Poultry Marketplace

Profile of the Canadian Ostrich, Emu and Rhea Industries

Table of Contents

1. Introduction
2. Background
3. Canada
   3.1 Population
   3.2 Slaughter
   3.3 Trade

   3.3.1 Trade Regulations

   3.4 Value of Industry
4. The Canadian Industry Today
   4.1 Government Participation
5. Opportunities
   5.1 Breeding Stock
   5.2 Meat
   5.3 Hides
   5.4 Oil
   5.5 Feathers
   5.6 Other Products
6. Conclusions
7. Index of Tables and Appendices

---

1. Introduction

Ostrich, emu and rhea, in common with all birds, belong to the class Aves. These are, however, flightless or 'running birds' with a flat breast bone (sternum) but no keel. The group, which belongs to various orders and families, includes ostrich, native to Africa (genus - Struthio); emu, native to Australia (genus - Dromaius); rhea, native to South America (genus - Rhea); kiwi, native to New Zealand (genus - Apteryx); cassowary native to Australia and New Guinea (genus - Casuarius) and the extinct moa native to Australia and New Zealand. It is only the first three of these - ostrich, emu and rhea -which are raised commercially in a number of countries. The generic name for these birds is 'ratite', however, there is a ground swell among producers to avoid the label 'ratite' as they believe that, particularly when it is used to describe meat, it has a poor connotation. Wherever possible this term has been avoided.

---

2. Background

Ostriches have been grown commercially in South Africa since the 19th century. At this time, they were raised principally for their feathers which were much prized in the fashion industry. As fashions changed around 1914, the industry collapsed and only started up again in the 1970s with hides as the major product. In South Africa, ostrich hides are still the major product.

Domestic production of ostrich in countries other than South Africa started in the 1970s, together with emu and to a lesser extent rhea. It was quickly realized that the birds are extremely hardy, will flourish in a variety of climates and do not require large tracts of land. Production spread quickly, and today emu and ostrich are raised in many countries including the USA, Australia, Israel, France, New Zealand, China, Korea, Zimbabwe, Botswana, Namibia, the United Kingdom, Belgium, Holland, Poland and Canada. Most producers today (with the exception of those in South Africa) are growing ostrich, emu and rhea for their meat, with the hides, feathers, fat, egg shells, and other parts of the birds as by-products.

Growth in any new industry starts with building breeding stock. Because it is a new industry there is a shortage of birds and high prices can be demanded for good stock. At this stage, millions of dollars can be made, and have been made, by buying and selling breeding stock in the form of hatching eggs, chicks, yearlings and proven breeders. As more and more people get into production, breeding supplies become plentiful and prices drop. In order to embark on commercial production, bird numbers have to be increased to a level where there are sufficient birds so that some can be taken out of breeding and slaughtered for meat. Once this level has been reached, it has to be maintained so that consistent supplies of meat can be generated.

Many countries in the world are moving simultaneously towards this point, but before a consumer demand for the meat and other products has been created.

---

3. Canada

• 3.1 Population
• 3.2 Slaughter
• 3.3 Trade
  • 3.3.1 Trade Regulations
• 3.4 Value of Industry

Ostrich farming has been well developed in South Africa for many years. Production in other countries started in the USA and Israel in the late 70s, as did commercial emu farming in Australia. The development of Canada's ostrich, emu and rhea industries followed these countries, and probably started about the same time as France and the UK. Canada is ahead of many other countries such as China, New Zealand, Korea and Brazil - a fact that is important today when markets are being sought for Canadian breeding stock.

Production started in Alberta in the late 80s with ranchers seeking an alternative to raising beef cattle. It spread to British Columbia and then to all other provinces across Canada.

The Canadian Ostrich Association (COA) was formed in 1991 to undertake activities for the promotion and understanding of the industry. It has 7 provincial association members from British Columbia to Québec. Prince Edward Island, Nova Scotia and New Brunswick also have provincial ratite associations which are not sanctioned member associations of the COA.

There are national emu and rhea associations also - the Canadian Emu Association and the Canadian Rhea Association. British Columbia, Alberta, Saskatchewan and Manitoba have emu associations and the PEI Ratite Association is affiliated to the Canadian Emu Association. Newfoundland does not have an association (Appendix I).

The national ostrich association and their provincial associations are well organized and active. Many of them publish Newsletters for their members, organize seminars and conferences, participate in trade shows, conduct research, lobby the government for changes and promote their products. Their members are generally articulate and pro-active.

There are also associations in many other countries and states - the US and most of its states , Australia , Italy, Hungary, Lithuania, Japan, Czech, Poland, Europe, Great Britain, New Zealand, China, and there is also an International Ostrich Association.

3.1 Population

The Agricultural Census of 1996 was the first year ratites were recorded. The 833 farms which responded gave the number of ostrich at 15,502. This compares with 16,713 ostrich reported in a 1994 COA survey. In the Agricultural Census, emu and rhea were not differentiated, and 967 farms responded with a total of 60,308 birds. (Table I) Flock sizes vary from 2 to 400 for ostrich, and up to a 1,000 for emu with the current average flock size estimated at about 30 for ostrich and 200 for emu.

