PROJECT SUMMARY Camel Milk Market Assessment 2016 - AgriFutures Australia

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PROJECT SUMMARY Camel Milk Market Assessment 2016 - AgriFutures Australia
PROJECT SUMMARY

Camel Milk Market Assessment 2016
Snapshot
    •   The camel milk industry is a new rural industry
        set for rapid change over the next 5 years. In
        that time camel milk production will shift from
        a small-scale ‘cottage’ industry into much larger
        scale production.

    •   The price small scale producers are able to
        command for their high cost product may
        come under pressure.

    •   Critical areas for attention include improved
        animal husbandry, camel nutrition, optimising
        milk yield, product safety including market
        driven pasteurisation standards and market
        access.

Overview
The two species of camel are the dromedary or Arabian camel (Camelus dromedarius) with a single hump and the Bactrian
camel (Camelus bactrianus) with two humps. Australia has access to a wild population of dromedary camels from which a
small managed population has been drawn. Camels are a desert animal that will adapt to a wide range of climatic conditions.
They are difficult to manage in cool and wet environments.

Worldwide commercial camel uses include racing, tourism, recreational/showing purposes and beasts of burden. There is a
world trade in live camels of between 200,000 and 300,000 head per annum (Clarke 2014). By volume and value, meat is the
most important product sourced from camels. Other camel products include leather, wool and milk (Lethbridge and Clarke
2016).

Camel milk has been consumed by humans for more than 6,000 years and certainly longer than cow milk. Taste and
appearance are similar to cows’ milk. Camel milk is saltier than cows’ milk and quality is at least partially defined by grazing
conditions. Camel grazing will provide assistance with woody weed control on cattle grazing enterprises. However, if quality
milk is to be produced they require access to high graze (trees and shrubs), pasture and hay of appropriate quality. Hay should
constitute 75% of the milking camel’s ration. A managed diet will produce milk with a creamy consistency acceptable to the
Australian palette (Lauren Brisbane, QCamel, pers. com May 2016).

The camel milk industry’s peak body is the Australian Camel Industry Association (www.australiancamelindustry.com.au).

                                                                           RURAL INDUSTRIES R&D CORPORATION project summary    1
PROJECT SUMMARY Camel Milk Market Assessment 2016 - AgriFutures Australia
Product Volume and Value
World camel milk production is dominated by countries in North and East Africa, the Middle East and parts of Asia –
Table 1.

Table 1 Whole Fresh Camel Milk: World Production, Annual Average 2003 – 2013 (tonnes)

   Country                       Production Volume             The United Nations Food and Agriculture Organisation
     Somalia                                914,957            (FAO) does not yet record production of fresh camel milk
                                                               in Australia or the US nor trade flows in whole fresh camel
     Kenya                                  464,159
                                                               milk. Traditional producers of camel milk produce and
     Mali                                   131,928            consume the product locally. Production is generally a low-
     Ethiopia                               118,437            tech business and there is limited world trade in camel milk
     Saudi Arabia                            92,252            (FAO 2006).
     Niger                                   89,526
                                                               Camel milk is a rapidly growing industry in the US. Product
     United Arab Emirates                    39,248            is sourced by both cultural consumers – US residents from
     Eritrea                                 22,000            traditional camel milk consuming countries and consumers
     China                                   15,000            attracted to the products health qualities. Production of
     Algeria                                 11,700            camel milk in the US is hamstrung by a small naturalised
     Djibouti                                 6,800            domestic camel population, limited opportunities to import
     Qatar                                    4,500            camels from countries with low levels of endemic disease and
                                                               the high cost of importing disease free camels from places
     Morocco                                  4,480
                                                               like Australia – around $25,000/head.
     Mongolia                                 3,700
     Libya                                    2,145
     Iraq                                       200
     Uzbekistan                                 191
     Russian Federation                          27
     Other                                  133,668
                    Total                 2,054,918
  Source: FAOSTAT http://faostat3.fao.org/browse/Q/QL/E

                                                                        RURAL INDUSTRIES R&D CORPORATION project summary      2
PROJECT SUMMARY Camel Milk Market Assessment 2016 - AgriFutures Australia
Calamunnda Camels, Kalamunda Western Australia was the first Australian camel milk producer. QCamel, Glasshouse
Mountains Queensland has been licenced to sell fresh camel milk to the public since 2006 and pasteurised milk since 2014.
Camel dairies are now established in NSW, Victoria and South Australia- Table 2.

