Distribution of Meat Products from Prospective Australian Animal Industries: Crocodiles, Emus, Game Birds, Rabbits, Hares and Snails

Distribution of meat products from prospective Australian animal industries: crocodiles, emus, game birds, rabbits, hares and snails

A report for the Rural Industries Research and Development Corporation by Jacquie Bodger and Brendan Goulding

March 2003

RIRDC Publication No. 03/023 RIRDC Project No. DAQ 278A

ISBN 0642 58591 1 ISSN 1440-6845

Distribution Of Meat Products From Prospective Australian Animal Industries Publication No. 03/023 Project No. DAQ-278A

The views expressed and the conclusions reached in this publication are those of the authors and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report.

This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other inquiries concerning reproduction, contact the Publications Manager by telephoning (02) 6272 3186.

Researcher Contact Details Jacquie Bodger Brendan Goulding Senior Rural Trade Officer Rural Trade Officer AgriInfonet Rural Market Development Rural Market Development Department of Primary Industries Department of Primary Industries PO Box 46 PO Box 46 Brisbane Qld 4001 Brisbane Qld 4001 Phone: (07) 3239 3315 Phone: (07) 3239 3307 Fax: (07) 3221 3896 Fax: (07) 3221 3896 Email: [email protected]

In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form.

RIRDC contact details: Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street Barton ACT 2600 PO Box 4776 Kingston ACT 2604

Telephone: (02) 6272 4539 Fax: (02) 6272 5877 Email: [email protected]. Website: http://www.rirdc.gov.au

Published in March 2003 Printed on environmentally friendly paper by Canprint

ii Foreword

This report presents the research findings into meat distribution systems within the crocodile, emu, game bird, rabbit, hare and snail industries. The information is based on case studies compiled from face-to-face interviews, and a background to each industry is also included. Statistics for these industries are often unavailable, but where possible they have been obtained from official government sources.

When reviewing previous research that had been carried out within the emerging Australian animal industries covered by this report it was found that although work had been undertaken in the areas of production, marketing and product development, little was documented about the logistics and distribution of products in these smaller animal industries.

The aim of this project, therefore, was to describe current methods of distributing the meats from the processing works to the customer. The information is presented in the form of case studies that are examples of typical supply chains. The grower and processor are often one and the same, or work hand in hand, in which case these case studies also reflect the supply chain from paddock to plate. These case studies are prefixed by an overview of the industry, products, markets, logistical, and legislative issues.

This publication also takes industry issues into consideration, documenting the main areas of concern; and it puts forward recommendations for future research as reflected by these industries.

This project was funded from RIRDC core funds, which are provided by the federal government.

This report, a new addition to RIRDC’s diverse range of over 900 research publications, forms part of our new animal products R&D program, which aims to accelerate the development of viable new animal industries.

Most of our publications are available for viewing, downloading or purchasing online through our website:

downloads purchases .

Simon Hearn Managing Director Rural Industries Research and Development Corporation

iii List of terms

AFFA: Department of Agriculture, Fisheries, and Forestry Australia

AQIS: Australian Quarantine Inspection Service

ANZFA: The Australia New Zealand Food Authority

BSE: Bovine spongiform encephalopathy

CALM: Department of Conservation and Land Management, Western Australia

CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora

Cryovac: vacuum packaging system

Doe: female rabbit

Eviscerated: gutted

Game bird dressed weight sizes: Each size increment represents 100 g (e.g. size 2 = 200 g)

HACCP: hazard analysis critical control point

Jerky: dried meat product

Kitten: baby rabbit

PAAI: prospective Australian animal industries

Q Safe: Safe Food Queensland

Squab: Baby Pigeon

iv Acknowledgments

The authors are grateful to the Rural Industries Research & Development Corporation for providing funding for this project.

The authors also acknowledge and thank the many industry members and government representatives who kindly devoted their time to provide the valuable knowledge and guidance necessary for the preparation of this report. In particular we give special thanks to the harvesters, producers, processors, distributors, wholesalers, retailers and members of food service organisations who participated in the case studies provided in this report. Their assistance and insights contributed greatly to the understanding of the distribution of game-meat products and the wider industry issues prevalent today.

Additionally, the authors express their gratitude to the representatives of the state and federal government agencies and researchers for providing information, statistics, and advice on the regulations for each particular species.

The authors would particularly like to thank Judy Noller, DPI Marketing officer, Cairns, who carried out a survey of restaurants in Cairns to assess consumer acceptance and markets for of the various meats. Also Simon Wills, DPI Rural Trade Officer who conducted research in Adelaide and Melbourne.

Contents

Foreword...... iii List of terms ...... iv Acknowledgments...... v Executive summary...... viii 1 Introduction...... 1 1.1 Objectives...... 1 1.2 Background ...... 1 1.3 Scope and limitations of research...... 1 2 Crocodile...... 3 2.1 Industry overview...... 3 2.2 Products...... 4 2.3 Markets ...... 4 2.4 Price ...... 5 2.5 Value chain analysis...... 5 2.6 Legislation...... 6 2.7 Case study: Crocodiles – Queensland ...... 6 2.8 Case study: Crocodiles – Western Australia ...... 11 2.9 Major issues ...... 14 2.10 SWOT analysis: crocodiles ...... 16 2.11 Future directions ...... 17 3 Emus ...... 19 3.1 Industry overview...... 19 3.2 Products...... 20 3.3 Markets ...... 20 3.4 Price ...... 21 3.5 Logistics...... 22 3.6 Value chain analysis...... 23 3.7 Legislation...... 24 3.8 Case study: Emus – Queensland ...... 25 3.9 Case study: Emus – South Australia ...... 31 3.10 Major issues ...... 34 3.11 SWOT analysis: emus...... 35 3.12 Future directions ...... 36 4 Game birds...... 37 4.1 Industry overview...... 37 4.2 Markets ...... 38 4.3 Duck...... 38 4.4 Pheasant ...... 40 4.5 Quail...... 40 4.6 Squab...... 42 4.7 Wild pigeon...... 42 4.8 Value chain analysis...... 43 4.9 Legislation...... 44 4.10 Case study: duck ...... 45 4.11 Case study: pheasant ...... 47 4.12 Case study: quail ...... 51 4.13 Case study: squab...... 53 4.14 Case study: wild pigeon ...... 57 4.15 Major issues ...... 58 4.16 SWOT analysis: game birds...... 61 4.17 Future directions ...... 62 5 Farmed rabbits...... 64 5.1 Industry overview...... 64 5.2 Products...... 65 5.3 Markets ...... 65 5.4 Price ...... 66 5.5 Logistics...... 66 5.6 Value chain analysis...... 66 vi 5.7 Legislation...... 67 5.8 Case study: farmed rabbits – New South Wales ...... 67 5.9 Case study: farmed rabbits – Victoria ...... 70 5.10 Major issues ...... 75 5.11 SWOT analysis: farmed rabbits ...... 77 5.12 Future directions ...... 78 6 Wild rabbits and hares...... 80 6.1 Industry overview...... 80 6.2 Markets ...... 80 6.3 Products...... 81 6.4 Price ...... 81 6.5 Products/packaging ...... 81 6.6 Logistics...... 81 6.7 Value chain analysis...... 81 6.8 Legislation...... 81 6.9 Case Study: wild rabbits and hares – New South Wales...... 82 6.10 Major issues ...... 85 6.11 SWOT analysis: wild rabbits and hares ...... 86 6.12 Future directions ...... 87 7 Snails...... 88 7.1 Industry overview...... 88 7.2 Market...... 88 7.3 Legislation...... 88 7.4 Case study: snails ...... 88 7.5 SWOT analysis: snails ...... 90 7.6 Future directions ...... 90 8 References...... 92 9 Appendices Appendix 1: Australian exports of crocodile meat by country (kilograms) ...... 94 Appendix 2: Australian exports of emu meat, 1994–2000 (kilograms) ...... 95 Appendix 3: Crocodiles – legislation, regulations and licensing for domestic use ...... 96 Appendix 4: Emus – legislation, regulations and licensing for domestic use ...... 101 Appendix 5: Game birds – legislation, regulations and licensing for domestic use...... 107 Appendix 6: Farmed rabbits – legislation, regulations and licensing for domestic use ...... 109 Appendix 7: Wild rabbits and hares – legislation, regulations and licensing for domestic use ...... 111 Appendix 8: Contacts – crocodile producers/processors & researchers...... 112 Appendix 9: Contacts – emu processors/federation & trade...... 114 Appendix 10: Contacts – farmed rabbits, wild rabbits, game birds, snails & game meat wholesaler...... 115

vii Executive summary

This project examines the issues involved in the distribution of meat products produced from crocodiles, emus, game birds, rabbits, hares and snails. These industries comprise relatively small producers trying to establish markets for their meat products.

The movement of these meats from the processor to the customer is controlled and regulated by legislation and licensing bodies, and this area became an important part of the study. The consensus of opinion was that all logistic issues were taken care of within this framework, which includes quality control (HACCP) and accreditation systems (Safe Food); and it was felt that any problems would be quickly resolved. However, the rules and regulations vary from state to state; for example, meat- licensing costs differ widely between states in some industries.

In every industry it was suggested that additional support was needed for marketing the products and raising awareness of the meats, which are not always well accepted or understood by Australian consumers.

The main domestic markets for these meats are in areas catering to the tourist industry from overseas or to Asian and European communities. The meats included in this report are all competing against the more established domestic meats in the Australian marketplace. This means these meats need strong marketing to overcome price resistance, and in some instances consumer reluctance to try them.

Distribution channels were well established and becoming more competitive at the retail end of the chain. However, economies of scale were hard to achieve for these small industries.

Seasonality was also an important factor in both supply and distribution; consistency of supply of some meats was therefore not always achievable. In most cases the supply of frozen meat made it possible to maintain supply; but fresh meat is preferred by the restaurant trade.

Labelling was seen as important, because it provides an opportunity to advertise not only the brand but also the quality-assurance status and analysis of the meat, especially for product sold into the retail sector. Packaging could be improved in the areas where whole carcasses were supplied (e.g. rabbits, hares and some game birds).

Only licensed accredited food vehicles can carry these meat products, and availability of transport is often a limiting factor. Some producers favoured road transport over airfreight. This was because air transport had been found, in some instances, to compromise the quality of the meat by the breakdown of the cool chain, and by poor handling practices. Proximity to markets did not appear to be an issue with producers, although the location of these businesses often impacted on the ability and cost of delivering product to the marketplace.

Demand for crocodile meat, some game birds and rabbit/hare meat was reported to be greater than current domestic production. There was apparently only a very small demand for emu meat and snail meat.

Supply networks in these fiercely competitive industries could be improved. For example, customers were sometimes not aware of the availability of some of these meats, and in some cases assumed lack of supply or did not know who to contact for alternative supply.

viii Future directions Analysis of these industries has revealed a number of opportunities to develop the market for the meat products covered in this report. In summary, these are: • assistance in marketing to establish viable markets for these products; • market research into export markets to maximise opportunities for Australian animal meats; • development and promotion of electronic communication systems for documentation and exchange of information; • scientific research to determine the current risk of tapeworm (Spirometra erinacei) infection from crocodile meat; • scientific research into the medicinal properties of meat, oil, blood and cartilage; • information dissemination on new developments in packaging; • alternative harvesting methods for rabbits rather than the use of disease control; • possible joint promotion of the smaller industries in Australian animal meats.

Assistance in marketing was most often suggested as needed by these industries. Domestically, encouragement might be given to regional food projects, which may develop a brand to differentiate and promote these meats from the more widely accepted domestic meats.

There is a global demand for alternative meats, as a result of food scares caused by diseases such as foot-and-mouth disease and bovine spongiform encephalopathy (BSE). Some Australian animal meats are more successful than others in these export markets. Australia holds a unique position for marketing native animal products overseas, as a technically advanced country with a clean, green environment. It is recommended, therefore, that work should continue to assist growers to capture these export markets.

There was reportedly far more time-consuming documentation required for the distribution of crocodile meat than for crocodile skins. This may be an area that could be streamlined by better use of electronic communication.

Gourmet restaurants prefer fresh (chilled) rather than frozen meat. Under present regulations crocodile meat must be frozen to eliminate the risk of tapeworm (Spirometra erinacei) infection. Some producers believed that this parasite has not been found in the meat for some years. Since the parasite was first identified management systems have changed. It is suggested, therefore, that this protocol might be addressed and research carried out to establish whether the restriction is still necessary for food safety.

Some of these Australian animals are reported to have extreme resistance to disease, especially the emu and crocodile. There may be opportunities to interest commercial companies in examining potential by-products from these animals (e.g. blood and cartilage), which are currently discarded, and to carry out scientific research to identify any nutraceutical value.

Packaging is an area that continues to develop, and work is under way to develop the technology even further. It is suggested that processors should be kept informed of any new developments in this area, with a view to updating their current packaging methods.

Disease issues create barriers to trade. In recent times disease-control programs have been implemented to control populations of unwanted animals. It is reported that this often happens with little consultation with other stakeholders. It is suggested that there are often markets for these food proteins and more research should be carried out into quick and effective methods of catching and utilising the meats.

It is suggested that an industry development officer might be employed to represent a number of the smaller meat-producing industries, coordinating industry promotion and encouraging industry growth. This could include helping to capture government incentives and commercial investment for these industries. Cohesiveness within the industries needs to be encouraged, and a central focus can help to achieve greater communication between groups. ix

1 Introduction

1.1 Objectives The aim of this project was to analyse, present and recommend strategies for the future distribution of meat products from the prospective Australian animal industries (PAAI) within the Australian domestic market. These include meat products from crocodiles, emus, game birds, rabbits, hares and snails.

Specific objectives of the project include: • to describe, by means of case studies, the current methods of distributing the above PAAI meats from processing works to the customer; • to analyse the methods by the SWOT technique (strengths, weaknesses, opportunities, threats); • to identify and assess present research and development that is aimed at producing innovative methods for the future; • to determine key strategic issues; • to make recommendations to RIRDC for future research and development.

1.2 Background The Rural Industries Research and Development Corporation (RIRDC) requested research to be undertaken to investigate the distribution systems for crocodile, emu, game birds (duck, pheasant, quail, squab and wild pigeon), rabbits, hares and snails within the Australian domestic market.

RIRDC’s charter of research and development activities covers production, processing, storage, transport and marketing. To date there has been a relatively small proportion of funding invested in the research and development of the distribution chain from processing/storage to purchasing by customers. This project addresses these issues and identifies key areas for improvement in each industry, while also recommending to RIRDC areas in which future research funding should be invested.

The project followed a five-stage process, from selection of case studies through to development of appropriate research strategies and dissemination of results to industry.

1.3 Scope and limitations of research Some time was taken at the beginning of the research to identify the various distribution chains for each of the meats covered in this report. Chains were selected for each industry, which were different in their structure. Selection was also influenced by geographical location and willingness to participate in the research.

The case studies provided have been collected by personal interview with chain members over a period of one year, and therefore represent just a snapshot in time. Because of the dynamic nature of these industries, situations and chains may change.

In some cases interviewers had difficulty in obtaining sufficient information from the participant, mainly due to the environment in which the interview was conducted. Participants were often interviewed at their place of employment, where there were constraints on the time they could devote to the interview.

Most of the products in this report are classified as domestic meats, and have similar markets. The exceptions are wild rabbit and hares, which are caught in the wild and therefore classified as game meat, and crocodile, which is classified as seafood (See page 8). However, these definitions are often overlooked in general usage, and it was found that all these meats are often referred to as ‘game meat’.

Hares are processed and distributed in a similar way to the wild rabbits, and have therefore been combined to avoid repetition. Hares are not farmed in Australia, and so far hare production has not been found to be technically feasible.

Company names are sometimes omitted to maintain confidentiality; information has also been summarised to avoid repetition.

Statistical data was difficult to obtain for these small industries and in some cases is not reported. Where it was not possible to obtain statistics from a recognised body, estimates were based on feedback from industry.

Economic analysis is restricted to costs and returns where available, rather than a full economic analysis. This is because the small size and competitiveness of these industries precludes detailed information of an economic nature being divulged.

2 Crocodile

2.1 Industry overview Australian crocodile farming began in Queensland in the 1960s and later expanded into the Northern Territory and Western Australia. Meat and skin production is from two species – freshwater crocodile (Crocodylus johnstoni) and saltwater crocodile (Crocodylus porosus). Saltwater crocodile is the dominant species as it commands the higher price for skins. Skins provide the main income source, while meat is a by-product of skin production (DPI et al. 1996).

Crocodiles are harvested throughout northern Australia. Crocodile operations in Western Australia and the Northern Territory involve ranching (i.e. captive breeding supplemented with wild harvesting). In Queensland, however, it is illegal to capture wild crocodiles unless (in special circumstances) a licence has been granted (Environment Australia 2002).

The trade in crocodile products (skins, skin products and meat) is controlled by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Permits are issued by Environment Australia to monitor the trade in crocodile products.

The domestic market is supplied by Australian-produced crocodile meat, as well as imports from Papua New Guinea.

In Australia (2002) there are only 11 farms identified as supplying crocodiles for the skins and/or meat markets and a further two farms producing small crocodiles, which are on-sold to other farms for growing out. In 2002 it is estimated that there were approximately 68 148 crocodiles on 13 farms in Australia, (Table 2.1).

A total of ten farms have processing facilities, and of these six are export accredited. In 2002 there were two new processors in North Queensland supplying meat to the domestic market (appendix 8). For quarantine and transport purposes crocodile meat is classified as seafood, which determines the food safety regulations and requirements to be followed throughout the distribution chain.

Table 2.1: Number/location of processors/producers of crocodile meat, 2002 State No. of No. of *Farming producers processors stock Western Australia 2 2 7 220 Northern Territory 5 4 39 000 Queensland 6 4 21 928 Total 13 10 68 148 Source: Interviews 2002 * Estimated from figures quoted by industry

In 2001 15 016 crocodiles were processed for skins (Environment Australia 2002). An estimate based on the number of crocodile skins tagged in 2001 indicates that around 90 tonnes of crocodile meat was available to the marketplace. In 2001 permits were issued for the export of over 57 tonnes of crocodile meat, indicating that approximately 63% of production was exported and 37% was utilized in the domestic market (Environment Australia 2002).

2.2 Products Crocodile meat cuts fall into three categories: tail, body and leg meat. The tail meat is sold bone-in or boneless; meat with the bone in can be sold for a lower price due to the reduced processing costs. Crocodile meat is also processed into jerky (dried meat), which is mainly sold to tourists; and there is a small tourist trade for crocodile heads, claws and teeth.

Legislation requires that crocodile meat be sold frozen only, due to concerns about the threat of the tapeworm Spirometra erinacei, which could potentially be found in chilled meat. This parasite is killed when the meat is frozen. The last reported occurrence of the tapeworm in crocodile meat in Australia was in 1987.

2.3 Markets The two main market segments for crocodile meat in Australia are restaurants and hotels that service the tourist trade and the Asian/Chinese market. The crocodile meat is sold from the farm either direct to local restaurants or through a wholesaler.

In the restaurant sector crocodile is typically sold through up-market gourmet restaurants and in areas of tourism. The meat is sometimes combined with other game meats to offer an ‘Australian experience’. In this instance very small amounts of meat are used for each serving.

Interviews conducted with ten restaurants in Cairns showed that restaurants used from 2 kg to 20 kg of crocodile meat per week. Tail fillet was found to be the most popular cut. Australian crocodile meat was also reported to be of consistently high quality, whereas the cheaper meat from Papua New Guinea (PNG) was considered to be of poorer quality.

Restaurants selling crocodile meat typically serve it in kebabs as an entree, or for a main course as part of a combination dish made up of other meats such as ostrich, emu, kangaroo and wild boar. Crocodile meat is also used to make Japanese dishes such as sushi. These menu dishes are sometimes presold to Japanese tour operators, who direct their clients to the restaurants.

The Chinese market segment favours crocodile meat with the bone in. Wholesalers sell the meat to Asian shops and retail stores, which sell it on to restaurants. The Chinese believe that crocodile meat has health benefits and use it to prepare a soup, said to cure colds and influenza.

Australia’s imports of crocodile meat have been declining since 1994, while exports continue to increase. In 1994 Australia imported 158 729 kg of crocodile meat from Papua New Guinea and exported only 5 828 kg of crocodile meat from Australia. At that time the main export markets were China, Hong Kong and New Zealand. Since 1994 exports have increased almost tenfold, to 55 985 kg in 2000. The main market was Taiwan, with smaller quantities exported to Japan, New Zealand and Europe (appendix 1). In 2001 licences were granted to export 57 323 kg of crocodile meat and 205 kg of crocodile jerky (Environment Australia 2002).

200000 Total exports 150000 Total imports

100000 Total re-exports

50000

0 Exports/imports (kg) 4 6 8 0 199 199 199 200

Figure 2.1: Australian imports and exports of crocodile meat, 1994–2000 based on permits issued Source: Environment Australia 2002

2.4 Price Prices reported by the industry varied considerably. On-farm prices ranged from $10/kg to $31/kg for body or tail meat (bone in), and wholesale prices from $12/kg to $31/kg (see table 2.2). Bone-in meat is less expensive than filleted cuts and PNG crocodile meat was said to be cheaper than Australian. In some cases the farm and wholesale price were the same, as some farms also wholesaler their own product.

Restaurants were found to be selling entrée dishes at between $9 and $18 and main courses between $24 and $42. Hotel restaurants said that crocodile meat was too expensive for the mass market and was therefore only served in fine-dining restaurants.

Table 2.2: Domestic prices of crocodile meat ($/kg) and meals ($) Farm Wholesale Retail Restaurant Tail 20–31 20–31 23–40 Entrée 9–18 Body 10–28 18–28 19 (bone-in) Main 24–42 Leg * 12–15 15–20 Other** 30–40 per dish Source: Interviews 2001–02 * Sometimes included with body meat. ** Includes combination dishes with other game meats.

2.5 Value chain analysis Table 2.3 below represents the typical costs and returns associated with distributing crocodile meat from the farm to the retail sector.

Table 2.3: Typical costs and returns throughout the crocodile meat value chain Section of value chain Cost/return Restaurant serving $9 entrée to $42 main Wholesale price/per animal $12–$31 dependent on cut Cost of sales *n/a Transport cost/per animal $1–$3/kg Production cost/per animal **$503 Note: The costs and returns are a guide only. They will vary according to the distance between members in the distribution chain. Source: Interviews 2002 *Data not available **Maximum from DPI croc profit calculator

2.6 Legislation Crocodile meat must be derived from farmed animals; and it must be handled in accordance with the conditions specified in the Australian Code of Practice for Veterinary Public Health: The Hygienic Production of Crocodile Meat for Human Consumption, 1993. A person must not sell as food any part of the carcass of the family Crocodylidae that is not crocodile meat (ANZFA) (see appendix 3).

The farming of crocodile is subject to state legislation, which addresses both animal health and environmental issues; the legislation differs in each state. Processing and transporting crocodile meat comes under the Meat Industries Act 1996 and regulations, and the relevant department with responsibility for the licensing and enforcement of food safety in each state. Permits are sometimes required for importing or exporting crocodile parts or products between states, but again requirements vary from state to state (appendix 3).

2.7 Case study: Crocodiles – Queensland

Crocodile farm

Processor

Transporter

Wholesaler, PNG Imports Sydney

Restaurants/hotels

Figure 2.2: An uncomplicated supply chain, direct from the producer/processor to the wholesaler who supplies the restaurant/hotel market in Sydney

2.7.1 Overview This case study provides an example of a new supplier of crocodile meat with an uncomplicated supply chain on the east coast of Australia. This new company demonstrates vertical integration and progressive thought in the areas of production, processing and marketing. Although all efforts were made to follow the one supply chain from the producer to the restaurant it was not always possible and a restaurant was interviewed that was using meat from the Northern Territory.

2.7.2 Producer The Melaleuca crocodile farm is situated on about 100 acres a short distance from the North Queensland town of Mareeba, some 60 km from Cairns. The crocodile facility occupies about 6 acres. The farm is stocked with eight breeding females and two males, divided into two breeding groups of four females and one male. In addition, there are 220 nursery crocodiles and 200 growers.

An intensive farming system has been designed. There are two enclosed nursery sheds, each of which houses around 100 baby crocodiles. At the age of one year the small crocodiles (just over 2 feet in length) are moved into the growing sheds, where they double in size over the next 12 months. They achieve processing (handbag) size of 160–180 cm wide at 2 years of age.

A new growing shed is under construction. This shed is divided into four pens, each of which can house 125 small crocodiles. The floors are made from concrete with differing levels to allow the crocodiles to have access to both wet and dry land areas. The shed is also designed to maintain environmental security (to exclude frogs and lizards), and has a reticulated water system and ventilation system to provide clean water and air. Natural ventilation is not used, because the temperature needs to be kept at 32°C with high humidity levels for maximum weight gain. Under these conditions the crocodiles reach handbag size by 2 years of age. Three additional sheds (60 feet x 40 feet) will be built during 2002.

The owner of the farm, Peter Fisher, said that crocodiles are subject to stress; if overstressed they will die. Adult crocodiles are penned individually in enclosed metal crates. Each has a swimming area and dry land area where the females build their nests. The crocodiles are fed on culled ‘Steggles’ chickens that are purchased whole from a local chicken farm. The feathers are also fed, as it is believed they contained important nutrients. Baby crocodiles are fed chicken pieces three times a week and adult crocodiles are fed one whole chicken once a week.

The crocodiles are killed on the farm. They are first stunned, which allows the quality of the skin to be examined. If the skin is damaged the crocodile is not killed, but instead allowed to continue to grow out; the skin generally repairs itself. If the skin is undamaged the crocodile is stunned and the spinal cord is severed with a knife behind the head. Each crocodile is processed within 24 hours of killing to conform to food regulation requirements. The crocodile is hung to bleed out overnight in a cold- storage box maintained at 2°C, mounted on a trailer. This trailer is then used to transport the crocodiles to Discerning Smile, the processor.

2.7.3 Processor Discerning Smile is a new company based in Mareeba that has been formed to produce and process crocodile meat for the domestic market. This company had carried out market research over a period of 18 months before commencing the project.

The company expected to process crocodiles from a number of farms including Hartley Creek crocodile farm, situated north of Cairns, and the Malaleuca farm. It was also hoped to encourage other farmers to grow and provide crocodiles for processing through the new facility. In 2002 it was planned to operate 220 days per year, with a projected capacity to kill 10 000 crocodiles per year after future expansion.

The company’s new processing facility is located within a shed that houses a number of coldrooms and a processing room. The processing facility is Safe Food Queensland accredited. The processor operates under a HACCP (hazard analysis critical control point) program and accreditation to ISO 9002 (Australian standard) is pending. All personnel are equipped with protective clothing and are required to walk through a foot wash before entering the processing room. One-third of the processing room comprises a coldroom where the crocodiles are hung to await processing.

The crocodiles are rinsed in chlorine solution at the farm after killing to protect against any bacteria, and then rinsed again when they reach the processing facility. The crocodiles are left to bleed out overnight in a refrigerated trailer, in which they are transported from the farm to the processing plant at Mareeba.

The crocodiles are not eviscerated, and great care is taken to protect the meat from contamination. Surfaces are hosed down between each processing operation. Plastic bags are placed over the heads of the dead crocodiles before processing. The crocodiles are then skinned and the fat removed before the meat is removed from the carcass. The meat is then immersed in a sanitising solution.

Each 1.5 m crocodile provides around 6 kg of meat. The tail fillets amount to approximately 40% of the meat, the body 30%, the leg 20%, and the remaining 10% is classified as trim. Twenty crocodiles were processed in one day at this facility.

The skins are salted and washed several times, heads and feet are put into separate containers, and the carcass is returned to the farm for disposal. Each skin must be tagged to comply with the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and this tag remains with the skin throughout the chain.

The tail fillets are vacuum packed (cryovac) in 1 kg black plastic trays and the boneless leg meat is packed in 4 kg trays for the wholesale market. Safe Food specifies that labels on food products include a description (e.g. ‘croc meat’), pack date, weight of product and nutrient chart. After packing, the meat is frozen and stored in a separate freezer room within the shed. All other cuts are boned and further processed into sausages, hamburgers and satays. Some meat is supplied to the wholesaler to be processed into crocodile jerky (dried meat). The meat has a shelf life of up to 18 months when frozen. Frozen meat is required to be kept at –20°C for 5 days before transporting. The accreditation agency, Safe Food Queensland, conducts spot audits to ensure compliance with the regulations.

The company Discerning Smile has been supplying the Sydney wholesale market for the past 6 months using both air and road transport.

2.7.4 Logistics Australian Air Express Pty Ltd (AAE) is a joint venture between Qantas and Australia Post, which undertakes to deliver perishables – airport to airport – within 24 hours; delivery times to Brisbane, Melbourne and Sydney are shorter. Delays may sometimes be encountered when collecting the meat at Sydney airport due to the quantity of freight going through that airport. Door–to-door service is not an option and clients must arrange delivery and collection from the airport.

Freight space must be booked the day before dispatch, although booking does not guarantee space. The goods must be delivered to the depot 2 hours before the scheduled departure of the flight. Strategic delivery can ensure shorter transit times; for example, goods delivered to the Cairns depot before midday can be in Sydney that same afternoon.

Perishable products can be stored in one of the two coldrooms designed to store aircraft containers. Bonded goods have priority, so availability is not guaranteed. The perishable goods must be in the shed on trailers ready for loading onto the aircraft one hour before dispatch.

Crocodile meat is classified as seafood; it must comply with the regulations laid out in the Perishable Cargo Handling Manual published by the International Air Transport Association (IATA), which is the industry reference guide for the packaging and handling of perishable goods by air.

Frozen crocodile meat should be packaged in regulation polystyrene containers showing the embossed seafood emblem and containing a thick plastic lining. The use of dry ice in the container is not ideal because it has explosive qualities if mixed with water. It is therefore classified as a dangerous good under IATA regulation 5.1.6.

Labels are required for seafood and other perishable goods, and the requirements are laid out in the IATA Perishable Cargo Handling Manual. Labelling is the responsibility of the shipper – in this case the crocodile processor. The manual is under constant review and AAE advises customers to check for any new requirements.

