Opportunities for exporting game birds - Agrifutures Australia€¦ · market opportunities for eight farmed game bird species – quail, duck, turkey, goose, pheasant, partridge,

Opportunities for exporting game birds

A report for the Rural Industries Research and Development Corporation

by

Alison Leech Prue Shannon Paul Kent Geof Runge Bronwyn Warfield

October 2003

RIRDC Publication No 03/106 RIRDC Project No DAQ-272A

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© 2003 Rural Industries Research and Development Corporation All rights reserved. ISBN 0 642 58672 1 ISSN 1440-6845 Opportunities for exporting game birds Publication No. 03/106 Project No. DAQ-272A The views expressed and the conclusions reached in this publication are those of the author 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: telephone 02 6272 3186. Researcher contact details (Bronwyn Warfield) Rural Market Development Qld Department of Primary Industries 203 Tor Street PO Box 102 TOOWOOMBA Qld 4350 Phone: 07 4688 1251 Fax: 07 4688 1808 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 Phone: 02 6272 4819 Fax: 02 6272 5877 Email: [email protected] Website: http://www.rirdc.gov.au Published in October 2003 Printed on environmentally friendly paper by Canprint

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Foreword This project, ‘Identification and development of opportunities for exporting game birds’ funded by the Rural Industries Research and Development Corporation (RIRDC) and the Department of Primary Industries (DPI), has sought to provide producers, processors, distributors and exporters with a clear understanding of the export market opportunities for eight farmed game bird species – quail, duck, turkey, goose, pheasant, partridge, guinea fowl and squab. The project was undertaken in partnership with industry and guided by a committee of representatives from the game bird sector. The report provides insight into the market characteristics in each of the export countries and the issues that need to be addressed to increase industry viability. This market knowledge will enable businesses in these industries to better meet customer needs and identify the factors critical to successful market development. The report includes an overview of the characteristics and supply capabilities of each bird, and a world overview for four species. Detailed in-market research was also conducted in Singapore, Hong Kong and Japan to determine the market requirements and gain feedback on Australian game bird products. The report includes a list of recommendations for Australian industry, outlining the future research and market development directions that need to the taken to capitalise on the market findings. This project was funded from RIRDC Core Funds, which are provided by the Federal Government. This report is an addition to RIRDC’s diverse range of over 1000 research publications, forms part of our New Animal Products research and development program, which aims to accelerate the development of viable new animal industries. Most RIRDC publications are available online for viewing, downloading or purchasing: downloads at www.rirdc.gov.au/reports/Index.htm

purchases at www.rirdc.gov.au/eshop

Simon Hearn Managing Director Rural Industries Research and Development Corporation

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Acknowledgments The authors thank the Game Bird Export Advisory Committee for its guidance and assistance throughout the course of this project. The committee members included Brian Challacombe, Queensland Squab Processors Pty Ltd; Phil Chaseling, New England Special Poultry; Scott Evans, Game Farm Pty Ltd; John Millington, Luv-A-Duck Pty Ltd; Ken Orange, Banyard Game Birds; and Colin Quast, Tintinhull Turkeys. Committee members have given considerable time to provide information for the benefit of the whole industry and to review the various milestone reports and the final report. The resulting insights will provide new and existing exporters with tips for undertaking business in export markets, as well as highlighting lessons that the committee members learnt from their in-market research and trade visits. We are grateful to Peter McInnes (RIRDC) for his valuable input and guidance and Kerry Miles (QDPI) for her marketing expertise and guidance in preparing this final report.

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Abbreviations ABARE: Australian Bureau of Agriculture Resource Economics ABS: Australian Bureau of Statistics AFCD: Agriculture, Fisheries and Conservation Department, Hong Kong AFFA: Department of Agriculture, Fisheries and Forestry Australia AOC: Appellation d’Origine Contrôlée, France AQIS: Australian Quarantine Inspection Service AVA: Agri-Food and Veterinary Authority, Singapore CCEAD: Consultative Committee on Emergency Animal Diseases, Australia CIF: Cost, Insurance and Freight EU: European Union FAO: Food and Agriculture Organisation, USA FEHD: Food and Environment Hygiene Department, Hong Kong HKSAR: Hong Kong Special Administrative Region HOFEX: Hong Kong Food Expo HS Number: Harmonised System Number INAO: Institut National Appellation d’Origine JETRO: Japan External Trade Organisation LDCC: Local Disease Control Centre NSW: New South Wales OIE: Office International Des Epizooties QA: Quality Assurance QDPI: Queensland Department of Primary Industries Qld: Queensland RIRDC: Rural Industries Research and Development Corporation SA: South Australia SAR: Special Administrative Region SARS: Severe Acute Respiratory Syndrome SATS: Singapore’s Airline Terminal Services SDCHQ: State Disease Control Headquarters SWOT: Strengths, Weaknesses, Opportunities, Threats TAS: Tasmania VIC: Victoria WA: Western Australia WTO: World Trade Organisation

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Contents Foreword ................................................................................................................................. iii Acknowledgments ................................................................................................................... iv Abbreviations............................................................................................................................ v Executive summary ................................................................................................................viii Introduction...............................................................................................................................1

Purpose ................................................................................................................................................ 1 Methodology ....................................................................................................................................... 1 Market selection rationale ................................................................................................................... 3 Limitations .......................................................................................................................................... 4

Stage 2: National capability survey................................................................................................................ 4 Stage 5: Writing the final report..................................................................................................................... 4

World overview.........................................................................................................................5 Duck .................................................................................................................................................... 5 Goose................................................................................................................................................... 6 Pigeon.................................................................................................................................................. 7 Turkey ................................................................................................................................................. 8

Australian industry overview...................................................................................................10 Background ....................................................................................................................................... 10 Industry capabilities .......................................................................................................................... 10

Processing .................................................................................................................................................... 10 Production .................................................................................................................................................... 11 Seasonal production ..................................................................................................................................... 12 Improving the genetic potential of Australian stock..................................................................................... 13 Australian distribution.................................................................................................................................. 13

Major hindrances to exporting game bird products........................................................................... 14 Costs and regulations ................................................................................................................................... 14 Exotic diseases and implications .................................................................................................................. 15

Singapore ...............................................................................................................................17 Market size ........................................................................................................................................ 17 Market segments and consumers....................................................................................................... 18

Fine-dining segment ..................................................................................................................................... 18 Key purchasing factors................................................................................................................................. 20 Retail .................................................................................................................................................... 20 Catering services .......................................................................................................................................... 21

Product requirements......................................................................................................................... 21 Market perception of Australian products .................................................................................................... 23

Current suppliers ............................................................................................................................... 25 Distribution channels......................................................................................................................... 26 Market access .................................................................................................................................... 28 Summary of opportunities ................................................................................................................. 29

Hong Kong .............................................................................................................................30 Market size ........................................................................................................................................ 30 Market segments................................................................................................................................ 32

Fine-dining restaurants ................................................................................................................................. 33 Exclusive clubs............................................................................................................................................. 33 Supermarkets................................................................................................................................................ 33 Consumer groups: all segments.................................................................................................................... 34 Seasonality: all segments.............................................................................................................................. 34 Purchasing factors: all segments .................................................................................................................. 35


Current suppliers ............................................................................................................................... 37 Distribution channels......................................................................................................................... 39 Market access .................................................................................................................................... 40

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Summary of opportunities ................................................................................................................. 42 Japan......................................................................................................................................43

Market size ........................................................................................................................................ 43 Market segments................................................................................................................................ 45

Up-market hotels .......................................................................................................................................... 45 Fine-dining restaurants ................................................................................................................................. 45 Consumers: all segments .............................................................................................................................. 46 Seasonality: all segments.............................................................................................................................. 46 Purchasing factors: all segments .................................................................................................................. 46


Current suppliers ............................................................................................................................... 49 Distribution channels......................................................................................................................... 51 Market access .................................................................................................................................... 52 Summary of opportunities ................................................................................................................. 54

SWOT.....................................................................................................................................55 Future directions.....................................................................................................................57

Export development activities ........................................................................................................... 57 Competitor assessment ...................................................................................................................... 57 Industry network development .......................................................................................................... 57 Exotic disease outbreak management................................................................................................ 57

References .............................................................................................................................58 9 Appendix A ..........................................................................................................................59 10 Appendix B ........................................................................................................................62 11 Appendix C........................................................................................................................64

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Executive summary This project, ‘Identification and development of opportunities for exporting game birds’ funded by the Rural Industries Research and Development Corporation (RIRDC) and the Queensland Department of Primary Industries (QDPI), has sought to provide producers, processors, distributors and exporters with a clear understanding of the export market opportunities for eight farmed game bird species – quail, duck, turkey, goose, pheasant, partridge, guinea fowl and squab. The game bird industries of focus within this project are all at varying levels of maturity. A feature they have in common is that the majority of product is marketed domestically and future sustainable expansion will increasingly depend on identifying new markets for these specialty products. Market intelligence that identifies potential overseas opportunities may provide new answers to marketing challenges. However, the research investigations presented within this report have given equal weight to increasing stakeholders’ awareness of the key issues of market access and supply, which are of great relevance to companies considering exporting. This project has been directed by industry through a steering committee, formed to provide guidance and feedback to the project team. With this injection of experience from commercial partners, all with varying levels of export experience, the project’s original scope and accompanying methodology have evolved to ensure that the commercial realities of export marketing game bird products are observed. The world game bird industry is small, with a limited number of countries producing restricted volumes around the globe. Traditionally European countries were specialised producers of game birds because of their colder, wetter climates, which provide the desirable production environment. Many of these countries have developed a game bird culture that comes from their national hunting and cooking traditions. Game bird dishes are traditional meals in many European countries including France, Germany, the United Kingdom, Hungary and Poland. Each Australian state with the exception of the Northern Territory has a small game bird industry, with New South Wales and Victoria being the largest production centres. Most of Australia’s game birds, including duck, turkey, quail, squab, guinea fowl, pheasant, partridge and goose, are processed in domestic processing plants. There are export approved processing plants for game birds in New South Wales and Victoria; and in Queensland, Western Australia and Victoria there are processing plants that have been built to export standards but are yet to be licensed. In 2001–02 approximately 17 million game birds were processed in Australia, with quail, duck and turkey accounting for 95% of the product available for sale. The retail value of the game bird market is estimated to be approximately A$290 million per year. A single company in New South Wales produces about 75% of the 6.5 million quails processed in Australia each year. There are other smaller yet significant producers in New South Wales, Victoria and Western Australia. Australia’s total annual duck production (5 million birds) is divided almost equally between two companies. They sell mainly to the hospitality and restaurant trade, also exporting small amounts to the Pacific Islands and Singapore. Organic ducks are produced in Queensland and Western Australia for the domestic market. There are other smaller duck producers in most states. Large, vertically integrated meat chicken companies produce about 77% of Australia’s 4.7 million turkeys; other large independent growers produce an additional 1.0 million turkeys, with the remainder (100 000) coming from small operations in each state. In contrast, the squab, pheasant, guinea fowl (40 000 birds), partridge (18 000 birds) and goose industries are not dominated by one or two major companies but are characterised by many smaller operators. The larger squab processors, producing about 5000 squabs per week each (680 000 birds per annum), are located in Queensland, New South Wales and Victoria. Approximately 60 000 pheasants are produced each year in Australia with the largest producer in New South Wales, and small growers mainly in Victoria. Guinea fowl (40 000 birds), partridge (18 000 birds) and goose (5 000 birds) are minor species and are produced mostly in New South Wales.

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The small size of the Australian game bird industry makes it difficult for it to compete on price with countries like Italy, France and Spain, which produce over a million quail each week, or with the USA, which produces 270 million turkey poults (young turkeys) each year. Current industry size limits our potential to fill containers with product from one species for export. It requires consolidation in Australia with other products, or shipments of mixed game bird species. Generally speaking, the performance of Australian game bird stock is behind that of overseas birds. Some imports of fertile turkey and duck eggs have occurred through the importation program managed by the Australian Quarantine Inspection Service (AQIS). These eggs have been from stock with better reproduction performance, growth rate or feed conversion than Australian stock. Ninety per cent of Australian game birds are currently distributed in domestic markets around the major capital cities, where the main outlets are restaurants, butcher shops, delicatessens and farmers’ markets. Generally the birds are also grown and processed close to these areas, particularly around Melbourne and Sydney. Here the population includes ethnic groups who traditionally are used to eating game birds, and who provide the base for establishing and growing the industry. Exotic animal diseases that affect game birds can have a significant impact on the ability to develop and sustain export markets. In fact, game bird companies with export-approved plants will not commit more than 10–15% of their production to export, because of the risk of an exotic disease outbreak. This is seen by industry as one of the main impediments to exporting game birds. It should be noted that an outbreak of any exotic disease listed under the International Animal Health Code, for example foot-and-mouth disease, could also indirectly affect the export of game bird products due to changed quarantine protocols. Singapore The Singapore market for game birds is at present small and relies heavily on imports to satisfy demand. Singapore is a net importer of all goods. Scarce land resources and continuous urbanisation heighten its reliance upon food imports, which are estimated to meet 90% of the country’s food requirements (Agriculture and Agri-food Canada 2001). It is difficult to determine the size of the market for game birds within Singapore. It is certain that an absence of production figures and unrecorded trade data for most birds result in an underestimation of real market size. There is strong demand for ducks – primarily live product that is sourced from Singapore’s largest trading partner, Malaysia, and processed domestically. There is also a healthy demand for frozen ducks, both whole and cuts, from neighbouring Asian countries. All game bird products imported into Singapore, with the exception of those from Malaysia, are required by Singapore import standards to be imported as frozen product. Game birds apart from duck and turkey are commonly considered to be a rare and sometimes exotic source of meat within Singapore. A key factor is the limited distribution of most game birds, with current demand primarily generated by the fine-dining segment. Game birds are generally more expensive than other meats and are characteristically reserved for this segment and its wealthy patrons. The retail market for game birds is at present limited, with demand primarily for duck, turkey and to a lesser extent goose. The availability of these products is greater within supermarkets that specialise in gourmet foods and or attract middle- to high-income locals and expatriates. Demand for whole frozen turkey and goose peaks during Western holidays such as Christmas and Thanksgiving. Marketing of any product, particularly new and unfamiliar items, within Singapore’s retail segment is described as challenging. Brand competition in this segment is strong and exporters must invest in regular in-store demonstrations, point-of-sale materials and appropriate packaging to increase awareness and acceptance and ensure repeat customer purchasing. This can be a long process. Frozen items are known to become ‘lost’ against well-developed brands, and product turnover can be slow. Singapore’s game bird market is largely Eurocentric in terms of user and consumer composition. It is Europe that is widely renowned and accepted as a traditional producer of game birds and is a benchmark against which Australian products are commonly compared. Consequently, feedback initially suggests strong user loyalty for European products. Beneath the surface, however, it is perception and at times misconception that strongly dominates users’ preferences, often clouding their opinion of Australian game birds. This is particularly evident where users make unfounded comparisons between Australian and European products, often creating confusion.

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Users strongly associate Australian game birds with ‘farmed and frozen’ – product attributes commonly identified as less desirable. Overwhelmingly, users’ preference is for wild sourced, fresh chilled European game birds, particularly from France. This desirability stems from the heavy gamy taste and firm texture noted to be absent within farmed products. Interestingly, however, all European-sourced products are frozen and most if not all game birds derived from France are farmed; nevertheless, French products are still perceived to have positive attributes. Singapore currently imports game bird products from a number of countries; but it is France, the United States, Malaysia and China – high-volume game bird producers – that are Australia’s greatest competitors. There is low brand awareness within the market and perceptions are broadly applicable to the country rather than to any specific brand. Hong Kong In 2001, Hong Kong’s total food and beverage imports were valued at over A$15.5 billion (compared to Australia’s A$4.2 billion). Despite the common usage of game birds such as geese, ducks, squab and quails in Hong Kong, the market is relatively small. Hong Kong’s limited domestic agricultural production and small local food-processing industry make it necessary to meet market demands for most consumables by imports. In-country sources indicate that mainland Chinese products are used widely in wet markets and the lower-end food service, while the premium market sector utilises the small quantities of higher-priced imports from mostly Western countries. Game bird imports in 2001 amounted to 75 720 tonnes, of which only 14% (10 500 tonnes) were of non-Chinese origin. Hong Kong’s consumption of game birds is concentrated in the premium end of the market. Establishments in this sector purchase game birds to cater for their wealthier clientele who are looking for non-Asian or specifically European foods. Although other market segments utilise game bird products, these are mostly lower-quality live pigeon, quail and duck in wet markets and small retail shops. High-end silver-service restaurants use most of Hong Kong’s game bird imports. Generally these fine-dining establishments are located in large hotel chains where they are one of a number of specialty outlets servicing up-market clientele. Market sources estimate that there are approximately 400 up-market restaurants and clubs serving various cuisines in Hong Kong. It is estimated that around 20 of these offer traditional Western-style game-bird dishes on their menus from time to time. According to Hong Kong importers, Australia has a good reputation for quail, duck, pheasant, turkey and guinea fowl products. Australian guinea fowl and pheasant were described as being preferable to European products because of their lighter meat colour. Duck products from Australia were mentioned as being of lower quality than European. Japan The domestic Japanese game bird industry is well developed, with production focusing on quail, duck, pheasant and guinea fowl (in order of volume). In addition, limited volumes of turkey and goose are also farmed. As at 1 February 2001, live game bird production in Japan totalled approximately eight million birds. The most prominent game bird market segments in Japan are five-star hotels and high-end restaurants. Boutique game bird dishes feature on the fine-dining menus of these outlets to attract discerning consumers looking for continental food or a new taste experience. Although these segments are not regarded as the biggest users in terms of mass-market volume, they do use the premium imported game bird products. Specialty restaurants in five-star hotels are the primary segment for game birds in Japan. A number of these up-market hotels operate a range of restaurants, which serve cuisine from many nations to cater to the tastes of their multicultural clientele. Game birds are commonly offered on the menus of the French or other European-style restaurants because they are considered traditional dishes in these countries. A restricted number of importers (two) in Japan that are sourcing Australian game birds expressed satisfaction with the quality of quail, duck, pigeon and guinea fowl. Comments were made that game birds from Australia are usually of the same standard as others imported, but that European countries are still the most popular

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sources. It is suggested that, although Australia is currently supplying game birds to Japan, wider acceptance of Australian product is limited by the lack of in-market recognition and perceptions of over-pricing. Future Directions Research findings have identified four key areas for future development within Australia’s game bird industry. • Export development activities In-market research revealed that there is a wide lack of awareness of Australia as a supplier of a wide range of game bird products. Aggressive promotion which profiles Australia’s export capabilities has been strongly suggested. • Competitor assessment As a newcomer to the export arena, Australian product is commonly compared with traditional suppliers of game birds. Research strongly reveals a need to understand both farming and marketing practices of these competing countries to enable exporters to identify competitive advantage. • Industry network development There is a real need for vertical integration within the Australian game bird industry. Industry collaboration enables consistency of supply, information sharing opportunities to reduce the cost of export accreditation as well as demonstrates to government long-term commitment to industry development. • Exotic disease outbreak management To minimise the impact of an exotic disease outbreak upon exports, research reveals that the applicability of permanent zoning should be investigated.

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Introduction Purpose This project, ‘Identification and development of opportunities for exporting game birds’, was funded by the Rural Industries Research and Development Corporation (RIRDC) and the Department of Primary Industries (QDPI). It has sought to provide producers, processors, distributors and exporters with a clear understanding of the export market opportunities for eight farmed game bird species – quail, duck, turkey, goose, pheasant, partridge, guinea fowl and squab. The objectives of the project were: to understand and document the export market opportunities for game birds; to identify the Australian industry’s supply capabilities in terms of production and processing for export

markets; to support commercial industry partners to develop export market opportunities and develop overseas

supply chains. The game bird industries of focus within this project are all at varying levels of maturity. A feature they have in common is that the majority of product is marketed domestically; future sustainable expansion will increasingly depend on identifying new markets for these specialty products. There is a range of reasons for the relatively low volumes of game bird products currently exported from Australia. For example, varying commercial capabilities between industries influence their market orientation; some export-ready companies are logistically unable to access established export networks; and companies vary in their preparedness to comply with individual market entry requirements. All of these factors contribute to a small trade base. Overarching all these factors, however, is the unpredictable occurrence of disease outbreaks. Such outbreaks result in an immediate freeze on all exports and temporary to longer-term trade restrictions, as declared by individual countries. Australian exporters have consequently adopted a conservative approach to committing a large proportion of product to overseas markets. National response measures to disease outbreaks such as the regionalisation of affected areas, which enables accelerated resumption of trade from non-affected establishments, are pivotal to improving confidence among exporters and long-term trade development. Market intelligence that identifies potential overseas opportunities may provide new answers to marketing challenges. However, the research investigations presented within this report have given equal weight to increasing stakeholders’ awareness of the key issues of market access and supply, which are of great relevance to companies considering exporting. Methodology This project has been directed by industry through a steering committee formed to provide guidance and feedback to the project team. With this injection of experience from commercial partners, all with varying levels of export experience, the project’s original scope and accompanying methodology have evolved to ensure that the commercial realities of export-marketing game bird products are observed. The five stages of the project are outlined below: Stage 1: An industry advisory committee was formed to provide research direction to the project team throughout the life of the project. The committee comprised six key commercial producers, processors, distributors and exporters from Queensland, New South Wales and Victoria. Stage 2: In 2001, a national capability survey was designed and mailed to large commercial game bird producers and processors. A review of existing information revealed a lack of annual processing data recorded and/or available for all eight species; hence it was anticipated that the survey would produce some insights and the basis for discussion. The key objective of the survey was to assist in narrowing down research attention (in stage 3) to the products and overseas markets with the most potential in terms of Australia’s supply capabilities. Complementary data, which identified industry networks and sales orientation, market segments, potential competitors and perceived impediments to exporting, was also collated.

