Exporting Kangaroo in Europe

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"""""""""Exporting Kangaroo in Europe """"""""""""""""""""""""""""""""""""""


"""Table of contest ""Exporting Kangaroo in Europe! 1!

Table of contest! 2! Executive summery! 3! 1. Introduction! 4! 2. Objectives! 5! 3. Methodology! 6! 4. Findings! 7! 4.1 Opportunity! 7! 4.2 Segmentation! 13! 4.3 SWOT! 14! 4.4 Profit! 15! 4.5 Legality! 16! 4.6 Trade Barriers! 17! 4.7 Cultural Barriers! 18! 5. Conclusion! 19! 5.1 Recommendations! 19! 6. Appendices! 20


"""Executive summery "After analyzing the investigation carried by RIRDC about the seven value added meat products (emu, ostrich, camel, crocodile, buffalo, kangaroo and rabbit meat), conducting a online research, and aiming the target market as European market, I have identified the meat that could have a better chance of success in Europe: the kangaroo. "The aim of this project was to increase international trade of one of the alternative Australian meats in a new target market identified. "The method that I used was research online as much source as I can about the international meats trade especially for the alternative meats mention above and eventually any other number datum regarding the european market. "Once collected enough data to understand the current state of the European market of alternative meats, I assumed the trade of a chosen meat, the kangaroo, analyzing in turn the strengths and its characteristics such as the nutritional properties. "The results of this project shows a hight possibility to success in trading the kangaroo meats in Europe. """"""""""""""""""""""""""


"""1. Introduction "The meats are one of the most important sectors of European agriculture. The four types of meat - beef, pork, poultry and sheep / goat - account a quarter of the total value of agricultural production. Half of EU farms and raises livestock breeders of ruminants (cattle, sheep and goats) are 90% specialized breeders. Meat is a major source of protein and has a leading role in the diet of Europeans. Community policies in beef aim to encourage the production of meat safe, nutritious and affordable. These objectives are placed in prominence by the recent changes to the Common Agricultural Policy (CAP), which aim to give a balanced response to the demands of consumers, farmers and the environment. Fit into a context such as this may not seem easy. The European market, however, doesn’t have a supply of “special" meat such as those from Australia: Emu, kangaroo, ostrich, are all meats which could be marketed with increasing success in Europe. There are already some importers. As for the crocodile meat should be cautious in some countries of the European Union, such as in Italy, it is forbidden to trade due to a lack of community rules. (The health conditions for the production, marketing and import of meat of reptiles and derived products are currently not yet been established within the Community. Therefore, in Italy, in the absence of harmonized Community rules or national provisions establishing appropriate conditions for the production, import and intra-Community trade in those products, their marketing can not be allowed) http://www.anmvioggi.it/altre-notizie/51009-carne-di-coccodrillo?-italia-chiede-norme-ue.html "There are other meats which do not permit the importation from Australia to Italy such as pigs, poultry, venison and rabbit. "sources: .pdf from website of the “Italian Department of Health public veterinary, the food safety and bodies for the Protection of Health.” "Regarding the buffalo, Europe market is primarily provides from America. Assuming all above the meat that has a better chance of success in Europe is the kangaroo. "The kangaroo meat is produced in the best Australian plant and imported fresh, so the market offers a product of high quality, in full compliance with the strictest health standards and a tasty and enjoyable gastronomic novelty to everyone. "


""2. Objectives "The aim of this project was to increase international trade of one of the alternative Australian meats in a new target market identified. In this specific case, increase the European market of the kangaroo meats. "The objectives of this project were to: "I. Investigate in number the international trade of meats II. Identified a target market, a country where exporting the meats (Europe) III. Identified one alternative meat (Kangaroo) IV. Analyzing the characteristic of the meat, strengths and weaknesses (SWOT) V. Identified a specific market segments VI. Evaluate the success in term of number VII. Investigate any legal and cultural issue in exporting the identified meat in the chosen

country. (Regulations, Industry & Trade Barriers) VIII. Conclusion """"""""""""""""""""""""""""""""


