Structure and dynamics of australia's commercial poultry and ratite industries

Summary of industry change since 2005

The salient changes within the Australian poultry industry since 2005 are summarised for each of the industry sectors.

• 
  Chicken Meat
  

Since 2005 there has been an increase in the proportion of birds grown and processed by independent farms. This is due to both acquisition of some market share from the main integrators, and an increased proportion of market growth. Since 2005 there have been no notable changes in the acquisition of the smaller producers by any of the larger integrators.

One large international breeder of poultry (including broilers, layers and turkeys) has formed a company that oversees the post-arrival quarantine (PAQ) and breeding facilities for a broiler breeder in Australia and New Zealand (NZ).

While in 2005 three large integrators accounted for 70% of chicken meat production, there are now only two large companies (also accounting for 70% of production).

The level of live poultry or poultry product movements within national companies between states, between different companies or between processing plants has remained relatively unchanged.

In 2008 there were estimated to be 6.5 to 7 million adult breeder birds (Meat GGPs, GPs and Parents) in Australia.

The ongoing problem of obtaining planning approvals for new broiler farms continues to be one of the major difficulties for the chicken meat industry, particularly in Victoria, NSW and Queensland. The high cost of building sheds; the difficulties, delays and costs in getting permits; and some limitations in getting finance; all coupled with lower returns for growers, are resulting in declining quality broiler shed numbers.

There is a trend for the closure of farms in peri-urban areas such as the Mornington peninsula near Melbourne and loss of broiler farm contracts in the Mangrove Mountain area in NSW. Because of the increase in rural residential living, new broiler farms and complexes are being built on larger landholdings and further away from processing plants

Free range broiler production has continued to increase since 2005. Most major broiler integrators now produce free range birds.

Raw material availability and feed costs have been affected by ongoing drought conditions. Broiler ration costs for 2006 to 2008 have been at historically high levels, and the availability of cheaper raw materials limited.

The availability of potable water is still a major problem in the southern states. Reduced flows from bores, the absence of rain to fill dams and the reduction of allocations from irrigation systems by the water authorities, have affected the operation and running costs of many broiler farms.

• 
  Egg Layer
  

Egg consumption has continued to increase across all sectors from whole shelled eggs, to further processed eggs and takeaway food. During 2007-08 there was an estimated annual production of 312 million dozen eggs from a national flock size of 18.931 million hens. This national flock size includes all laying stock (including that in rear), commercial production, and back yard poultry on 30 June 2008. The gross value of production at the farm gate was $459.4 million per annum for 2006-07.

Under the Commonwealth Primary Industries Standing Committee Model Code of Practice For the Welfare of Animals, Domestic Poultry 4th Edition all cages not meeting particular standards as outlined were to be decommissioned by 1 January 2008.

The growth of non-caged layer systems has increased every year since 2005. Some estimates indicate that as many as 32% of all Australian layers are housed under free range or barn systems of management.

The production locations of the egg industry remain similar 2005, except for an increased closure of peri-urban farms for redevelopment, and newer farms being established in regional areas.

• 
  Turkey
  

There have been no fundamental changes in the Australian turkey sector since 2005. In 2009, turkey stocks were estimated to be: 1200 Grand Parents; 4500 Parents; and commercials (around 3.9 million in late 2008) around 4.2 million. There have been some minor changes to the structure of the turkey industry in Australia since 2005.

• 
  Duck
  

The duck industry established a peak industry body in 2008 to enable industry representation. The Australian Duck Meat Industry Association was formed in May 2008 and this body has obtained membership of Animal Health Australia alongside the chicken meat and egg layer industries.

• 
  Ratite
  

Between 2005 and 2009, the emu industry has seen no new commercial farms starting up, and some existing commercial farms either leaving the industry or scaling back their flock size to non-commercial numbers. In some states, commercial farming has ceased due to the difficulty in accessing processing facilities. There are a few farms which still farm emus commercially. Data from the Ratite Slaughter Levy indicates that 5344 emus were slaughtered in processing plants in Australia in 2007-08 (DAFF, 2009).

Emu oil is still the most valuable commodity produced by the industry. Emu oil is registered with the Therapeutic Goods Administration and can be listed as an active ingredient in cosmetic products and over the counter remedies in Australia. Oil is also exported to the European Union and into Asia. Some producers market their oil from the farm gate or on the internet.

In 2007-08, the Ratite Slaughter Levy reported that 4165 ostriches were processed in Australia (DAFF, 2009). This is a decrease in the number of birds processed in 2005, with 8330 ostriches processed in the first 9 months of the period July 2004 to April 2005.

• 
  Squab
  

The squab sector remains similar to that in 2005.

• 
  Quail
  

There have been only minor changes in quail industry since 2005. The quail producers interviewed around Australia in 2009 report that there has been no significant change in the size of their flocks in the last three years. Some producers, as they near retirement, are producing fewer birds per week than they did three years ago.

• 
  Game Bird
  

In 2009, producers involved in the game bird industry reported that the market demand for game bird products was strong. Distribution of game bird farms is still concentrated in the eastern states of Australia.

• 
  Geese
  

There were no identifiable changes in this small industry sector.

• 
  Specific Pathogen Free
  

One company remains the single Australian producer of SPF eggs. The Australian SPF company operates under the European Pharmacopeia 5.2.2 standard which excludes CAV positive eggs from its “Premium Plus” SPF eggs.

• 
  Live Bird Sales and Auctions
  

In a recent study by University of Sydney researchers, 51 bird sales venues were identified in Australia, with NSW holding more sales (15) than other states. Most bird sales were held regularly (from twice a year to weekly sales), with only ten markets being held annually. There are no continuously populated live bird markets in Australia, and slaughter of birds on site is not permitted.

• 
  Small and Mixed poultry Enterprises (Niche)
  

The structure of the industry remains essentially unaltered from 2005. There has been no importation of any specialist type birds for any of these niche markets. Much of the grow out stock is obtained from external suppliers and the uniqueness of the bird is primarily determined by the way it is housed, grown and fed rather than by genetics. Increasing feed prices have put financial pressure on the niche market sector.