Table I - Statistics Canada Census of Farms 1996

	Ostrich		Emu & Rhea
Province	No. of Farms	No. of Head	No. of Farms	No. of Head	Total Head
Nfld.	0	0	3	8	8
PEI	2	X	36	967	967
NS	3	32	8	83	115
NB	2	X	15	497	497
Québec	101	1,471	79	1,394	2,865
Ontario	87	1,179	356	44,495	45,674
Manitoba	71	1,330	117	3,444	4,774
Sask.	87	1,822	77	1,869	3,691
Alberta	341	7,696	190	4,423	12,119
BC	139	1,972	86	3,128	5,100
Canada	833	15,502	967	61,308	75,810

X - value suppressed for confidentiality reasons

3.2 Slaughter

Slaughter of ostrich, emu and rhea has increased from 17 in 1993 to over 13,000 head in 1997 and from 1 province only - Manitoba in 1993, to 7 provinces - BC east to NB in 1997. In 1997, the average unit weight of ostrich carcass was 54 kgs (119 lbs), of emu carcass 18.3 kgs (40.3 lbs), and of rhea carcass 12.6 kgs (28 lbs). (It should be noted that there were only 9 rhea slaughtered in only one federally registered processing establishment in 1997. The slaughter weight for rhea is generally considered much higher.) In 1997, 73% of birds slaughtered were in federally inspected establishments. In order to export or move interprovincially, slaughter must be performed in a federally inspected establishment.

Table II - Slaughter in federally and provincially registered establishments*

Year		1993	1994	1995	1996	1997
# of Provinces Slaughtering		1	4	7	7	7
Ostrich	Head	5	47	349	1,935	4,738
	Dressed Weight (kgs)	256	2,314	17,144	na	na
Emu	Head	6	12	193	1,519	5,707
	Dressed Weight (kgs)	82	130	3,295	na	na
Rhea	Head	-	-	28	117	100
	Dressed Weight (kgs)	-	-	364	na	na
Ratites*	Head	-	-	187	727	2,473
Total Ostrich, Emu and Rhea	Head	11	59	757	4,298	13,018

Source: Meat Hygiene Condemnation Statistics and Provincial Governments * not all provincial establishments collect weights and/or differentiate between ratite types

Federal and provincial establishments slaughtering ostrich, emu and rhea are listed in Appendix II.

3.3 Trade

Trade data for hatching eggs, live birds are given in Table III a, and for meat in Table III b.

Export data for eggs and live birds represent only those which have been health inspected and certified for export. These birds and eggs do not always end up being exported. The data given might, therefore, be higher than the numbers of actual exports.

Table III a - Trade in Hatching Eggs and Live Birds

	Exports	Imports	Exports			Imports
Year	Hatching Eggs		Ostrich	Emu	Rhea	Ostrich	Emu	Rhea
	nos.	nos.	head	head	head	head	head	head
1989	na	na	8	0	0	47	0	29
1990	na	na	9	0	1	153	0	44
1991	na	na	0	0	16	536	0	24
1992	na	na	0	0	0	315	8	48
1993	na	na	123	4	12	965	488	345
1994	0	203	454	0	0	1,185	475	133
1995	928	535	701	0	0	1,358	3,577	369
1996	1,936	303	179	224	0	6,054	1,529	388
1997	1,387	610	987	0	0	838	1,718	0
Jan-Oct 1997	1,387	610	795	0	0	829	1718	0
Jan-Oct 1998	88	103	234	199	0	108	198	0

Source: CFIA Health of Animal Database
Note: Export numbers are of eggs or birds certified for export. Not all eggs or birds certified are exported.
na - not available - prior to 1994 ratite hatching eggs were not differentiated

The numbers are inconsistent and difficult to interpret. It might be expected that imports of hatching eggs and live birds would increase as the industry increased and diminish as domestic breeding flocks became established. Certainly imports of live ostrich, emu and rhea diminished in 1997, but hatching eggs increased. This might be due to a movement in 1997 by US producers to reduce their breeding flocks by selling off hatching eggs. In 1998 this trend seems to have been reversed.

The majority of imports are from the USA but, according to the CFIA Live Import Data Base, since 1994, hatching eggs have also been imported from Namibia, South Africa and Zimbabwe, live ostrich from Great Britain, Namibia and Sweden, and live emu from Sweden.

Exports of hatching eggs and birds (or demands for export certificates) have increased, but not steadily. Since 1994, eggs and flocks have been certified for export to the US, Asia, South America and Oceania. As of November 1998, protocols have been established for exporting live birds and hatching eggs to 14 countries - see para 2.3.1 Table IV. Exports to the US have also taken place.

Meat data represents actual imports and exports received and/or shipped.

Table III b - Trade in ostrich, emu and rhea Meat - kgs

	Ostrich		Emu		Rhea
Year	Exports	Imports	Exports	Imports	Exports	Imports
1995	0	708	0	0	0	0
1996	2,404	1,617	0	33	0	0
1997	326	10,272	0	0	0	0
Jan-Oct, 1997	137	6,187	0	0	0	0
Jan-Oct, 1998	3,202	3,623	100	0	0	0

Source: CFIA Meat Hygiene Export Database, and Port of Entry Database Prior to 1995, ratite meat was not differentiated.

Meat exports are only just beginning. The first export was of ostrich meat in 1996, and exports have taken place each year since then, although not in great quantities. 1998 records the biggest increase Ostrich meat has been exported to the US, China, Japan, Brazil, Venezuela and France, and emu meat to the US.

When an industry is being established and consistent supplies are not always available, meat is often imported to fill supply gaps. As supplies become more consistent imports are expected to diminish. Imports are all from the US. Currently, due to falling breeder markets in the US this scenario of dwindling imports may be delayed. Many US producers, instead of retaining their stocks for breeding, have been sending their birds to market, and some of the meat has been imported into Canada at costs below domestic product. This has provided a constraint to Canadian producers in finding markets in a developing marketplace for their products.

