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Summary of full report
by Geon Shim-Prydon and Henry Camacho-Barreto
March 2007
RIRDC Publication no. 06/117 RIRDC Project no. DAQ 320A
Executive Summary
Who is the report targeted
at?
The report is principally
for meat producers, processors and marketers to add financial returns to
Australian investors in new animal industries. This report identifies existing
and potential uses of co-/by-products of the crocodile, emu, goat, kangaroo
and rabbit industries. It examines identified co-/by-products and addresses
aspects of market demand, supply, scientific validation and trade-related
regulations as well as impediments to commercialisation in order to aid
priority setting by industries.
Background
Traditional livestock industries
in Australia and around the world have based their income on premium high
yield cuts. However, in pursuit of additional income sources processors
have been endeavouring to develop markets for co-/by-products. This effort
has improved the viability of production from these species.
Australia’s prospective animal industries—such as crocodile, emu, goat, kangaroo and rabbit— are small in comparison to traditional livestock industries. Prospective animal industries are focused largely on the production or harvesting of their primary products, for instance meat or skins. Industry focus on developing viable co-/by-products has been limited.
In Australia, little research has been undertaken into the uses of co-/by-products for these industries. It is largely international research findings that are scarce that point to the potential uses of co-/by-products.
Objectives
The aim of this project
was to identify potential income sources for co-/by-products of prospective
animal industries. These included crocodile, emu, goat, kangaroo and rabbit
industries. The project was directed by the following objectives.
Methodology
The methodology for this
project involved four stages.
Stage 1
Stage 2
Stage 3
Stage 4
Key findings
The research undertaken
in each of the five industries found the following in relation to their
co-/by-products:
Crocodiles
The crocodile industry in
Australia is based largely on the production of skins —being the most lucrative
crocodile-derived product. Meat and offal are considered a by-product of
skin production. Currently, meat is recovered and commercialised, while
offal and other co-/by-products are generally discarded. Key co-/by-products
identified from the research include blood, bones, cartilage, head, claws,
teeth, tail tips, gall bladder, oil, penis, tongue, liver, brain and innards.
Basic scientific research points to the potential health and medical properties of crocodile blood in antibiotics and artificial blood products, and cartilage as a substitute for shark cartilage.
However, commercialisation of blood and cartilage would require further and conclusive research and clinical testing are needed that require a significant investment in time and money.
In addition, for cartilage, the domestic demand is unknown and an appropriate and effective processing method is still to be developed.
Head, skulls, feet, claw, teeth and tail tips are processed and sold mainly to the tourist souvenir market which is likely to remain static for short- to medium-term. Crocodile tongue, brains, innards, liver, penis, gall bladder and oil are perceived by some Asian countries to have health properties mainly related to aiding respiratory ailments. Current demands for these products are small and sporadic and more scientific and market research is required to determine the commercial potential of these products.
Among identified co-/by-products, bones offer the most commercial promise. Crocodile bones cooked in soup are thought to assist asthma and other respiratory conditions in the Chinese community. Industry states that both the collection and processing of bones is simple compared to other co-/by-products. Thailand exports bones and canned crocodile soup to a few Asian countries and this may indicate some market opportunities for processed bone products derived from ‘clean and green’ Australian crocodiles that were fed on Avian Influenza-free chicken.
However, further research is necessary to determine the market size and potential for crocodile bones
Emus
The main emu products currently
commercialised are meat, oil and skins. Co-/by-products of the industry
include eggshells, feathers, cartilage, bones and liver.
Basic scientific research has been conducted to identify the health properties of eggshells, cartilage and oil. However, for eggshells large scale research and testing are required to verify the medicinal properties. Besides testing of shell would need to be carried out on each egg from every farm because not all eggshells possess therapeutic properties. This makes the collection and commercialisation of emu eggshells inviable for use as a health or medicinal product at this stage. As for cartilage, the presence of anti-angiogenic agents (AAA) was found with a potential to substitute shark cartilage. But, like eggshells, large scale research is required by research organisations or pharmaceutical companies before commercialisation.
