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China: Crocodile Meat Market Research Travel Report RIRDC Publication No. 11/008 RIRDC Innovation for rural Australia

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Page 1: Final Report Template … · has high medicinal value. The classical Chinese medicine ‘Bible’, The Compendium of Materia Medica, recorded: “Crocodile meat can strengthen the

China: Crocodile Meat Market ResearchTravel Report

RIRDC Publication No. 11/008

RIRDCInnovation for rural Australia

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Page 3: Final Report Template … · has high medicinal value. The classical Chinese medicine ‘Bible’, The Compendium of Materia Medica, recorded: “Crocodile meat can strengthen the

China: Crocodile Meat Market Research

Travel Report

By Mrs Crystal Deng,Chiu-Hing Chan, Ms Zhi Ren Deng and Mrs Jia Hua Li

February 2011

RIRDC Publication No. 11/008 RIRDC Project No. PRJ-005797

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© 2011 Rural Industries Research and Development Corporation. All rights reserved.

ISBN 978-1-74254-196-9 ISSN 1440-6845

China: Crocodile Meat Market Research Travel Report Publication No. 11/008 Project No. PRJ-005797

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 omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors.

The Commonwealth of Australia does not necessarily endorse the views in this publication.

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and 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: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au

Electronically published by RIRDC in February 2011 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313

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Report compiled and researched by

Mrs Crystal Deng BBus, MBA Chief of Staff, Australian Chinese General Chamber of Business Mr Chiu-Hing Chan LLB, BIR, MJ, MAICD, JP Vice Chairman, Australian Chinese General Chamber of Business Ms Zhi Ren Deng BJ Ground Researcher, Australian Chinese General Chamber of Business Mrs Jia Hua Li Assistant Ground Researcher, Australian Chinese General Chamber of Business

Information Translation

Mr Bin Bin Yin BBus, MAcc Assistant Executive, Australian Chinese General Chamber of Business Mrs Can Can Ye BBus, MAcc Assistant Executive, Australian Chinese General Chamber of Business

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Contents

Contents ................................................................................................................................................. iv

Executive Summary ............................................................................................................................ v

Introduction ........................................................................................................................................... 1

Mainland China market demand of crocodile meat .......................................................................... 3

Chinese consumers’ views on crocodile meat .................................................................................. 3 Consumption and cooking ................................................................................................................ 3

Chinese supply and demand analysis for crocodile meat .................................................................. 5

Overview ........................................................................................................................................... 5 Chinese domestic supply of crocodile meat ...................................................................................... 5 Foreign imports of crocodile meat ................................................................................................... 6 US alligator meat vs Australian crocodile meat .............................................................................. 8

Analysis of mainland China crocodile meat market sales channels ................................................. 9

Wholesale markets ............................................................................................................................ 9 Retail markets ................................................................................................................................... 9 Restaurants ..................................................................................................................................... 11

Mainland China's market price of crocodile meat .......................................................................... 12

Opportunity analysis: Australian crocodile meat entry into China’s market .............................. 13

Chinese consumers’ impression of Australian products ................................................................ 13 Problems to consider when Chinese consumers buy crocodile meat ............................................. 13

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Executive Summary

The Australian Chinese General Chamber of Business in partnership with the Australian crocodile industry, primarily located in Queensland and the Northern Territory, are working towards the establishment of a protocol agreement between Australia and China over the export sale of Australian crocodile meat.

This market research study into China's crocodile market was conducted by the Australian Chinese General Chamber of Business. The report focuses primarily on China's largest crocodile market, that which is located in Guangzhou and Shenzhen, in southern China.

In order to conduct the research to compile this study, the Australian Chinese General Chamber of Business sent Mrs Crystal Deng, the organisation's chief of staff to southern China in September 2010. She was assisted on the ground by Ms Zhi Ren Deng, a local Chinese journalist, and Mrs Jia Hua Li, the Chamber's representative in Guangzhou.

This report investigates China's market supply breakdown of crocodile meat, from both domestic and imported sources. This is followed by an analysis of imported meat from individual exporting countries, and how Chinese consumers view imported meat.

A detailed report on China's domestic crocodile farming industry is also outlined, including a briefing on China's wholesale and retail markets.

An in-depth analysis is made on Chinese consumers’ behaviour when shopping for and eating crocodile meat, and how they view crocodile meat in general.

This research also examines the possible market reaction of Chinese consumers towards Australian crocodile meat imports in the future, by looking at their general view of the Australian meat products that are already being imported into the country.

