The Emu Industry
Although
the commercial Emu industry dates only to the late 1980's, the ratite industry
is relatively new only to the United States. The ratite industry
dates back over 130 years to the Ostrich farms founded in South Africa. For nearly 100
years, South Africa controlled and
monopolized Ostrich production. Early in history, the South African government
prohibited the exportation of sexually viable Ostrich or their fertile eggs.
Recently, under new trade regulations, Ostrich chicks and eggs have been
allowed to be exported. In our country, the chicks and eggs must undergo a
strict quarantine, which eliminated the majority attempting exportation.
The Emu
industry experienced a similar monopolistic situation with the Australian
government. Exportation only occurred to zoos and private collections. Since
1960, the exportation of chicks, adults and fertile eggs has been prohibited.
The Australians are also in the early stages of a commercial Emu industry and
with government help and assistance have developed extremely large ranching
facilities. Much of the Emu meat currently sold in the United States is Australian in
origin. Unlike the United States, the Australian
government controls, approves and supports the Australian Emu industry.
In the United States, the domestic production
of ratites gained acceptance among forward thinking southwestern and southern
ranchers seeking livestock diversification and alternative sources of income.
The domestic production of ratites expanded rapidly in the late 1980's and into
the 1990's focusing primarily on existing livestock, exotic animal producers
and other ratite ranching operations. Due to the extreme shortage of the Emu
and Ostrich, breeding stock began demanding extremely high prices.
Economically, as the interest in ratites grew, the supply lagged behind and
this drove prices even higher. Unscrupulous entrepreneurs saw this as a golden
opportunity to profit and they began promoting the future benefits a commercial
ratite market could have as though it were nearly a current reality.
Without
standards, avian research, genetic studies, tracking capability, or specie
knowledge nor a base of data, many small to medium investors were induced to
invest their life savings into artificially inflated "superior bird"
prices approaching the $50,000 to $100,000 per pair prices.
By the mid
1990's, the supply of chicks from these adaptable and prolific birds exceeded
the demand, since no commercial outlets yet existed for American produced
ratite livestock. Despite an outward appearance of a glut of birds, the actual
live inventory never approached 1/30th of the livestock inventory required to
even support 1% of domestic meat consumption.
Many small
growers were enticed into the speculative breeder market by unsupportable and
unrealistic promises of fast wealth mirroring what the speculators were able to
attain. When the apparent glut appeared, panic rapidly spread through these
seekers of fast dollars. With the panic came an almost overnight decline in
bird prices.
Growers
interested in the natural process of raising birds and transitioning into a
commercial industry were faced with a sudden glut of
birds on the market and fire sale prices. The value of all ratites was severely
undermined by this panic.
Serious
growers did not panic. They knew the possibilities of a commercial market and
focused their resources on retaining their breeding stock while systematically
reducing their production stock to what the market would bear. As the panic
progressed, even some seasoned growers divested themselves of their flocks,
some because of the decline in the profit rich breeder market, and some for
other reasons. This added to the glut of birds and put further drain
financially on those growers retaining faith in the birds.
To further
exacerbate the situation, panicky growers with questionable ethics, began whole
releasing birds into the wild. Some were discovered clubbing their birds on the
head or marshalling hunters for a once in a lifetime hunting experience. The
publicity from these actions fueled the media and in turn the public's
perception that the Emu business was filled with risk, lacked reality and the
bottom had dropped out of the market.
Without
government research money or active support, a few growers continued the quest
for marketable commercializable products and to bring
the ratite industry forward. Despite the infusion of money and research by
other countries to assist their ratite growers in bring their products into
commercialized use, the States and Federal governments relied upon the negativism
reported by the media to justify a lack of interest to bring a new specie into
commercialized use, and permit America's farmers a means of bring profit back
to the small family farm.
Associations
and trade groups were formed during the speculative and high dollar years.
Meetings were held, conventions extolled the upcoming commercial markets, and
some minor research into the birds and their potential commercial uses was
funded. At one point in time more than 20 groups were active with over 9,000 members.
Under the auspices of some of these groups and companies, several universities
performed research on the technical aspects of ratites. Among then were Auburn
University, Iowa State, Texas A&M, Texas Tech,
University of Arkansas, Oklahoma State, Mississippi State, University of
Missouri, Georgia State and Louisiana State. Many of these universities
continue research even today.
The
raising of ratites is viewed as an alternative to the raising of crops and other
traditional livestock. It comes at a time when family farm profits from
traditional sources is declining to all time lows and diversification offers
the only visible hope for the small family farm. Successful commercialization
of the Emu and Ostrich markets offers a significant hope for these farm
families. But commercialization is not an overnight process.
Commercialization
will progress in due course. With governmental assistance it would grow more
rapidly, but even without it, the markets will still grow. With this growth
will come tremendous opportunities for growers large and small, especially if
they can learn to work together.
Legislatures
in many states now recognize ratites as livestock on par with other species.
USDA now considers providing subsidized loans and promoting low cost loan
programs for new or existing farmers to encourage participation in alternative
agricultural.
With the
ridiculously high livestock prices of the early '90's, development of a
commercial meat, hide, oil, feather or by-product
market was prohibited by prices. With the market value of the collective
commodities being far less that the value of an animal sold as a
"breeder", both supply and product pricing prevented much market
penetration of the products as they were developed.
The
consolidation of meat processing facilities and closure of many small
processors has led to a shortage of inspected processing available to those
growers actively developing commercial markets. Without the ability to create
adequate supplies to meet commercial user needs and requirements, the current
markets will continue to develop as niche markets supporting those developing
them.
Until
enough investor money, venture capital or governmental development funds are
allocated to support product development and market penetration for ratite
products, the growth will continue at a steady but measured pace. The outlook
for the venture capitalist is rosy. With the published and patented
applications for ratite products, the consumer acceptance that has been proven
to date, and the potential uses not yet publicly disclosed, double-digit
profits are not a dream but a reality for the astute investor.
Home / Tours / Emu Vs Cattle / Emu Facts / Emu Industry / Links
Peewee The Emu / EmuMagic
Emu Products / Emu Oil
Emu Nutrition / About The
Ranch