""""3. Methodology ""The best way to search data about international trade’s meat and the global demand of meat in the next years is the worldwide. There are a lot of website dedicate to “Meats”, Import & export, trade, analysis about the impact of the meat industry and the consequent environmental issues… "I conducted my research, starting from the first comprehensive research on global demand for meat and its consumption in the various countries of the world. Then I entered the European market in particular, after analyzing the existence of import from Europe of kangaroo meat. Once I have collected all of these general data, I continued my research online on the nutritional characteristics of kangaroo meat looking for strengths and weaknesses that can help me to better marketing in European market. Another important point on which I based the research is the analysis of the potential market segments in which to sell kangaroo meat, both private consumers and restaurant service (hospitality industry). In regard of all of above I have investigate any legal and cultural issues, finding data in official website of Government apparatus. """"""""""""""""""""""""""


"""4. Findings "4.1 Opportunity "Meat production is projected to double by 2020 due to increased per capita global consumption of meat and population growth. Most of this increase in production will come through industrialized animal production systems. In the rich North we already have high meat consumption. Now the poor South is catching up. The following charts give a sense of how people consume meat around the world. This chart shows meat production around the world. Though the USA and Europe still produce plenty of meat products, the prices of feed, energy, and land are all becoming more expensive and the cost of producing industrial livestock is rising. Pigs and poultry are still doing well in the market since both species don’t necessarily need a lot of feed and can be kept in confined spaces. "

source: http://www.businessinsider.com.au/"""


""Meat companies are growing thanks to mergers and acquisitions, and are expanding across countries and animal species. Today, there are 10 major meat producers around the globe, four of which are based in the U.S.: Cargill ($33 billion in food sales a year), Tyson ($33 billion in food sales a year), Smithfield ($13 billion in food sales a year), and Hormel Foods ($8 billion in food sales a year).

source: http://www.businessinsider.com.au/""The global demand for meat is growing, particularly in China and India, which could see an 80% boom in the meat sector by 2022 due to a new (and growing) middle class. Africans are also starting to eat more meat, though the supply and demand are still not quite what they are in other parts of the world. """"""""


source: http://www.businessinsider.com.au/""Meat production and consumption in the industrialized world have radically increased since 1950. Overall, however, meat consumption has stagnated. In the U.S. there has been a 9% drop in consumption from 2007 to 2012 thanks to trendy low-meat diets and growing concern from customers over where meat comes from. It could also be due to recent meat scandals, including horse meat marketed as beef.


""Only a small percentage of the population in the U.S. and Europe describe themselves as vegetarians or vegans. It’s much more popular in India since Buddhism and Hinduism share beliefs about rebirth and the importance nonviolence that leads people to reject the consumption of meat due to the slaughter of animals.


"source: http://www.businessinsider.com.au/""For the secondary data collection in this study, some EU countries have been selected: Germany, United Kingdom, Italy, Spain, France, the Netherlands, Finland and Hungary etc.. The group of countries has been chosen, on the one hand, as a reflection of a mixture of European countries: middle Europe (Germany, UK, Netherlands), countries which have traditionally had the so called Mediterranean diet (Italy, Spain), France, which has its own ‘French paradox' as it comes to diets, Scandinavia (Finland), and Eastern Europe (Hungary). "Looking at all the countries together, the total amount of meat consumed has doubled in the past 50 years, from about 15 million tonnes to about 30 million tons, and it still seems to be rising slightly (Figure 1a). As for individual meats, Figure 1a shows that there are large increases in the total consumption of especially poultry, but also pig meat, whereas the total amount of beef consumed has been relatively stable for the last 40 years or so. The per capita consumption of all meats has also risen considerably over the last half a century, by almost 70%, but in the last 20 years it has stabilised (Figure 1b). "The most recent trend, however, is unknown, as, for example, the recent rises in food prices may have impacted meat consumption from 2008 onwards. (after the american and european crisis).

