Australian kangaroo exporters look to hop into meat-hungry China

Australian kangaroo exporters look to hop into meat-hungry China

2:28am EST

By Colin Packham

SYDNEY (Reuters) – Once considered pet food, kangaroo meat could soon be sold to China as a luxury product, to encourage Chinese consumers to do something few Australians will – eat it. With a booming middle class, China’s appetite for meat is expected to rise nearly 17 percent over the next eight years, the World Trade Organization says.Exporters do not yet have permission to sell kangaroo meat to China but recent comments by Australian officials have put the industry in a bullish mood.

“This is something that ticks a whole range of boxes,” Agriculture Minister Barnaby Joyce told the Australian Broadcasting Corp.

“I’m going to try and look at further discussions with the Chinese because I think there is a big prospect for a market there.”

Wang Jun, the owner of a small restaurant in Beijing, said he would be keen to try kangaroo.

“Why not? As long as it is delicious,” Wang said.

Beef, pork and chicken are staples in China but some diners also tuck into cat, rat, dog and more exotic animals in the belief that they have medicinal qualities. Still, not everyone may be so adventurous when it comes to kangaroo.

“How could we lay our chopsticks on such cute animals?” said Liu Xinxin, a 21-year-old university student from Beijing.

Liu’s comments echo sentiments in Australia that have kept the kangaroo meat industry in a state of suspended development.

A 2008 government survey showed nearly a fifth of Australians would never eat kangaroo on ethical grounds.

Others are reluctant to consume an animal that figures in the national coat of arms. Just 15.5 percent of people eat kangaroo meat more than four times a year.

Australia is already a large supplier of red meat to China, with shipments worth A$616 million ($577 million) in the 2012/13 season. The kangaroo industry hopes to jump into the action.

“It would be huge if we could get access to the Chinese market and they are certainty very interested,” said Ray Borda, founder and managing director of Macro Meats, Australia’s largest processor of kangaroo and wild game meat.

CHANGING THE IMAGE

Kangaroos, protected by state and federal law, are caught in the wild, not farmed. Licensed hunters make a cull of a fixed number and specific types every year.

Some of the impetus for exports follows a boom in the population of the animals after good rains last year. Drought this season in the largest cattle-producing state of Queensland has prompted farmers to demand a bigger cull as kangaroos compete with cows for grazing space.

Australian supermarkets sell kangaroo fillets for about A$20 per kg ($8.54 per pound), or about 30 percent to 50 percent less than beef. The kangaroo industry aims for a different story in China, by promoting it as an exclusive item, touting its health benefits as a high-protein, low-fat food.

Australia’s Department of Agriculture did not reply to queries from Reuters about the status of export talks with China but the interest on both sides is clear.

John McVeigh, Queensland’s agriculture minister, has just returned from China, where he talked to importers keen to start trade in kangaroo meat.

Borda and his company are readying for an opening.

Macro Meats has partnered with New Hope Group Ltd, one of China’s largest agribusiness operators, and the two firms have developed a strategy to woo customers and project exclusivity by limiting supply.

“Our strategy will see us place kangaroo only in high-end butchers, not in supermarkets,” Borda said. “If the market was to open tomorrow, we would enter without much fanfare.”

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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