Australian Camel Meat: China market

Australian Camel Meat: China market
RIRDC Publication No. 11/110
RIRDC
Innovation for rural Australia
Australian Camel Meat:
China market
By Mr David Wu, Mr Chiu-Hing Chan and Mrs Crystal Deng
October 2011
RIRDC Publication No.11/110
RIRDC Project No. PRJ-007251
© 2011 Rural Industries Research and Development Corporation.
All rights reserved.
ISBN 978-1-74254-196-9
ISSN 1440-6845
Australian Camel Meat China Market Travel Report
Publication No. 11/110
Project No. PRJ-007251
The information contained in this publication is intended for general use to assist public knowledge and
discussion and to help improve the development of sustainable regions. You must not rely on any information
contained in this publication without taking specialist advice relevant to your particular circumstances.
While reasonable care has been taken in preparing this publication to ensure that information is true and correct,
the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication.
The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the
authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability
to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or
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The Commonwealth of Australia does not necessarily endorse the views in this publication.
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rights should be addressed to the RIRDC Publications Manager on phone 02 6271 4165.
Researcher Contact Details
Mr Chiu-Hing Chan
PO Box 7577
EAST BRISBANE QLD 4169
Phone: 07 3323 3838
Mob:
0411 763 641
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 2, 15 National Circuit
BARTON ACT 2600
PO Box 4776
KINGSTON ACT 2604
Phone:
Fax:
Email:
Web:
02 6271 4100
02 6271 4199
[email protected].
http://www.rirdc.gov.au
Electronically published by RIRDC in October 2011
Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au
or phone 1300 634 313
ii
Report complied and researched by
Mr David Wu, Senior Trade Executive BBus, MBA
Australian Chinese General Chamber of Business
Mr Chiu-Hing Chan, Vice Chairman LLB, BIR, MJ, MAICD, JP
Australian Chinese General Chamber of Business
Mrs Crystal Deng, Chief of Staff BBus, MBA
Australian Chinese General Chamber of Business
iii
Contents
Foreword..................................................................................................................................................... v
Research background ............................................................................................................................... vi
Executive Summary ................................................................................................................................. vii
Research locations ...................................................................................................................................... 1
Chinese camel background ....................................................................................................................... 2
Chinese camel production ......................................................................................................................... 4
Chinese Government policy ...................................................................................................................... 8
Chinese market demand .......................................................................................................................... 12
Analysis for Australian camel industry .................................................................................................. 20
iv
Foreword
China has had an established camel meat market for over 3,000 years, but with a declining camel
population, small farming population and the offer of alternative meats such as pork, beef and lamb, the
popularity and awareness of camel meat has diminished considerably over the last two centuries.
The majority of camel consumers are located in China’s western and northern regions where the highly
prized camel hump meat is considered a delicacy. The meat is also highly valued for traditional Chinese
medicinal purposes. Beyond traditional medicine, camel meat is known in China for its richness in
protein, calcium, phosphorus, iron and vitamins A and B; and is low in fat and cholesterol content.
Given that very little information is publicly available, and little is known of the Chinese camel market
and its consumers in the western world, this in-depth research aimed to find the extent of China's market
demand for camel meat and determine Chinese domestic prices and production levels. In addition, the
report intended to attain the general views of Chinese customers and the general public on their
perceptions of camel meat.
Before China goes further to revive its camel industry, there are several serious challenges that the
industry has acknowledged to be critical problems. These issues include the existence of only
29 distributors across China who sell camel meat, and the lack of public awareness of camel meat by
those living beyond the camel-producing provinces.
All of these challenges faced by the Chinese camel industry in public awareness (marketing), distribution
and retail are also matters that will be confronted by the Australian camel industry if products are to be
sold in China. Further consideration needs to be given to the pricing of Australian camel meat; this is due
to restricted consumer spending power in camel-meat consuming regions.
This project was funded from RIRDC Core Funds, which are provided by the Australian Government.
This report is an addition to RIRDC’s diverse range of over 2000 research publications and it forms part
of our New Animal Products program, which aims to accelerate the development of viable new animal
industries.
Most of RIRDC’s publications are available for viewing, free downloading or purchasing online at
www.rirdc.gov.au. Purchases can also be made by phoning 1300 634 313.
Craig Burns
Managing Director
Rural Industries Research and Development Corporation
v
Research background
The Australian Chinese General Chamber of Business is currently working with the support of the
Australian Camel Industry Association to investigate the long-term viability of exporting Australian
camel meat into China and whether it is worthwhile pursuing an export protocol agreement, based on
Chinese market demand.