Lastly, the report assesses whether US alligator meat imports (since the beginning of 2009) could become a potential competitor that could rival the future export of Australian crocodile meat into China.

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Introduction

A number of factors have driven the popular support of Chinese consumers towards consuming crocodile meat, ranging from traditional medicinal benefits and nutritional qualities of the product, to recent outbreaks of bird flu and mad cow disease that forced Chinese consumers to seek alternative meat sources.

Currently, China's crocodile meat market composition consists of 60% domestically farmed crocodiles and 40% imported from overseas. Of the imported crocodile meat market, 45% is from Thailand, 37.5% from Indonesia and 17.5% from the USA.

With cheaper imports from Thailand (Aus$5.16 to Aus$6.07 per kg) and Vietnam (Aus$5.30 per kg) and the expanding Chinese domestic crocodile industry, China's growing middle class is able to afford a once expensive meat product that was only within reach of the wealthy. Cheaper crocodile meat of course comes at a price, and Chinese consumers have often questioned whether the meat sold is derived from the black market and thereby has skipped quarantine and customs checks.

More expensive alligator meat is available on the Chinese market from the USA (Aus$4.53 per 500 g), and it could be seen as a potential rival against the future importation of Australian crocodile meat due to branding reliability (a product from the USA). Being a product from a developed country, US alligator meat will have marketing advantages in China; but upon study, the actual product itself, exported US alligator meat, has critical disadvantages compared to Australian crocodile meat products.

According to information from the Alligator Advisory Council (representing the largest US alligator-farming state of Louisiana), American alligators are exported at lengths of 0.90 to 1.52 m; this is less than the 1.7 to 1.8 m length of Australian crocodiles that are exported. This means that alligators from the USA have less meat on their carcasses compared to Australian exported crocodiles, thus giving Australian crocodiles considerable marketing and consumer-satisfaction advantages in China.

The US alligator industry is also recovering from the global economic crisis, where alligator-farming states such as Louisiana and Florida were forced in 2009 to adopt a policy of ‘take the best and leave the rest’, which has dramatically reduced its alligator population.

Currently, crocodile products sold in China are available through a number of channels such as local meat markets, supermarkets and seafood restaurants. If Australian crocodile meat is sold in China, the meat being an Australian product would most likely be classed as a premium product and sold only at supermarkets and seafood restaurants.

While supermarkets traditionally sell frozen/chilled crocodile meat (Aus$7.54 to Aus$12.07 per 500 g), there is a growing number of retailers who have begun housing live crocodiles in cages and tanks to be sold to consumers. While this move by supermarkets aims to offer fresh meat products to customers, there has been some negative backlash from the public by labeling the ‘on the spot kill’ approach as inhumane and cruel.

Seafood restaurants are also purchasing crocodile meat for their diners, as a growing number of customers perceive the meat to be full of nutrition and scarce. From information provided by two seafood restaurants in Guangzhou, crocodile meat dishes cost between Aus$12.07 to Aus$30.20 per 500 g with 20 to 30 kg sold on most days.

On the other hand, local meat markets sell crocodile meat at a relatively cheap price as most meat crocodiles are either domestically farmed or imported from southeast Asia. While these markets are a popular choice for consumers, there is a high risk that individuals would be making a purchase of

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black market crocodile meat – an item that is likely to contain parasites or dangerous levels of bacteria.

The consumer behaviour of the Chinese includes their choice of purchasing crocodile limbs and feet for medicinal soup use and tail meat for steamed or stir-fry style cooking. Traditional Chinese generally believe that frequent consumption of crocodile meat will help improve longevity and skin condition and prevent pathogenic diseases. In addition, the Chinese believe crocodile meat can help relieve asthma – a health problem that affects over 30 million people in China.

Overall, Australian crocodile meat products would be positively received in China, based on the Chinese perception of Australian exported goods as being reliable and of high quality. In particular, Australian agricultural products are already exported to China and consumers view Australian food products to be natural, organic and free of dangerous chemicals.

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Mainland China market demand of crocodile meat Chinese consumers’ views on crocodile meat

The epidemics of mad cow disease, foot-and-mouth disease (FMD), bird flu and other animal diseases have resulted in many Chinese consumers (especially those residents in cities with spending power) becoming cautious of beef, pork, and even chicken. For this reason, many domestic meat suppliers are searching for new meat sources. One such alternative is crocodile meat, as it is rich in nutrition.

