NABARD assistance for Emu Farming

Many a times, there was a discussion going on in forums or emails received in volumes asking about govt assistance on emu farming. We have something here in X five year plan by Govt of India, through NABARD.

A Fellow emu farmer and my friend, Mr. Vidyasankar of PAN Emu farm has sent this email to me on NABARD assistance on Emu Farming. I am posting here for other people to know of the assistance.

Please look at the underlined statements, which shows that you need only 10% of the total cost of the project. Remaining 90% can be given by Banks.

This information also available at:   http://dahd.nic.in/guideddpaulfund.htm

OPERATIONAL GUIDELINES
ON
CENTRAL SECTOR PLAN SCHEME
“DAIRY/POULTRY VENTURE CAPITAL FUND”

1. Background

1.1 Dairy 

Milk production in India is characterized by small rural producers scattered all over the country accounting for about 70 per cent of production. Although the organized sector, which produces western type products also has shown fast growth in the last three decades, it still accounts for only 15 per cent of the total milk produced in the country and a far larger proportion of milk continues to be marketed by the unorganized sector - comprising innumerable vendors, small processors, merchants, manufacturers and retailers of indigenous milk products like khoa, paneer, dahi and milk based sweets, etc. But the main problem in the unorganized sector is quality, which creates a serious threat to the health of consumers. Unsanitary local conditions, unhygienic containers, substandard processing equipment, poor handling methods, breaks in the cold chain etc contribute to poor quality and at times unsafe milk in the unorganized sector. To bring about structural changes in the unorganized sector, the measures like processing at village level, process and market pasteurized milk in a cost effective manner, quality up gradation and up gradation of traditional technology to handle commercial scale using modern equipment and management skills, it is proposed to introduce the dairy venture capital fund scheme under which assistance can be provided to the rural beneficiaries under a schematic proposal through bankable projects. These projects should include activities like private veterinary clinics and other support services needed for the growth of the sector.

1.2 Poultry

With the various efforts made by the Government of India, ICAR, State Governments, Financial Institutions and private sector etc. poultry has developed well in the country. However, these efforts have resulted in growth only in a few states and a considerable segment in the poultry sector is still unorganized and is spread over in the form of small farms in far-flung areas that still need organized efforts to exploit this potential. The training and marketing also continue to be the weakest link in various poultry development programmes. Due to these limitations, poultry development, particularly, in the North Eastern States and Eastern states is still at a very primitive stage. In the absence of organized marketing and training programme the poultry development programme is not able to realize its full potential.

2. Objectives

2.1 The main objective of the scheme is to create a venture capital fund for providing financial assistance to agricultural farmers/ individual entrepreneurs and groups of all sections of unorganized as well as organized sector for the following purposes:

Ø To promote setting up of small dairy farms for milk production
Ø To bring structural changes in the unorganized sector; processing and marketing of pasteurized milk at village level
Ø To bring about upgradation of quality and traditional technology to handle milk on a commercial scale
Ø To boost the unorganized poultry sector in states where development is in primitive state and also to give incentive and create infrastructure facilities for export of poultry products by organized sector from advanced states
Ø Establishment of poultry and breeding farms with low input technology and also for other poultry species
Ø Setting up of poultry feed plant/ laboratory
Ø Setting up of egg grading, packing and storing facility for promoting export
Ø Marketing of poultry products (specialized transport vehicles, cold storage etc)

3. Activities/Total Outlay/Area of operation covered under the scheme:

3.1 The funds will be distributed among dairy and poultry activities with an overall ratio of 2:1. The following activities will be funded under the scheme either individually or in combination.
(A) Components, which can be funded under dairy sector:
1. Establishment of small dairy farms – upto 10 animal units (Buffalo and crossbred cows) for milk production - Rs.3.00 lakhs - only in non-operation flood areas
2. Purchase of milking machines /milko testers / bulk milk cooling units (upto 2000 lit capacity)
- Rs.15.00 lakhs
3. Purchase of dairy processing equipment for manufacturing indigenous milk products - Rs.10 lakhs
4. Establishment of dairy product transportation facilities including cold chain – Rs.20.00 lakhs
5. Cold storage facilities for milk and milk products – Rs.25.00 lakhs
6. Establishment of private veterinary clinics – Rs.2.00 lakhs for mobile and Rs.1.50 lakhs for stationary clinics.
(B) Components, which can be funded under poultry sector:
1. Establishing poultry breeding farms with low input technology birds and also for ducks/turkey/guinea fowl/Japanese quail/emu/ostrich etc – Rs.30.00 lakhs
2. Establishment of feed godown, feed mill, feed analytical unit – Rs.16.00 lakhs
3. Marketing of poultry products (specialized transport vehicle, cool room storage facilities and retention shed for birds etc) - Rs.25.00 lakhs
4. Egg grading, packing and storage for export capacity - Rs.80.00 lakhs
5. Retail poultry dressing unit (upto 300 birds per day) - Rs.5.00 lakhs
6. Egg/broiler carts for sale of poultry products - Rs.0.10 lakhs
7. Central grower unit (12,500 birds per batch and 4 batches per year) -20.00 lakhs.
The Scheme can be implemented in any part of India. However, thrust needs be given in states like Uttaranchal, Maharashtra, U.P., Karnataka, Tamil Nadu,. Punjab, M.P, Orissa, A.P., Rajasthan, and North-Eastern states during 2004-05. For N.E. states an allocation of Rs.2.0 crores out of Rs.7.2 crores may be made while S.B.I, P.N.B., Indian bank and Canara Bank have promised to take lead in implementing this scheme, other commercial banks, cooperative banks and regional rural banks may also participate as per the field level demand. 