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Targeted survey respondents were identified with the assistance of state legislative authorities, processors, representative game bird bodies and the steering committee. Respondents included: state meat and food authorities Australian Quarantine and Inspection Service Australian Turkey Federation and Australian Squab Producers’ Association.

Where possible, companies were contacted before the survey was distributed, to ensure the participant’s suitability, communicate the objectives and, if applicable, encourage participation. Through industry leaders, commercial benchmark figures were obtained for most species to enable the project team to target the larger operators whose key business was the production and/or processing of game birds. From the 100 companies targeted, the collated responses of 35 completed surveys were presented to the project’s steering committee for comment. Individual survey responses were kept confidential. Industry representatives indicated that the qualitative findings revealed an accurate reflection of present industry status, although industry processing figures for some species were underestimated due to small sample size and required review. As mentioned, current data-recording methods make it difficult to ascertain actual industry size for most species. A consensus on estimated game-bird volumes marketed in 2001 has been derived by acquiring an informed opinion from at least two sources per species, from both commercial and government representatives (see section 1.4, ‘Limitations’). Collated findings were sent to survey participants. Stage 3: The next stage was to prioritise the key countries for market investigation (in stage 4). A review of existing literature was undertaken, complemented by discussions with key industry stakeholders, to determine the criteria for market selection. This stage comprised a two-tier process to present a shortlist of countries to the advisory committee for final market selection, correlating their experiences against research findings – a methodology supported by the committee. Guided by exporters’ experience, research has focused on countries within the Asian region, including Japan and the Indian subcontinent. The main reasons for this regional concentration include the following: The Australian industry does not at present have the economies of scale to be competitive among the larger

producers in Europe and the United States. Owing to regulations governing processing procedures, Australian game bird products do not possess the

‘gamy’ flavour commonly associated with wild products prepared in Europe. For this reason, Australian product complements Asian cooking styles, where the way the product is cooked and the ingredients used, rather than the taste of the meat itself, enhance the flavour of the dish.

According to industry Australia’s close proximity to Asia presents some logistic advantages over other

market suppliers in terms of transport times and freight costs. Twenty Asian countries were initially considered for prioritisation in stage 3. An assessment of secondary data revealed a strong focus on a country’s traditional poultry industries, primarily chicken, duck and to a lesser extent goose, with little or no reference to the other species. Although industry members had defined the higher end of the food-service sector as the key market segment for Australian game birds, it was evident that primary research would be necessary in each country to confirm detailed market activity for these specialty products. The initial market selection was made by using the countries’ five-year (1995–99) average growth levels for aggregated imports of game bird products. This data is used as an indicator of market acceptance levels for these products; it was therefore available for all focus markets, and enabled a consistent filtering process to be applied. Positive import growth during the focus period was the criterion used for short-listing countries; any countries where this did not occur were eliminated without further investigation. Countries that currently do not permit imports of Australian game bird products were also removed (see table 1.1). Australian export data was also used, but a stronger emphasis was placed upon country import levels because the project sought to identify both new and existing markets (see section 1.3, ‘Limitations’).

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Table 1.1 Prioritised overseas markets

Short-listed markets Eliminated markets China Bangladesh Hong Kong Brunei Japan Cambodia Malaysia Korea

(North and South) Singapore Laos Sri Lanka Burma Philippines Pakistan Taiwan1 Thailand1 Vietnam

From the seven potential markets identified through this process, three countries – Singapore, Japan and Hong Kong – were recommended for further investigation. Complementary market data, including tariff rates, income levels and the country’s import requirements, were also factored into this decision. A fundamental part of this project has been to assist commercial partners to develop export relationship opportunities, as identified through in-market research. In addition to their commitment, the capacity and willingness of individual companies to embrace a country’s market access requirements were central to achieving these relationships. The advisory committee decided final market selection. Stage 4: Personal trade interviews were conducted with importers and chefs currently purchasing and/or preparing game bird products within the high end of the food-service sector in Singapore, Japan and Hong Kong. Appropriately briefed Austrade officers in each market were commissioned to collate statistics and undertake primary and secondary research to confirm market demand, target markets, competitor suppliers, market specifications and, where possible, users’ perceptions of Australian products. To enable an insight into the market demand for all eight species, interviewees who handled a range of these products were prioritised. Up to 30 interviews (15 each per buyer and user group) were conducted in each market. In April 2002 the region’s premier food event ‘Food and Hotel Asia’ was held in Singapore, providing a timely and effective showcase for the eight Australian game bird products included in this project. The project supported an Australian game bird trade booth, which attracted key international and local Singaporean food-service representatives. Participating in this event enabled commercial partners to directly promote and communicate industry capabilities to a wide target audience, acquire an understanding of market requirements and opportunities, gauge acceptance levels for Australian products, and collate market intelligence. Stage 5: Once each country had been assessed, a summary of the opportunities in each market was prepared. This assessment was based on the supply capabilities at the time the research was conducted, the acceptance levels of Australian game birds in each country, and the competitiveness of Australian producers. Once again, feedback was sought from industry participants. Market selection rationale In the absence of specific readily accessible secondary data detailing the game bird market within the seven prioritised countries (in stage 3), exporters’ personal experience and company capabilities played a significant role in targeting the Singapore, Hong Kong and Japan markets. In terms of competitiveness, the high end of the food-service sector provides the best opportunities for Australian game bird products. The project team were able to generate a general user/consumer profile, but secondary research efforts could not confirm this, and industry confirmation was required. Common factors underlying the selection of these three countries included: market acceptance, with a range of traditional game bird products currently being imported from Europe;

1 Taiwan and Thailand currently prohibit the entry of Australian game bird products (AQIS 2001)

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the presence of numerous 5-star hotels and restaurants, accommodating the fine-dining requirements of a large number of international business travellers;

high average per capita income among locals (exceeding A$50 000); perception of Australia as a clean, green supplier of primary produce.

For access to the markets of both Singapore and Japan, Australian companies must first be registered with the country. Both of the export companies participating in the project were listed with these countries before the project commenced, confirming a true interest in investigating these markets and enabling them to respond immediately to any trade opportunities. The following market indicators were assessed by the advisory committee as being desirable characteristics (the sequence is not significant): high in-market acceptance levels high income levels import reliance minimal market access requirements.

Limitations The methodologies that have been applied within this project have evolved as a result of the dearth of secondary data detailing industry capabilities and the demand for all eight game bird products on both domestic and international markets. To compensate for the limitations, there has been a high level of consultation with industry stakeholders and in-market representatives, to collate and/or interpret market findings. Although the market selection processes used by the project team may differ from the mainstream approaches undertaken by individual exporters, there is a high level of consistency between the markets selected and present export practices; as a result there has been widespread support for the market rationale from industry members. It is acknowledged, however, that alternative approaches may reveal different results. The research limitations for stages 2 and 5 are outlined below. Stage 2: National capability survey In determining processing capabilities, the research revealed the absence of a single agency that provides Australian processing data for all eight game bird species. At a national level, annual figures are collated from large commercial poultry-slaughtering establishments under the classifications of ‘ducks and drakes’, ‘turkeys’, ‘geese’ and an aggregated ‘other’ category. Alternative data collection agencies at a state level commonly do not record these details or, for privacy reasons, do not distribute this information externally. Processing figures presented in this report for the year 2001 should be observed and quoted as estimates only, which have been derived and cross-checked with both industry and government stakeholders. Stage 5: Writing the final report The Food and Agriculture Organisation (FAO) statistics used in the ‘World overview’ section below cover only four of the eight game bird species: duck, turkey, goose and pigeon. In many cases FAO does not include Australia as a producer or exporter, so local industry approximations (National Capability Survey, 2002) were used for comparative purposes. There were limitations on the import data available from the three export markets investigated, in that not all game bird species were recorded in each market. All three countries recorded duck, turkey and quail separately, but the remaining game bird species were recorded collectively or, in some instances, not at all. For instance, goose and guinea fowl were considered as one import category by each country, and partridge and pheasant were simply assigned to ‘other’, which included many bird types. Research findings reveal that ‘squab’ is commonly referred to as ‘pigeon’ in the 3 key countries. These terms will be used interchangeably throughout this report. The tonnage weight attained for Australian production has been derived from the calculation, average dressed weight range (as per Table 3.2) multiplied by the estimated number of birds per species processed in Australia in 2001-02.

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World overview The world game bird industry is small, with a limited number of countries producing restricted volumes around the globe. Traditionally, European countries were specialised producers of game birds because of the colder, wetter climates that provide the desirable production environment. Many of these countries have also developed a game bird culture that comes from their national customs, and their hunting and cooking traditions. Game bird dishes are traditional meals in many European countries including France, Germany, the United Kingdom, Hungary and Poland. The world situation for game birds (production, imports and exports) according to FAO is presented below. Note, however, that FAO records statistics for only four categorised bird types; duck, goose, pigeon and turkey (see also section 1.4.2). Duck Duck is one of the world’s most popular game birds, with production second only to that of turkey in 2000. As table 2.1 below details, China produced the largest quantity of duck in 2000. France and Thailand were ranked second and third; however, they contributed only small proportions of the world production total. Duck production by the Australian industry in 2001-02 was estimated to be 10 500 tonnes (QDPI National Capability Survey, 2002). Table 2.1: World duck production, 2000 Major Producers Total production

(tonnes) % of world total

China 1 991 896 69 France 235 700 8 Thailand 102 500 4 Vietnam 64 500 2 USA 52 600 2 Other 446 292 15 World 2 893 488

Source: FAO 2001. Duck imports were second-largest among game birds in 2000 (with turkey the largest). Table 2.2 shows Hong Kong as the world’s largest duck importer in 2000, with more than one-third of the total world duck imports for 2000. Germany and Saudi Arabia were the closest importing countries after Hong Kong, contributing 17% and 13% respectively to world imports in 2000. Table 2.2: World duck imports, 2000 Major importers Total imports


Hong Kong SAR 55 190 36 Germany 27 052 17 Saudi Arabia 20 717 13 Japan 14 931 9 UK 5 285 3 Other 35 211 22 World 158 386

Source: FAO 2001. Global exports of duck totalled 108 866 tonnes in 2000 (see table 2.3), with Hungary representing 23% of this or approximately 25 000 tonnes. France and Hong Kong were also major players contributing around 15% each to the global total. Australia exported only 401 tonnes in 2000 and was ranked number 12 in order of export volumes for that year.

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Table 2.3: World duck exports, 2000 Major exporters Total exports (tonnes) % of world total Hungary 24 672 23 France 16 524 15 Hong Kong SAR2 16 253 15 Thailand 10 832 10 The Netherlands 8 920 8 Other 31 665 29 World 108 866

Source: FAO 2001. Goose China is by far the world’s largest producer of geese, with approximately 92% of the world total. The closest producing nations behind China were Egypt and Hungary, each contributing around 2% to a world total of 1 995 412 tonnes. Australia was an insignificant producer of geese in 2001-02, with a total of only 15 tonnes (QDPI National Capability Survey, 2002). Table 2.4: World production of geese, 2000 Major Producers Total production


China 1 845 850 92 Egypt 42 000 2 Hungary 39 000 2 Madagascar 13 200 1 Other 55 362 3 World 1 995 412

Source: FAO 2001. Total world goose imports in 2000 were 50 047 tonnes (table 2.5), with Germany representing almost half of that figure, followed by China (more than one-quarter) and Austria (approximately 8%). Table 2.5: World imports of geese, 2000 Major importers Total imports


Germany 24 347 48 China 13 057 26 Austria 3 834 8 France 3 473 7 Czech Republic 2 510 5 Other 3 186 6 World 50 407

Source: FAO 2001. Exports of goose products in 2000 amounted to 48 000 tonnes worldwide, according to FAO. Once again the largest exporter (and producer) was China with 24 276 tonnes, or more than half of the world total in 2000. European nations feature quite widely as exporters of goose, with Hungary and Austria ranked second and third on the world scale.

2 SAR: Special Administrative Region

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Table 2.6: World exports of geese, 2000 Major exporters Total exports (tonnes) % of world total China 24 276 51 Hungary 19 827 41 Austria 2 157 4 Belgium 412 1 France 392 1 Other 1 065 2 World 48 129

Source: FAO 2001. Pigeon According to FAO data, production of pigeon was the smallest among game birds in 2000 (18 528 tonnes). Only seven countries were listed as producers of pigeon, with Egypt being the largest (69% of the world total). Next after Egypt were Syria and France, which contributed 13% and 6% respectively to world production. Australia’s production in 2001-02 was 2 550 tonnes (QDPI National Capability Survey, 2002). Table 2.7 World pigeon production, 2000 Major Producers Total production


Egypt 12 750 69 Syria 2 420 13 France 1 100 6 Namibia 1 050 6 Saudi Arabia 1 000 5 Other 208 1 World 18 528

Source: FAO 2001. Pigeon imports throughout the world were correspondingly small in 2000 (see table 2.8). Hong Kong was the largest pigeon importer, representing about 63% of the world total, followed by Macao (31%) and the USA (5%). Table 2.8: World pigeon imports, 2000 Major importers Total imports


Hong Kong SAR 3 102 63 Macao SAR 1 522 31 USA 267 5 Denmark 33 1 Other 20 **0 World 4 944

Source: FAO 2001. **Other represents 0.4% of the world total. European countries dominated the world’s exports of pigeon in 2000 (see table 2.9). The largest exporting nation was Spain, which contributed almost 30% of the global total, followed by France (19%) and the Netherlands (16%).

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Table 2.9: World pigeon exports, 2000 Major exporters Total exports (tonnes) % of world total Spain 73 30 France 47 19 The Netherlands 40 16 Belgium 33 13 Indonesia 28 11 Other 27 11 World 248

Source: FAO 2001. Turkey With approximately five million tonnes produced worldwide in 2000, turkey production is the largest among game birds according to FAO. Nearly half of this total production occurred in the USA, followed by France and Italy with 15% and 7% of world production respectively (table 2.10). Australian industry estimated domestic turkey production at 16 000 tonnes in 2001-02 (QDPI National Capability Survey, 2002). Table 2.10: World turkey production 2000 Major producers Total production


USA 2 441 000 50 France 738 000 15 Italy 330 000 7 Germany 295 500 6 UK 254 000 5 Other 856 965 17 World 4 915 465

Source: FAO 2001. Mexico was the world’s largest turkey importer in 2000, accounting for 19% of world imports (table 2.11), closely followed by Russia (15%) and Germany (13%). Five out of the top ten importing countries in 2000 were European, according to FAO. Table 2.11: World turkey imports, 2000 Major importers Total imports


Mexico 132 391 19 Russian Federation 105 165 15 Germany 92 404 13 China 51 609 7 Belgium 41 396 6 Other 285 390 40 World 708 355

Source: FAO 2001. Although the USA was by far the largest producer of turkey in 2000, France was the world’s biggest exporter (see table 2.12), with almost 32% of the world total. The USA contributed almost 22% and The Netherlands just over 10% of the total. Australia is mentioned by FAO as an insignificant exporter of turkey in 2000.

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Table 2.12: World turkey exports, 2000 Major exporters Total exports (tonnes) % of world total France 286 851 32 USA 197 143 22 The Netherlands 93 431 10 Brazil 42 489 5 UK 39 430 4 Other 243 231 27 World 902 575

Source: FAO 2001.

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Australian industry overview Background The meat chicken industry commenced in the late 1950s. It took over the table bird market developed for crossbred cockerels and gradually replaced the spent hen market as consumers quickly learnt that meat chickens were meatier, more tender and quicker to cook. Consumption has increased to 32.8 kg per person per year (2001–02) without any real promotion (ABARE 2003). Chicken has promoted itself through its convenience, flavour and price. The meat chicken industry is vertically integrated, with two major processors and nine smaller independent processors in Australia. There are approximately 900 contract chicken growers. The turkey and duck industries developed after World War II. As the chicken industry developed, two large processors incorporated duck and turkey production into their operations. It fitted into their production systems and added a compatible product for sale through their distribution and marketing chains. The other game bird industries commenced development in the late 1960s and early 1970s, as well as further development of independent turkey and duck operations. Game birds are more expensive to produce than meat chickens because of slower growth rates, higher feed conversion (except for quail), shorter breeding season and lower egg-production rates. These factors make game meat more expensive to grow and therefore place it in a higher-priced and competitive sector of the food market. In the 2001–02 year 416.05 million meat chickens were grown, to produce 668 800 tonnes of meat with a retail value of A$2 642 million (ABARE 2003). This compares with the production of 17 million game birds worth A$291 million (ABARE 2003). From data collected during the survey, turkey and duck consumption was calculated to be approximately 1.6 kg and 0.5 kg per person respectively for the year 2001–02 (National Capability Survey 2002). This compares with 32.8 kg per person for chicken meat (see above). During the last 10 years the game bird industry has faced stiffer competition from its competitors and other products; eating habits of consumers are changing; price has not risen in line with inflation; returns per bird have fallen; and the number of growers has decreased. These changes have been seen as a challenge by those who are still in the industry and have been met by increasing enterprise size, the adoption of labour-saving devices and practices, turning ‘waste’ production into saleable products, developing new products, and investigating the export potential for game birds. Game birds are sold as whole birds or further processed into pieces (breasts, thighs, drumsticks, cutlets, sausages and roasts), which may be marinated and precooked. Products have been developed that are meal-sized portions and are quick and easy to prepare. The demand for all game birds is seasonally based, except for quail. Christmas and Easter are the main seasons. Industry capabilities Processing Each Australian state, but not the Northern Territory, has a small game bird industry; New South Wales and Victoria are the largest production centres. The majority of Australia’s game birds, including duck, turkey, quail, squab, guinea fowl, pheasant, partridge and goose, are processed in domestic processing plants. There are export-approved processing plants for game birds in New South Wales and Victoria (see table 3.1); and in Queensland, Western Australia and Victoria there are processing plants that have been built to export standards but are yet to be licensed.

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Table: 3.1 State-by-state Australian game-bird slaughter facilities, 2001–02

State Domestic Export licensed Export standard but not yet not licensed

Qld 6 23 NSW 21 44 – Vic. 16 2 1 Tas. 2 – – SA 9 – – WA 1 – 1 NT – – –

Source: QDPI National Capability Survey 2002.

Production In 2001–02 approximately 17 million game birds were processed, with quail, duck and turkey accounting for 95% of the product available for sale (see table 3.2) The retail value of the game bird market is estimated to be approximately A$290 million per year. Turkey makes up approximately 70% of this amount, valued at A$200 million during this period. The remainder of the market is attributed mostly to duck (21%), then quail (5%), with very limited contributions from the other species. Table 3.2: Estimated Australian game-bird production and value for 2001–02

Game-bird species Birds processed5 Dressed weight range (kg/bird) Retail value ($m)

Quail 6 500 000 0.12–0.36 14 Duck 5 000 000 1.6–2.2 62 Turkey 4 700 000 3–10 200 Squab 680 000 0.2–0.5 6.8 Pheasant 60 000 1.0–1.2 1.26 Guinea fowl 40 000 1.0–1.2 6.2 Partridge 18 000 0.9–1.2 0.3 Goose 5 000 3.0–5.0 0.4 Total 17 003 000 290.96

Source: QDPI National Capability Survey 2002.

The game bird industry has the capability to increase production by about 10% in the short term using current facilities (National Capability Survey 2002). Longer-term increases will require the building of additional growing facilities and an increase in breeding stock numbers. Quail breeder numbers can be increased quickly because of their prolific reproduction rate whereas the other species will take longer. Processing facilities can handle about double the current throughput if necessary (National Capability Survey 2002).