Many thanks are given to the Rural Industries Research & Development Corporation for commissioning
this research study. The study was conducted by Australian Chinese General Chamber of Business staff,
who travelled to the north-western Chinese provinces of Inner Mongolia, Gansu, Ningxia, Qinghai and
Xin Jiang.
This preliminary study has found that camel meat is used and consumed by Chinese Muslims, many of
whom reside in the north-western regions of China, and in pockets along the country's east coast.
Given that very little information is publicly available, and little is known of the Chinese camel market
and its consumers in the western world, this in-depth research aimed to find the extent of China's market
demand for camel meat, and determine Chinese domestic prices and production levels. In addition, the
report intended to attain the general views of Chinese customers and the general public on their
perceptions of camel meat.
This much anticipated report will certainly be commercially analysed by the Australian Chinese General
Chamber of Business in partnership with the Australian Camel Industry Association over the coming
months to determine whether an export protocol agreement is worth pursuing.
Chiu-Hing Chan
Vice Chairman & Head of Australian Division
Australian Chinese General Chamber of Business
vi
Executive Summary
What the travel report is about
This travel report assesses China's consumer market supply and demand of camel meat, in order to
determine whether an Australian Camel meat export protocol agreement should be pursued. The report
looks at the Chinese population's views on camel meat, the effects of location and domestic retail price on
consumption, population size of domestic camels, and where the current supply of meat comes from.
Who is the report targeted at?
The report is targeted at The Australian Chinese General Chamber of Business and the Australian Camel
Industry Association.
Where are the relevant industries located in Australia?
The relevant Australian industries are located primarily in Western Australia, the Northern Territory,
South Australia and Queensland.
Background
China has had an established camel meat market for over 3,000 years, but with a declining camel
population, small farming population and the offer of alternative meats such as pork, beef and lamb, the
popularity and awareness of camel meat has diminished considerably over the last two centuries.
The majority of camel consumers are located in China’s western regions (Xin Jiang, Inner Mongolia,
Gansu, Qinghai) and northern regions (Beijing, Hebei, Shandong, Ningxia), where the highly prized
camel hump meat is considered one of the ‘Eight Treasures’ in Chinese cuisine and the camel foot is
made into a thick soup that was named ‘Seven-Treasure Soup’ by a Chinese imperial prince.
The meat is also highly valued for traditional Chinese medicinal purposes, where camel stew helps to
strengthen a person’s bones and relieves arthritis and stiff limbs. Camel stomach helps a person to aid
digestion, cure liver disease and relieve stiffness to joints. Camel hump is believed to contain a Qu tonic
that softens human skin.
Beyond traditional medicine, camel meat is known in China for its richness in protein, calcium,
phosphorus, iron and vitamins A and B; and is low in fat and cholesterol content.
Methods used
From initial research, China's large Muslim population in Western China consume camel meat as a
premium product and during religious occasions such as Ramadan. For this reason, the study primarily
focussed on the Chinese provinces of Xinjiang, Gansu, Qinghai and Ningxia where there exists a high
concentration of Chinese Muslims.
Results/key findings
While camel meat is highly valued, it is sold at 20 Yuan per kg (AU$3.06), and camel feet at 25 Yuan
each (AU$3.83), a price considerably lower than domestically produced pork, lamb (40 Yuan per kg,
AU$6.06) and beef (35 Yuan per kg, AU$5.30). This price difference is due to higher market demand for
the alternative meats and the restricted spending power of consumers in regions where camel meat is
consumed.
vii
Camel milk, on the other hand, is sold above the market price of ordinary milk at 15 to 30 Yuan per litre
(AU$2.30 to AU$4.60). This is largely driven by the limited supply of camel milk in the country; it is
only on sale in restaurants and retail stores within Xin Jiang province.
In a country where there is a total farmed camel population of 250,000 (in 2010) and a small population
of wild camels (numbering in the several thousand), the Chinese national and provincial governments
have allocated large sections of land in the western Chinese province of Xin Jiang and in Inner Mongolia
for state-run camel farms. The decision to support the industry is largely based on political and economic
interests of the Chinese Government in the country's inner west, an area that has experienced growing
numbers of deadly riots by Chinese Muslims over unemployment and their loss of cultural identity. In
addition, western China has largely been left out of the country's rapid economic development, which has
mostly been focused on the eastern coast.