The labels required are illustrated in figure 2.3; all of them can be obtained from the transport company. The first is for perishable goods, the second indicates ‘which way up’ and the third is a bar- coded destination label. This bar code is scanned at each point of transit and ensures traceability. All

cargo carries bar codes, but these are not always re-entered at each transit point. Satellite tracking is also being introduced, for a similar purpose.

Figure 2.3: Labels for perishable goods

Australian Air Express also has its own manual, Regulations for the packaging of seafood for air transport in Australia. This is based on the IATA manual, and is for use by AAE personnel.

The minimum freight rate is one polystyrene container with a weight limit of 20 kg. Rates are negotiable, and depend on the volume of product being shipped. Published rates quoted in 2002 were: • basic charge of $23.17 • Cairns–Sydney $1.53/kg • Cairns–Brisbane $1.20/kg • Cairns–Melbourne $2.74/kg

2.7.5 Wholesaler The Sydney wholesaler sells up to 30 tonnes/year or 2–3 tonnes/month of frozen crocodile meat to restaurants/hotels and the wholesale trade in Sydney. Very little crocodile meat is sold to the retail trade. The company also manufactures crocodile jerky (dried meat).

This company reported that it sourced crocodile meat from Western Australia, Queensland and the Northern Territory. Only 60% of product could be sourced from Australia and the shortfall was made up with imported product from Papua New Guinea (PNG). The PNG crocodile meat was reportedly cheaper then the Australian-produced meat.

The wholesaler prefers to buy Australian crocodile meat, both to support the industry and because of its perceived better quality, but continuity of supply is a problem. The wholesaler reported that some customers were interested in knowing the origin of the crocodile meat.

The company reported being unable to service export inquiries due to a shortage of supply. It expected the Australian crocodile farming industry to increase production by 50–100% per year for the next 4–5 years. The wholesaler reported that a market opportunity exists for chilled crocodile meat, as restaurants would prefer fresh cuts; however, the current regulations allow only frozen crocodile meat to be sold.

The company operates quality assurance under a HACCP program with the regulating body Safe Food New South Wales. As from 2002 registration is required for seafood with this body. It is also export approved with the Australian Quarantine Inspection Service (AQIS).

The crocodile meat was delivered to the wholesaler by refrigerated road transport. In the past, crocodile meat from the Northern Territory was delivered by air but this ceased after the collapse of the Ansett airline. Air transport costs were high: for example $700 to ship 200 kg of crocodile meat.

There are between one and four deliveries of crocodile meat per month to the facility. The crocodile meat is stored in the freezer with other meats, and held at a temperature of –20° to –21°C. The shelf

life of the frozen crocodile meat is labelled as 12 months but it is believed that the meat could potentially have a 2-year shelf life.

The meat is frozen in 1 kg cryovac bags and packaged into 14–15 kg cartons. The packaging of the domestic crocodile was considered to be far superior to that of the PNG crocodile. The Australian product is cryovac packed whereas the PNG product is supplied in a plastic-wrapped tray, which is susceptible to splitting, freezer burn and contamination.

Some Australian producers, however, do not accurately measure the weight of the crocodile meat before packaging, and they tend to supply the meat overweight in 1 kg packages. This not only reduces the full return per kilogram of the meat for the producer, but also results in variation in the size of the cuts for the restaurants and portion sizes that are served in dishes. The PNG product was typically supplied in 1 kg or 500 g packs. Precise measurement of each pack slows down the production process but is a desirable aim.

The meat is delivered to restaurant and hotel customers in a refrigerated van.

2.7.6 Restaurant The Sydney Tower International Revolving Restaurant (Level 1) is at the gourmet end of the restaurant market. It is located 300 m above Sydney, at the top of the Centrepoint tower. It uses approximately 250 kg of crocodile meat every 3 weeks.

The menu features ‘NT Crocodile Brochettes’, which consist of finely cut marinated crocodile meat and red capsicum oil, served with ricotta terrine; it is listed at $19.50 as an appetiser. Crocodile meat also features in the ‘Australian Game Speciality’ dish which is a selection of diced kangaroo, emu and crocodile meat served in pastry shells with a bush pepper and tomato port wine sauce; this is priced at $39.50. Crocodile tail fillets are used in these dishes and the meat is served in vol-au-vents. The meat is considered to be versatile and easy to cook.

The crocodile meat is purchased from a distributor who, it was believed, sourced the meat from the Northern Territory. The distributor supplies the meat frozen in a 1 kg cryovac tray, which the restaurant then stores in a freezer. Labelling on the packaging enables the distributor to trace the meat back to the supplier if there are any issues with the quality.

The restaurant reported no problems with either shelf life or continuity of supply. The meat is normally stored for only about 5–6 weeks, and supply is available all year round.

European and Asian customers were identified as the main consumers of crocodile meat. The restaurant reported constant demand from tourists, most of whom are not interested in knowing the origins of the meat.

2.8 Case study: Crocodiles – Western Australia

Broome Crocodile Farm & Abattoir Local hotels and restaurants

Transporters

Sydney Melbourne Exporters wholesalers wholesalers

Restaurants and Retail: fish shops hotels and Asian food shops

Figure 2.4: This distribution chain services both the Sydney and the Melbourne markets; some of the product entering the Melbourne market is exported.

2.8.1 Overview This case study was selected as an example of a well-established distribution chain supplying meat for both domestic and export markets, operating from a remote location on the west coast of Australia. The case study identifies some of the challenges involved in transporting meat over long distances. Although all efforts were made to follow the one supply chain from the producer to the restaurant it was not possible and a retailer was interviewed that was using meat from Papua New Guinea not from the Broome crocodile farm.

2.8.2 Producer and abattoir Broome Crocodile Farm is situated on two sites in Broome, Western Australia, and employs six people. Malcolm Douglas, the owner, is well known for his work in filming Australian travel and conservation documentaries, and maintains the farm to assist with his research into crocodiles. The enterprise comprises a tourist facility, crocodile farm and abattoir. The crocodiles are grown primarily for their skins. The meat is a by-product of this trade.

The first and original site of the farm and research facility is located on 5 acres, and houses approximately 1 120 crocodiles. The farm, situated adjacent to the Cable Beach tourist precinct in Broome, is a major tourist attraction for the area, helping to educate the public about crocodiles and making an important cash-flow contribution to the business.

A second site of 50 acres, situated about 10 km from Broome, stocks around 2 200 crocodiles growing out, as well as 15 breeding pairs. It also includes a tourist facility incorporating a museum/educational unit and wetlands.

The abattoir is housed on the second site and has received an A-grade rating from AQIS as an export- accredited abattoir. The premises are inspected and accredited by AQIS on an annual basis, which enables the company to self-regulate. The inspection process is carried out by an AQIS inspector

based in Cairns, who inspects all the establishments in the northern part of Australia from Cairns to Broome.

The crocodiles are harvested in March and October. The annual kill varies between 300 and 1 000 crocodiles, depending on the number available that can provide first-grade skins. In 2001 the farm produced around 3 tonnes of meat for a return of $120 per crocodile. The variable costs of production are approximately $200 per crocodile, which means that it would not be profitable for the Broome Crocodile Farm to produce meat alone; hence the main market is in skins.

For profitability the objective is to produce a first-grade skin. The crocodiles are killed at between 2.5 and 3 years of age. As they get bigger there is a greater likelihood of fighting between individuals, and consequent damage to the skins. In addition, from about 2 years of age the crocodile has a long canine tooth that protrudes; as they crawl over each other or fight these teeth scratch the belly skins, thereby reducing their value. For this reason the Broome crocodiles are kept in individual pens from 2 years of age. The skins are 2 metres in length at the time of killing.

The carcass is cut in two, dividing the body and tail. The body, including the leg meat, is sold on the bone into the Melbourne market. Some of this meat is exported to Taiwan. Filleted tail meat is sold into the Sydney market.

The body meat is cryovac packed and the tail meat is filleted and packed on styrofoam trays. The meat is then packed in cartons with between 13 kg and 20 kg of meat per carton. The farm can store between 1 tonne and 1.5 tonnes of meat, which is frozen and must be kept at a temperature lower than –18°C.

The labelling requirements for crocodile meat are very specific and labels must show company name, licence number, address, date packed and net weight of meat.

As Broome crocodile meat is sold both domestically and exported there is significant documentation associated with selling it, particularly relating to export. When the abattoir is registered with AQIS the processor is given an establishment number, which should be shown on all documentation. Any other export facility that handles the product must also have a number. These numbers must be quoted on all documentation. There are five sets of documentation required to export crocodile meat from its state of origin.

All crocodile products are traced under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); distribution of the meat outside the state and overseas requires an export certificate from CITES. Processing of applications can take up to 2 weeks, so the authority allows approximations to be made as to the amount to be exported. The regulations allow more meat to be sent than quoted, but not less. If the approximation is above what is available to be dispatched an amendment can be applied for, and this takes another 2 weeks to obtain.

To export crocodile meat to another state an application should be made to the state CITES authority, Department of Conservation and Land Management Western Australia (CALM), for a state export licence.

An Australian Quarantine Inspection Service (AQIS) Transfer certificate is required (E 51 A). The original goes with the meat and is retained by the receiving establishment; the processor retains a copy. The transport company must also provide a consignment note, which documents collection and delivery points.

To export product AQIS requires an Export Clearance Declaration (EX 222F). The crocodile producer returns the completed declaration to AQIS, together with the original CITES certificate for approval. AQIS then returns the approved documents together with another form called a ‘Certificate as to condition (EX46)’ to the exporting establishment.

Exporting meat products, therefore, requires far more documentation than exporting skins, where only a CITES certificate with a list of tag numbers is necessary.

Distribution is by refrigerated truck in quantities of one tonne or above, which is the quantity required to make it economic for the transporters to utilise their freezer. Two or three companies service these routes, mainly to transport seafood from Broome to the southern markets. (Crocodile meat is classified as seafood for processing and transport purposes.) Transport is routed through Perth for the southern markets and through Port Hedland to Darwin and Cairns.

Broome crocodile meat is sold through wholesalers to the hospitality (restaurant/hotel) trade in Sydney and Melbourne and exported to Taiwan. The Melbourne market also services the local Vietnamese/Asian community. The Chinese believe that crocodile has special health-giving properties and use the bone-in meat to make soup and stews. There are also some direct sales to local hotels and restaurants in Broome.

2.8.3 Logistics The availability of refrigerated transport from Broome is dependent on the fishing industry. During the wet season, when there is little or no fishing, refrigerated transport is often unavailable. The transport companies will not transport meat in quantities of less than 1 tonne, which is the minimum to make it economic. As a result, crocodile meat is transported from Broome only two or three times a year.

One transport company carries crocodile meat but will not carry fish. This is because of the effect that the salt water has on the fabric of the trucks, and the fish smell created, which permeates the vehicles and can contaminate the general freight coming back on the return trip from Perth.

It is possible to book in crocodile meat to be consolidated with larger consignments of fish. However, it could take up to 2 weeks before a consignment reaches the required load, and consolidation on this route is therefore rare.

The Broome crocodile meat is delivered to the road transport company in a mobile refrigerated trailer, in cardboard boxes with thick plastic liners. The meat is then hand-loaded onto pallets, to be transferred directly into the refrigerated bulkhead of the 45-foot truck. The temperature is maintained at between –20° and –25°C during the journey to Perth. The remainder of the load can be carried at a higher temperature, and may be general freight.

The transport company also has a HACCP program of quality assurance. As part of this program, drivers are required to fill out a temperature log; onboard temperature loggers also monitor some shipments. Road transport takes 2 days to Perth and affiliated transport companies move the product to Sydney and Melbourne as required.

Rates vary, depending on volume. Small quantities may cost as much as 25–30 cents/kg, reducing to 16 cents/kg for larger volumes of product. One company quoted a minimum charge of $600 for use of the refrigeration unit.

2.8.4 Wholesaler Pearl Coast Marine Products Pty Ltd is an Australian wholesaler, exporter and importer of premium- quality seafood. It is an established family business, which has been involved in the seafood industry for over 20 years and has extensive knowledge of all facets of the seafood industry. This company services the retail trade (fish shops and Asian supermarkets) in Melbourne.

The company is also an AQIS export-approved wholesaler and exporter with markets in Singapore, United Kingdom, Norway and the USA, and is exporting a range of Australian seafood products. However, market access to Singapore for crocodile meat has proved difficult, with stringent regulatory controls.

The company buys the crocodile from Western Australia as whole frozen carcasses. The meat is sold in assorted cuts such as trunks/bodies, tail fillet, tenderloin and bone-in tail. All of these cuts are supplied frozen and are packed into vacuum bags on trays of 1 kg to 2.5 kg. The bones and carcass, and bone-in tail, are in bulk packs of approximately 5 kg. The crocodile meat is sold ‘bone-in’ to the Asian/Chinese wholesale markets in Melbourne. Frozen products are sent to other customers by sea or air.

Melbourne restaurants are not attracted to this product and only want the fillets, which are expensive compared to other meats. The higher cost tends to discourage the use of crocodile meat by the restaurant trade.

Supplies of crocodile meat are available only in March and October and demand is not consistent, so the frozen meat needs to be stored for some time. The frozen meat was reported to have a shelf life of at least six months when kept at the recommended temperature of below –18°C. The company has a storage capacity of between 20 and 30 tonnes. Storage was not considered a constraint, as plenty of space is available in commercial storage facilities if needed.

Even though the product had to travel a great distance to the market, transport was not considered a problem. Rates are very competitive and it was estimated that road transport would cost around $1/kg for the journey from the top end of Western Australia to Melbourne if transported by the pallet load.

The amount of documentation required to move the meat from Western Australia to the southern states or for export was cited as an impediment – especially when only small quantities of meat were being exported – because of the time taken to acquire the relevant documents.

2.8.5 Retailer In the heart of Melbourne’s Vietnamese district, Vietnamese shopkeeper ‘Hai Xuong’ sells crocodile meat – mostly to Chinese people rather than Vietnamese. The shopkeeper advised that this meat is also becoming increasingly popular with Europeans, and he believed the meat was bought for domestic use only.

The crocodile meat was buried at the bottom of a fridge underneath some prawns. The shopkeeper advised that he sold 10–15 kg of crocodile meat per week, in 500 g frozen packs. Although it was originally said the meat was from the Northern Territory, it was later indicated that it was from Papua New Guinea.

The shop charges $23/kg for tail meat (preferred by customers) and $19/kg for body meat. The retailer believed that the reason for the slow movement of the product was that people were not aware of the meat and did not know what to do with it. The Vietnamese shopkeeper had not personally tasted the crocodile meat.

2.9 Major issues

The following issues were identified:

• There is no national crocodile association for the crocodile industry. There was an attempt to form an industry association, but the small size and competitiveness of existing operators led to its failure. Each state has a crocodile group, which is a loose association of producers.

• Statistics are well reported from the Northern Territory and Western Australia, but not reported in Queensland. This made it difficult to arrive at a measure of the market, which in the final analysis was estimated on the number of crocodile skins tagged under CITES regulations. The lack of accurate information in this area could have a negative impact on the future of the industry,

because good statistical information is necessary for industry development, market planning, infrastructure planning and funding applications.

• Domestic demand for crocodile meat reportedly exceeds supply, and exports are increasing (appendix 1). However, the number of crocodile farmers and production levels have not increased significantly, due to the high set-up costs and unpredictable returns. Most crocodile farms are located in remote areas and the costs of production are therefore high. However, some existing farmers are seeking to expand, and this could be achieved by encouraging more people into the industry at the growing stage.

• Fresh or chilled crocodile meat cannot be sold because of the risk of infestation by the tapeworm Spirometra erinacei. However, some processors believed that this regulation should be changed, on the basis that the last reported case was in 1987 and there was no evidence of this parasite in their meat.

• It was reported that some producers do not accurately measure the weight of the Australian crocodile meat before packaging, and they tend to supply overweight 1 kg packages of crocodile meat. This not only reduces the full return per kilogram of the meat for the producer, but also results in variation in the size of the cuts for the restaurants and portion sizes that are served in dishes. The PNG product was typically supplied in 1 kg or 500 g packs. Precise measurement of each pack slows down the production process but is a desirable aim.

• It was considered that help was needed to streamline documentation. The regulatory issues (red tape) involved in moving the crocodile meat between states were seen to constitute a major issue. It was also suggested that the amount of documentation needed was an impediment to export. It was believed that orders were lost because of the time it takes to obtain the relevant documentation. CITES export certificates took between 2 and 4 weeks to obtain, and the work involved ensured that it was not worthwhile for small quantities of meat.

• Logistics was not seen to be a major problem area for the industry. However, seasonality in terms of processing, and availability of transport during particular times of the year, can influence the ability of the industry to provide continuity of supply to southern states. Availability of transport is affected by demand from other industries such as fruit and seafood.

• To promote the growth of the crocodile meat industry it was believed that consumers should be educated about the meat to overcome misinformation. It was also considered that the properties of the meat and its health advantages needed to be promoted in the marketplace. The majority of restaurants thought there was potential to expand the market for crocodile meat.

• Research is being carried out to produce a low-cost pelleted feed for crocodiles; to reduce the high feed costs and logistical problems associated with supplying crocodiles with fresh meat. Sixteen different varieties of pellets have been tried, but crocodiles have been found to be very fastidious eaters and trials are continuing.

2.10 SWOT analysis: crocodiles

Strengths Weaknesses Opportunities Threats Committed producers Small number of Formation of an industry Disease, under intensive producers association farming conditions Good production/processing No industry Cooperation within the Competition from knowledge by producers association supply chain to achieve imported product (e.g. higher returns PNG crocodile meat) Domestic demand Lack of cooperation greater than supply between industry Continued research Increasing costs of members through government transport Healthy, low-fat meat assistance programs Lack of industry Documentation for export High-profile animal statistics for Increased production to of crocodile meat more Australian crocodile meet market demand complex and time- Identified target markets meat consuming than for skins Change in protocols to Creation of jobs through Few companies to allow sale of fresh Seasonal demand in other farming and tourism generate money for (chilled) meat industries affecting research and availability of transport Industry research development Streamlined licence educating people to applications by electronic Lack of continuity of support the wild High establishment means supply population for costs and need for sustainability long-term investment Attraction of media Negative publicity, which interest and promotion of could affect global demand Needs of customer attributes of the meat to for crocodile products not always met increase consumption

Fresh (chilled) meat Attraction of new not available due to crocodile producers and health regulations investment money

Producers short of Development of export time and resources markets for crocodile meat Low-volume sales to niche markets Cooperation with other Australian animal meat Reliance on tourism industries for profitability

Producers need timely information on world markets

2.11 Future directions The research identified a number of issues along the distribution chain that impact on the growth and profitability of the crocodile industry.

At the production end of the distribution chain, there are some key issues that need to be addressed by industry and government. These include supply capability, limited collaboration by producers, and the need to reduce feed costs. These issues are impacting on profitability and efficiency at the farm gate level of the chain.

In 2001 domestic demand for crocodile meat reportedly exceeded supply. However, it was felt that market forces would stimulate increased domestic supply of crocodile meat to meet demand, and new processors would emerge to fill the gap. Sharing of information within the industry could assist this process.

Expansion of the industry, by either new or existing operators, would be encouraged by increased collaboration among producers. Strategies to encourage better communication could include the implementation of a pilot supply chain management project that would show producers the benefit of collaborating to meet the supply and quality requirements of a particular buyer.

Crocodile meat could also be given a higher profile at the wholesale and retail level by more interaction with producers. A pilot supply-chain project in the industry could have positive results in this area as well.

Another factor impacting on profitability within the chain is the cost of feed. The current research on pelleted feed is seen to be of great importance by some members of the crocodile industry, especially those who are in isolated situations where transporting fresh food for long distances in extreme heat may be problematic. However, this processed feed may not yet be sufficiently palatable to the crocodiles, and more research may still be necessary.

Domestically, restaurants would prefer to receive fresh meat, but the legislative requirement is that only frozen crocodile meat can be sold. It is recommended that research be conducted to verify the real risks associated with the incidence of tapeworm (Spirometra erinacei), with the objective of changing the protocol and allowing fresh meat to be sold. This parasite was identified in 1987, since which time production systems have changed, and the risk may be considerably reduced.

At the consumer or market end of the chain, the research showed a demand for crocodile meat in gourmet restaurants, in the tourist market and in the Chinese community. Statistics also showed a growing export demand.

Crocodile meat is believed by the Chinese to be a health-giving meat, and other parts of the crocodile are sought-after in the Chinese medicine market. It may be profitable to carry out scientific research to establish the scientific basis of these beliefs. This might identify health qualities that could be used to promote the meat and expand the market.

As a result of disease outbreaks such as foot-and-mouth disease and BSE in beef, opportunities exist to increase markets for alternative meats. The growth in Australia’s crocodile meat exports, despite a cited lack of supply, indicates that opportunities exist to continue to build overseas markets. Export trends for other game meats could be analysed to identify new markets and opportunities for cross- promotion and consolidation of exports with other game meats. Crocodile meat could be promoted alongside other meats such as kangaroo, wild boar, ostrich and emu. Economies of scale could then be achieved by sharing promotional costs across these small industries.

At an industry and government level the research revealed several issues that are impacting on the crocodile industry, including inadequate statistical data on the industry. As a result, government and

funding organisations are unable to make informed decisions on allocating research dollars to the industry, and opportunities for cost-saving collaboration with other game meat industries are reduced. It is suggested, therefore, that an industry development officer could assist in information exchange and collaboration. This approach may go some way towards overcoming the barriers encountered within the crocodile industry if success in other areas can be demonstrated. The development officer might also be able to collect industry statistics, which would benefit the whole industry by facilitating government decision-making on research funding. Industry cooperation, however, would be essential.

3 Emus

3.1 Industry overview Emus are native to Australia and protected by the Nature Conservation Act 1992 (Cwlth) from being captured or killed from the wild. Western Australia was the first state to legalise emu farming, and the first commercial emu farm was established there in 1970. The industry did not progress until the other states introduced legislation to allow emu farming in the early 1990s (Kent 1994).

Over the next 6 years the industry grew rapidly, fuelled by the promise of an investment opportunity and optimistic predictions of high prices for meat, oil, skins, feathers and eggs. Unfortunately, the markets that developed were smaller and offered lower prices than was originally predicted.

The Australian emu industry has reduced from 1 330 licensed or registered farms producing an estimated 103 700 birds in 1996 to 149 farms producing approximately 45 600 birds in 2001. The number of farms is only 11% of the 1996 figure and the number of birds is less than half (see tables 3.1 and 3.2).

When the market crashed in 1996–97 many growers were forced to dispose of birds due to the high cost of feed and low returns. The figures for the number of licensed or registered farms may even overstate the current size of the industry, as many of the 149 farms are not currently processing. In 2001 it was estimated that less than 10 farms were producing emu meat for either the domestic or the export market.

Table 3.1: Number of licensed/registered emu farms in Australia 1996 1997 1998 1999 2000 2001 New South Wales 149 100 30 30 30 17 Queensland 38 *36 *26 13 6 3 South Australia 218 149 63 60 42 29 Tasmania 58 92 92 92 92 38 Victoria 782 610 200 200 106 35 Western Australia 85 71 52 35 32 27 Total 1 330 1 058 463 430 308 149 Sources: Senate: Rural and Regional Affairs References Committee, Emu Association of Queensland 1996; Emu Federation of Australia (*estimated); R&D Plan for the Australian Emu Industry 2000–2005; National Parks & Wildlife, NSW; Qld Government Environmental Protection Agency; Dept of Environment & Heritage SA; Dept of Primary Industries, Water & Environment Tas.; Department of Natural Resources & Environment, Vic.; Dept of Conservation and Land Management, WA.

Table 3.2: Estimated number of emus in Australia 1996 2001 New South Wales 12 000 25 000 Queensland 12 000 3 000 South Australia 6 200 3 000 Tasmania 2 500 1 100 Victoria 40 000 10 000 Western Australia 31 000 3 500 Total 103 700 45 600 Source: Parliament of Australia: Senate: Rural and Regional Affairs References Committee; Emu Federation of Australia.

Table 3.2 indicates that in 2001 New South Wales was the largest producer of emus in Australia. However, most of these birds were located on a single farm (Flightless Bird Company at Cobar), which went into liquidation in 2001. These birds are being progressively killed and the meat exported. Victorian emu producers are focusing on the possibility of an emerging worldwide market for oil, and supply the Melbourne market with meat. South Australia and Queensland supply meat mainly to the markets in Sydney, Adelaide and Brisbane.

In 2000 there were seven emu processors throughout Australia but by the end of 2001 there were only three abattoirs identified that were still processing emus. The reason given for the reduction in processing capacity was shortage of birds (appendix 9).

The three abattoirs that were still processing emus in late 2001 were located at Pyramid Hill in Victoria, Crows Nest in Queensland and Keith in South Australia. There were no processing facilities for emus in Tasmania or New South Wales. It was planned to open a new abattoir in Western Australia some time in 2002. The abattoir in Victoria was processing emus for the export market, whereas the abattoirs in South Australia and Queensland supplied the domestic market`.

Table 3.3: Emus slaughtered 1999–2002 Year No. of emus slaughtered July 1999 to June 2000 2 012 July 2000 to June 2001 2 146 July 2001 to June 2002 7 351 Source: AFFA Meat Levy Division 2002

During the financial year July 2001 to June 2002, 95% of emus slaughtered were from Victoria, destined for the export market. Only 5% of birds killed came from South Australia and Queensland.

3.2 Products Emus produce a number of products, including meat, oil, leather, eggs and feathers. Meat and oil are the most commercially important, contributing 80% of the total return (Stubbs 1998). Each bird provides 10– 13 kg of meat and can provide up to 13 kg of fat. The fat is found separate from the meat in a layer just under the skin. Oil is produced from the fat by a rendering process.

In 1999–2000, 2 012 emus were slaughtered, which equates1 to approximately 20 120 kg of meat (AFFA 2002). In 1999–2000, 2 138 kg of meat was exported (Environment Australia 2001), indicating that 90% of the meat is used or sold domestically and 10% of production is exported.

In the emu industry the oil is considered to be the product with the most potential for commercial gain. The industry is awaiting the results of scientific research being carried out at an Adelaide hospital to prove the anti-inflammatory properties of the product, which could facilitate a therapeutic goods licence to be obtained. This means that a higher price could be obtained for the oil. A diagnostic test was also being developed to measure the bioactivity of the oil.

The oil is used to manufacture a range of emu oil cosmetics and massage oils, and may have applications in a whole range of natural products. Current prices of oil quoted varied from $5.00 per litre (farm gate price) to $50.00 per litre for export oil, depending on the market.

The oil is often measured by weight, as liquid varies by up to 10% with expansion. Prices quoted by weight were between $25/kg and $30/kg, with each bird producing around 7 kg of oil.

3.3 Markets Most of the meat is sold domestically to gourmet restaurants, restaurants targeting tourist, and inner-city speciality butchers. There is little or no demand through supermarkets and mainstream restaurants and cafés. Supermarkets will not stock the meat unless requested by the customer. Supermarkets have found that exotic meats sell when in-store promotions are conducted but immediately drop after the promotion ends.

The restaurant market demands fresh or chilled meat rather than frozen. The industry finds it difficult to sell the cheaper cuts of meat, which has resulted in several companies producing value-added products such as

1 Based on an estimated 10 kg of meat per bird.

hams, sausages, prosciutto, bratwurst, mettwurst, salami, pâté, sausages, kabana, smoked emu meat, emu meat pies and quiche.

Restaurants were divided as to the potential to expand the market for emu meat. Some restaurants said the meat needed to be precisely cooked, with little scope for error; it was also felt that the meat could not be served on its own but needed to be supplemented with other meats. The meat was often presented in small portions together with other game meats as an Australian experience.

Areas with high tourist throughput, including backpacker facilities, offer opportunities, because this segment is young and adventurous and prepared to try a different and uniquely Australian food. Restaurants in tourist areas on the northern New South Wales coast reported that there was little or no demand for emu, as their main clientele are Australian families on holiday. Restaurants in Cairns, however, who target international tourists (Europeans, Americans and Japanese), reported selling between 1 kg and 10 kg of emu meat per week. One restaurateur in Cairns said they had replaced emu meat with ostrich because they could not get suitable cuts (e.g. fan fillet).

Emu meat is sold in cryovac bags and then placed into cardboard boxes. Chefs in Cairns said the packaging and labelling should emphasise the content, project a high-quality image, and advertise HACCP, which will give reassurance as to the quality of the meat. They felt that the packaging should be professional; this was reportedly not always the case with product they received from farmers.

Although domestic markets are the main outlets for emu meat, some is also being exported. Export demand has been erratic, however. In 1994, 48 479 kg of emu meat was exported to 12 countries: Belgium, Chile, China, Denmark, France, Germany, Hong Kong, Japan, Malaysia, Switzerland, the UK and the USA. At this time the most significant markets were France, the USA and to a lesser extent Japan (CITES). In 1995–96 Singapore was the largest market, taking 25 486 kg in 1995 and 41 606 kg in 1996; but this market quickly declined. By 2000 only 556 kg of emu meat was exported in total, with the meat sent to only three countries: the UK, Japan and New Caledonia (appendix 2).

Figure 3.1 shows that Australian exports of emu meat went into decline in 1996, which may be attributed to an outbreak of avian influenza in 1996 followed by Newcastle disease.

60000 50000 40000 30000 20000

Total exports (kg) 10000 0

4 5 6 7 8 9 0 9 9 9 9 9 9 0 9 9 9 9 9 9 0 1 1 1 1 1 1 2

Figure 3.1: Australian exports of emu meat, 1994–2000 Source: Environment Australia 2002

In 2001 the industry received many export trade inquiries for emu meat. This was thought to be related to the outbreak of foot-and-mouth disease, the emergence of BSE in Europe, and the worldwide promotion of Australiana during the Sydney Olympics in 2000. It remains to be seen whether these inquiries develop into sustainable trade.

3.4 Price The price of emu meat varies according to the cut. The most sought-after cuts are the fillets. The domestic wholesale prices for fillets range from $19/kg to $27.50/kg, whereas lesser cuts sell for between $4.50/kg and $10/kg (see table 3.4) The challenge is to market the remaining cuts, some of which are being utilised in smallgoods.

Export prices quoted for emu were between $6.50 and $6.90/kg hot carcass weight, bone in, which returns around $125 per bird to the farmers. This return barely cover the cost of production per bird, so all parts of the emu need to be utilised for the industry to be viable.