3 One duck-processing and one squab-processing facility 4 Major poultry companies have export processing facilities that are used for turkey and duck in New South Wales and Victoria, which are not available to the general game bird industry. 5 Queensland is the only state that was able to provide actual processed figures for the eight game bird species; other states either do not collect the data or will not release the information due to state privacy regulations. Other state data was collected through surveying industry members and processors.

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A single company in New South Wales produces about 75% of the 6.5 million quails processed in Australia each year. There are other smaller yet significant producers in New South Wales, Victoria and Western Australia. Australia’s total annual duck production (5 million birds), centred on the Pekin type duck, and is divided almost equally between two companies. They sell mainly to the hospitality and restaurant trade, and export small amounts to the Pacific Islands and Singapore. Organic ducks are produced in Queensland and Western Australia for the domestic market. There are other, smaller duck producers in most states, many of which specialise in Muscovy duck. Large vertically integrated meat-chicken companies produce about 77% of Australia’s 4.7 million turkeys; other large independent growers produce an additional 1.0 million turkeys, with the remainder (100 000) coming from small operations in each state. The larger squab processors, producing about 5000 squabs per week each, are located in Queensland, New South Wales and Victoria. Approximately 60 000 pheasant are produced each year in Australia with the largest producer located in New South Wales and small growers mainly in Victoria. Guinea fowl (40 000 birds), partridge (18 000 birds) and goose (5 000 birds) are minor species and are produced mostly in New South Wales and Victoria. Linkages have been developed between the independent producers of ducks and turkeys and the other game bird species, which have enabled individuals to cooperate in marketing and distribution of their products and allowed them to specialise in production of single species. The small size of the Australian game bird industry makes it difficult for it to compete on price with countries such as Italy, France and Spain, which produce over a million quail each week, or with the USA, which produces 270 million turkey poults (a young turkey) each year (National Capability Survey 2002). Current industry size limits our potential to fill containers with a single product for export; instead it is necessary to consolidate with other products in Australia, or send shipments of mixed game bird species. Traditionally game bird products have been supplied to Asian markets by the United Kingdom, mainland Europe and the United States. Seasonal production Ensuring a continual supply of fresh product all year round for the domestic market is a problem with some game bird species. However, for export this is of lesser importance, as many current markets require frozen product. The year-round availability of game birds is related to the reproduction traits of the species – that is, the length and timing of the breeding season and the number of eggs laid. The natural breeding season occurs during spring and is triggered by increasing day length. For pheasant, guinea fowl, partridge and goose the season lasts for 6–12 weeks; for the other species it is longer (see table 3.3). The number of eggs laid by game birds can be increased by using techniques that induce the birds to lay for a second season in one year, or the breeding season can be extended by inducing some flocks to lay earlier or later in the season. Providing a constant or increasing day length can increase the length of lay for quail and most ducks. Turkeys, pheasant, guinea fowl and partridge can be induced to lay more eggs in their off season, such as autumn, by using a dark/light regime; a dark house is required to do this. The seasonal effect on squab can be reduced with lighting, selecting the bulk of the replacement breeders in spring for mating in autumn, and inducing a pre-autumn moult or rest. Moulting is a natural process of all furred and feathered animals and is the shedding and renewing of feathers and cessation of egg production until the start of the next breeding season. Resting or induced moulting can be used with game birds to obtain a second laying cycle. Another option is to grow the anticipated market requirements for a year during the natural growing season of the bird and to freeze the product needed for sale during the birds’ off-season. As increasing day length stimulates reproduction in birds, the season for reproduction in Australia occurs at the opposite time of year to that in the Northern Hemisphere, making it possible for Australia to take advantage of

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potential markets in the Northern Hemisphere. This also gives Australia the potential to put fresh product into tourist areas at times of year that attract travellers from the Western countries of the Northern Hemisphere. Improving the genetic potential of Australian stock Generally speaking, the performance of Australian game bird stock is behind that of overseas birds. Some imports of fertile eggs of turkey and duck have occurred through the importation program managed by the Australian Quarantine Inspection Service (AQIS). These eggs have been from stock with better reproduction performance, growth rate or feed conversion than Australian stock. The average performance of current Australian stock is presented in table 3.3. The information in the original table has been updated through consultation with industry (Runge 2002). Table 3.3: Performance characteristics of game birds

Quail

Pheasant

Guinea fowl

Squab

Partridge Turkey Duck Goose

No. of eggs/bird/year

2806 1047 137 18 35 98 190 24

Hatchability (%) 58 65 68 85 70 80 80 50 Mortality (%) 15 20 15 5 20 7 8 2 Number birds sold/breeder/ year

1306 427 52 14 19 71 135 12

Age at kill weeks

5 16 14 4 14 10 (f) 17 (m)

7 12

Average live weight (g)

240 1800 1600 535 530 5000 (f) 15,500 (m)

3000 4500

Average dressed weight (g)

170 1200 1000 375 370 3400 (f) 10,500 (m)

2100 3100

Feed conversion 3.3 4.8 3.6 7.38 5.9 2.35 2.6 3.29

Growing Season All year

Oct–Jan Apr–Jul

Sept–Jan All year Sept–Dec All year All year

Aug–Dec

F = female; M = male Source: Runge 2002. In the longer term, if the Australian game bird industry is to become globally competitive in all species it is essential that it is able to access overseas stocks. That is, bird performance, production costs, conformity of birds and efficiency of production must all be comparable to those of our overseas competitors. This can be achieved only through genetic selection or through importing better-performing stock (quail, squab, pheasant, partridge, guinea fowl and goose) that can be crossed with Australian birds. Importation can be a quicker and more achievable alternative, but the high cost of imports is a deterrent for producers. The domestic game bird industry does not have the production base to support the high cost of importation. Australian distribution Most Australian game birds (90%) are currently distributed in domestic markets around the major capital cities where the main outlets are restaurants, butcher shops, delicatessens and farmers’ markets. Generally speaking, game birds are also grown and processed close to these areas, particularly around Melbourne and Sydney. Here

6 With quails the breeders are used for six months and then replaced – i.e. 140 eggs by 2 batches of breeders. 7 If pheasant breeders are moulted and subjected to lights after the first laying season an additional 48 eggs are laid. 8 A pair of pigeons is considered a breeding unit. Feed consumed includes that eaten by the breeding pairs. 7 Supplementary green feed not included.

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the population includes ethnic groups who traditionally are used to eating game birds, and who provide the base for establishing and growing the industry. The major chicken processors produce a large proportion of the turkeys and ducks. The remainder of these and other game birds are farmed, processed and marketed by independent organisations. There are distribution and marketing linkages between the independent duck and turkey producers and other game bird producers. This allows them to specialise in growing one or two species and yet have the ability to supply the whole range of game birds to their customers. Major hindrances to exporting game bird products Australian game bird producers have highlighted two major impediments to exporting game bird products: regulations and associated costs applied by the Australian Quarantine Inspection Service to satisfy

demands from importing countries; the risk of further outbreaks of exotic disease and the resultant immediate changes in import requirements

to overseas markets. (Source: QDPI National Capability Survey 2002)

In addition industry members have commented on the major impact international events have had on Australia’s game bird exports. Trade agreements, war and SARS have all restricted Australia’s export capabilities during recent times. Costs and regulations The main areas of concern with AQIS costs and regulations relate to the costs associated with paying for the services of AQIS veterinarians and inspectors, and the high cost of sending samples to develop a new export market. It should be noted that many of these regulations, and therefore associated costs, relate to meeting requirements that are being imposed by the export market. All meat and meat products destined for export for human consumption and containing more than 5% meat must be produced and stored in export premises that are registered with AQIS, unless the importing country gives an exemption. The high cost of building export-standard processing plants is a significant barrier to increasing the number of export processing facilities, given the small size of the industry, the potential threat of a disease outbreak and the current small amount of exports. Since November 2001 there has been no requirement to pay an annual registration fee for export processing premises. Export processors now pay for the services of AQIS veterinarians and inspectors. Each importing country has its own specific requirements at the processing plants, such as ante mortem inspection of the live bird or the presence of an inspector in the plant during processing of birds. Product shipments greater than 10 kg require an export permit in order to clear Australian customs. To test a potential export market, samples of 10–200 kg are frequently required. The financial outlay to produce small samples is often prohibitive. Small companies or industries have to satisfy the same regulations, costs and procedures as the larger red meat industries, which can spread the same export costs over larger shipments. All permits, customs clearance numbers and health certificates incur a set fee and are issued electronically by AQIS, certifying that the importing country’s standards have been met. The same costs apply to one shipment irrespective of its size. Export plants must operate a ‘meat safety quality assurance system’ as well as meeting a specific standard of construction. The importing country is also likely to impose its own conditions about plant hygiene and chemical residues, as well as satisfying country-specific inspection requirements. For example, AQIS recommends specific Islamic organisations to satisfy Halal certification, in order to meet religious processing requirements (AQIS 1983). One leading game bird company spends up to A$30 000 per year to satisfy this requirement. However, these bodies are not recognised internationally by all Muslim importing countries. For example, Malaysia requires a Malaysia-based veterinarian and religious officials to do the certification. The standards set by Australia’s processing regulations and quality-assurance requirements ensure that local game bird processors produce a clean product. According to those interviewed for this research, the Australian

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game bird industry has a very strong product quality focus, is committed to providing product that meets the consumers’ requirements and has strong links to its markets. How importing countries classify the game bird species is an issue that needs to be considered. Australia classes all eight species under the definition of ‘poultry’.10 Other countries for example Singapore, class duck, turkey, goose and quail as poultry but class pheasant, partridge, guinea fowl and squab as game birds. This difference in definition can mean a difference in export requirements. Traditionally the world’s game birds have been supplied by Europe, where the term ‘game’ implies that the bird has been reared extensively and hung to enhance the flavour or give it a ‘gamy’ taste. Although almost all game birds exported from Europe are reared intensively on farms, the perception is that these birds have come from the wild or are extensively farmed. Traditionally these game birds have been processed and sold with the head on. Australian processing standards require that the head be removed during processing. However, head and feet can be left on (providing they are clean) where an approved program of production enables the practice of dressing for a market that requires head and feet on. It varies between states as to how this is interpreted, and poses problems in meeting the overseas client’s needs. Further information on the inspection and certification arrangement to satisfy the export of game birds can be readily obtained from the AQIS export facilitation officer in each state. Exotic diseases and implications Due to Australia’s small production levels and therefore higher production costs, the Australian game bird industry needs to target the high end of the market. This means international five-star hotel chains and fine-dining restaurants, which have a low tolerance of inconsistent supply. The small size of the Australian game bird industry dictates that processors do not have a large stockpile to draw from, should supply be interrupted (e.g. by an exotic disease outbreak) or should there be large increases in demand. Exotic animal diseases that affect game birds can have a significant impact on the ability to develop and sustain export markets. In fact, game bird companies with export-approved plants will commit no more than 10–15% of their production to export due to the risk of an exotic disease outbreak. This is seen by the industry as one of the main impediments to exporting game birds. An exotic animal disease is one that is not endemic to Australia;11 that is, it is not usually found here. Poultry diseases such as avian influenza (AI) and Newcastle disease relate directly to the game bird industries. However, it should be noted that an outbreak of any exotic disease listed under the International Animal Health Code – for example foot-and-mouth disease – could also indirectly affect the export of game bird products due to changed quarantine protocols. Accepted international practice after an exotic disease outbreak has been confirmed is to attempt to eradicate the disease by destroying stock exposed to it, and to dispose of all infected product. When the outbreak is confirmed, all importing countries will revise their import protocols. This often includes an immediate ban on all products from the species or class of animal likely to be affected by the disease. For a number of years Australia has had a non-virulent form of Newcastle disease known as the V4 strain. This has existed in our commercial poultry flocks without any serious disease problems in poultry. It is suspected that the recent Newcastle disease outbreaks were caused by a mutant strain that evolved from this non-virulent strain. There is no evidence that these recent outbreaks have resulted from more severe overseas strains. Newcastle disease has usually occurred in the domestic chicken industry, but such outbreaks affect all of the poultry industry (including game birds). Interviews with operators within the game bird industry has indicated that they feel ‘left out’ of the industry policy decision-making process due to the relatively small size of the industry, and they feel somewhat powerless to influence policy direction. This is a frustrating position for the industry as their ability to export is severely compromised at times of disease outbreaks, and this tarnishes their reputation of being reliable suppliers.

10 The Meat Inspection Act (AQIS 1983) defines poultry as: a) Domesticated fowl ducks, geese or turkey and b) Any other kind of bird which prescribed goods are derived and which are intended to be exported to a country which requires goods of that kind to comply with any condition or restriction specified in orders. 11 ‘Exotic disease’ includes African swine fever, bluetongue, foot-and-mouth disease, fowl plague, Newcastle disease, rabies, rinderpest, spongiform encephalopathy, swine fever, swine vesicular disease, vesicular exanthema, vesicular stomatitis or any other disease prescribed by regulation to be an exotic disease for the purposes of the Meat Inspection Act (AQIS 1983).

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According to the RIRDC Game Bird Advisory Committee, there are opportunities to improve the current response to exotic disease outbreaks through implementing smaller zones (see appendix A) and consulting representatives from the game bird industry when outbreaks occur. A compulsory vaccination program for Newcastle Disease has also been suggested to reduce the occurrence of an outbreak.

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Singapore Market size The Singapore market for game birds is small at present, and relies greatly upon imports to satisfy demand. In the last five years total domestic consumption has increased almost 40% however this figure represents only selected species of turkey, goose, guinea fowl and duck of which the latter is primarily sourced from neighbouring Asian countries. Singapore is a net importer of all goods. Scarce land resources and continuous urbanisation heighten its reliance on food imports, which are estimated to meet 90% of the country’s food requirements (Agriculture and Agri-food Canada 2001). There is very limited local production of game birds within Singapore. It is thought that there are three game bird farms within the country, but only one establishment is known with certainty. This farm, which is based near the Malaysian border, primarily produces quail meat and eggs; however, partridge, guinea fowl and pigeon are also marketed domestically. The amounts it produces are insignificant in comparison with the needs of the domestic market. In April 2002, on-farm bird numbers were 160 000 quail, 500 pigeon, 500 partridge and 200 guinea fowl. Producers are limited to the available land and government-approved land leases, which may not be renewed. The one known producer is restricted to a land lease of 20 years. Table 4.1: Singapore’s total domestic consumption, 1997–2001 (tonnes)

1997 1998 1999 2000 2001 Growth (%)

Domestic production

NA NA NA NA NA 0

Total imports 1 948 1 517 3 151 2 297 2 207 35 Total re-exports

127 118 86 97 123 –12

Total domestic consumption

1 821 1 399 3 065 2 200 2 084 37

Total domestic consumption = (domestic production + total imports) – total re-exports NB. This table represents only duck, turkey, goose and guinea fowl. Source: Singapore Trade Development Board (Statlink) 2002. It is difficult to determine the real market size for game birds within Singapore. An absence of production figures and unrecorded trade data for most birds results in an underestimation of real market size. It can be stated with certainty that there is strong in-market demand for ducks – primarily live product that is sourced from Singapore’s largest trading partner, Malaysia, and processed domestically. There is also a healthy demand for frozen ducks, whole and cuts, from neighbouring Asian countries. With the exception of those from Malaysia, all game bird products imported into Singapore are frozen. Demand for whole turkey has remained relatively constant in recent years at around 350 tonnes per year. Demand for turkey cuts and offal have increased almost 1.5 times since 1997, largely because of the in-market popularity of portioned meat cuts. Goose and guinea fowl trade data is not segregated. Geese are brought in whole, but their livers are also in popular demand. Although quail, pigeon, pheasant and partridge are also imported, trade figures are not recorded or available. The use of these particular birds within the market is small at present and is not believed to increase estimated market size significantly.

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Table 4.2: Imports of game birds into Singapore, 1997–2001 (tonnes)

Bird type 1997 1998 1999 2000 2001 Ducks 1 241 1 040 2 470 1 401 1 376 Goose & guinea fowl

97 13 44 65 45

Turkey 610 464 637 831 786 TOTAL 1 948 1 517 3 151 2 297 2 207

Source: Singapore Trade Development Board (Statlink) 2002. Table 4.3: Imports of live game birds into Singapore, 1997–2001 (numbers)

Bird type 1997 1998 1999 2000 2001 Total live ducks

7 495 229 6 908 291 8 027 418 7 867 974 6 871 338

Source: Singapore Trade Development Board (Statlink) 2002. Singapore is internationally recognised as the main trading hub for South-East Asia. Re-exports of small volumes of turkey and duck products do occur, with shipments primarily consigned to a number of other Asian countries. The main re-export markets for frozen whole and portioned turkey is the Republic of Maldives and Thailand, with duck products primarily destined for China and Sri Lanka. Market segments and consumers With the exception of duck and turkey, game birds are commonly considered to be a rare and sometimes exotic source of meat within Singapore. A key factor to this present low in-market awareness is the limited distribution of most game birds, with current demand primarily generated by the fine-dining segment. Fine-dining segment In Singapore, game birds are mostly regarded as niche items that are only appropriate to the high-end foodservice segment where consumer acceptance for these meats is higher than in other segments such as the retail sector. In addition, game birds are generally more expensive than other meats and are characteristically reserved for this segment and its wealthy patrons. Apart from duck however, demand for all game birds even from within this key segment, is commonly low with most reserved for promotional occasions. This is reflective of the characteristically and widely shared minimal in-market awareness of these meats. In-market demand for game birds is characteristically from European customers and well-travelled patrons. This is primarily owing to a higher awareness and acceptance of attributes of these meats. Consequently it is the fine-dining establishments, which specialise in European cuisine and tend to offer a wider range of game bird products. To a limited extent, some Chinese restaurants in the same segment do offer game bird meats other than duck meat. The patrons of these restaurants are identified to be typically from China and Hong Kong than Singapore. This is due to a generally higher awareness and appreciation of these birds as similarly noted for European customers. Singapore’s fine-dining restaurants are located both in hotels and in independent venues. These restaurants may specialise in a particular cuisine, such as Western dishes, or may offer a range of fares, particularly in hotel restaurants. High-end restaurants have primarily targeted a small but discerning group of consumers who accept and appreciate game birds in terms of seasonality, taste and value. Nationalities of identified consumers include French, British, German, American, Malay, Indian, Japanese and Chinese, showing that game birds have wide appeal. There is industry consensus, however, that demand within this consumer group is largely from European expatriates and tourists familiar with that continent’s gourmet offerings. Although this segment drives demand, its use of game birds is limited compared to beef and seafood. It is the clientele that determines whether a restaurant uses game birds. Consequently, restaurants that specialise in European, and particularly French, cuisine use more game birds. Many of these restaurants are located in

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Singapore’s five-star hotels and cater to hotel guests, expatriates and local Singaporeans. These restaurants may specialise or offer a range of international cuisine. Within the fine-dining segment, the demand for game birds differs between the independent venues and those located in hotels. The demand for most game birds from independent restaurants is seasonal, with peak consumption between October and January. Depending upon their availability during this period, these game birds will feature as a regular menu item. Most products used within this segment are from France, and the time period mirrors the European winter when these meats are traditionally served. European-trained chefs are taught that quality products are available only at this time. Although there are no defined seasons within Singapore, most chefs prefer to copy European consumption patterns. Singaporean Chinese chefs working in French restaurants also share this preference. Most, if not all, game birds used within this segment are farmed. Most birds can be farmed year round, except for pheasant and partridge which can only be produced during certain times of the year. Although a small number of restaurants offer quail and duck all year round, peak demand for these products continues to be at year’s end. Some chefs indicate that increased in-market availability would lessen the appeal and value of these boutique meats. Within this segment, there is a high proportion of European chefs trained in the preparation of game birds. Their influence on consumption cycles, however, is less evident in hotel restaurants, where their observance of seasonal demand for most birds is less pronounced. In most venues where interviews were carried out, quail, pigeon, duck and turkey feature all year round. In restaurants that offer partridge, pheasant, guinea fowl and goose, demand is at year’s end. Although there is a higher acceptance and usage of game birds within the fine-dining segment, it is common for restaurants to use only a limited range of these meats. Low consumer demand for all products except duck is a reason popularly cited. In instances where restaurants use ‘exotic’ birds such as pheasant, guinea fowl and partridge it is usually for promotional purposes, or for special dinners requested by clients and usually held at year’s end. Quality product is imperative in this segment and many chefs tend to avoid using partridge, pheasant, goose, guinea fowl and turkey, criticising them as too tough and/or dry. Turkey is an exceptional case. In most independent fine-dining restaurants, turkey does not feature, even during the Western holidays of Christmas and Thanksgiving when this meat is usually popular. In these restaurants, turkey meat is considered to be inappropriate for the fine-dining segment or too common for Christmas, and some chefs would prefer to serve a quality piece of duck breast. In hotel restaurants, however, turkey meat is a buffet item and popularly features all year round. Among Muslim consumers in particular, turkey is increasingly popular as a substitute for chicken and pork. Turkey is widely available in Singapore’s retail segment and there is greater awareness of this meat than of most other game birds. To a very limited extent, game birds do feature in fine-dining restaurants that serve Chinese cuisine. Duck is widely available through wet markets to the fine-dining segment and is well accepted among local Chinese who favour the traditional delicacies of roast and Pekin duck. Local awareness of other game birds is limited, and in most cases these will not feature in restaurants specialising in Chinese cuisine. Apart from the strong gamy flavour, local consumers find the smell of many game birds off-putting, and perceive that the dish is spoilt. Partridge and guinea fowl were examples noted in particular. In general, there is a high awareness of turkey among local Singaporeans, but this meat is considered to be ‘too tough and dry’ and not favoured. Varying awareness and acceptance of particular game birds among Chinese consumers is observed. Research indicates that there is higher acceptance of quail, pigeon and goose among Chinese consumers from Hong Kong and China than among local Singaporeans. Production and trade of these products in Hong Kong and China are cited as reasons; and the increased presence of chefs from these countries and their introduction of these relatively unknown birds to the market are believed to influence awareness. There is a small number of local Chinese Singaporeans who appreciate the more ‘exotic’ game birds, but the industry quantifies this group as ‘only a handful’. These ‘Western-oriented gourmet locals’ have travelled extensively to countries such as France which produce game birds, and have increased their awareness of these meats and familiarity with them as a consequence. Among local Singaporeans fine dining, particularly in French restaurants, is reserved for special occasions such as birthdays and anniversaries. To most locals, moreover, this segment is financially inaccessible, and they tend instead to dine at venues such as local neighbourhood hawker centres, which offer cheaper meal options. With

