Wednesday, August 17, 2011

Contract Emu Farming - Some Warnings

Recently some distasteful news in the Media about Emu Business from Maharashtra, which was disheartening. 

There are two sides to a coin. One side is the people who simply ready to be duped with tons of ignorance and Money, and the Other side is the People who design their schemes such that most appealing to a common man to part with his Money and Confidence. This applies to Finance Companies to Forex Companies, and Emu Business is not an exception to this White-Collar Crime.

Before someone new to this industry end-up in a similar scam, there are some valid points to look for before investing in Emu Schemes, whether it is Contract Emu Farming or MLM-type Schemes. We will be seeing them here.

In any Business, there has to be a product. In Emu Business, Meat & Oil are the products (Eggs are only for reproduction and is not a product). These are the two main reasons for which, Emus have to be culled. Culling for reasonable economic values is the essential key to this Business. If there is no culling and no regeneration, the cycle never completes. 

Before you invest and Sign a contract with a Contract Emu Farming Company, please look into the following aspects.

I put them into pointers:
  • In an Emu Contract Farming Business - Check whether they have processing plants to produce Meat and Oil. Emu Processing Unit (EPU), as they are called, are setup to cull birds hygienically, and cut meat as required by Market. If the Emu Contract Farming Company does not have EPU and proper Marketing Arrangements to market the meat, do not invest your money with them.
  •  If the Emu Contract Farming Business offers you more than Rs.350/- per month per bird, double check their past history, and also check whether they already have the EPU. It might be possible that they need more birds for their busy EPU, so they offer higher premium. If not, they are luring you and your money, because it is simply not viable to run at this cost for long-term.  This also applies to giving Gold Coins as an Incentive to join. Simply, doubt them.
  • If the Emu Contract Farming Business is based on the Multi-Level-Marketing mode, never involve into this. You will earn only bad reputation for yourself, because you are false-promising many people into that.  Stay away from these kind of schemes.
With the advent of few big names in the industry doing Emu Contract Farming in large scale has raised concerns for many. Because the amount involved is running into Crores of Rupees. The tipping point for this industry will flower once the Emu Meat is well liked by the end-users. For that to happen, Emu Meat must be freely available on the market first.

Emu business will sustain and grow only when there is a usage, that means, a Market for Meat. This can be achieved only through selling its Meat for consumers and Oil for Pharmaceutical Industries. That day is not too far.

Tuesday, August 2, 2011

Emu Meat Sector Updates - 3-Aug-2011

I managed to speak to Dr. S.K.Maini on the Emu Meat Sector Developments, and It was fruitful to know lot of facts from him. FYI, Dr. S.K. Maini is one of the pioneers in Emu Farming Industry in India. He is running a NGO, focusing on Emu Products, named AGRIBIOTEK. 

Currently Dr.S.K.Maini is running an Emu Processing Unit (EPU) in Hyderabad with a capacity of 40 birds per day, which sees increasing demand for Emu Meat. The Emu meat is locally marketed, fat is sent to the processing unit. Emu skins are being collected & preserved, once they are approx 500 in number they will be sent for tanning.

The Price is Rs.270/Kg live weight, delivered at their EPU. 

Another Farmer, Mr. Suresh is running a similar sized EPU, but he sells the meat beyond Hyderabad, say, upto Chandigarh and Punjab. Another two similar units are coming up near Hyderabad and one in Nanded. 

In Tamil Nadu, Mr. Jegan Mohan of VR3 Emu farm is helping and advising aspiring entrepreneurs to set up EPUs by providing Consultancy and Marketing Tie-up. Mr. Jegan Mohan is one of the earliest Emu Farmer in TN and his VR3 Emu Farm has also procured license to process EMU OIL, as per Indian Regulatory Requirements. 

Susi Emu Farm and Jeevan Emu Care are coming up with their own EPUs. The procurement for them mostly will come through their Contract Farming.  VC Emu farm has a similar strategy, but there is no information on their EPU.

Vileena EPU is progressing towards to starting its operations in December 2011. 

Other than this established/establishing players, I have seen numerous local emu farmers, who regularly slaughter Emus for Meat to feed their Emu Meat Lovers in their city only during festivals. 

I am keep mentioning that Emu Business will be successful only if there is availability and consumption of Emu Meat in India. That's started happening now. The promotion and advertisement has not started at all. In general, Promotion and ad spending will start happening once there is a sizeable production capacity in place, and we can expect that too to be happening soon. 

Contact Details:

Dr.S.K.Maini - (98480 14071)
Mr.Jegan Mohan - (94426 35308)