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    Rural Industries Research & Development Corporation

    The New Rural Industries
    A handbook for Farmers and Investors

    Welcome to the EMU FARMING chapter of RIRDC's major new publication (contents page here) on nearly 100 new rural industries.

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    Emu Farming

    by Peter O'Malley*

    Introduction

    Commercial emu farming to produce emu meat, leather and oil started in Western Australia in 1987 and the first slaughtering occurred in 1990. By 1994 all Australian States permitted emu farming and the industry produced an estimated 75,000 chicks in 1994 and 110,000 in 1995.

    Production was curtailed in 1996 when it became clear that production was exceeding developed markets. The industry still produces too much and it is likely to shrink considerably before it grows again.

    Despite this there are a number of positive signs:

      • Markets are expanding and there are moves toward an `Australian' industry focus and the development of cooperative market arrangements.

      • There is still tremendous faith in emu meat, emu leather and emu oil as high quality products.

      • The development of an industry quality-assurance program for products.

      • Research is focused on product development and gaining Therapeutic Goods Agency registration for the unique properties of the oil.

      • World interest in farming emus is increasing. The United States of America has the biggest population with estimates of up to 1.5 million birds. Europe, Canada and China have 15-20,000 birds each, New Zealand 2-3000 and farms are being established in a number of Asian countries.

      • Production technology is well developed.

    Meat, skin and oil are the major products from emus; carved emu eggs and small quantities of emu feathers are also sold.

    Emu meat is a low-fat, low-cholesterol (less than 0.05%) meat which has a slightly `gamey' flavour. The most valued cuts come from the thigh and the larger muscles of the drum or lower leg.

    The emu body-skin is characterised by a raised area around the feather follicle which produces a distinctive patterned surface. It is a fine but strong leather. The leg skin has a distinctive scale pattern and is used in leather accessories and to highlight other leathers.

    Emu fat is rendered to produce an oil which is used in cosmetics and therapeutic products. Emu oil is said to add a certain `quality' to cosmetics and while it is claimed that it is penetrating and effective in the treatment of muscle and joint pain, research into this has only just begun.
     

    Key messages 
    • The industry has three new products—emu meat, oil and leather—to place at the top end of world markets which know virtually nothing about them. 
    • The emu industry is expected to shrink before growing again. The positive signs on oil and cooperative emu marketing promise well for the future. 
    • There is still tremendous faith in emu meat, leather and oil as high-quality products. 

    Markets and marketing issues

    While emu production problems have been solved quickly, developments in processing and marketing have not kept pace with production. Before emu farming began, there was no market for emu products. Now the industry is trying to place three products—emu meat, oil and leather- at the top end of world markets which know virtually nothing about them. Other new animal industries in Australia, such as the deer and ostrich industries, have the benefit of substantial research and market development carried out in other countries. In a global sense, these are mature, whereas the emu industry is in its infancy.

    One of the attractions for people entering the emu industry was that they perceived it to be a `farm to market enterprise' and they have been unwilling to seek the required expertise, or to involve marketing/distribution companies, which would take some of the `margin'. While it is true that some individuals have operated very successful `farm to market' emu enterprises, most have failed. Because of this desire to control all phases of the production and marketing chain, there was little cooperation, strong leadership did not develop, there was less marketing investment than required, market-led coordination in production was lacking, and the industry has been slow to introduce quality standards. There was no thought of long-term benefits through cooperation.

    Today those attitudes are changing and in most states we have seen the development of cooperative emu-marketing groups and the move toward a national marketing approach. The essential elements of a successful emu industry are seen to be:

      • Strategic marketing to grow a market that sends clear signals to producers to substantially control supply.

      • Specific groups of business expertise working together to build a better industry.• A quality assurance program in place across the industry.

      • Unique product characteristics identified and registered with the Therapeutic Goods Agency.

      • Cost-effective service providers

      • Nationally, a base of commercial growers producing birds in response to clear market signals.

    Although emu products are considered to be good, the current opinion of international buyers is that in general they do not come up to the standard of ostrich or other exotic products. Emu meat, long term, is likely to be sold at a price similar to ostrich or venison and at present farmers are receiving around $9.00/kg for the 10 kg of major carcase muscle and $4-5.00 for the remaining 2 kg of trim produced by each bird. Emu meat is generally selling well and markets are expanding.