As part of the industry’s revival, the Chinese Government in Xin Jiang allocated 76,000 square
kilometres of land for a region that accounts for 20 per cent of the national camel population, while in
Inner Mongolia, 32,000 square kilometres of land has been allocated for camel farming. In 2008, Inner
Mongolia – a province that produces one third of the camel production in China and accounts for 68 per
cent of the nation's farmed camel population – established the world’s largest camel farm by allocating
and fencing off eight locations in the Gobi Desert with a total land size of 6.8 million square kilometres.
Inner Mongolia’s provincial government is attempting to expand its production of 2,163 tonnes of camel
meat in 2010 to become a world leader in camel production. While this is a very ambitious plan, the
provincial city of Alxa on the plains of the Gobi Desert is already dubbed the ‘camel town’ of China.
In 2010, the Inner Mongolian Government in partnership with private enterprises and farming
associations, held China’s first ever camel industry conference in order to lay out a strategy for industry
production, development, scientific research and marketing.
With China’s 250,000 camels each yielding on average between 160 to 200 kg of meat (of which 25 per
cent of its body weight is fat), the industry has turned to the modern science of embryo collection and
IVF treatment in order to fast track breeding and is hoping larger camels will be produced in the process.
However, the use of science to fast track the revival of the industry is still largely a dream, as the private
sector is lobbying the government to pay for scientific costs such as IVF treatment.
Implications for relevant stakeholders
Before China goes further to revive its camel industry, there are several serious challenges that the
industry has acknowledged to be critical problems. These issues include the existence of only 29
distributors across China who sell camel meat and the lack of public awareness of camel meat by those
living beyond the camel-producing provinces.
With respect to retailers, major challenges include: changing the attitudes of shop owners in western China to
keep refrigerators on throughout the day in order to maintain meat shelf life; and, discouraging fraudulent
practices by retailers across the country of deliberately passing off beef meat as camel meat to consumers.
Recommendations
All of the challenges faced by the Chinese camel industry in public awareness (marketing), distribution
and retail are also matters that will be confronted by the Australian camel industry if products are to be
sold in China. Further consideration needs to be given to the pricing of Australian camel meat, due to
restricted consumer spending power in camel-meat consuming regions.
viii
Research locations
Information collected for this report came from provinces in China that have a substantial Chinese
Muslim population or are areas known through research to have a reasonable number of consumers of
camel meat. As such, information was collected amongst the provinces in western China and amongst
regional pockets along the country's east coast (refer to Table 1 and Figure 1).
Table 1.
Information collected from Chinese provinces
Chinese province
Geographical location
General population/Muslim population
Inner Mongolia
north-west
23.8 million/214,560
Gansu
west
26.35million/1.31 million
Ningxia
north-west
6.22 million/2.11 million
Qinghai
west
5.57 million/891,200
Xin Jiang
west
21.6 million/1.08 million
Beijing
north
22 million/440,000
Hebei
central
69.9 million/559,120
Shandong
north
94 million/564,000
Figure 1.Chinese provinces.
Source: Wikipedia.
1
Chinese camel background
For over 3,000 years, camels in China have been domesticated. They have been used for meat, milk, fur
and transport since trade commenced between the east and the west on the ancient Silk Road.
During the period of the Three Kingdoms (AD 220–228) when China was divided between three
emperors, Prince Cao Zhi of Chenliu made a thick soup of camel's hooves that cost 1,000 ounces of gold
and called it ‘Seven-Treasure Soup’. This began the high value placed on camel meat as a source of
medicinal and health benefits.
Photo 1.
th
Herd of camels in Gansu in the late 19 century.
Photo by Camel China.
As modern transport began to replace the use of camels, from the beginning of the 15th century to the turn
of the 20th century, the need to maintain a large camel population subsided.
While camel continued to be an important meat source in remote and other regions of western China until
the 20th century, mass-industrialised farming production across China brought with it the availability of
lamb, beef and pork, which gave traditional Chinese camel consumers an alternative meat source. This
caused a massive market decline in the demand of camel meat, and contributed to the steady fall of
China's camel population and the number of farmers that look after them (refer to Table 2).
2
Table 2.
China farm camel population
Year(s)
Total camel population
1950s
800,000
1980s
500,000
1994
373,000
2004
265,000
2007
223,000
2010
250,000
In the mid 20th century, the total farmed population of camels in China numbered 800,000, but as of 2010
there are only 250,000 camels in the country. Photo 2 shows some Chinese camels in the Gobi Desert.
Photo 2.
Camels in the Gobi Desert
As a result of dwindling camel numbers and the Chinese Government's political and economic interest in
the western China region, large state-run farms and the allocation of land was established to increase the
herd population and further assist the industry (refer to section titled ‘Chinese Government policy’).