4. Eligibility

4.1 The eligible beneficiaries shall include agricultural farmers/ individual entrepreneurs and groups of all sections of unorganized as well as organized sector. Preference may be given to traditional sweet makers (Halwais) to improve quality and hygiene of their products. In poultry, preference will be given to  Pheriwalas, which will generate self-employment for urban poor. Veterinary Science Graduates alone will be considered for providing loan under the component of veterinary clinics.

4.2 The indications given in Paragraph 3 above only show the maximum outlay of the project to be included under the scheme. The State level Review and Disbursement Committee will ensure that maximum number of units receives the benefit under the scheme and the spread of the proposals approved is not limited to one area/activity.

5. Preparation of Projects

5.1 The borrowers selected by identified banks will be financed for specific activities under dairy/poultry sector and assisted under the scheme. The borrowers will prepare a bankable project and submit it to the banks for consideration under the scheme. The fund provided by DAH&D will be kept with NABARD and will act as a revolving fund from which the beneficiaries under the scheme will be given a interest free loan of 50% of the total cost of the project/proposal subject to the ceiling indicated above in Para 3. 10% of the total investment will be borne by the borrower as his margin and the bank will charge an interest rate applicable as per their norms on the balance loan amount of 40% of the project cost. This will help the borrower in reducing his interest burden. A list of schemes/components, which may qualify under this scheme, has already been described above in Para 3. The Banks will adhere to their own appraisal norms. However, the checklist to facilitate the compliance of the requirements of formulation/scrutiny/appraisal in respect of the scheme will be provided to the banks by NABARD.

6. Implementation period and funding pattern

6.1 The scheme will be implemented during the X Plan period. It is an umbrella project under which individual schemes will be sanctioned.
6.2 There is a provision of Rs.7.20 crores for the scheme during the current financial year
6.3 Scheme funding/ Pattern of Investment:
Entrepreneur’s Contribution: 10% of total outlay
Revolving Fund’s (GOI)share:50% of total outlay - no interest
Bank’s share: 40% of total outlay - interest as applicable to agriculture loans

7. Implementing Institutions

7.1 NABARD will be the Nodal Agency for implementation of the scheme. The scheme will be implemented by Commercial Banks, Cooperative Banks and RRBs.

8. Disbursement of Loan/Revolving Fund

8.1 The financing bank will disburse the loan within 7 days of the approval of the State Level Review and Disbursement Committee to the borrower to whom the loan has already been sanctioned. The Bank will not charge interest from the borrower on the amount received by it from the revolving fund.

9. Submission of proposals for release of interest free loan portion
9.1 The format in which the banks will claim the interest free loan amount from the revolving fund is enclosed at Annexure II. The Bank’s controlling office will submit the consolidated claim, activity wise to NABARD RO on a fortnightly basis.

10. Sanction of project and release of amount from Revolving Fund and Repayment of loan
10.1 For the first year, NABARD ROs will implement the scheme in the states identified and launch the scheme with the participation of the banks in all the districts. The bank will identify beneficiaries for the activities under the scheme.
10.2 The project will be sanctioned by the bank after proper scrutiny as per its laid down procedure and satisfying itself that the proposal is viable and meets the conditions prescribed under the scheme. The bank will submit its claim in the prescribed format to the Regional Office of NABARD after sanction of the loan proposal.
10.3 The State level Review and Disbursement committee headed by RO, Incharge of NABARD will have representatives of leading banks, other banks expected to participate in the scheme and the Animal Husbandry and Dairy Departments of the concerned State Govts and will meet at least once in a fortnight. Thus, the maximum time taken to clear a proposal will not be more than 15 days.
10.4 Fifty percent of the total outlay i.e. the interest free loan portion, out of revolving fund, will be released by NABARD to the bank after scrutiny of the claim. For this, the State level Review and Disbursement Committee (SLRDC) will accord approval for disbursement of loan on the basis of first come first serve basis and considering the merits of the case and authorise release of the amount by NABARD Head Office. The Committee will ensure the timely disbursement of loan preferably with in 7 days, once it is approved. Accordingly, NABARD HO will release the amount to the participating banks from the revolving fund. A ratio of 2:1 may be maintained between the loan released for dairy and poultry sectors respectively at the national level.
10.5 The bank will release the entire loan amount in instalments depending upon the progress of implementation of the project. The bank will affect recovery as per its prescriptions and will return pro rata of the recovery made to NABARD for crediting towards the revolving fund on an annual basis.

11. Repayment of Loan

11.1 Repayment period of loan will depend upon the cash flow and will be up to a maximum of 7 years including grace period of two years. Any deficiency in repayment in the project will be the responsibility of the bank as the borrowers are to be identified and selected by them.

12. Recovery/Passing on Revolving fund amount

12.1 The recovery of loan , when made will be divided between GOI’s and bank’s share of loan on pro rata basis.

13. Unit Cost

13.1 The maximum outlay of the project for individual borrowers has been given in Para 3. Unit cost will depend on the type of investment, size of operation, and type of equipment and infrastructure needs. The State level Review and Disbursement Committee at the Regional Office of NABARD will consider the above factors while deciding on the interest free loan amount to be released.

14. Refinance Assistance

14.1 NABARD would provide refinance to participating banks for 90% of the amount financed by the banks as term loan. Rate of interest on refinance will be decided by NABARD from time to time.

15. Security Norms

15.1 The security norms will be as prescribed by Reserve Bank of India from time to time.

16. Adjustment in Borrower’s Account

16.1 The bank can charge interest as per its norms on its portion of the loan account but should not charge any interest on amount drawn from the revolving fund. The bank will disburse the loan amount after it receives interest free portion from the revolving fund. It shall recover the loan amount as per instalments prescribed and pass on pro rata portion of the amount recovered back to NABARD on yearly basis. The loan amount will vary depending on the purpose for which the loan is given.