"source: FAOSTAT


"source:FAOSTAT "Kangaroo is in demand in Europe as a high protein, low fat component of small-goods, in fact the Kangaroo meat characteristic are: "The kangaroo meat belongs to the category of red meat, is very tender and the flavor is tasty and delicate, it can be enjoyed by all. It is rich in minerals and protein, but its main feature is to have a very low content of fat, especially saturated fat harmful for your health. Approximately 40% of the fat of the meat kangaroo fact consists of polyunsaturated fats, for which it has a percentage of only 55 mg of cholesterol per 100 g. It, therefore, good to all, especially to those who suffer from an excess of cholesterol and cardiovascular problems, to sports, to all the people who want to keep in line, children and the elderly because of its extreme digestibility. "link: .web_cucinabile_07.pdf "In Europe, the kangaroo meat arrives fresh and frozen. Fresh meat will keep in the refrigerator in its original packaging under vacuum for more than a month, the frozen, however, can be stored at the proper temperature for up to two years. A word of advice: Once opened, the kangaroo meat as any meat can tend to oxidize, so it is preferable to anoint the outside with olive oil to prevent a change of color. As for the cooking, the meat can be cooked quickly in a pan or on the grill, but also lends itself to more complex and other tasty dishes like roasts, stews, casseroles and stews. "link: http://gourmetgame.com.au/nutrition/nutritional-facts/


""4.2 Segmentation "The gourmet small-goods market is the obvious first market for developing interest in kangaroo deli meats. The industry should work with individual gourmet manufacturers/retailers to develop and test sample products, particularly through measures designed to capitalize on the variety seeking behavior of deli meat consumers’ such as: "• on-site tastings, • serving suggestions, • promotion of kangaroo deli meats for special occasions and • use of specialty items by the restaurant/hospitality trade. "Research is needed to gain a better understanding of consumers with a preference for well cooked red meat. This segment is large and at present it is assumed that kangaroo is simply unpalatable if cooked to this level, but is not true. "Geographic market segment identified: Europe, in particular Italy, French, Spain that have a similar culinary culture. Attention to the healthy food and the quality "Psychographic market segment identified: People that has a healthy life style, Nutritional health is essential to overall health,independence and quality of life in every people. The basic components of a healthy diet are well documented, the most frequently used framework for a healthy diet being ‘the eat well plate’ so the Kangaroo meat can be advertising like an healthy choice for an healthy lifestyle. "Target market identified: - Consumers: (private, home consumption), adult attentive to the quality of the food

*healthy life style - Business: Hospitality industry ( restaurant, the gourmet small-goods market..) """"""""""""""


""4.3 SWOT "

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STRENGTHS WEAKNESSES

A great message to sell, ( the industry delivers positive environmental benefits for the kangaroo population and rangelands.)

Supply is independent of demand (fluctuations due to seasonal conditions) limiting responsiveness in supply to increased demand.

A unique product Low recruitment rates of new harvesters.

Small low-tech meat processing systems.

Complex and variable regulatory environment.

Industry representative organisations have low funding levels.

Broad health benefits in meat identified for human consumption by medical organization, but public knowledge still limited.

Still some problems with consumer perceptions of kangaroo in a different culture like european.

European consumers increasingly more prepared to try new foods.

European hospitality industry (restaurants) still has a low uptake

At current prices and supply, Limited technical information sharing between processors, ( for example no benchmarking study.)

demand is exceeding supply. Product variability.

Taste can be challenging.

No generic product marketing.

The bulk of export production is sold to the consumer as ‘meat’ not ‘kangaroo’.

Low price points.


"

""""4.4 Profit "The EU meat sector is expected to be supported by strong demand on the world market, driven by improved economic conditions. In Europe, prospects of recovery in economic growth should leave consumers with more disposable income, allowing for a higher consumption of meat products. EU per capita meat consumption, which reached its lowest level for the past 11 years (64.7 kg retail weight) in 2013, is expected to recover from 2014 as more meat comes onto the market. In 2023, per capita consumption is expected to reach 66.1 kg, similar to the 2011 level. "In 2012, EU meat imports decreased further because of Argentina's policy of limiting exports in a context of limited beef production, while imports from Brazil and Uruguay remained quite stable. Consequently, imports were 4.4% lower (at 275 000 tonnes) in 2012 than in 2011 reaching their lowest level in the past decade and failing to make up for low domestic supply. In 2013, EU imports from third countries will grow by 10.6%, with rising shipments from Brazil and Uruguay, while volumes from Argentina (despite some expected recovery in production) will contract further. "data source: http://ec.europa.eu/agriculture/markets-and-prices/medium-term-outlook/2013 "

OPPORTUNITY THREATS

Strong good-will in government and public for wildlife utilization and improvements in rangeland sustainability.