In the area of conservation, of the three types of camels (Bactrian, Alashan and Sonid), both the Bactrian
and Alashan camel species are classified as endangered. There are only several thousand wild camels in
China.
In Xin Jiang, the population of wild Bactrian camels is only around 1,000. Having survived 43 nuclear
bomb tests in Xin Jiang Province, the Bactrian camel, like all other camel species, was widely hunted due
to its Chinese medicinal value in treating colds and arthritis.
Ironically, one of the locations that have been made for conservation of the local Bactrian camel population
was made through the allocation of a former nuclear weapons test site, as an environmental protection area for
the animal. Currently there are 700 Bactrian camels on the reserve.
Another endangered camel species, the double-hump Alashan camel located in Inner Mongolia, saw
numbers drop from 250,000 to 60,000 from 1982 to 2002. In 2004, the Alashan camel population was
slowly rebuilt to 70,000 after conservation efforts were made by locals.
3
Chinese camel production
Currently all camel meat (see Photo 3) and products in China are domestically produced from local
Chinese camels located in Inner Mongolia, Xin Jiang and Qinghai. There are no imports or export of
camel products to and from China.
Photo 3.
Chinese camel meat
Each farmed Bactrian camel on average produces 160–200 kg of meat, of which 25 per cent of the whole
bodyweight is fat.
For milk production, a female camel at peak can yield 0.5 to 1.5 litres. If well-fed, the camel can produce
an average of 1.5–3 litres worth of milk.
Inner Mongolia
Alxa, a city located in Inner Mongolia produces one-third (1/3) of China's camel meat and the area is also
known as the country's ‘camel town’. In 2010, 2163 tonnes of camel meat was processed, an increase of
534 tonnes (32.78 per cent) compared to 2009.
Inner Mongolia houses 68 per cent of China's 250,000 head of camel; and the local provincial
government has already launched an active strategy to increase the region's camel population by building
the world's largest collective camel farm on the Gobi Desert. An area of 32,000 square kilometres has
already been assigned as a reserve for farming camels in the Alxa region.
In November 2008, the Chinese Inner Mongolian Government established eight government collective
owned farms on the Gobi Desert, at Alxa, Mazongshan, Tengger Desert, Ulan Buh Desert and at four
other locations that together cover a total of 6.8 million square kilometres, with fencing built around each
of the farms.
The provincial government encouraged farmers to move onto these eight farms, through tax exemptions
for dependents and support for the farmer’s families, in an effort to build up the herdsman labour force as
part of the effort to kick-start large-scale camel breeding.
4
High-tech skills such as embryo collection and IVF treatment are hoped to be used by the private
enterprises to generate a larger camel population in a limited time. The problem of the high costs
associated with IVF treatment is driving the industry to lobby the national and provincial government for
financial support.
Further growth in camel production is expected for the province with the Chinese Inner Mongolian
Government and related camel organisations having jointly held a Chinese Camel Industry Conference in
2010, to work out the strategy for bringing the camel industry and market forward (refer to the section
titled ‘Chinese Government policy’).
Xin Jiang
In the province of Xin Jiang, which accounts for 20 per cent of the national camel population (refer to
Photo 4), the Chinese provincial government allocated 76,000 square kilometres of land as a state-run
camel farm. Similar to the neighbouring province of Inner Mongolia, Xin Jiang Province endeavours to
draw more farmers into camel farming (refer to Photo 5) through various government financial support
schemes including subsidising the living expenses of farmers’ families.
Photo 4.
Camel in Xin Jiang Province
5
Photo 5.
Camel herdsman taking the camel to the local meat market
Camel's milk is also commercially produced in the region and sold in the provincial capital Urumqi City's
restaurants and shops at 15 Yuan (AU$2.30) to 30 Yuan (AU$4.60) per kg. Market demand is strong with
supply limited due to the small number of camels that are able to produce milk. In 500 g packaging, milk
is sold for between 8 Yuan (AU$1.22) to 12 Yuan (AU$1.84).
Distribution & retail problems
In the western regions of China, meat producers have substantial problems with ensuring retailers
properly store their products and maintain the products’ shelf life.
Retailers and distributors in the Chinese western provinces are known to turn off refrigerators at night, in
order to cut electricity costs. This causes the shelf life of meat products to be cut dramatically and at
times see retailers returning product to producers and claiming the product was defective in order to
recover money or attain fresh product.
A second problem hindering production growth is the small number of distributors of camel meat across
the country. Currently there are only 29 commercial entities that distribute camel meat across China, of
which the majority of those distributors are located within camel producing regions (refer to Photo 6 and
Table 3).