3.3.1 Trade Regulations

To export and import live product and hatching eggs, protocols concerning such areas as disease, health status of flocks, product origin, testing to be performed by the exporting country etc. have to be established between partner countries, e.g. one of the requirements of the Canadian Health of Animals Regulations for live ostrich imported from the US is that it must be identified by a microchip. One of the requirements for imported hatching eggs is that they must be accompanied by a certificate certifying that the flock from which the eggs originated is free of certain listed diseases. These are just two examples of requirements, but there are many more. Each country has its own specifications which imported products have to satisfy. Each shipment is accompanied by a certificate signed by a federal veterinarian confirming that the conditions of the protocol have been met. Often birds have to be segregated in Canada prior to shipment and quarantined in the importing country.

As of November 1998, Canada has protocols with 14 countries (for ostrich, emu or rhea). The breakdown is given in Table IV below. Protocols are only valid for the periods specified, so potential exporters must check with the Canadian Food Inspection Agency to confirm that the protocol is still in place.

Table IV - Countries with which Canada has a protocol for the purpose of exporting ratites

	Ratites			Ostrich			Emu			Rhea
Country	Adult	Chicks	Eggs	Adult	Chicks	Eggs	Adult	Chicks	Eggs	Adult
Australia				x
Brazil				x
Ecuador				x
Chile				x	x	x	x	x	x
China		x	x	x			x			x
Dominican				x		x
Great Britain	x		x
Hungary						x
Japan				x		x	x		x
Korea	x	x	x
New Zealand						x			x
Philippines				x			x
Poland	x		x
Taiwan	x

Source: CFIA
Note: Eggs = Hatching Eggs
         Chicks = Day Old Birds

Similarly, to export meat, the demands of the importing country have to be met. These could cover veterinary, sanitary, packaging, labelling and special slaughter requirements. Usually, for exports, this means that the slaughter establishment has to be inspected and approved by the importing country. Selected Canadian establishments have exported ostrich and emu meat to the US, Brazil, Venezuela, Japan and France.

For the European Union (EU), ratite meat falls under the jurisdiction of each individual member state, however the EU has recently decided that 'for health reasons' ratite meat will not be imported from EU approved plants in third countries until October 1, 1999. However, each member state can still make its own decisions. A number of member countries have approved Canadian establishments (see Appendix VI), but the UK is the only member state which has approved ratite meat specifically from 2 Canadian establishments.

Further information about meat exports and each country's specifications is available from the CFIA Meat Hygiene Manual of Procedures -
http://www.inspection.gc.ca/english/anima/meavia/mmopmmhv/mane.shtml

It is the exporter's responsibility to ensure that the product is acceptable to the authorities of the importing country and that all the requirements of the importing country are being met. Potential exporters are advised to work with a broker who is familiar with such things as regulations, payments, Custom & Excise procedures etc.

3.4 Value of the Industry

Prior to the large drop in breeding stock prices, the ostrich, emu and rhea industries were together estimated to be worth about $1 billion. This was based on numbers of birds and their uses and the price of breeding stock, meat and hides. Currently it is probably below this due to falling prices of breeding stock meat. The number of producers has also dropped, although the number of birds may not have fallen proportionally.

In 1998, ostrich breeding stock ranged from $20 to $50 for hatching eggs, $100 for chicks, $500 for yearlings and $2,500 to $2,000 for proven breeders. Prime ostrich meat cuts wholesale for $8-$10./ kg ($18-$22./lb), with lesser cuts selling for as low as $5./kg ($11./lb). Green ostrich hides fetch $60 to $150 or $22/sq foot cured. Emu hatching eggs sell for about $25, 3 month chicks $50-$100 depending on size, yearlings $1,000 each and proven breeders $3,500-$4,000. Emu meat is being sold for $17/lb for prime cuts, $15/lb for 2nd cuts and $7/lb for ground meat. 6 burgers retail for $8.95 - these are 60% emu and 40% veal. Emu oil sells for $8-12/oz depending on the volume. The wholesale price of 2 oz is about $10.

---

4. The Canadian Industry Today

• 4.1 Government Participation

Today the ostrich, emu and rhea industries are facing new challenges.

Lured by the high selling prices of breeding stock and the relatively low input of maintenance and overhead costs, together with small land base needs, many people embarked on the production of ostrich, emu or rhea. The number of entrants in Canada has now peaked and would-be suppliers of breeding stock are having difficulty finding buyers in Canada. In addition, markets for the meat and other products have not developed as quickly as anticipated.

Producers have a number of options, all of which are being exercised.

1. leave the industry;
   
2. develop industry related specialities e.g. computer software, equipment, crafts, cooking/catering, transportation, feed, speaker etc.;
   
3. specialize within the industry e.g. feed lot, hatching, breeding, feathers, hides, oil, etc.;
   
4. maintain a few birds as a hobby or secondary source of income.

Like any fledgling or niche industry it is probable that many producers will elect for the first option. Many will continue producing as a hobby or secondary source of income, some will diversify, and a few will survive as mainline producers (option c). Whichever road producers follow (even option a)), they all have to find markets for their products.

Producers from group c) are forming marketing cooperatives, marketing and export companies and corporations, and establishing joint ventures with producers in other countries. Some of the major cooperatives, consortia and alliances are listed in Appendix III.

4.1 Government participation

To date, federal and provincial financial assistance has been provided to the industry in the form of grants and loans of about $1.1 million. Projects which have been supported include production methods, slaughter and cutting techniques, oil research and marketing (Appendix IV). These are all projects which are important to a new industry. However, at this stage in order to ensure the viability of the industry, it must concentrate its efforts on marketing.