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the availability of game birds currently concentrated within the fine-dining segment, local awareness of most products is likely to remain low as a consequence. The fine-dining segment is identified as popular among Singapore’s younger generation. This group is described as ‘adventurous’, and some industry representatives believe that their willingness to try new products will aid in increasing market acceptance for these relatively unknown meats. There is contrary opinion, however, suggesting that although this generation is open to new products their infrequent dining at these restaurants results in a leaning towards ordering familiar meals. There is mixed opinion among industry about the future demand for game birds within this segment. With the emerging trend of casual dining and a preference for light cuisine such as Mediterranean, Italian and South African, one chef predicts that consumers will move away from these ‘heavy’ meats, which are more appropriate to French cuisine. As a result, demand will stabilise or even decline. Others are more positive. There is wide consensus that Singapore’s game bird market is immature owing to low product awareness among locals. It is believed that travel by locals will increase demand in the future, albeit slowly. Chefs consider that it is a concerted effort between game bird producers and Singaporean suppliers that will prove most beneficial to future market developments. There have been recent in-market promotions during the peak season in both European and Chinese-style restaurants to increase awareness and attract a wider clientele. Key purchasing factors Singapore is a price-conscious market. Simply put, Singaporeans want high quality at a competitive price. While this demand clearly underlies all purchasing decisions, it is more evident among importers than among chefs within the fine-dining segment. Importers contend that a slight difference in price can tip the balance, whereas chefs strongly emphasise that it is quality of product that is of foremost importance. To demonstrate this, some chefs declare their preparedness to pay the higher prices for imported European products (reflecting transport and currency conversion costs) to satisfy their own and their customer’s expectations. Quality is clearly a determinant of purchase, but it is not known at what point price becomes more important. Other purchasing factors identified were, in order of importance, country of origin, product packaging, consistency of supply, reliability of local suppliers (delivery time), and size consistency. There is wide in-market recognition of Europe as the true and traditional supplier of game birds, and country of origin strongly influences initial preferences of users. A contributing factor for this is the high proportion of European-trained chefs within the fine-dining segment. Interestingly, chefs place little emphasis on reliability of local distributors and supply. This stems from a widely held confidence among chefs that they will always be able to find alternative in-market suppliers who sell products of comparable quality when there is a supply problem (see section 4.5, ‘Distribution channels’). Importers, on the other hand, consider supply consistency and reliability, alongside price, to be the most important factors. The ease and willingness with which local chefs say they are prepared to swap distributors places mounting pressures upon these distributors and their emphasis on price. Retail The retail market for game birds is presently limited with demand primarily for duck, turkey and to a lesser goose. The availability of these products is higher within supermarkets that specialise in gourmet foods and / or attract middle to high-income locals and expatriates with research indicating opportunities within the serviced delicatessen section. Demand for whole frozen turkey and goose is mainly seasonal during western holidays. Turkey cuts, such as breast meat are available in cold cabinets sold in pre-packs or as individual slices through the delicatessen and are marketed all year round. Whole fresh and frozen duck is also available however it is most commonly sold and preferred fresh through local wet markets. Marketing of any product, particularly new and unfamiliar items, within Singapore’s retail segment is described as challenging. Brand competition in this segment is strong, and exporters must invest in regular in-store demonstrations, point-of-sale materials and appropriate packaging to increase awareness and acceptance, and ensure repeat customer purchasing. This can be a long process. Frozen items are known to become ‘lost’ against well-developed brands, and product turnover can be slow.

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The delicatessen section, however, is believed to offer better opportunities. This section is well staffed and enables preparation and product advice to be shared with the customer. Also, customers are able to trial products by buying smaller individual portions, which is an appealing factor when purchasing an unfamiliar product. It is commonly suggested by importers, however, that exporters should concentrate primarily on increasing customers’ awareness and acceptance through the fine-dining segment, because this will encourage retail purchasing also. Catering services As present demand for game birds is primarily generated from Singapore’s fine-dining segment, limited research was undertaken for the catering service segment. In-market discussions do reveal that there is demand for game bird products through catering companies, which fulfil service contracts for major service providers. An example is Singapore’s Airline Terminal Services (SATS), which services Singapore Airlines and other major international carriers and invites companies to tender for specific supply contracts. Menu design depends on passenger profiles, market trends, prices and the availability of ingredients. Product requirements While in-market preferences strongly identify demand for wild European products, meat specifications in terms of weights, packaging and essential qualities is not clearly expressed and at times is unclear. Most birds are perceived to be new to the market and so apart from duck where expectations from both consumer and user are high, characteristics such as breed are not considered important at this time. Importers did indicate that certain requirements do exist, however were not always willing to disclose these specifications for this research. There is a wide range of available products in terms of product form (i.e. whole, portioned) and weights. Game birds are used in a variety of dishes and users indicate that there are no set cuisine specifications. All users stated that they are happy with present supplies, but it is not known whether their use of products is based on their requirements or on market availability. Table 4.4 lists the products that are currently received by restaurants; however, not all users were able to comment, and product size and form may not reflect the wider market.

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Table 4.4: Game bird products used within the fine-dining segment

Item

Normal size

Usual package & average wholesale price per kg

Remarks

Quail 40–60 g (breast) 100–450 g

2 pieces sealed in plastic 6 pieces on styrofoam with plastic wrap Individually plastic wrapped on a styrofoam tray. A$31/kg

Users are receiving whole bird, with or without head, skin-on, butterfly bone-in or boneless.

Flesh must be pale have a nice bite –not too soft or hard.

Pigeon (squab) 150–600 g Individually plastic-wrapped on a styrofoam tray. A$35/kg

Users are receiving whole bird, with or without head, skin-on, butterfly bone-in or boneless.

Pheasant 700–1.2 kg Individually plastic wrapped A$34/kg

Users are receiving whole bird, without head, skin-on, bone-in.

Duck (whole) 2–2.5 kg 1.2–3 kg

Individually wrapped in plastic A$20/kg

(from Australia and France) A$4/kg (from Malaysia and China)

Users are receiving whole birds, frozen, with or without head, skin-on and bone-in.

Further qualities mentioned were that the meat must not be too fatty and must not dry too easily.

Users want whole bird, fresh chilled or frozen with head, skin-on, bone-in (Malaysia, China), head on – can tell the freshness by looking at the head.

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Item

Normal size

Usual package & average wholesale price per kg

Remarks

Duck breast 140–300 g


Users will accept skin-on.

A thick and tender breast is required.

Turkey (whole) 4–6 kg



Partridge 200–400 g

10–20 pieces per case A$26/kg


Guinea fowl 180–200 g breast 400 g – 1.5 kg


Users are receiving whole bird, with or without head, skin-on, bone-in.

Goose (whole) 4.5 kg Individually wrapped in plastic A$25/kg

Users are receiving whole bird,without head, skin-on, bone-in.

Source: Interviews with chefs in Singapore November 2002. Personal interviews do reveal a strong commonality in preferences for game birds, for both Western and Chinese cuisine. In all instances quality product is essential. Product must have a good odour, a full-bodied breast, must be packaged appropriately for ease of handling and to prevent contamination, and be void of blood. Fresh product is also desirable as it enables users to easily determine the quality of the product. The level of freshness is determined by looking at the bird’s head. However, users indicate that they do not mind if the bird’s head is removed as most products are received frozen. Most game birds are considered to be new to the market and the breed of bird is not considered to be particularly important at this time. The exception is duck. Pekin duck is considered to be a Chinese delicacy. Whole Peking ducks, sourced from neighbouring Asian countries, are commonly used, because they are high in fat which when cooked presents a thin and crispy skin. In these dishes it is this skin rather than the flesh that is desired. The meat from these birds, which is commonly described as ‘tough’ and ‘stringy’, is of lesser importance and is often served medium-rare accompanying noodles or rice. In dishes where duck meat is of importance, thick breast fillets from France are preferred. Both Chinese and European chefs share this view. Market perception of Australian products Singapore’s game bird market is largely Eurocentric in terms of users and consumers. It is Europe that is widely renowned and accepted as a traditional producer of game birds, and is the benchmark against which Australian products are commonly compared. Feedback initially suggests strong loyalty for European products among users. Beneath the surface, however, are perceptions and at times misconceptions that strongly dominate users’ preferences, often clouding their opinion of Australian game birds. This is particularly evident where foodservice users draw inappropriate comparisons between Australian and European products, often creating confusion. Users strongly associate Australian game birds with ‘farmed and frozen’, which are commonly identified as less desirable product attributes. Overwhelmingly, user preference is for wild sourced, fresh chilled European game birds, particularly from France. This desirability stems from the heavy gamy taste and firm texture noted to be absent within farmed products. Interestingly, however, all European-sourced products are frozen and most if not all game birds derived from France are farmed; nevertheless, French products are still perceived to have positive attributes. Farmed game birds, specifically Australian products, are deemed to be more suitable for Chinese restaurants and local clientele than for European cuisine. Chefs have observed that Chinese consumers, who are unfamiliar with

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the taste attributes of game birds, tend to be averse to the strong earthy taste that is characteristic of European products. While these products are believed to be more suitable to the local palate, this argument does not include farmed French game birds. At the time of research, 9 out of the 15 restaurateurs interviewed were using a range of Australian products – quail, duck, pheasant, guinea fowl, pigeon, partridge and goose – as part of their regular or promotional menu. These restaurants are primarily serving modern European-style cuisine to a diverse clientele base of local Chinese and expatriates and tourists from both Western countries and elsewhere in Asia. Two users confirmed that underlying their use of Australian products is its suitability to local tastes, supporting the above statement. The supposed inappropriateness of Australian farmed products for Western clientele does warrant questioning, however. Overall, restaurants identified that key customer demand for game birds comes from Europeans. Only a very small number of the locals who request these meats are described as appreciating the product’s qualities primarily as a consequence of their travel experiences. Furthermore, guinea fowl and partridge are considered by local Chinese to possess an offensive smell, and their demand for these birds is very low to nil. Demand patterns therefore suggest that there is currently a higher consumption of Australian products among discerning European clientele than among local Chinese, and challenges popular thought of a limited customer base for these farmed game birds. There is a strong awareness in the foodservice industry that Australian game birds are frozen. Within the fine dining segment quality is imperative and synonymous with fresh product. Users state that the meat’s fibres are hardened during the freezing process, and moisture and texture are lost when it defrosts. Consequently, the meat loses its tenderness and flavour and is considered to be less desirable. Two chefs stated that they were not keen to use Australian products for this reason. With the exception of Malaysia and in accordance with Singapore’s market entry requirements, all imported game birds are frozen. One chef did admit, however, that he is receiving fresh chilled product from France even though Singapore import requirements state that only frozen product is permitted from this country. The extent of distribution of these French fresh chilled products within this segment is not known, but helps explain why Australian and not European products have attracted the ‘frozen’ tag. It also demonstrates how industry-wide misconceptions can affect purchasing decisions. At present, the market does not widely acknowledge Australia as a producer of game birds, and importers in particular query whether the Australian industry is capable of uninterrupted supply, as is characteristic of the larger producing countries. This perception is further fuelled by in-market awareness that Australia has experienced and is susceptible to future exotic disease outbreaks such as Newcastle disease. Nevertheless, importers maintained that past supply disruptions have not created any negativity towards Australia’s game bird industry. Chefs say that their decision to resume their use of a country’s products after an interruption to supply depends on health approvals by Singapore authorities as well as on consumer and media opinion. In the meantime, restaurants will source products from alternative approved countries. Unsurprisingly, chefs indicated their readiness to resume the purchase of French products if such events were to occur. It is not known whether this enthusiasm would wane if frequent supply interruptions were to occur, or whether this forgiving attitude extends to Australian products also. It is product origin that is most memorable to chefs, and this explains the low level of brand awareness among the interviewees. This unfamiliarity with brand names applies to Australian game bird products as well as to those sourced from other countries, including France. Users frequently highlight quality as a key purchasing factor. Although there is some in-market awareness of the Australian export game bird brands, such as Game Farm Pty Ltd and particularly Luv-A-Duck Pty Ltd, it was product origin and attributes that were more familiar to the chefs interviewed. Of the nine interviewees currently using Australian products, five indicated that they had not heard of these brands. Chefs explained that their customers do not inquire about particular products, so they too express little interest in knowing such details. There is also believed to be a wide assumption among consumers that game birds are mostly sourced from Europe, and this suggests that origin alone may satisfy them. Compared with other countries, Australia is a newcomer as a supplier of game birds to Singapore. Within a short timeframe, however, Australian game birds – particularly quail and duck – have come to be popularly used in high-end restaurants alongside French products. While European birds are strong market favourites, Australian products are described as suitable to the market in terms of quality, price and supply. Australia has attracted a clean and safe image and its farmed products are widely considered to be hygienic. To users who place less importance on origin, they are drawn to the consistency of quality and size of these farmed products.

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Importers and users frequently identify a lack of aggressive promotion as being responsible for the low in-market awareness of Australian capabilities. In response, Australian exporters with the support of Singapore importers and restaurateurs have recently undertaken a series of promotional dinners in both European and Chinese restaurants to profile the range of Australian game birds available. Some of these restaurants participated in the research for this project. Of the 15 interviewees, 11 indicated their interest in sampling Australian game birds or supporting future in-market promotional activities. Users who were not interested in purchasing Australian products cited a number of reasons, which included a dislike of frozen products and unwavering loyalty to European producers. Interestingly, however, the majority of users keen to try Australian products initially expressed their fervent support for French products. This again raises questions as to the depth and credibility of this loyalty. Current suppliers Table 4.5: Current suppliers of game birds to the Singapore market

Major suppliers Well-known brands Strengths Australia Mulwarra, Game Farm – quail

Game Farm – pigeon, guinea fowl, pheasant, partridge Luv-A-Duck – duck

Growing awareness of Australia’s capabilities to produce a range of quality game birds. Consistency of quality and size and subtle flavour associated with farmed products is increasingly favoured for its suitability for the local market.

China Quail, pigeon, duck (no brands specified)

Price-competitive supplier with many products imported from Hong Kong for value adding and then re-exported to Hong Kong.

France Bresse – quail, pigeon, pheasant, duck (whole and breast) La Margelle – pigeon, Cinstaing – duck breast, duck liver Loire Valley – pheasant, duck (whole and breast) Rougnet – duck breast Bizsc – duck breast Goose, partridge, pheasant (no brands specified).

Widely respected as a traditional supplier of premium-quality game-bird products. Strongly favoured as key supplier based upon perception that French products represent the true taste of game birds.

Thailand Duck (no brands specified) Price competitive supplier of frozen duck products

Malaysia Duck, duck breast (no brands specified).

Price competitive supplier of fresh chilled duck products

USA Butterball, Norbest (turkey), Goose, Partridge, quail, guinea fowl, duck, pheasant (No brands specified).

Strong in-market recognition for turkey branded products, whole and portioned.

Hong Kong Pigeon (no brand specified) United Kingdom Guinea fowl, pigeon, partridge (no

brands specified) Strong preference for European products.

Note: The above table represents only countries that have been identified through interviews with chefs and trade statistics. It is acknowledged that these countries may supply other game bird products and that other suppliers may be present within the market. Singapore is currently sourcing game bird products from a number of countries. However it is France, the United States, Malaysia and China – high-volume game bird producers – that pose the greatest competition to Australia. There is low brand awareness within the market and the following perceptions are broadly applicable to the country rather than any specific brand.

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France is identified as Europe’s main supplier of game birds to Singapore. Within the fine-dining segment, France is commonly acknowledged and respected as a traditional game bird producer and is widely perceived to be the only supplier of premium-quality products. The desirability of French products stems from the strong gamy flavour of the meat, described to be the ‘real taste’ of game birds. This is a characteristic associated with wild hunted birds and frequently stated to be absent from farmed products. Research interviews, however, indicate that wild supplies of European game birds are diminishing and increasingly game birds are farmed to offset these supply shortages. From the interviews it seems that there is acknowledgment among users that most, if not all, French game birds are now farmed; but this fact is not openly expressed, or associated with these products. Frequent comparisons by users between French and farmed game birds from alternative suppliers such as Australia imply that there are taste differences between the meats, which may help explain this opinion. Climate, diet and species were given as reasons for this perceived difference. Singapore importers say that the French product is price competitive and consequently favoured within the price-conscious market. French processors are able to supply product at the same price with or without bones; quail and duck were examples noted. For most Australian processors, bone removal is highly labour-intensive and boneless products are more expensive. The USA is recognised for its long-held monopoly of the turkey market within Singapore. Although it is identified as supplying a range of game birds including quail, guinea fowl, duck and pheasant to this market, these products rate little to no mention. The two major US brands of whole and portioned turkey products that are currently dominating the market are ‘Norbest’ and ‘Butterball’. These brands are well-known and command strong loyalty among importers, retailers and end-users alike, owing to the perceived high quality of the meat, which is described as juicy and tender. The USA is a high-volume producer of turkey and prices are stated to be very competitive. Consequently, importers frequently use this supplier as the benchmark for potentially new market entrants. Importers indicated that alternative supplies from the United Kingdom were tested on the market, with little success. During the preparation of the bird the skin would tear; this was believed to be a result of processing methods used in the UK. The USA continues to be the market’s sole supplier of turkey products. The main suppliers of whole ducks to Singapore are Malaysia, Thailand and China. Malaysia is the sole supplier of live ducks to the market, with frozen supplies received from the other two countries. For Chinese cuisine, duck is an integral ingredient, and in the preparation of roast duck and Pekin duck the preference is for Asian-produced birds. Importers indicate that European processing methods place great stress upon the skin of the birds, making them unsuitable for these Chinese delicacies. When the feathers are removed from these birds a waxy coating is applied, and this results in the skin tearing during preparation. As it is the skin that is favoured foremost in these dishes, these birds are unacceptable. The exception is duck breast, where French product is preferred for its thick and tender breast fillets. Prices are very competitive among the Asian suppliers. On average, duck products from Malaysia and China are only 20% of the price of similar products from Europe and Australia. This price difference is commonly cited as a reason why Australian whole ducks may not be competitive within the Chinese segment of the market. Distribution channels Game bird products, both imported and locally produced are distributed direct to fine-dining restaurants; supermarkets and catering services through Singapore based importers. A broader range and higher volume of game birds including those that are typically classified as exotic meats are marketed by a small number of establishments, which concentrate on the high-end of the food service industry and import boutique food items. There are distributors that specialise and prefer to source products from particular regions, such as Europe. However during supply shortages, these companies are known to abandon regional preference and seek alternative suppliers to satisfy chefs easily inclined to seek supply from alternative distributors. There is however other companies who place greater emphasis on acquiring premium product irrespective of origin. Outside this group of specialist importers, there are many companies that regularly distribute only duck, turkey and goose, which are the most popularly accepted and demanded meats within the market. These distributors are also known to handle locally produced birds such as quail, partridge and pigeon, though volumes are small and sporadic. These distributors occasionally handle the more unusual game birds such as pheasant and guinea fowl,

