Emu Schemes - Maladies of our time

I am seeing a lot, a lot of lot, advertisements in the Tamil Newspapers, Radio and TV Media, for Emu Farming and its dubious schemes. I am little worried about the stupendous nature of the propaganda, and associated 'freebies'.

I am not sure about other states. People can share them in the comments of this blog.

Only one word, beware...!!!  Be cautious about your hard-earned money on these schemes.

Why I am worried?

1. There is no effective meat market developed yet for export or for local sale and there is no symptoms of it, so far. In my opinion, exporting emu meat is simply not profitable. It has to be sold locally.

2. Unimaginable monthly returns are assured and tempted with Gold Coins. In my opinion, the industry is heading to peak for this year 2012 season (September 2012 to February 2013), and will go down for the next season.

3. Officials from Veterinary Departments, preferred to stay away from saying any comments on this business, since they are not very sure of where it is going. There is no guidance or regulations from the government.

So, whom to beleive in? The game is keep going, and let's see how long will it go.

There are several stories are floating. One thing is certain as the money collected is not purely invested in Emu Farming Business alone. It goes somewhere..!!.

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.

Status of Emu Slaughtering Houses in Tamil Nadu

I spoke to few big emu farm owners last week. I got good news on the emu slaughtering houses with some concrete plans.

Jeevan Emu Farm is expected to start operation in their Slaughtering House by early weeks of August 2011. The Plant location is near Saanarpatty, Dindigul (TN). Jeevan has already started their Contract farming in a large scale last year. I have mentioned in detail about their scheme in my earlier post.  Mr. Rajapandiyan, CEO of Jeevan Emu Farms has indicated that they will shortly commence the operation in the Emu Slaughtering house tentatively in first week of August 2011.

The big player, Susi Emu Farms (SUMU), has their slaughtering house is on the cards before Dec 2011, after signing a consultancy agreement the past weeks. The Marketing for emu meat and fat will be done by an Industry Veteran (name withheld by request). I understand from that Friend is that they have secured a Meat Order from Overseas, which requires to cull 850 adult birds a month to produce the required quantity.

Also, Susi Emu farm has started expanding their business in Southern Districts after opening up branches under their umbrella.

The other two parties waiting in the sideline to pick up the slaughtering house business are VC Emu Farms, Salem, and MMT Emu Farms, Karur. I do not have an idea about these two, but, they have potential since they hold large quantities, in Tens of Thousands, of Emu Birds under their Contract Farming business.

It's very clear that the Emu Industry is finally kick starting in Tamil Nadu.

It's a good news, isn't it?

Emu Eggs - Some Facts

Now, Emu industry is quite, because everyone is concentrating on collecting eggs, and monitoring their hatcheries. This is the Egg Laying season, and several of them already have chicks in their Hatcheries. Let's look into some interesting facts about Emu Eggs.

Laying Cycle:

• Emu birds lay eggs in a cycle of 5 or 6 eggs in a month. 
• After each cycle, there will be a gap of one week.
• Gap between two eggs is 72-74 hours (3 days).
• Emu Eggs weighs 400grams to 700 grams in general. 
• Average weight is 550 grams.
• In an average, there will be 4-6 cycles every season. (5x4=20eggs min; 6x6=36eggs max)
• Eggs will be laid in evenings or in early mornings. You can collect them around 6.30 pm to 7.30 pm. 

Egg Types:

• Each egg from a pair will be of same size and same weight, most of the times.
• Eggs are in dark green color with thick shell.
• Eggs are sometime in light green (whitish) color, which shows that some nutrients are missing, especially calcium. Add calcium supplements to the feed.
• Sometimes, you will get shell-less eggs -  eggs with just thick white membrane. This is caused by serious calcium deficiency. Add seashells powder to the feed.
• Eggs rarely formed a double-yoke. Double yoke eggs weigh almost 900grams to 1200 grams. These are useless, they never hatch. Better use it for "Big Family Omlette or Party Omlette"

Egg Handling:

• Egg handling does decide the hatchability of the Eggs.
• Egg has to be collected shortly after the laying. Do not leave it in open yard for too long.
• Egg has to be cleaned before storing. Clean it with a Warm water, and then use an antiseptic liquid with a cotton to clean it. This is to prevent bacterias.
• Store the eggs in below normal temperature, say 22-26 degree celcius. If you couldn't maintain at that temperature, use a dark place to store it. A earthern pot is also useful.
• While storing the eggs, keep them in horizontal state. Do not keep them upwards.
• Use it within 7 days of storage (in a dark room condition). If you are storing at 22-26 degrees, you can keep it for upto 3 weeks (I have tested and the hatchability is 80%).
• While transporting from location to another location, use a thermocol box, which has been designed to carry the eggs. Otherwise, road conditions may prove fatal for the eggs.

Egg Buying:

• Eggs are sold to Hatcheries, where people do not have their own incubators.
• Do not buy eggs from a distance of not more than 3-hours travelling time. 
• To ensure the air bag is intact inside the egg, use a warm water to test the eggs. If the air bag is intact, the Egg will float. Otherwise, it will sink.
• Visit the farm atleast once, where the eggs are coming from. Teach them the above mentioned Egg-handling habits.

I would appreciate people can feedback on the Egg prices in their region, as a response to this post.

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.