In order to continue to qualify for further federal financial assistance the industry must develop a marketing strategy (AIMS) and focus on activities which will maximize its domestic and export marketing opportunities.

One of the drawbacks to seeking government funding is that it is almost always allocated on a cost shared basis, and the industry is not always able to put up matching funds. This burden would be shared if the industry would work together more. The industry generally sees each sector as being quite distinct, i.e. ostrich, emu and rhea and seems reluctant to embark on marketing projects involving all three sectors as they perceive each sector to be in competition. This is not necessarily the case. Producers could form a Canadian "Ratite" or "Flightless Bird" Association, pool resources, embark on an AIMS (Agricultural Industry Marketing Strategy), and be eligible to apply for additional government funding. Other, equally divergent sectors have already organized themselves, e.g. Canada Beef Breeds Council (an umbrella group for some 40 national beef breeding associations such as the Canadian Hereford Association, the Canadian Angus Society, the Canadian Limousin Association etc.), the Canadian Seed Trade Association representing 185 companies dealing in seeds such as corn, turf, peas, canola, soybean etc., the Canadian Special Crops Association representing buckwheat, canary seed, sunflower seed, mustard, lentils, peas and beans, the Canadian Dairy Genetics Exporters Group (representing all breeds in Canada e.g. Holstein, Ayrshire, Jersey etc.), and the Canadian Raw Fox, Mink and Wild Fur Group.

The objective of the AIMS process is to encourage Canadian agri-food sectors to develop and implement market responsive strategies that increase the sales of agri-food products and serve as a framework for industry/government collaboration. Funding for the program is cost-shared by government and industry and delivered by five federal government departments which are partners in AIMS: Agriculture and Agri-Food Canada, the Department of Foreign Affairs and International Trade, Western Economic Diversification Canada, Canada Economic Development for Quebec Regions and the Atlantic Canada Opportunities Agency.

---

5. Opportunities

• 5.1 Breeding Stock
  
• 5.2 Meat
  
• 5.3 Hides
  
• 5.4 Oil
  
• 5.5 Feathers
  
• 5.6 Other Products

5.1 Breeding Stock

Currently breeders are in a slightly better position than meat producers as there are still a number of countries 'riding the wave' and just getting into production and purchasing breeding stock. Canada is having some success exporting breeding stock to China, New Zealand, South Korea and South America. Most importing countries have very strict quarantine requirements for the birds in Canada before they are shipped and once they reach the importing country. Exporters have to be prepared to spend a lot of time preparing and often accompanying shipments and ensuring that farmers in importing countries have adequate accommodation, and management skills to raise the birds.

5.2 Meat

Ostrich, emu and rhea meats are low fat, low cholesterol red meats which look and taste something like beef, although ostrich and emu have a somewhat 'stronger' flavour. Because it is so low in fat, it needs skill in preparation so that it does not become tough and fibrous. Currently, mostly due to high processing costs, it is expensive and virtually unknown outside of producers and a few high priced restaurants and speciality retail stores although producer groups are working hard to get it on supermarket shelves. To do this, and to obtain greater exposure in restaurants outside of the 'white linen' variety, the industry will have to provide controlled portions.

If consumer acceptance is achieved, the price reduced and consistent supply available, ostrich, emu and rhea can provide low fat red meats providing yet another meat choice to consumers who increasingly demand gastronomic variety. As management practices improve, prices will assuredly fall.

The Agriculture and Agri-food Canada Research Station at Lacombe, Alberta has, with the help of the industry developed sub primal meat cuts for ostrich. The Canadian Food Inspection Agency assigned names for each sub primal muscle. These are used by the majority of processors. Research into meat quality, yields, stress and transportation practices for ostrich and emu is also conducted at the Station.

Rather than developing a carcass grading system, as was done for beef, pork, lamb and poultry, which would add additional cost to the product, the Canadian Ostrich Association has been trying to adopt a "Seal of Excellence" for quality meat and meat products which meet certain criteria of age, medication withdrawal, shipping, microchip positioning, processing and packaging. The actual seal is in the form of a logo applied to the packaging. This program has not been as successful and widespread as was hoped, perhaps due to the cost to producers. This is unfortunate as consumers and importers are generally more comfortable with standardised products.

As more experience is gained in feed lot raising of ratites, it is likely that breeds and feeding programs will become more uniform, and the quality of the resulting meat more predictable.

Further processed meats are also being marketed. Ostrich and emu jerky has been available for some time and is quite successful. Emu burgers and sausages mixed with veal are expected to be in supermarkets in Ontario, Québec and the Maritimes by the end of 1998. Other products available include sausages, pepperoni, salami and deli cuts. Specially prepared meat such as medallions and kebabs are also available.

5.3 Hides

The texture of hides depends, among other variables, on the breed of ratite, the climate in which they are raised, and nutrition. The quality of the hide is largely dependent on the (lack of) scarring and rips, and on the tanning process.

Canadian hides tend to be thicker than those from birds grown in warmer climates, but for boots and heavier clothing the thicker hides are favoured. For wallets and delicate clothing softer hides are preferred. Ratite hides are distinctive for their "quilling" - the depressions in the hide remaining when the feathers are plucked. Some breeds (e.g. Red Neck Ostrich) yield a heavy bird with a large hide but a low quill to hide ratio. Others (e.g. African Black Ostrich) yield a small bird with a smaller hide and a high quill to hide ratio.

A few years ago all ostrich hides were imported from South Africa via England where they were tanned. As prices increased and domestic tanners developed more skills, Canadian based leather manufacturers started using domestic hides which are 25% cheaper.

