The commercial farming of emus (Dromaius novaehollandiae) began in Western Australia in 1987 and by 1994 all Australian States permitted emu farming.140 A Federal Code of Practice came into effect in 1992.141 Emus breed readily in captivity and there is now an abundant supply of farm-bred birds - indeed by 1996 it was obvious that supply was exceeding the market for emu products. Wild-harvesting of emus is prohibited in all States.142
Emus proved to be well suited to farming. A large number of breeding stock can be produced in a short time and the birds are ready for slaughter at 12 to 15 months. They are prone to few parasites and disease problems and those that do occur can usually be managed by careful attention to hygiene.143
Commercial farming of emus within Australia occurs in Queensland, Western Australia, New South Wales and Tasmania, as well as Victoria.144 New Zealand, Canada and the USA also grow emus commercially.
The industry in the USA began in the late 1980s, grew very rapidly and then contracted as production outstripped markets.145 Currently there are approximately half a million birds held on 5,000 to 6,000 farms in the USA, where there is substantial promotion of emu products, particularly the oil and associated body-care products and pharmaceuticals.
Research on the status of the emu industry, as well as process and product development, has been undertaken by the Rural Industries Research and Development Corporation (RIRDC).146 Much of the production technology has been developed by the emu farmers themselves. Overseas studies are under way to test the medicinal value of emu oil.
Products
The emu has been described as the "most useable bird". Saleable products include:
x) meat;
y) oil (from glands);
z) skin; and
aa) feathers.147
The meat is low fat and very low in cholesterol is and used in smallgoods. The skin makes high-quality leather with an attractive appearance. The oil is used in cosmetics and for therapeutic products. There are also small industries associated with carving of eggs and use of feathers.
Key markets have been identified as the USA, Japan, France and South-east Asia.148
Australian research is providing valuable information on the desirable qualities of emu products.149 These include the high nutritional value of the meat.
The Victorian Industry
Emu farming was legalised in Victoria in 1994.150 By 1996 Victoria had more emu farms than any other State, with 782 farms out of a national total of 1,330. This high figure was partly attributable to the fact that Victoria set no lower limit on the number of emus required for a farm to be registered.151 Some of the early farms were hobby farms with only a few birds. Most emus were obtained from the Western Australian emu-farming industry.
According to the Emu Producers Association of Victoria (EPAV), the industry was initially based on the production and sale of breeding stock. Resultant high prices attracted approximately 1,000 new licensees.152 The emu proved to be very well suited to conditions in Victoria and numbers increased rapidly.153 By 1997 there were about 300,000 farmed birds in the State,154 with an estimated 5,000 to 10,000 emus slaughtered and processed in 1998-99.155
The high success of breeding led to a large drop in the sale price of the birds. Increase in emu numbers was not matched by market demand. By September 1998 numbers of farmed birds had dropped to approximately 55,000.156 According to the Emu Producers Association of Victoria, the number of Victorian farms would now be less than 130.157 There has recently been a considerable contraction of the industry in Western Australia and overseas as well.
Farms are dispersed throughout Victoria.158 Most now are part of existing farms that are also involved in conventional agriculture.159 The farm-gate value of emus (1998 figures) has been estimated as $6-8 million.160
The industry has been largely self-regulating, through the Emu Industry Development Committee (EIDC). This Committee was established in 1996 under the Agricultural Industry Development Act 1990 and has powers to collect and manage industry funds. Its charter includes research and industry development.
All emu farms must be licensed under the Victorian Wildlife Act 1975 and are monitored to ensure their compliance with the industry's Code of Practice.161 This Code came into effect in 1995 and is incorporated into licences.162
As elsewhere in Australia, the Victorian emu industry is dominated by producers who operate as `farm-to-market' enterprises. That is there is little specialisation. The slaughter of animals is, however, usually undertaken off-farm, with the animals transported to accredited abattoirs by vehicle.
There are five abattoirs in Victoria able to slaughter and process emus.163 One, at Myrtleford, also processes ostrich products. With recent contraction of the industry in Victoria, slaughter of emus for meat is occurring in abattoirs not specifically dedicated to handling them.164 Slaughter is required to adhere to the Australian Code of Practice for Veterinary Public Health: the Hygienic Production and Inspection of Emu Meat for Human Consumption.
The Committee inspected the `Good Evans Emu Farm' in March 1999 and saw the range of products that can be derived from the bird.