Crocodile is considered by the Chinese as an animal of longevity that is rarely ill, and it is the only animal on the planet that is cancer-proof. Its life is much longer than the tortoise and turtle which are also known for their longevity, thus making crocodile meat an attractive product for Chinese consumers.

Crocodile meat also contains an optimised nucleic acid in vivo which is not only nutritious, but also has high medicinal value. The classical Chinese medicine ‘Bible’, The Compendium of Materia Medica, recorded: “Crocodile meat can strengthen the middle burner and replenish Qi (Bu Zhong Yi Qi) and has the main effect of eliminating pathogenic diseases (Qu Shi Qu Xie), and helping improve skin condition”.

An increasing number of Chinese have chosen crocodile meat as an alternative to beef and pork, as it is richer in protein, unsaturated fatty acids, vitamins and trace elements than either pork or beef.

According to nutrition experts, crocodile is full of treasures: it can moisten the lung, strengthen the body, replenish Qi, strengthen bones and muscles, and eliminate pathogenic factors if people eat it more often. It also helps in the treatment of coughs, asthma, rheumatism, anemia, diabetes, and cancer etc. Secondly, crocodile meat tastes good as it has the special tastes of both land-based animals and fresh aquatic animals combined. It can be used to cook a variety of dishes, thus making crocodile meat extremely popular amongst the public, where crocodile is also known by the Chinese as the 'feast treasure'.

Consumption and cooking

Dried crocodile meat

Mainly in southern China (places such as Guangzhou, Shenzhen and Hong Kong), Chinese physicians will include dried crocodile meat in their treatment of asthma suffers.

This medical practice is widespread throughout southeast Asia. Tibetan medicine industry expert, Mr Zhong Yu introduced that there were records of ancient medical books in China indicating that crocodile meat can cure asthma. This medical theory is also supported by ancient prescriptions from Thai herbalists; even today Thai asthma patients use crocodile meat and the curative effect is optimistic.

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Asthma is on the rise worldwide. According to a World Health Organisation (WHO) survey, asthma is recognised by the United Nations as a disease as there are over 615 million asthma patients around the world. In China, there are over 30 million asthma patients, mainly children and elderly people. Child morbidity has been increasing each year.

Fresh crocodile meat

Fresh crocodile meat is classified as lean meat, and it is traditionally recommended by Chinese herbalists to be used to make soup or dishes once or twice per week. In the areas of Guangzhou, Shenzhen and other southern areas of China, local residents often make crocodile meat soup or combine it with traditional Chinese medicine to treat coughs and asthma.

In the days leading up to the change of season, crocodile meat soup is traditionally viewed by the Chinese to help children and the elderly ease their airways and other cold symptoms. Regular consumption of crocodile meat soup is helpful with replenishing Qi and strengthening the immune system in order to reduce the risk of getting colds, bronchitis or other diseases.

The methods of cooking crocodile meat are varied. Individuals can fry, steam or braise it. Examples are Hong Men crocodile belly and steamed crocodile pieces which are both very popular dishes, especially in winter (refer to Photo 1).

Photo 1. Chinese crocodile dishes

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Chinese supply and demand analysis for crocodile meat

Overview

Currently, 40% of Chinese commercial use of crocodile meat is sourced from overseas (refer to Graph 1), with recent studies showing that 82% of the world's crocodile meat is being sold to markets in China, Hong Kong and Taiwan.

The large importation of crocodile meat to China is largely due to a growing middle class population that is willing to spend on expensive products, including crocodile. Estimates by the Guangzhou distribution industry are that over 100,000 crocodiles are consumed by the south Chinese population each year.

With the increase in domestic demand, local Chinese farmers have begun massive breeding programs; domestic product currently meets 60% of China's crocodile meat market demand.

Chinese who want to sell crocodile meat are required to undergo rigorous examination in order to obtain a special exotic animal sales permit from the Forestry Department.

Chinese domestic supply of crocodile meat

Currently, farm breeding of crocodile is growing in China. Provinces such Guangdong, Shanghai, Guangxi and Hubei have established farms, with foreign expert assistance having been introduced to develop the local farm breeding processes.

While crocodiles in China are protected under the Convention of International Trade of Endangered Species (CITES), according to the Chinese laws, only crocodile meat which has been approved by the Forestry Department, having obtained a ‘Water Management and Utilization of Wild Animal Protection Permit’ from the Fishery Management Bureau at the provincial level and a Quarantine Permit from the Quarantine Authority, can be sold.