    Emu leather has proved difficult to tan and it has also been difficult to obtain good quality hides. It takes time to become established in the leather business. South Africa took up to 10 years to get ostrich leather accepted in the Japanese fashion industry. There is apparently an abundance of ostrich leather on the world market and the general opinion appears to be that emu leather is not as good, particularly in relation to the follicle, which is the main attribute of the skins. The current price of emu leather is around $50/hide salted (body and two legs) but the product is currently not selling well.

    Available information suggests that less than one third of the leather being produced is being sold. Clear industry standards and the research to develop a leather of suitable quality for the garment trade are needed urgently.

    Emu fat is sold in the raw, unrendered form, as crude or primary rendered oil or oil refined to the buyers' specifications. Price is dependent on the amount of processing involved. Oil price has fluctuated widely and crude rendered oil has reportedly sold from $10.00 to $50.00/L. About one half of the oil currently being produced has sold but farmers are reluctant to sell at less than $25.00/L.

    Emu oil is considered to be the key to the success of the industry and much will hinge on obtaining its registration as a therapeutic agent. The initial results of research suggest that not all oils have therapeutic properties and production methods will need to be developed to produce efficacious oil consistently.

    Production requirements

    Emu farming is a semi-intensive livestock enterprise requiring suitable land, fencing and water for adult and growing stock, reliable power for hatching and brooding chicks, shedding for young birds, feed-mixing facilities and easy access to a wide range of feed ingredients or prepared feed. Chicks can be sold at hatch, 6-10 weeks of age or retained until they reach slaughter weight at 50-70 weeks of age.

    While it has proved not to be a difficult enterprise, it does require a wide range of skills. Farmers need to become expert at intensive animal husbandry, breeder flock management, hatchery management, chick rearing and growing birds for market.

    • Stock are difficult to handle, transport and move between pens.

    • There is only limited information available on the birds' nutritional needs, breeding behaviour and potential disease problems.

    • Strict hygiene of eggs and nesting areas is critical to prevent subsequent problems from disease in the chicks and to prevent loss of eggs from rotting.

    • Special management techniques must be adopted to prevent chick losses from leg abnormalities.

    Breeds

    During the development phase of the industry, most States allowed a limited capture from the wild, but the farming of emus was only approved on condition that only captive-bred emus were farmed for slaughter.

    This was necessary to comply with the Federal Regulation of Exports and Imports Act which requires all products from native animals to come from animals bred in captivity or taken under an approved management program.

    The commercial industry is therefore based on existing captively-bred stock and all States, with the exception of Tasmania, have licensing requirements to protect wild emus.

    While there has been no study on possible genotypic differences between emus captured from different regions throughout Australia, wildlife agencies have accepted that no major differences exist. On farms, there has been only limited selection for desirable commercial traits and distinctive breed types have not emerged.

    Husbandry

    Breeding birds can be housed as individual pairs in pens or run as a free-ranging flock—2-ha paddocks running 32 breeders work well. The industry has an established Code of Practice and breeder pens are required to be at least 25 m square.

    Most farms run a combination of free-range and individual breeding pens. Breeders are expected to remain productive for more than 10 years and a number of individual breeder pens will allow the reproductive performance of new stock to be assessed before they are moved on to a more extensive farming system.

    The success of an emu-farming venture will be determined largely by its ability to hatch 75–80% of all eggs laid successfully and to rear chicks with a total mortality of less than 10%. Artificial incubation is recommended and, as a minimum, a separate setting and hatching machine are needed. Farmers should also consider storing eggs before incubation to limit the total number of hatches for the season. The ease of management and the reduction in rearing mortality achieved by the isolated rearing of each hatch offsets any loss in hatchability caused by storage.

    With fortnightly settings, chicks can be placed in one of four separate brooder sheds with attached outside runs from day-old to 5 kg live weight. Each brooder shed is used at least twice each season and the chicks are moved to one of two larger sheds with access to free range at 7 weeks of age. One shed is used to house the first three to four hatches and the second to house the later hatches. These facilities will need to be predator-proof. At 15 kg live weight (20 weeks) the chicks can be combined and allowed to range over larger areas.

