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It is ten years since the last serious consumer research on the kangaroo industry, and since then there has been considerable change such as the widespread availability of kangaroo in domestic supermarkets. Despite this the industry remains reliant on fluctuating export markets and stands to benefit from stronger domestic demand for kangaroo meat, especially manufacturing meat. In addition, innovations funded by other RIRDC programs are developing models for landholder involvement in the kangaroo industry and it is not clear what impact these models may have on consumers, retailers and manufacturers.

This research addresses these key issues and applies sophisticated and innovative marketing research strategies known as Discrete Choice Experiments (DCEs) to kangaroo meat for the first time. It provides a snapshot of existing and potential kangaroo meat consumers and explores possible markets for what were perceived to be the most promising products in which kangaroo manufacturing meat could be used: mince, deli meats and pies.

Who is the report targeted at?
The report is targeted to the Kangaroo Industry Association of Australia (KIAA), kangaroo processors, meat products manufacturers, retailers, landholders, and kangaroo harvesters.

Background
The kangaroo industry is in an ideal position. It has been growing steadily and kangaroo meat is now present on most domestic supermarket shelves. Harvest quotas are being met in most states with demand exceeding supply especially for the prime cuts. It retains a role as a pet meat and a low cost high protein export for smallgoods but could emerge as a high quality meat to discerning consumers both domestically and for export. The Kangaroo Industry Strategic Plan has set a target of 80% of kangaroo meat being sold within Australia at prices 10% higher (in real terms) than present.

A RIRDC funded study (Purtell and Associates 1997) looked at consumer perceptions of Kangaroo products and recommended improved range, availability and distribution of kangaroo products and targeted promotional programs. Since then, domestic consumption of prime cuts of kangaroo meat has grown, but the lesser cuts or manufacturing meat often end up in pet food at a much lower price.

Kangaroo is still in demand in Europe as a high protein, low fat component of smallgoods, yet domestic smallgoods and other meat manufacturers remain reluctant to use it. Overcoming this is a key priority for the industry but there has not been a focused study on the opportunities for the use of kangaroo by smallgoods and other meat manufacturing or on the market sectors. There has also been very little research on people that currently consume kangaroo in Australia and what marketing interventions would be most effective in boosting consumption.

Aims/Objectives
The major beneficiary of this research is the kangaroo industry including processors (as represented by KIAA), harvesters and distributors who may utilise research outputs to strengthen the industry.

Indirectly, the research will benefit remote and rural communities that provide much of the labour force for the industry and the landholders from whose land the kangaroos are harvested.

The specific objectives of the proposed research were to:

1. Identify key attitudes and issues concerning the use of kangaroo meat by smallgoods and other meat manufacturers and retailers.
2. Ascertain which attributes of meat and smallgoods in general are important for consumer choice and determine how kangaroo is perceived on these attributes.
3. Investigate choice behaviour and potential demand among meat consumer segments to identify the triggers for increased consumption of kangaroo based on the attributes identified in objective 2.
4. Determine the potential for change in the choice behaviour of smallgoods manufacturers based on the findings from objectives 1 and 3.

Methods used
A steering committee was established representing KIAA, Australian Smallgoods Council and RIRDC as an appropriate sample of stakeholders and to help guide the project. Face-to-face meetings, teleconferences and email dialogue took place before, during and after the project.

The research was conducted in four stages commencing with interviews with two retailers/manufacturers to identify key attitudes and issues concerning their use of kangaroo meat. These were followed by three consumer focus groups comprising 32 people and an online consumer survey of 1590 meat consumers which examined consumers’ meat and smallgoods consumption behaviour and the role kangaroo might play in their choices, as well as their attitudes to eating kangaroo. The consumer survey utilised discrete choice experiments and shopping scenarios to determine likely demand for three products: mince meat, meat pies, and deli meats. Also examined in the consumer survey was the effect on choices of information on kangaroo harvesting, quality control and preparation. In the final stage, we returned to discussions with retailers/manufacturers of the results of the consumer studies.

Results/key findings

a. Consumption of and attitudes towards kangaroo meat

Consumption of kangaroo was marginally higher than in the 1997 survey but general patterns of consumption remained similar. In the current study, 58.5% of respondents had at least tried kangaroo at some time, with 14.5% having eaten kangaroo at least 4 times per year (classed as “medium to high” consumers) and 44% having eaten it at least once but not regularly (classed as “one-off and low” consumers). Of 41.5% who had not eaten kangaroo, just over half were willing to try kangaroo but as yet have not given it much thought (classed as "non-consumers”) and the remainder either objected to eating kangaroo (“objectors”) or thought kangaroo was unhealthy (only 0.7% of the total sample).

