Friday, May 7, 2010

Future of Emu Farming in India - 1

Emu Farming is continuously growing like a wild-fire in India. Now the fever is happening in Northern part of India and spreading to North-East too.

Spreading Emu Farming as a news might be cheerful in outset, but when you look at that, people in the nearby locations like, Farms in Gujarat, Maharastra are going to benefit from this spread, since India is huge in land mass. You need to pay a minimum of Rs.5 to 15 per Km as transportation charges. So, if the purchase place is nearer, you can save money on the investment for the farm. The other side of this, Farms in Tamil Nadu and Andhra Pradesh are affected, due to uncompetitive prices. Buyer always look at the landed cost, and he doesn't care where it comes from. So, the farmers in South are struggled, when it comes to 'new chicks' sales.

So, what's next?

Emu Meat Sales is only way to end this struggle and grow this business in multiple folds, say, beyond leaps and bounds. I wrote this calculation in once. Emu Meat is like red in Beef/Mutton, but doesn't have the qualities of Mutton or beef, i.e., fat/cholesterol. The price is almost same, when it compared to Mutton (beef cost is lower than mutton). All we need is a push as marketing to explain the benefits of emu meat to the general public through TV Medium.

Let's look at the requirements of Emu Birds, if there is a demand of Emu Meat from health-conscious (... it can reduce heart attacks, prevent fat accumulating in blood vessels, and hence save precious lives...) consumer's realized.

One fully grown Emu Adult Bird weighs around 40-50 Kg

Out of this:

Meat - 20-25 Kg
Fat - 5-7 Kg
Bones - 7-10 Kg

If a normal family buys 0.5 Kg per week- a medium city with a small population of 1 million people, we assume 15% of population can afford to buy Meat on weekends and out of that, 8% of the consumers are going for Emu Meat (health conscious.!!), there will be 20,000 consumer families (each family is assumed of 4 persons each, hence, there are 250,000 families in a 1 million population). Hence, 20,000 x 0.5 Kg = 10,000 Kg. To get 10,000 Kg, you need to cull 400 birds per weekend. There are 52 weekends, but due to indian festivals and holidays let's assume 50 weeks. Hence, there is a requirement of 20,000 birds every year in a small city of 1 million population.

India has 1200 million population; however, there are around 300 cities in India, which is equival or bigger than this estimate. Hence, annual requirement of 60,00,000birds are needed every year. It works out to be roughly 5,00,000 birds every month. I bet there is no such amount of bird population now.

Let's assume that it will take another 5 years to reach this level of meat consumption (do not forget, that every year 100 million new Indian citizens are being added... :-) ). It might take much more amount of time to meet the sudden surge of demand for emu meat.

The current speed of spreading emu farming will not be enough if the meat consumption is started.

All of this is just hanging on one simple issue or fact. Take efforts to market Emu Meat as a "heart-healthy meat". Nowadays people are more health-conscious. You can look at the TV advertisements as an indicator. An ordinary refined Palm-oil is marketed as Good for Health Oil. Not only that, most of the edible oils are sold as a healthy oil. In reality, Oil is not healthy at all, except Olive Oil. Olive Oil is another market is growing in leaps and bounds in India. So, there is a huge market in India for Emu meat. No doubt about that.

Secondly, growing Goat becomes a highly risky business, since, you don't get village boys for herding goats. They have all gone to schools now. So, sudden vaccum has been created in villages, hence, goat population is also getting lesser every year. Mutton price rise is primarily based on the non-availability of goats. Growing population need alternative meat. So, there is a huge market out there.


Anonymous said...

EMU has been around for a number of years in India now. Would anyone explain why its meat is still not on the menu cards of hotels and restaurants ?

Anonymous said...

as per information available from sources, almost every part of the bird sells.
rearing does not seem costly.
meat is healthy. i dont know about the diseases and risks the birds can have in farms.
what about the marketing ? seems a good way of parallel farming.