Table 3.4: Indicative wholesale prices of emu meat ($/kg, unless otherwise stated) Emu NSW Vic Qld SA Fillet 27.50 19.00–21.25 22.00–26.00 23.90 Steak 19.50 16.00–19.50 15.00 Trim 9.00 4.50 10.00 Drum 18.50 (fillet) 9.00 Diced 11.00 10.00 Mince 9.00 7.00–7.30 Prosciutto 34.00–43.20 29.00 Sausages 9.00–12.00 10.00–12.50 8.50 Chipolatas 12.00 13.50 8.60 Bratwurst 8.00 Met wurst 12.50/300 g Kabana 9.00 Liver 8.00 8.50 Burgers 1.00 1.50 Smoked 24.00 24.00–26.00 17.50–18.50 Salami 13.75 Pate 6.50/500 g Eggs (seasonal) 10.00 Source: Interviews 2001

3.5 Logistics Emus do not travel well and are susceptible to extremes of temperature. Producers have therefore developed many different ways of transporting them. These methods include individual cages on the back of a truck, small numbers of birds in segregated compartments on a truck, and in one case a truck that is air- conditioned, equipped with water sprays and able to carry 125 birds in one journey. Some cage designs have low roofs to ensure that birds must sit down during travel to minimise movement and damage.

The emu industry has developed a code of practice for the transport of live emus, specifying numbers of birds to be transported based on size of the birds and area available in the vehicle. It is recommended that the density does not exceed 8 birds/m² for birds less than 7 kg live weight; 3 birds/m² for birds weighing 25–30 kg; and 2 birds/m² for mature birds of 35–45 kg live weight (Code of Practice – Emu Farming 1994).

Transport of meat is regulated under the meat authority rules and regulations in each state. The meat must be transported in a refrigerated vehicle that is accredited by the meat regulatory authority, which falls under different departmental responsibilities in each state (see appendix 4) for information by state). As emu meat is classified as domestic meat it can be carried alongside other domestic meats, and the same standards apply. The temperature of the meat must be recorded when it leaves the processor and when it arrives at its next point of delivery.

As yet no uniform method of identifying birds has been adopted. Some producers tag them, and food- regulation labelling requirements dictate that the producer and processor of the meat be identified on a label. This means that the emu meat can be traced back to the producer but, unless the producer keeps detailed records, it is not possible to identify individual birds.

There are many variables in the distribution chain, and table 3.5 demonstrates the variety of storage charges applicable. These charges vary with location of the storage, volume of meat stored and frequency of use. The

price is subject to the amount of local competition (i.e. the more competition, the lower the price). For example, prices are lower close to major cities with large storage capacity than in country areas with little competition.

Table 3.5: Example Meat storage rates 2001 (Melbourne) Service Price (including GST) Receiving frozen cartons $0.66 per carton Receiving chilled cartons for blast freezing $1.76 per carton Storage per week or part of week including week received and dispatched (Mon– $0.198 per carton Sun) Loading out cartons $0.385 per carton Administration for loading 20 ft containers $165 Administration for loading 40 ft containers $330 Overtime charged for shipping outside the ordinary working hours of 8.00 a.m. – $49.50 per man hour 4.00 p.m. Mon–Fri; also for public holidays Minimum weekly charge per week $55 Container transport – 20 ft container $220 Container transport – 40 ft container $396 Note: For meat received at temperatures higher than –10°C a freezing charge applies. Insurance is the client’s own responsibility.

3.6 Value chain analysis Table 3.6 shows the costs that are added at each link in the chain to increase the value of the product and arrive at the final selling price to the consumer. Wholesalers indicated a mark-up of 20–30% on the buying price, and the retailer (butcher) would expect to mark up the buying price by 50%. In addition, there is sometimes a further distributor in the chain between the wholesaler and the butcher. The prices quoted in the table are examples only, and may vary according to the cut of meat, area of sale and number of links in the chain.

Table 3.6: Value chain for emu meat Stage in value chain Cost ($/kg) Production 10 Processing 4 Transport 1–1.50 Storage 1 Cost of sales 1–5 Farm gate 17 Wholesale 24 Retail 35 Source: Interviews 2001

3.7 Legislation Legislation controls and regulates the establishment and operation of emu farming and processing, covering environmental, animal health, and food safety issues.

The Meat Industry Act 1993 (Cwlth) and subsequent regulations govern all states, and cover areas as diverse as construction and maintenance of premises and vehicles, processing, packaging, transport, food safety issues and record keeping. In addition the Food Act 1981 (Cwlth) covers food hygiene issues for food offered for sale, labelling and packaging, and advertising. Each state has it own version of this legislation. The Meat Industry Act also outlines the Australian standards to be followed by the meat-processing industry; emus are classified under poultry meat.

Emu meat is classified as domestic meat, as distinct from game meat, which is defined by the Meat Industry Act as originating ‘from an animal living in a wild state’. Under the Nature Conservation Act 1992 (Cwlth) it is illegal to kill or capture wild emu without a licence.

The Meat Industry Act imposes conditions for accreditation for meat processing, and requires that meat be processed to comply with Australian standards. The standards provide for the implementation of quality- assurance programs consistent with the ISO 9000 series. Emu, for example, would be processed under the Australian Standard for the Hygienic Production of Poultry Meat for Human Consumption, and other standards for the Construction of Premises, Transportation of Meat for Human Consumption and the Cleaning and Sanitising of Plant in the Poultry Meat Industry.

The Meat Industry Act also determines that safe food is a constitutional responsibility of the states. Under this Act some states have created safe food organisations to promote and audit safe food programs. These programs are based on Hazard Analysis Critical Control Point (HACCP) methodology. This is a quality assurance system consistent with the ISO 9000 series (see appendix 4).

Codes of practice for the welfare of animals in captivity are prepared by the National Subcommittee on Animal Welfare before formal adoption of a code by the Agriculture and Resource Management Council of Australia and New Zealand (ARMCANZ) (see appendix 4).

There are also ‘codes of practice’ to cover both animal welfare and environmental issues. Preparing a code is a voluntary action taken by industries that want to take a step towards greater environmental responsibility. Similarly, complying with a code is voluntary; it is not an offence to not comply with a code, but compliance with a code can be used as a defence in law. These documents are often based on ‘model’ codes developed by the Commonwealth and adapted by each state government, in consultation with animal welfare groups, to suit particular circumstances. However, the legal status of these codes varies between states. They may also vary within states according to legislative arrangements.

3.7.1 Licensing The meat industry statutory bodies are going through a metamorphosis around the states, and the responsibility for licensing may have changed. Various licences are required to cover both farming and processing issues. Fees and charges are also being rationalised, and the basis on which these are calculated is likely to change by the end of 2002. (See appendix 4 for a list of licences and licensing bodies.)

3.7.2 Levies A meat levy of 75 cents per bird for the National Residue Survey is payable to the Meat Levies division of the Department of Agriculture, Fisheries, Forestry Australia (AFFA).

3.8 Case study: Emus – Queensland

Producer/meat marketer Abattoir/processor Farmers’ markets

Storage Restaurants/hotels

Providores/cruise Wholesalers ships

Butchers’/shops Internet

Figure 3.2: The flow of product from producer and processor (who work closely together) to the wholesale and retail marketplace

3.8.1 Overview This case study looks at the supply chain for emu meat on the east coast of Australia and demonstrates the close links between the producer and processor who supply all markets for emu meat, both domestically and for export. It demonstrates the commitment of this supplier, one of the few left in the marketplace after the previous rapid decline of the emu industry. It also highlights the benefits of value-adding and development of a product that is difficult to market.

3.8.2 Producer Tjuringa Emu Products is the trading company heading the emu industry in Queensland. Peter Thompson, the owner of the company (also president of the Emu Association of Queensland), runs emus on two properties at Maleny and Chinchilla on a total of 40 hectares. He fulfils the dual role of producer and marketer, with only occasional assistance from a neighbour.

The enterprise comprises approximately 200 breeding birds and 200 yearlings, and raises about 600 chickens (baby emus) a year. At the age of at 3–6 months the birds are transferred to Chinchilla to be grown out. Eggs are brought back to Maleny to be incubated in a purpose-built unit where the chickens are raised.

Figure 3.3: Tjuringa free-range emus

When they hatch, the chickens are housed in a purpose-built heated brooder shed and kept on washable mats until 7 days old, when shavings are introduced as bedding. The chickens have access to the outside pens from 10 days old, and when they are 1 month old in most cases the supplementary heating is turned off.

The emu is a very hardy bird, and an adult can survive without food or water for many weeks in the wild. In a farming situation and for production purposes, the birds are fed on a combination of pasture, grain and vitamins, resulting in a chemical-free farmed product.

The emus are ready for processing from around 12 months old. They are transported by truck to a Q Safe licensed abattoir at Crows Nest in Queensland, where they are killed and processed. The producer assists the butcher to process the birds and is present at the kills.

The birds are shorn to remove their feathers; then the fat, which lies just under the skin, is separated from the meat to be used for rendering and oil extraction. One bird can provide up to 13 kg of fat.

Tjuringa emu meat is vacuum packed (cryovac), and then packed in 10 kg boxes. The cut breakdown and apportionment per bird is as follows, and provides between 12 kg and 14 kg of meat per bird:

• drum cuts: drum (leg) approximately 3.2 kg, inside drum, outside drum, inner outside drum, mid drum, drum strap, inner mid drum;

• thigh cuts: thigh approximately 5.0 kg, full rump, inside thigh fillet, round, flat fillet, oyster fillet, flat rump, fan fillet, outside fillet.

The company also processes emu into value-added meat products including smoked emu, salami, kabana, sausages, pies and quiche. The smallgoods produced from emu appear to be more acceptable than emu meat itself to the mainstream Australian market. Tjuringa Emu Farm has experienced considerable interest in their emu sausage sizzle barbecues held at the farmers’ markets in Brisbane, where the sausage sells for $3.00 per stick.

Demand for the product is erratic; and a stock of meat is kept in cold storage to enable orders to be fulfilled within 24 hours. Tjuringa has been selling meat since 1996 and noted an increase in demand in May–August 2001. The company’s initial aim is to build domestic demand to 1 tonne of meat per month. Most of the meat is sold on the domestic market, but there has also been interest from export markets, which it was thought might have been stimulated by the Sydney Olympics.

The meat currently wholesales at between $5.00 and $20.00 per kilogram (depending on the cut), with a recommended retail price of between $7.00 and $24.00. In 2001 the farm-gate price needed to be above $12.00 per kilogram to cover variable costs.

Emu meat is sold through wholesalers to the food service and restaurant industries, and direct to the consumer through the monthly farmers’ markets held in Brisbane and the Gold Coast. Legislation allows the producer to personally deliver product direct to restaurants but not to wholesalers. Peter Thompson actively markets his own product, both to restaurants and at the farmers’ markets. At these markets the temperature of cold cabinets is checked, weights and measures are monitored and a three-sided stall is required under council regulations.

The emu meat is transported in accredited refrigerated vans, with all steps taken to ensure the integrity of the cold chain. The meat is supplied throughout Australia and overseas. Shelf life of these products is about 6 weeks in the coldstore; the meat must be kept at a temperature below 4°C.

In this very small industry it is vital for Tjuringa to have close relationships with other companies in the supply chain. The company works with the butchery that contract-kills the birds, and keeps regular contact with customers.

So far traceability is voluntary and the responsibility of the individual companies. Tjuringa Emu Products has not yet applied for quality assurance; however, the company has a full traceability program in place with every batch of meat having a unique number that appears on a pre-printed box. A record is kept of these box

numbers, ensuring that the product can be traced to the property of origin. This means that if there is a reported problem with health or quality the product can be traced to its source, showing when and where it was killed and packed. This company intends to pursue ISO accreditation in the future.

3.8.3 Processor Crows Nest Butcher– Baden Brown has been working with the emu industry from the beginning. The butchery processed emu meat when originally the birds were being slaughtered at Gatton College before the abattoir facility at Cherbourg was available. Baden Brown started slaughtering the emus when individual farmers were unable to have the work done at Cherbourg. This was to fill a gap and obviate the necessity to send the emus interstate to be killed. Crows Nest Butchery has its own abattoir where the birds are contract killed. It also processes ostrich, deer, cattle, pigs and goats.

Figure 3.4: Crows Nest butchery

The abattoir is relatively small and basic, but has been adapted specifically for handling emus. When the birds are delivered the stockyards are screened with shadecloth. The number of birds killed at one time is relatively small, so a large catching facility is not required and this system works well.

The emus are herded individually into an innovative crush, which has been designed to hold the birds for stunning. This crush ensures that there is no damage to the birds or the handlers. The birds are then hung before plucking, and the pinfeathers are removed by shearing. It is difficult to remove the skin from the fat and this is achieved by the use of an air pump to assist the separation. The fat is then checked for contaminants. The birds are killed one day and hung in the coldroom ready for processing the following day. The butchery then packs the meat, which is marketed by the producers.

Forty emus can be killed and processed in one day with a workforce of eight people. Processing emus is thus a very labour-intensive process, and it is also not easy to retain staff to carry out this job. In 2001 the butchery expected to processes up to 1 000 emus, approximately 150 deer and a small number of ostrich. Figure 3.5: The killing box

Chilled meat is packed as fan fillets on trays, steak cuts and whole cuts. Meat sold to wholesalers is vacuum packed and frozen. Shelf life for the chilled meat is 4 weeks; vacuum-packed meat has a shelf life of 6–8 weeks, or longer if frozen. The frozen meat is then stored in a local coldstore for sale to wholesalers and distributors in Brisbane and Sydney.

Figure 3.6: Tjuringa meat label

A label is attached to each tray, and includes a bar code. The labelling details include product description, processor’s name, for whom processed, processing address, quality assurance and licence details, use-by date, and date packed (figure 3.6).

Food safety regulations dictate that meat must be transported in an accredited refrigerated vehicle, and temperatures are monitored when it leaves an establishment and when it arrives at the next delivery point. Meat must be kept below 5°C.

The main problem encountered by Crows Nest Butchery was the availability of transport for small volumes of product. The amount of meat produced from emus is relatively small (e.g. 26 emus equate to only 12 boxes of meat).

The butchery is accredited under the Q Safe quality assurance program administered by Safe Food Queensland to ISO 2001 level.

3.8.4 Wholesalers Three wholesalers were identified servicing the market for emu meat in the Brisbane area. The wholesalers said they would work together to secure supplies of meat for their clients, particularly for speciality meats. They also supplied the meat interstate to other major cities.

The domestic market for emu meat is reported to be small. Demand fluctuates and is unpredictable; however, since May 2001 there has been an increase in demand. It was thought that the Sydney Olympics stimulated interest in Australia’s native meats, and ships docking in Brisbane were now providing a new market for emu meat. Wholesalers reported that 12 months ago emu meat was difficult to obtain in Brisbane, with supplies coming from Victoria. However, Tjuringa farm is now supplying product for the Brisbane market.

The wholesalers are mainly servicing the food service and hotel markets, with some small demand from restaurants. However, one wholesaler sells most of its product into overseas markets, with exports representing 95% of its turnover. This wholesaler reported that the total value of its emu meat sales was equivalent to only 20% of its total crocodile meat sales, and this represented a very small tonnage. Wholesalers agree that the domestic market for emu meat is very small and requires significant investment in market development.

Wholesalers reported that they have sufficient cold-storage capacity to service their requirements; if additional capacity is required they rent it from major cold-storage companies. Wholesalers also use transport companies, because all meat must be transported in an accredited refrigerated vehicle. As the volume of emu meat sold is small, it is usually consolidated with other products. On average wholesalers hold approximately 1 tonne of emu meat in cold storage and place orders as required.

3.8.5 Retailers For the purposes of this study three supermarkets and three butchers were contacted. Coles and Woolworths have national coverage, and Action Supermarkets are based in Western Australia but have 41 stores in Queensland. The butchers included a specialist organic butcher, a butcher that supplies restaurants, and one that specialises in smallgoods and game meat.

Coles operates a central buying system from Melbourne and does not stock emu meat. Coles identified a growing demand for kangaroo meat, which is now stocked in 150 stores. The company has a section devoted to the study of store demographics, and a decision to stock a product would also be influenced by the demographic make-up of an individual store’s customer base. For example, some stores stock kosher meat if they are located in an area with demand for these products. Emu meat is no longer routinely stocked.

Some trials were undertaken to test the acceptance of game meats. A barbecue-style pack containing a variety of meats (e.g. kangaroo, emu and ostrich) had been trialled, but was discontinued due to lack of demand.

Action Supermarkets would stock emu if the demand were there, but do not routinely stock the product in their stores. In some stores they stock kangaroo, rabbit and quail meat, which is purchased from wholesalers. When interviewed, they did not believe there was any consumer demand for emu meat.

Woolworths has a central buying system based in Sydney, but the policy to buy game meats is different for every state. So far emu is not stocked, but quail, guinea fowl and kangaroo are stocked in some states.

Butchers reported very limited demand for emu meat from the general public and their restaurant clients. One suburban butcher would not stock emu meat because he had a bad experience with the quality of the meat in the past. There was no demand from the general public in his area.

An inner-city butcher was selling emu meat at a price of $35.00 per kilogram (retail). Game meat in total represented only about 5% of the total turnover of the shop. The clientele for this butchery consisted mainly of Europeans, and some restaurants and hotels.

The butchers suggested that the industry needed generic promotion and marketing of the product to the consumer. It was also felt that the overseas demand for game meat had increased prices to a level above what the domestic market was willing to pay.

Regular supply was an important factor. A key to this business was providing a reliable and frequent service to clients and working on a daily turnover of product. Delivery times of a week or more were not considered to be satisfactory. One butcher expressed the view that he would like to receive the same level of service from his suppliers as his business provided to its customers. This butcher was also interested only in chilled meat and did not want to buy frozen meat, which would not fulfil the needs of his restaurant clients.

The butchers in the study all had their own refrigerated delivery vans. One butcher elected to use contract refrigerated vehicles for any out-of-town orders. The butcher serviced clients in Brisbane and on both the Gold Coast and Sunshine Coast.

All three butchers’ shops are Q Safe accredited. The proprietors felt that the program took care of food safety issues and ensured that customers were receiving product of the best possible quality.

3.8.6 Restaurant Il Centro Restaurant is an inner-city restaurant located on the riverside Eagle Street Pier complex near the Brisbane River. The restaurant is located between several up-market hotels and next to the Australian Stock Exchange. It therefore enjoys a high turnover, with a clientele of tourists and the upper end of the business market. The restaurant has duck and quail on the menu but also serves partridge, pheasant, emu, crocodile, hares and snails when available or in season and has won many awards for its cuisine.

The restaurant promoted emu meat on their ‘specials’ menu during the winter months (April–August) when fresh meat supplies are available. There was insufficient supply of the meat to place it on the daily menu. This was because the restaurant uses only the prime fan fillet; as there are only two of these cuts of meat from each bird, the supply is limited by the number of birds killed and the shelf life of the meat. Emu meat is used on the menu to offer an alternative eating experience that is not often available.

Executive chef Romain Bapst is very progressive and has strong links with his supply chain. He expects a high degree of customer service from suppliers and is willing to change suppliers if he is not happy with the service he receives. He considered the main market for emu meat to be gourmet restaurants in tourist areas or overseas and believed there would be only limited demand for the meat in suburban areas of Brisbane. Emu meat was considered to be in competition with other traditional meats, which are preferred and more competitively priced.

The restaurant used approximately 20 kg of this meat in a 3-week period when served as a blackboard ‘special’ (between 15 and 20 portions per day). This is a small amount when compared with kangaroo meat, of which they use 15 kg per week, rising to 60 kg per weekend during special events such as times when the ‘Kangaroos’ football team are playing in Brisbane.

The chef said that the meat needed to be cooked by an experienced chef to ensure a good texture. He suggested that the meat be cooked to medium – not rare but definitely not well done. The steaks were marinated for 2 days in oil and herbs with slices of lemon to enhance the flavour and tenderness.

This gourmet restaurant prided itself on the use of fresh product and did not want to use frozen product. The restaurant was happy with the quality and consistency of the emu meat supplied by Tjuringa Farm. Prompt service was of the utmost importance.

3.8.7 Internet Some companies use the Internet to sell a range of game meats, but sales are limited. It is a useful addition to a retail business, but a company operating only from the Internet found that at this stage selling game meats is not viable.

Gamefarm.com.au is the Internet shopfront for a leading supplier of game birds and game meats within Australia, and is fully export licensed. The site offers a range of emu fillets, steaks and trim offered in multiple packs by weight.

Meat-tingplace.com is the web shopfront to The Meat-ting Place organic butchery, located in a trendy inner-city suburb of Brisbane. This site, which features emu and native pepper sausages among other exotic meats on offer, has been in operation for 3 years. It enables customers to place orders over the Internet and to receive free delivery in the Brisbane metropolitan area.

Meat-on-line was a website that offered online ordering for a complete range of game meats, including emu meat sourced from Victoria. The company, which also had other interests in the non-food area, supported the site for 6 months but did not find it to be cost-effective. They did receive some orders but not enough to make the business viable. They believe the website was probably before its time and this market will take some years to develop. The site has now been closed down.

3.9 Case study: Emus – South Australia

Producer Farm gate Delicatessens

Abattoir Wholesale shop

Food service restaurants/hotels Processor/butcher/distributor/ wholesaler/retailer/ Catering butchers

Adelaide David Jones markets Gourmet stores

Figure 3.7: This producer has very close links with the supply chain, distributing emu meat to markets in South Australia and the Northern Territory. The meat is value-added by a South Australian smallgoods manufacturer, who further supplies to southern markets and services its own retail outlets and other speciality shops within South Australia.

3.9.1 Overview This case study outlines the main supply chain for the domestic supply of emu meat from South Australia. It again demonstrates the close association between the producer and processor in these small industries, and the success that can be achieved by selling through another speciality manufacturer, in this case a smallgoods specialist. This meat is not exported but is supplied interstate and to the Northern Territory.

3.9.2 Producer Bruce Makin, of Makin’s Emus, farms 3 700 acres at Keith in South Australia. He is also the president of the Emu Federation of Australia, and has been involved in the emu industry for the past 10 years.

Figure 3.8: Keith is located 250 km south-east of Adelaide.

The farm keeps 100 breeding emus on an area of 25 acres and produces, on average, 500 birds per year. The farm also stocks sheep, cattle and pigs, and grows lentils, canola and lucerne for seed.

The emus lay their eggs from May to September. The eggs are incubated on the farm and hatch out 2 months after being laid. The first chicks are produced in July. Breeding birds have a working life of up to 15 years.

Between 30 and 40 birds per month are sent to the local abattoir in Keith for slaughter. The emus are herded individually into a small, darkened pen where they are electrically stunned before being killed. This had been found to be the best way to handle the birds as it produces limited stress or bruising and is quick. The fat is then separated from the meat, which is then chilled before dispatch. The amount of fat available per bird varies considerably throughout the year, from 2–3 kg in the winter to 12–14 kg in the summer months.

Costs of killing vary according to the extent of processing required. Costs of producing the meat to carcass stage are around $40 per bird but can rise to $75 per bird should boning or further processing be necessary. This is expensive as each bird produces only 12–13 kg of meat. The meat is supplied on a fortnightly basis throughout the year.

Bruce Makin buys back some of the processed and packaged emu meat from the processor for wholesale and farm-gate sales. Markets include South Australia and Northern Territory. The company is currently concentrating on ‘getting the product right’ and is involved in research and development of the oil and skin production.

3.9.3 Abattoir/wholesaler/butcher Dalriada Meat Pty Ltd, located at Keith in South Australia, has both retail and wholesale outlets. The abattoir employs five people and consists of an abattoir and processing facility. The wholesale shop operates separately. The company processes cattle, sheep, pigs, goats and emu, and has processed ostrich in the past.

Dalriada Meats and Makin’s Emus have a close relationship and help each other in a variety of ways. The producer, who is skilled in handling the birds, helps with the kill by stunning the birds, thereby avoiding injury to other staff. The birds are not restrained or stressed by this method.

The abattoir processes about 60% of the meat into emu ham rolls, sausages and steak, which it sells through the wholesale shop. Its customers include local hotels/restaurants and delicatessens. The other 40% of the meat is sold as a complete carcass ‘on the hook, bone in’ for further processing by Barossa Fine Foods in Adelaide (a distance of approximately 250 km). Barossa Fine Foods are speciality game meat butchers and smallgoods manufacturers.

The emu meat is distributed in cryovac packs, which gives the meat a shelf life of 6 weeks for the steak and 12 weeks for the emu ham rolls. The cryovac packs are transported in two sizes of carton, the smaller holding 14–15 kg of meat and the larger 20–25 kg of meat. The size of carton used depends on the size of the order.

The company operates under the quality assurance (QA) program implemented by Meat Hygiene South Australia. As a requirement of this system, the temperature of the meat must be recorded during processing and before distribution, and maintained below 5°C. The meat is classified as domestic poultry.

The meat is transported to Barossa Fine Foods by a refrigerated truck. The transport company used varies according to availability. Transport is not usually a problem as there are a number of companies who service the area and back load to Adelaide. However, lack of availability over the Christmas period has accentuated the need for Barossa Fine Foods to acquire their own refrigerated van or truck.

The town of Keith is small, with a population of only 1 000. The butcher is therefore in contact with his local customers on a regularly basis through the shop, and sometimes frequents the restaurants he supplies. Customers in Adelaide communicate if they have any problems, but this does not often occur, and any problems that do arise are usually resolved quickly.

The market for emu meat has changed significantly since the industry commercialised in the 1990s. Six years ago in South Australia there were 10 producers supplying emu meat to this market, but now there is only one. In the beginning, Dalriada Meats processed 400 birds a month and supplied a company that supplied supermarkets, but this trade ceased around 3 years ago.

3.9.4 Processor/butcher/distributor/wholesaler/retailer Barossa Fine Foods specialises in traditional and game meats, hams, bacon, galantines, pâté and smallgoods. Over the past 11 years the company has established itself as a leading player in the market for these products in South Australia and has received numerous awards for the quality of its products and work practices. The business operates a butcher, processor, distributor, wholesaler and retailer of meat products, and currently employs 34 staff.

Barossa Fine Foods offers a wide range of fresh, processed and highly specialised products including wursts, salamis, aufschnitts, leberwursts, specialty sausages, pâté, hams, bacon, beef, veal, pork, lamb Saltbush, mutton, poultry such as chicken, turkey and duck, emu, rabbit, venison and kangaroo; it also produces various vacuum-packed products. The company is South Australia’s largest supplier of value-added emu and kangaroo, and is also the largest supplier of organic meat products.

Most of the emu products, especially sausages and smoked emu, enter Northern Territory markets, but some product also enters the Sydney and Adelaide markets through catering butchers and gourmet stores. Expansion is currently difficult due to limited supply, limited demand, very low margins, and poor consumer awareness and acceptance.

Barossa Fine Foods processes 15 emu carcasses every fortnight. Depending on the meat, carcasses arrive whole at the processing facility skinned and partially cleaned before being boned out and processed into the various products. Some meat, e.g. rabbit, may arrive further processed and packaged in cartons or bags, and are then simply on-sold. The company source all their game meat from within South Australia.

Figure 3.9: Franz Knoll and the smoke cabinet

The South Australian market is relatively small by Australian standards. In fact, the company believes this market is too small and competitive and has led to a reduction in specialisation. Further, it is difficult to compete in the larger and potentially more lucrative markets in Melbourne and Sydney due to intense local competition and freight costs.

Profit is based on tight but variable cost-plus margins of generally around 10–15%. While value-added retail products provide the largest margin, wholesale profits are based on large volumes (and variety). Turnover is higher in the summer months. The domestic market for emu meat was thought to be between $1 million and $2 million, but was stagnant in 2001.

Barossa Fine Foods adheres to a number of quality assurance systems including HACCP SGS accreditation, the Woolworths Vendor Quality Management System, and various other systems imposed by government legislation. The company does not consider that it has any problems with tracking or quality-assurance issues. The company also has confidence in maintaining the cool chain. Temperatures are kept between 0°C and 2–3°C in refrigerated storage and 10–15°C in working areas. It is anticipated that there may be a serious problem over a shortfall in cold storage space with increasing pressure to expand the operation. Ultimately, these facilities will be segregated completely, but for now the capital cost required is a growing concern.

Due to the limitations of cold-storage space, product turnover is typically done weekly, although products such as salami and prosciutto may last 3 weeks, and when frozen 3 and 5 months respectively. The shelf life of the product range varies from a few days to a whole year.

In terms of national distribution, 85% of Barossa Fine Foods’ product enters the local Adelaide market; around 8% is sold to Sydney, 4–5% to the Northern Territory, less than 2% to Melbourne, and less than 1% to Brisbane. The company uses its own (three) refrigerated vans, together with the services of national refrigerated trucking companies, to make its deliveries. These may be daily, weekly, monthly or on an ad hoc basis.

Barossa Fine Foods considers that it has strong supply chain relationships. It maintains open lines of communication and invites feedback that will improve service delivery. Most of the comments received tend to relate to the organic products available, especially queries relating to the feeds used, the breeds involved, and the growing conditions.

The company has its own retail outlet at Adelaide’s Central Market and through David Jones’ Adelaide store. They also supply throughout Australia, including more than 80 products to Sydney alone. Most of their products are sold to the food-service sector through specialty catering butchers, including 97% of the emu products. The remainder is sold through retail outlets.

3.10 Major issues The following issues were identified:

• The small size of the industry means that continuity of supply could be a problem in the future. If meat is not consistently available, restaurants are not likely to feature the product on the main menu, but will use the meat on their specials ‘blackboard’ menu when the meat is available.

• Limited interest in emu meat in the domestic market was reported. The main market was at the gourmet end of the restaurant market where price was of lesser importance and in tourist areas. However, this segment was small and, with the prevailing economic situation, the market was more price-sensitive than in previous times.

• Aggressive marketing of the products is needed if markets are to be retained. This had become very evident by the drop in demand. Wholesalers are not always aware of the availability of emu meat or sources of supply.

• There is increasing interest in these products in Europe, where alternative meats are being sought as a result of food scares caused by diseases such as foot-and-mouth and BSE.