16.2 Regular repayments will make the borrower eligible for interest subsidy on the bank loan portion (to the extent of 40% of the outlay) upto 50% of the interest payable. The bank will charge the usual interest amount on this portion and for only the regular repayment; it will claim 50% of the amount interest charged from NABARD as subsidy. On receipt of the subsidy from NABARD the amount will be credited to the borrower’s account. This subsidy will be claimed from NABARD on yearly basis as per the format to be prescribed by NABARD.

17. Monitoring

17.1 The National level Joint Monitoring Committee will be headed by Joint Secretary, Dairy Development (Dept. of AH and Dairying, MOA, GOI) and will have representatives of NABARD, State Bank of India, UCO Bank, Punjab National Bank, Canara Bank and Indian Bank and Secretaries of AH and Dairy Development of four State Governments on rotational basis. This Committee will formulate guidelines for the implementation of the scheme and monitor the implementation of the scheme. NABARD will closely monitor the units financed and will conduct periodic inspections to verify the utilization and study the working of the scheme.

17.2 The State level Review and Disbursement Committee (SLRDC) will be headed by RO of NABARD and will include representative of banks expected to participate in the scheme and Animal Husbandry and Dairy Departments of the concerned State Govt. The Committee will authorise release of the interest free loans as well as the interest subsidy to banks. The Committee will meet on a fortnightly basis and send bank-wise, activity-wise and district-wise statement to GOI and NABARD HO on monthly basis. It will also help in popularising the scheme in the state. The RO, NABARD will also be the convener of the SLRDC.

17.3 The participating banks will conduct periodic inspections of the units and give a feed back to the Joint Monitoring Committee on a consolidated basis and to the State Level Review and Disbursement Committee at the State Level on any deviation / misutilisation of funds.

17.4 On completion of the project, the participating bank would submit a completion certificate to DAH & D through NABARD.

18. Role of various agencies

18.1 NABARD
ü To administer the revolving fund and conduct fortnightly meeting of State Level Review and Disbursement Committee along with financing banks and Animal Husbandry and/or Dairy Department of the concerned State.
ü To scrutinize the claims of the bank and release the amount claimed
ü To monitor the scheme on a regular basis and provide a report to DAH&D, GOI on monthly basis.
ü To plan for improvement and expansion of the scheme for future, based on the feed back

18.2 Banks
ü To identify, receive and sanction the projects received from the borrowers for various purposes identified under the scheme and disburse the loan amount within 7 days of approval by State Level Review and Disbursement Committee.
ü To recover the loan amount as per repayment schedule and repay the amount recovered on the loan portion out of the revolving fund to NABARD on yearly basis.
ü To provide feed back on implementation of the scheme at State and national level.

18.3 Role of DAH&D
ü To convene the meetings of the Joint Monitoring Committee regularly and review the implementation with NABARD and financing banks. At least one meeting will be held in each quarter.
ü To plan and expand the scheme in future as per the feed back received from NABARD and financing Banks.
ü To undertake field visits of projects on sample basis and make funds available as and when needed

19. Publicity

19.1 NABARD and the implementing banks will make efforts for wide publicity at the district and State levels through organisation of Workshops and through Farmers’ Clubs, Non-Governmental Organizations and rural branches of financing banks.
19.2 The members of the State Level Review & Disbursement Committee will also help in popularizing the scheme.

20. Other conditions :

* A signboard at the site "DAH&D Assisted Project" will also be exhibited.
* DAH&D reserves the right to modify, add, and delete any terms/conditions without assigning any reason.
* DAH&D's interpretation of various terms will be final.
* DAH&D reserves the right to recall any amount given under the scheme without assigning any reason thereof.
* Any other pre & post inspection would be undertaken by DAH&D representative to find out the physical & financial progress as and when required.

Neck Pain?.... Sleep on Emu Pillow.

Neck pain? Sleep on an Emu pillow

Amit Sharma, TNN, Dec 4, 2010, 04.51am IST

CHANDIGARH: If you have neck and spine problems and have been advised by your doctor to avoid pillows, there is help at hand from unexpected quarters – a bird that cannot fly.

Research has proved that special pillows padded with Emu feathers can be of help. A Punjab-based firm declared on Friday at the Agro-Tech fair, organized by CII, that they are in advanced stage of production of these pillows and will hit the market soon.

And, this bird from Down Under will also provide a range of products — from medicine to cure low sperm count and warm jackets to cholesterol-free and odourless eggs. "The softness of Emu feathers gives it the edge and pillows made of these are good for children in their formative stages," says Yuvraj Goel, a director of Emu Farm Agro. "Emu feathers are also used to make dusters and key chains. These products range from Rs 150, depending on the quantity. Jackets made of Emu leather and fur are also popular. Reversible jackets have been introduced in the market that cost about Rs 7,000," said Goel.

[Courtesy: Times of India]

"How to" of Emu Farming

In recent days, I have received several queries asking my phone number to call on to check more information such as pricing, etc. My humble opinion about this is: If you are really serious about emu farming, get to the ground. Do not do arm-chair learning. This is not an IT course to learn that way.