Staff shortages due to buoyant Australian economy, high employment and some harsh working environments.

Improved exposure to kangaroo for trainee chefs.

Freight a relatively high component of product cost and margins are therefore highly sensitive to fuel costs.

Strong potential for international market growth (including small-goods),

Loss of access to high value export markets.

Improved pricing for red meats generally and demand for kangaroo exceeding supply may lead to potential for price increase.

No significant domestic manufacturing meat market.

Buoyant export demand for manufacturing meat.

Lack of confidence amongst consumers in how to use kangaroo meat may be limiting growth.

Room for new product development ( for example: ready to heat meals.)


"It is in this context of growth of imports that the Australia should fit, entering the market and carve out new types of products, as well, a unique market niche. "EU consumers eat roughly 35 million tonnes each year of the various meat types. This amounts to around 92 kilogammes per head per year on average (plus 5 kg per head of edible offals). Assuming that, we can suppose a percentage of 15% of kangaroo meats consume by the european, that it means: "15% of 92 kg (per head per year) = 13.8 kg the price per kg is $19.20 x 13.8 kg = $ 264.96 —> annual expenditure per head the traditional European family consists of 4 people $ 264.96 x4 = 1,059.84 $per family per year "The 15% of 35 million tonnes is 5.25 million tonnes —> hypothetical consume of kangaroo meat per year in EU 1 tonne = 1,000 kg 5.25 million tonne = 5,250,000,000 kg "5,250,000,000 kg x 19.20$/kg = 100 800 000 000 $ —> annual revenue "Assuming all above we can say that could be a potential annual profit of approximately 101 billion dollar for the export of kangaroo meat in Europe. """4.5 Legality "The Key rules on the import of fresh meat and meat products into the EU is that the Countries of origin must be on a positive list of eligible countries, as said above. The eligibility criteria are: -Exporting third countries must have a Competent Authority which is in charge of the inspection and certification of veterinary and general hygiene conditions; -The country or region of origin must fulfil the relevant Animal Health standards; -The national authorities must also guarantee that the Hygiene and Public Health requirements are met and that a monitoring system is in place to verify compliance with the maximum permitted level of residues of veterinary medicines, pesticides and contaminants. -Imports are only authorized from Approved Establishments (e.g. slaughterhouses, cold stores, processing plants), for which the national authorities have submitted guarantees; -An inspection of the Commission’s Food and Veterinary Office is necessary to confirm compliance. "


""4.6 Trade Barriers "Internal trade barriers: (within Australia, before exporting): "“Australia’s kangaroo industry began exporting kangaroo meat to Europe in 1959 in response to interest from the European game meat industry. Today kangaroo meat and skins are exported all over the world. The live export of kangaroos is prohibited under the Environment Protection and Biodiversity Conservation Act. There are a few exceptions where the purpose is noncommercial, such as inter-zoo exchanges. Where kangaroos are taken for commercial use, they must be killed by a licensed, fully trained hunter. (…) Animal welfare considerations are a priority of the Environment Protection and Biodiversity Conservation Act. Kangaroo harvesting and processing is subject to strict regulations and all hunters face penalties if they do not abide by the National Code of Practice for the Humane Killing of Kangaroos. Compliance with the Code is a licence condition for commercial shooters in all states. Kangaroo products processed for export (…) must undergo inspection by Australian Quarantine and Inspection Service (AQIS) officials. "The European Union and Russia are the most significant markets with the USA and Asia becoming increasingly important. All kangaroo meat processed for export undergoes strict inspection by the Australian Quarantine and Inspection Service to ensure that it is fit for human consumption. In addition, all kangaroo meat processing plants must have a certificate of registration and are examined and certified in accordance with the strict requirements of importing countries.” link source: https://www.dfat.gov.au/facts/kangaroos.html "The most significant problem for Australia is advertise as food, one of the emblems of the country itself: the Kangaroo. The industry kills an iconic wildlife species for commercial gain. It has been demonstrated via several intensive and independent investigations to operate humanely and sustainably, although there are still many vocal opponents who campaign actively against it. Due to the unique and emotive nature of the industry these campaigners readily attract wide media attention which the industry is constantly having to counter or address. ""