• The availability of transport for small volumes of product can sometimes provide a challenge. The meat must be moved in an accredited vehicle and, depending on the location of the supplier, availability of accredited transport had been found to be problematic at times of high demand such as holiday periods. Although it makes economic sense to use transporters for this purpose, convenience sometimes dictates that suppliers operate their own refrigerated vehicles.

• The emu industry needs to reduce costs, carry out product development and promote all the products provided to make emu farming a viable enterprise.

3.11 SWOT analysis: emus

Strengths Weaknesses Opportunities Threats Small industry, with Lack of resources for Cooperation to build Emu is a native developed 5-year marketing/promotion/ sustainable markets animal, more R&D plan R&D protected and Consolidation of regulated than ostrich Lean meat with Transport limited by transport with other health benefits availability of domestic meat Demand correlated accredited vehicles products with tourist industry Good research-based highs and lows knowledge on Lack of consumer Promotion of an production, awareness for emu Australian native Overseas competition processing and meat bird (e.g. USA and China) transportation of emus Relatively high cost Promotion of the High feed costs compared with health benefits of forcing breeders to As an Australian traditional meats emu meat dispose of birds native bird attracts marketing to tourist Relatively high price Promotion of Cost of government depressing demand smallgoods made fees and charges Innovative value- from emu meat (variable between adding to utilise all Reduced number of states) cuts of meat available birds Cross-selling with other Australian Rising cost of Farmers still holding Small supply native meats. transport breeding stock, capability which could Development of Newcastle disease in regenerate industry export markets for poultry emu meat Lack of demand from Australian consumers

Competition from other meat products

Necessity to sell all parts of the bird for industry to be viable

3.12 Future directions Few general issues were identified along the supply chain, apart from those implicit in economies of scale (i.e. costs involved with producing and transporting small amounts of meat, and availability of accredited refrigerated vehicles when needed). One wholesaler predicted that his company might run into storage problems in the future if it were to expand, but most companies interviewed for this report had no problem in accessing additional storage space, albeit at a cost.

The most important issues for the remaining emu producers/processors interviewed for this report were: • generic promotion of the health benefits of emu meat • assistance in marketing to establish viable markets for these products • scientific research for the pharmaceutical properties of emu oil.

This small industry has developed a 5-year development plan. This focuses on increasing the usage of oil, meat, skin, shell, feather, and the products of all these components, and on broadening the product base using these raw materials (product development). Some strategies are already outlined in this document. Some further strategies are suggested, in addition to those already identified in the 5-year plan:

• Research and information on world markets and prices could be disseminated, using the Internet site suggested in the 5-year plan.

• Scientific research could be carried out to examine the properties of emu blood and determine whether there are any potential pharmaceutical uses (e.g. crocodile and rabbit blood).

• Research is recommended to identify more efficient methods of removing emu feathers to reduce processing costs.

• Supply-chain work across smaller industries has produced results by creating strong links between members in the chain and identifying alternative markets for the products, based on strong marketing principles. For example, the RIRDC skins project helped producers to identify value-added products that would have the best chance of being successful in overseas markets. A similar supply chain project might also assist the development of markets for emu products.

• Promotional costs (e.g. for attendance at overseas markets and trade shows) could be shared with other Australian game meat industries. It is proposed that resources be combined with other Australian native meat industries that have larger established markets. This might be achieved through an industry development and liaison officer, appointed to work across these small industries to coordinate market promotion and industry development activities.

4 Game birds

4.1 Industry overview All six states in Australia are producing at least one of the game bird species covered in this research, which included duck, pheasant, quail, squab and wild pigeon.

No official production figures are available for each of these species. Based on Australian production estimates, quail is the most widely produced species in terms of numbers of birds produced, followed by duck, with pheasant and squab produced in significantly smaller numbers.

A number of outbreaks of Newcastle disease in poultry have occurred in recent years. Between 1998 and February 2000 there were incidents of Newcastle disease, most notably occurring in New South Wales. By October 2001 Australia had gained ‘country free from the disease’ status, only to have another outbreak occur near the town of Meredith in Victoria on 12 May 2002. The disease was declared eradicated on 19 July, and the quarantine restrictions were lifted from this area on 2 September. Australia is again expected to be declared free from the disease on 24 November 2002.

These outbreaks affect the export ability of the domestic poultry industry. The stance of importing countries towards Newcastle disease varies. Some will take Australia’s poultry exports directly after quarantine restrictions are lifted from the infected area, but there are others that may choose not to accept poultry exports from Australia for a certain period of time after country free status has been declared. These restrictions may be specific to an area in Australia or be applied to Australia as a whole.

The main domestic markets for all species researched are gourmet restaurants and butchers. It is mainly whole carcasses that are supplied, although a wide range of value-added products are produced from duck, quail and pheasant, with limited value adding occurring for the other species. As table 4.1 indicates, the largest number of facilities are available for processing duck, followed by quail, squab and pheasant. There was only one facility identified for processing wild pigeon, in South Australia. However, it should be noted that within each state a number of the processing facilities processed multiple game bird species.

Table 4.1: Estimated number of processors for game bird species by state, 2001 State Duck Pheasant Quail Squab Wild pigeon Qld 4 1 1 3 n/a SA 6 1 3 2 1 Tas. 3 n/a 2 n/a n/a Vic. 8 3 4 3 n/a WA 2 1 1 n/a n/a NSW 4 4 7 4 n/a Total 27 10 18 12 1 Source: Leech & Kent 2002; Interviews 2001

In 2001 it was estimated that the total number of duck, pheasant, quail and squab processed nationally was approximately 12 million. Quail and duck comprise almost 94% of production, with squab and pheasant accounting for around 6% (table 4.2).

Table 4.2: Estimated numbers of game bird species processed nationally, 2001 Species Number of birds Quail 6 500 000 Duck 5 000 000 Squab 680 000 Pheasant 60 000 Total 12 240 000 Source: Leech & Kent 2002 Note: State production figures are unavailable as they are either not collected by state bodies or are not distributed due to privacy issues. No figures available for wild pigeon.

4.2 Markets Industry representatives indicated that the major domestic markets for game birds are gourmet restaurants and butchers. Game birds are mainly sold domestically, with minimal exports reported for all species investigated in this report.

There were no known exports of quail, squab, duck or pheasant from Queensland, South Australia, Tasmania or Western Australia. There were some exports from New South Wales; however, with the outbreaks of Newcastle disease in chickens in 1999 exports temporarily ceased.

Victoria reportedly exports some game birds, mainly ducks. In the past there have been small, infrequent shipments of other species covered in this report, but in the 12 months up to March 2002 there have been no exports of these other species. As table 4.3 indicates, total exports of duck, geese and guinea fowl in 2000/01 were 462 tonnes. Exports have fluctuated, but there has been ongoing growth since 1997/98 in exports of frozen ducks, geese and guinea fowl, and offal from these species.

Table 4.3: Exports of duck, geese and guinea fowl products 1996–2001 (kilograms) Category 1996/97 1997/98 1998/99 1999/00 2000/01 Meat of ducks, geese or guinea fowl (not cut 647 0 742 2 708 16 673 in pieces but fresh or chilled) Meat of ducks, geese or guinea fowl (not cut 19 581 15 476 53 350 165 004 187 975 in pieces but frozen) Meat and edible offal of ducks, geese or 15 378 47 511 241 175 120 781 107 316 guinea fowl (other than whole or fatty livers but fresh or chilled) Meat and edible offal of ducks, geese or 594 997 41 903 108 939 196 577 150 037 guinea fowl (other than whole or fatty livers but frozen) Total 630 603 104 890 404 206 485 070 462 001 Source: ABS trade data 2002

4.3 Duck

4.3.1 Market The Australian market in 1999/2000 was reported to be worth $41 million, with 5.25 million ducks slaughtered (Michael 2001). The main market for ducks is gourmet restaurants and butchers. In specific instances it was reported that Asian butchers and restaurants were accountable for a proportion of sales. Ducks were also supplied in smaller volumes to local farmers’ markets, hotels and delicatessens.

4.3.2 Products A multitude of duck products were identified during the research; but the major product obtained from the duck is the meat, both in whole carcass and portion form. Whole eviscerated duck carcasses supplied to the market ranged in size from 12 to 35 (1.2 – 3.5 kg), depending on the species. Both intensively bred and free-

range organic ducks are supplied to the market. The species identified included Muscovy, Pekin, and Pekin cross Aylesbury ducks.

Whole duck carcasses are supplied with heads either on or off. In some cases, depending on customer requirements, the whole bird may be supplied with head and feet still attached. Duck portions supplied to the market included breasts, marylands, wings, fillets, supremes, kiev fillets and smoked fillets.

It was suggested that the demand for whole ducks is declining, whereas demand for duck portions is increasing.

Other secondary duck products supplied to the market include offal (liver and giblets), bones, fat, necks, pâté and eggs. One of the restaurants interviewed advised that duck necks are used to make sausages.

A wide variety of packaging is used for whole ducks and duck portions. Plastic bags and cryovac packaging are generally used for whole ducks, and duck portions are usually vacuum packaged or shrink wrapped. The whole ducks and duck portions are then packed into cardboard or polystyrene boxes.

4.3.3 Price

Wholesale prices for duck depend on the cut and form. Whole birds range in price from $5.90/kg to $6.90/kg and from $6.50 to $25 per bird. The proportion-controlled pieces range in price from $6.45/kg for bone in breast (wing on) to $43.20/kg for smoked duck fillet. The highly value-added products such as smoked duck fillet command premium prices (table 4.4).

4.4: Wholesale prices for duck, 2002 Product NSW Vic. Qld Whole bird (depends on size and species) $5.90–8/kg $6.90/kg $6.50–25/bird $7.65–12.95/bird Breast n/a n/a $20–28/kg Breast, bone in n/a $13.50/kg n/a Breast, bone in, wing on n/a $6.45/kg n/a Maryland n/a $10.50–11.50/kg $12–13/kg Wings n/a $2.60–3.60/kg n/a Duck breast supremes (depending on $16–22.50/kg n/a n/a species) Free-range duck breast fillet $24.90/kg n/a n/a Smoked duck fillet n/a $43.20/kg n/a Source: Wholesaler interviews 2002

4.3.4 Logistics In the case study on duck and also in the case of other participants interviewed, production and processing occurred at the same location, therefore no transportation from the farm to the processing facility was required.

After processing, both airfreight and refrigerated road transport were used to transport the meat to customers. One of the participants suggested that the quality of service from airfreight transport was unacceptable, with damage to the meat occurring during transit. This problem prompted the use of road transport as an alternative, as there was no damage to the meat and the cost was considerably less.

4.4 Pheasant

4.4.1 Market In 2002 the wholesale value of the Australian market for whole pheasant is estimated to be worth $869 000.2 Pheasant is supplied to restaurants, hotels and butchers. Gourmet restaurants in particular account for a high percentage of sales, with some product being sold to European butchers and restaurants. Demand reportedly peaks from March to August when pheasant is in season and fresh supply is available.

4.4.2 Products Two key products are derived from pheasant. The primary product is pheasant meat, supplied mostly as a whole eviscerated carcass with the head left attached, and in some cases with both head and feet attached. The other product is feathers for fashion accessories and fly fishing, although both of these markets are small.

A dressed hen carcass reportedly weighs between 800 g and 1 kg, and a dressed cock carcass weighs between 1.2 kg and 1.5 kg. However, some wholesalers were found to be selling birds as small as 700 g. Some restaurants express a preference for a hen or a cock, depending on the way they intend to prepare the bird. Some pheasant carcasses are further processed into portions of breast fillets, legs, supremes and marylands. Pheasant pâté is also sold.

Four forms of packaging were identified to supply whole and portioned pheasants to the market. Whole birds are supplied in cryovac packaging, shrink-wrap packaging and plastic bags. Pheasant portions are packaged in vacuum-pack trays and shrink-wrap packaging. After packaging, 8–12 whole birds are packed into cardboard or polystyrene boxes.

4.4.3 Price The prices fetched by pheasant depend on the cut, the size of bird and the state where it is sold. Whole birds sell for between $10 and $19.90 per bird and $13.50–18/kg, with supremes and fillets selling for very high prices – approximately $52 per kg and $57 per kg respectively (table 4.5).

Table 4.5: Wholesale prices for pheasant, 2002 Product NSW Vic. Qld Whole bird (depends on size) $14.45/kg $13.50/kg $14.95–18/ $16/bird $11.50–19.90/bird $10–15/each Fillet n/a $57.25/kg n/a Supremes n/a $52.30/kg n/a Maryland n/a $6.80/kg n/a Source: Wholesaler interviews 2002

4.4.4 Logistics Where transport was required between the producer and processor, the pheasants transported by road to the abattoir in chicken crates for processing. The processed meat is generally transported by refrigerated truck direct to distributors or customers. In one instance it was found that airfreight was used to deliver pheasants interstate.

Some meat is also stored in freezer facilities. This meat is delivered by refrigerated truck to the storage facilities, where it is held until it is distributed to customers, again by refrigerated truck.

4.5 Quail

4.5.1 Market In 2002 the wholesale value of the Australian market for whole quail is estimated to be $14 500 0003. Most quail are supplied to restaurants and butchers, with gourmet restaurants featuring as a prominent market.

2 (derived from the average price per bird of $14.48, multiplied by estimated 60 000 birds processed).

Ethnic restaurants and butchers servicing Asian and European customers also buy quail. Other smaller markets include hotels and airlines. An industry representative reported that opportunities may exist to increase sales through butchers.

4.5.2 Products The three products from quail are meat, bones and eggs. The primary product, quail meat, is supplied as an eviscerated whole carcass or in a variety of portions. Whole-carcass forms include bone-in, boneless, tunnel- boned and butterfly. Quail portions include fillets, breasts, marylands, supremes, smoked supremes and drumsticks.

Several forms of packaging are used for whole quails and quail portions. Whole quails are packed in trays of three to six birds and wrapped in plastic. Portions are also supplied to the market in this form of packaging. Additionally, vacuum packaging is used for butterfly boned and portions of quail. Cardboard boxes and polystyrene boxes are used for packing whole quails and portions for delivery to customers.

4.5.3 Price As table 4.6 indicates, wholesale prices for quail depend on cut, form, size, and the state in which the product is selling. Value-added products are selling for considerably more than the whole bird.

Table 4.6: Wholesale prices for quail, 2002 Product NSW Vic. Qld Tas. Tray of 6, depending on weight $1.80–1.85/bird $1.55–2.80/bird –$2.40–3.00/bird $1.95–2.50/bird* 14/tray Butterfly tray of 6 $2.80/bird $3.05–3.90/bird $2.80/bird n/a Tunnel-boned $3.30/bird n/a n/a Tray of 3 birds 300–350 g $4.00/bird n/a n/a n/a Tray of 4 depending on weight $2.30–2.80/bird n/a n/a n/a Pack of 6 boiling birds $1.15/bird n/a n/a n/a Maryland $13.65/kg n/a n/a n/a Supreme $23.95/kg n/a n/a n/a Breast meat n/a n/a $25/kg n/a Fillet, skin on $31.15/kg n/a n/a n/a Fillet, skin off $35.30/kg n/a n/a n/a *Plus 15 cents for transport and 5 cents for delivery to freight dispatch Source: Wholesaler interviews 2002

4.5.4 Logistics All of the participants interviewed were both producers and processors of quail, hence there were no known transportation requirements for delivering birds to the processing facility. Quail meat is delivered to markets by refrigerated truck and airfreight.

3 (derived from the average price per bird, $2.23, multiplied by estimated 6 500 000 birds processed.)

4.6 Squab

4.6.1 Markets In 2002 the wholesale value of the Australian market for squab is estimated to be $7 060 000 (derived from the average price per bird, $10.38, multiplied by estimated production found in the research, 680 000 birds). Most squab meat is supplied to restaurants and butchers. As for other game birds, gourmet restaurants are the main buyers. A significant proportion of the restaurants and butchers supplied with squab are either Asian or European. Other markets for squab meat were found to include a delicatessen, a caterer and a wet market vendor.

4.6.2 Products At present squab are produced only for the meat, and are sold to the market as eviscerated whole birds. The birds are graded in size from 2.5 to 5.5 (250 to 550g). On some occasions soup birds (old breeding stock) are also supplied. It was suggested in one instance that further market development could occur by producing value-added squab products.

Squab carcasses are wrapped individually in vacuum packaging, shrink-wrapping or plastic bags. The birds are then placed into cardboard boxes or styrofoam boxes for delivery to customers.

4.6.3 Price As table 4.7 indicates, squab sells at between $4.20 and $14 per bird, depending on size. There is considerable price variation between states.

Table 4.7: Wholesale prices for squab, 2002 Product NSW Vic. Qld Depending on size of the bird $11/bird $4.20– $10–15/bird 11.70/bird Source: Wholesaler interviews 2002

4.6.4 Logistics Squab are processed on the farm where they are produced, or are transported in cages by road from the producer to the abattoir (McInnes 2002). Where squab were found to be transported from the producer to the processor, the birds were placed into cages and then loaded on a trailer and taken to the abattoir. After processing the squab is generally transported to wholesalers/distributors by road. In one instance a wholesaler reported receiving squab meat via airfreight. Further distribution to customers down the chain is by road transport.

4.7 Wild pigeon

4.7.1 Markets According to the people interviewed for this research, wild pigeon are harvested through field netting. These birds are mature, unlike squab, which are immature farm-bred pigeons (section 4.6). Wild pigeon are supplied mainly to restaurants and butchers.

4.7.2 Products Wild pigeon are supplied only for meat, and only as whole carcass, which is gutted and cleaned and the head and feet removed. The carcass weight ranges between 250 grams to 300 grams. Wild pigeon are packed on trays with two birds to a tray, and then wrapped in plastic. The birds are then packed into polystyrene boxes for delivery.

4.7.3 Price Wild pigeon were quoted as selling at a wholesale price of $4.50 per bird.

4.7.4 Logistics The only harvester of wild pigeon that was identified could not be contacted; hence no indication can be given regarding transportation of the birds from the harvester to the processing facility.

The wholesaler received the pigeons predominately by airfreight, although sometimes by road. The size of the order would determine whether the pigeon was delivered by air or road. The wholesaler used a refrigerated truck for deliveries to the customers.

4.8 Value chain analysis

Table 4.8 outlines the costs involved in distributing pheasants through the supply chain.

Table 4.8: Typical costs and returns throughout the pheasant value chain* Section of value chain Cost/return Menu price $26 Wholesale price/kg $12-18 Storage cost/pheasant/week 2 cents Consignment cost $10 (1–4 boxes) Freight cost/pheasant $2.50/box Processing cost/pheasant $1.50 Cost of production/pheasant $3.25 *Example: Victoria – whole bird Note: The costs are a guide only. They will depend on the distance between members of the distribution chain and the numbers of pheasants supplied.

Limited information is available about the costs associated with distributing the other game-bird species covered in this research. Where available, some costs were obtained from industry members within the same supply chain, and are shown in table 4.9.

Table 4.9: Available costs for duck, squab, quail and wild pigeon throughout the chain Section of value Species chain Ducks Squab Quail Wild pigeon Production $7/bird n/a n/a n/a Farm gate n/a $6.25/bird $1.95/bird n/a Processing n/a $1.30–1.35/bird n/a n/a Transport n/a n/a $0.15/bird n/a Wholesale $15/bird $10.60/bird $2.40/bird $4.50/bird Retail n/a n/a n/a n/a Menu $8.99/kg $16.50/bird $18–22/bird (entrée) $17/bird (entrée) $28–29/bird (main) Note: Not all costs were available from the participants interviewed.

4.9 Legislation Licences are required for farming pheasant and quail in Western Australia, although there are no costs involved in obtaining this licence. Farming licences were not found to be required in the other states.

Processing of the birds must be carried out in a processing facility licensed by the relevant state authority. For further information see appendix 5.

4.10 Case study: duck

Producer/processor/wholesaler/distributor/marketer

Butchers Wholesalers Farmers’ markets Transporter

Interstate

Wholesaler

Figure 4.1: This example of duck meat distribution illustrates the use of multiple channels for movement of the meat from the producer to the market. These channels include deliveries directly to butchers and farmers’ markets, and the use of wholesalers to service interstate customers.

4.10.1 Overview This distribution chain was an interesting case study as it examined organic ducks. Global demand for organic products has been growing in recent years, and this case study will provide invaluable insights into the operations of an organic producer in the domestic game-bird industry.

Three members of this particular supply chain were interviewed. The first carries out a number of supply chain functions including the production, processing, wholesaling, distribution and marketing of organic ducks. The second is a road transporter and the third a retail butcher.

4.10.2 Producer/processor/wholesaler/distributor/marketer This participant in the distribution chain is a producer, processor, wholesaler, distributor and marketer of organic ducks, organic chickens and organic spatchcocks. The farm is located in south-east Queensland, employs ten people, and has approximately 7 000 birds on site at any one time.

The farm produces around 500 ducks per week. The ducks are free-range, with access to a shed for shelter. They are fed an organic feed formulation, and are grown to 8–10 weeks of age before they are processed.

Processing occurs 4 days a week. During processing the ducks are stunned, the necks are cut and the ducks are bled. Following bleeding the heads and the feet are removed. Next the ducks are sent through a plucker. Once plucked the birds are gutted, cleaned and chilled down to –1° to –2°C. Finally the ducks are packed and sent to the market. It was claimed that this facility is the only organically certified abattoir and kitchen in Australia for processing ducks.

The only product obtained from the ducks is the meat, which is supplied both as whole birds and as portions. The whole birds are graded from numbers 17 to 25 (1.7 – 2.5 kg). The portions produced include breasts and marylands.

In the last 3 years the participant has been increasing supply to the market, in response to a strong demand. At the time of interviewing it was identified that demand was reasonably steady, with local and interstate demand for the birds peaking at different times of the year.

The majority of the meat is supplied to gourmet restaurants. Other markets supplied include butchers, wholesalers both locally and interstate, and farmers’ markets. Export markets have been considered, but the current capacity is not sufficient to supply them adequately.

The typical wholesale price for a duck is approximately $14–15/bird.

The duck meat is transported to customers by road transport, with deliveries four to five times a week in south-east Queensland. Deliveries are made to southern interstate markets on Mondays, Wednesdays and Saturdays.

In south-east Queensland the duck meat is transported in a refrigerated truck operated by the producer. The truck has two refrigeration systems, which have the capacity to transport the birds at –10°C or at –20°C.

Interstate deliveries are undertaken by commercial refrigerated road transport. The producer delivers the meat to a depot in Gympie, from which it is transported to Sydney, Melbourne and Adelaide depots for customers to pick up. Road transport is used in preference to airfreight because it is more cost-effective and delivers the duck meat in better condition.

The shelf life of the duck meat is approximately 8–9 days in commercial refrigeration (equivalent to 5–6 days in home refrigeration) for the plastic-packaged birds, and 4–5 weeks (equivalent to 3–4 weeks in home refrigeration) for the cryovac-packed portions.

Safe Food Queensland has implemented quality assurance in both production and processing systems. A quality assurance (HACCP) plan ensures that coolroom temperatures for the duck meat are regularly monitored. Having these systems in place allows the participant to communicate to the market that the food is safe.

The abattoir and kitchen are also organically certified. It was advised that this certification takes 4–5 years to acquire.

Traceability systems implemented include labels on the bags containing the name of the processor, processor number, date packed, shelf life and Organic Biological Farmers of Australia accredited number.

4.10.3 Logistics The transporter is a major road transportation company. The company receives the ducks at a regional depot in Gympie.

The ducks are received in polystyrene sealed boxes with approximately five or six boxes in each delivery. The meat is then transported from Gympie to another depot in Brisbane, where it is reloaded onto a refrigerated semitrailer for transportation to Sydney for customers to pick up. The meat is transported at between 0° and 3°C. The semitrailer is licensed with the appropriate regulatory authorities.

The meat is transported in one day from Brisbane to Sydney, with a total transportation time of two days from receipt of the meat at the Gympie depot. There have been no problems associated with transportation of the meat. All boxes are sealed and have labels placed on them for delivery to the customers.

4.10.4 Retailer The retailer interviewed for this case study is a butcher operating a number of retail stores in suburban Brisbane, selling a variety of organic and chemical-free meats.

The butcher sells mainly whole ducks, but also portions of duck meat. Around 600 g of meat is obtained from a 2 kg carcass. Duck is considered quite a versatile meat and can be used in a number of dishes. The

butcher reported that a popular dish made with the whole bird is marmalade-glazed duck with a sage, onion and orange stuffing.

With fresh ducks available all year round, fresh product is all that this butcher sells. The level of demand for the meat depends on the area in which the store is located, reflecting customer demographics. The demand also increases in the holiday periods such as Christmas and Easter.

The butcher receives deliveries of duck meat three times a week. Ducks account for approximately 10% of the business’s total sales, with ducks typically used on the weekend or at dinner parties. A typical retail price for an organic duck is $8.99/kg.

4.11 Case study: pheasant

Producer/wholesaler Cold storage Bendigo Road transport - Sydney

Processor/transporter Poultry Interstate – air

processor/wholesaler/

Distributor

National distribution Distributor Melbourne Wholesaler Brisbane

Wholesaler Melbourne Restaurants/Butchers Restaurants/hotels Restaurants/hotels Retail outlet

Figure 4.2: The distribution system for pheasant meat is complex. Different wholesalers handle the birds at different levels of the chain.

4.11.1 Overview This large, well-established supply chain based in Victoria is an interesting case study for smaller producers to consider. From HACCP through to processing, packaging and distribution, this supply chain represents a good example of what can be achieved.

Six members of the supply chain were interviewed: the producer of the pheasants; the processor/transporter; the distributor in Victoria; two wholesalers located in Brisbane and Melbourne respectively; and a restaurant in Melbourne.

4.11.2 Producer The producer in northern Victoria breeds Mongolian ring neck pheasants; the farm also produces a small number of guinea fowl and partridge. The producer also acts as a wholesaler and sells some of the pheasant products directly to customers.

The weather in the region is conducive to breeding pheasants, particularly the ring neck, which is considered to be quite hardy. The pheasants are kept in a shed until they reach 6 weeks of age, and are then transferred into free-range pens. Vegetation is grown in the pens to shelter the birds from the elements. The birds are

grown to 16–20 weeks of age, then killed and processed. Breeding birds have a productive life of approximately 2 years before they too are processed.

Two products are obtained from pheasants: meat and feathers. The primary product is the meat, which is generally supplied as a whole bird with the head attached and the feet removed. Carcass sizes for the birds range from 800 g to 1 kg for hens and 1.2 kg to 1.5 kg for cocks. Approximately two-thirds of the birds are sold fresh, with the remainder frozen for supply in the off-season (September to February). Sausages are produced from second-year breeding birds or second birds. The feathers are used in fashion accessories and for fly-fishing, but the market for them is small.

Whole pheasants are individually shrink-wrapped. Vacuum packaging is not used, because the cavity of the bird prevents the air being extracted from the bag. Typically, 8–12 birds are packed into cardboard boxes, or into styrofoam boxes for airfreight.

The meat is supplied to a number of markets. In the Victorian market 50% of the pheasants are supplied to wholesalers, and the other 50% supplied directly to restaurants and butchers. A large game-bird producer/wholesaler also supplies pheasants under a contract packing arrangement with the producer, for distribution throughout Australia. Shipments of pheasants are delivered to wholesalers and restaurants in Sydney, wholesalers in Hobart and a wholesaler in Brisbane.

Supply is currently satisfying demand. However, the producer believes that potential exists to expand the market; as a result, double the number of pheasants could potentially be sold over the next 5 years. Only two competitors are believed to be producing pheasants in Australia, with one located in New South Wales and the other located in Victoria.

The wholesale price for pheasant is approximately $13/kg, and the retail price at a butcher approximately $16.00–16.50/kg.

Pheasants are delivered by road and air transport to customers, and by truck in plastic chicken crates to the processor. After processing, the birds are taken by refrigerated truck to a distributor in Melbourne, and to the depot of a road transport company for delivery to customers in Sydney. The distributor in Melbourne delivers the meat direct to customers and to the airport for the meat to be airfreighted to a Brisbane wholesaler. Birds are also picked up from the distributor in Melbourne by a large poultry processor/wholesaler/distributor who then distributes the pheasants from their own warehousing facilities nationally.

The producer undertakes all of the packaging at the processing facility, so that it can monitor and control the quality of the birds. Traceability information is printed on the product labels including the processor’s name, licensing number, date packed and whether it is to be stored as chilled or frozen meat.

4.11.3 Processor The processor is a boutique facility located in northern Victoria, aiming at the top end of the market. The facility processes other game birds as well.

In 2002, it was estimated by the processor that the number of pheasants processed at the facility was around 600 per week. The pheasants are contract processed, and supplied as whole birds to the market. The processing facility has an automated processing chain with the capacity to process approximately 700 birds an hour. Surplus birds are at times held at the facility; however, surplus pheasants can exceed cold-storage capacity. In such instances birds are transported to Bendigo for storage.

During processing the birds are hung by their feet on the processing line before being electrically stunned and their throats cut by hand to allow bleeding with the heads left attached to the bird. The birds are then passed through a scalding tank with the water set to 60°C. The water should not be too hot, as this causes damage to the birds during plucking; on the other hand, if the water is too cold the birds cannot be plucked properly.

After scalding the pheasants are passed through an automated plucker and then manually cleaned to remove any additional feathers left on them. The birds are then gutted and cleaned before being put into chiller tanks of ice water. When the muscle temperature reduces to approximately 4°C the birds are taken out and hung on racks for draining. They are then packaged into plastic bags and placed into boxes for transport to the market. Chilled pheasants are stored at below 5°C. The fresh meat has a shelf life of approximately 8 days. Excess birds are frozen to between –18° and –20°C.

Quality assurance is implemented through a HACCP plan for the facility and regulated by the Victorian Meat Authority. The abattoir is licensed with the Victorian Meat Authority. An external company contracted by the Victorian Meat Authority audits the abattoir every 6 months.

The processor transports the pheasant from the processing facility to the market and storage facilities. When pheasants are taken to the market they are delivered to two locations. One of these is a trucking company depot in Melbourne for delivery to Sydney. The depot checks the temperature of the meat on delivery and transports the fresh pheasants to Sydney. The second location is a Melbourne distributor for delivery to customers throughout Victoria. Again, if there is excess supply, some of the pheasants are delivered to a frozen storage facility in Bendigo. The processor reported that all the meat is transported in refrigerated trucks at a temperature range of 0–1°C.