It has been speculated that the success of ostrich farming rests on a good return for hides, although markets for hides, as with other products, are dependent on many global factors such as supply, demand and cost.

Emu hides are much softer than ostrich hides. They are also much smaller. Rhea hides tend to be thicker than those of emu and more durable.

There are at least two companies in Canada tanning ratite hides one in Ontario and one in Saskatchewan.

5.4 Oil

Ratite oils are rich in fatty acids. For ostrich, this is predominantly palmitic acid. For emu and rhea, it is predominantly the mono-unsaturated oleic acid. Ratite oils are used extensively in the cosmetics industry, particularly in Australia and the USA. They are reputed to have exceptional moisturizing, penetrating and therapeutic qualities for humans and animals. Some clinical testing has been undertaken in the US and Australia, which indicates that emu and rhea oils may have anti-inflammatory properties and possibly skin de-sensitizing properties. However, the active component or components have not yet been isolated. Unsubstantiated claims about the properties of ratite oils cannot be used in marketing products, although there is sufficient anecdotal data available about the healing properties of emu and rhea oils to warrant research. In Canada, oil and cosmetics using ratite oils are sold in health food stores, at farm gate and by catalogue.

Processing facilities in Canada are rare and much of the emu fat is processed in Texas and shipped back to Canada as oil. The fat has to be shipped in refrigerated containers which makes it a costly transaction. Canadian Emu Oil Limited (http://www.emu.ca/) located on Vancouver Island is one of the few emu oil renderers in Canada which renders and refines emu oil. Another is Gauthier Emu Ranch in Ontario (see Appendix V). Canadian Emu Oil Limited has a line of products available. All their oil meets or exceeds the International Emu Oil Guidelines defined by the American Emu Association (AEA) (http://www.aea-emu.org/). The AEA has an 'Oil Standards Team' with members from Canada, Australia and the US. This Team is developing "industry guidelines and standards to help assure the profitable growth of safe global ratite oils markets."

An adult ostrich yields about 3-4 litres oil, an adult emu 4-5 litres, and an adult rhea 4-6 litres, but these volumes are very dependent on age of the bird, its weight and its feed.

It is likely that just as the financial viability of the ostrich industry is dependent on hides, the financial viability of the emu and rhea industries rests on the success of their oils.

5.5 Feathers

The market for feathers was at its height in the early years of the century when they were popular as fashion adornments. Today the fashion market for feathers is limited. They are used in crafts, but this market also is small. New uses are being researched, and currently the most popular is the use of feathers to attract dust particles in the automotive paint and computer assembly industries.

Currently in Canada most feathers are treated as a waste product.

The Ostrich Connection (http://www.ostrich.com/feather/featherindex.html) manufactures, distributes and sells ostrich feathers. Their sale prices range from US33 cents to US$9.90 for 1 feather, depending on the size, treatment and quality. They also list prices for bulk sales.

5.6 Other Products

Empty hatching eggs are widely used by artisans for painting and carving. Shells from hatched eggs are processed into calcium supplements. There has been talk of claws being used by jewellers and eyes for medical purposes but usage is limited, or has not been developed. Also, there are markets for skulls and ostrich feet - one purchaser is listed at: http://www.skullsunlimited.com/. The use to which the bones are put is not specified.

Rhea and ostrich muscles contain high quantities of ATP (adenosine triphosphate) and have been used in treating auto-immune disorders such as Crohn's, fibromyalgia, lupus etc. As with the oil, there is a great deal of research to be done in this area, but results so far suggest there is opportunity, not just for the oil, but for other parts of rhea and ostrich and emu to be developed as nutriceuticals or functional foods.

---

6. Conclusions

The life cycle of any industry - whether agricultural or technical - exhibits the same evolutionary trends. Development begins fairly slowly, accelerates, peaks and then either levels off, or continues to grow but at a slower rate. Industries which are not successful eventually die out. With the exception of the final potential phase, this evolutionary cycle can be clearly observed in the ostrich, emu and rhea industries and can be measured by the number of producers and the volume and value of transactions.

In the late 80s and early 90s many producers were entering the industry and in order to get started they were purchasing breeding stock at extremely high prices. In 1994 it was not unusual for ostrich hatching eggs to be sold for $1,000 each and an unproven breeding pair for $22,000. As flock numbers increased it became necessary to find an end market for the products generated. Producing breeding stock could not be an end in itself for all producers as the number of new entrants did not increase indefinitely. Markets had to be found for ostrich, emu and rhea products - meat, oil, feathers and hides. At this point the number of transactions levelled off as existing producers reduced their breeding stock purchases and began raising their own breeding stock, as the number of new entrants dropped, and as some existing producers got out of the business.

Today, ostrich hatching eggs sell for $20 to $30 and proven breeding pairs for $5,000. And not only the value, but the volume of transactions is drastically reduced. There are fewer producers, although not fewer ratites. Existing producers are still increasing their flocks, but they are raising mainly commercial birds for slaughter. Ostrich, emu and rhea meat is gradually gaining acceptance in Canada. In the long term, given many factors - including healthy flocks, adequate processing establishments and full utilisation of oil, but above all costs of production which are competitive with other meats, there is every likelihood of the meat becoming part of the Canadian diet.

When the industry started and entrants were making a lot of money, there was a good deal of cooperation among producers. Associations flourished and with them seminars, conferences, joint exhibitions and Newsletters. Now that 'times are tough' and there is even more need to work together, many producers have withdrawn from the associations, have become protective of their own markets and interested only in furthering their own operations. A strong industry is not one in which producers are working in isolation or against each other, but one where they work together, pool information, pool resources and together succeed.