Consumption varies considerably across the states. The percentage of medium to high consumers ranged from 21% in South Australia and 19% in Western Australia to only 9.2% in Queensland (where the number of non-consumers reached a high of 28.5%). New South Wales had the highest number of objectors (22.4%).

Men were marginally more likely to consume kangaroo than women with 16.8% indicating they eat kangaroo at least four times per year compared to 12.3% for women. A higher proportion of women were objectors (27.8%), but of those that had tried kangaroo, 65% indicated they would try it again.

In 1997, 35% of past users indicated their reason for current non-use was that kangaroo meat was unavailable. In the current survey, only 13% kangaroo consumers indicated that kangaroo was not available when they had looked for it. This was mostly the case in New South Wales & the Australian Capital Territory (19.5%) and Victoria & Tasmania (14%). A further 52% of respondents indicated that kangaroo was available but not on every occasion they wished to buy.

For the most part, consumers are aware that kangaroo is a healthy meat that is lower in cholesterol than beef or lamb and this is a definite plus. However, uncertainty about how to prepare kangaroo meat remains an issue for all but the medium to high consumers, and even most consumers in that category perceive limited scope for preparing kangaroo. Also, a potential barrier is the level to which kangaroo steak or fillets are cooked, as, while half the consumers surveyed prefer their red meat cooked medium to well-done, the general recommendation is that kangaroo meat should be served rare or medium-rare, due to the very low fat content.

The consumer segments which present the most growth potential for kangaroo meat are the one-off to low consumers and non consumers that are interested. These segments exhibit little concern that kangaroos are part of our national emblem and there is general agreement in that kangaroos should be used as a resource for food and leather. What they are concerned about - and this is a sentiment across all segments except objectors - is that kangaroos are killed humanely. They also expressed some uncertainty around the integrity of the meat. One-off to low consumers were concerned that kangaroo meat might be tough (48%) and were concerned about how to cook it (53%). However, few (30%) were concerned with the appearance of the meat. Non-consumers’ responses indicated a high level of uncertainty in these areas, as would be expected given they hadn’t given kangaroo meat much consideration.

Despite the increasing acceptance of kangaroo meat, there remain issues around the harvesting of animals. Across the sample there was a widespread (and incorrect) belief that kangaroo populations are managed in fenced farms (36.4%) or ‘free-ranged’ on properties like cattle stations (35.8%). Only 27.8% believed they were harvested as wild animals. Knowing the animals were harvested did not change attitudes to eating kangaroo amongst focus groups participants but there was an indication of increased sensitivity to hygiene factors and the welfare of the animal in the harvest.

b. Kangaroo manufactured meat products

In the consumer survey, respondents were presented with three kangaroo-based products - mince, pies and deli meats - in the form of shopping scenarios. In the mince scenario, prices of each mince available were manipulated as was the source of the meat (for kangaroo and premium beef only). In the case of pies, the pies that were available were manipulated so that only 10 of a possible 16 appeared in any one scenario. In both cases an underlying experimental design (explained in the methods section) was used to develop the scenarios. The final product, deli meats, was presented in two scenarios; a normal shopping trip and shopping for a special occasion.

The most preferred minces were all beef varieties (extra trim, regular and premium), however, kangaroo mince attracted 10% of respondents’ first preferences on average, a higher figure than for lamb, veal and the organic lamb and beef minces. At current supermarket prices of $6.99 - $8.99 per kg, kangaroo mince attracted between 15-20% of first preferences, with this proportion decreasing as price was increased. Adding a source for the kangaroo mince, such as “Blue Ridge”, produced a marginally higher likelihood of choosing kangaroo but this was not significant in overall choices. In terms of the quantities that respondents bought, one-off and non consumers were more likely to choose smaller sizes which aid experimentation (51-61% chose 250-500g packages compared to 41% of medium to high non consumers).

It was evident from the consumer survey that a significant number of consumers are willing to at least try kangaroo pies (31%) and that most would see it as a gourmet novelty. Overall, there was a clear preference for the Chunky Beef & Roo pie (rather than just Kangaroo), which also appeared to be seen as a substitute for Chunky Beef. One factor that we did not include in this research is price. The responses in the survey were based on kangaroo pies being sold at the same price as others. Clearly, this will not always be the case but what would seem important is that they are priced closely to other pies bought by that consumer segment (for example gourmet, everyday).