4.11.4 Distributor The distributor is located in central Melbourne and distributes a wide variety of products to customers, ranging from game meat to pharmaceuticals.

The distributor receives pheasants weekly from the processor. They are then held briefly (typically overnight) in a coolroom with a 500-pallet capacity, before being consolidated with other orders and loaded into refrigerated road transport for delivery to customers in Victoria. The customers supplied with pheasant are mainly gourmet restaurants. The distributor collects payment for the birds on behalf of the producer.

The distributor operates a fleet of approximately 20 vehicles, mostly 1 tonne to 1.5 tonne transit vans. They make daily deliveries to customers in Melbourne in the vans with the temperature set at –4°C. All of the vans are licensed with the Victorian Meat Authority.

Individual contractors who come to Melbourne once or twice per week to pick up goods from Melbourne distribute the pheasants to regional restaurants and retailers.

Quality Assurance is implemented by a HACCP plan under the Victorian Meat Authority regulations. A quality assurance (HACCP) plan covers many areas, even down to the detail of by whom and when the facility was cleaned. The distributor is also audited by the Quality Assurance auditors of its customers, such as Woolworths.

4.11.5 Wholesalers Two wholesalers supplied with pheasants were contacted during the research. One is located in central Melbourne, and the other in central Brisbane. Both wholesalers handle a variety of other meats in addition to pheasants.

The first of the wholesalers in Melbourne indicated that there is demand for fresh pheasants throughout the year; however, due to the seasonal nature of production, supplies of fresh pheasant are available only for a limited period. The Brisbane wholesaler indicated that pheasants are supplied to customers on an infrequent basis, because demand is fairly low.

In Brisbane, both fresh and frozen pheasant meat is supplied to customers, whereas in Melbourne it is mostly the fresh meat that is supplied, with some frozen pheasants also supplied in the off-season. Fresh pheasant was indicated as the preference of chefs.

The wholesaler in Brisbane supplies pheasant meat exclusively to gourmet restaurants and four- to five-star hotels. This is because the price of the meat limits it to the higher end of the hospitality market. The Melbourne wholesaler mostly supplies gourmet restaurants and four- to five-star hotels, but there are also some sales to private customers through a retail outlet operated by the wholesaler.

Both wholesalers supply whole pheasants to their customers. The wholesaler in Melbourne also further processes pheasants into kiev fillets and legs for specific orders.

The wholesaler in Brisbane usually receives the pheasants in boxes of 12. It was indicated that products may at times be repackaged in blank cardboard boxes in situations where small orders are received, or in styrofoam boxes if there is a possibility of a breakdown in the cool chain during distribution of the meat to customers. Gel packs are packed in with the products consolidated in styrofoam boxes. Generally the styrofoam boxes are reused. The wholesaler in Melbourne supplies whole pheasants in vacuum packaging, and portions of pheasants on styrofoam trays.

The wholesalers implement Quality Assurance through a HACCP plan. The wholesaler in Brisbane ensures traceability through the name, address and abattoir details that appear on the packaging of the products they receive.

Both wholesalers delivered the pheasants to their customers in refrigerated trucks. These trucks were registered with the relevant licensing authority in each state, namely the Victorian Meat Authority and Safe Food Queensland.

4.11.6 Restaurant A restaurant featuring pheasants was identified in Melbourne for this research. This restaurant purchases only fresh whole pheasants, direct from the producer. The menu is seasonal, as the chef believes product tastes better when in season and the prices tend to be lower. Pheasant dishes return to the menu in April. The restaurant reports that the meat has good customer acceptability and competes well with established meats.

The pheasant meat is reported to be versatile and quite easy to prepare; it was likened to handling chicken. However, if the meat is overcooked it is inedible. The restaurant uses medium-sized birds and obtains two portions from one bird. Half a bird is served as a portion and each customer receives a thigh and a breast. Usually the leg is tough, so only the thigh is served in the dish, with the drumstick used in soup or stock, or for staff meals.

A pheasant dish sells for $26 in the restaurant. It was noted, however, that the price of the dish is not a reflection of the dish solely but also a reflection of the value of the whole dining experience including the service, waiters, location and ambience. A broad cross-section of customers dine at the restaurant, including food-lovers, business people and tourists.

Overall the restaurant is quite happy with the pheasants supplied, and prefers to work directly with producers so that any problems that arise with the meat can be resolved quickly.

4.12 Case study: quail

Producer/processor/distributor

Interstate Wholesalers

Wholesalers Restaurants/Butchers

Restaurants

Figure 4.3: The quail meat is distributed exclusively through wholesalers.

4.12.1 Overview This case study was selected to show how one company has built a national distribution network using a very short supply chain. The producer has built a national client base through a network of wholesalers who service the final customers, mainly restaurants.

Three members of the supply chain were interviewed. The first member carried out the production, processing and some distribution. The others were a wholesaler and a retailer further down the supply chain.

4.12.2 Producer/processor/distributor This participant is a producer, processor and distributor of quail located in Tasmania. The quail are supplied to customers across all states in Australia.

The participant produces approximately 350 000 quail per year. The quail are housed in large sheds and are grown to 4.5 weeks of age before they are processed. The processing procedure involves stunning, cutting the neck, bleeding and gutting.

The quail are produced solely for the meat. The quail meat products supplied to the market include whole carcasses with bone in or butterfly boned, as well as breast meat and drumstick portions. The majority of the meat is supplied to the market frozen.

All meat products are supplied in plastic vacuum packs. Four to six whole carcasses are placed on a tray and are vacuum packed to supply the market. The breasts and the drumsticks are vacuum packed in plastic bags. All product is delivered in pre-printed cartons, except for airfreight deliveries interstate, which are packed in polystyrene boxes with ice packs.

Demand for quail is seasonal, with peak demand coinciding with Christmas; however, supplies are available all year round. Supply levels are adequate for current levels of demand, but demand is likely to grow with the acquisition of new customers.

The quail meat is supplied solely to wholesalers, which are understood to sell it on to restaurants. Approximately 50% of production is supplied to customers in Tasmania, with the other 50% supplied to customers on the mainland.

The farm-gate price of a quail is typically $1.95 each, plus 20 cents for delivery and transport. The wholesale mark-up is anywhere between 25% and 40%. The retail price is believed to vary according to the type of establishment.

Two methods of transportation are used to deliver quail meat to customers. This producer operates its own refrigerated transport, which is used to deliver mostly frozen quail meat to customers in Tasmania. The meat is transported at –18°C. Deliveries interstate are undertaken by refrigerated road freight, also at –18°C, or by airfreight, in which case the meat is kept at between 0° and 4°C. The producer is believed to have no competitors in the Tasmanian market.

Quality assurance is implemented through a HACCP plan and is regulated by the Tasmanian Department of Primary Industries, Water and Environment. HACCP ensures a high level of quality control.

To ensure traceability, labels include the name of the processing facility, the date packed, ‘use by’ date and establishment number.

4.12.3 Wholesaler One of the wholesalers located in Brisbane is a major distributor of the producer’s quail in Queensland.

This wholesaler orders half a palette of boned-out quail per month to supply customers. This amounts to approximately 5 000 quail, each weighing around 100 g . All quail are supplied frozen, because there is insufficient demand to warrant fresh supply in Queensland.

Quails are sold mostly to restaurants and also to a small number of butchers in south-east Queensland. They are received on a tray, vacuum packed, and the meat is consolidated into the wholesaler’s cartons for delivery to customers. Butterfly-boned and bone-in quail as well as whole birds are supplied to customers, with butterfly quail the most popular product. The wholesale price for a medium to large quail is $2.40, and butterfly-boned quail sell for $2.80 each.

Quail meat is delivered by road in a refrigerated truck operated by the wholesaler. Deliveries to customers are conducted on an ‘as needs’ basis. Shelf life for frozen quail is approximately 12 months.

A quality assurance system operates, with a HACCP plan within export-accredited Australian Meat guidelines. The wholesaler, although not officially Australian Meat accredited, still maintains all operations to these guidelines and standards.

4.12.4 Restaurant Two gourmet restaurants were interviewed in the Brisbane central business district, both of which are supplied with quail by the wholesaler. Both restaurants indicated that frozen supply is readily available. The demand experienced by one of the restaurants is seasonal, with demand at its highest during the winter months. During summer the demand for seafood increases at the expense of quail.

The first of the restaurants usually sells quail dishes as an entrée, with the price ranging between $18 and $22 depending on the garnish. The second restaurant also typically serves quail as an entrée. There the price of a quail dish ranges between $16 and $18 depending on the garnish.

The second restaurant indicated that the demand for quail depends on how the dish is served, and on the selling skills of the staff. Both restaurants indicated that, overall, quail sells quite well and competes well against other dishes on the menu.

Both restaurants use frozen quail. One of them occasionally uses fresh quail sourced from New South Wales. Both restaurants reported that a broad cross-section of customers order quail dishes.

4.13 Case study: squab

Producer

Processor

Transporter Transporter

Cold storage Wholesaler

Interstate Butchers/restaurants Transporter Wholesaler

Interstate

Figure 4.4: Two primary channels are used for distribution of the squab. One channel primarily serves the Melbourne market and the second serves the interstate market.

4.13.1 Overview This case study is an interesting examination of how a squab supply chain is developing a niche market of primarily Asian restaurants and butchers throughout Australia. This supply chain also provides interesting insights into the distribution of the squab to two separate markets.

Six members of this supply chain were interviewed: the producer, processor, wholesaler, two restaurants and a delicatessen.

4.13.2 Producer The producer selected is located in northern Victoria and is an active participant in a local squab industry association. The property is dedicated to squab production.

The property has approximately 1 200 breeding pairs of pigeons, producing close to 300 squab per week. Production is seasonal, peaking in the summer months. The birds are housed in pens that hold approximately 32 pairs of pigeons. Pairs of breeding pigeons are financially viable for between 5 and 6 years. The pigeons have a total life expectancy of 10–12 years.

Figure 4.5: Squab ready to be processed

The pigeons are highly territorial and will attack the young of another breeding pair; this can lead to some fatalities. Young squab that have reached processing age but are damaged from attacks are sold as seconds for 90 cents each.

Squab are fed milk from their parents’ crops for the first week of their life. After the first week they are fed a squab feed mix by their parents until 28 days of age, by which time they are fully feathered and ready to be processed. The squab are processed at this age as they have not left the nest and are unable to fly. Flying develops the bird’s muscles and reduces the tenderness of the meat. The night before the squab are to be sent to the processing facility, they are gathered from the nest boxes and held in cages for purging (meaning they have access to fresh water only).

The meat is the only product obtained from the squab. In late 2001 the producer indicated that there was an oversupply of squab in the marketplace, which has resulted in a decline in the farm-gate prices. Demand is seasonal, increasing during the Christmas tourist season and the Chinese New Year. This increase in demand coincides with peak production. Squab is supplied to one wholesaler in Melbourne.

The farm-gate live weight prices for squab inclusive of processing costs are shown in table 4.10.

Table 4.10: Squab farm-gate prices Size of bird (g) Price ($/bird)* 550 6.50 500 6.30 450 5.80 400 4.95 350 3.85 300 2.60 soup bird (old breeding stock) 0.90 * Add $1.30 for processing costs

The squab are delivered to the abattoir using road transport. Squab are placed in cages and transported on a trailer to the processing facility. The birds are transported in the morning and reach the processor within an hour. Competition is evident in the industry, with a number of competing producer groups known in Victoria and Queensland.

Traceability is ensured by labelling the cages of the squab with the name of the producer for delivery to the processor.

4.13.3 Processor The processor slaughters a variety of game birds including ducks, pheasants, quail and squab. The abattoir is located in northern Victoria and employs 10 full-time staff. The squab are contract killed for various producers and supplied as whole birds.

The facility processes birds on Mondays, Tuesdays and Wednesdays. Approximately 4 000–5 000 squab are processed each week. The processing facility could increase production with the addition of more processing days and extra work shifts. The facility also has a storage capacity for up to 5 000 birds at any one time. An ice works is located only 15 minutes away for additional storage requirements.

The squab are killed, and the throats are cut to allowed to bleed. They are then scalded in water at a temperature of approximately 63–64°C. Each bird passes through a rotary plucker, then is gutted and the body cavity washed out. Next the birds pass through a tank for rinsing, and are chilled in ice water to reduce the temperature of the birds. After chilling they are held in a coolroom and spread out on plastic bread trays before packaging. Chilled squab are held at between 2° and 4°C and frozen squab are held at –18°C. The shelf life of chilled birds is approximately 5–7 days.

Squab are packaged individually in plastic bags with the head tucked under a wing and the legs tucked back into the cavity. The market also prefers a yellow-skinned bird, because when the bird is deep-fried it becomes golden in colour. This is particularly important to Asian customers. The bags are tied off with a plastic clip. Birds supplied fresh to the wholesaler are then packed into a cardboard box of 30–35 birds for shipment to the wholesaler in Melbourne. Birds supplied frozen are held in storage and packed into polystyrene boxes of 50 for delivery to customers in Sydney.

Fresh squab are delivered to Melbourne by a contract transporter on Tuesdays and Thursdays. Frozen squab are picked up on Thursdays by a refrigerated truck (on contract) and delivered to Shepparton. The squab are held in a freezer unit until Sunday, and then transported to Sydney by road.

Quality assurance is regulated by the Victorian Meat Authority and implemented through a HACCP system. SGS International audits the abattoir on behalf of the Victorian Meat Authority. The audit consists of checks on areas such as hygiene, maintenance, record keeping and temperature control. When the birds arrive at the abattoir, producers must place labels on their cages to meet quality assurance and traceability requirements.

4.13.4 Wholesaler The wholesaler in this supply chain supplies a wide variety of meat to the market, and is believed to be the largest supplier of squab in Melbourne.

Approximately 4 500 squab are supplied to customers each week. At the time of interviewing the market was reportedly oversupplied, due to a rapid increase in production. Supply and demand are seasonal, with demand at its greatest from September to March. Supply is estimated to drop by 50% for the three winter months. However, seasonality of production varies from state to state, with Queensland reported to have more consistent supply than other states.

It was indicated that 50% of the squab are sold to Asian restaurants and butchers, with the remaining 50% sold to wholesalers.

The squab are packaged individually in plastic bags and consolidated into cardboard boxes for delivery to customers. The boxes can hold up to 30–40 birds. They are supplied whole to customers and range in size from 300 g to 500 g. Wholesale prices range from $6.50 for a size 3 bird to $10 for a size 5.5 bird.

A number of methods of transportation are used to deliver the squab to customers. All Melbourne deliveries are undertaken in four refrigerated vans. Product sent interstate is transported by road, air or sea freight. The same road transporter is normally used for interstate deliveries to maintain a consistent and reliable service.

Quality assurance is regulated by a HACCP system that has been developed and implemented by the wholesaler. As part of the quality assurance system, all freezers are checked twice daily for temperature fluctuations; and SGS International checks all vehicles every 6 months on behalf of the Victorian Meat Authority. The facility is always open for inspection by any party.

The wholesaler reported that regulations require that game meats must be traced back to the processor. The licence number or the name of the premises should appear on the packaging of the meat. Additionally the boxes that consolidate product must have the number of the processing plant on it. If the wholesaler receives a complaint, all members of the chain are notified and the products are recalled. However, there have been no genuine complaints in the last 4 years.

The wholesaler voiced the opinion that, although the quality assurance system is effective in maintaining the quality of their own product, non-compliance to regulations by other members in the industry jeopardises the product quality and the reputation of the entire game-meat industry.

4.13.5 Restaurants/retailer Two restaurants and a delicatessen were interviewed in central Melbourne. The first of the restaurants was located in a hotel, while the second was a restaurant specialising in Chinese cuisine. The delicatessen was situated in a prominent food market.

The hotel restaurant advised that squab was only recently added to the menu at the time of the interview; hence they could not indicate the level of demand for it. The squab dish served at the restaurant was fried squab with bok choy and honey soy glaze.

The restaurant specialising in Chinese cuisine served a number of squab dishes, including barbecued squab, braised squab and mushrooms in a clay pot, and ‘drunken squab’ served cold (a typical Chinese entrée prepared with rice wine). Approximately 80–100 squab were sold per week. The squab dishes were believed to be more popular with Asian customers. The delicatessen advised that game birds sell well, and that squab was more popular with Asian customers.

Both the restaurant specialising in Chinese cuisine and the delicatessen indicated that there was a readily available supply of squab. The restaurant was supplied with chilled squab meat, while the delicatessen was supplied with both chilled and frozen meat.

The retail price of squab at the delicatessen was $6.99 each. The price of a squab dish at the restaurant specialising in Chinese cuisine ranged between $29 and $32 depending on the dish. The price of a squab dish at the hotel restaurant was $16.50.

4.14 Case study: wild pigeon

Producer

Wholesaler

Restaurants Butchers

Figure 4.6: The supply channel for wild pigeon is short, with only three levels in the chain.

4.14.1 Overview The wild pigeon industry is believed to be a small industry domestically, with very few established supply chains. This supply chain is of particular interest, as it provides an example of the distribution of wild pigeon across a vast distance – in this case from South Australia to Queensland.

Two members of this particular supply chain were interviewed: the wholesaler and a restaurant.

4.14.2 Producer One harvester of wild pigeon was identified during the research, but could not be contacted, despite numerous attempts. Thus no information is available on the harvesting or processing of wild pigeon.

4.14.3 Wholesaler The wholesaler is located in the inner suburbs of Brisbane and supplies a variety of meats and other food products, primarily to restaurants and butchers.

Supplies of wild pigeon are readily available. The meat is occasionally supplied fresh, but mainly in frozen form. It is believed that the wild pigeons are caught and harvested in large numbers at various times during the year. This explains why fresh meat is not always available.

Up to 2 000 birds can be sold in a year. The demand for wild pigeon is seasonal with demand at its peak during the winter months. Wild pigeons are sold to restaurants and butchers. The wild pigeon are packed in a plastic wrapped tray with two birds supplied per package. The wholesale price for a whole wild pigeon is approximately $4.50. Shelf life for the meat is approximately three days for fresh meat and six months for frozen meat.

Two methods of transportation are used to deliver the goods to the market. The wild pigeon meat is mainly received by airfreight; however, the meat is sometimes received by road. The wholesaler indicated that the size of the order determines how the meat is delivered.

The wholesaler delivers products in the Brisbane metropolitan region in refrigerated trucks operated by the wholesaler. The products are delivered below 5 degrees. Refrigerated couriers are used to deliver products to the Gold and Sunshine Coasts. The courier service cover a region ranging from Bundaberg to Byron Bay, and west to Toowoomba. This service accounts for most of the wholesaler’s customers.

The wholesaler is only licensed to distribute products that have been packaged by the supplier prior to receipt. Traceability is implemented from the details that appear on the packaging of each of the products that the wholesaler distributes. These include details such as the name and the address of the supplier and the abattoir details. The delivery trucks operated by the wholesaler are registered with Safe Food Queensland.

4.14.4 Restaurant A gourmet restaurant in Brisbane’s central business district that features wild pigeon on the menu was contacted.

The restaurant reported that supply of fresh wild pigeon is not consistently available and the quality of the meat varies. Wild pigeon is a very popular dish on the menu and demand is strong; all of the meat supplied is sold as quickly as it is obtained. The restaurant detects no seasonality in the demand for wild pigeon.

The wild pigeon served to customers is boned out and usually served as an entrée. The meat is generally cooked in a French style and can be served with figs or another exotic fruit. The typical price of a wild pigeon entree is $17, and $28–29 for a main meal. The higher price for the main meal reflects the fact that it is more labour-intensive to prepare.

4.15 Major issues

4.15.1 Industry A number of issues were identified, which were common to all the game birds investigated. Issues that were cited on more than one occasion as having an impact upon the industry included: • a comparison of game-bird prices by consumers to the price of chicken as a substitute; • the unwillingness of many consumers in the domestic market to try game birds, which have a unique flavour; • the need for promotion of game birds to create greater awareness of the meat.

Various industry members identified many other issues that they believe to have an adverse impact on the game-bird industry. These are outlined in table 4.11

Table 4.11: Issues with adverse impacts on the game-bird industry, 2002 Areas of concern Issues Transport and storage Restaurants’ coolroom temperatures too high. Production of game birds primarily located in southern states, making it difficult to supply fresh meat to Brisbane. More frequent deliveries of game birds needed to Sydney. Poor handling of meat by airfreight and the high cost associated with airfreight of game birds. Packaging Packaging improvements required, because shrink wrapping distorts the shape of the product. Production Lack of small-scale processing facilities to process game birds. Price Retail price of game-bird meat too low to make farming viable. Supply and demand Insufficient demand in Brisbane to warrant supply of fresh game birds. Product Tenderness and taste of the meat reduced by freezing. Regulatory Regulations prohibit supply of game birds ‘gut in’, which is preferred by some chefs.

4.15.2 Duck Interviews with representatives from the duck industry cited a wide variety of issues that in their view were having an adverse impact on the operation and development of the industry.

Marketing and profiling of duck meat was the most cited issue found in the research. On two instances it was suggested that more marketing and promotion of the meat was needed to increase awareness of the meat in the market. One of the participants suggested that this could be achieved through the development of recipe cards to be handed out to consumers.

Other issues reported by participants included: • the seasonal nature of demand for ducks and the instability of the market created from this situation; • inconsistent product quality; • unreliability of supply and inconvenient delivery times; • lack of supply of fresh products to Brisbane due to lower turnover and hotter weather conditions; • insufficient incentive for young people to enter farming.

4.15.3 Quail There were a number of issues reported from the quail sector, but five were most prominent: • a preference among restaurant customers for boned quails, because they are more convenient to eat. One participant suggested that consumers are weary of eating quail dishes where the quail is not boned out adequately; another suggested that customers thought that eating bone-in quail was ‘fiddly’; • a need for marketing and promotion of quail to increase the awareness of the meat and increase demand; • psychological reservations about eating quail, with some consumers considering them ‘too cute’ to eat; • limited availability and reliability of transport, inhibiting delivery of the meat to customers. In one case airfreight was indicated as being unreliable for delivering fresh products; • a suggestion by some participants that the supply of fresh quail could occasionally be low.

Various other issues cited by industry members in the research included: • a lack of producers supplying product direct to customers; • the possible need for larger breeds of quail to be developed for use in main dishes; • sometimes slow delivery of quail; • lack of awareness of quails to encourage consumers to purchase the meat from butchers; • packaging not protecting the meat adequately from frostbite; • difficulties associated with preparing the quail meat for restaurant serving.

4.15.4 Pheasant The major issue cited in the pheasant industry was the lack of supply of pheasants due to the seasonal nature of production. Some meat was available in the off-season in frozen form, but fresh meat was mostly preferred.

Various other issues cited by industry members included: • the lack of availability of suitable processing facilities that are willing to process small volumes of pheasants; • problems with supply of pheasants arising from hobby farmers haphazardly producing small volumes of pheasants; • entrepreneurs establishing large farms with no animal husbandry experience; • the need for promotion and marketing of pheasant to educate consumers about the meat. Pheasant currently has low exposure, is usually only available in gourmet restaurants, and lacks exposure to the wider market; • the high expense of the meat compared to other substitute game birds, which inhibits sales; • cost and access to transport for taking pheasants to the market; • small volumes of pheasants increasing costs of delivery; • restricted markets to primarily gourmet restaurants servicing customers of ethnic origins; • inconsistent demand resulting from constant changes to restaurants’ menus; • the requirement to eviscerate the pheasant, which suppresses the flavour of the meat. This makes the taste similar to that of chicken and encourages substitution of pheasant with chicken by consumers; • high cost of storage of pheasants in Melbourne; • the necessity to develop methods for year-round supply of fresh pheasant; • inflexibility of legislation, preventing smaller operations from processing pheasants effectively; • a perception that plumpness and quality of birds could be improved.

4.15.5 Squab The four issues most cited by squab industry members were: • supply of squab meat – feedback from a wholesaler indicated that supply of frozen squab is limited. This limits the possibility of further marketing of squab. Similarly, a restaurant indicated that fresh supply of squab was not available for 4 to 6 weeks of the year. These experiences directly conflict with the current experiences of another wholesaler and producer who indicated that there was an oversupply of squab; • high price of the meat, limiting market development for squab; • the need for marketing and promotion to profile the meat and increase public awareness of it; • lack of quality breeding stock in Australia.

Other issues identified from the feedback from various industry members include: • lack of distribution channels for squab to reach customers; • no value-adding in processing of the birds, which is restricting the development of markets; • influx of low-quality birds into the market; • inconsistent demand for the squab, and psychological barriers held by consumers in regard to eating the meat; • inconsistent quality in terms of flavour, texture and size; • scope to improve traceability.

4.15.6 Wild pigeon Two issues were raised for wild pigeon from the limited number of participants interviewed: • The first issue identified is continuity and consistency of supply of wild pigeon. Feedback from the food-service sector indicated that the quality of the meat is highly inconsistent. There is also a lack of supply of fresh wild pigeon meat, which means that it cannot be featured on the menu all year round. However, comments from a wholesaler indicted that frozen wild pigeon is readily available throughout the year.

• The second issue identified was that the packaging for wild pigeon could be improved with the use of cryovac packaging. The current plastic-wrapped tray is suitable only for food-service customers.

4.16 SWOT analysis: game birds

Species Strengths Weaknesses Opportunities Threats Duck Established market Occasional undersupply Potential to further Exotic epidemic of fresh duck meat penetrate ethnic disease markets (e.g. value- Traditional Chinese Typically higher price added products) Lack of growers dish; traditional than its primary European dish for competitor, chicken Promotion of duck special occasions meat to increase awareness and Established production encourage trial by Competition from techniques consumers other meats

Potential to increase production

Pheasant One of the few Seasonal nature of Development of Exotic epidemic traditional European production production disease game meats available techniques for year- round supply Potential future Limited number of introduction of Established niche experienced producers Cooperation stringent regulations markets for the meat between other High transport costs due game-bird industry Cheaper substitute Relatively small-scale to small volumes members. products producers, allowing quick response to Penetration of Transport access service the needs of the Lack of suitable additional retail difficulties market processing facilities for outlets (e.g. processing small supermarkets) Non-acceptance of Larger birds, providing volumes of pheasants the meat more meat than most Promotion of other game birds Low public awareness pheasant meat to the of meat market to increase Unique-tasting meat awareness and encourage trial by consumers

Quail Low unit cost – can be Low awareness of quail Promotion of quail Consumers have served whole as a meat meat to the market problems eating single serve. to increase unboned quail Difficulty for awareness and Appeals to gourmet consumers to eat encourage trial by Psychological market and ethnic unboned quail consumers barriers regarding markets consumption of Demand only from Supply additional quail: e.g. ‘Cute niche markets value added bird’ products e.g: marinated etc Lack of transport.

Potential to Exotic epidemic penetrate additional disease markets: e.g. airline catering

Strengths Weaknesses Opportunities Threats Squab Provides an alternative High price of the meat Research into Cheaper substitute meat limiting market further market products development development Established production Quarantine barriers techniques Lack of quality New breeding stock to source new stock breeding stock Established market for Development of Non-acceptance of whole birds Limited value-adding of value-added the meat the birds products Appeals to the Asian Exotic epidemic market Low awareness of the Promotion of the disease meat meat to penetrate other retail markets supermarkets

Wild pigeon Provides an alternative Continuity and Potential to Competition from meat consistency of supply penetrate additional substitute products for some sectors retail markets Appeal to the gourmet Disease market Potential to improve packaging

4.17 Future directions A range of opportunities was identified, along the supply chain for individual game bird species, where future research and development activities could improve profitability and efficiency. However, the issues common to all game-bird species mainly relate to the retail/food-service and consumer end of the chain, and require marketing solutions. The key issues include: • the need for promotion of game birds to create greater awareness of the meat • the tendency for game-bird prices to be compared to chicken prices • an unwillingness among consumers to try game-bird meat.

To encourage industry players to participate in industry programs that increase the awareness and consumption of game bird meat and to differentiate the meat from other competing products it is suggested that market research be undertaken within the food-service and retail sectors to determine the most effective marketing and promotional activities. These activities could include media releases, providing samples to consumers, producing flyer/recipe cards, advertising in print/radio/TV, menu promotions in restaurants and sponsoring events. The market research could indicate an effective marketing strategy for the industry.

Similarly, the game bird meat could be marketed through the foodservice sector to restaurants using a strategy which provides information to chefs on handling the meat, and on the cuts that would be best suited to particular cooking styles. A particular game-bird meat could also be promoted as a ‘special’ or ‘dish of the month’ at restaurants. Menu inserts could be given to restaurants, providing information to customers about origin, unique features and suggested wines to complement the flavour of the meat.

Additionally, game birds could be marketed directly through advertising in newspapers or food magazines. These advertisements could provide information regarding the qualities of the meat and its potential uses. The consumers could also be informed of the restaurants and butchers that are selling game birds.

These proposed marketing strategies could potentially provide a number of benefits to the game-bird industry, including differentiation and increased demand. Differentiation is likely to reduce the comparison, particularly with respect to price, of game-bird meat with other substitute products such as chicken. Another possible benefit of the proposed marketing strategy is increased demand, as the strategy is likely to raise awareness and stimulate trial. Provided the product’s quality is good, there is potential for increased sales of game-bird meat, which was cited as a problem by some in the industry.

5 Farmed rabbits

5.1 Industry overview In late 2001, four states in Australia were actively farming rabbits. These included Western Australia, New South Wales, Victoria and South Australia. Western Australia was the first state in recent years to legalise rabbit farming operations, passing the relevant legislation in 1987. New South Wales followed in 1995, Victoria in 1997, South Australia in 2000 and Tasmania, with the adoption of the Vermin Control Act, also in 2000.

By 1989–90 three abattoirs were processing rabbits in Western Australia. By 1991 the number of producers in the industry had grown to 30 licensed farms selling 30 000 rabbits per year. All three processing facilities had closed within 12 months, however, due to lack of interest in the market for the meat. In early 2001 there was one facility in WA processing rabbits one day per week and approximately three producers operating in the industry.

