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.