On the other hand, oil has been being widely commercialised since TGA registration was obtained to take advantage of the oil’s anti-inflammatory properties. Oil currently offers the best commercial potential for the industry. It has a growing market both domestically and internationally and industry considers it viable to collect emu oil. Further research into other claims of medicinal properties may expand their uses and markets.
Emu eggs, bones and feathers have been used in art as egg-crafts, souvenirs and fashion items such as garment and hat decorations. Emu eggs and bones have also been used in fertiliser, feathers as dusters for the computer and camera industries, and liver for occasional orders from restaurants for use in pâté. However limited markets exist for these products.
Goats
The goat industry in Australia
has been focused largely on the production of meat, dairy and fibre. Currently
the main activity of the industry is the production of meat, which is mainly
exported. The research identified three main goat co-/by-products: offal,
blood and colostrum.
The collection process for goat offal has already been established. Growing overseas markets are making goat offal the co-/by-product with the most commercial opportunities in the industry.
Collection of goat blood is currently being trialled. The results of this trial will determine the commercial opportunities for this product. Colostrum offers many opportunities to producers in countries such as New Zealand where the industry is large and technically advanced. However, the Australian industry has limited opportunities because of the small size of the dairy goat industry and the lack of infrastructure to further process the colostrum.
Kangaroos
Kangaroos are mainly harvested
for meat and skins. The research identified that co-/by-products from this
industry have limited uses. Harvesting and the initial processing of the
animals in the wild have limited the identification of potential uses of
co-/by-products for value-adding. It was identified that the use of kangaroo
parts such as pericardium, valves and cartilage may have some medical applications.
However, research in these areas is at an early stage so further studies
are required to evaluate such applications. Kangaroos were also identified
as a possible source of collagen, but more research is necessary to evaluate
these opportunities also.
Rabbits
Rabbit farming in Australia
is focused on meat production. Co-/by-products generated include offal,
blood, manure, head, ears, feet, tail and skins. The research identified
that co-/by-products with the most potential in Australia are rabbit blood,
manure and offal. A biotechnology company has shown interest in collecting
rabbit blood. However issues relating to collection and consolidation of
supply need to be addressed before blood can be commercially viable.
Rabbit manure is another co-/by-product that, according to producers, could offer opportunities for commercialisation. However, industry has said that it would require investment from a third party to develop this opportunity as the current production commitments of producers do not allow them to pursue commercialisation of manure.
There is potential for rabbit offal in pet food manufacturing. Although demand for offal in this market is inconsistent, processors continue to look for opportunities in the pet food market. They are also focusing on developing supply links to penetrate this market.
Implications
The research found that
emu oil and goat offal are currently being successfully commercialised
and that opportunities may exist for crocodile bones, rabbit manure, rabbit
blood and rabbit offal.
However, in general, further research and testing into the reported health and/or medicinal benefits, product development and into processing methods is required for most of the co-/by-products identified prior to viable commercialisation. This needs to be accompanied by detailed research of viable markets and market development efforts. Impediments to processing and collection also need to be addressed. Achieving viable volumes is acknowledged by industries as the major challenge in the production of these co-/by-products across the selected prospective animal industries.
It should be noted also that the production and use of co-/by- products by animal industries depends on the development of the established products of those industries. The size and growth of primary products such as meat, skins and milk will be the critical factor influencing the realisable potential of most animal co-/by-products.
Recommendations
New animal industries need
to continue to explore opportunities to better use co-/by-products.
This includes efforts into the scientific and market research and development of markets, processing methods and marketable products. In addition, monitoring traditional animal industries would prove to be helpful for benchmarking their co-/by-product commercialisation and marketing practices. Current uses of co-/by-products in traditional animal industries are well developed, and offer experience, ideas and knowledge that can be effectively leveraged by the new animal industries. There is also scope for monitoring the way other countries produce and commercialise crocodile, emu, goat and rabbit co-/by-products.
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