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The main farming system in use for the production of day-old ostrich chicks around Oudtshoorn in the Klein Karoo is the flock breeding system. This system does not present an opportunity for farmers to practise genetic selection. An alternative system, the small-camp system, would allow the farmer to practise genetic selection. However, for the farmer to switch from the flock breeding system to the small-camp system, an investment in fencing material is required. The main aim of this study is to find out if the higher expected productivity and resulting higher income due to genetic selection could compensate for the investment in fencing material. Typical farm models for the study area were developed for this purpose. The results of this study showed that the higher income due to genetic selection compensates for the investment in fencing material. [ABSTRACT FROM PUBLISHER]