6
Photo 6.
Camel meat at the meat market
Table 3.
China camel meat distributors
Chinese province
Number of distributors dealing with camel meat
Xing Jiang
9
Inner Mongolia
7
Gansu
3
Beijing
3
Shan Dong
2
Qinghai
5
7
Chinese Government policy
Both Chinese national and provincial government policy towards camel is largely in support of largescale state-run farms that intend to rebuild camel populations through joint efforts between private
enterprises and Chinese provincial governments in designated reserves.
The intention to rebuild the camel population is driven by government interest to economically develop
China's inner west; a region that has largely been forgotten due to development having been largely
focused on the country’s eastern coast.
On a political level, the 2009 Xin Jiang riots by Chinese Muslims, which left 197 killed and 1700 injured,
have also drawn government attention to social problems in the western region, such as unemployment, a
growing income gap between wealthy and poor, and the loss of cultural identity.
The development of the camel industry in provinces such as Xin Jiang (with 1.08 million Chinese
Muslims) and Inner Mongolia (with 214,000 Chinese Muslims) is one aspect of tackling these social
problems and helps both the Chinese national and provincial governments with maintaining social order
in the region (refer to Photo 7).
Photo 7.
Camel in Chinese Inner Mongolia
State-run camel farming
A total of 78,000 square kilometres of land have been made available in Xin Jiang Province as a reserve
for state-run camel farming, given that the region accounts for 20 per cent of the farmed-camel
population in China.
8
A further 68 per cent of China's farmed camels are located in Inner Mongolia, and an area of 32,000
square kilometres has been assigned as a reserve for farming the animal in the Alxa region.
In November 2008, the Chinese Inner Mongolian Government established eight government-operated
farms on the Gobi Desert (refer to Photo 8), at Alxa, Mazongshan, Tengger Desert, Ulan Buh Desert and
at four other locations that together cover a total of 6.8 million square kilometres, with fencing built
around each of the locations. The provincial government encouraged farmers and herdsman to move on to
these eight farms through tax exemptions for dependents and financial support for the farmers’ families.
High-tech skills such as embryo collection and IVF treatment are being used to generate a larger camel
population within a limited space of time.
Photo 8.
Camels feeding on the Gobi Desert
Camel industry development strategy conference
The ambition of the Chinese Inner Mongolian Provincial Government to turn the region into the main
camel production centre of China was furthered with the country’s first ever Camel Industry
Development Strategy Conference in August 2010 (refer to Photo 9).
Those that attended included:
- China Animal Husbandry Association
- China Bureau of National Institute of Cultural Studies
- Inner Mongolia Industrial Sand, Grass and Industry Association
- Society for the Protection of Inner Mongolia Camel
- Inner Mongolia Brand Association
- Helingeer County People's Government of Inner Mongolia
9
- Wang Zhao Jun Camel Industrial Co
- Alxa Camel Herders Care Professional Cooperatives.
Photo 9.
2010 China Camel Industry Conference
In general, the conference set nine targets for the emerging camel industry to achieve:
1) Understand the strategic position of the country's camel industry and develop it into a sustainable
industry.
2) Lobby for the Chinese national and provincial governments to come on board and designate the
camel and cattle industry as high priority by setting clear development objectives and key support
measures.
3) Lobby for financial support from the national and provincial departments on funding embryo
technology, feed technology and veterinary technology for camels.
4) Secure all levels of government and relevant departments to support vigorously the camel
industry's businesses/enterprises, encourage camel breeding, support marketing, research and
service enterprises and establish industry alliances and to provide low-interest agricultural loans
to farmers.
5) Develop a culture and associated tourism industry in camel racing.
6) Advocate for the establishment of a camel breeding, processing, management and service
association and co-operative economic organisation that can attract industrial development and
investment (both domestic and abroad).
7) By building an established camel industry in the region, it would allow the company to promote
Inner Mongolia to the World as the leading producers of camel meat and products.
8) A 'Camel Protection and Industrial Development Fund' to be established to take China's national
investment, corporate sponsorship, international financial assistance to develop a market
management model that enable the development of a sustainable camel industry.
9) Encourage the Chinese national and provincial governments to introduce a camel breeding policy
that includes a camel farm subsidy system, low interest agricultural loan and financial grants to
support farmers and their families.
10
At the conference the industry also discussed ways to improve the protection of grassland vegetation and
pasture resources essential for the survival of camels. In addition, it discussed the establishment of a
camel industry chain of production and distribution, including the prospect of product developments that
would have health or medical benefits for consumers.