Since legalisation in 1997, registered rabbit producer numbers in Victoria peaked to approximately 100 by the middle of 2000. Similarly, licensed rabbit processing facilities peaked to approximately 12 across the state. The number of producers has declined in recent years due to higher processing costs. This reduction of producers also caused a lack of supply, which resulted in the decline of processing facilities in Victoria.

South Australia and Tasmania have only recently legalised rabbit farming, and in early 2002 South Australia had six active producers with the potential for further growth. In Tasmania the first batch of farmed rabbits was expected to be processed in early 2002, but in very small numbers.

In 2002 it was estimated that that there were 561 active rabbit producers in Australia, with the greatest concentration of producers located in New South Wales (table 5.1), followed by Victoria.. The predominant breed used for commercial production in Australia is the New Zealand white rabbit (CSIRO 2002).

Table 5.1: *Estimated number of producers and rabbits produced across Australia State *Estimated producer ** Estimated number of numbers rabbits/week New South Wales 500 n/a South Australia 6 40 Victoria 52 1 000 Western Australia 3 280 Total 561 n/a Source: NSW Department of Agriculture, Victorian Meat Authority, Department of Health WA, Primary Industries and Resources SA.. * These estimates were based on conversations with representatives of the relevant regulatory authority of rabbits in each state. ** These estimates were based on feedback from government representatives and industry members across Australia.

There were a total of 21 facilities that processed rabbits and other species, or which exclusively processed rabbits. The largest number of processing facilities were located in New South Wales. Five processing facilities were identified in Victoria, of which four were actively operating (table 5.2).

Table 5.2: Farmed rabbit processing facilities State Number of processors New South Wales 9 Victoria 5 South Australia 6 Western Australia 1 Total 21 Source: Victoria Meat Authority, Safefood NSW, Primary Industries and Resources, SA, Department of Health WA. * These figures were compiled from conversations and data provided by government representatives in the relevant government authorities of each state.

5.2 Products The primary product from rabbits is meat. In most instances this is supplied as a whole carcass with the feet, head and tail removed during processing. The average carcass weighs approximately 1.5 kg, but weight can range between 800 g and 1.8 kg. Other value-added meat products have also been developed for the market, including sausages and chipolatas.

Other secondary products include the blood to supply laboratories, skins for use in the production of hat products, heads and feet for use in worm farming, and old breeding stock used to supply zoos as feed for the animals. The offal has two uses. The liver is sold to the market through the same channels as the meat products. Offal is also used for the purpose of burley in the fishing industry. Feedback from the industry suggests that if an opportunity to develop a new product presents itself it will be explored.

Rabbit carcasses are typically packaged in either plastic bags or cryovac packaging. Bone guards are sometimes placed on the rabbit carcasses to prevent puncturing of the cryovac bags. The rabbit carcasses are then packed into cardboard boxes, which in some cases contain a plastic lining. In one case a polystyrene box was used for delivery of rabbits to customers. Boxes typically contain 10–12 carcasses.

5.3 Markets Rabbit meat is sold mainly to European-style butchers and restaurants. A small quantity of rabbit meat is also sold in meat and produce markets, and in supermarkets. Small quantities of meat are exported.

Limited interest in rabbit meat was found from resorts and hotels. A hotel that targets the tourism sector reported that in many cases families are the main customers, and they found that game meat did not appeal to these customers. Four luxury hotels, one located in Sydney and three located in Cairns, were interviewed. Rabbit was not featured on the menu at the hotel in Sydney because the chef’s experience led him to believed that the market had not acquired a taste for game meat. All three hotels in Cairns offered farmed rabbit, three of them featuring the meat on an à-la-carte menu, while the other featured the meat on a buffet.

Only small shipments of rabbit/hare were exported from Australia over the last three years. In 2000/01 only 121 kilograms of rabbit and hare were exported. It is unclear whether farmed rabbit or wild rabbit was exported. There were no exports of rabbit/hare in the two years prior to 1998/99.

Table 5.3: Exports of rabbit/hare products from Australia (kg) Category 1998/99 1999/2000 2000/2001 Meat and edible meat offal of rabbits or hares, fresh, 270 938 121 chilled or frozen Source: ABS trade data 2002

5.4 Price Indicative wholesale prices for rabbit meat appear in table 5.4. Value-added products were only found in Victoria.

Table 5.4: Indicative wholesale prices of rabbit products (kg) Product NSW Vic. Qld WA Whole carcass $8–11.50 $9.50–12 $9.50 $11.25 Sausages n/a $11–13.20 n/a n/a Chipolatas n/a $11–13.20 n/a n/a Livers n/a $6–7.20 n/a n/a Source: Wholesaler Interviews 2001

5.5 Logistics Two methods were identified as being used to transport rabbits to the abattoir for slaughter. Either the producers themselves deliver the rabbits to an abattoir or the rabbits are picked up from the producer’s property and transported to the abattoir by another member of the supply chain, typically a fellow producer or marketer of rabbits.

Delivery times from producer to processor ranges between 30 minutes and 2.5 hours. In one instance, however, the producer was also the processor and hence no transport was required at this stage.

All live rabbits are delivered by road. In a number of instances they were delivered in cages stacked on a purpose-built trailer towed behind a car. Plastic chicken pens were also used in some cases. It should be noted that feedback from the industry suggests that poor transport systems can lead to problems. Rabbits can perish from heat, overcrowding and draughts; hence precautions against these hazards should be taken during transportation.

After processing, rabbit meat is typically transported in a refrigerated truck or van to wholesalers or distributors, or directly to the retailer. In the case of deliveries to wholesalers or distributors, rabbit meat is usually consolidated with other products during transportation.

In situations where direct deliveries to retailers were identified, rabbit meat was consolidated with other products during transportation, but also were found to be transported in single shipments to supply the retail market as well. In one instance the wholesaler picked up the rabbits from the processing facility and distributed the meat to customers via the company’s own refrigerated road transport.

5.6 Value chain analysis The costs associated with distributing rabbit from the producer to the customer are outlined in table 5.8. These costs are to be used purely as a guide; they will vary according to the distance between members in the distribution chain and the volume of rabbits supplied.

Table 5.5: Typical costs and returns throughout the rabbit value chain* Section of value chain Cost/return Butchers retail price/kg $11.50 Wholesale price/kg $8.00 Cost of sales/rabbit $0.63 Processing cost/rabbit $1.50 Cost of production/rabbit $3.25 Source: Interviews 2001 * Not all costs associated with distributing rabbit meat were available from the participants interviewed. Data is from New South Wales and is based on a whole rabbit carcass.

5.7 Legislation The farming of rabbits is legal in all states in Australia except Queensland. Farming rabbits is relatively unregulated on the state level, with only Victoria requiring producers to be licensed for farming. Producers in all states are required to check with local councils and adhere to any regulations that apply.

In every state (except Queensland) the processing of farmed rabbits must be carried out in a registered abattoir in accordance with the Australian standard for the hygienic production of rabbit meat for human consumption.

5.8 Case study: farmed rabbits – New South Wales

Producer

Producer/processor/ wholesaler/ distributor/ marketer

Butchers Restaurant Wholesaler

Figure 5.1: This rabbit meat supply chain is relatively short, with the processor acting as the wholesaler and transporter, delivering most of the meat directly to the butchers.

5.8.1 Overview The supply chain selected for the case study had relatively few links between the producer and consumers. One of the members in the supply chain fulfilled multiple roles, and it was of particular interest to ascertain how these roles were all handled by the one entity.

5.8.2 Producer/processor/wholesaler/distributor/marketer This business is family owned and operated and located on a small property in New South Wales. It is a vertically integrated farmed rabbit operation and fulfils most of the functions of the supply chain, including production, processing, wholesaling, distribution and marketing.

The business maintains around 750 rabbits, 100 of which are breeding does. The rabbits are housed in purpose-built cages raised off the ground, in what is commonly called a dry-floor shed. This shed has a dirt floor onto which the rabbit waste falls. The soil beneath the cages contains worms, which decompose the rabbit waste.

The optimum temperature range to maintain rabbits is believed to be between 20° and 25°C. Temperatures above this level have adverse effects on the health of the rabbits. To maintain this temperature range, the shed housing the rabbits is ventilated with large evaporative coolers, and insulation has been installed in the roof.

Rabbits are weaned from the does at approximately 5 weeks of age and are usually slaughtered at 12 weeks of age. Rabbits grow most rapidly between 10 and 12 weeks, with the dressed weight of a rabbit typically increasing from 1.2 kg to 1.5 kg. After 12 weeks the growth of a rabbit tends to level off; 12 weeks is therefore the optimum slaughter age.

In addition to producing their own rabbits, this business sources rabbits from other farms. The rabbits are picked up at the farm gate and transported in cages on a trailer. The trailer has a shade cloth, which is dropped down over the cages. Approximately 400 rabbits can be transported in this fashion at any one time. The suppliers change on a regular basis depending on the supply of rabbits the farmers have on hand.

Figure 5.2: This trailer transports rabbits.

The producer has had a purpose-built rabbit abattoir constructed for killing rabbits. It was claimed that this was the only known abattoir of its kind operating in Australia. During its construction, Safe Food New South Wales was closely consulted to ensure that the design of the abattoir conforms to all regulations. Safe Food New South Wales is responsible for issuing the abattoir licence.

Processing occurs every second Saturday and three casual employees assist with the killing. The abattoir has four separate areas: killing room, skinning room, gutting and packaging room, and coolroom. Once the rabbits have been killed they are hung in the coolroom for a brief period of time before being packed in plastic tube bags. The rabbits are then stored on bread racks in the coolroom, as the racks allow greater air circulation helping to cool the rabbits more rapidly. The rabbits are then left to chill to 5°C or below, as stipulated by Safe Food New South Wales regulations. The cool room has a storage capacity of approximately 1 000 rabbits.

The rabbits are sold whole, and each processed carcass weighs approximately 1.5 kg. The skins are used as a by-product in the production of hats, but meat is the primary product.

The rabbits are packed individually in plastic tube bags and sealed with a tie. The rabbits are then consolidated into a box with a plastic liner for transportation to the market. The only suggested improvement is replacing the tube bags with cryovac plastic bags, which would extend the shelf life of the meat.

At the time of interviewing there was strong demand for farmed rabbits, which was greater than supply. Between 500 and 700 rabbits are killed each fortnight, but demand in Australia is believed to be in the order of 10 000 rabbits per week.

Due to the high demand for rabbits, the participant has been slaughtering rabbits at 10 weeks of age rather than the typical 12 weeks of age in an attempt to fill the shortfall in supply. Export inquiries have also been received.

Most rabbit meat is sold chilled, directly to butcher shops in Sydney. A small amount of product is also supplied direct to a wholesaler and a restaurant. The skins are dried for a period of approximately 2 weeks and supplied to a hat manufacturer.

The average wholesale price of farmed rabbit meat is $7.90/kg. The retail price is sold at an average of $10– 11/kg. Within New South Wales, the participant was aware of four other competitors in the marketplace.

Processing and transportation of the rabbits usually occurs fortnightly. Rabbits are usually killed every second Saturday and delivered to customers the following Tuesday. Transport of the rabbit meat is undertaken in a 1 tonne utility fitted with a refrigerated unit on the back. Safe Food New South Wales regulations stipulate that the meat be transported chilled at or below 5°C. If maintained at this temperature, the rabbit meat typically has a shelf life of approximately 7 days. Licensing of all cold storage vehicles is carried out by Safe Food New South Wales.

Quality assurance is implemented by the participant following all the Safe Food and HACCP procedures in the slaughter and distribution of the rabbits. The participant was happy with all of the regulations, as it was believed these were implemented for the protection of the industry.

Traceability was implemented through a number of measures regulated by Safe Food. The individual plastic bags must have the name and processing abattoir number displayed on them. The labels on the boxes into which the rabbits were consolidated for transportation display the name, address, phone number, date packed, price per kilo, net weight and total price.

5.8.3 Wholesaler One wholesaler was interviewed who services the Sydney market, with most of his customers for farmed rabbit located in the central Sydney area. The wholesaler supplies fine dining restaurants and upper food service customers with farmed rabbits and a variety of other meats.

Approximately 150–200 farmed rabbits are supplied to customers each week. The wholesaler uses two suppliers, each of which supplies half of the rabbits required.

The farmed rabbits are mostly supplied fresh to customers. If they have not been sold by the end of the week in which they were received, they are frozen. However, this rarely happens. The demand for farmed rabbits is reported to be constant throughout the year. The wholesale price for this wholesaler is $10.50–11.50/kg.

The farmed rabbits are on-sold to customers in the plastic bags in which they are received. They are consolidated into the wholesaler’s boxes for delivery to customers.

The wholesaler operates a fleet of nine 1 tonne refrigerated vans, which make deliveries to customers 6 days a week. Deliveries to customers are made on an ‘as needs’ basis. It was reported that all deliveries are made within a 20 km radius of the facility.

The wholesaler indicated that regulations stipulate game meat is to be held fresh at 4°C; however, all the meat was stored at temperatures well below that. Game meat products were reported to have a chilled shelf life of between 1 week and 1.5 weeks, with the exception of quail and ducks, which reportedly have a chilled shelf life of 5 days.

Traceability and quality assurance are implemented with each of the game meat products that the wholesaler stocks, with batch numbers and/or ‘date packed’ numbers on the individually packed products. All game meat is delivered in the wholesaler’s boxes, which display the wholesaler’s name, telephone number and address.

Apart from abiding by all Safe Food and HACCP regulations, quality assurance is further implemented through the employment of a full-time cleaner at the facility. Hygiene is of the utmost importance to the wholesaler, and employing the services of a full-time cleaner ensures hygiene is kept to the highest standards.

5.8.4 Retailer Two retail outlets were interviewed in the Sydney area. One of the outlets is a butcher, which specialises in providing goods to a highly ethnic market, while the other outlet is a delicatessen that offers a wide variety of delicatessen lines.

Demand in the Sydney market is exceeding the supply of farmed rabbit. The butcher reported that demand is high, with sales reaching 24 rabbits per week. These sales could be doubled if supplies were available. The butcher was concerned that the lack of supply could lead to customers losing interest in farmed rabbits.

There is a vast difference between the two retailers interviewed in the retail prices they charge for rabbit. The butcher charged $11/kg, whereas the delicatessen’s price was $30/kg.

Two packaging methods are used to supply farmed rabbits to the retailers. One method involves individually packing whole rabbits in a plastic bag, while the second method involves packing two whole rabbits in a single plastic bag.

5.9 Case study: farmed rabbits – Victoria

Producer

Processor Restaurants

Transporter Wholesalers

Interstate Interstate Wholesaler Private sale

Consolidators Airlines Restaurants Hotels Butchers

Figure 5.3: This supply chain for farmed rabbit meat is more complex.

5.9.1 Overview This supply chain is more complex than in the previous case study. Of particular interest was the diversity of markets supplied, including the food-service sector, retail, private sale and interstate markets.

5.9.2 Producer The producer is a cooperative and consists of seven rabbit producers operating in eastern Victoria. Most of the members of the cooperative are located within half an hour of the abattoir, with the furthest member located 2 hours away. The coordinator of the cooperative supplies approximately 40 rabbits per week to the cooperative’s production.

The coordinator operates a rabbit farm that stocks around 800 rabbits, and finds this region is ideally suited for rabbit farming, with low humidity and low temperatures. Keeping the facility clean is another important factor in maintaining the health of the stock.

The rabbits are housed in two sheds, in cages supported off the ground. The cages conform with Australian Standards for housing rabbits. The producer reported that an annual $80 licence is required to farm rabbits, which is issued by the Department of Natural Resources and Environment in Victoria.

Figure 5.4: Rabbit production cages

The first of the two sheds is of weatherboard, and is used to house rabbits over 4 weeks of age to grow to slaughter age. The second is a large aluminium shed used to house the breeding stock; it is approximately 6°C cooler than the growing shed.

The does are usually first mated at 16 weeks of age. The average litter of a rabbit is typically seven kittens, with the does generally having a productive life of 2 years. The does are held in community pens, each containing either mated or unmated does. Approximately 20–30 does are held in these pens at any time. One week before giving birth, the does are moved into individual cages. After giving birth, the doe and the litter are held in this cage for about 4 weeks, during which the kittens are weaned from the doe and placed into separate growing pens to grow up to slaughter age. The doe is then returned to the community pen.

Fifty kittens are produced from each breeding doe per year. When they have reached the slaughter age of 12 weeks, they are transported live to the abattoir to be killed.

At the time of interviewing, an experimental system for waste collection was being tested at the farm. This system comprises a hessian material suspended underneath the cages to gather the rabbit droppings, allowing the urine to pass through to the sawdust-covered floor. Each day the droppings collected on the hessian are swept into a bucket. This system is considered to be an extremely effective method for removing rabbit waste and keeping the sheds clean.

The largest costs associated with the production of rabbits are for feed and processing. Feed prices have risen substantially over recent times. At the time of interviewing, a 40 kg bag of rabbit pellet feed cost between $15 and $17. The cooperative is seeking to reduce these costs by partnering with a local mill to produce feed specifically for the cooperative and other local producers. Feed mechanisms from the chicken industry have also been explored for adaptation to rabbits.

All growers within the cooperative are open with information to help other growers not within the cooperative, and to encourage other people to enter the industry. In contrast, there have been instances where some local producers used underhand tactics to take markets from other producers.

The only product currently obtained from the rabbits is the meat, with whole rabbit carcasses supplied to customers. It is hoped that two other products might be developed in the future. These include: • the blood, for supplying to butchers for use in black pudding; • manure, to be developed as a fertiliser product. Rabbit droppings are claimed to be more effective than horse or cow manure.

When supplying rabbit meat to customers, the cooperative packages each rabbit individually in a freezer bag. The rabbits are then consolidated into plastic-lined cardboard boxes, which are securely strapped for transport and delivery to customers. Each box usually contains 10 rabbits.

Demand for the rabbit meat is extremely high. The cooperative produces approximately 70 rabbits per week, and plans to expand production to meet the high levels of demand. All rabbits produced by the cooperative are readily sold into the market, and current levels of production are insufficient to fill the demand. The coordinator said his sources indicated that demand for rabbits in Melbourne is believed to be 5 000 rabbits per week.

Most of the rabbit meat is supplied to a wholesaler in the Melbourne region. A number of other customers are also supplied occasionally. These customers include restaurants and smaller wholesalers in Victoria, and a few customers interstate. The wholesale price for farmed rabbit is a minimum of $7.20/kg. The average retail price for rabbit meat is approximately $12–13 per kg.

Processing of the rabbits occurs on a weekly basis, with the rabbits sent to the abattoir on Tuesday of each week. The rabbits are then shipped out to customers the following day and transported in a transit van. The cooperative bears the cost of the freight when delivering the meat to the wholesaler in the Melbourne region. All other customers bear the cost of the freight themselves.

Traceability is implemented through processing rabbits in batches, in order of the grower’s deliveries. This allows each producer’s rabbits to be identified at the time of packaging and determines the boxes in which each producer’s rabbits have been packed, the weight of the rabbits and the location from which the rabbits have been delivered.

5.9.3 Processor The abattoir is located in eastern Victoria and carries out all of the processing and packaging functions for the cooperative. The abattoir also processes other small livestock. The abattoir has been working with the cooperative for approximately 2 years and a close relationship has been developed.

Each rabbit is contract killed and packaged by the abattoir for the cooperative. The cost of killing is $2 per rabbit and the cost of packaging 20 cents per rabbit. The rabbits are processed and supplied as whole carcasses. Occasionally there are inquiries regarding the origin of the rabbits, and the abattoir provides contact details for the cooperative.

The number of rabbits processed at the abattoir ranges from 65 to 100 per week. The abattoir is required to have a licence for all species slaughtered, including rabbits. The licences are issued by the Victorian Meat Authority (VMA), which publishes a booklet outlining the regulations regarding the slaughter of rabbits (refer to appendix 6 for contact details for the VMA). When an abattoir applies for a licence the slaughtering process is audited by a private enterprise on behalf of the VMA before the licence is issued.

During processing, regulations stipulate that the rabbits must not touch each other on the slaughter line or during packaging. This is to prevent any cross-contamination during processing. Additionally, after processing, the muscle temperature of the rabbits must reach 5°C within 2 hours.

After the rabbits have been processed they are each individually wrapped in a plastic bag and packed 10 to a box, with a plastic liner inside the box. The shelf life of rabbit meat is reported to be 4–5 days. At the time of interviewing, cold storage was not an issue for the processor because only low volumes of rabbits are slaughtered. The cold-storage capacity of the facility is 300–400 rabbits, and the freezer capacity is 4–5 tonnes. The processing capacity of the abattoir is limited to the size of the cold-storage capacity.

Quality assurance by the abattoir is implemented by a HACCP plan, which is audited by a private enterprise on behalf of the VMA. The abattoir also requires a member of the cooperative to be present when the rabbits are packaged. This is to ensure the cooperative is satisfied that no hair has been accidentally left on the rabbits. As part of the licensing requirements for the abattoir, the VMA requires the presence of a full-time meat inspector during the slaughtering process.

In addition to the abattoir’s quality assurance system, the traceability system used (as required by the VMA) requires the carcasses to be stamped by the abattoir. Additionally each box is labelled, identifying the

abattoir as the responsible party for packing the meat. The date of packing and weight also appear on the label.

5.9.4 Logistics The rabbits are transported on behalf of the cooperative by one of its members who operates a refrigerated van for a transport company.

The meat is transported chilled in a large transit refrigerated van with a capacity of 1.8 tonnes. All refrigerated transport must be licensed with the VMA, who set transportation guidelines for products. The guidelines specify that the meat is to be transported at or below 5°C. It was reported, however, that the meat is transported between 0° and 2°C.

The processed rabbits are initially transported from the abattoir to Sale. They are then transferred to another truck and delivered to the Melbourne depot for redistribution to customers across Victoria. For interstate deliveries another refrigerated transport company is organised by the cooperative to deliver the rabbits. All interstate deliveries are supplied frozen and are transported at –18°C.

There have been no problems experienced with the packaging of the meat during transportation, as the cardboard boxes are strong, and strapped to prevent damage even after multiple transfers.

5.9.5 Wholesaler The wholesaler distributes rabbit meat mainly to Melbourne and the surrounding areas. As well as farmed rabbits, the wholesaler sells a wide variety of other game meats including crocodile, emu and game birds.

Game meat is supplied to regional areas surrounding Melbourne; this accounts for 30–40% of the game meat sold. The remaining 60% of the game meat is supplied to customers in Melbourne, interstate and in overseas markets.

The wholesaler supplies game meat to a variety of customers. Approximately 40% of the game meat is sold to the retail market including restaurants, hotels and butchers. A further 40% is sold to other wholesalers and the remaining 20% of game meat sales are to interstate customers, airline catering, private sales and consolidators for the export market.

Shipments to export markets are usually sample shipments of 10 kg. Shipments of this size and smaller were reported not to warrant the documentation normally needed for the export of larger quantities of meat and are considered relatively easy to export to the destination country. The rabbit meat is exported frozen, mainly to Hong Kong.

Approximately 150 rabbits are supplied per week to the wholesaler’s customers, and the wholesaler at the time of interview was able to supply this growing market. Rabbit meat is seasonal in supply, with supply at its peak in the summer months. During this period rabbits are frozen so that there will be supply on hand when demand increases during the winter months. Rabbit meat is sourced from outlying areas of Melbourne, eastern Victoria and New South Wales. The rabbits supplied from New South Wales are frozen.

The wholesale price for whole rabbits ranges from $10.90/kg to $13.50/kg, with livers selling for $7.50/kg. The retail price for whole rabbits ranges from $12.50 to $14.50 per kg. The wholesaler has close contact with all suppliers and customers, preferring to deal with them in person to provide feedback and to nurture the relationship. Contact is made with most members in the chain at least on a weekly basis.

The rabbit meat is received by the wholesaler whole in plastic bags. Once the rabbit carcasses are received, they are repacked into cryovac bags, usually two per bag. Before the carcasses are repacked into cryovac bags, bone guards are placed over sharp bone edges to prevent the bags from puncturing. This step is taken to extend the shelf life of the meat, and two rabbits re packed per bag to reduce cost. The rabbits are then consolidated into a plastic-lined cardboard box for delivery to customers. The plastic lining prevents any

seepage, should the cryovac bags be punctured, and improves the presentation of the rabbits. Eight rabbits are usually packed in one box.

The wholesaler indicated a preference for cryovac packaging for all game meat, and actively encourages all suppliers to use it. The shelf life of cryovac packaged rabbit meat is 4 weeks, and frozen cryovac rabbit meat was reported to have an indefinite shelf life.

The primary rabbit meat product supplied by the wholesaler is the whole carcass. The carcasses are mainly supplied chilled to the domestic market and frozen to export markets. Other farmed rabbit products sold by the wholesaler include rabbit livers for possible use in liver pâtés.

The wholesaler has a chilled storage capacity of half a tonne and frozen storage capacity of 20 tonnes. They store a small amount of chilled product, with the majority of chilled meat being stored at a warehouse in Melbourne. Frozen storage is supplied by two warehouses in Melbourne, each with a frozen storage capacity of 10 tonnes. Frozen storage costs $7.50 per palette per week. It was reported that chilled storage capacity did not need to be as large as frozen storage capacity, because fresh meat has a faster turnover.

It was reported that regulations stipulate that chilled rabbit meat is to be stored at 5°C or below and frozen rabbit meat at or below –18°C. The wholesaler stores chilled rabbit meat between 0°C and 1°C and frozen rabbit meat at –18°C.

The wholesaler adheres to all of the regulations stipulated by VMA for transportation and distribution of game meat. All game meat is transported in a 1 tonne refrigerated van, which can be chilled down to –10°C. The van is licensed with VMA to transport the meat and is issued with an annual licence at a cost of $80.00.

Deliveries to customers are undertaken 4–5 days per week. However, if the customer is desperate for supply and has good rapport with the wholesaler a delivery will be made on the weekend.

Traceability of the goods is implemented through the consignment document that accompanies each delivery from the supplier of the meat. This document contains information regarding who the delivery was from and where the supplier is located. The wholesaler is identified on a label on each box of rabbits, which includes address and telephone number, the product within the box and the establishment number.

The wholesaler adheres to all necessary quality assurance systems stipulated by VMA regulations. In addition, the wholesaler checks deliveries of chilled meat that are received, and if the meat’s temperature is over 5°C it is rejected.

5.9.6 Restaurants/caterer Two restaurants and a caterer located north of Melbourne use farmed rabbit. The restaurants are fine dining restaurants offering à-la-carte menus. The caterer serves game meat at functions.

Each of the three establishments features rabbit on the menu. One of the restaurants featuring rabbit meat reported that it was the second-highest selling dish on the menu at the time of interviewing. Table 5.6 lists sales for the week as follows:

Table 5.6: Weekly rabbit sales in a restaurant north of Melbourne Dish Number of dishes sold Percentage of sales Beef 99 27 Rabbit 72 20 Fish 60 16 Salmon 45 12 Chicken 34 9 Venison 28 8 Lamb 27 8 Total/week 365 100 Source: Interviews 2002

One of the restaurants reported that a broad spectrum of consumers are eating game meat, with their clientele including both tourists and locals. The second restaurant advised that the demand for game meat has been increasing in recent times, with 70% of customers willing to eat it.

All three establishments receive the rabbit meat as whole chilled carcasses. One restaurant reported that frozen rabbits is of poorer quality than chilled, with the meat losing moisture due to the freezing process. One of the chefs said the meat has a mild flavour, and believes that crayfish is a food that complements the meat well.

Both restaurants reported getting two serves from the one rabbit. The caterer, however, obtains six serves from the rabbit, including the legs, shoulders and saddle. Rabbit was reported to be a versatile meat that could be used in a number of dishes. These include baked marinated rabbit meat and rabbit loins rolled into prichettos.

5.10 Major issues The participants interviewed reported many issues that are having an impact on the operation and development of the rabbit industry. The issues listed below were cited by several interviewees and are considered critical to the future development of the industry.

5.10.1 Supply People representing a number of links in the supply chain reported that current supply did not meet demand. This view was shared by producers, processors, wholesalers and retailers alike, across several states, and was found to be the most dominant issue affecting further development of the industry.

A variety of factors were reported to be contributing to the lack of supply. These factors included: • the seasonal nature of rabbit production, which impedes the ability to supply the market in the peak demand period. Typically rabbit production peaks in the summer months, whereas demand is at its highest in winter. In many cases rabbits are frozen over summer in an attempt to satisfy demand in winter; • lack of centralisation of production. A wide geographical spread of small producers is inhibiting benefits that could be obtained from economies of scale associated with producing, processing and transporting large numbers of rabbits.

Some interviewees reported that the lack of centralised production is due to a high turnover of hobby producers in the industry, producing small quantities of rabbits. Additionally, in many situations it was believed that producers lack the knowledge and skills to farm and transport rabbits efficiently and effectively. This lack of expertise is having a direct impact on the supply of rabbits available for consumption.

5.10.2 Cost and quality of feed Many producers cited the variable cost and the quality of rabbit feed as a factor impeding the ability of producers to produce rabbits cost-effectively.

Rabbit feed is similar to chicken pellets and available from a number of suppliers. It is generally supplied to producers in 40 kg bags. Reportedly, the price of rabbit feed has recently risen significantly. In one instance, feed prices had increased from $15 a bag to $40 a bag in 12 months. The feed can also be purchased by the tonne at a discounted rate, and some producers indicated that they were exploring this option.

Some producers were switching feed suppliers, not only because of the recent price increases but also because of the quality of the feed. Some producers suggested that some feed varieties were either not suitable for the health of the rabbits or did not contain the nutrition needed for the required growth rates sought for intensive production.

5.10.3 Logistics Many producers are located long distances from abattoirs and/or the markets for rabbits. Transporting rabbits long distances leads to difficulties and extra costs involved in securing transport and is considered an impediment to the development of the industry. For example, one producer reported being unable to supply a particular market due to the lack of available transport.

5.10.4 Marketing and promotion Although there is currently a lack of available supply, feedback indicated that marketing and promotion of rabbit meat is needed to further develop the market. It is hoped that marketing and promotion activities will increase the awareness of rabbit meat and its health benefits compared to other more traditional meats.

5.10.5 Consumer attitudes and perceptions Consumers’ perceptions of rabbits and the meat are hindering potential demand. Some consumers are reportedly of the opinion that rabbit meat is inferior in quality to other meat, while other consumers think rabbits are ‘too cute’ to eat.

