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.