Mr Yang Bin from the Wang Zhao Jun Camel Industrial Co made the company's intention clear that as the
largest camel enterprise specialising in camel products, research, development, production and sales, they
plan to sell camel products on the international market by 2012.
The Wang Zhao Jun Camel Industrial Co justified their business ambition based on four reasons:
1) build employment and economic benefits for herdsman
2) through business they can establish awareness of camel's historical evolution
3) encourage the improvement of the ecological sustainability for camels if businesses based on
camels are to be successful on the long-term
4) from the consumer's point of view, the Bactrian camel has a lot of economic benefit in one
animal, ranging from its cashmere-like fur to its high-quality meat, milk and skin. In particular,
the camel's milk provides medicinal benefits to consumers by helping to treat abdominal swelling
and insect bites.
Mr Bin identified problems in three key areas that will slow China's camel industry development:
1) Scientific research on camel development has not progressed substantially to allow the
sustainable development of the industry.
2) Market awareness – many Chinese consumers have no clear understanding of the value of camel
or camel-associated products. Consumers require guidance based on science that would gradually
change the public's attitude towards product acceptance. In addition, Mr Bin called on the
government's need to be guided by industry experts to place more focus on media publicity on
camel products. Companies and enterprises should optimise the production of products focused
on quality and quantity rather than focused on defrauding consumers.
3) Without strong Chinese national government support for camel herders and enterprises, the
industry is unable to grow.
11
Chinese market demand
Price
Currently, camel hump meat and body meat are sold at 20 Yuan per kg (AU$3.06) and camel feet are sold
at 25 Yuan each (AU$3.83). The price variation between camel feet and meat is purely driven by a
traditional Chinese dining culture that dates back to A.D. 220 when Prince Cao Zhi of Chenliu made a
thick soup of camel's hooves (refer to Photo 10) that cost 1,000 ounces of gold and called it
‘Seven-Treasure Soup’.
Photo 10.
Camel feet sold on display at the meat market
Camel hump is known to be one of the ‘Eight Treasures’ that is served in traditional Chinese banquets,
which are only available at high-class expensive restaurants. Photos 11 and 12 depict different camel
meat products.
Photo 11.
Fried camel meat
12
Photo 12.
Sliced camel meat
Price comparison with alternative meats on the market, such as lamb (40 Yuan per kg, AU$6.06), beef (35
Yuan per kg, AU$5.3) and pork clearly indicate camel meat being relatively cheaper. The price difference
is due to higher market demand (refer to Table 3) and the restricted spending power of camel-meat buyers
in some regions of the country.
Domestic market price of meat takes into consideration of the disposable income of the general
population residing in the individual provinces of China. As such, any Australian products (including any
potential export of Australian camel meat) should take into account individual provinces' average
disposable income when considering sales price (refer to Table 4). Disposable income is calculated by the
average person's income after tax.
Table 4.
2010 Disposable income in camel market region
National Province
ranking
Urban in RMB
(AU$)
Rural in RMB (AU$)
1
Shanghai
28,838 (AU$4,404.43) 12,324 (AU$1,881.64)
89
2
Beijing
26,738 (AU$4,082.15) 11,986 (AU$1,829.88)
86
8
Shandong
17,811 (AU$2,719.38) 6,119 (AU$934.35)
49
9
Inner
Mongolia
15,849 (AU$2,420.50) 4,938 (AU$754.16)
52
14
Hebei
14,718 (AU$2,247.15) 5,150 (AU$786.06)
44
20
Ningxia
14,025 (AU$3,139.96) 4,048 (AU$417.65)
47
28
Qinghai
12,692 (AU$1,936.24) 3,346 (AU$510.38)
42
30
Xin Jiang
12,258 (AU$1,869.76) 4,005 (AU$610.91)
40
31
Gansu
11,930 (AU$1,819.77) 2,980 (AU$454.55)
33
Source: National Bureau of Statistics.
13
Percentage of
urban pop’n
(%)
If Australian camel meat is exported into China, the comparison of prices will be made with Australian
lamb, beef and kangaroo meat exported into China. Currently Australian beef is sold between 160 to 420
Yuan per kg (AU$24.00 to AU$463.00 per kg) and Australian lamb is sold at 40 to 150 Yuan per kg
(AU$5.90 to AU$23.00 per kg). Australian kangaroo, an exotic meat, is being sold between 28 to 45 Yuan
per kg (AU$4.20 to AU$6.72 per kg).