At present there are approximately 30 crocodile farms within the province of Guangdong alone, while the overall Chinese farm production of crocodile meat fills 60% of China's market demand.

Beyond the high economic value of crocodile meat and skin, a number of Chinese crocodile farms are also becoming tourist crocodile parks, in order to spread public awareness of crocodile products and increase profit margins through tourist visits. These parks intend to educate the public in regards to crocodile egg hatching, growth, and mating habits. There are also crocodile feeding shows on offer to the visiting public.

An example of the recent growth of crocodile farms adopting a duel component (to include being a tourist park) is the Guangzhou Crocodile Park in south China. Located in Guangzhou Panyu Dashi west, it is near Xiangjiang Animal World with an area of 2,000 acres. The park opened in 2004 and is an integrated theme park with crocodile watching, science education, ecological farms, and all kinds of animal performances. It is the world’s largest crocodile farm, with nearly 10 million crocodiles and accounting for 70% of the total crocodile population in China.

As the largest crocodile breeding base in China, Guangzhou Crocodile Park does not sell crocodile meat to meat markets or supermarkets. It exclusively sells to the Chime Long Hotel, Xiangjiang Hotel and Four Seas International House and a few other restaurants alongside the Yingbin Road.

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Foreign imports of crocodile meat

Crocodiles imported into China currently represent 40% of the Chinese market, of which Thailand (18%), Indonesia (15%) and the US (7%) present the country's overall market (refer to Graph 2). Vietnamese crocodile has no official data representation within the Chinese market as the majority of products sold are via the black market.

While southeast Asian countries are the leading suppliers of imported crocodile meat in China, in this report we mainly focus on the analysis of supply from Thailand, Vietnam and the United States.

It should be noted that as of 2009, China, Hong Kong and Taiwan import 82% of all world crocodile meat production1.

Thailand

Thailand’s Fisheries Department first indicated in 2005 that Thailand wished to export live crocodiles to China.

Thailand’s crocodile farming industry is well developed, and the quality and quantity is among the best in Asia. Currently, local Thai crocodile farms can produce over 100,000 crocodiles a year for the global market, of which it predominately exports to the European Union (EU).

The EU market price for fresh Thai crocodile meat is approximately 600 baht per kg (135 yuan per kg, Aus$20.40 per kg); and dried crocodile meat is sold to the EU at 3,000 baht per kg (669 yuan per kg, Aus$101 per kg)2.

Vietnam

The Vietnamese newspaper Saigon Liberation (8 August 2008) reported that the Saigon crocodile village ‘Cun Hua Jia’ Crocodile Company in partnership with ‘CUN HUA JIA’ Crocodile Company and Chun Lu Corporation signed a contract with China to export 7,000 live crocodiles to China.

Manager of the company, Mr Ong Shi Hing said that the crocodile export price was reasonable, with an average of about 10 million VND per kg (35 yuan per kg, Aus$5.30 per kg).

Unskilled labour cost, the construction of basic facilities along Vietnam's Mekong Delta and the Vietnamese Government's lack of will to enforce permits and licensing laws are largely responsible for Vietnam's ability to sell crocodiles at a significant lower cost.

In addition, Vietnamese crocodiles are only farmed within a space of two to three years before being sold; this reduces operational expenses considerably compared to crocodiles from Australia and alligators from the USA.

1 Alligator Advisory Council, Louisiana, USA. 2 Modern Fisheries Information – Volume 20, no 8.

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While Chinese importers must obtain the relevant import certificates or the ‘Breeding License’ from crocodile farms in order to legally distribute the product on the open market, Vietnamese crocodiles are often smuggled across the southern Chinese borders into Guangxi, before being shipped to Guangdong.

Having bypassed quarantine and customs inspection and administrative fees before being sold on the black market, the retail cost of these crocodiles to Chinese consumers can often be much lower than the cost of legally sold crocodiles. This of course raises consumer concern over food safety from black market products, which risk contamination from parasites or deadly bacteria.

USA

American crocodile (alligator) meat has been sold on a large scale in Guangzhou since 2009, with retail prices falling as low as 30 yuan per 500 g (Aus$4.53 per 500 g).

Different from the products imported from Thailand and Vietnam, American alligator meat has been processed and packed in large vacuum bags and then frozen. These products are mainly sold to high-end restaurants in China.