All producers are seeking markets for their products, and many have expressed the need for financial help from the provincial or federal governments in order to mount promotion campaigns in the form of brochures, posters, attendance at Trade Fairs etc. The majority of government monies available are cost shared with industry and many producers have invested so heavily in supplies (stocks, feed, equipment, housing, slaughter facilities etc.) that they are unable to raise matching funds. It is to the industry's advantage to work together at all levels and come to Government as a unified body to work out a strategy for moving the industry forward. By pooling limited resources and working together with matching government resources more can be accomplished than by individuals working in isolation.

---

Index of Tables and Appendices

Tables

1. Statistics Canada Census of Farms 1996
2. Slaughter in Federally and Provincially Registered Establishments 1993-1997
3. Trade in:
   1. Hatching Eggs and Live Birds
   2. Ostrich, Emu and Rhea Meat
4. Countries with which Canada has a protocol for Ratite Hatching Eggs and Live Birds

Appendices

1. Ratite Associations:
   1. National
   2. Provincial
   3. International
2. Federal and Provincial Establishments Slaughtering Ratites 1997
3. Canadian Ratite Cooperatives, Consortia, Alliances, etc.
4. Government Supported Ratite Projects
5. Selected Internet Ratite Sites and Ratite addresses
6. Canadian EU approved establishments for Meat and Meat products (as of February 23, 1999) -

---

Appendix II: Federal and Provincial Extablishments Slaughtering Ratites 1997

O = Ostrich
E = Emu
R = Rhea
Source: CFIA, OMAFRA, Alberta Agriculture Food & Rural Development, Quebec

---

Appendix III: RATITE COOPERATIVES, CONSORTIA, ALLIANCES ETC.

Canadian Ostrich Ltd. Unit 210, 4320 Viking Way Richmond, BC V6V 2L4 Tel.: (604) 541-6179 Harold Harms	An ostrich marketing company working with the BC Coop (Fraser Valley) to market their meat and hides. Hides are tanned in BC (BC Fur) and some have been exported to Japan. Having problems finding markets for meat.
Canadian Pride Ostrich International Contact: Faye Street Meadow Spring Ostrich Ranch P.O. Box 300 Jaffray, BC V0B 1T0 Tel.: (250) 429-3402 Fax: (250) 429-3617 Cell: 250-426-9827	A team of ostrich ranchers from across Canada with associate members in Australia, New Zealand, United States, Europe and South America which trains ostrich ranchers in all aspects of ostrich production including breeder management, feed programs, building design, incubation etc.
Fraser Valley Ostrich Marketing Coop Contact: Rick Hallwachs 10345, 212th Street Langley, BC V1M 3J6 Tel./Fax: (604) 882-8718
Prime Ostrich Products International Inc. 8702a - 98 Street Morinville, Alberta T8R 1K6 Tel.: (403) 939-3804 Fax: (403) 939-4888 Michelle Danyluik, Marketing Director	Private family owned company associated with the feed company Canadian Agri-Blend Ltd. Buys meat from producers all across Canada and markets domestically and internationally (started this year in South America). Offers a full range of meat products. Trying to ensure that producers use approved feed to give low fat, high protein meat. Two slaughter establishments used.
Transcontinental Ostrich Products Inc. Box 13, Site 1, RR # 1 Calgary, Alta T2P 2G4 Tel/Fax: (403) 949-3249 E-mail: top@cadvision.com Kim French, Vice President	The company arranges for bird slaughter and meat storage in return for hides. If required, markets meat.
Agribird Marketing and Sales Inc. Suite 844, 105-150 Crowfoot Crescent NW Calgary, Alta. T3G 3T2 Tel: (403) 932-5757 Fax: (403) 932-7564 E-mail: jbarnes@compusmart.ab.ca Judy Barnes	Ostrich Marketing, Promotional and Business Planning - international marketing of live birds, hatching eggs and meat (also markets alternative species such as bison, wild boar, elk etc.)
Saskatchewan Ostrich Products Cooperative Ltd. Contact: Janet Jeannotte Box 40 Barthel, Saskatchewan S0M 0C0 Tel./Fax: 306-837-4541 E-mail: jostrich@sk.sympatico.ca
Comet Contact: Ray Buisse, Director Box 9, Group 545, RR #5 Winnipeg, Manitoba R2C 2Z2 Tel.: (204) 224-2033 Fax: (204) 224-4019	Ostrich Export and Marketing Team -international marketing of live birds and hatching eggs
Ostrich Products and Marketing Co-op Ltd. Box 56 Teulon, Manitoba R0C 3B0 Craig Murphy Tel.: (204) 886-2342 Fax: (204) 886-3969
Canadian Emu Cooperative Inc. Contact: John Hicknell RR #1 Sebringville, Ontario N0K 1X0 Tel./Fax: (519) 393-5728
Oxford Exotics Contact: Peter Weil Box 461 Tavistock, Ontario N0B 2B0 Tel.: (519) 462-2863 Fax: (519) 462-1190	3 farms offering sales service support
Ostrich Producers of Ontario Tel.: (905) 584-0199 Fax: (905) 584-4064 Patricia Raso	A marketing coop for live birds
Coopérative des producteurs de ratites d’excellence du Québec Serge Bourdon Tél.: (514) 796-4467 Fax: (514) 796-4469
PEI Emu Coop c/o Mrs. Chris Judson, President R. R. #3 Belle River, PEI C0A 1B0 Tel.: (902) 659-2600 Fax: (902) 659-2700 e-mail: judson@isn.net	Formed in 1997. Birds are slaughtered in Nova Scotia and the meat returned to PEI where it is butchered and packaged at the PEI Food technology Centre. The Coop is also working with the Atlantic Veterinary College on clinical and other testing of other emu products, e.g. oils which will result in some published material.