Between 2004 and 2010, the price of camel rose by 40 per cent and it is expected that the price will
continue to increase to cover the cost of the Chinese camel industry's development and reflect the scarcity
of camel on the market.
For camel's milk, the product is largely sold in Xin Jiang Province at between 15 to 30 Yuan per litre
(AU$2.30 to AU$4.60). The high price is due to the limited number of camels in the province that are
able to produce milk.
The Consumer
Chinese consumers of camels are located in the north-west and parts of northern China. Those who
consume camel meat are not necessarily restricted to Chinese Muslims, but the meat is also eaten by the
general population in those regions.
While camel is consumed, it is not done on a daily basis due to the meat's lack of availability, consumer
confidence, a wide selection of alternative meat, and local taboos.
Camel meat consumption is also being turned away in favour of other alternative meats such as pork,
beef and lamb. In the Chinese Muslim consumer market, lamb is daily consumed by the population.
Of the different varieties of meat consumed in 2010, camel meat along with other exotic meat fell within
the national meat consumption market share of 1.6 per cent (1,000,000 tonnes) (refer to Figure 2 and
Table 5). In 2010, a total of 12,000 tonnes of camel meat were produced across China.
14
Pork 50,700,000
Pork
Beef
Lamb
Other
Other 1,000,000
Lamb 3,980,000
Beef 6,530,000
Figure 2.2010 Market share of meat products
Source: National Bureau of Statistics, 28 Feb 2010.
Table 5.
2010 Market share of meat products
Meat
Demand (tonnes)
Pork
50,700,000
Beef
6,530,000
Lamb
3,980,000
Others
1,000,000
Source: National Bureau of Statistics, 28 Feb 2010.
Another major problem with the camel meat market is public awareness. A large portion of the Chinese
public living outside the camel-farming regions are not familiar with camel meat, its usage, taste, and
how it is cooked for consumption. This lack of public awareness is largely driven by the lack of
availability of camel meat on the market.
Those who are aware of camel meat believe it is a specialised product that can only be eaten if they
travelled to the western or northern regions of China where camels are produced. For the wealthy, camel
hump is known to be one of the ’Eight Treasures’ served in traditional Chinese banquets, and only
available at high-class expensive restaurants.
The issue of public awareness was also raised as a substantial problem by Mr Yang Bin's address at the
Chinese Camel Industry Conference in 2010 (refer to section titled ‘Chinese Government policy’).
If camel meat is to be sold across China, whether it is initiated by the Chinese camel industry or a foreign
producer, substantial marketing is required to educate the public about the benefits of camel meat and
taste.
15
Consumer confidence
Consumer confidence has always been a major issue in China when selling exotic meat, such as camel. At
meat markets and restaurants, consumers when shopping for camel meat are always wary that they are
going to be sold or served beef as a fraudulent product.
With consumers unable to identify the difference between beef and camel meat at the market, buyers tend
to avoid making any purchases, unless they are able to see the camel carcass with the head still attached
(refer to Photo 13).
Photo 13.
Camel's head on display at the meat market to show genuine camel meat is sold at
the stall
Unfortunately China's meat market has a notorious reputation of selling fraudulent exotic meat at either
the same market price as the genuine product or at a considerable lower cost.
In restaurants, consumers have virtually no method of detecting whether their meal is camel or beef,
unless the consumers themselves have previously eaten genuine camel and are familiar with the
difference in texture and taste.
16
Local taboo
In Xin Jiang, the local Chinese Muslim population has a cultural belief that if young women consume
camel meat, they will become infertile. While there is no official reason behind this belief, an unofficial
explanation would be that camels in the province contain a substantial level of radiation attained from
China's only nuclear testing site located the province. A total of 43 nuclear weapons were tested since the
1950s.
If this theory is true, it is ironic that a camel conservation reserve has been built on the former nuclear
testing site.
Health benefits
Camel meat is scientifically known as a meat rich in protein, calcium, phosphorus, iron and vitamin A,
vitamin B; and it is low in fat and cholesterol content.
From a Chinese medicinal perspective, each individual camel body part has traditionally been known to
relieve pain to various parts of the human body. The camel hump contains a Qu tonic that softens human
skin. The camel stomach helps aid digestion, cures liver disease and eases joint stiffness.
If camel meat is made into a stew, consumption of the meat helps strengthen a person's bones, and
relieves arthritis and stiff limbs.
With camel milk, the lactic acid along with elements in the milk is used by herdsman living in remote
locations of China to cure diseases and illness such as gastro-intestinal problems.