Table 2 Camel Milk: Estimated Australian Production 2016

 State and                            Production Assumptions (based on publicly                                Annual Milk
 Known Camel Dairies                  available data)                                                       Production 2016
   Western Australia
                                      Calamunnda has 5 to 10 milkers                                             6,000 l/year
        - Calamunnda Camels
   Queensland
        - QCamel                      QCamel has a herd of 60 camels with 20 milkers                            15,000 l/year
        - Camel Milk Australia        CMA no longer produces fresh camel milk
   NSW                                Muswellbrook has 11 camels, 5-6 milkers that were
                                      anticipated to produce 10 litres/day in 2015                                3,500 l/year
        - Muswellbrook
   Victoria                           CMV is approximately the same size as
                                      QCamel i.e. 60 head                                                       15,000 l/year
        - Camel Milk Victoria
   South Australia
                                                                                                                  3,500 l/year
        - Humpalicious                In 2015 Humpalicious has 6 milkers
                                                                        Unknown production                       7,000 l/year
                                                                     Australian Production                     50,000 l/year
  Source: Project analysis

Camel milk production in Australia in 2016 was estimated at 50,000 litres per annum. Wholesale price is presently between
$16/litre and $21/litre. If an average farm gate price of $16/litre is assumed, industry gross value can be estimated at $800,000.

Supply and demand balance is presently tipped in favour of the producer; camel milk dairies report a four week waiting period
before new customers can be supplied (Chris and Megan Williams, Camel Milk Victoria www.camelmilkvictoria.com.au).

The five years to 2021 are expected to see a major increase in Australian camel milk production. Existing players have
expansion plans and two new large scale operations are in advanced planning; one in Western Australia - Australian Camel
Dairies currently located in the Perth Hills and one in South East Queensland - Wild Camel Corporation located between
Harrisville and Boonah.

Australian Camel Dairies in the Perth Hills proposes an expansion from four to 300 milkers (Lucy Martin, ABC News, 12
August 2014 http://www.abc.net.au/news/2014-02-28/camel-feature-wa/5291792).

The proposed South East Queensland operation relocated from Port Broughton South Australia in 2015, is already milking
twelve camels on a trial basis in a new herringbone dairy and using the milk to produce soap and cosmetics. Once approvals
have been secured it will shift production to fresh milk for human consumption (Elizabeth Anderson, Queensland Country
Life, 17 January 2016 http://www.queenslandcountrylife.com.au/story/3656631/unique-industry-makes-big-steps-in-new-
location/?src=rss#). Wild Camel Corporation has plans for a dairy of between 120 and 130 camels and an annual production
of 100,000 litres.