Before you get on to the emu farming, you need to know the following:

1. What is the business model of your Emu Farming 
1. Chicks to Breeder and selling eggs, 
2. Breeder and selling eggs, 
3. Breeder -; Eggs --; Hatchery -- Chicks for Sale, 
4. B-Eggs-Hat-Chicks-->12-month birds for Meat purposes 
5. Each requires, different amount of investment. Please remember, this is money-intensive business. To certain extent, you need to invest, the rest you can go for bank loans.
2. Do you have enough resources (all Ms, such as money, manpower, etc)
3. Cashflow statement for the business (how much money needed to run the show, till you get the returns). Please remember this is a seasonal business, cashflow will be the BIG issue, if you have not planned in advance.
4. Visit as many as emu farms to find out the commonality and difference between each one of them, and speak to the farm owners and employees to know more m in face-to-face. Many farm-owners do not entertain people to ask questions to them about emu farming. Some even charge entrance fees and consulting fees to speak about.
5. Emu Farming training is provided by few, govt and private. In Tamil Nadu, Emu Research Centre (under TANUVAS) is providing three-day emu farming training course on a subsidised rate. Please call them to find out the next dates. In Hyderabad, I understand there are some training from Veterinary authority, please check the local emu farmers association. 
6. Decide on what mode you want to startup, (a) with Breeders or (b) with Chicks. 
7. Chicks rearing is most suitable for people with patience, because they need to wait for long (remember cashflow...!!).  
8. Breeders rearing is for people with deep pockets, and wants to see immediate returns. Be careful in choosing the breeder, since you do not know whether it is an adult bird or to-be adult bird, because all the birds do look similar after 11-months, except some minor differences. Only the trained eyes will identify them. 
9. Check for history of egg-laying while you buy for breeders. Most of them won't maintain records, but some will do. This is very common, since they seldom separated breeders into individual pairs. Hence, tracking the number of eggs laid by each breeder is difficult. Average eggs per season could be somewhere between 20-25 per breeding pair.
10. Observe the types of pens to cage the birds, and space required, etc during your farm visits. 
11. Employ the trained farm workers, else, train yourself before you train your farm workers, on how to handle the birds and how to give oral medicines, administer injections, etc. Emus are known to kick vigorously and severely cause injuries, if not handled properly.
12. Devise a feed management scheme. Either you prepare them, or buy it from feeds manufacturers.
13. Devise a vaccine administration scheme, and explain to your farm workers. Follow whiteboard method.
14. Maintain registers for both feed mgmt, vaccines, and eggs-laying.
15. Think about whether you have enough money to set-up Incubator to produce chicks. Chicks management is altogether a different story. It is very difficult and you need enormous preparation for that, like Diesel Generator, 24x7 monitoring & troubleshooting for 6-months, separate chicks brooders, vaccinations, etc. If you cannot afford it, please do not try hatcheries. 
16. Get Insurance for your birds.
17. Know a veterinary doctor near by.

All in all, keep in mind that, this is a seasonal business. You may not be engaged all the days of the year. So, try integrated farming, like goat farming, and use your hatchery to hatch quail eggs for the remaining 6-months period.

You must enjoy visiting your farm every day, and keep looking at minute things like health of your birds and animals.

I have given some of the starting pointers to ponder about. People doing business based on their conviction of doing that. No one can force it to them and they should not take it for granted too. If you are not convinced  and do not have conviction about what you are going to do, do not get into that.  Just enjoy watching.

All the best to your Emu Farming.

Commercial Emu Farming

In our previous post, we have seen contract emu farming is picking up in TN. Here're more details about it, from Jeevan Emu Care, Dindigul.

Commercial INTEGRATION farming of emu

PLAN - A (Commercial Integration Farming of Emu) 

 

1. All Emu chicks supplied by the company are of export quality. 
2. The security deposit for the chicks worth Rs.3 lakhs is just Rs.2 lakhs only. 
3. The company will deliver 20 Quality emu chicks for this. 
4. Feeds &  Medicines for Emu chicks will be delivered to Farm directly by company. 
5. The agreement period is 5 years. 
6. During 5 years, 20 Emu chicks will be supplied once in 12 months. 
7. Company supervisors will inspect the farm once in a week and inspections reports will be maintained by the company. 
8. 12 months is treated as one Integration period. 
9. The company will pay Rs.4,000/- for each chicks in every Integration period(Totally Rs80000/- for 20 chicks). 
10. Company will bear the Insurance premium amount also. 
11. The total market worth of Emu 20 birds is Rs.3,00,000/- 
12. The company agrees to pay Rs.10000/- as bonus per batch as per the calculation of FCR per year. 
13. At the end of 5th year, the company will pay the brought up amount (Rs.4,000/-per bird) along with the invested amount. 
14. All the conditions apply.

Income (Per 20 Birds)  First Year : Rs 90,000/-* Total Income : Rs 6,50,000/- Second Year : Rs 90,000/-* Investment : Rs 2,00,000/- Third Year : Rs 90,000/-* Forth Year : Rs 90,000/-* Net Profit : Rs 4,50,000/-* Final Year : Rs 2,90,000/-* (Just in 5 Years) *Conditions apply

(Thanks to Jeevan Emu Care India Pvt Ltd)

 If you look at the price, they are selling (or getting deposits) @ Rs.20,000/- for each 3-month chick. If you look at their PLAN B, they are buying 3-months old emu chicks @ Rs.3,000/- from you, and too, this is before their Marketing charges kicking in, I assume.This explains how they offer "free feed and Medicines, and periodical visits". It's all included in that. The expenses for running the office covered by this, legitimately.

Guess what ?  You have steady cash-flow, and banks have to beg you to take loan from them, because you are cash-rich. Also, your deposits are refundable at the end of fifth year and NOT taxable at the hand of Income-Tax and again interest-free in the eyes of Taxmen.

Contract Emu Farming is picking up in Tamil Nadu

Contract Emu Farming is one of the 3 method of emu farming, which we have discussed earlier in one of the blogpost.

Contract Emu Farming works in a different way than MLM. It's not MLM at all.  Let's look into how does it work.