https://www.dfat.gov.au/facts/kangaroos.html


""4.7 Cultural Barriers "European tradition We realize that food and recipes are not the result of chance - or rather can be, but are mainly environmental and cultural conditions to ensure the continuity and fortune. Food and recipes become part of a system (geographic, economic, social, political, cultural, religious) a little how words and grammar rules are part of a language, that is the culture of a country. Within that structure, and within those rules there are exceptions. "Traditionally in Europe has always eaten veal, pork, lamb, chicken and game, and only in recent decades has spread to the “alternative” meat, seeing in the supermarkets exposed meat of ostrich, horse, buffalo, and recently even kangaroo. """"""""""""""""""""""""""""""""""


""5. Conclusion "In conclusion we can say that the consumption of meat is increasing, and thanks to that there are continuous new opportunities for export. Despite the identified target, Europe, is not part of the new emerging markets and therefore does not enjoy an exponential growth in consumption, we may affirm being business opportunity, especially for new types of meats. "Assuming that the consumption of kangaroo meat can reach 15% of total meat consumed in Europe, revenue is assumed very satisfactory and create high profit margins. (potential annual profit of approximately 101 billion dollar). "The market for kangaroo meat is still underdeveloped in Europe, then we identified an important market gap that also means low competition and potential hight profit. """5.1 Recommendations "To make kangaroo meat consumption more normal rather than a curiosity, the industry needs to take a proactive approach to promoting kangaroo as a gourmet alternative that carries health benefits and has a wide variety of uses. To make kangaroo meat and meat products more visible to consumers as an easy to prepare, inviting alternative to mainstream meats, the industry should work with manufacturers and retailers to develop and test sample products. The biggest impact is likely to be education about its use in a wide range of meals that reflect Australia’s ethnic diversity and the growing interest in gourmet foods, especially in market like Europe. Kangaroo mince presents the greatest potential increase in volume of kangaroo manufactured meat as a substitute for mainstream products (for example trim beef mince). """""""""""""""


""6. Appendices "Deepening about Nutritional Facts of the Kangaroo meat "The key highlights for kangaroo meat being: " • It has an energy (kilojoule) content that stacks up well against other lean red meats • It is a terrific source of high-quality protein • It is low in fat, with less than 2% fat • It contains low levels of ‘undesirable’ saturated fats • It is a source of heart-friendly omega-3’s • It contains CLA, which has antioxidant properties and may help reduce body fat in

humans • It is a particularly rich source of the minerals iron and zinc • It is an important source of several B-group vitamins, namely riboflavin, niacin, Vitamin B6

and Vitamin B12 • It has the Heart Foundation Tick of Approval* "Energy content: A 150g serve of kangaroo fillet or steak typically provides 643 kilojoules (that’s 153 calories). Let’s put this into perspective. For an average adult needing 8700 kilojoules a day, a 150g serve of kangaroo fillet or rump provides just over 7% of daily energy needs. That leaves 93% of kilojoules to come from other nutritious foods. The energy content of kangaroo meat stacks up well against other trimmed and lean red meats – take a look: "Energy (kilojoules) per 100g of raw meat Kangaroo fillet Lean beef fillet Trim lamb steak 429 kilojoules 608 kilojoules 582 kilojoules "ProteinWhen it comes to high-quality protein, kangaroo meat goes to top of the list. A 150g serve of kangaroo fillet provides an average adult with 66% of their daily protein needs. The best part is that the high-quality protein found in kangaroo meat comes with lots of taste and enjoyment. FAT

It’s a fact – with less than 2% fat, kangaroo meat is a champion lean meat. Even when stacked up against lean beef, trim lamb and lean, skinless chicken breast, kangaroo meat comes out trumps.