---

Appendix IV: RATITE PROJECTS FUNDED BY FEDERAL AND PROVINCIAL GOVERNMENTS

Total government funding: - $1,138,855 (of which about 20% is a repayable loan)

---

Appendix V: Selected Internet Ratite Sites and Ratite Addresses

There are many ratite sites on the Internet, most of them commercial, although even these usually provide plenty of general information about the birds, their history and hints for raising them.

The Ostrich Connection links to ostrich, emu and rhea producers, associations, marketing companies, equipment suppliers etc.

Ostriches Online has many links to all areas in the industry. It also provides bibliographic references for ostrich, emu, rhea and cassowary -
http://www.ostrichesonline.co.za/

A few companies which do not have internet sites, but which provide useful services are also listed.

General

Canadian Ratite Home Page - Bibliographic references to Emus, Ostriches and Rheas in Canada, United States and Internationally
http://homepage.usask.ca/~kfl094/ratalt.htm

Alberta Agriculture - Commercial Ostrich Industry
http://www.thepoultrysite.com/articles/228/ratite-production-ostrich-emu-and-rhea

Alberta Agriculture - Commercial Emu Industry
http://www.thepoultrysite.com/articles/228/ratite-production-ostrich-emu-and-rhea

Alberta Agriculture - Commercial Rhea Industry
http://www.thepoultrysite.com/articles/228/ratite-production-ostrich-emu-and-rhea

Manitoba Ostrich Skills Training - a comprehensive ostrich industry program
http://www.cometcanada.com/

Ratite Meat Industry - University of California Cooperative Extension Services
http://animalscience.ucdavis.edu/Avian/pfs17B.htm

Texas Agricultural Extension Service - Emu Production
http://gallus.tamu.edu/Extension%20publications/emuproduction.pdf

Ostrich Production
http://gallus.tamu.edu/Extension%20publications/ostrichproduction.pdf

Planning for Profit - Emu Breeding Stock
http://www.agf.gov.bc.ca/busmgmt/budgets/budget_pdf/poultry/emu.pdf

Planning for Profit - Ostrich Breeding Stock
http://www.agf.gov.bc.ca/busmgmt/budgets/budget_pdf/poultry/Ostrch98.pdf

Commercial

Blue Mountain Ostrich Meats (supplier)
http://www.blue-mountain.net/

Canadian Emu Oil Limited - emu oil renderer
http://www.emu.ca/

Conklin Ratite Products
http://www.conklin-web.com/ratites/frame3e.htm

CyberCervus International - Wildlife industry on the Internet. Bison, elk/wapiti, red deer, reindeer, fallow deer, white tail and mule deer, llamas, alpacas, ratites etc. International registry of farms, businesses and associations, stock prices, coming events, a forum for discussion, a bibliography of background materials and links to
other reports
http://www.cybercervus.com/

The Davis World Wide Emu Page
http://mars.ark.com/~emuzing/

Di-Four Distributors - of emu oil
http://www.emuoil.com/index.htm

GCR - information about rhea products and their development
http://rhealiving.com/

Gauthier Emu Ranch,
3838 Bertie Street
Stevensville, ON
L0S 1S0
(905) 382-3838
gauthierranch@softcom.ca - oil rendering

InnerSense International Inc. - a company producing natural nutritional supplements
http://members.tripod.com/~abrecycl/innersen.htm

International Ostrich Corporation - meat marketing

Johnson Emu, Inc. - US vertically integrated operation
http://www.blue-emu.com/facts.shtml

Longview Farms - emu oil products
http://www.longviewfarms.com/

Marini Leather Company - tans ostrich, emu and rhea hides
http://www.magma.ca/~marini/

Maverick Tannery and Leathers
Box 1795
Unity, Saskatchewan
S0K 4L0,
Tel.: (306) 228-3737
fax: (306) 228-4422; Ernie Stabler;
E-mail:curtis.hepting@sk.sympatico.ca (Hal & Brent Hepting) - hide tanning

N'Kobi Industries Inc. - Incubators, hatcheries and their air quality control equipment for big birds (ratites) are described
http://www.nkobi.com/

Ostrim (facts about this ostrich snack)
http://www.netrition.com/ostrim_page.html

R&M Ostrich Farms - supplier of chicks, eggs, feed, incubators, hatching equipment etc
http://www.rm-ostrich.com/

Rhessénce - a company selling rhea oil based products
http://www.internet-kent.com/Healthyou/RheaOil.htm#Rhessence

Southwest Connections - supplier of ostrich hide products
http://www.southwestconnections.com/

---

Appendix VI: EU List of Approved Canadian Establishments Products of Animal Origin (excluding dairy)