Industry Prospects
The industry is still facing a significant marketing problem for all products (meat, leather, oil and feathers). 165 The Emu Producers Association of Victoria describes this as:
The typical boom and bust cycle experienced by most sunrise industries.166
The production, processing and marketing aspects of the emu industry are ill-matched. Consequently, producers are unable to realise returns from the value-adding part of the industry. The Emu Industry Development Corporation considers that this is essential to the viability of the emu industry.167
As well as the rapid rise in emu numbers, the RIRDC identified several other factors which it considers have contributed to the industry's current difficulties. Unlike other animal industries new to Australia (such as deer and ostriches) that have established international markets, emu products are unknown and the industry is in its infancy.168 New leather, in particular, takes time to be accepted and emu leather has proved difficult to manufacture to a high standard. Furthermore, early attempts by individual farmers to have totally integrated `farm-to-market' systems have mitigated against cooperation within the industry and involvement of people with expertise in processing and marketing of products.
At the same time, the need for integrated processing was made clear to the Committee.169 Processing of the birds for all products needs to be done in a dedicated system that can harvest the meat, oil and leather to best advantage. Conventional transport and slaughtering systems do not meet this need. All three main products must be sold for an enterprise to be profitable.170
The small but expanding ostrich industry in Australia also complicates marketing. Ostriches, originally from South Africa, also produce meat, oil and leather, and ostrich meat is currently more popular in Australia than is emu meat. Emu products might, however, benefit by being associated with the more-established (in world markets) ostrich products.171
One consequence of the contraction of the industry appears to have been the illegal release of farmed birds. The Wimmera Catchment Authority drew attention to an incident of the illegal release of emus derived from Western Australia to the wild with the downturn of the industry.172 This could lead to genetic pollution of local populations.
Nonetheless, in the opinion of the Emu Producers Association of Victoria:
The commercial viability of farming emu has not changed in that time and it is now up to the industry to find markets for the product it produces. 173
A study by the RIRDC suggests that the industry will shrink before growing again.174 The RIRDC still considers that present signs bode well for the future of the industry. It is currently undertaking research into identifying ways to improve husbandry, processing and marketing of products.
The Emu Industry Development Committee considers that the future of the industry lies in relatively low production levels of "unique product from a unique animal". Extensive production systems using native grasses will promote protection of land and
native flora and reduce feeding costs.175 It believes that:
It is inevitable that the development of revegetated land with native grasses will play a large role in the economics of emu farming, both in the cost of production aspect and the increased price obtained in marketing a product derived in the most natural form possible.176
Industry Strengths
The emu is well suited to domestication and farming under Victorian conditions,177 and produces a diverse range of highly useable and attractive products. The industry also has developed a strong base of breeding stock held in closed-cycle breeding enterprises (farms).
The Victorian Emu Producers Association is a vigorous organisation and is actively addressing the industry's problems,178 the federal Rural Industries Research and Development Corporation is undertaking relevant research and development, and the Victorian Government provides information and advice to prospective entrants to the industry through a Specialised Rural Industry program.179
A study by the IRDC indicated the following positive signs for the industry:
bb) expanding markets and moves towards an `Australian' industry focus and the development of cooperative marketing arrangements;
cc) development of an industry quality-assurance program for products;180
dd) research focused on product development and gaining Therapeutic Goods Agency registration for the oil;
ee) increasing world interest in farming emus; and
ff) well-developed production technology.181
Industry Challenges
The supply of all emu products currently exceeds demand,182 with emu farmers being forced to keep stock well past the preferred slaughter age due to the marketing problems.183 The Committee, during its inspection program, was told that many who invested in the industry have incurred large losses.
Well-integrated market development, needed to ensure that improved sales of all products match production, is still not available, as it is difficult to achieve with the current restructuring of the industry.
While emu products offer great potential, they are new to consumers. Consequently market development is more difficult than for more-familiar products. Initial marketing efforts achieved less market growth than was expected by the industry. The industry's limited marketing funds and experience apparently contributed to this situation.184 The Australian industry also faces competition from imported emu products and other native-animal products.185
The IRDC identified the following factors as necessary for the success of the industry:
gg) strategic marketing and control of supply in line with market signals;
hh) cooperation between specific groups of business expertise;
ii) quality-assurance programs across the industry;
jj) unique product characteristics identified and registered with the Therapeutic Goods Agency; and
kk) cost-effective service providers.186
The Committee did not see evidence of a shift to use of native grasses and associated biodiversity benefits at present; rather emus are currently being raised in conventional semi-intensive farming systems.187 Future developments may, however, complement more ecologically appropriate approaches to farming in Victoria with the use of native grasses and herbs.
Farmed emus do not make any direct contribution to conservation of the wild species.188 Indeed, the illegal or accidental release of birds can (and apparently has) occurred, to the potential detriment of the genetic integrity of local populations.
The industry also has to deal with welfare issues, such as those raised by representatives of Animals Australia.189 These include an inadequate knowledge of the needs of the birds in captivity (a deficiency which, the Committee noted, is admitted by emu farmers) as well as problems with transport and inadequate methods for slaughtering large numbers of birds in abattoirs.