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usually in response to a client’s special request. Ducks that are imported from Malaysia and China are commonly sourced by local traders who widely distribute both fresh and frozen product direct to wet markets through to the high-end dining segment. Chef loyalty to particular importers/distributors is characteristically low, with many acquiring products, and in some cases the same item, from a number of distributors. Users consider product quality rather than brand or origin to be the most important purchasing factor. However, where European product is preferred, users will tend to patronise suppliers who specialise in importing products from these countries. There was wide opinion among interviewees that, because the market for game birds is relatively small, all suppliers are handling product from similar sources and product quality is relatively comparable. Consequently, in the event of a supply shortage, users simply contact an alternative distributor. This perception may be applicable to the popularly branded turkey products, which are commonly handled by a number of importers. In some cases, however, producers and/or exporters are engaged in an exclusivity arrangement restricting the wide distribution of brands. In a market where low brand awareness is common, exporters who are engaged in exclusive distribution contracts rely heavily on the credibility of their importer to ensure that restaurant rotation of in-market suppliers and therefore brands is minimal. Figure 4.1 illustrates the market distribution for game birds in Singapore. Figure 4.1: Game bird distribution channels, Singapore * May handle local produce. Key Direct sales from producers to public Distribution of domestic production Distribution of imported products from Malaysia and China Distribution of imported products from other countries

Importer (agent/distributor)

Wet markets (fresh ducks)

Fine-dining restaurants (all birds)

Major supermarket

chains (duck, turkey,

goose)

Re-exports (mainly to other Asian countries such as China)

Local supplies (mainly quail meat & eggs)

Imports from other countries

(frozen only)

Importers for the food service segment*

Catering services (select birds)

Direct to the public (pigeon, turkey,

partridge & guinea fowl)

Imports from Malaysia & China

(live & frozen)

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Market access Singapore is internationally recognised for its enforcement and maintenance of high industry standards in food safety and hygiene. A few indications of the high standards enforced include the country listing of all accredited facilities involved in the preparation of endorsed poultry products as well as ante and post-mortem inspections. Exporters commonly describe these standards as stringent and the individual interpretation of exporter requirements for this market is at times challenging and frustrating. There are no import duties applicable to game birds within Singapore. Imports do, however, attract a compulsory 5% goods and services tax (3% before 31 December 2002) which is levied on the cost insurance and freight (CIF) value of all food, drinks and edible agriculture products destined for this market. The Agri-food and Veterinary Authority (AVA) is one of Singapore’s food regulatory authorities and is responsible for enforcing laws relating to meat, poultry, seafood and fresh produce. All establishments (slaughter, boning and processing) that are involved in the preparation of poultry and wild and farmed game meat and products destined for the Singapore market must be listed with the AVA. Australian exporters must first lodge their application of interest to export to Singapore through the Australian Quarantine and Inspection Service for endorsement. If the application is accepted, AQIS then informs the AVA that the establishment has been approved for the export of farmed game meat. The final decision is with the AVA, which may request additional information and photographs from the company to assist with the assessment. Until written notification is received from the AVA that the establishment(s) is Singapore listed, production for this market cannot commence. Only products listed on the endorsed application are permitted entry. A company that desires to export other game bird products or value-added variations of approved products must submit a new application. Exporters may also be required to present Halal certification for this market. Singapore requires all imported products to be subject to both ante- and post-mortem inspections on-farm by a company veterinarian, and produced in an export-registered establishment under the supervision of an AQIS officer. This must occur for each export shipment and must be accompanied with an EX195 health certificate. At the time of export, the product must be certified as free of Newcastle disease. The importing country, which sets the rules and regulations for import, has the final decision on whether a product will be approved and permitted entry. In the event of a disease outbreak, individual countries set their own standards and may restrict imports at a national, state or regional level. In some cases where an outbreak has been declared during shipment, product will not be cleared for market entry and is the responsibility of the exporter. Exporters must be prepared for restricted market access as a result of these outbreaks and identify alternative markets to minimise loss. Only frozen game bird products are legally permitted into Singapore. Chilled chicken meat (including meat from poultry species that are processed in a similar manner to game meat (including game birds such as pheasant and quail) are prohibited. An exception is sous vide products, which are heat-treated foods packaged for extended shelf life and are considered chilled meats. Similarly, approval must be obtained from the AVA. All consignments that are destined for Singapore must be shipped directly. In most instances, companies want to test market responses through exporting product samples to interested parties. Because individual countries impose their own import standards, this evaluation stage usually occurs before there is any serious company investment in satisfying market requirements, such as country listing. The AVA does permit travellers to bring into Singapore up to 5 kg per person of poultry products, including game birds, for personal consumption (i.e. not for commercial sale), without certification. However, where shipments exceeding 5 kg are exported, Australian companies must observe the market listing and inspection requirements for Singapore. Acquiring acceptance for products in any market can be a very long process, and the inability to export larger volumes for the purpose of providing samples can make it an extremely expensive undertaking. Australian exporters commonly emphasise how discouraging such restrictions on exports can be. This is a broad outline of market requirements only, and potential and existing exporters intending to access this market are strongly advised to contact AQIS to confirm Singapore’s import requirements. It must also be observed that the import country sets its own standards, which can change.

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Summary of opportunities Table 4.6: Singapore market opportunities for Australian game birds

Bird type Market demand Supply capabilities Competitiveness Duck Moderate Good Strong European presence within

market. Strong preference expressed for French products. High volumes of cheap live and frozen product from neighbouring countries sold in target market segment.

Goose Low Low Minimal Australian production. Guinea fowl Low Moderate French product is the preference on the

limited occasions when Guinea fowl is used.

Pheasant Low Moderate French product is the preference on the limited occasions when Pheasant is used.

Partridge Low Low French product is the preference on the limited occasions when Partridge is used.

Pigeon Moderate Good Although there is reasonable demand for pigeon in this market, the strong preference is for French products.

Quail Moderate Good Although there is reasonable demand for quail in this market, the strong preference is for French or EU products.

Turkey Low Good Strong preference for US products.

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Hong Kong Market size Despite the usage of game birds such as geese, ducks, pigeons and quail in Hong Kong, the market is relatively small and relies heavily on imports. China has been the dominant game bird supplier to Hong Kong in the past, representing 86% of total imports in 2001. Since 1999 Hong Kong’s domestic game bird consumption has reduced considerably, following food safety scares, which have made many local consumers wary of poultry and related products. Because of Hong Kong’s limited domestic agricultural production and small local food-processing industry, market demands for most consumables have to be met by imports. In 2001, Hong Kong’s total food and beverage imports were valued at over A$15.5 billion (compared to Australia’s A$4.2 billion). Due to limited land resources and continuous urbanisation, game bird farms make up a small component of the rural land in Hong Kong. According to local trade associations, Hong Kong’s domestic game bird industry will continue to gradually decline. Traditionally game bird production was well-developed, focusing on pigeons, quails and ducks for local market consumption. Major setbacks were experienced in 1997 and 2001 following outbreaks of the ‘bird flu’ virus. On each of these occasions the government of the Hong Kong Special Administrative Region (HKSAR) destroyed all live poultry and farmed birds within the territory. Duck and quail farms were unable to continue operating, but pigeon and chicken growers have managed to redevelop production to almost pre-crisis levels. The game bird industry has also been affected by the HKSAR government’s encouragement of imports of chilled and frozen poultry products. Table 5.1: Local game bird production, 1998–2001

Item 1998 1999 2000 2001 Chicken (numbers)*

1 908 000 5 897 000 6 705 000 7 900 000

Pigeon (pairs) 1 547 000 916 160 428 000 400 000** Quail (numbers) 1 263 000 886 000 777 000 0** Duck (numbers) 124 000 44 000 0 0**

Source: Hong Kong Agriculture, Fisheries and Conservation Department (AFCD) * Local game- bird farming operations are often attached to chicken farms, so chicken production numbers are given for reference. ** According to AFCD, there are currently 60 permits for pigeon farming in Hong Kong. There are also 3 valid permits for quail farming operations and 30 permits for duck and goose farming; however it is believed that none of them are currently in operation.

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Table 5.2: Hong Kong’s total domestic consumption, 1997–2001 (tonnes)

1997 1998 1999 2000 2001 % growth

Domestic production

NA 1 986 1 160 583 400 –30

Total imports 75 425 79 126 103 593 94 254 75 720 10

Total re-exports 26 333 36 771 43 335 41 017 33 620 31

Total domestic consumption*

NA 44 341 61 418 53 820 42 500 –4

*Total domestic consumption = (domestic production + total imports) – total re-exports Source: Agriculture, Fisheries and Conservation Department (AFCD), HKSAR 2002 Please note that the data used in tables 5.2 and 5.3 are from two different sources. The differences between the import volumes in these tables are attributed to the different bird trade classifications used. For example some organisations record the category ‘Other Bird’ imports under the same classification as game birds, even though they are not included in the species list for the purposes of this report. In-country sources indicate that Chinese products are used widely in wet markets and the lower-end food service, whereas the premium market sector utilises the small quantities of higher-priced imports mainly from Western countries. Game bird imports in 2001 amounted to 75 720 tonnes, of which products of non-Chinese origin represented only 10 500 tonnes (14%). Hong Kong is an important transit port for food re-exports to China, Macao and other neighbouring Asian countries. Approximately 75% of the total non-Chinese game bird product imports are being re-exported, mostly to mainland China (33 620 tonnes in 2001). These re-exports are generally of various game bird cuts and edible offal. Table 5.3 demonstrates market trends over a 5-year period. The Hong Kong Census and Statistics Department have not segregated pheasant and partridge imports, so it is unclear what tonnages of these birds are used.

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Table 5.3: Hong Kong game bird imports, 1997–2001 (tonnes)

Yearly totals Bird type

1997 1998 1999 2000 2001

Quail Chilled Frozen Live

NA NA NA

NA NA NA

NA NA NA

NA NA NA

1 6 317

Pigeon Chilled Frozen Live

NA NA 2 112

NA NA 721

NA NA 914

NA NA 825

2 115 140 698

Duck Chilled Frozen Live

12 066 3 138 6 708

11 886 3 833 988

20 521 4 219 1 005

21 004 5 498 1 269

18 991 6 178 792

Goose/guinea Fowl Frozen Live goose Live guinea fowl

2 164 7 205 1 071

3 586 640 850

4 160 965 1 619

5 931 847 1 328

5 325 306 2 438

Turkey Chilled Frozen

557 21 932

145 30 082

878 33 832

841 25 256

289 18 710

Total 56 953 52 731 68 113 62 799 56 306

Source: Hong Kong Census and Statistics Department 2002. NB: No statistics were provided for chilled goose or guinea fowl imports. Please note that the data used in tables 5.2 and 5.3 are from two different sources. The differences between the import volumes in these tables are attributed to the different bird trade classifications used. For example some organisations record the category ‘Other Bird’ imports under the same classification as game birds, even though they are not included in the species list for the purposes of this report. Import trends for quail are hard to identify because of the lack of data recorded before 2001. It can be seen from the quantities in table 5.3 that a much larger proportion of live product is used than of chilled or frozen. Of the 7 tonnes of quail meat and edible offal imported in 2001, frozen product was in the majority with 6 tonnes recorded. Trends over the past 5 years indicate decreasing consumption of live pigeon in Hong Kong. For 1997–2000, data is once again not available for pigeon meat and edible offal. The data recorded in 2001 shows that chilled cuts make up most of the pigeon imports. Hong Kong’s duck imports have been growing over the last 5 years, with approximately 19 000 tonnes of chilled and 6000 tonnes of frozen product imported in 2001. Conversely, live duck imports have been declining during the same period to approximately 800 tonnes in 2001. Most geese and guinea fowl were imported as frozen whole birds. Live guinea fowl were in high demand also, with approximately 2500 tonnes imported in 2001. Imports of turkey into Hong Kong have been decreasing over the last 5 years. Frozen cuts are the predominant category, with around 19,000 tonnes imported in 2001. No tonnages have been provided for live turkey imports into this market. Market segments Hong Kong’s game bird usage is concentrated in the premium end of the market. Establishments in this sector purchase game birds to cater for their wealthier clientele who are looking for non-Asian or specifically European

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foods. Although other market segments utilise game bird products, these are mostly lower-quality live pigeon, quail and duck in wet markets and small retail shops. The population in Hong Kong consists of ethnic Chinese (98%), affluent expatriates (over 1%; people mainly of Western background and Japanese working in Hong Kong with their families) and foreign workers (less than 1%; mainly domestic helpers and construction labour). In terms of eating habits, Hong Kong Chinese enjoy a typical mix of Chinese, Japanese, Western and US (fast-food) dining cultures. There are three game bird market segments identified in Hong Kong. Fine-dining restaurants High-end silver-service restaurants use most of Hong Kong’s game bird imports. Generally these fine-dining establishments are located in large hotel chains where they are among a number of specialty outlets servicing upper market clientele. Market sources believe that there are approximately 400 up-market restaurants and clubs serving various cuisines in Hong Kong. It is estimated that around 20 of these offer traditional Western game bird dishes on their menus from time to time. These restaurants may even specialise in one type of national cuisine, such as French. Fine-dining restaurants periodically include game bird dishes during the year-end winter season, rather than as part of the regular menu. The Island Shangri-la Hotel features game bird dishes throughout the year, depending on customer demand. An example of a typical game bird dish on the Shangri-la’s menu is ‘Pigeon, artichoke and duck liver terrine with raisin and hazelnuts’. To cater for their discerning customer base, chefs and purchasing managers in these establishments are very selective about product quality and origin. Market information shows a declining trend in fine-dining patterns in Hong Kong. The current economic downturn means that eating out is often too expensive. It is usually only on special occasions that Hong Kong consumers still choose to dine out, when Western cuisine and theme restaurants are most favoured. Exclusive clubs Another premium market sector utilising game birds consists of the exclusive clubs in Hong Kong providing first-class dining. This type of elite venue usually has a fee-paying membership who visit the club for both social and business events. A strong emphasis on tradition and culture makes game bird dishes a popular menu item in these establishments, with game bird promotions conducted over the peak winter season. Although some chefs in this sector consistently include game birds on their menus, many conduct periodic promotions using game bird products, or only stock them as a specialty item around Christmas or Thanksgiving. The Hong Kong Club, for instance, held a ‘game and vintage port’ promotion in November 2002. This consisted of a specialty menu available for a 2-week period, including birds and other types of game. Specific traditionally European game bird dishes were served, such as ‘roast breast of Scottish pheasant’ or ‘Guinea hen with Savoy cabbage, prune sausage and Dow’s port marinated grape and game reduction’. The executive chefs in these premium clubs have a very strong preference for wild as opposed to farmed game birds. The head chef at the Hong Kong Club, for instance, will only cook with wild game birds. This practice reflects the chef’s European upbringing and game bird knowledge. Consequently, any game bird dishes on the Hong Kong Club’s menu are made using wild product, clearly distinguished from farmed, and prepared in the traditional way. That is, the unprocessed whole bird is hung for a certain period of time after being killed so that the internal natural ‘marinade’ can deliver a better game flavour. In this manner, a week-long special marinating process is undertaken in the restaurant to bring out a superior taste and meat texture. Chefs in this group of discerning purchasers all prefer sourcing from countries such as the UK (including Scotland), France and Hungary. Many of these chefs are from Europe and, because of the history of game bird products used in continental cuisine; these countries are naturally the origin of choice. Specifically, the history of game bird shooting in the United Kingdom, the French production heritage and the European culture of game meat appreciation, influence these high-end chefs to include such dishes on their fine-dining menus. Supermarkets The limited number of game bird users interviewed in the retail sector consisted of supermarket chains catering to an affluent clientele and offering a range of unique gourmet products. The supermarkets identified provide

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high-quality, imported game birds as well as a range of other authentic Chinese and non-traditional items (appendix B). In particular duck (both frozen and chilled), turkey and quail were most sought-after during the winter period. As in the restaurant sector, stocking rates of game birds within these chains vary according to customer demand. Products available in the game bird range are mostly whole chilled or frozen birds, and both uncooked and smoked duck and goose breast (appendix B). This niche retail sector does take consistent but small volumes of game birds (quails, pigeons, ducks and geese); however, turnover is once again highest during the Christmas and Thanksgiving season. The economic downturn in Hong Kong is making supermarkets more popular because: home dining is increasing, one-stop shops are now more attractive convenient/pre-prepared meals are being demanded the increase in supermarket trade means that these chains are fighting for market share by increasing

product range and promotions. Consumer groups: all segments The three groups of game bird consumers identified in Hong Kong are expatriates, Hong Kong Chinese, and some members of the local middle-class Chinese population. The consumption levels of each group are quite variable, but are always highest during the western holidays of Christmas and Thanksgiving. The consumers who most frequently purchase game birds in these segments are expatriates from the United Kingdom and France – that is, businesspeople of European origin living in Hong Kong. A small proportion of these end users are tourists visiting from the same region. Members of this group consider game birds to be part of their traditional diet and would consume them during business lunches, for instance. Hong Kong Chinese people who have returned from living, studying or working in a foreign country form another game bird consumer group. These individuals may have experienced game birds as part of European culture, and see these products as reflecting status and nostalgia. Consumption patterns for this population vary, but include both social and business occasions. Local affluent and middle-class Chinese are also known to consume game birds. This population usually consists of well-established, rich Chinese in the older age group and their family members. Influences such as the British governance of Hong Kong prior to 1997 have educated them about game birds. Many of these individuals have also studied overseas in the early part of their lives. Generally this consumer group is regarded as very conservative, and eating these specialty dishes is an exotic experience. Seasonality: all segments All three consumer segments consume game bird products throughout the year – except turkey, pheasant, goose and partridge, which are more in demand during the winter months. Peak demand for turkey is during the Western holidays of Christmas and Thanksgiving. In European countries, game birds are traditionally eaten during winter months because of the meat’s heavier texture and richer flavour. This period from October to February also corresponds with Hong Kong’s prime consumption time. Most game bird products (except pheasants, partridges and whole turkeys) are available to the market all year round; however they are generally used as promotional items. In many producing countries, farmed production is replacing traditional wild sources because of new hunting and export laws and this has contributed to limiting supply. The increased number of farmed as opposed to ‘wild’ birds being used means that most species can now be sourced at any time of the year. Birds available to the Hong Kong market all year round include: quails ducks geese pigeons guinea fowl.

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Seasonal items (October–February) include: turkeys pheasants partridges.

In order to secure wild game bird supplies chefs need to place orders with European suppliers around mid-August each year. Purchasing factors: all segments Interviews conducted with chefs and purchasing managers in the fine-dining segment, exclusive clubs and supermarkets uncovered the top ten factors when they purchase game birds: 1. price 2. quality (freshness) 3. product origin 4. availability 5. size consistency 6. commitment to service/exclusivity 7. packaging/presentation 8. quantity consistency 9. preference for wild birds versus farmed 10. chilled versus frozen. The interviews showed that price and quality are the top two requirements, with price identified as slightly more important. Game bird quality was described using product characteristics such as ‘flesh that bounces back to the touch’, ‘soft meat texture’, and ‘a fresh smell’. The emphasis placed on country of origin was especially significant to the fine-dining sector. Of the nine chefs interviewed, five said that product origin is a determining factor and two said that they would source birds only from Europe. They perceive nations such as France, the United Kingdom, Hungary and Germany as suppliers of ‘wild’ game birds that have the ideal ‘gamy’ flavour and meat qualities. Continuity of supply (availability) was identified as another important variable when determining which product to purchase. With a specialty product such as game birds, there are often supply problems experienced because of susceptibility to disease in the production environment. All three of the game bird market segments expressed a preference for chilled game bird, although frozen products are also accepted. Product requirements General user requirements are for the whole bird, with or without head and feet, in an ‘oven ready’ chilled or frozen state. Further desirable meat qualities mentioned for all birds were meat colour that is not too dark, flesh that bounces back to the touch, soft meat texture (young birds), high meat yield, size/grading consistence, fresh smell, and clean and intact packaging. Examples of these products can be seen in Appendix B. The following table summarises the product requirements of game bird importers, chefs and retailers in Hong Kong. Please note that product requirements and specifications may differ slightly from user to user.

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Table 5.4: Game bird product requirements in Hong Kong

Item

Normal size

Usual package & indicative price Remarks

Quail Normal: 150 g Jumbo (1): 180-200 g Jumbo (2): 200-230 g

20 pieces per carton A$18-23/kg*

Butterfly bone-in or boneless products are most popular. Quail is often used as entrées or in salads.

Pigeon (squab) 340-380 g 450 g, 500–700 g

10 pieces per carton A$29/kg

The wood pigeon is the most desirablevariety and can be used for soups andentrées.

Pheasant 600–1 kg, 1.1–1.5 kg 8 pieces per carton A$29/kg

Generally regarded as wild birdwith a gamy flavour.

Duck (whole) 1.3–1.8 kg 6 pieces per carton A$17–26/kg

Female mallard ducks are morepreferable because of the tender meattexture.