In brief, Contract Emu Farming is of 10-pair size or in multiples of 10-pairs, i.e., 10 pairs, 20 pairs, 30 pairs, etc. In this method, farmer is depositing a refundable interest-free deposit for the cost of 10-pairs with the Emu Company.   In turn, the emu company sets up a mesh-wire fencing and a small shed, provides feeds and medicines at no cost to the farmer. Besides all, they are giving Rs.250-300/- per month per emu chick as incentive for safekeeping the emu birds. So, roughly for 10-pairs they are getting Rs.5,000 to Rs.6,000 per month as incentive, just to feed and water the emu chicks in the farmer's premises. The chicks are insured by the company and any mortality is company's responsibility and they will replace with a new chick to maintain the numbers. The ongoing market (or security deposit) is Rs.15,000/- per 3-month old emu chick pair. For a 1.5 lakh rupees interest-free refundable deposit, they are getting Rs.72,000/- per year. This is interesting, right. Where on the earth you will get this interest? But, You need to be in contract for a minimum period of 5-years, i.e., you will get the regular monthly income of Rs.5,000/- for next five years, and cannot break the bond. This is the view of this contract emu farming business from farmer's point of view.

When I realised that how does it work on emu company's side, it is awesome business proposal for both sides. Fantastic. Legally right, it is not affecting any party involved both financially and in performance. A real win-win situation (so far).

Currently, there are several companies started this contract emu farming. In Tamil Nadu, VC emufarms, Susi Emufarm, Jeevan Emu Care, are some of the companies doing this now. Next year, many will join the queue. This shows, there is a revival of emu business in Tamil Nadu.

Emu forecast for 2011.

I just saw an email from one of the emu enthusiasts from Andhra Pradesh. The news is interesting.

There are few big emu farmers from two different locations, formed a JV to set up a two Emu Slaughtering Units at a cost of Rs.4 Crores each. They are planning to purchase 16-18 month old bird at Rs.315 - 325/- Kg on live weight and a minimum weight for the birds is 50 Kgs. The price roughly works out to Rs.31,000/- per pair of 18 month birds. That's a very good price considering the current market rates. The plants are expected to come up live in mid-2011. Now, GCC (Gulf Cooperation Council - Saudi, UAE, Bahrai, Oman, Kuwait, Qatar) countries are the potential and easily accessible target for emu meat from India.

Also, rumors that two slaughtering houses are coming up in Tamil Nadu as well during the same period. But, In Tamil Nadu, Big-shots are trying to get the bird as cheap as possible for the slaughtering house from small farmers. This strategy is not going to work out well. Also, Plants in Tamil Nadu seems not of JV type. It seems they are going to be belong to a single farm or two only.

In an oligopolistic emu market, small farmers going to steer the market prices. Market forces will decide the price of emu. Slaughter houses used to consume several thousand birds per year. In a seasonal business entity, regular production is the key to keep the prices stable. If the supply is not managed well, the price will sky rocket, like BSE Sensex.

Currently there is a slack in end-use. If the end-use opportunity is coming via Slaughtering Unit and Oil Processing, then it is going to be the beginning of new economic Boom in India for Rural Markets. This time it is not uneducated farmers who is going to rule this agri trade, but educated, young, mid 30s to mid 40s graduates with internet in hand.

2011 is going to be really rocking and thrilling roller coaster ride for emu biz in India. Be prepared.

Emu Farming - Frequently Asked Questions

Emu Farming is quite complex subject for newbies, it seems. May be they are unable to search for information in the 'net world'. For the people, who are eager to start the emu farm, but worried inside whether this is good, and will i be able to retrieve the profit, and host of other questions in mind.

To address the concerns of newbies, I am giving a FAQ on emu farming based on my experience and what I have studied. If you have questions unanswered here, please write to me at jmemufarm(at)gmail(dot)com.

Qn.# 1. Can Emu birds live in Harsh Weather Conditions?

Ans: Yes. It can live in varied conditions, from hot desert to cold climates. However, if it has to mate and lay more eggs, the climate shall be moderate cool, i.e., 28-32 degree celcius. Hill climates are good for this throughout the year, anyhow, during winter season, most of India has this climate, hence, there won't be any issues across various states of india.

Qn.# 2. Does it require a shelter?

Ans: Yes. Shelter may be small enough to accommodate during raining and for mating. It enjoys water, whether it is rain or pond or shower. During mating, it needs some secluded space, otherwise, it feels shy, and will not mate.

Qn.#3. Does other animals co-habit with Emu?

Ans: Partially Yes. We have not seen other birds are grown side-by-side. In fact, emu is highly resistant to normal diseases affecting other birds (e.g., chicken, etc). Ranikhet is the major disease known to affect Emu seriously. Hence, avoid other birds, if they are susceptible to carrying Ranikhet, in your farm or nearby farms.

Qn.#4. Does snakes bite Emus?

Ans: Emu can run away from Snakes, or it will just throw it away using its peeks. Normally, Sankes won't come near to emus.

Qn. #5. How to manage the eggs, until it is collected by the buyer?

Ans: You can keep Emu Eggs in a slightly cool condition (a dark place in your house or farm house or inside the earthen pot). Handle them without shaking, and place it in horizontal way. Do not stack eggs one on the other. Use, soft material to separate eggs. There are thermocol boxes available. You can buy them and use it to store. Do not keep the eggs for more than 7-days, its hatchability may reduce. While collection of the eggs from the field, use Dettal with cotton to wipe out any dirts.

If you have questions unanswered here, please write to me at jmemufarm(at)gmail(dot)com. 

Emu Farming Vs Rabbit Farming

One emu enthusiast was asking whether emu farming is like what Rabbit Farming was few years ago.

It is a valid concern, since many hundreds of people lost their money in the MLM-kind (Multi-Level Marketing) of business model of Rabbit Farming. It's not the MLM model that brought this business downswing, but the ultimate end-use was not defined in the business. People who sold the rabbits mentioning the goodness of its meat, never tasted it. It's so sticky or so rubbery, when cooked. It's not a hard meat, as it is mutton or quail or chicken. Indians do not eat this kind of meats. So, the meat never took off. When there is no end use for the product, it cannot grow forever. So, the ultimate stop came in.