Animal Casings

No.	Name	Address	Date Approved	Date Deleted
1	BURNS MEAT LTD.	WINNIPEG, MANITOBA	Yes
4	FEARMANS INC.	821 APPLEBY LINE, BURLINGTON, ONTARIO	Yes
14	TORONTO ABATTOIRS LTD	2 TECUMSETH STREET, TORONTO, ONTARIO	Yes
51	BETTER BEEF LTD	781 YORK ROAD, GUELPH, ONTARIO	Yes
53	ABATTOIR COLBEX INC.	SAINT-CYRVILLE DE WENDOVER, QUEBEC	27/05/1999
76	VIANDE RICHELIEU INC.	MASSUEVILLE, QUEBEC	27/05/1999
93	CARGILL LTD	472 AVENUE AND HIGHWAY, 2A NORTH, HIGH RIVER, ALBERTA	Yes
98	ABATTOIR LES CEDRES LTEE	LES CEDRES,QUEBEC	1/1/1999
121	CANADA NEW ZEALAND CASINGS (1992) LTD	630 RUE WHITE STREET, ST LAURENT, MONTREAL, QUEBEC	Yes
136	CWFC CANADA WEST FOODS (ALBERTA) CORP. (CANADA WEST FOOD CORPORATION)	INNISFAL ALBERTA	Yes
147	SOCIETE EN COMMANDITE OLYEMEL #1/OLYMEL #1 OLYMEL #1 AND COMPANY LTD	BEAUCE, QUEBEC	1/1/1999
236	MONTOUR LTD	555 RUE PORT ROYAL OUEST, MONTREAL, QUEBEC	Yes
262	MGJ PACKERS INC. (MULLER'S MEATS LTD)	KITCHENER, ONTARIO	1/1/1999
334	CONTINENTAL CASING (1976) INC	450 ST SIMON STREET, ST MADELEINE, QUEBEC	Yes
390	F MARIE LTD	123 DENISON STREET, MARKHAM, ONTARIO	Yes
394	620577 SASKATCHEWAN LTD (TIA WAN PORK INC: TAI WAN PACKERS INC)	MOOSE JAW SASKATCHEWAN	1/1/1999
402	OVERSEA CASING CO. LTD	22958 FRASER HIGHWAY, LANGLEY, BRITISH COLOMBIA	Yes
514	CANADIAN NATURAL CASINGS LTD	116 RYDING AVENUE, TORONTO, ONTARIO	Yes
531	QUALITE NATURELLE CHAMPLAIN LIMITER	11051 RUE MIRABEAU, VILLE D'ANJOU, QUEBEC
262A	MAPLE FREEZERS INC. (MGI PACKERS INC.) (MULLER MEATS INC.)	KITCHENER, ONTARIO	1/1/1999

Categories

SL:	Slaughterhouse

(1)	Packaged meat only
(2)	Packaged offal only
(3)	Livers and kidneys excluded
(4)	Including bison
T	The establishments with the indication 'T' are authorized, within the meaning of Article 4 of Directive 77/96/EEC, as last amended by Directive 94/59/EC, to perform the examination for detection of trichinae, provided for in Article 2.
TF	The establishment is authorized, within the meaning of Article 4 of Directive 77/96/EEC, to perform the freezing treatment provided for in Article 3 of the same Directive.

Categories

SL:	Slaughterhouse
CP:	Cutting Premises
CS:	Cold Store
B:	Bovine Meat
P:	Pigmeat
SP:	Meat from solipeds
SR:	Special Remarks

Fresh Poultrymeat

No.	Name	Address	SL	CP	SR	Date Approved	Date Deleted
63	NORTHERN GOOSE PROCESSORS LTD.	TEULON, MANITOBA	*	*		13/103/98
123	PEMBINA POULTRY PACKERS LTD.	MORDEN, MANITOBA	*	*		12/12/1996

Catagories

SL:	Slaughterhouse
CP:	Cutting Premises
SR:	Special Remarks

Meat Preparations

No.	Name	Address	SR	Date Approved	Date Deleted
449	ALIMENTS LE NATUREL SKOULAKIS ENR.	65 RUE PEPIN, ST EUSTACHE, QUEBEC J7R S84	UK only	Yes

Categories

SR:	Special Remarks

Meat Products

No.	Name	Address	SR	Date Approved	Date Deleted
170	WING WING COMPANY LIMITED	VANCOUVER, BRITISH COLOMBIA	6 TF	26/03/1997
55B	CAMPBELL SOUP COMPANY LTD/LES SOUPES CAMPBELL LTEE	LISTOWEL, QUEBEC	6	26/03/1997

6	Countires and establishments complying with all requirements of Article 2(1) of Council Decision 95/408/EC.
TF	The establishments with the indication "TF" are authorized within the meaning of Article 4 of Directive 77/96/EEC to perform the freezing treatment provided for in Article 3 of the same Directive

Categories

SR:	Special Remarks

Rabbit Meat And Farmed Game Meat

No.	Name	Address	SL	CP	SR	Date Approved	Date Deleted
287	CANADIAN EMU PRODUCTS INTERNATIONAL INC	NIAGARA, ONTARIO, LOR 1YO	*	*	Ratites (UK only) b	27/10/1997
506	BOUVRY EXPORT CALGARY LTD	PO BOX 2024, FORT MACLEOD, ALBERTA TOL 0Z0			emu/ostrich (UK only)	27/10/1997

b	Bi-Ungulates

Catagories

SL:	Slaughterhouse
CP:	Cutting Premises
SR:	Special Remarks

Wild Game Meat

No.	Name	Address	WG	SR	Date Approved	Date Deleted
54	EDMONTON MEAT PACKING LTD	EDMONTON ALBERTA	*	a	10/5/1998

Categories

WG:	Wild Game Processing
SR:	Special Remarks

This list is maintained on a daily basis, and every effort is made to ensure that it is accurate. Trade conditions can however change very frequently, and the Ministry of Agriculture, Fisheries and Food can accept no liability for any loss caused by reliance on information in this list. In the case of any doubt, importers are advised to check the latest position with:

International Trade (Animal Products) Division,
Ministry of Agriculture, Fisheries and Food,
Government Buildings, Hook Rise South, Tolworth,
Surbiton, Surrey, KT6 7NF
(Tel: 0181 330 8340/8343; fax: 0181 337 3640).