    At the stocking densities being adopted by farmers, emus will be able to obtain only a small portion of their nutritional needs from pasture and natural browse. They will need a balanced ration which can be farm mixed or purchased. Good results can be achieved by feeding farm-mixed rations formulated to specifications similar to laying-stock rearing rations. Birds are slaughtered at 12–15 months of age and can be finished to maximum fatness in 8–10 weeks by feeding a low protein high energy finishing diet.

    Breeding birds are fed an egg-layer type of ration fortified with additional vitamins and minerals.
     

    Pest and disease control

    Emus appear to have a high level of resistance to most disease and most mortality is caused by poor hatchery and rearing hygiene. They are, however, susceptible to Erysipelas caused by the bacterium Erysipelothrix insidiosa (Ruthsiopathiae). This organism thrives in wet, dirty, anaerobic conditions and causes a generalised septicaemia in young growing birds, 7–12 months of age, following periods of stress induced by cold, wet weather and overcrowding in heavily contaminated pens. Vaccines developed for poultry have proved to be successful in preventing this disease.
    While worms and body pests are not a common problem, some farms have found it necessary to treat for these.
     

    Economics of production

    Investment in any enterprise should be supported by a detailed farm plan which defines the production method, livestock numbers, buildings and equipment required, and marketing. This can then be used to develop financial budgets for expected cash flows, finance requirements, profit and loss, gross margins and return to investment.

    A 50-female farm producing 780 slaughter birds each year would cost around $175,000 (excluding land) with a farm-operating cost of about $140 for each slaughter bird produced. Given that slaughter costs currently range from $65 to $85/bird, farmers must sell all three emu products at prices above those listed before any margin is generated.
     

    Key contacts

    The Emu Farmers Federation of Australia has branches in all States. These provide a good starting point for further information on the industry.

    Emu Farmers Federation of Australia
    Mr B. Evans
    Secretary
    ‘Bosante’
    Bundurra, NSW 2359
    Phone: (02) 6725 2218
    Fax: (02) 6725 2218

    State Association Secretaries

    Queensland, Carol Schmidt
    P.O. Box 257
    Murgon, Qld 4605
    Phone: (07) 5464 4667

    NSW, Annette Pollard
    ‘Laceby’
    Cartwright Hills
    Wagga Wagga, NSW 2650
    Phone/fax: (02) 6921 2459
     

    South Australia
    Chris Dobbin
    P.O. Box 987
    Waikerie, SA 5330
    Phone/fax: (08) 8583 2142

    Tasmania
    Fiona King
    c/- Post Office
    Margate, Tas. 7054

    Western Australia,
    Arthur Pederick
    ‘Corralyn’
    PO Box 57
    Wagin, WA 6315
    Phone: (08) 9861 1136
    Fax: (08) 9861 1136
    Peter O’Malley
    Senior Research Officer
    Agriculture WA
    Locked Bag No 4
    Bentley Delivery Centre,
    WA 6983
    Phone: (08) 9368 3577
    Fax:(08) 9474 1295
     

    Key references

    An Introduction to Emu Farming, Emu Producers Association Victoria

    Smetana, P. 1995 Emu Farming—Background Information. Department of Agriculture, Western Australia.

    Producing the Chick booklet, Emu Producers Association, Victoria

    Workshop on Emu Management: Removal of Impediments to a Sustainable Commercial Emu Industry, Primary Tasks Pty Ltd, Carlton, Victoria

    A Development Strategy for the Emu Industry, May 1992, ACIL Economics and Policy, in association with McIntyre Management and Marketing
     
     

    About the author

    Peter O’Malley is a Senior Research Officer employed by Agriculture Western Australia. He was primarily responsible for the establishment of the experimental emu flock at the Medina Research Centre in December 1987. He carried out the initial work to determine the artificial incubation, husbandry, brooding and feeding requirements of emus and is currently working to improve the quality and quantity of the oil and leather produced. See Key contacts for address.
     
     

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    Last updated: 29 December 1997
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