Emu Farming is entirely different. First, it is not MLM model. You pay and get worthy emu Chicks. The Emu meat is very nice and affordable for people to buy it. If you look at my previous posts, I have explained about the emu meat requirement and supply. There are several meat shops are popping up. The business is very hectic. I am getting regular call for asking to buy Leg-bend emu chicks for meat purpose. Since, the emu meat is getting very popular and the demand is keep increasing.

One thing, I noticed, would be a hurdle in fixing the price. The feed cost is very high, when we consider growing emu for meat purpose alone. So, either the feed cost must come down, or the meat cost must go up, say to Rs.750/kg.

With the current supply and demand situation for emu meat, I bet it would reach up to Rs.750/Kg, soon.

Emu Meat - Some Commercial Aspects

Emu Meat is already getting into food plates in some selected cities in India.

There was a hype in the Emu Farming community for not going into slaughtering. That is, we need more emu birds to feed the population if they are tasted and addicted to emu meat. Verily True. But, if we wait for the time to come, the small farming community will find it unable to feed the emu birds and chicks, and eventually collapse. This is a happening in Tamil Nadu now.

In an average, a Emu chick eats 0.5 Kg per day for first 12 months (Note, in an average... actually it increases from 100g to 200g and upto 650 grams per day when it reaches 12 months). When it reaches 18 months, it will start eating 1000grams per day. But the growth is from 450 grams it will reach 45, 000 grams - a whopping 100 times growth in 18 months.

Let's look into some statistics of Emu Meat's commercial aspect:


If you look deep into the chart above, you will see Fully grown Emu (18+ months) weighs around 40-45 Kg. Let's take 40 Kg in a moderate account.


Live Weight: 40 Kg
Feather, etc: 10 Kg (considered waste, but somehow people can sell it for some money.)
Meat: 20 Kg (In Indian conditions, we don't completely remove bones in the saleable meat)
Bones: 5 Kg (reasonably big bones)
FAT: 5 Kg (the fat shall be blood-free, means, no blood droplets shall be found in the fat).

To feed enthusiastic and health-conscious upper middle-class and above, they will be frenzied about this meat. It is beleived that rheumatism subsidies after eating emu meat. Currently they are paying around 300-450 per Kg, but when the demand is high, and the supply is low, the price will go up. Now more people will be frenzied about emu farming, and jump into it. Just remember, we are still growing emus in a seasonal agri-business industry.

In simple terms, for regular daily demand of emu meat, we have only a seasonal supply, which obviously shows the demand is always going to be higher than the supply. This simple fact tells you about the future of emu farming.

Other hype is that there is a huge export market out there. Export Market is there, but not huge. Even if it is cost effective to produce in India, India is still not considered a hygienic source to import from. Many western countries shun India as a source for Emu Meat. This is a image problem. Only orchestrated effort from Government of India can do to overcome and rebuild.

Okay, when you are selling the meat like hot cake on cash-terms locally, why do you want to export at a lower cost in credit terms. Moreover, If you cannot meet the local demand, why do you think of exporting them. So, just forget about Export of Emu meat.

Have you tasted the emu meat, yet?

Emu Slaughtering in Chennai

Emu Slaughtering has started in small scale in various cities of Tamil Nadu State. The response so far is so good. The current price is Rs.300/kg to Rs.350/kg, depend on cities. However, no stock carried away to the freezer for next day. All sold out on the same day.

Interesting.... isn't it?

In Chennai, VCEmufarm has started a joint called, Maya & Maya Food joint in the following address:

" MAYA & MAYA Food Joint "

114-F,Shanthi Colony Main Road,
Anna Nagar, Chennai - 600 040.
Call : 97891 74466 / 94420 10168
E-mail : mayaandmayaemuproducts@gmail.com
Web : www.emufarms.in / www.vcemufarms.com

In Dindigul, Jeevan Emu Care India and PAN Emu Farm have started their meat sale for some time.

Soon, it will spread to other parts of the nation too.

Look for freezers in your local city superstores for Emu Nuggets, and meat products.

Future of Emu Farming in India -2

Emu meat is considered to be taste like beef, red in color like beef and a fibrous meat. We all knew fibrous meat is most suitable for Briyani, which is pricey indian feast food in India and across the globe.

So, how to introduce this meat in Indian domestic market? We will look in detail..

Let's look at the Meat Consumption Scenario in India:

"The per capita consumption of beef / buffalo in India is 2.8 kg, about half that of fish, but more than twice the average intake of mutton, pork and poultry. According to statistics compiled by the Food and Agriculture Organization of the United Nations (FAO), the total number of animals slaughtered for meat in India rose from 66,299,600 head in 1980 to 106,239,000 head in 2000, nearly doubling. There was a rise in the total number of cows and buffaloes slaughtered for meat in India from 15,644,000 head in 1980 to 24,300,000 head in 2000, an increase in total beef meat and buffalo meat production of 1,673,972 in 1980 to 2,863,400 in 2000."

The above figures are 10 years old statistics (lazy officers... Ministry of Food Processing yet to process 2008 figures, which are already 2 years old. In overseas, they are able to release last quarter statistics, on the fourth month). However, the domestic market is huge. The price per Kg works out to be Rs.120/- for export, whereas Rs.150/- for domestic. To compete this segment with a price tag of Rs.350/- Per Kg for Emu Meat is a impossible task. So, we need to change the way Emu meat is being marketed. We will look into this in the later part of this post.