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Domestic and Export Markets                                        Description of Supply Chains
Domestic                                                           The camel milk supply chain is relatively short but increasing
At the present time most Australian camel milk is sold on          in sophistication
the domestic market and biosecurity concerns prevent the
import of fresh product. The domestic market can be divided        Producers
between consumers with a cultural preference for camel             Camel milk producers are small enterprises where the average
milk including Australians of Somali and Middle Eastern            2016 herd is between 6 and 60 animals, one third of the
origin and Australians with a focus on camel milk’s health         herd may be milking at any one time. Large scale enterprise
properties.                                                        are currently being planned with herd sizes in excess of 100
                                                                   animals.
Health properties attributed to camel’s milk include capacity
to alleviate food and seasonal allergies, usefulness in reducing   Product is sold in both pasteurised and unpasteurised form.
insulin dependency and the treatment of diabetes, ease of          Pasteurised product may be vacuum packed and frozen for
digestion and assistance with gut allergies associated with        wider retail distribution. To date camel milk has proved
the autism spectrum, Crohn’s Disease, ADD and ADHD.                to be incompatible with UHT (Ultra High Temperature)
Camel milk is richer than cows’ milk in vitamin C, vitamin         treatment (FAO 2006). Some consumers believe there are
B, iron, calcium, magnesium and potassium. Fat is generally        additional health benefits in unpasteurised camel milk and
polyunsaturated with a high ratio of beneficial omega              product sold in this form must be clearly labelled ‘not fit for
3 to omega 6 (FAO http://www.fao.org/newsroom/EN/                  human consumption’. Industry reports that pasteurisation
news/2006/1000275/index.html).                                     can be accomplished at differing temperatures and durations
                                                                   of heat exposure, differing combinations of temperature and
Export                                                             exposure affect the quality of the camel milk and this is a
Australian camel milk dairies presently supply personal            priority for industry research.
orders for fresh camel milk for customers in New Zealand
and Singapore. Individual dairies are currently exploring          Manufacturers
the US market for fresh milk along with the potential of           Customers seeking fresh liquid camel’s milk often look to
supplying powdered camel’s milk to the US for manufacture          substitute camel milk based products in all their dairy needs.
of infant formula. Consumers in the Middle East, India,            Consequently there is a ready Australian market for flavoured
US and Europe have all shown interest in increasing camel          milk, yogurt, cheese, ice cream and camel milk based
milk consumption (Phil Gee, Vice President Australian              chocolate. Skill is required in working camel milk into these
Camel Industry Association, www.stockjournal.com.au/               products and a small number of manufacturers are working
story/3367478/camel-milk-potential-for-sa). The United             with camel milk producers. Camels’ milk requires specific
Kingdom is also a potential market for high quality                enzymes and skill to harden it into cheese (FAO 2006).
Australian camel milk (Lauren Brisbane, QCamel, pers. com          Distributors and Retailers
July 2016).                                                        Fresh whole camel milk and manufactured product is
                                                                   distributed and retailed by specialists in either the health
                                                                   food sector or those serving cultural consumers. Stores
                                                                   servicing the health food sector have a high requirement
                                                                   for organic product. Stores servicing cultural consumers
                                                                   will often retail a range of Middle East and North
                                                                   African produce including camel meat. There are camel
                                                                   milk distributers and retailers in all Australian states and
                                                                   territories except Tasmania and Western Australia. Western
                                                                   Australian consumers may be supplied directly by that state’s
                                                                   camel dairies.

                                                                   Simple analysis of known camel milk distributors and
                                                                   retailers by number of operations would indicate dominance
                                                                   of the health food sector.