5.10.6 State regulatory requirements Feedback from a number of participants in Victoria indicated that the licensing and processing requirements added significantly to the cost of supplying farmed rabbit meat to the market.

Victoria is the only state that requires a licence for farming rabbits. The licence is issued annually by the Department of Natural Resources and Environment which stated at a cost of $88. Victoria also requires a meat inspector to be present during processing, which adds further expense to processing rabbits. Many of the participants believe these regulatory requirements are impractical, and unnecessarily add extra cost to supplying rabbit meat to the market.

Appendix 6 gives an overview of the regulations for rabbit farming in each state.

5.11 SWOT analysis: farmed rabbits

Strengths Weaknesses Opportunities Threats Established Seasonality of Improvement of Disease (e.g. domestic market for production and demand production systems to myxomatosis and meat with strong provide consistent calicivirus) demand Entry of producers in year-round supply industry with little Production and Low set-up costs knowledge of rabbit Establishment of a processing regulatory for producers farming national training requirements program and provision Supply channels Inability to maintain of information for Cost and quality of feed. already established continuity of supply to producers to supply rabbits to meet current demand Geographic the market Further development of fragmentation between Lack of marketing and collaborative supply- supply-chain members, Suitable packaging promotion of the meat to chain partnerships at all leading to logistics for the current the general public levels of the supply difficulties market chain requirements Limited value -added Psychological products available Establishment of an reservations about eating Popular alternative industry forum for the rabbit meat meat with development of ( e.g. too ‘cute’, or restaurants and industry-wide inferior quality) butchers marketing and promotion program to Market resistance to educate consumers unfamiliar product about rabbit meat and to encourage trial

Development of new value-added products to penetrate new markets in all states (e.g. roasts, loins, marinated cuts)

Possibly other opportunities for development of markets for by- products (e.g. rabbit blood).

5.12 Future directions The research revealed a number of supply-related and industry-wide issues that were having an impact on the function of the distribution chain and the development of the industry. Most of these issues relate to the production end of the chain.

Feedback from the industry indicated that at the production end of the chain many of the producers lack the skills to farm and transport rabbits effectively. This situation is likely to be attributed to the highly fragmented nature of the industry and the large number of hobby producers supplying only small numbers of rabbits to the market.

All producers interviewed indicated that they had developed production systems through their own experiences of ‘trial and error’. It is proposed that educational resources be developed for producers entering or currently operating in the industry, to assist them in establishing and operating a rabbit farming facility. These educational resources could include the following:

• A website, such as the CSIRO Crusader website, could be further developed as the premier information resource on rabbit farming. All relevant government departments, research agencies and industry groups could publish information on aspects of rabbit production, distribution and marketing. This website could also provide opportunities for industry members to interact with each other through discussion boards/chat rooms etc.

• Although some publications already exist for purchase, it is proposed that a written manual or other publication could be produced and made available at no cost to industry members, containing detailed and practical information for establishing and operating a rabbit-farming facility. Information covered by this publication could include production techniques, methods of transporting live rabbits, and marketing rabbit products

• Rabbit-farming courses could be made available to interested parties at TAFE or similar colleges.

• There have recently been seminars and field days conducted featuring presentations by both domestic and international speakers. Continuation of such seminars and field days, held in various states, could greatly assist further development of the domestic industry. They could disseminate knowledge not only in regard to production, but also in other important areas of the supply chain including distribution and marketing.

The availability of such educational resources is likely to enable producers to enhance their skills and knowledge in the production, distribution and marketing of rabbits. Supply is currently well below levels of demand nationwide, and these educational resources could reasonably be expected to assist in increasing the production of rabbits by current producers. These resources could also be expected to encourage new producers into the industry and increase the supply of rabbits produced domestically to the much higher levels required by the market.

The cost and quality of pellet feed was indicated as a factor that was having a significant impact on the production of rabbits. Producers had been switching feed suppliers due to the high cost from some suppliers and/or because the feed did not contain sufficient levels of nutrients to give the growth rates sought for intensive production.

It is proposed that future research be conducted on developing a low-cost feed mixture that contains the optimum levels of nutrition to attain the growth rates required by producers. This research might be undertaken in the form of a partnership between feed manufacturers and industry members, or in the form of specific scientific research by a government authority such as CSIRO. The research might also look at the effectiveness of various mechanisms for delivering nutrients to rabbits (e.g. liquids v. solids and pellets v. fresh crops).

Some rabbit producers transport live rabbits to abattoirs in purpose-built trailers stacked with holding cages. Although this system was reported to be effective, there may be opportunities for producers to collaborate with livestock transporters in more established meat industries (cattle, sheep, pork) to develop more efficient and cost-effective transportation and handling systems for rabbits.

Despite the lack of supply to meet the current market demand for rabbit meat, some industry members suggested that further marketing and promotion be undertaken. As for game birds, it is proposed that market research be undertaken to determine the most effective promotional activities to increase awareness and educate consumers on the attributes of the meat. Effective future marketing and promotional activities may also reduce the reservations that consumers hold towards eating rabbit meat and may assist in penetrating future markets, such as supermarkets.

Additionally, it is suggested that industry members at all levels of the supply chain, from producers through to wholesalers, actively seek participation in collaborative arrangements such as cooperatives and/or supply chain alliances. Likely benefits of participation in such arrangements include increased production efficiency as a result of sharing production knowledge, and cost savings from bulk purchases of feed and equipment. The cost of processing, packaging and transporting rabbits to the market could also potentially be reduced through increased volumes produced as a result of collaborative arrangements and the associated economies of scale. Furthermore, such arrangements may stimulate improvements in product quality, through members of the supply chain collaborating to tailor their production and distribution practices more closely to the needs of consumers. For example, the wholesaler’s knowledge of current market demands might indicate a need for more frequent deliveries, to supply meat to the market that was fresher and therefore had a competitive advantage. This knowledge, passed on to the producer, processor and transporter back up the supply chain, might stimulate reorganisation of production, processing and transportation to allow for more frequent deliveries of a higher-quality product.

A number of collaborative arrangements were found to exist between producers, as well as between producing groups and processors. However, the wide geographic dispersion of supply chain members in the industry is seen as a potential barrier to the creation and coordination of an industry-wide collaborative arrangements such as cooperatives and/or supply chain alliances.

6 Wild rabbits and hares

6.1 Industry overview Three states in Australia are actively harvesting and processing wild rabbits and hares: New South Wales, Victoria and Tasmania. Wild rabbits and hares are harvested in the same shooting sessions, with wild rabbits vastly outnumbering hares.

Prior to the introduction of diseases, there was significant harvesting and processing of wild rabbits. Myxomatosis was introduced in 1950 in an attempt to curb the environmental impact of wild rabbit populations. This disease had a major impact on the supply of wild rabbits available for harvest and hence brought about a decline in the industry. The introduction of calicivirus in 1996 further contributed to the reduction of the wild rabbit population available for harvest (Environment Australia 2002; Department of Agriculture WA 2002).

In particular, the effect of the introduction of calicivirus in Australia is evident in the export figures. For the 1995/96 financial year, 21 154 kg of meat and edible meat offal were exported from Australia, but by 2000/01 exports had declined to 121 kg (Australian Bureau of Statistics 2002). It is uncertain whether wild or farmed rabbits was exported.

Table 6.1: Exports of rabbit/hare products from Australia (kilograms) Category 1998/99 1999/2000 2000/2001 Meat and edible meat offal of rabbits or hares, fresh, 270 938 121 chilled or frozen Source: ABS trade data 2002

Currently, wild rabbits and hares are both distributed through the same supply chain, with the final destination being mainly butchers and restaurants.

Table 6.2 shows the distribution of processing facilities across Australia capable of processing wild rabbits and hares for human consumption for the domestic market of which NSW has the majority.

Table 6.2: Wild rabbit and hare processing facilities State Estimated number of processors New South Wales 10 Victoria 2 Tasmania 1 Total 13 Source: Safefood NSW, Victorian Meat Authority, Department of Primary Industries water and environment Tasmania.

Of the 10 processors in New South Wales, six are licensed specifically to process wild rabbits and hares. The remaining four facilities are licensed to process wild rabbits as well as other livestock such as poultry. Both processors in Victoria are dedicated processing facilities for wild rabbits and hares, as is the one based in Tasmania.

6.2 Markets Feedback from a number of industry representatives indicates that the primary market for wild rabbit and hare meat consists of butchers and restaurants. Hares are mostly supplied to restaurants, some of which target European customers. Wild rabbits are mainly supplied to butchers, and to lesser extent restaurants.

Other markets where hare and wild rabbit meat are featured include wet markets and, with hares in particular, a TAFE college training restaurant. It was indicated that demand is seasonal for wild rabbit and hare, with peak demand in the winter months. There were also small amounts of rabbit/hare products exported to overseas markets.

6.3 Products Hares are larger animals than wild rabbits. The meat was reported to be darker in appearance and is an acquired taste. Wild rabbits and hares provide two products. The primary product is meat for human consumption and the skins are a by-product. The meat of both is typically sold as a whole carcass with the head and feet removed. Carcass sizes range between 500 g and 1.2 kg for wild rabbits and between 1.5 kg and 2.5 kg for hares. Other value-added wild rabbit meat products are supplied to the market, including portions such as fillets and trim for use in pies and sausages. The skins are supplied to a hat manufacturer.

6.4 Price Wholesale prices for wild rabbit range from $3 to $6.50 per carcass and for hares from $10 to $18 (table 6.3).

Table 6.3: Wild rabbit and hare wholesale prices, 2001 Category NSW Vic. Qld Whole wild rabbit carcass $3–6.50 each $4–6 each n/a Whole hare carcass $10–18 each $9.40–$15 each $16.90 each Source: Interviews 2001

6.5 Products/packaging Various forms of packaging are used to supply wild rabbits and hares to the market. Wild rabbits are either wrapped individually in plastic bags or bulk packed in plastic-lined cardboard boxes for delivery. Three forms of packaging were identified as being used for wild hare carcasses. These included vacuum packing, packing them in plastic bags, or bulk packing the carcasses in plastic-lined cardboard boxes. In one instance, bone guards (linings applied to sharp bones to prevent them from puncturing the plastic) were reported to be placed on hare carcasses before vacuum packing.

6.6 Logistics Wild rabbit and hare meat are transported by road to a processor after harvesting. They are either transported directly to the processor, or taken to a fixed or a mobile truck-mounted chiller unit if the harvesting area is located a long distance from the processor. The chiller units allow the shooters to store rabbits and hares until sufficient numbers are available for delivery to the processor.

After processing, the meat is transported by refrigerated road transport, either directly to restaurants and butchers or to wholesalers. Deliveries made by wholesalers are also by refrigerated road transport.

6.7 Value chain analysis Table 6.4 illustrates the typical costs associated with distributing whole wild rabbit and hare carcasses.

Table 6.4: Costs and returns through the value chain of wild rabbits and hares (New South Wales)

Section of value chain Cost/return Wild rabbits* Hares* Restaurant dish price $28–$30 $45 Wholesale price (each) $5 $10–$11 Storage cost (each) $0.20–$0.25 $0.20–$0.25 Transport cost (each) $0.50 $1 Cost of harvesting (each) $3.50 $5 Note: The costs are a guide only. They will vary with the distance between members in the supply chain and the volumes of wild rabbits and hares supplied. • Not all costs associated with distributing rabbit and hare meat were available from the participants interviewed.

6.8 Legislation In New South Wales, Victoria and Tasmania, where wild rabbits and hares are harvested, no permits are required by shooters. Appendix 7 lists processing requirements and contact details of the relevant regulatory bodies in these states.

6.9 Case Study: wild rabbits and hares – New South Wales

Harvesters

Harvester/processor/ distributor

Wholesaler

Restaurants Butchers

Figure 6.1: Supply chain for wild rabbits and hares

6.9.1 Overview A supply chain in New South Wales was selected because this state accounted for the largest number of processing facilities established in the industry. Additionally, it was of particular interest that the processor fulfilled multiple functions in the supply chain(figure 6.1). It should be noted however that the restaurant and butcher interviewed were not regarded to be part of the same supply chain.

6.9.2 Harvester/processor/distributor This participant in the supply chain is an owner/operator of a wild rabbit and hare processing facility in western New South Wales. The operation fulfils a number of functions in the supply chain, including harvesting and distributing wild rabbits and hares as well as processing them.

Wild rabbits and hares are harvested by the participant and purchased from other professional shooters. The animals are shot at night under spotlights from a vehicle registered with Safe Food New South Wales . The animals are headshot to avoid damage to the carcass. The meat is downgraded if the animal is shot in the body. If the stomach has been ruptured the meat is not fit for human consumption.

After being shot, the wild rabbits and hares must be immediately hung to bleed. The animals are hung in pairs on a truck. The offal must also be removed within 20 minutes of shooting the animal.

Both species are processed in a facility that is dedicated to processing rabbits and hares. This facility has been operating for the last 22 years. The rabbits and hares are immediately processed when a shipment arrives. They are received at the processing facility with the skin, head and feet still attached to the carcass. During processing the carcasses are dressed down, which involves removing the head, skin and feet. The carcasses are cleaned and inspected, and then have the processor’s stamp placed on them. They are chilled, if this has not already been done, and then packed and delivered to the market.

The primary product is meat, sold as a whole carcass. The average dressed carcass size for a wild rabbit is approximately 850 g, and for a hare approximately 2 kg. The skins are regarded as a by-product and supplied to a hat manufacturer.

The carcasses from both species are packed in bulk into a plastic-lined cardboard box for distribution. Each box has ventilation holes in the side of the box to allow cool air to circulate to chill the meat. Typically 16 rabbit carcasses are packed into each box, or six to eight hares. The processor prefers not to pack the

carcasses individually into plastic bags, believing this form of packaging to be likely to cause the carcasses to sweat and therefore reduce shelf life.

There is a limited supply of wild rabbits and hares, mainly due to drought conditions in New South Wales over the last decade. This has affected the rabbits’ and hares’ breeding cycles, and the species are therefore not as prolific as they would be in more favourable conditions. An additional factor affecting supply of hares is the difficulty of shooting them, as they are highly elusive.

Approximately 1 000 pairs of wild rabbits are supplied to the Sydney market each week. Before the release of the calicivirus, the demand for wild rabbits was reported to be in the order of 3 000 pairs per week. Given the lack of knowledge and skill among consumers in preparing wild rabbit meat, the potential domestic market size for wild rabbits could be as high as 5 000 rabbits per week.

The demand in the Sydney market for hares is believed to be in the order of 50 per week. Again, lack of knowledge and skill among consumers in preparing the meat is hindering demand. Additionally, restaurants can prepare five or six dishes from one hare, which means they need to buy only one or two hares to meet their requirements. The potential size of the Australian market for hares is estimated to be approximately 300 per week.

All of the wild rabbit and hare meat is supplied directly to one wholesaler in Sydney, and the skins are supplied to a hat manufacturer. The participant was aware of only one other competitor purchasing and processing wild rabbits and hares in New South Wales. Export markets are considered a potential opportunity for the skins.

Both wild rabbits and hares are transported by road to the processing facility. They are delivered either directly after harvesting or from a storage chiller. After they have been processed they are delivered by refrigerated truck operated by the processor to the wholesaler in Sydney.

The processed rabbits and hares are transported in a Safe Food-registered refrigerated trailer to the market, which is inspected annually. The trailer has a capacity of 2 tonnes, which is equivalent to 2 500 rabbits. The trailer is maintained at a temperature between 0° and 2°C. The shelf life of the processed meat is 14 days. Deliveries are made fortnightly and continuity of supply is important to foster a loyal relationship with customers.

Quality assurance is implemented through the facility’s HACCP plan and regulations implemented by Safe Food New South Wales, who conduct an audit on the facility every 3 months.

Traceability of the wild rabbits and hares is implemented through a stamp branded on the carcasses and labels on the boxes that show the date packed, storage temperature and the supplier’s name. It was believed that the labelling requirements could be relaxed by not requiring the processor’s name to appear on the label. The processor reported that including the name on the label encourages restaurants and butchers to make inquiries for direct supply, which are impractical and unwanted.

6.9.3 Wholesaler The wholesaler is located in Sydney and supplies customers in the Newcastle, Canberra and Sydney metropolitan areas.

Approximately 1 200 rabbits are supplied to customers per week. One of the major problems that the wholesaler reported is the perception that there is an adequate supply of wild rabbits and hares to service demand. The wholesaler, however, asserted that the supply was insufficient.

Sales of both wild rabbits and hares are seasonal, with the greatest demand for the meat in winter when there is a tendency for people to cook hot dishes. With rabbits in particular, the wholesaler believes that 4 000 rabbits per week could potentially be sold locally in winter.

The wholesaler mainly supplies two types of customers with whole carcasses of wild rabbits and hares. Wild rabbits are mostly supplied to butchers, while the hares are mostly supplied to restaurants. The wholesaler has regular contact with customers seeing them on a weekly basis. Contact was also made with the supplier two to three times per week.

The introduction of the calicivirus reduced demand for wild rabbit meat due to concerns over the safety of the meat; however, these concerns are believed to have now subsided.

The wild rabbits and hares are on-sold to customers in the plastic-lined bulk-packed cardboard boxes in which they are received. There have been no problems with this packaging and it was believed that the current bulk packaging format used was superior to packaging hares individually in plastic bags as this form of packaging was thought to lead to sweating which reduces the shelf life of the meat.

The meat is transported, mostly fresh on a weekly basis to customers in Safe Food-registered refrigerated trucks operated by the wholesaler. The meat is transported to customers at 0–4°C.

The packaged wild rabbit and hare meat is transported with other products. After the packaged meat is delivered, customers expect a shelf life of between 5 and 7 days. There are no problem with storage, due to the lack of supply.

Quality assurance is implemented by a HACCP plan as well as Safe Food NSW regulations. The operation also has a Woolworths Vendor Quality Management System established to further monitor quality control; an external company in addition to Safe Food also audits this system. The wholesaler advised that he was happy with the regulations as they kept the quality of the meat to a high standard.

Traceability of the meat is easily implemented because there is only one supplier of wild rabbit and hare meat; there are therefore no requirements for the wholesaler to place any labelling on the packaging.

6.9.4 Restaurant/butcher A restaurant and a butcher in the Sydney area were interviewed. Although both handled wild rabbit and hare meat, they were not regarded as part of the same supply chain as the wholesaler or harvester/processor.

The restaurant is a gourmet restaurant and features hare on the menu. It is the loin of the hare that is featured in the restaurant’s dishes, typically in broths. The restaurant discards the legs of the hare because they are too tough.

The restaurant sold approximately 60 hares per week. It was indicated that the demand for hare is highly seasonal, with the greatest demand for the meat occurring in winter as hare is traditionally consumed as a winter dish. The restaurant also indicated that it was extremely difficult to obtain adequate supplies.

The butcher interviewed sold rabbits of both the farmed and wild variety, selling about six wild rabbits per week. The butcher indicated that demand was not as strong for wild rabbits as it was for farmed rabbits, and believed customers preferred farmed rabbit meat because wild rabbit meat is drier and has less meat on the carcass compared with farmed rabbits.

6.10 Major issues Feedback from industry representatives interviewed has identified a number of issues that are believed to have had a substantial impact upon the development of the wild rabbit and hare industries.

6.10.1 Supply: rabbits Industry representatives indicated that insufficient supply is a major issue affecting the wild rabbit industry. The contributory factors cited included: • a reduction in the rabbit population due to the release of diseases such as myxomatosis and calicivirus into the wild rabbit population; • weather conditions such as droughts reducing the number of wild rabbits available for harvesting, due to the effect these conditions are having on the breeding cycle of wild rabbits; • a lack of shooters available to harvest wild rabbits.

Although most industry representatives interviewed believe there is a lack of wild rabbit supply, it should be noted that not all participants interviewed agreed. Some of the feedback suggested that the supply of wild rabbits is adequate to satisfy current demand.

6.10.2 Supply: hares The lack of supply of hares to meet current demand was considered to be one of the main issues affecting the industry. The factors identified as contributing to the current lack of supply included: overshooting, which has made it difficult to locate hare populations to supply the market; • difficulty associated with physically locating and shooting hares, as they are highly elusive. • a shortage of available shooters to harvest hares.

6.10.3 Processing It was indicated by one participant that many processing facilities are unwilling to process hares. This is primarily due to the low volumes that are typically processed in one run. It was also indicated that there was difficulty involved with skinning the hares because the hair can easily be transferred onto the carcass during processing.

6.10.4 Packaging Packaging of hares was considered to be an area that could be improved. It was advised in one instance that bone guards should be introduced to cover sharp bones on the carcasses to prevent them from piercing the plastic bags. Some members of the industry already use bone guards.

Feedback from one participant also suggested that the use of cryovac packaging would improve the presentation of the meat; however, the cost of this process may prevent some industry members from using this form of packaging.

Two participants considered that wrapping rabbits and hares in plastic bags was not suitable packaging, because they found it made the meat sweat and hence reduced its shelf life.

6.10.5 Disease and its impact on demand Feedback from some participants revealed the opinion that the introduction of diseases to control the wild rabbit population is responsible for dampening demand for the meat. One participant said, however, that concerns over the safety of the meat had subsided.

Some participants voiced the opinion that government should cooperate with shooters to control wild rabbit populations rather than using diseases for control purposes. Such cooperation would facilitate further development of the industry.

6.10.6 Marketing and promotion: hares There is not extensive public awareness of hare meat, and it was believed that promotions should be undertaken to profile it and educate consumers about it.

6.11 SWOT analysis: wild rabbits and hares

Species Strengths Weaknesses Opportunities Threats Wild Rabbits Substitute product Lack of shooters Development of Disease from for farmed rabbits available to harvest relationships myxomatosis and rabbits between shooters calicivirus Existing supply and government channels Lack of supply authorities to Environmental reduce populations conditions (e.g. Some awareness by Psychological through culling drought) consumers reservations about rather than by threatening supply eating ‘wild’ rabbit disease control availability meat methods

Re-examination of policy on control methods for wild rabbits

Potential to find new markets

Hares A meat that has Over harvesting Further research Fragmented been traditionally into developing industry consumed in Difficult to shoot hare-farming Europe systems Lack of supply in Low awareness of the wild and no No susceptibility to meat in Australia. Development of commercially myxomatosis or specialist harvesting produced supply calicivirus techniques for hare available

Unique meat with Promotion of meat Eradication of the distinctive to penetrate new hare population characteristics in markets (e.g. colour and taste through recipe cards)

6.12 Future directions There are various issues in the supply chain and at the wider industry level that are affecting the ability of the wild rabbit and hare industry to further develop.

It was indicated from both industries that there was a lack of supply of both species available for harvest. Hares are susceptible to overshooting, and it is proposed that the RIRDC hare-farming research project (Tume 2002) be re-examined to identify any subsequent developments (i.e. new breeding trials conducted in Australia, or any physiological and behavioural studies that may provide insights on developing new intensive production systems).

The RIRDC report found that hares were susceptible to high levels of stress and have strong flight instincts in reaction to the presence of humans, which have led to difficulties in developing intensive farming systems. This situation presents problems in both breeding and handling hares. It is proposed that research be conducted into the technique of imprinting, commonly used with horses, and the potential for using this technique with hares be explored. This technique when applied to hares may have the potential to improve breeding and handling of hares by minimising the stress and flight instincts they hold towards humans.

Alternatively, it is proposed that the possibility of establishing hare reserves to foster the growth of hare populations be examined. These reserves could be located in regions where the environmental conditions were suitable for hares to proliferate (i.e. regions with mild temperatures and adequate vegetation).

Shooters could be used to control the numbers of wild rabbits, as an adjunct to the current biological control methods used by government authorities. This could contribute to satisfying the unmet demand in the market, and encourage additional shooters to harvest wild rabbits.

At the processing stage of the supply chain the research identified a problem with skinning, and this suggests there may be opportunities to improve processing. Feedback from one industry member indicated that skinning hares was a difficult process, as the fur is easily transferred onto the carcass during the skinning process. Further development of a technique or machinery to improve the skinning process could resolve this potential problem and increase efficiency.

Packaging was another area identified for potential improvement at the processing stage of the chain. It is suggested that future research focus on developing a low-cost packaging solution that combines high resistance to puncturing with improved presentation.

At the consumer or market end of the chain, low awareness of hare meat was cited by industry members as a problem. Despite the current shortfall in supply, it was proposed that research be conducted to determine the marketing and promotion activities most likely to increase awareness and educate consumers about hare meat. Such activities may assist in penetrating new market segments for hare in the future.

7 Snails

7.1 Industry overview The Australian snail industry is very much in its infancy; as a result, current production figures are difficult to ascertain. However, at the beginning of 1998 Australian production was reported to be less than 1 tonne (Department of Natural Resources & Environment Victoria 1998).

Discussions with a leading snail expert indicated that the Australian market is currently supplied with minimal amounts of fresh snails. The expert also believed that the only market for snails in Australia is the gourmet restaurant segment. Currently, there is only a small number of individuals within Australia growing snails for the restaurant trade. It is very much a cottage industry (Murphy 2001).

A search was conducted throughout Australia to identify producers of snails, but only one producer located in the Hunter Valley was identified. This producer is still in the process of establishing operations (see case study).

7.2 Market From the participants interviewed, it was found that the snails used in restaurants are mainly obtained canned. Some members of the food-service industry who were interviewed felt that there would be a demand for fresh snails if they were available. It was not possible to contact any former producers of snails in Australia.

Limited imports of snail products were also found to be entering the domestic market.

Table 7.1: Imports of snail products to Australia (kilograms) Category 1998/99 1999/2000 2000/2001 Snails (excluding sea snails), live, fresh, chilled, 11 040 13 668 4 953 frozen, dried, salted or in brine Source: ABS trade data 2002

7.3 Legislation No legislative or licensing issues were identified. It is suggested that individual local councils should be contacted regarding licensing issues, should snail farming be contemplated.

7.4 Case study: snails

7.4.1 Overview This producer was selected for the case study is one of the few producers of fresh snails that could be identified in the domestic market. At the time of interviewing, the producer was developing production systems and stock in readiness to supply the market in the near future.

7.4.2 Producer The producer is located in the Hunter Valley of New South Wales. The producer is not currently supplying any markets with snails, but hopes to have production at a point where markets can be supplied by late 2002. Current and future production practices were discussed with the producer, as well as future plans for supplying markets.

Production is in its infancy, and began in late 2001. Initial stocks of snails were obtained by placing an advertisement in a local newspaper, asking for snails to be delivered to the producer at a local farmers’ market. Approximately 3 000 snails of the species Helix aspersa were received at the market, with the majority coming from Scone in New South Wales.

When interviews were conducted, only the first generation had been bred, but the snails were not yet of an age to reproduce. This generation will be used as breeding stock for the production of snails to supply to markets in the near future. The first generation was produced at a rate of 600 to 1 000 young per week.

The snails are housed in three shade houses inside a shed. The producer plans, in the near future, to implement systems to control the temperature and light conditions in the shed to achieve more effective production and year-round continuity of supply.

It is believed that a viable commercial snail facility requires 50 000 breeding snails. Soon, when further stocks of snails have been bred, different pens are to be established to house snails according to their age. The producer plans to supply the snails to customers within 6 months of hatching under the controlled production conditions.

Figure 7.1: Shade house for snail production

To produce new offspring, 30 of the initial stock of snails are placed into a styrofoam box and covered with a lid with a ventilation hole. Contained within the box is five inches of potting mix. The snails are left in the box to breed for a week; they are then removed from the box and the soil is sifted for eggs. Each snail lays approximately 90–150 eggs. The eggs are transferred to another soil-filled styrofoam box for approximately 2 weeks until they hatch. The hatchlings are then placed into a small plastic container for a week, after which they are finally placed into the shade houses.

Figure 7.2: Snail eggs

It is believed that the snails are more active at night than during the day. The ideal conditions for producing snails is around 21°C degrees, with 95% humidity. If the temperature is too high or too low the snails hibernate. The snails are sprayed morning and at night with a fine spray of water to keep them moist. Snails are inactive during the day unless they are disturbed or sprayed with water.

The snail’s diet consists of a powdered mixture of pig meal, soy meal, powdered milk, calcium, rolled oats and bran, with herbs added. It was reported that the snails take on the flavour of their diet.

In the future it is planned to invite schools and other individuals to grow snails under contract. The producer would supply the breeding stock and feed, and once the snails reached market size the producer would buy them back. The benefits of utilising contract growers and schools are twofold: it educates children and their families about snail production, and minimises the risk of disease or fire decimating the entire stock.

The processing of the snails will involve purging for 4 days and then chilling to a temperature of approximately 4°C. Chilling the snails to this temperature will send them into hibernation. The snails will then be supplied to customers in sealed polystyrene boxes as a fresh product for chefs.

Gourmet European and game-meat restaurants on the eastern seaboard featuring à-la-carte menus will initially be targeted. The producer also considers local farmers’ markets to be a potential market. It is expected that the snails will be packed in a sealed polystyrene box for delivery to customers.

The snails will be produced for their flesh only. They will be supplied to the market in a state of hibernation, still within the shells. Supplying snails in this state will allow the chefs to prepare the snails in a manner of their own choosing. Additional products that may be supplied include deshelled snails, pâté, marinated snails and bottled snails.

The producer is planning to act as the wholesaler, to ensure good handling and quality control of the snails. This will also allow the producer to receive feedback from the marketplace.

Transport will be by road or air. The snails are likely to be held at 4°C during transportation, to hold them in a state of hibernation. They could be held in this state for an extended period of time, but it is recommended that they be used within 6 days, after which they suffer from weight loss and are less edible.

7.5 SWOT analysis: snails Species Strengths Weaknesses Opportunities Threats Snails Pioneering Lack of domestic Development of industry Disease producers production associations/supply chains developing new knowledge for exchange of production Competition from production information and to share imports techniques Maintaining costs of consistent supply production/distribution Alternative product to Niche market opportunities traditional meats for gourmet restaurants

7.6 Future directions

Most of the issues identified for snails relate to the production end of the supply chain. The snail industry is very much in its infancy, and educational resources could be established as proposed for farmed rabbits. These resources could include the following:

• A website maintained by a government authority, industry body or research agency could provide extensive information and advice about establishing and operating an efficient snail-farming facility. As was suggested for farmed rabbits, all relevant government departments, research agencies and industry groups could publish information about all aspects of snail production, distribution and marketing. Such a resource could stimulate the domestic industry by assisting the few industry members to learn about each other and interact to share their knowledge and experiences.