Duck breast (raw or smoked)

300–400 g 10–30 pieces per carton A$42-43/kg

Users will accept skin on or off, andchilled or frozen product.

Turkey (whole) Small: 3–5 kg Middle: 5–8 kg Large: 8-10 kg

2 birds per pack or individually vacuum-packed. A$5–15/kg

Requirements are usually for uncooked, smoked or stuffed birds that are mostly frozen. Potential also exists for value-added turkey products.

Item

Normal size

Usual package & indicative price Remarks

Partridge 200–400 g 10–20 pieces per carton A$17/kg

Generally regarded as wild bird with a gamy flavour. Only small quantities are demanded.

Guinea fowl 1–1.2 kg 10 birds per carton A$16–17/kg

Guinea fowl are quite often roastedwhole.

Goose (whole) 3–4 kg 2 birds per carton A$25/kg

Goose breast 350–400 g 10 pieces per carton. Vacuum- packed. A$42–43/kg

Requirements are usually for uncooked or smoked breast.

Source: Interviews with chefs and importers in Hong Kong 2002. *Average exchange rate is at around A$1 = HK$4.3 In terms of product presentation the requirements are for ‘oven ready’ birds tied up with elastic rubber bands, with a brand sticker on the individual bird, packed and wrapped on a tray. ‘Oven ready’ is defined as a cleaned whole bird ready for cooking, usually chilled, and with head and feet either on or off. Desirable packaging consists of wax or styrofoam cartons that are not too heavy, with soft tissue wrapping inside. Market perception of Australian products In-market research shows that although Australia is not a well-recognised source of all game bird products, there is a growing awareness of our competitiveness for quality duck, quail and guinea fowl. Hong Kong importers, chefs and retailers were interviewed on their perceptions of Australian game birds. Although positive comments were made regarding Australia’s meat colour, many interviewees stated that Australian game birds are too expensive and not as well received because they are farmed. According to Hong Kong importers Australia has a good reputation for quail, duck, pheasant, turkey and guinea fowl products. Australian guinea fowl and pheasant were described as being preferable to European because of their lighter meat colour. Duck products from Australia were mentioned as being of lower quality than European.

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In-market sources expressed concerns about the high price of Australian game birds. According to Hong Kong importers, Australian game bird prices are 20–30% higher than for similar-quality products from competitors in other countries. One trading company stated that duck especially was more expensive than other competing products. Other Hong Kong importers expressed the view that Australia’s game bird industry is fragmented and would benefit by learning from European producers. Some importers have experienced problems with continuity of Australian supply, and this is the motivation behind these statements. However, only two out of the fifteen companies interviewed made comments of this nature. Primary game bird users such as chefs and importers in Hong Kong were also questioned on their perceptions of Australian product. Generally there was a positive reaction to game bird supplies from Australia because of the high-quality pigeon, quail and guinea fowl sourced. Although there is some acceptance of Australian game bird products in Hong Kong, European countries are still the favoured suppliers among key users. The strong preference chefs have for product of European origin precludes Australia from being the primary country of choice in this market. Australian game birds would be sourced, however, if European products were unavailable. Hong Kong chefs and importers also perceive Australian product as being farmed rather than wild, which adds further to their somewhat negative perceptions of Australian game birds. One chef stated that he has a bad perception of Australian game bird products because they are not ‘game’, quality is not as high as European suppliers, and prices are unattractive. Colder climates with higher rainfall (e.g. European countries) are traditionally seen as the best production environment for game birds. Australia’s hot and dry weather patterns further limit our supply opportunities in Hong Kong. Perceptions of Australian game bird products were not given by any of the retail companies interviewed. In-country interviews also show that there are two Australian game bird suppliers and one consolidation company recognised. The specific Australian brands mentioned were ‘Mulwara’ and ‘Game Farm’ as suppliers of quail and ‘Luv-A-Duck’ for duck products. In-market perceptions reveal that Australia is still establishing a dependable name in Hong Kong’s game bird market. Although there is a limited range of Australian products sought after, Europe and in particular France are still the most desired countries of origin. Feedback suggests that Australia’s ranking in this market hinges on our ability to develop a domestic industry continuously supplying quality game bird products. Current suppliers The current suppliers to Hong Kong are mainly Eastern European countries, France, Germany and the United Kingdom, including Scotland. The United States, Australia and China also provide game birds to this market. Table 5.5 below links the country of origin, well-known brands and strengths of the supplying countries. As with other markets analysed, France and other European countries are the first-choice suppliers for game birds in Hong Kong. The only exception to this statement is for turkey, in which case US product is preferred. In terms of the lower-end market, China has been the traditional supplier to Hong Kong. When users are considering alternative suppliers in Hong Kong’s game bird market Australia is growing in competitiveness. Products sourced mostly are quail, duck and guinea fowl, with the Mulwara and Luv-A-Duck brands generally identified by the local trade. Negative perceptions of farmed birds produced in a hot climate are still limiting Australia’s potential. China has traditionally been a high-volume supplier of cheaper game bird products (pigeon, quail and duck), to Hong Kong due to a well-established poultry industry and decreased production and transport costs. Chinese game birds are predominantly sold to lower-end retailers and wet markets and are not purchased by the major segments. France is the most popular supplier of high-end market game birds in Hong Kong. This can be attributed to the famous national culture of game bird hunting and the strong production base that exists in France. Well-known French brands in this market are ‘Charmilles’ and ‘Barbarie’. Labels based on specific French production regions are also recognised, such as ‘Bresse’ and ‘Roue’ (appendix B).

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Game bird hunting is also common in the United Kingdom, including Scotland. Birds such as pheasant and partridge are pursued in this traditional manner for sport, which positions the UK as a well-known source of desirable ‘wild’ birds. The British Isles are also seen as having the ideal climate to produce quality game birds; the required environment for customary ‘wild’ game bird production is cool, with high moisture levels and reduced sunlight. Although the USA is not seen as a traditional producer of game birds in general, there is a high demand for US turkey products in Hong Kong. Turkey is a very seasonal product in Hong Kong, however, and peak consumption periods are during the western holidays of Christmas and Thanksgiving. Imports of American turkey consist mainly of whole frozen birds, with the Butterball and Norbest brands most popular (appendix B). Table 5.5: Current suppliers to the Hong Kong game bird market

Major suppliers Game birds/well-known brands Strengths (As identified by interviewees)

Australia Mulwara (quail), Luv-A-Duck (duck). Growing reputation as a quality producer. Lighter meat colour of guinea fowl and pheasant has been mentioned.

China Generic product going into wet markets. No brands specified for any bird variety.

Price-competitive supplier, with many products imported from Hong Kong for value adding and then re-exported to Hong Kong.

France Pays De La Loire (quail); Charmilles, Vendee, Bresse (pigeon); Barbarie, Roue, Le Gaulois (duck); Roue, Charmilles (guinea fowl); (pheasant, partridge, goose breast – no brands specified).

Famous as producer of game birds, with industry culture positioning France as supplier of choice. Perception that French product is ‘wild’, with better taste and texture.

Germany Goose breast (no brands specified) Favoured because it is a European supplier.

Hungary Goose (no brands specified) Favoured because it is a European supplier.

Poland Goose breast (no brands specified) Favoured because it is a European supplier.

UK including Scotland

Pheasant, partridge, goose (Aylesbury) Well-known for partridge and pheasant production and ‘wild’ hunting tradition. Favoured as European supplier.

USA Maple Leaf (duck); Norbest, Butterball, Norfolk (turkey); goose (no brands specified).

Primarily recognised as quality supplier of turkey products.

Note: The above table represents only countries that have been identified through interviews with chefs and importers and trade statistics. It is acknowledged that these countries may supply other game bird products and that other suppliers may be present within the market.

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Distribution channels The major importers of game birds are generally well-established food importers and distributors who handle a variety of food items for the upper end of the food-service sector. According to local traders, there are around 20 key importers for game birds in Hong Kong. Figure 5.1 illustrates the market distribution for game birds in Hong Kong. Figure 5.1: Hong Kong game bird distribution Key Distribution of imported products from China Distribution of imported products from other countries Mainland China and local (pigeon) farms are the sources of live game birds for this market. For all game bird species investigated, China is the larger supplier of live birds. The market segments identified as the primary targets for Australia rarely prefer live birds, instead preferring chilled or frozen, due to convenience and price. A high percentage of frozen game birds, cuts and offal are also re-exported to mainland China for processing and value-adding. The game bird import trade is largely confined to importers who supply to the food-service and retail sectors. Certain importers specialise in products from one country or world region, such as Europe, while others acquire different types of birds from many sources depending on price and quality. Some also specialise in particular types of products. These specialised wholesalers differentiate themselves by sourcing items that are in short supply or are hard to obtain. Importers can also act as in-market representatives, and may be involved in re-exporting.

Secondary Distributors

Consolidation companies

(agent/distributor)

Wet markets & lower-end

retailers (all birds,

mostly squab)

Exclusive clubs

(all birds)

Upper-end supermarket

chains (all birds)

Re-exports (mainly to mainland China)

Local supplies (declining – squab only)

Imports from other countries (chilled & frozen, minimal live)

Specialised importers for the food service industry

(wholesalers/ trading companies)

Restaurants & hotels

(all birds)

Game birds imported from China

(live, chilled & frozen to lower end of the market)

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Market access Hong Kong is a free-trade port that has no known access barriers to the entry of Australian game birds. Imports of head-on, feet-on chilled or frozen game birds and related offal products are permitted into Hong Kong, as long as certification has been received by the country of origin and goods are free of Newcastle disease (AQIS 2002). The following steps outline the necessary approval procedure for importing game birds into Hong Kong. First, the Hong Kong importer applies for a game-bird import permit with the information showing the scientific name of the specific variety to be imported from Australia. If the product name is recognised by the Food and Environment Hygiene Department (FEHD), the permit

will normally be issued within five working days. If the product name is not recognised by FEHD, they will consult the Agriculture, Fisheries and

Conservation Department (AFCD). Subsequent permission is often anticipated if the product is certified by AQIS for export. This may take approximately 10 working days.

The permit is valid for 6 months from the issuing date.

Before the game bird consignment is shipped, the importer applies for a specific import licence for the shipment by presenting relevant shipping documents and a copy of the related AQIS certificate. The licence is valid for 6 weeks. Generally any establishment that is export registered can supply product to Hong Kong. Other minimal requirements that must be observed are: ‘star stamp’ EX174 inspection and certification standard statutory declaration confirming product sourcing in relation to Newcastle disease ante- and post-mortem inspection.

At the time of export, the product must be certified as free of Newcastle disease. The importing country, which sets the rules and regulations for import, has the final decision on whether a product will be approved and permitted entry. In the event of a disease outbreak, individual countries set their own standards and may restrict imports at a national, state or regional level. In some cases, where an outbreak has been declared during shipment, product will not be cleared for market entry and is the responsibility of the exporter. Exporters must be prepared for restricted market access as a result of these outbreaks and identify alternative markets to minimise loss. The FEHD of the HKSAR government conduct the implementation of territory-wide policies for food safety control and import licence applications. In order to verify the import permission for the eight specific game bird species studied, the following scientific names were forwarded to the FEHD.

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Table 5.6: Scientific names of eight game bird species

Bird Order Family Genus Most common species

Common name

Pheasant Galliformes Phasianidoe Phasianus Phasianus colchicus

Ring neck pheasant

Guinea fowl Galliformes Numididae Numida Numida meleagris

Pearl guinea fowl

Duck (1) Anseriformes Anatidae Anas Anas platyrhynchos

Mallard, Pekin and crosses

Duck (2) Casrina Casrina moschata*

Muscovy

Goose Anseriformes Anatidae Anser Anser anser* Goose crosses Turkey Galliformes Meleagrididae Meleagris Meleagris

gallopavo* White Holland

Partridge Galliformes Phasianidae Alextoris Alextoris chukar*

Chukar

Quail (1) Galliformes Phasianidae Coturnix Coturnix coturnix

European quail

Quail (2) Galliformes Phasianidae Coturnix Coturnix japonica*

Japanese quail

Squab Columbiformes Columbidae Columba Columba livin* White king, mondain, red carneau

Source: Queensland Poultry Research and Development Centre, 2002. According to FEHD’s records of Australian game birds imported into Hong Kong, the species of pheasant, guinea fowl, duck (1), and quail (1) shown in table 5.6 are recognised; those marked with an asterisk in the table are not currently registered with FEHD. In most instances, companies want to test market responses through exporting product samples to interested parties. Because individual countries impose their own import standards, this evaluation stage usually occurs before there is any serious company investment in satisfying market requirements such as country listing. Acquiring acceptance for products in any market can be a very long process, and the inability to export larger volumes for the purpose of providing samples can make it an extremely expensive undertaking. Australian exporters commonly emphasise how discouraging such restrictions on exports can be. This is a broad outline of market requirements only, and potential and existing exporters intending to access this market are strongly advised to contact AQIS to confirm Hong Kong’s import requirements. It must also be observed that the import country sets its own standards, which can change.

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Summary of opportunities Table 5.7: Hong Kong market opportunities for Australian game birds

Bird type Market demand Supply capabilities Competitiveness Duck Moderate Good Growing awareness of

Australia as a quality producer but EU still favoured. USA is active in the market

Goose Low Low Minimal market demand and negligible Australian production.

Guinea fowl Moderate Moderate Growing Australian production is assisting with the rising market demand for Guinea fowl.

Pheasant Low Moderate Minimal market demand and average Australian production.

Partridge Low Low Minimal market demand and negligible Australian production.

Pigeon Moderate Good Demand for Pigeon does exist but EU product is still favoured.

Quail Moderate Good Growing awareness of Australia as a quality producer but EU product is still favoured.

Turkey Moderate Good Demand for Turkey does exist but USA product is still favoured.

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Japan Market size Japan’s food imports for 2001 totalled A$72.7 billion (compared to Australia’s A$4.2 billion). The domestic Japanese game bird industry is well developed, with production focusing on quail, duck, pheasant and guinea fowl (in order of volume). In addition, limited volumes of turkey and goose are also farmed. As at 1 February 2001, live game bird production in Japan totalled approximately eight million birds. Japanese game bird consumption is quite limited, however, with duck and turkey the most popular items. Total market size for game bird imports in 2002 (November to January) was approximately 11 000 tonnes (table 6.2 below). This was predominantly made up of duck, 10 000 tonnes of which was frozen and 135 tonnes chilled. As duck is the most popular game bird species it is also the most valuable, with imports of frozen duck for 2002 worth A$78 million and chilled worth A$3 million. Turkey was the second-largest import volume, representing 740 tonnes in the same year. This was all frozen turkey, with no chilled product imported during this period. Lastly, goose and guinea fowl collectively totalled 96 tonnes imported in 2002, with frozen product again dominating. Quails are the largest-produced game bird in Japan by volume; however, this sector focuses on eggs rather than on meat production. The domestic duck industry is valued at A$5 million, but local production of the other six species is very small. The key growing regions are in central Japan from Tokyo through to the Osaka region. In Japan, wild or hunted meat is generally called gibier (game meat in French). Traditionally ‘gibier’ meant wild birds or animals grown in fields or mountains, but due to the decrease in the number of wild birds produced, farmed birds are now also classified as gibier. There are also ‘half gibiers,’ or birds that are farmed and then released into the wild. The gibier available in Japan are both domestic and imported products (mostly from France). Wild partridge and pheasant are very difficult to obtain, so are half-farmed, then released to the wild and distributed as gibier. Table 6.1: Japanese game bird production (as at 1 February 2001)

Duck Turkey Quail Goose Guinea fowl Pheasant

240 089 2 653 7 416 894 942 22 566 126 355

Source: Chuo Chikusan Association (Central Livestock Association) Duck is distributed as aigamo in the Japanese market, with approximately 240 000 birds farmed in 2001. This production volume represents only 10% of local consumption. Osaka is the main production region, contributing 60–70% of the national volume, followed by Tokyo. Although there are a substantial number of quail produced in Japan (7.4 million in 2001), only a small amount are used for meat consumption. Generally male birds are processed for their meat, but it is poor-tasting because of the short farming period. Around 90% of quail distributed for food in Japan are farmed birds. Aichi Prefecture’s Toyohashi city and Higashi Mikawa region specialise in farming quails, and represent 65% of national production. Pheasant is a native bird of Japan and protected by law in the wild. Approximately 126 000 pheasants were produced in Japan in 2001. Special farming and sales licences are required to sell or purchase pheasant. Pheasant farming is very difficult and costly because of the small number of eggs produced. The production period is only from April to June, followed by 8–9 months to reach maturity. This makes pheasant production very intensive, and it is difficult to yield high volumes of birds. Pheasant is seldom seen in retail outlets and is not commonly available to the public. The Japanese market for pheasant is very small because: it is too costly and time-consuming to raise and farm pheasants (approximately 6 months), whereas duck

requires only 2 months; pheasant meat looks and tastes very similar to chicken, so generally people cannot tell the difference. This

causes problems when trying to differentiate pheasant from other poultry.

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Japanese turkey production in 2001 totalled 3000 birds, with the three major species being Broad Breasted Bronze, Broad White and Small White. Hokkaido is the largest producing region, contributing 58% to the national total in 2001. Demand trends for turkey in Japan show that smaller birds are becoming more popular, as well as portion cuts and value-added products. According to in-market sources, guinea fowl is unpopular in Japan and consumption remains low. It has been suggested this is because of the comparison made between guinea fowl and the meat of chicken broilers. The Central Livestock Association estimates 22 600 birds were produced in 2001, mainly in the Tohoku and Kanto regions. Domestic pigeon farming in Japan is very limited because two bird parents are required to raise each chick. There was no pigeon production recorded by the Central Livestock Association in 2001. Partridge is not produced in Japan and market demand is extremely low. Similarly, Japanese consumers do not see geese as customary edible birds and so practically no demand exists. Table 6.2: Japan’s game bird imports, 1997–2001 (tonnes)

Yearly totals Bird type

1997 1998 1999 2000 2001 2002 (Jan–Nov)

Duck Chilled Frozen

283 10 578

278 10 916

461 12 247

736 14 046

505 8 382

135 10 111

Total 10 861 11 194 12 708 14 782 8 887 10 246 Goose & guinea fowl Chilled Frozen

1 35

1 49

.2 47

.4 63

4 63

5 91

Total 36 50 47.2 63.4 67 96 Turkey Chilled Frozen

1 890

.4 828

.4 834

2 1,704

2 894

0 734

Total 891 828.4 834.4 1 706 896 734 Total, all types 3 066 2 922 3 116 3 731 2 993 11 076

Source: Japan Ministry of Finance 2002 There has been only a slight rise in Japan’s imports of game birds over this 5-year period (2%). Import trends for duck are showing increasing demand for frozen products in the last year (around 18%). The chilled duck market, however, has reduced significantly in the same period – whole ducks by 60% and pieces by 75%, and is now lower than at any time in the last 6 years. The total market for frozen imported duck from January to November in 2002 was 10 000 tonnes, at a value of A$78 million. Average wholesale prices of frozen duck are A$5/kg whole, and A$8/kg for pieces, and these figures are steadily increasing. The Japanese chilled duck market was valued at A$3 million for 2002. The average wholesale prices for chilled ducks are A$13/kg for whole birds, and A$23/kg for portions. The total imports of goose and guinea fowl from January to November 2002 were 96 tonnes, a 50% increase on 2001. Average wholesale prices of chilled goose and guinea fowl products in the same year were A$71/kg, and A$53/kg for frozen. Similarly to Japanese duck imports, frozen volumes have been increasing, with chilled products remaining steady over the 6-year period. Japan’s total frozen turkey market represents approximately 740 tonnes of imports in the 10 months to November 2002. The frozen turkey market for whole birds increased slightly from 2001 (360 tonnes) to 2002 (380 tonnes), whereas the frozen pieces market decreased significantly in the same period, with 533 tonnes and 350 tonnes respectively. Average wholesale prices in 2002 for frozen whole turkeys were A$4/kg and A$5/kg for turkey pieces. A negligible fresh market exists in Japan for turkey.