With regards to deli meats, the number of respondents choosing products containing kangaroo was small relative to non-kangaroo, however, close to 65% of respondents indicated a willingness to try a kangaroo product and 32% of these were willing to buy to try. Most consumers chose a variety of deli meats (between 2 and 6) when asked to indicate which meats they would buy from a selection of 28.

Ham, followed by sliced meats (beef, turkey etcetera), were the categories from which items were most often chosen. The kangaroo deli items, which were available in three of the five categories: salami, sliced meat, and cured meat, attracted between 20-44% of consumers in the high to medium segment and between 8-16% of one-off consumers, depending on the occasion. Special occasions were central to non-consumers choosing kangaroo, where kangaroo options attracted 4-6% of respondents.

The fact that most consumers seek variety in choosing deli meats, combined with a strong willingness to try kangaroo deli meats and increased interest for special occasions, suggests a potential for increased demand in the future. Two caveats are: that half of those willing to buy will need to sample products first because they will not buy them to experiment; and most interest is likely to come through gourmet delis which are less readily accessed than supermarkets.

The information conditions given to respondents (on either harvesting, quality control or preparation) had no apparent impact on choice of mince meat or deli meats and only a marginal effect on choices of pies. For pies it only had a minor impact in their second preferences not their primary pie preference.

We had expected to see some effect from providing preparation information on one-off to low and non-consumers who are interested but this was not the case.

c. Manufacturer and retailer attitudes to kangaroo

A limitation of this study is the small number of interviews undertaken; however this was unavoidable given the reluctance of prospective respondents to agree to be interviewed. Despite the small number of interviews, a range of industry perspectives was received and discussed in some detail through the semi-structured interview format. As a result, the findings create a well-informed view of the environment into which the kangaroo industry is hoping kangaroo manufacturing meat can become established.

The manufacturers interviewed were aware of kangaroo and open to using it in their products, but are very unlikely to do so unless they perceive it to be more normal in the eyes of consumers. A significant and innovative information campaign to raise the profile of kangaroo is necessary before this can happen. In addition, they need to be confident of the transparency and openness of the process of kangaroo harvest if they are to make the significant investment needed to bring kangaroocontaining products to market.

Major retailers will need to see kangaroo products being successful in the gourmet and niche markets before they become regularly available on supermarket shelves. While niche manufacturers and retailers are able to develop and make available innovative kangaroo products to their variety-seeking customers, they recognise that consumer awareness and curiosity is not sufficient to sustain even small volumes at present. They would have to remarkably (even obsessively) persistent in trying to develop the loyal clientele needed to make a stable and regular production of any benefit to the kangaroo industry.

Implications for relevant stakeholders
Although the proportion of Australian meat consumers who have tried kangaroo has not changed significantly since the 1997 RIRDC study, there has been significant growth in the proportion that are eating kangaroo more frequently. Further increasing consumption amongst current and one off consumers holds considerable potential for market growth, especially given the finding that consumers remain unable to buy kangaroo on every occasion they wish to.

An encouraging finding is that in most instances consumers who try kangaroo meat like it and would eat it again. Also encouraging is that most consumers perceive kangaroo to be a healthy meat. Given these findings, and the considerable publicity and emphasis on healthy eating today, there would seem to be ample scope for growing this segment of the market.

Preparation remains an issue, as does the level of cooking. Uncertainty over cooking will discourage some consumers who will choose to eat kangaroo only when prepared elsewhere and so limit their consumption level. People who prefer meat cooked rare (the recommended way of cooking kangaroo) are more likely to be higher consumers of kangaroo, however, there are still many medium to high kangaroo consumers who generally prefer their meat medium or well-done, indicating that there may be a significant market segment who like kangaroo cooked this way.

Of the three products examined in the consumer survey, mince meat has the greatest potential for using kangaroo manufacturing meat. If this market alone was to expand to, say, 2% of the beef mince market, it would increase the domestic human consumption of kangaroo manufacturing meat to 80t per week. Factors that may currently deter consumers from trying out kangaroo mince as a substitute for their regular purchase are the current packaging in 1kg packs and its shelf location. It is likely that they would be more aware of it as a substitute if it was next to the other minces and be more willing to experiment with smaller quantities.