The good news doesn’t stop with the amount of fat in kangaroo, but also the type of fat. Kangaroo meat contains low levels of ‘undesirable’ saturated fats and proportionally higher amounts of ‘desirable’ unsaturated fats, namely monounsaturated and polyunsaturated fats. Unsaturated fats help to maintain heart health, so eating kangaroo meat is a welcome addition to the family dinner table.


The low total fat and saturated fat content of kangaroo meat should be good news to the ears of all Australians, including health-conscious consumers and those striving to look after their heart health.

OMEGA-3’S

Most people associate omega-3 fats with fish. It may come as a surprise that kangaroo meat is also a source of these heart-friendly, polyunsaturated fats.

A lab analysis1 carried out on Macro Meats kangaroo meat products confirmed our meats contain omega-3’s, specifically ‘long-chain omega-3 fatty acids’ which help support heart health and wellbeing. Kangaroo fillet and steak, for example, contains 74mg of long-chain omega-3’s per 100g of raw meat. Women typically need around 90mg of long-chain omega-3 fats per day and men 160mg per day4. So kangaroo meat is certainly a worthy contributor to omega-3 intakes.

CONJUGATED LINOLEIC ACID (CLA)

CLA is a ‘desirable’ fat found in kangaroo meat – which deserves a special mention. Research shows CLA has antioxidant properties and may help reduce body fat in humans5, which is good news to those watching their waistline. The CLA content of kangaroo was first brought to light in 2004, when a PhD student sponsored by the University of Western Australia and CSIRO found that the meat of kangaroo has valuable amounts of CLA when compared to that of other commonly eaten meats6. The CLA present in other red meats (e.g. beef, veal, lamb and mutton), is mostly present in the fat component, but it is also present in the muscle meat: between 10mg and 46mg CLA/100g of raw meat7. Regularly eating lean meat, including kangaroo meat, as part of a healthy, balanced diet is a sure fire way to boost CLA levels in the diet. "IRON

Iron is essential for energy production and it helps transport oxygen around the body. This ‘must-have’ mineral also plays a key role in brain development. Kangaroo meat is a particularly rich source of iron. In fact, a 150g serve of kangaroo steak or fillet provides 41% of the recommended dietary intake (RDI) for iron. In other words, more than half of an average adult’s daily iron needs will be met when they enjoy a 150g serve of kangaroo meat. "ZINC

The type of zinc being referred to here is dietary zinc – a mineral that’s essential for growth, wound healing and a strong immune system.

Kangaroo meat is a good source of this important mineral. A 150g serve of kangaroo meat2 provides over a quarter (28%) of the recommended dietary intake (RDI) for zinc. The other good news is that zinc found in animal foods, like red meat and seafood, is better absorbed than the iron from plant foods9. So when it comes to adding some ‘zing’ in your immune system and healing ability, a meal of kangaroo meat should be top of mind.

B-GROUP VITAMINS

Kangaroo meat is an important source of several B-group vitamins, namely riboflavin, niacin, Vitamin B6 and Vitamin B12. For example, a 150g serve of kangaroo loin fillet typically provides:


• 36% of the Recommended Dietary Intake (RDI) for riboflavin. Riboflavin is primarily involved in energy production and supports vision and skin10.

• 63% of the RDI for niacin. Niacin helps to release energy from carbohydrates and fat and also supports the digestive and nervous systems10.

• 80% of the RDI for Vitamin B6. This vitamin is needed for protein and carbohydrate metabolism. It also helps to manufacture red blood cells and regulate certain hormones10.

• Over 100% of the RDI for Vitamin B12. It helps to break down fats and proteins to produce energy. Vitamin B12 also plays a role to produce red blood cells and helps to maintain normal nervous system functions10.

"NATIONAL HEART FOUNDATION TICK OF APPROVAL

It’s heartening to know that the Heart Foundation’s Tick of Approval* has been granted to a variety of Macro Meats kangaroo products, including our:

• Kangaroo Steak

• Kangaroo Fillets

• Kanga Bangas (sausages)

• Kangaroo Mince

• Diced Kangaroo Meat

Our kangaroo meats pass the strict nutritional criteria set by the Heart Foundation and we are pleased to display the nutritional stamp of approval on-pack.

link data: http://gourmetgame.com.au/nutrition/nutritional-facts/

Exporting Kangaroo in Europe

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