"It should be kept in mind that due to social reasons, the consumption of buffalo meat is restricted in India. While over 70% of Indians are non- vegetarian by choice or religious belief, consumption of beef and pork is limited. The slaughter of cow / Bull is prohibited in all but two states (Kerala and West Bengal). Although more emphasis is given on beef imports and states of Hyderabad, Delhi, Mumbai and others metropolis do witness beef production."

Still, 30% of people consuming meat in India is a huge number. We have discussed in detail in one of the previous post.

Positing of a product is more important than the product itself.

Emu meat is healthier for heart, according to US FDA, compared to other meats.

My point here is that, we need to emphasis on the heart-healthy nature of the emu meat to the customers.

Secondly, Emu meat has to be processed in a facility and marketed domestically. When there is a centralized facility, transportation poses a major challenge in keeping the freshness of the meat. Inevitably, the meat has to be marketed as a frozen meat. Indians used to buy the meat fresh, but nowadays, they already started buying frozen chicken in superstores, thanks to Venky Hatcheries and Suguna Chickens. This is a good sign for the aspiring Emu Meat Manufacturers.

Thirdly, food processing institutes (catering Colleges), are to be engaged by the Meat Manufactures and Government Ministry to provide best ways to prepare Emu Meat dishes in a tastier manner. These cooking methods have to be given away to Cooks as a Free Training through regional Food Mela's. The Emu Meat has to be sponsored by the Manufacturers for the Mela. Also, Television shows to teach how to cook emu meat in a tastier manner through Chefs, as a regular weekly programme.

Fourthly, State Governments shall release Newspaper Advertisements and short Commercials on the Nutritional value of Emu Meat in the respective states.

Fifthly, Self-Help Groups have to be engaged to rear Emu Chicks in large scale, so that they can grow the bird and sell it to Slaughtering Houses on a per kilo basis. The SHGs shall be sponsored by the Emu Meat Manufacturers through MicroFinance Loan Scheme of the Government, with a buy-back arrangements after 15 months. The farms shall be inspected prior to shipping them to Slaughter house by the Meat Manufacturer's officials to ensure the healthy nature of the birds. Once they are approved, they can send the birds to the Slaughter house and weigh them and receive the money instantly. Strictly No Credit. Banks shall enforce this on the Meat Manufacturers.

I hope relevant people, both aspiring emu entrepreneurs and government officials read this post to take the message in a relevant state.

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 agricultureinformation.com 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.

Emu Business Concepts

Emu Farming is a successful business concept, if you have understand how it can be adapted into Indian conditions. There are few concepts ongoing:

1. Sell Emu chicks to small farmers and Brokers

- You need a hatchery and sufficient amount of adult birds to feed the hatchery with eggs. if you do not have adequate eggs, you will buy from outsiders. The resultant emu chicks will be sold to small emu farmers. In turn, these small farmers will insist on agreement to take back their eggs.

2. Sell Emu Chicks on Contract Farming.

- All the set up is as above, except you will be taking back the bird instead of eggs after some time.

3. Sell Emu birds (12-months old) to Abattoir for Meat sales and Fat Oil Extraction.

- This concept is yet to take shape, but this is going to be sustain both of the above methods. If this concept is not taking shape, both the above concepts will die slowly, and eventually, the emu farming industry will disappear from the Indian Soil.

Current Status of Emu Farming in Tamil Nadu

In Tamil Nadu, Emu Farming is scattered around North-Western parts and in and around Madurai. There are other farms smaller in size, across Tamil Nadu. You can find atleast 20 big farms are in Tamil Nadu, which comprises of more than 70% of the Emu Population of the state.

The Main purpose of these farms are selling Chicks to Locals and selling bulk to Andhra Pradesh and beyond. There is no real end use for this Emus at present, except few (big) farmers already tried out selling Meat to the local market and processing Fat in their backyard and selling them as Emu Oil to local stores. Meats end up as Briyani and most of them do like it well, whereas Oil brought more bad name than profit. Because Oil was not processed properly and lost their medicinal values during the preparation, hence, it didn't perform as expected.

There is a emu research unit in Pudukkottai. Its called Emu Research Centre, sponsored by Animal Husbandary Department of Tamil Nadu. This Centre has a Emu Incubator and 10 pairs of Adult Emu birds. They are conducting Training for farmers regularly and they have released a book in Tamil on Emu Farming, as well. This research centre is trying its best to educate farmers, but in general, the mood of the department is unsure of the market for Emu. They worried too much if they would misdirect people, since they have already burned their fingers in Rabbit Farming.

Since selling Chicks was the main focus of these big farms, the market has really moved away to farther places like Maharashtra, Orissa, Punjab, Chandigarh, MP, etc. The cost of transportation is getting higher, hence, net realization for the chicks goes lower for Tamil Nadu Farmers. So, there is a tight situation now, as the farmers are having excess chicks in their hand. The is not an isolated case, but most of the farmers faces this problem now.

It leads to formation of central association in Tamil Nadu, called, Tamil Nadu Emu Farmers Association (TANEFA). The Association has just formed to find ways to keep, sustain and grow the Emu Farming industry in Tamil Nadu. We need to wait and see whether this association really helps small emu farmers to sell their birds at a reasonable profit or will this association help only to the big farmers? Let's see.

I observed a emu business model, which is outstanding and successful. There are few farms already doing this very successfully. I will explain this in the next post.

Emu Farming - Honeypot - Part 2

Let's look into the 10 points mentioned in the previous post:

1. Emu's can lay 50 eggs per year.

Actually, to my knowledge, one in 100 pairs might be laying 50 eggs per year, or bird pair who has successfully laid for atleast 6 years, might reach this number provided they have adequate nutrition throughout their rearing. Average number is 20 eggs per pair.