                                                                            RURAL INDUSTRIES R&D CORPORATION project summary     4
Promotion and Market Development                                 Powdered camel milk could form the basis of infant formula
                                                                 targeting children with gut health issues. Australian camel
In the Australian market work is required to reposition          milk dairies are considering the local manufacture of camel
camel milk as a health product. There is a current perception    milk powder and infant formula. The products would find
amongst some potential consumers that camel equates to           a ready market with capacity to pay in the US, Europe and
feral and dirty. The popularity of the product in the US         parts of the Middle East.
combined with existing research showing camel milk’s
positive role in reducing the incidence and impact of major      The US Camel Milk Association promotes camel milk based
diseases provides a strong foundation for repositioning.         kefir - a probiotic and an additional product that could
Additional work is now proposed to provide a scientific          be added to the Australian product range (http://www.
evidence base to confirm camel milks’ benefits in relieving      camelmilkassociation.org/).
the symptoms of autism. New large scale camel dairies will
need to invest to develop export supply chains for both fresh    Alignment with trends
milk and processed powder as their production comes on           Consumption of camels’ milk aligns with a major trend
line.                                                            in diet based solutions to complex health issues especially
                                                                 those afflicting children. While more research is needed,
Coproduct Potential                                              camel milk consumption has been linked to improved health
In addition to fresh milk, a camel milk dairy may also           outcomes for conditions spanning food and seasonal allergies
yield surplus male animals and cast-for-age females. While       through to ADHD and autism. Products aligned to this
some cameleers may choose not to sell cast-for-age females       type of health trend will see rapid growth in short term as
pointing to their ongoing role in the matriarchal herd, a        consumers become aware of the product but a longer term
market does exist for camel meat, leather and oil. Wild          plateau unless support is secured through scientific research
caught camels are currently processed in a single abattoir in    and health professionals. Products aligned to this trend will
Peterborough South Australia (Lethbridge and Clarke 2016).       find a ready market in wealthy western countries such as the
                                                                 US and Australia.
Value Adding Opportunities
                                                                 Camel milk consumption is also aligned to a trend toward
In addition to value adding camel milk into a range of dairy     consumption of traditional natural foods and an interest in
products (flavoured milk, yogurt, cheese and ice cream)          cuisines from other cultures. Camel milk will find consumers
camel milk is also used in the manufacture of cosmetics.         amongst those who are culturally familiar with the product
Cosmetic products include camel milk soap, camel milk            and consumption will increase in western countries as these
lotion with frankincense and myrrh, lip balm, skin               groups increase in number and affluence.
moisturiser, sun protection cream, body butter, dog wash and
laundry powders – see for instance Camel Milk Australia          Small scale camel milk production that provides ample
at https://www.camelmilkaustralia.com.au/. Camel dairies         opportunity for the calf to suckle is consistent with the
produce these products as a side line or when fresh milk sales   growth in ethical food sourcing. The US Vegan Society has
are not possible.                                                recently endorsed camel milk produced in this way. Ethical
                                                                 consumption is a major trend and is thought to be relevant to
Queensland’s Maleny Cheese has been supplied by QCamel           up to 10% of all food and natural fibre sales.
and produced Australia’s only camel milk curd and cheese.
However, the product proved too expensive to sustain.            Competitor analysis
Muswellbrook Camel Milk produces a range of flavoured            Australian camel milk will need to compete with other
camel milks in 300 ml bottles and Humpalicious has a             alternative milks with health properties that differ from
350ml iced coffee offering.                                      cows’ milk. These products include goat, sheep and mare
It is possible to purchase overseas manufactured camel milk      milk as well as plant based alternatives such as soy, almond
powder online and while some enthusiasts claim that heating      and coconut milk.
and powdering could diminish its nutritive properties, the       In addition Australian camel milk must compete with
product is popular (See http://desertfarms.com/products/         imported powdered camel milk and new sources of supply
camel-milk-powder?gclid=CNOyyYX2zs0CFQokvQodHF                   originating in the Middle East. For example a new large scale
AKiw).                                                           commercial camel dairy was recently opened in Dubai.

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The dairy is targeting markets in the Middle East, US and Europe (Lucy Martin, ABC News, 12 August 2014 http://www.
abc.net.au/news/2014-02-28/camel-feature-wa/5291792).

Working in Australia’s favour is a comparative advantage steeped in a supply of disease free wild camels and food quality
systems that reassure export customers. The Australian industry is not exposed to diseases such as MERS (Middle Eastern
Respiratory Syndrome), foot and mouth disease and brucellosis.

References
Clarke, M (2014) Camel Live Export Supply Chain and Benefit Cost Analysis. Prepared for Meat and Livestock Australia.

FAOSTAT Milk, Whole Fresh Camel http://faostat3.fao.org/browse/Q/QL/E

FAO (2006) The Next Thing: Camel Milk. FAO Sees Bright Prospects for Camel Milk http://www.fao.org/newsroom/EN/
news/2006/1000275/index.html

Lethbridge, M and Clarke, M (2016) Central Australian Commercial Camel Meat Viability Study. Prepared for the Northern
Territory and South Australian Governments

RIRDC Project number: PRJ-010227
Pub Number: 17/009
ISBN: 978-1-74254-933-0

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