• Additional manuals or other publications could be produced, containing detailed and practical information for establishing and operating a snail-production facility. Information covered by this publication could include production techniques and transportation of live snails and/or flesh.

• Snail-farming courses could be made available to interested parties at TAFE or similar colleges.

• Industry-sponsored seminars could involve speakers from Europe with extensive snail-farming experience.

Recent research has been conducted by RIRDC to explore the commercial production of snails in Australia, and the report is available to the public (Murphy 2001). This report provides detailed information about the potential for establishing and operating a commercial snail-farming facility. Areas investigated in the research include breeding, farming systems, housing systems, and an economic analysis of potential farming facilities.

The RIRDC snail research provides a starting point from which prospective and current snail producers can increase their knowledge about establishing and operating an efficient and viable commercial snail- production facility. This research, supplemented with the proposed educational resources outlined above, could remove the ‘trial and error’ procedure that new producers currently face in establishing and developing a farming facility, and could potentially encourage more producers into the industry.

Research could also be conducted in the area of the handling and transportation of snails from the producer to the market. This research could focus specifically on: • the packaging used for transportation; • whether snails are better transported in live or processed form; • the mode of transport used; • the temperature at which snails should be held during transit.

These issues are of importance to ensure the snails arrive to customers in the best condition possible. Such information could be acquired by visiting countries that have established markets for snails.

At the market end of the supply chain, it is proposed that research be undertaken on prospective markets for snails. This research could explore: • market segments that would be receptive to snails; • types of snail products to be supplied to the market (e.g. fresh or frozen; in-shell or deshelled; value- added); • type of packaging preferred by the market (e.g. plastic bags, cryovac packaging, styrofoam trays); • the price that the market would be prepared to accept.

Such research could be undertaken informally, by producers directly approaching prospective customers such as restaurants and wholesalers to obtain feedback. Alternatively, research could be carried out by an independent agency, in partnership with producers, to explore specific opportunities for snails in the Australian market.

8 References

Australian and New Zealand Food Authority (ANZFA) Australian Code of Practice for Veterinary Public Health: The Hygienic Production of Crocodile Meat for Human Consumption Act 1993. Crocodile Farms (NT) Pty Ltd . Australian Bureau of Statistics International Trade unpublished data (2002).

Code of Practice – Emu Farming 1994 (Environment Protection Agency Queensland) . Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Environment Australia, [online], Available: http://www.ea.gov.au/biodiversity/trade-use/cites/, [Accessed 11 October 2001]. CSIRO Crusader rabbit meat project, [online], Available: http://www.csiro.gov.au/index.asp?type=faq&id=Meat%20rabbits, [Accessed September 2 2002]. Davies, B. & Peucker, S. 2001, Finding the perfect food for fussy eater – NQ crocodile research continues, [online], Available: http://www.dpi.qld.gov.au/news/NewsReleases/7297.html, [Accessed 8 October 2001]. Australia Department of Agriculture, Fisheries and Forestry Australia, (AFFA) Levies and Revenue Service February 2002. Department of Agriculture, Western Australia, Rabbit Control: Rabbit calicivirus disease (RCD), viewed 22 January 2002, . Department of Natural Resources & Environment, Victoria 1998, Agriculture note – snails Farm Diversification Information Service, Bendigo, Vic.

Department of Primary Industries, Queensland/Department of Primary Industry & Fisheries Northern Territory/RIRDC 1996, Handbook of Australian Crocodile Meat, Department of Primary Industries Queensland. Environment Australia, Invasive Species – Feral Rabbits, [online], Available: http://www.ea.gov.au/biodiversity/invasive/pests/rabbit.html, [Accessed: 25 March 2002]. Environment Australia, Wildlife permits and enforcement, 2002. Kent, P. 1994, DPI Note Emu farming, Queensland Poultry Research and Development Centre, Redlands. Leech, A. & Kent, P. in press, Identification and development of export opportunities for game birds, Rural Industries Research and Development Corporation/Department of Primary Industries, Queensland. McInnes, P. 2002, (Rural Industries Research and Development Corporation), personal communication. Michael, D. 2001, Benchmarks for new animal products. Alpaca, buffalo and rabbit production and duck processing. Rural Industries Research and Development Corporation – Publication No 01/113, Canberra. Murphy, B. 2001, Breeding and growing snails commercially in Australia, Rural Industries Research and Development Corporation – Publication No 00/118, Canberra. Senate: Rural and Regional Affairs References Committee, [online], Available: http://www.aph.gov.au/senate/committee/rrat_ctte/wild/WLChap1.1.htm, [Accessed: April 9 2002]. Johnston, W 2001, Croc profit calculator Queensland Government Department of Primary Industries, Brisbane. Emu Farmers Federation of Australia, Research & Development Plan for the Australian Emu Industry 2000– 2005, viewed 29th May, 2002 Primary Industries and Resources SA and SA Research & Development Institute, Adelaide & Rural Industries Research and Development Corporation.

Stubbs, A. 1998, Information systems for new animal industries, Rural Industries Research and Development Corporation - Publication No 98/139, Canberra.

Tume, L 2002, Farming European Brown Hare, Rural Industries Research and Development Corporation – Publication No 00/75, Canberra.

9 Appendices Appendix 1: Australian exports of crocodile meat by country (Kilograms) DESTINATION COUNTRY 1994 1995 1996 1997 1998 1999 2000 Total Austria 380 650 408 432 1073 2943 China 1151 80 500 50 200 1981 Cyprus 20 84 104 Denmark 410 597 442 800 2249 France 120 120 French Polynesia 250 250 Germany 210 500 100 810 Great Britain 800 800 Hong Kong 1223 3333 363 483 7045 1530 34 14011 Indonesia 10 30 20 60 Japan 325 1447 1874 287 119 94 38237969 Kuwait 150 150 Macau 121 0 46 500 667 Mexico 110 110 Netherlands 5 1493 1498 New Caledonia 26 150 176 New Zealand 1499 2185 1336 1193 1746 1550 3280 12789 Norway 50 500 550 Phillipines 0 0 Republic of Korea 96 41 137 Reunion 300 300 Singapore 10 25 155 937 1127 Sri Lanka 330 330 Switzerland 5 1066 52 4050 30008173 Tahiti 40 40 Taiwan 2898 11315 12242 44572 71027 Thailand 60 80 140 Union of Soviet Socialist Republics 80 200 280 United Kingdom 25 341 1695 2061 United States 0 150 36 186 Wallis & Futuna 100 100 Total exports 5098 8240 6267 10739 23483 21326 55985 131138

Appendix 2: Australian exports of emu meat, 1994–2000 (kilograms) 1994 1995 1996 1997 1998 1999 2000 Belgium 475 7035 32 Chile 23 China 4 1000 374 8297 Cyprus 5 Denmark 604 1482 1816 France 30322 519 107 2273 Germany 43 577 150 150 Greece 10 Hong Kong 329 399 160 3 66 Indonesia 677 99 30 Japan 1601 472 855 325 330 404 150 Malaysia 21 6451 610 1033 Maldives 7 Mali 118 Netherlands 1050 2 New Caledonia 50 206 New Zealand 200 1080 Norway 30 Not Specified 63 50 502 200 Philippines 0 Reunion 3712 Sierra Leone 7 Singapore 25486 41606 2790 118 Swaziland 56 295 Switzerland 15 27 100 Taiwan 15 15915 United Arab Emirates 81 United Kingdom 11 3500 371 200 United States 15031 3439 2170 16 USSR 501 Total 48479 36555 56634 24625 13950 604 556 Source: CITES 2001

Appendix 3: Crocodiles – legislation, regulations and licensing for domestic use Northern Territory Legislation Code of practice Licences Contact

Farming Territory Parks Northern Territory Crocodile farming licence Department of Infrastructure, Planning and the Environment, and Wildlife Crocodile (new crocodile farms assessment Ph: (08) 8999 4795 Conservation Management criteria) Web: Act 1993 Program Wildlife Protection (Regulation of Exports and lmports) Act 1982. . Processing Territory Parks Draft Code of Northern Territory export permit Department of Business, Industry and Resource Development and Wildlife Practice on the (DBIRD). 96 Conservation Humane Treatment All raw crocodile products leaving Act 1993 of Captive and the Northern Territory must have a Ph (08) 8999 2036 Wild Australian Northern Territory export permit. Fax: (08) 8999 2146 Crocodiles Some states within Australia will Web: require an import permit for products before they can enter. This permit ‘application to remove crocodile products from the Northern Territory’ is issued by DBIRD, for no fee.

Appendix 3 cont. Northern Territory Legislation Australian Standards Licences Contact Killing Meat Industries Construction of Domestic abattoir licence Department of Business, Industry and Resource Development Act 1996 Premises Processing PO Box 3000, Animals for Human Darwin, NT 0801 Meat Industries Consumption Regulations Principle Meat Industry Officer As in force at 1 Hygienic Production of Ph: (08) 8999 2365 January 2002 Crocodile Meat for Fax: (08) 8999 2089 Human Consumption Email: [email protected] Processing Transportation of Meat Processing licence Senior Meat Industry Officer for Human Ph: (08) 8999 2255 Consumption Fax: (08) 8999 2089 Email: [email protected]

97 Storage Construction of Cold store licence Department of Business, Industry and Resource Development Premises Processing PO Box 3000, Meat for Human Darwin. 0801 Consumption Transportation of Meat for Human Consumption Transport Transportation of Meat Registration of vehicles for for Human transportation of meat for Consumption human consumption

Some crocodile farms have small abattoirs where the animals are killed on farm. Some abattoirs also kill for other producers. The crocodiles are then transferred to processor for processing and packaging. Coldstore licences are applicable to separate coldstore businesses. Robert McFarlane (DPIE 2002)

Appendix 3 cont. Queensland Legislation Code of practice Licences Contact

Smart licence1800 061 631

Farming Nature Code of Practice – Department of Environment and Heritage Conservation Crocodile Farming 160 Ann Street, Brisbane, Act 1992 PO Box 155, Brisbane Albert Street, Qld 4002, Ph: (07) 3227 7805 Fax: (07) 3227 7676 Web:

Wildlife farming licence Queensland Parks and Wildlife Service (QPWS), Ph: (07) 4046 6609 Wildlife movement licence Web: 98 Effluent discharge licence Environmental Protection Agency (EPA) Ph: (07) 3227 7111 Web:

Australian Standards Australia Standards Web: Processing Meat Industries Safe food processing Safe Food Queensland Act Accreditation licence 55 McLachlan Street 1996 Fortitude Valley Qld 4006 PO Box 440 Spring Hill Qld 4004 Ph: (07) 3253 9800 Fax: (07 3253 9824 Email: [email protected] Web: Workplace registration Department of Industrial Relations (workplace health and safety Ph: 1300 369 915 issues) Web:

Appendix 3 cont. Western Legislation Code of practice Licences Contact Australia Small Business Development Corporation

99 Licence to export skins of fauna (or other dead fauna) out of state. Regulation 18 Australian Standards compliance Department of Health, Environmental Health Branch, PO Box 8172 Perth Business Centre, WA 6849 Ph: (08) 9388 4999 Fax: (08) 9388 4905 Licence for the operation of a Western Australia Meat Authority domestic abattoir Ph: (08) 9274 3511 Consent to build or alter a Environmental Health Officer slaughterhouse Shire Council

Permit to take endangered & Wildlife Impact Assessment Section, Biodiversity Group, Threatened vulnerable species – Species & Communities Section, Commonwealth areas GPO Box 787, Canberra ACT 2601

Appendix 3 cont. Western Legislation Code of practice Licences Contact Australia Occupational Health & Safety Department of Consumer & Employment Protection Worksafe Western Australia 1260 Hay Street WEST PERTH WA 6005 Ph: (08) 9327 8846 Web:

100

Appendix 4: Emus – legislation, regulations and licensing for domestic use New South Wales Legislation Code of practice Licences Contact

Farming Australian Model Code National Parks & Wildlife Service of Practice for the Wildlife Licensing Welfare of Animals – 43 Bridge Street, PO Box 1967, Hurstville NSW 2220 Husbandry of Captive- Ph: (02) 9585 6481 Fax: (02) 9585 6401 Bred Emus 1992 Email:

Emu Farming Licence National Parks and Wildlife Service Wildlife Licensing, Biodiversity Management Unit Ph: (02) 9585 6539 Fax: (02) 9585 6401 Email: [email protected]

Processing Meat Industry Abattoir Licence SafeFood New South Wales, Amendment Act 1998 Taree Office

101 PO Box 232 Taree NSW 2430 Meat Processing Plant Licence Ph: (02) 6552 3000 Fax: (02) 6552 7239 Australian Standards Standards Australia Web:

Appendix 4 cont. Queensland Legislation Code of practice Licences Contact

Farming Nature Code of Practice – Queensland Government Environmental Protection Agency Conservation Act Emu Farming PO Box 155 1992 Brisbane Albert Street, Qld 4002 Ph: 1800 501 087 Fax: (07) 3227 8341 Email: Web: Nature Emu farm licence Environmental Protection Agency Conservation Ph: (07) 3202 0201 Regulations 1994 Fax: (07) 3202 6844 Email: Web: Animal Care and Department of Primary Industries 102 Protection Act 2001 Processing Meat Industry Act Abattoir or slaughter house Safe Food Queensland 1993 licence Meat Licensing 55 McLachlan Street Butchers shop Fortitude Valley Qld 4006 PO Box 440 Vehicle licence Spring Hill Qld 4004 Ph: (07) 3253 9817 Fax: (07)3 253 9824 Email: Web: Australian Standards Australia Standards Web:

Appendix 4 cont. South Australia Legislation Code of practice Licences Contact:

*Business Licensing SA Ph: (08) 82 33 4600

Farming National Parks and The code of Emu farming permit Department of Environment and Heritage Wildlife Act 1972 management for the Fauna Permit Unit farming of emus in GPO Box 1782 South Australia Adelaide SA 5001 Phone (08) 8204 8702 Fax: (08) 8204 8717 Web: http: Development Act The Australian 1993 model code of practice for the

103 welfare of animals- husbandry of captive bred emus – guidelines to how emus should be farmed Native Vegetation Compliance Native Vegetation Council Secretariat Act 1991 Ph: (08) 8204 8888 Processing Meat Hygiene Act Food safety Accreditation process Primary Industries and Resources SA (PIRSA) 1994 standards covering the wholesaling GPO Box 1671 Adelaide 5001 activity of meat processing Ph: (08) 8207 7964 operations from slaughter to Fax: (08) 8207 7852 retail outlet

South Australian Food labelling Retail Department of Human Services Food Act 1995 Public & Environmental Health Services Ph: (08) 8226 7121

Appendix 4 cont. Tasmania Legislation Code of practice Licences Contact

Farming Animal Welfare Department of Primary Industries, Water and Environment Standard No 9 – Husbandry of

Animal Welfare Tasmania No 7 Road transport of livestock within Ph: (03) 6233 6875 Tasmania – Emus Fax: (03) 6278 1875 Email: [email protected]

Emu farming licence Department of Primary Industries, Water and Environment 104 Ph (03) 6233 6883 Fax: (03) 6228 5123

Processing No processing currently taking place in Tasmania

Appendix 4 cont. Victoria Legislation Code of practice Licences Contact

Farming Wildlife Act 1975 Code of practice for Bureau of Animal Welfare, Attwood the husbandry of Web: captive emus

The Australian code of practice for veterinary public health: the hygienic production and inspection of emu meat for human consumption 105 Wildlife Wildlife licence Department of Natural Resources and Environment Regulations 1992 Game & Wildlife licensing Unit PO Box 500 East Melbourne Vic 3002 Ph: (03) 9412 4992 Customer service centre: 13 61 86 (9 a.m. – 12 noon Monday to Friday)

Processing Abattoir licence Victorian Meat Authority Butchers shop licence Meat Licensing Division Meat transport vehicles Ph: 03 9685 7333 licence

Appendix 4 cont. Western Australia Legislation Code of practice Licences Contact

Farming Australian model The Codes are only recommendations in WA under the existing code of practice for animal welfare legislation, which is the responsibility of the the welfare of Department of Local Government. animals–husbandry (Peter O’Malley: October 2001) of captive-bred emus 1992

Wildlife Emu farming Department of Conservation and Land Management Conservation Act Phone (08) 9334 0333/(08) 9334 0434 1950 Fax: (08) 9334 0242

Wildlife Conservation Regulations 1970 106 Processing Meat Industries Licence for the operation of a Meat Industry Authority Act domestic abattoir Ph: (08) 9274 3511 1996 Ph: (08) 9274 3511 (Mike Donnelly) Ph: (08) 9274 7533 (Dave Saunders) Consent to Build or alter a Environmental Health Officer Slaughterhouse Shire Council Australian Standards Department of Health compliance Environmental Health Branch PO Box 8172 Perth Business Centre Food labelling Perth WA 6849 Ph: (08) 9388 4999 Fax: (08) 9388 4905 Web: Licence to Export Skins of Department of Conservation and Land Management fauna (or other dead fauna) Wildlife Licensing Division out of State. Ph: (08) 9334 0333 Fax: (08) 9334 0242 Regulation 18 Contact: Phone: (08) 9334 0434 Fax: (08) 9334 0242 [??]

Appendix 5: Game birds – legislation, regulations and licensing for domestic use Licences Contact New South Wales Farming Duck, pheasant, No permit required NSW Department of Agriculture squab, quail Ph: (02) 6391 3100 Processing Duck, pheasant, Must be processed in accordance with the Safe Food NSW squab, quail Australian Standards at a processing Ph: (02) 9295 5777 facility licensed with Safe Food New South Wales. Queensland Farming Duck, pheasant, No permit required Qld Department of Primary squab, quail Industries Ph: 13 25 23 Processing Duck, pheasant, Must be an accredited poultry processing Safe Food Queensland squab, quail facility. Ph: (07) 3253 9817

South Australia Farming Duck, pheasant, No permit required Primary Industries and Resources squab, quail South Australia Ph: (08) 8303 7722 Processing Duck, pheasant, Must be processed at an accredited abattoir Primary Industries and Resources squab, quail in accordance with the Australian South Australia, Meat Hygiene Unit standards. Ph: (08) 8207 7964 Tasmania Farming Duck, pheasant, No permit required Tasmanian Department of Primary squab, quail Industries, Water and Environment Ph: (03) 6233 8011 Processing Duck, pheasant, Required to be processed in a registered Tasmanian Department of Primary squab, quail abattoir licensed to process these species. Industries, Water and Environment The species must be processed in Ph: (03) 6233 8011 accordance to the Australian Standards for processing poultry. Victoria Farming Duck, pheasant, No permit required Victorian Department of Natural squab, quail Resources and Environment Ph: 136 186 Processing Duck, pheasant, Must be processed in accordance with the Victorian Meat Authority squab, quail Australian Standards for processing poultry Ph: (03) 9685 7333 in a registered poultry processing facility with the Victorian Meat Authority.

107

Appendix 5: cont. Western Australia Farming Duck, pheasant, Permits are required to keep pheasants and Agriculture Western Australia squab, quail quail, which are issued by the Department Ph: (08) 9368 3333 of Agriculture Western Australia. There is no cost for the permit. Processing Duck, pheasant, Must be an accredited poultry processing squab, quail facility.

It should be noted that any farming facility established for farming the game-bird species covered in this research must conform to any local government regulations that may apply.

108

Appendix 6: Farmed rabbits – legislation, regulations and licensing for domestic use Licences Contact New South Wales Farming No formal licence required. NSW Department of Agriculture Ph: (02) 6391 3100 Processing Rabbits in New South Wales must be Safe Food NSW slaughtered in accordance with the Ph: (02) 9295 5777 Australian Standard for Hygienic Production of Rabbit Meat for Human Consumption in a licensed abattoir. Queensland Farming Only to be kept for public education, public Qld Department of Natural Resources entertainment or scientific and research and Mines purposes. Permits are not issued for farming. Ph: (07) 3406 2870

South Australia Farming No formal licence required. Rabbit farms Primary Industries and Resources South must comply with any local council Australia regulations. Ph: (08) 8303 7722

Processing Although not mandated by legislation, Primary Industries and Resources South farmed rabbits should be processed Australia, Meat Hygiene Unit according to the Australian Standard for the Ph: (08) 8207 7964 Hygienic Production of Rabbit Meat for Human Consumption in a licensed abattoir. Tasmania Farming No formal licence required. Rabbit farms Tasmanian Department of Primary must comply with any local council Industries, Water and Environment regulations. Ph: (03) 6233 8011

Processing Rabbits are to be processed in Tasmania in Tasmanian Department of Primary accordance with the Australian Standard for Industries, Water and Environment the Hygienic Production of Rabbit Meat for Ph: (03) 6233 8011 Human Consumption. Processing is to occur in meat processing premises licensed under the Meat Hygiene Act 1985.

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Appendix 6 cont. Licences Contact Victoria Farming To establish a rabbit farming facility, a Victorian Department of Natural licence must be obtained from the Victorian Resources and Environment Department of Natural Resources and Ph: 136 186 Environment. Licences are issued on an annual basis at a cost of $88.

Processing Rabbits in Victoria must be slaughtered in Victorian Meat Authority accordance with the Australian Standard for Ph: (03) 9685 7333 Hygienic Production of Rabbit Meat for Human Consumption in a licensed abattoir. Western Australia Farming Prospective producers are not required to Western Australia Department of obtain a licence for farming. Agriculture Ph: (08) 9368 3333 Processing The processing of rabbits is to be carried out Western Australia Department of Health at a licensed abattoir in accordance with the Ph: (08) 9222 4222 Australian Standard for the Hygienic Production of Rabbit Meat for Human Consumption.

It should be noted that any facility established for farming rabbits must conform to any local government or EPA regulations that may apply.

110

Appendix 7: Wild rabbits and hares – legislation, regulations and licensing for domestic use State Processing requirements Contact New South Wales Processing must be undertaken Safe Food NSW in an abattoir licensed to process Ph: (02) 9295 5777 wild rabbit and hare. Victoria Processing must be carried out Victorian Meat at a licensed processing facility Authority that complies to the Australian Ph: (03) 9685 7333 Standard for the Hygienic Consumption of Game Meat. Tasmania Processing must be carried out Tasmania Department in a registered game meat of Primary Industries, premises licensed to process Water and wild rabbits and hares for Environment human consumption. Ph: (03) 6233 8011

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Appendix 8: Contacts – crocodile producers/processors & researchers Northern Territory

Stuart Barker Mick Tabone Janamba Crocodile Farm Johnstone River Crocodile Farm PO Box 496 Flying Fish Point Rd Humpty Doo NT 0836 PO Box 381 Ph: (08) 8988 1617 Innisfail Qld 4860 Mobile: 0438 881 617 Ph: (07) 4061 1121 Fax: (08) 8988 8006 Mobile: 0419 732 397 Email: Fax: (07) 4061 6202 Email: John Hannon Lagoon Crocodile Farm Keith Cook GPO Box 4600 Cairns Crocodile Farm Darwin NT 0801 Redbank Road via Gordonvale Ph: (08) 8984 3997 Qld 4865 Fax: (08) 8932 4567 Ph: (07) 4056 3095 Fax: (07) 4056 1728 Ann Palmer Email: Crocodile Farms NT Pty Ltd PO Box 86 Peter Freeman Palmerston NT 0831 Hartley’s Creek Crocodile Farm Ph: (08) 8988 1491 PO Box 171 Palm Cove Qld 4879 Mobile: 0438 881491 Ph: (07) 4055 3576 Fax: (08) 8988 2001 Fax: (07) 4059 1017 Email: Email: Web: Owen Pugh Coolibah Crocodile Farm Peter Fisher PMB 149 Melaleuca Crocodile Farm Katherine NT 0851 PO Box 1298 Ph: (08) 8975 0856 Mareeba Qld 4880 Fax: (08) 8975 0649 Ph: (07) 4093 2580 Email: Mobile: 0438 127 695 Email: Owen Jones Garrangali Crocodile Farm Peter Moet PO Box 1220 Edward River Crocodile Farm Nhulunbuy NT 0881 Edward River, Qld 4871 Ph: (08) 8987 2399 Ph: (07) 4060 4177 Fax: (08) 8987 1716 Email: Peter Graham Discerning Smile Queensland PO Box 1190 Mareeba Qld 4880 John Lever Ph: (07) 4093 2580 Koorana Crocodile Farm Fax: (07) 4093 2589 MS 76 Mobile: 0417 807959 Coowonga via Rockhampton Email:

112

Appendix 8 cont.

Western Australia

Malcolm Douglas Broome Crocodile Farm Pty Ltd PO Box 5500 Cable Beach WA 6726 Ph: (08) 9193 7824 Fax: (08) 9193 6004 Email:

Don Wieringa Wyndham Crocodile Farm PO Box 648 Wyndham WA 6740 Ph: (08) 9161 1124 Fax: (08) 9161 1486

Crocodile researchers

Graham Webb/Charlie Manolis Wildlife Management International Pty Ltd Crocodylus Park Research and Education Centre PO Box 530 Sanderson NT 0813 Ph: (08) 8922 4500 Fax: (08) 8947 0678 Web:

Steve Peucker District Experimentalist Department of Primary Industries Abbot Street PO Box 1085 Townsville Qld 4810 Ph: (07) 4722 2648 Fax: (07) 4778 2970 Web:

Lorna Melville DBird Berrimah Veterinary Laboratories PO Box 3000 Darwin NT 0801 Ph: (08) 8999 2251 Fax: (08) 8999 2024 Email: Web:

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Appendix 9: Contacts – emu processors/federation & trade

Meat processors: Export accredited New processor – opening 2002

John Bailey Meatcorp Processing Australia Pty Ltd Shane Murray Section 145 MGM Export Pty Ltd Searle Road Lot 83 Bushmead Road Waikerie SA 5330 Hazelmere Ph: (08) 8541 3788 WA 6056 Fax: (08) 8541 3776 Ph: (08) 9250 2787 Fax: (08) 9250 2789 The Game Meat Company (formerly The Emu Company Pty Ltd) Emu Farmers’ Federation of Australia RMB 5800 Myrtleford Vic. 3737 Mr Bruce Makin Ph: (03) 5756 2999 President Fax: (03) 5756 2999 Makin’s Emus Mt Charles Road Ian Milburn KEITH SA 5267 Glenloth Game Ph: (08) 8755 3026 RMB 1024 Fax: (08) 8755 3065 Wycheproof Vic. 3527 Email: Ph: (03) 5493 7383 Fax: (03) 5493 7449 Mr Peter Thompson Vice President Liz Olivier Tjuringa Emu Products Aussie Meats 291 Reesville Rd PO Box 32 Maleny Qld 4552 Pyramid Hill Vic. 3575 Ph: 0500 56 1444 Ph: (03) 5455 7570 Fax: (07) 46392333 Fax: (03) 54 55 7575 Mobile: 0409 061 444 Email: Eddie Delange Web: Dotcom.au Pty Ltd/ Day Fresh Meat Processors Arthur Pederick Lot 44A Secretary/treasurer Landgren Road ‘Corralyn’ Casuarina WA 6167 PO Box 57 Ph: (08) 9439 1197 Wagin WA 6315 Fax: (08) 9439 1293 Ph: (08) 9861 1136 Fax: (08) 9861 1136 Jim Jamieson/ Andrew Martin Email: Dalriada Meat Pty Ltd Makin Street Trader

Keith SA 5267 Alan Chapman Phone: (08) 8755 1516 Bilby International Group of Companies 592 North East Road Baden Brown Holden Hill SA 5088 Crows Nest Butchery Ph: (08) 8369 2447 12 Charlotte Street Fax: (08) 8369 2448 Crows Nest Qld 4355 Ph: (07) 4698 1430

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Appendix 10: Contacts – farmed rabbits, wild rabbits, game birds, snails & game meat wholesaler

Farmed rabbits Squab producer Pat Bennett Producers Rochester, Vic. Bairnsdale Regional Growers Ph: (03) 5484 2273 Dan & Dee Leicester Bairnsdale Vic. Ph: (03) 5156 0543 Game bird processors All Poultry Processors Macleay Valley Rabbits Bendigo Vic. Kempsey NSW Ph: (03) 5444 5520 Ph/Fax: (02) 6561 7233 Glenloth Game Processor Wycheproof Vic. 3527 Gippsland Meats Ph: (03) 5493 7383 Bairnsdale, Vic. Fax: (03) 5493 7449 Ph/Fax: (03) 5152 4302

Snails Wild rabbits and hares Producer Harvester/processor Robert and Helen Dyball SS Johnson Rabbit Merchant Hunter Valley, NSW Hilston NSW Ph: 0419 291 866 (02) 6967 2689 Fax: (02) 4998 0175

Game birds Game meat wholesalers

Ducks Queensland Black Pearl Epicure Organic Fortitude Valley Qld 4006 producer/processor/distributor/marketer Ph: (07) 3257 2144 Bendele Farm Fax: 3257 2044 Kilkivan Qld Ph: (07) 5484 7157 Hillman Meat Company Fax: (07) 5484 7111 Sumner Park Qld 4076 Web: Ph: (07) 3279 0370 Fax: (07) 3279 0241 Pheasant producer Olson Game Birds New South Wales Swan Hill Vic. FM Jones Pty Ltd Ph/Fax: (03) 5030 2648 Strathfield South NSW 2136 Web: Ph: (02) 9642 5147 Fax: (02) 9742 6228 Pheasant Distributor Andrew Green distribution Pty Ltd Vic’s Premium Quality Meats Footscray, Melbourne Vic. Mascot NSW 2020 Ph: (03) 9689 0355 Ph: (02) 9667 3922 Fax: (02) 9667 3048

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Appendix 10 cont.

Victoria Lago Game & Gourmet Pty Ltd Thomastown Vic. 3074

Ph/Fax: (03) 9460 7844

Wangara Poultry & Game Kensington Vic. 3031 Ph: (03) 9376 8188 Fax: (03) 9376 8177 Web:

Yarra Valley Venison & Game Healesville Vic. 3777 Ph: (03) 5962 5173 Fax: (03) 5962 5051

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