2. Each Egg costs a minimum of Rs.1,500/-

Yes, it was. Last season, it was sold until Rs.1,000/-. Some desperate farmers sold their eggs at Rs.800/- too. There was a reason behind this for the trend. Emu Hatchery Owners who expected that there won't much sales as well as price for the Emu chicks this season, hence, they reduced the number of eggs in the hatchery. Hence, many hatchery owners stopped procuring. Therefore, the cost of eggs went down. This may not be true for future. The same egg was once sold for Rs.2,000/- also. However, please note that the production cost itself would be around Rs.600-700/- per egg.

3. The Farmer who sold the chick/bird will buy back the eggs, hence no Marketing issues.

This turns out to be an initial promise, and rarely some are still adhering to this promise. Mostly, they just ignore this. Selling eggs is a difficult part, if you don't have a proper understanding & commitment from the farmer whom you have procured the bird.

4. The feed cost is around Rs.3,000/- per year for a bird. Farmer who sold the birds will provide regularly the "specially & custom-made" feed to you.

Feed cost is not fixed at all, of course, it depends on the agricultural produce, which are highly weather-dependent. For a small farmer, who owns a 10-pair farm, cannot prepare his own feed, unless he does it full-time and has other agricultural activities. If he decides to prepare the feed himself, (feed formula is available), the feed cost would be around Rs.12/- per Kg. The additional efforts which he put to make this feed is not costed into. Alternatively, you can buy it from Feed Manufacturers like SKM, at a cost of Rs.17.50/- Kg. Just imagine, you will save 5.50/Kg. If you have 10 pairs, your per day savings will be Rs.55/- a day. Per month, it would be around Rs.1,650/-. So, if you are the owner and you are going to prepare this feed for your 10 pair farm, it is wiser. If you are going to engage someone for the same farm & feed, it is not wiser. Clear...??? When your farm is enlarged enough, you can engage your own men to do that. The owner supplying the feed is most of the times ends up in trouble. Some, unable to match the varying cost of feed, failed to add some important additives, or changing to a cheaper alternative. The feed quality is affected. But, if you are buying from a Branded manufacturer, you can ensure this.

5. No diseases;

Diseases do affect them. Worming & Ranichet are the common disease; which are easily curable if treated on time and with appropriate guidance. Stress & Laceration wounds are other common issues in Emus. Be prepared for them.

6. No Climate issues;

This is true. However, during mating season, it needs some warmer temperature inside the covered space. Otherwise, it can live anywhere (I haven't seen any picture they are roaming in ice lands).

7. Just a fencing at a cost of Rs.15,000/- will do;

Proper fencing for each pair would cost more than that. But, if you are going to let them in the same place, it would cost the same.

8. virtually NO MAINTENANCE at all.


If you don't look at them on a daily basis, you might lose some of the indications, which would tell you about the oncoming problems/diseases. Moreover, they need regular water and feed on a daily basis. Feed them twice a day, and keep filling the water pot, as and when they finishes them.


9. As per the financial projections, you will make a minimum of Rs.50,000/- per year per pair. If you have 10 pairs, you make Rs.5,00,000/-, which is more than a IT professional earns in a year.


I am not going to comment on this. My only advice is that do not take it as your full-time sole job, since this is a seasonal business. Rest of the season, virtually you don't have anything to do.

10. All kinds of guidance, regular farm visits will be provided by the farmer.

Unless you are signed up for Contract Farming, you will get first one or two "pampering" visits. That's it.

I look for your comments, if you have any.

Emu Farming - the honeybot

Emu Farming has been a magic word for the past few years.

Most of the Geography students might have seen the outline pictures in the books about these birds, which are mainly found in Australia. Emu is the national bird of Australia, like what Peacock to our Country.

But, Emu farming was identified and developed as a business by US Farmers. In US, there were very high hope of this business in the earlier times, later, it has been dwindled.

In India, it has been claimed that 'Flightless birds of India' farm is the first one to bring this to India, through Chennai Airport. However, many others were also claiming they are the first one. This is looking like, one of the Cloth Shop in Trichy, claims they are the biggest Cloth shop in the entire country. who knows!!??

What's the sweetspot in this business, which initially attracted me? I will explain each of these facts, how far they are true in reality, later.

1. Emu's can lay 50 eggs per year.

2. Each Egg costs a minimum of Rs.1,500/-

3. The Farmer who sold the chick/bird will buy back the eggs, hence no Marketing issues.

4. The feed cost is around Rs.3,000/- per year for a bird. Farmer who sold the birds will provide regularly the "specially & custom-made" feed to you.

5. No diseases;

6. No Climate issues;

7. Just a fencing at a cost of Rs.15,000/- will do;

8. virtually NO MAINTENANCE at all.

9. As per the financial projections, you will make a minimum of Rs.50,000/- per year per pair. If you have 10 pairs, you make Rs.5,00,000/-, which is more than a IT professional earns in a year.

10. All kinds of guidance, regular farm visits will be provided by the farmer.

But, in reality, every point they have mentioned or spread through word-of-mouth turns out to be either understated or overhyped. But, you will realize only after you have committed, except few lucky-ones who have already researched enough of these facts before burning their fingers. Let me explain those each facts in my next blog.

PS: Thanks to Anil, who has posted me about www.emufarmer.com, which is hyderabad based EMU Farmer association. Good to know that there are some organized activities are going on in this industry. Tamil Nadu is yet to catch up to Andhra in this regard.

Emu Farm

This is my first blog.

I have just setup a Emu Farm near Trichy, Tamil Nadu. The farm has a 360-egg capacity, with expansions plans to increase it to 1000-egg capacity.

The blog has been started just to share my experience in Emu Farming. Currently, people are cashing on in their experience, minting money. I couldn't tolerate once an Emu Farmer has charged me Rs.50/- for visiting his farm.

Look for my next post, where I can start sharing my experience in Emu Farming.

Regards,
JM