New animal industries find their niche

Rural IndustriesResearch & Development Corporation

20 July 1999
Australia’s new and emerging animal industries, worth more than $160 million a year, have an unenviable reputation for startling peaks and equally depressing troughs.

But a new report from the Rural Industries Research and Development Corporation (RIRDC) which puts the microscope over 19 of these industries, is expected to help smooth the development cycle.

Undertaken by economic consultants David McKinna et al Pty Ltd, the research draws together known background information and develops a SWOT analysis for all the industries from kangaroo to mutton birds and even flying foxes.

A more detailed analysis is then undertaken for ostrich, kangaroo and dairy goats to demonstrate the strategic principles for meat, hide, fibre, milk and by-products.

Combined, the information has allowed a critical factors checklist, which affect the performance of new animal enterprises, to be developed. The report concluded 12 of the industries had good to moderate potential to develop whilst seven had limited potential.

According to RIRDC program manager Peter McInnes the program of research to investigate the development and market potential of industries is essential for continued growth. Dr McInnes said over the past 10 years RIRDC had undertaken a series of projects to understand and promote the development of these new industries.

“This report draws together a large amount of information and then considers the potential for domestic and export markets for each of the 19 industries,” Dr McInnes said.

“For an industry like emu which has undertaken a stage of rapid growth it is important to identify constraints and then introduce research strategies to overcome them.

“Smaller industries like camel and buffalo, which have the potential to grow solidly in the next 10 years have other factors, both positive and negative, which are being identified and developed along with the industry.

“The information, including a list of 12 critical success factors which are common to all emerging industries, will be used to assist future R&D and general industry strategies.” Report author David McKinna says the critical factors and success strategies identified in the report, demonstrate that the behavior of new enterprises follow a very predictable pattern. “Unfortunately, despite the highly predictable nature of these issues and problems, the same mistakes are repeated over and over,” Dr McKinna said.

“The information in this report gives some indication of the challenges to new enterprises and the processes which should be undertaken to achieve a viable industry.”

Marketing of New Animal Products, is available from RIRDC for $15 by calling (02) 6272 4819 or visiting the RIRDC website - www.rirdc.gov.au

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