Market for camel meat packaging
Camel meat is sold in a variety of form for different types of consumers (refer to Table 6). For restaurants
and meat markets, it is available as fresh or frozen meat that has either been pre-packed or can be
purchased as a carcass.
Table 6.
Camel meat packaging
Consumer use
Meat markets/restaurants
Home usage
Packaging
Frozen and fresh camel meat Fresh camel
Outdoors
Sliced cooked meat
Boneless
Weight
1–25 kg
Boneless/with bone
Boneless
Variable
250–500 g
For individual domestic usage, camel meat is often brought pre-packed with the meat seasoned with spicy
flavours. Pre-packed meat comes as a de-boned fillet pack or, alternatively, in the form of skewers for
grilling over the fire (refer to Photo 14).
17
Photo 14.
Pre-packed and marinated camel skews
If consumers are outdoors, dried camel jerky (refer to Photo 15) and smoked camel meat (refer to
Photo 16) are available for light and easy consumption while travelling. These meats will be packaged as
thin slices in an air-tight bag.
Photo 15.
Camel jerky in pre-packed air-tight bag
Photo 16.
Smoked camel meat
18
Camel meat is also eaten grilled (refer to Photo 17).
Photo 17.
Grilled camel meat being cooked in the Gobi Desert
19
Analysis for Australian camel industry
China has a long-established camel meat market for potential Australian camel industry exports, but there
are number of considerations to take into account and challenges that need to be overcome in order for
the Australian industry to attain a positive long-term outcome. Challenges faced by the domestic Chinese
camel industry concerning public awareness, marketing, the distribution network and the reliability of
retailers are considerable problems that the Australian camel industry would also face if entering into the
market.
With the Chinese public largely unaware of how to use camel meat or its benefits, a substantial marketing
budget is required from any exporter to successfully educate consumers, either through advertisements or
food promotions. From experience, these marketing campaigns will cost in excess of over half a million
dollars in most cities and over $1.5 million in large metropolitan centres such as Shanghai or Beijing.
This marketing budget does not include the financial expenses require on promoting the camel meat to
distributors and retailers in China, which would often entail a large 'entertainment expense' – a mandatory
Chinese cultural tradition of fine wining and dining with potential distributors before business
negotiations even commence. The marketing expense overall is immense.
The identification by the Chinese that there are only 29 camel meat distributors across China, creates a
question for Australian producers as to whether they want to develop alternative distribution networks in
the country or compete against local Chinese camel producers to win over the limited number of camel
meat distributors.
For an Australian camel producer to successfully enter the Chinese market, product pricing will also be a
major issue to consider. With most camel consumers living within the western and north-western
provinces of China, the lower consumer spending power for those in these regions compared to the
economically more developed east coast indicates that careful pricing is required.
On the issue of retail, Australian camel producers will need to find a method to combat against domestic
camel meat product or beef that could be fraudulently sold off as Australian camel. This is a serious
problem that exists within China's exotic meat market industry and could damage the reputation of
Australian producers if fraudulent and/or substandard meat is passed off as from Australia. Continual
checks and inspection of camel products being sold in the Chinese market will need to be done on a
regular basis as part of the solution to this problem.
While a camel meat market exists in China, a substantial amount of financial capital is required in order
to build the market, distribution and retail foundation for export; careful consideration is required for
marketing and product pricing of any future Australian camel meat export.
The Chinese domestic camel industry is slowly developing but is still within an emerging industries stage
that is heavily dependent on government support and financing, as such domestic competition would not
be the greatest threat against exporting Australian camel producers. The greatest issue will be the course
of action exporters chose to take in China that will influence the outcome of consumer confidence,
awareness and willingness to purchase Australian camel meat.
20
Australian Camel Meat: China market
by Mr David Wu. Mr Chiu-Hing Chan and Mrs Crystal Deng
Publication No. 11/110
China has had an established camel meat market for over 3,000
years, but with a declining camel population, small farming
population and the offer of alternative meats such as pork, beef
and lamb, the popularity and awareness of camel meat has
diminished considerably over the last two centuries.
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Most of the information we produce can be downloaded for free
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Given that very little information is publicly available
and little is known of the Chinese camel market and its
consumers in the western world, this in-depth research aimed RIRDC books can also be purchased by phoning
to find the extent of China’s market demand for camel meat 1300 634 313 for a local call fee.
and determine Chinese domestic prices and production
levels. In addition, the report intended to attain the general
views of Chinese customers and the general public on their
perceptions of camel meat.
Cover photo: Grilled camel meat being cooked in the Gobi Desert
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