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There are no separate statistics for the other birds, such as quail, pigeon, partridge and pheasant, because they are categorised together. Market segments The most prominent game bird market segments in Japan are five-star hotels and high-end restaurants. Boutique game bird dishes feature on the fine-dining menus of these outlets to attract discerning consumers looking for continental food or a new taste experience. Although these segments are not regarded as the biggest users in terms of mass-market volume, they do use quantities of premium imported game bird products. Up-market hotels Game birds are commonly offered on the menus of French or other European-style restaurants in five-star hotels because they are considered traditional dishes in these countries. Establishments in this segment offer a variety of game bird species, with duck being the most popular, followed by quail, guinea fowl and pigeon. Partridge and pheasant are rarely used because consumers are not familiar with them. A number of these up-market hotels operate a range of restaurants, which serve cuisine from many nations to cater to the tastes of their multicultural clientele. Some of these hotels may have up to 13 different restaurants in the one complex including, for example, Chinese, French, Italian, Japanese and Mediterranean cuisine and a steak house. Game birds are prepared in the traditional continental fashion, with cooking methods such as roasting, confit and stuffing quite common. An example of a European game bird meal is ‘French quail wrapped with grape leaf ‘, available at the Rihga Royal Hotel in Osaka. Japanese people, however, tend to opt for more Asian-style dishes, such as grilled quail on skewers, kamonabe (duck stew), or kamonanban (roasted duck). Many chefs in these establishments are from European countries and are opinion leaders in the Japanese food-service industry. Some are also executive members of the Escofie Association, a group of experts on French cuisine. These European chefs stipulate that they will use only ‘wild’ European game birds on their menus, because authentic dishes require the traditional ‘gamy’ flavour that comes from the wild birds. Japanese chefs however do not have the same preference for ‘wild’ birds and usually source farmed product as a first choice. Game bird consumption levels in these hotels remain steady and usually increase around the Japanese winter when there are more parties and special occasions. Game birds are also more popular around Western holiday periods such as Christmas, especially for turkey products. Fine-dining restaurants Silver-service restaurants in Japan are the second major game bird market segment. These outlets provide authentic cuisine (usually French) to a premium market of consumers with mature palates. According to in-market sources, such restaurants are rising in popularity as the consumption of non-traditional Japanese dishes grows. Similarly to the hotel segment, these fine-dining establishments usually serve authentic European-style game bird dishes. Roasting is again popular, with quail often used in salads and whole birds as main meals. Other ingredients incorporated in game bird dishes are preserved fruit, nuts and vintage liqueurs. Breast portions of game birds are particularly often utilised in French cuisine. Game birds are served regularly on special occasions such as parties and weddings, and can be included in both finger food and formal meals. According to the chefs and purchasing managers interviewed in Japan, there has been an increase in consumption of game bird and other poultry products since the initial outbreak of ‘mad cow’ disease. Subsequent occurrences of this disease have made red meat an unpopular choice because of health concerns.

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Consumers: all segments Typical game bird consumers in Japan have discerning tastes and usually some background knowledge of the history and culture surrounding game bird hunting. Affluent consumers with mature palates, or those looking for a new dining experience, often choose game bird dishes. Although a large proportion of this population consists of foreigners, it also includes native Japanese. Consumers in this market can in general be profiled as middle-aged, wealthy people who typically regard themselves as gourmets of French or continental food. Certain chefs interviewed commented that game bird consumers have an appreciation for wine, and have spent time in Europe – usually France. It should be noted that although duck is well accepted by native Japanese consumers, in-market information suggests that in general they do not have a high level of awareness of most game bird species. Consequently they are reluctant to try these dishes. Seasonality: all segments Although a limited number of restaurateurs interviewed stated that there was demand for game birds all year round, for most establishments the peak period is during the Japanese autumn (September to November) and winter (December to February). Many restaurants have game bird promotions on their menus at this time to take advantage of the wild/gibier hunting season and supply period. This winter period is also the prime production time for European countries that are favoured game bird suppliers in Japan. Game bird products are available throughout the year except for locally produced ‘wild’ duck, which has a 4-month season. The prime season for domestic duck is from autumn to winter, with high-quality birds usually available after December. The Royal Hananoki Hotel in Fukuoka, for instance, serves duck as a regular menu item, but the use of other game birds depends on factors such as purchase price, seasonality and customer demand. Imported products are obtainable at any time of year, except for goose and partridge. Purchasing factors: all segments The most important purchasing factors when buying game birds in Japan are: 1. quality 2. price 3. stability of supply 4. useability In the Japanese game bird market, the factor rated most important when buying game birds for hotels and restaurants was quality, closely followed by price. The different meanings of quality included colour, smell, meat condition, freshness, firm meat texture, lack of blood clots, and taste. Other key factors mentioned were consumer acceptance, quality control and product availability. The importance of country of origin is unclear in the Japanese game bird market. The majority of those interviewed did not have any particular preference for the nation of supply, providing quality and price were reasonable. Although one importer did state that non-European product must be 30–50% cheaper if it is to compete in Japan. When questioned on satisfaction with current suppliers, in-market interviewees were generally happy. They would seek alternative sources, however, if current supply became unavailable, or if the usual source experienced a disease outbreak. In the event of current supply being affected by disease problems, most end-users would resume trade with this source once the outbreak had been controlled. Product requirements The majority of game bird products handled in Japan are uncooked and not value-added. Both chilled and frozen products dominate the market. Breast portions are the most popular game bird cuts in Japan, from duck, turkey and guinea fowl. Thigh portions of lesser species (quail and pigeon) are also widely used. Portions with the bone in are also used regularly across most species, and particularly the smaller birds such as quail.

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Certain restaurants utilise up to 50 portions of duck every day, but only around 20 portions of the lesser species per month. Although demand exists both for whole game birds and for portions, approximately 80% of requirements are for cuts from a variety of birds. Prices depend on whether the game bird product is whole, in parts, boned etc., and on the country of origin. Japanese chefs expressed a preference for farmed game birds: because they are easier to obtain; they are more convenient to use in cooking (no bullets, and softer meat texture); they are less expensive; and consumers do not like the strong smell of wild birds. The Japanese consumers, due to a general lack of knowledge about game birds, do not appreciate the traditional strong taste and rich aroma of these products. Table 6.3 summarises the product requirements of game bird chefs and retailers in Japan. Note that product requirements and specifications may differ slightly from user to user. Table 6.3: Game bird product requirements in Japan for chefs

Item Normal size/ weight (raw)

Packaging & pricing

Brand & origin Comments

Duck

0.8–3 kg whole 0.3–0.4 kg portion

Whole in plastic bag/oil & vacuum packaged *A$30 (whole bird 0.9 kg)

Cadence, Magnet Canard, Barbarie & Magre: France

Duck breast

0.18–0.2 kg portion

Vacuum packaged A$28–40 (Chilled Barbarie 0.1–0.20 kg)

Cadence, Magnet Canard, Barbarie & Magre: France

Thickness and size of breast is important. French cuisine especially requires breast portions.

Quail

0.14–0.4 kg whole 0.1–0.2 kg portion

2 whole birds per tray/plastic bag & carton A$5–6 (0.14–0.2 kg whole bird)

Bante : France Quail is also utilised as an open cut bird.

Pigeon


Whole tray package/plastic bag & carton A$20–54 (0.45–0.6 kg whole bird)

Cadence, Lacan: France

Turkey

2–4 kg whole 0.5–0.9 kg portion

Plastic bag & vacuum packaged, breast vacuum packaged. A$11–12 /kg (frozen)

Keyaki International: USA

Interest was expressed in sliced turkey meat.

Guinea fowl

0.9–3 kg whole 0.2–1 kg portion

Whole, vacuum packaged A$22/kg

Pheasant

1–1.2 kg whole 0.3 kg portion

Whole, tray & vacuum packaged

Northern Express Co. Ltd.: France

Goose 3–5 kg whole 1 kg portion


Partridge 0.2–0.7 kg whole 0.1 g portion


Source: Interviews with chefs in Japan 2002. ‘Portion’ can represent leg, breast, thigh or minced meat. *Exchange rate used was A$1= ¥65

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Smaller bird species are preferred whole. Further general product quality requirements are: no hair or drip, good fresh colour, and white (not yellow) fat. Thigh meat of duck, quail, pigeon and guinea fowl is also becoming more popular. Other general game bird product form requirements are mostly frozen product, bone in or out, skin on, head on or off, and portions, which are used widely. Duck will also be accepted in chilled form. Desired packaging is cardboard boxes with meat wrapped in antibacterial paper covering (appendix C). Table 6.3 summarises the product requirements of game bird importers in Japan. Note that product requirements and specifications may differ slightly from user to user. Table 6.4: Game bird product requirements in Japan for importers

Item Normal size/ weight (raw)

Packaging & pricing


Duck 1.2–5 kg whole 0.3–0.4 kg portion (French) 0.2 kg portion (other)

Whole in plastic bag/oil & vacuum packaged A$15–25/kg*

Cadence, Magnet Canard & Barbarie: France China

Strong red meat colour is desirable.

Duck breast

0.3–0.4 kg (France) 0.2–0.22 kg (Thailand)

Vacuum packaged A$15/kg (France) A$8/kg (Thailand) A$22/kg (Canard variety) A$28/kg (Barbarie variety)

‘Cadence, Magnet Canard, Barbarie & Magre: France

Strong red meat colour is desirable.

Quail


2 whole birds per tray/plastic bag & carton A$15–29/kg

Cadence, Vande & Donb: France

Pigeon 0.25–0.4 kg whole Whole tray package/plastic bag & carton A$8–11 (whole bird)

Cadence: France

Turkey

2–10 kg whole Plastic bag & vacuum packaged, breast vacuum packaged

France USA

Guinea fowl 0.7–3.5 kg whole 0.15 g leg

Whole, vacuum packaged

France

Pheasant

1–1.2 kg whole 0.5 kg portion


Scotland France

Item Normal size/

weight (raw) Packaging & pricing


Goose

3 kg whole Plastic bag & vacuum packaged

France

Partridge 0.2–0.4 kg whole Plastic bag & vacuum packaged

Scotland France

Source: Interviews with importers in Japan 2002. ‘Portion’ can represent leg, breast, thigh or minced meat. *Exchange rate used was A$1= ¥65 Other general game bird product form requirements are mostly frozen product, bone in or out, with skin on, head on or off, and portions, which are used widely. Duck will also be accepted in chilled form. Desired packaging is cardboard boxes with meat wrapped in antibacterial paper covering (appendix C).

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Market perception of Australian products Importers, chefs and hotel purchasing managers in Japan were asked to provide feedback on their perceptions of Australian game bird products. In general there was a lack of awareness of Australia as a game bird supplier to the Japanese market. Although a small number of importers and restaurants had previously sourced Australian product, interview results suggest that Australian game birds are too expensive when compared to the better known European product. The restricted number of importers (two) in Japan that are currently sourcing Australian game birds expressed satisfaction with the quality of quail, duck, pigeon and guinea fowl. Out of the 12 import companies interviewed only 2 were aware of specific Australian brands. These two companies were sourcing pigeon and quail from Game Farm. One importer commented that the Australian product they source is suitable for the Japanese market in terms of both price and quality, and they would like to continue to import these products. Most of the remaining companies interviewed expressed interest in sourcing Australian products in the future, particularly duck, quail, turkey and guinea fowl. There was no indication given of the expected quantities required. There was a general consensus from all groups interviewed that the price of Australian product is too high for the Japanese market. This price premium is seen as unjustified when the quality of Australian product is not superior to that of other sources. Other negative perceptions recorded were that Australian game bird products are not suited to the Japanese market because of the limited game bird consumption in Japan, and that there was a lack of information about Australia. The chefs and purchasing managers in Japan expressed similar perceptions to those recorded for importers. Generally there is a lack of information and consequently awareness of Australian game bird products. Although this can be attributed to the limited game bird consumption in Japan, Australia’s reputation needs to be further developed in this market to compete with European countries. Ten of the chefs interviewed would be interested in sourcing Australian game bird products such as quail, pigeon, duck, goose and turkey. Three restaurants were sourcing Australian game bird products at the time of interview. There was limited recognition of Australian brands, with only three end-users identifying the names Luv-A-Duck Pty Ltd and/or Game Farm Pty Ltd. Current suppliers Countries apart from Australia that supply game bird products to Japan are France, Hungary, UK, Scotland, Taiwan, Thailand, the USA and China. Table 6.5 below links the country of origin, well-known brands, and strengths of the supplying countries. In most cases, France was the most favoured country of origin for game bird products in Japan. Hungary also has a quality reputation as a European supplier in this market, and once more the USA is the main source of turkey. The lower-end segment of the Japanese game bird market relies on imports from Thailand and Taiwan, with China being restricted from supplying because of a disease outbreak. Although Australia is currently supplying game birds to Japan, acceptance of Australian product is limited by the lack of in-market recognition and perceptions of over-pricing. Few importers and end-users were identified as sourcing Australian product, with only a small number of companies claiming that they had used Australian game birds. The most popular game bird products from Australia are duck, quail and pigeon; and a limited number of in-market sources had heard of the Game Farm and Luv-A-Duck brands. Certain sources interviewed suggested that France is the most desirable country of origin (mainly European chefs), but product availability and price are not always consistent. Reasons for this included the national tradition of game bird production and hunting, the perception that French product is ‘wild’, and the national game bird accreditation schemes in place. There are two French quality assurance systems recognised in Japan: the Appellation d’Origine Contrôlée (AOC) and Label Rouge. The AOC standard is managed by the Institut National Appellation d’Origine (INAO), a branch of the Ministry of Agriculture of France. This system regulates agricultural production including wine, dairy and farm products; and it specifies the place of origin, including province, region and commune under French law. The AOC standard guarantees that a product of quality has been produced within a specified region, following established methods of production.

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Similarly to the AOC process, law also regulates Label Rouge but the place of origin is not an absolute condition. Label Rouge applies to fresh food products such as processed food, meat products both processed and raw, dairy products, vegetables and fruit, and guarantees product quality. The Ministry of Agriculture of France and a committee for the Label Rouge system regulate this standard. France is the key supplier of most game bird products to Japan including fresh whole ducks, fresh/frozen guinea fowl and goose, pigeon, turkey and quail. France is also favoured because it is the largest supplier of fresh products. Well-known French brands in Japan are ‘Cadence’, ’Magnet Canard’, and ‘Vande’. Breeth is a famous production area in France for pigeon. Birds from this region have a high reputation for quality, especially the pigeono (young pigeon) which can be seen in Appendix C. Hungary is another European country that supplies game birds to Japan. Although France is accepted as the top country of origin in this market, Hungary is also perceived as a quality supplier, because of the European game bird culture and the climate required for authentic ‘wild’ bird production. Hungary exports mainly goose and guinea fowl to Japan. Three major Asian countries compete to supply Japan’s lower-end game bird market. Until recently, China was its largest supplier of chilled and frozen products, but this situation changed following a disease outbreak in China. The Japanese government prohibited Chinese poultry imports in 2002, and China still does not have a good image as a game bird supplier in Japan. Local industry stated that they are not willing to buy Chinese game bird products at the moment. Thailand and Taiwan are major suppliers to the lower-end Japanese market also. This is primarily frozen duck products, which are more popular with the mass-market food-service outlets than with high-end restaurants. Another competing supplier is the USA, which is the predominant source of turkey in Japan. There is a negligible fresh market, and it is mainly frozen turkeys that are required. Table 6.5: Current suppliers to the Japanese game bird market

Major suppliers Well-known brands Strengths (as identified by interviewees)

Australia Luv-A-Duck (duck); Game Farm (quail & pigeon)

Growing profile as a quality supplier.

China Generic product (quail & duck) going into wet markets (no brands specified)

Supplier of cheap, low-quality, game bird products.

France Cadence (duck & pigeon); Magnet Canard (duck); Barbarie (duck); AOC (all birds); Label Rouge (all birds); LDC (duck, quail, pigeon); Vande (quail); Donb (quail); turkey, goose & guinea fowl (no brands specified)

Considered supplier of choice because of game-bird industry culture, perception that French product is ‘wild’, and industry certification systems (AOC & Label Rouge).

Hungary Goose & guinea fowl (no brands specified)

Favoured because it is a European supplier.

Taiwan/ Thailand Generic product (duck) going into wet markets (no brands specified)

Supplier of cheap, low quality, frozen products.

USA Turkey (no brands specified). Recognised as quality supplier of turkey products.

Note: The above table represents only countries that have been identified through interviews with chefs and importers and trade statistics. It is acknowledged that these countries may supply other game bird products and that other suppliers may be present within the market.

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Distribution channels The following diagram demonstrates the game bird distribution process in Japan. Figure 6.1: Game bird distribution in Japan Key Direct sales from producers to end-users Distribution of domestic production Distribution of imported products In Japan game birds are almost all distributed through specialised wholesalers. Distribution to end-users is either directly from original suppliers or through secondary wholesalers/vendors. The distribution system for game birds in Japan is quite simple because of the product’s short shelf life, as a result of its being mostly chilled. Larger importers and distributors handle most types of game birds, except for goose and partridge. ‘Game meat is a minor product for the large meat trading companies and general trading companies, so they never import it on their own. If an order comes in, they usually obtain it from the specialised wholesalers. Specialised wholesalers mainly supply the game meat purchased to secondary wholesalers specialised in supplying the restaurants and hotels. The department stores and superstores sometimes purchase the meat from the wholesalers as means for drawing customers, but the quantities involved are not large.’ (JETRO 2000) Distribution of game birds in this market almost always involves a wholesaler, for both domestic and imported products. It is standard for most meat products in Japan to be distributed through a number of wholesalers – sometimes as many as three, depending on the distribution channel. Only if specialised traders anticipate achieving enough sales to achieve a satisfactory profit will they import on their own. Usual alternatives for game bird requirements are smaller trading companies with specific knowledge, or another wholesaler. The consumption of game birds is quite limited, so it is seen as risky to import such products, in view of transport and storage costs (JETRO 2000) Sometimes Japanese importers do sell directly to end-users, by acting as wholesalers. End-users (even the very largest restaurants/ hotels) will not usually purchase game bird products directly from foreign suppliers; this is because Japan’s distribution infrastructure for chilled foods is limited and expensive. Also many wholesalers repackage large volumes of product into restaurant-size portions.

Imported product (All birds but mainly duck, geese,

guinea fowl & turkey)

Specialised importers

(wholesalers)

Up-market retailers

(all birds)

High-end hotels

(all birds)

Food service

(all birds)

Wholesalers (supplying low-end food

service/retailers)

Wet markets & lower-end

retailers (all birds)

Domestic production (quail, duck, pheasant, geese, guinea

fowl & turkey)

Fine-dining restaurants (all birds)

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According to in-market sources some business-to-business distribution exists in Japan, but its impact on the supply chain is unknown. It should be noted that, because of quarantine issues, ‘gibier’ from the United Kingdom, Germany, Belgium, Austria or Hungary are all exported to Japan from France. Therefore it is often difficult to know the exact origin of game bird imports. Market access The market access barriers to Australian game bird products in Japan are minimal. Imports of all game bird species produced in Australia are permissible with an inspection certificate issued by the Australian Quarantine Inspection Service. Importation of meat and processed meat products of the game bird species listed are subject to provisions of the Domestic Animal Infectious Diseases Control Law and the Food Sanitation Law. An inspection certificate issued by the competent government agency of the exporting country to the Animal Quarantine Service of Japan must accompany imports of meat and meat products. However, the Domestic Animal Infectious Diseases Control Law designates import-prohibited goods and areas, based on information on animal epidemiological situations from around the world. Import-prohibited areas are frequently changed, so would-be importers must check with the appropriate Animal Quarantine Station in Japan (JETRO 2000) Tables 6.6–6.8 indicate the import tariffs applicable to landed (cost & freight) invoice values. The WTO rate takes priority over the general rate, which is applicable where no World Trade Organisation (WTO) rate is indicated. Table 6.6: Import tariffs for ducks, geese and guinea fowl

Description HS No. General WTO Unit Not cut in pieces, fresh or chilled 0207.32 9.6% Not cut in pieces, fresh or chilled: 1. of ducks

0207.32100 10% kg

Not cut in pieces, fresh or chilled: 2. other

0207.32200 12.5% kg

Not cut in pieces, frozen 0207.33 9.6% Not cut in pieces, frozen: 1. of ducks 0207.33100 10% kg Not cut in pieces, frozen: 2. other 0207.33200 12.5% kg Other, fresh or chilled 0207.35 9.6% Other, fresh or chilled: 1. of ducks 0207.35100 10% kg Other, fresh or chilled: 2. other 0207.35200 12.5% kg Other, frozen: 2. Other 9.6% Other, frozen: 2. Other: (1) of ducks 0207.36210 10% kg Other, frozen: 2. Other: (2) other 0207.36220 12.5% kg

Source: Japan Tariff Association 2002.