Although kangaroo pies attracted interest, their potential is hampered by three issues. Firstly, the key group that regularly choose kangaroo are gourmet food lovers, a relatively small group that is unlikely to regularly eat pies. Secondly, kangaroo pies are a niche market within another niche market (gourmet pies) making it very small. Finally, even well-constructed, taste-tested kangaroo pies have had very limited appeal when tried.

There is clear potential for an innovative smallgoods manufacturer to develop kangaroo products to target variety-seeking consumers. This research looked at several possibilities (kangaroo salami, kangaroo pastrami, kangaroo proscuitto and rare roast roo). From a manufacturers’ perspective, most deli meats can be made using kangaroo. The difficulty would be to produce the product at a low enough cost to allow the mark-ups required by distributors to deliver it to gourmet retailers at a realistic retail price.

What is evident from the results of the focus groups and consumer survey is that, while increased consumption has followed increased availability of kangaroo meat, this is occurring slowly. We believe that consumption will continue to grow slowly or to stagnate unless pro-active steps are taken to make the product more visible. This should be achieved with a consistent message that emphasises that there is no risk of harm to the kangaroo population as a whole, that the harvest process is humane and hygienic, and that the harvest results in benefits to source communities and environments.

At present the industry suffers from mixed messages, which create doubt in the minds of tentative consumers. This is picked up by manufacturers and retailers, perpetuating the fringe status of kangaroo meat. On one hand, the industry promotes kangaroo meat to consumers as being clean, green and compatible with sustainable land management, but at the same time justifies the harvest to landholders on the basis of kangaroos being a pest and also allows the perpetuation of the widespread myth that kangaroo meat comes from kangaroos that are managed on farms or free-ranged on large stations.

Transparent and consistent rhetoric that is open to scrutiny is vital for manufacturers and retailers to gain confidence to develop products containing kangaroo and to market them positively.

Recommendations
1. To make kangaroo meat consumption more normal rather than a curiosity, the industry needs to take a proactive approach to promoting kangaroo as a gourmet alternative that carries health benefits and has a wide variety of uses.
2. To make kangaroo meat and meat products more visible to consumers as an easy to prepare, inviting alternative to mainstream meats, the industry should work with manufacturers and retailers to develop and test sample products. The biggest impact is likely to be education about its use in a wide range of meals that reflect Australia’s ethnic diversity and the growing interest in gourmet foods.
3. Kangaroo mince presents the greatest potential increase in volume of kangaroo manufactured meat as a substitute for mainstream products (for example trim beef mince). The industry should work with retailers to further experiment with the key factors emerging from this study in relation to mince:

• price differential (that is how much lower than substitutes it needs to cost),
• location in store (that is near to substitute to allow direct choice comparison) and
• package size (that is potential demand for smaller 500g packages allowing experimentation).

4. The gourmet smallgoods market is the obvious first market for developing interest in kangaroo deli meats. The industry should work with individual gourmet manufacturers/retailers to develop and test sample products, particularly through measures designed to capitalise on the varietyseeking behaviour of deli meat consumers’ such as:

• on-site tastings,
• serving suggestions,
• promotion of kangaroo deli meats for special occasions and
• use of specialty items by the restaurant/hospitality trade.

5. At present pies containing kangaroo are unlikely to achieve significant market share beyond specialist pie shops. A chunky beef and kangaroo pie has scope for a broader market, subject to meeting taste requirements.

6. Research is needed to gain a better understanding of consumers with a preference for well cooked red meat. This segment is large and at present it is assumed that kangaroo is simply unpalatable if cooked to this level. This may not be the case.

7. In terms of its profile, the industry needs to generate consistent messages to all stakeholders of a uniquely Australian resource that is managed through careful harvesting, is humane and sustainable, and is good for the environment. It needs to separate itself from the culling for pest management that often attracts strong emotional responses from the community and creates images of poor quality control. We recommend the industry:

• Investigate chain of custody management to improve consistency of industry practice.
• Investigate the impact of stronger involvement by landholders in harvest management on quality and stakeholder perceptions of kangaroo meat.
• Develop and test different approaches to achieving consistent industry messages and branding.

8. In a wider context, we recommend targeted research into the beliefs, attitudes and behaviour on human connections to different animals?wild native, wild feral, domesticated native, domesticated introduced, and how that is impacted on by how the animal is husbanded, harvested, transported and slaughtered.