacher (rural or sophisticated) • Equipment • Bribes (field ranger, security forces, customs official, owner) • Transport (international) • Fine / imprisonment
  • 7. ILLEGAL TRADE - Risks • Apprehended + charged • Prosecuted and convicted • Confiscation • Asset Forfeiture PRICE: = US$ 20 000 / kg (wholesale). Retail = +US$ 40 000 / kg (143 doses / kg)
  • 8. ILLEGAL TRADE - PROCEEDS $$$$$$ from sale of poached horns accrue to criminals.
  • 9. LEGAL TRADE - Strategy TWO PRONGED: • Replace illegal market with a legal trade 1. CSO 2. Set price / package 3. Manage price (do not lower price!) 4. Manage supply on offer 5. Avoid incentives for speculators 6. Audit
  • 10. LEGAL: TRADE - Strategy • Improved anti-poaching and illegal trade deterrents. 1. No ‘silver bullet’ 2. Law enforcement 3. Laws + Regulations 4. Penalties 5. Vigilance at borders 6. Economic instrument to trade
  • 11. LEGAL TRADE - Supply • Natural mortalities of white rhino • Stockpiles • Acquired by courts of law Note: harvested horns will not be accepted for trade.
  • 12. LEGAL TRADE – Certification • DNA analysis • Chemical analysis (isotope) • Transponder inserted • Central database Fraudulent horns will therefore be excluded.
  • 13. LEGAL TRADE - Operation • Verify buyers • Hold 3 / 4 sales / year • Offer horn as a ‘package’ @ set price • Clean horns only • Manipulate price between sales • Export horns + CITES certification Note: No auction, No flooding of market
  • 14. LEGAL TRADE - PROCEEDS $$$$$ from sale of rhino horns accrue to conservation agencies and private rhino owners, allowing for: • More effective law enforcement to protect rhinos (and other biodiversity). • PA expansion especially for rhinos.
  • 16. Lessons Learnt – add value! 22000 960 14505 725 a fric Number of Rhino Asset value ($ Million) A th Sou Re st of A f rica 150 3200 3000 Ca. 1980 2012
  • 17. LESSONS LEARNT INCREASE VALUE!!!! RSA experience: • Allowed rhinos to be owned by private safari parks • Allowed live animals to be traded • Allowed trophy hunting of rhinos • ADD TRADE IN RHINO HORN Other rhino states. • Rhinos nearing extinction as no value was added!