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Table 6.7: Import tariffs for turkey

Description HS No. General WTO Unit Not cut in pieces, fresh or chilled 0207.24000 5% 3% kg Not cut in pieces, frozen 0207.25000 5% 3% kg Cuts and offal, fresh or chilled 0207.26000 5% 3% kg Cuts and offal, frozen 0207.27 3% Cuts and offal, frozen 2. Other 0207.27200 5% kg

Source: Japan Tariff Association 2002. Table 6.8: Import tariffs for quail, partridge, pigeon, pheasant (includes other bird species)

Description HS No. General WTO Unit Other meat and edible meat offal, fresh, chilled or frozen: other

0208.90000 Free Free kg

Source: Japan Tariff Association 2002. At the time of export, the product must be certified as free of Newcastle disease. The importing country, which sets the rules and regulations for import, has the final decision on whether a product will be approved and permitted entry. In the event of a disease outbreak individual countries set their own standards and may restrict imports at a national, state or regional level. In some cases where an outbreak has been declared during shipment, product will not be cleared for market entry and is the responsibility of the exporter. Exporters must be prepared for restricted market access as a result of these outbreaks and identify alternative markets to minimise loss. In most instances, companies want to test market responses through exporting product samples to interested parties. Because individual countries impose their own import standards, this evaluation stage usually occurs before there is any serious company investment in satisfying market requirements such as country listing. Acquiring acceptance for products in any market can be a very long process and the inability to export larger volumes for the purpose of providing samples can make it an extremely expensive undertaking. Australian exporters commonly emphasise how discouraging such restrictions on exports can be. This is a broad outline of market requirements only, and potential and existing exporters intending to access this market are strongly advised to contact AQIS to confirm Japan’s import requirements. It must also be observed that the import country sets standards, which can change.

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Summary of opportunities Table 6.9: Japan’s market opportunities for Australian game birds

Bird type Market demand Supply capabilities Competitiveness Duck Moderate Good Largest game bird

product imported, established product consumed by native Japanese. Australia is not seen as a traditional producer like EU countries or a low cost supplier like China, Taiwan and Thailand.

Goose Low Low Minimal Australian production with negligible demand in-market.

Guinea fowl Low Moderate Minimal market demand exists for the growing Australian production.

Pheasant Low Moderate Minimal market demand exists for the growing Australian production.

Partridge Low Low Minimal market demand exists with negligible Australian production.

Pigeon Low Good On the limited occasions when pigeon is consumed in Japan, Australia can potentially supply product but EU is the preference.

Quail Moderate Good Known product in market with little awareness of Australia as a supplier. French product has a higher profile.

Turkey Moderate Good Established product in market however USA recognised as a high quality supplier and a strong competitor.

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SWOT

SWOT ACTION PLAN MATRIX

OPPORTUNITIES - Market for Australian duck, pigeon and quail in Singapore. - Market for Australian duck, quail, pigeon, guinea fowl and

turkey in Hong Kong. - Market for Australian duck, quail and turkey in Japan. - Learn about industry development, marketing and

production techniques from international competitors (such as EU and US).

- Increase Australia’s game bird supply capabilities in line with identified export market opportunities.

- Improve industry collaboration in Australia to increase transfer of knowledge, and develop economies of scale in production, processing, marketing, transport and synergies in the cold chain.

- Explore regional zoning in Australia to manage exotic disease outbreaks.

THREATS - Continual outbreaks of exotic disease within

Australia impair producers’ and exporters’ ability to supply products to international markets consistently.

- There are strong international competitors with established game bird industries (e.g. France, USA).

- World events such as SARS have repercussions on Australian game bird exports.

- Increasing cost of importing new breeding stock limits the industry’s ability/ willingness to produce better- performing birds in lesser-grown species over long term.

- Asian game bird producers are increasingly competitive in targeted export market segments.

- The widely held preference for European products reduces distributors’/users’ willingness to try Australian products.

- Rapidity at which importing countries can change their importation protocols.

STRENGTHS - Australian game bird products are positively

recognised by a small number of overseas users and importers (Hong Kong and Singapore) who have used these products and consider them appropriate for premium foodservice segments

- Strong perception in researched markets that Australian game birds are able to compete against most premium imported products in high-end segment, if similar pricing and quality can be maintained

- In international terms, Australia’s history of avian related exotic disease outbreaks is low

- Australia’s natural isolation means that repercussions of disease outbreaks are limited geographically

Use strengths to take advantage of opportunities - Link with other Australian products that have been

successfully marketed in target countries to undertake strong profiling of Australia as a supplier of a range of game bird products. For example in regional food tradeshows such as HOFEX in Hong Kong and Food and Hotel Asia in Singapore

- Develop relationships with importers/end users in Hong Kong, Singapore and Japan to create supply opportunities for duck, quail, guinea fowl, turkey and pigeon

- Work with willing in-market suppliers and users to undertake promotional activities, increase consumer awareness, and differentiate attributes of Australian game bird products (eg farmed)

- Position Australian game birds as meeting high food safety standards, underpinned by superior quality assurance

Use strengths but do differently - Develop an understanding of competitor’s (Europe

and USA) farming and marketing systems to enable identification and better understanding of competitive advantages, cost structures including logistics, and perceived product differences among in-market users

- Target non-European trained chefs as potential users of farmed Australian game birds to overcome common perceptions and comparison of farmed versus traditional wild products

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- Stringent processing and QA regulations have earned Australia international recognition

- Australia’s proximity to Asia means higher competitiveness on freight costs

- Australian industry is comparatively small in relation to large volume overseas suppliers which enables flexibility to respond timely to market needs

systems to reduce impacts of disease outbreaks - Promote Australia as a quality alternative supplier in Hong

Kong (mainly supplied by China). Make clear to importers the need to diversify their supply base to ensure availability and overcome disease outbreaks.

WEAKNESSES - Australian producers/exporters are presently

willing to commit only 10–15% of their total production to export markets, owing to unpredictable outbreaks of exotic disease and potential effects on cash flow.

- Present Australian supply capabilities are comparatively small, restricting our ability to capture immediate large-volume export opportunities compared with bigger overseas competitors such as USA and France.

- Factors such as the high cost of export-accredited facilities are a disincentive to potential exporters, so the Australian game bird industry is primarily domestic focused.

- In comparison to the larger Australian primary industries (in volume and value), the game bird industry is relatively unknown to government and consequently overlooked in export policy development.

- Except for the major game bird users in high-end food-service markets in Hong Kong and Singapore, there is limited overseas awareness of Australia as a producer of game birds.

Take advantage of opportunity by overcoming weakness: - Develop overseas joint ventures to minimise and counteract

the impact of an exotic disease outbreak within Australia. - Promote industry development through information sharing

and collaboration to increase export capabilities. - Explore possibilities of forming alliances to maximise

economies of scale, knowledge and market power, for example by consolidating shipments (fresh/frozen) and thus minimising freight costs.

- Develop further opportunities to supply the Japanese market, based on their preference for farmed game birds.

Minimise weaknesses and avoid threats: - Promote vaccination programs to minimise exotic

disease impacts in target markets. - Explore methods to build supply capabilities through

industry collaboration (domestically and overseas). - Work with larger industries (poultry) to make

relevant government agencies aware of the impact of disease and export costs (particularly commercial size, value and growth) as well as outlining the importance of export market vulnerability from disease outbreaks.

- Conduct further research to identify specific requirements for products in export markets (breeds, farmed/wild, feeds).

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Future directions The major issues that impact on Australia’s game bird industry have been highlighted in the SWOT analysis above. This research has identified four key areas in relation to future development within this industry. Export development activities Australia is not widely acknowledged within the countries investigated as a supplier of game bird products. A key reason identified was a lack of aggressive promotion on behalf of Australian exporters to profile the capabilities of the industry. Participating in regional food trade shows, as well as working with in-market users to promote Australian game bird products, was frequently suggested through interviews as a way of overcoming this passive marketing approach. For instance by targeting non-European chefs, combining with other Australian products (e.g. wine) for marketing purposes, and holding cooking promotions during peak times such as Christmas, awareness of Australian game birds can be improved. Trade shows not only present the platform to profile industry capabilities but also enable Australian exporters to network with key international and local food-service market representatives (i.e. importers, distributors, chefs, catering providers). In April 2002, representatives from Australian industry and the Queensland Department of Primary Industries participated in the trade show ‘Food and Hotel Asia’ in Singapore. The Australian Game Bird trade booth gave these representatives the opportunity to display and discuss the attributes of commercially available products and convey industry capabilities, as well as gauge acceptance levels, and acquire an understanding of preferences and opportunities within each market sector. Competitor assessment This research has highlighted the need to understand the capabilities of our competitors, such as Europe and the USA, within the researched target markets. This is necessary if industry is to understand and identify market strategies with a view to building competitive advantage. This is also important to confirm in-market feedback, which suggests that there are clear differences between farmed Australian and traditional European products. Study tours to these competitor countries are recommended. Ideally, such industry visits would focus on game bird production, traditional farming practices and marketing and exporting systems. Industry network development Project findings have identified a real need for vertical integration within the Australian game bird industry. Collaboration promotes increased consistency of supply, information sharing (production, marketing, exporting knowledge) and access to common export facilities. More importantly, it demonstrates to government agencies a commitment to long-term industry development. Forums such as annual industry conferences present ideal opportunities for industry to engage in networking and information-sharing activities. Presentations from international representatives further increase information transfer to industry, particularly to members unable to undertake visits overseas. It also presents a platform for industry members to identify strategies and develop ownership of future research activities and outcomes. A strong presence will be beneficial in developing a close relationship with government representatives, and can influence industry stance in future policy making. Exotic disease outbreak management Explore the applicability of establishing permanent zoning (states) and regionalisation within a State as an effective way to manage exotic disease outbreaks with minimum disruption to the export of poultry or game bird products. Industry feedback also suggests that a compulsory vaccination program for Newcastle Disease should be further explored to reduce the occurrence of an outbreak.

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References Agriculture and Agri-food Canada 2001, Food Service Industry Report Singapore, January, viewed 27/05/02 [online] <http://sea.agr.ca/info/asia/asean/e3131.htm>. Agriculture, Fisheries and Conservation Department (AFCD) 2002, Agricultural Production Statistics, Hong Kong Special Administrative Region, Austrade, November. Anderson, J. 2002 – 2003, (Australian Quarantine Inspection Service), personal communication. Australian Quarantine Inspection Service (AQIS) 1983, Meat Inspection Act, Department of Agriculture, Fisheries and Forestry, Australia. Australian Bureau of Agriculture Resource Economics (ABARE) 2003, Pig and poultry outlook, viewed 6/03/02 [online], <http://www.abareeconomics.com/industriesmarkets/forecasts/sepcommods/pig.htm>. Australian Bureau of Statistics (ABS) 2002, Livestock products Australia, edition number 72150.0, June. Australian Standard for the Construction of Premises and Hygiene 2001, Production of poultry meat for human consumption, 2nd edition, AS4465: 2001, SCARM report no. 75. Australasian Poultry Association 2001–03, Australasian Poultry, Poultry Information Publishers, bi-monthly publication. Bennett, P. 2001, (Secretary of the Australian Squab Producers Association), personal communication. Bewg, S. 2002, Manager - Emergency Response, Animal and Plant Health Services, Queensland Department of Primary Industries. Chuo Chikusan Association (Central Livestock Association) 2001, Japanese game bird production figures, Austrade, February. Food and Agriculture Organisation of the United Nations (FAO) 2000, Agricultural Database, viewed 03/02/03 [online], <http://apps.fao.org/page/collections>. Hong Kong Census and Statistics Department (HKCSD) 2002, Agricultural import statistics, Austrade, November. Japan Ministry of Finance 2002, Agricultural trade data, game bird imports, Austrade, February. Japan External Trade Organisation (JETRO) 2000, Market Survey of Products for Export to Japan – Game Meat. Japan Tariff Association 2002, Tariffs on game bird imports, Austrade, February. Lin, W. 2002, Market for Australian game birds – Hong Kong, Austrade, November. Myers, J. 2003, Australian game birds – analysis of market and opportunities in Japan, Austrade, Tokyo, February. Nunn, M. 2002, (Australian Food and Fibre Agency), personal communication. Office International des Epizooties (OIE) 2002, viewed 29/11/02 [online], <http://www.oie.int>. Prestwood, C. 2001, (Secretary of the Australasian Turkey Federation), personal communication. Queensland Poultry Research and Development Centre 2002, Poultry scientific classifications, QDPI, Cleveland. QDPI National Capability Survey 2002, Industry committee, RIRDC game bird project. Runge, G. 1990, Game birds – raising a feast, Proceedings Australian Veterinary Association (Queensland Branch) Conference, Toowoomba. Runge, G. (2002), (QDPI Intensive Livestock – Poultry), personal communication. Singapore Trade Development Board (Statlink) 2002, Agricultural trade statistics, Austrade, November. Yim, E. 2002, Game birds market: Singapore, Austrade, November 6.

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9 Appendix A National response to exotic disease outbreaks Australian preparedness to handle exotic disease is managed under the Australian Veterinary Emergency Plan ‘Ausvetplan’, coordinated by the Commonwealth Government within the Department of Agriculture, Fisheries and Forestry Australia (AFFA). AFFA liaises on trade and disease issues with the world organisation for animal health (Office International des Epizooties or OIE) concerning international disease protocol. Australia’s initial response, when an exotic disease is suspected, is to define the boundaries of the infected property and place it under quarantine. Samples of contaminated material are sent for identification of the causal organism; if the results are positive a series of zones designed to restrict or control movement of potentially infected livestock or product are established around the infected property. The size of each zone depends on the type of disease and environmental conditions. Initially these zones are made as large as necessary to confine the disease. Surveillance and trace-back of potential movement of the causal organism before the property was quarantined is undertaken to determine the extent of the outbreak. Zones are then redefined to ensure that the disease is and can be contained within these areas. Figure A1 Response Structure to Emergency Pest and Disease Outbreak Source: Bewg S 2002 SDCHQ is responsible for Strategic Management and for operational management outside the Restricted Areas. LDCC is responsible for control of all operational activity within the Restricted Area. During this initial period, there is a total prohibition on movement of animals and animal products within the defined zones. If the outbreak is considered serious enough, the zones could embrace a whole state. The initial period length depends upon the disease, status and potential national impact. In the recent Newcastle disease outbreaks it was at least 6 weeks. Due to the fact that the game bird industry currently has two exporters of product, one in New South Wales and one in Victoria, the recent outbreaks of Newcastle disease in these states have virtually crippled Australia’s game bird export potential, costing loss of markets and millions of dollars’ worth of product. Once a more precise picture of the level and spread of infection is understood, the control area can be reduced and protocols for movement of stock and product modified. If an exporter is located outside the control area they are again permitted to move product as well as export (providing importing countries will accept product) but cannot source product from within

Local Disease Control Centre (LDCC)

Forward Command Post

Infected premises

State Disease Control Headquarters (SDCHQ)

RESTRICTED AREA

CONTROL AREA

Infected premises

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the control area. Game bird processors may source their live birds from a number of producers and, even though a processor may be outside the control area, contract growers may be inside, effectively cutting off supply. For companies located within the restricted and control areas, if no further cases are detected for a period of 6 months after the infected properties have been slaughtered out, they will be allowed to commence normal activity. This is accepted by the OIE for both avian influenza and Newcastle disease. Australia is then again declared to be free of these diseases. The Australian Quarantine and Inspection Service regularly reports progress status on the disease outbreak through the OIE, which allows importing countries to respond to changes regarding their market access requirements. AQIS regularly reports each country’s conditions of entry. These are then forwarded to industry groups and government veterinary organisations. However, the game bird industry has no national association or representation at a state or federal level. This means there is no readily available means for notifying game bird producers and processors about changed conditions. This applies also to notifying the industry about exotic disease outbreaks. Vaccination The OIE recognises two levels of exotic disease freedom: ‘country free of disease without the use of vaccination’, and ‘country free of disease with the use of vaccination’. ‘Country free of disease without the use of vaccination’ has been Australia’s status to date during its periods of freedom from exotic disease. Some countries such as the EU do not and will not accept product from a country with a disease free status with vaccination. Most Asian and Pacific island countries will accept product from countries with a status of free of disease with vaccination. To maintain its disease-free status, to reduce the risk of further outbreaks and the high cost of eradication incurred with each outbreak, Australia is developing a strategy to declare freedom from Newcastle disease with vaccination. The Australian poultry industry considers that the high cost of vaccinating outweighs the cost of further outbreaks and eradication and will provide a continuity of production. Vaccination of all poultry in the Sydney basin area has been made compulsory. The meat chicken industry is voluntarily vaccinating all breeder stocks outside their area. Most large-egg farmers have adopted a policy of vaccinating all stock. Australian and state governments are considering whether vaccination for Newcastle disease should be made compulsory throughout Australia. It is possible that states such as Western Australia and South Australia, at low risk to a possible Newcastle disease outbreak may adopt a voluntary vaccination policy that will include a program to monitor the ND status of flocks in these states. The change of status to disease-free with vaccination will have little impact on the export of game birds as the potential export market is seen as Asia. International response to Australian exports The Office International Des Epizooties (OIE) is the inter-governmental world organisation which currently has 162 member countries agreeing to report within 24 hours confirmed cases of any animal diseases listed under Part A and B of the International Animal Health Code. This office makes member countries aware of disease outbreaks so each country can take the appropriate action in order to maintain sanitary international trade in animals and animal products. With the confirmed outbreak of an exotic disease, Australia at both regional and state level is prohibited from exporting poultry. Australia exports a significant amount of poultry products even though Australia’s poultry industry in general is not interested in exporting their products. Some sections of the industry export meat chicken products, table and hatching eggs, egg pulp and day-old chickens. The length of the exporting ban depends on what the disease is and the size of control areas implemented by Australia’s Consultative Committee on Emergency Animal Diseases (CCEAD) in order to control the outbreak. Most

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importing countries initially ban all products from Australia and adopt a ‘wait and see’ policy. This has an immediate impact on Australia’s capabilities to maintain successful trade relationships. Importers lose confidence and seek product elsewhere, leaving export-quality product to be rechannelled on to the already satisfied domestic market. Regionalisation Exporting animals and animal products involves a disease risk to importing countries. It is imperative that all countries involved with international trade understand their responsibility and the regulations of the International Animal Health Code referenced by the OIE. The objective of this code is to prevent the spread of animal diseases, while facilitating international trade in animal and animal products and taking into account the varying range of conditions applicable to both importing and exporting countries. Zoning and regionalisation Zoning is the procedure implemented by a country under the International Animal Health Code, which defines geographical areas of different animal health status. Individual countries’ requirements will differ, and size, location and delineation will depend upon the particular disease. The extent of the zones and their limits in Australia are established by CCEAD and are developed on a disease stamp-out procedure based on natural, artificial or legal boundaries and made public through official channels. Once Australia has defined a zone and implemented measures under the code for setting up and maintaining that zone, the importing countries can make a choice, based upon their risk assessment of the exporting countries’ veterinary services, zoning, regionalisation and surveillance systems, whether to continue to trade or to adopt a higher level of protection. A problem faced by Australia is that Europe has made strong demands for controls such as inspection and policing of zones. This approach carries a high cost and would require more resources. It is cheaper and easier for Australia to implement these controls at state borders than at zones. Australia’s argument is that our state borders and zone boundaries are already closely monitored and are just as strong as, if not stronger than, in Europe given that most Australian states are larger than most European countries. If an exotic disease outbreak occurred in Europe, (France for example), then OIE protocols would ban France from exporting; however surrounding countries like Spain, Germany and Italy, which may be only a few kilometres away from the outbreak, would still be permitted to export. Unlike Europe and Asia, Australia as a large island nation has benefits from freedom from many animal diseases due to its natural isolation. It has provided us with an advantage for exporting our agricultural products. Tasmania and Western Australia are also isolated by expanses of water and deserts, and considered natural zones different from the rest of Australia. Regionalisation is the most effective mechanism available to isolate infected areas and control the spread of disease, while still allowing a continuation of international trade for regions outside the control area. The Department of Agriculture, Fisheries and Forestry Australia is presently working on presenting Australia’s case for regionalisation/ zoning to our major overseas trading partners, the United States, New Zealand and Canada (known as the Food Safety Quadrilateral or QUADS group). Should the case of regionalisation be approved, these countries will make a combined international approach to the OIE hoping to gain recognition of zoning based on geography and compartmentalisation (that is, separation in terms of the flow of products, transport and feed). The game bird industries lend themselves to regionalisation due to their small size and geographic isolation between farms, in most cases being spread over a number of states.

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10 Appendix B Retail displays in City‘super supermarket, Hong Kong (Source: Lin W 2002)

French game bird products in Hong Kong supermarkets

French Barbarie chilled duck, HK$17.00 per 100 grams (City’super)

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French chilled quail, HK$22.00 per 100 grams (City’super)

French chilled (Delpeyrat & Rougié brands) duck breast, vacuum packaged (City’super)

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11 Appendix C Japanese game bird products (Source: Myers J, 2003)

French Canette Barbarie duck

French whole pigeon wrapped on tray

Canard duck breast fillet, vacuum packaged

Opportunities for exporting game birds - Agrifutures Australia€¦ · market opportunities for eight farmed game bird species – quail, duck, turkey, goose, pheasant, partridge,

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