China crocodile market breakdown data

Graph 1: Domestic vs imported supply

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Graph 2: Breakdown of imported supply (does not include imports from Vietnam due to black market)

US alligator meat vs Australian crocodile meat

While both the USA and Australia are developed nations with strict guidelines over the breeding and sale of crocodile/alligator meat to domestic and foreign markets, there should be no cause for any immediate concern over possible future market competition after comparing both countries' products.

Based on information collected from the Louisiana Alligator Advisory Council (a state that is home to the largest crocodile industry in the USA), it is noted that its industry is still struggling to recover from the global financial crisis.

When the Louisiana skin export fell by 75% in the fall (northern hemisphere) 2009 season, farmers were forced to adopt a policy of ‘take the best and leave the rest’ which significantly reduced the State's farmed crocodile population in order to cut operational cost of farms.

Alligator carcasses exported from Louisiana have been stated by the council to be between three to five feet long (0.91 to 1.52 m), this is smaller in comparison to Australian export crocodiles which are on average between 1.7 to 1.8 m in length. Size in these products matters, as the larger crocodiles tend to have more meat – a quality that is looked on favourably by the Chinese market.

It can be established that the Australian crocodile industry produces better export quality crocodile compared to its US counterpart.

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Analysis of mainland China crocodile meat market sales channels

Wholesale markets

In Guangzhou, the largest crocodile consumer market in China, the product is widely sold at the local wholesale fish market where at least 10 market stalls sell live or freshly slaughtered crocodiles. Each of the stalls has a permit card issued by the Guangdong Marine Fisheries Services (the Sea Fisheries Board). While each of the stalls does have a government permit to sell crocodiles, some stalls are also selling crocodiles illegally smuggled into the country.

According to importing industry sources, crocodiles bred from domestic Chinese farms or legally imported into China will have leather that can be characterised under light as having no marks on the mouth of the crocodile, marks that can be caused by wear and tear during transport. If a crocodile’s snout and limbs have obvious injuries, it is very likely to have come through illegal smuggling sources.

The wholesale price for legally permitted crocodile meat is between 30 to 65 yuan per 500 g (Aus$4.54 to Aus$9.82 per 500 g).

Retail markets

There are over 400 meat markets and 60 supermarkets in Guangzhou alone3.

Photo 2. Crocodiles slaughtered at meat market

3 City Commercial Bureau of Statistics, Guangzhou.

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Meat markets

With crocodile meat becoming widely acceptable to the Chinese public, more meat markets are selling crocodiles with a number of stalls offering to slaughter the animal on the spot in order to market the freshness of their product.

In the situation of a 'live kill', the crocodile is cut into three sections (refer to Photo 2) and often placed on ice for the public to see. This freshly slaughtered crocodile meat is generally sold at 45 to 55 yuan per 500 g (Aus$6.8 to Aus$8.3 per 500 g). The crocodile head is the cheapest, while the claws, limbs and crocodile tail are the most expensive.

While a large segment of the public see crowded meat markets as a health issue, in light of SARS (severe acute respiratory syndrome) and bird flu, there is also a rising number of consumers who see the 'live killing' of crocodiles to be inhumane.

Supermarkets

Most of the supermarkets set up in Guangzhou, such as, Jusco, Pokka, Hong Cheng, Taiwan Price and Vanguard are selling fresh food including crocodile meat. They mainly sell pieces of chilled crocodile to consumers (refer to Photo 3).

However, there are a few supermarkets that have large cages or fish tanks where live crocodiles are kept, but this requires a licence from the Forestry Department in order for the crocodile to be legally sold.

While licences ensure that the animal is of high quality and healthy, the retail price is considerably higher compared to those animals sold in the meat markets, with prices fetching between 50 to 80 yuan per 500g (Aus$7.54 to Aus$12.07 per 500 g).

Photo 3. Crocodile on ice in a Chinese supermarket

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Restaurants

Crocodile meat dishes are becoming the latest trend in major cities, offered by a number of seafood restaurants (refer to Photo 4).

Photo 4. Stir-fried crocodile meat in restaurants

A number of consumers have indicated that during banquets with friends and family they would order crocodile because it is novel and the meat provides a high nutritional value.

After surveying Shenzhen Tian Tian Harbor Restaurant and Hai Shang Hai seafood restaurant, it was found that prices sold at these premises averaged between 80 to 200 yuan per 500 g (Aus$12.07 to Aus$30.20 per 500 g).

Restaurateurs have said that they first tried to add crocodile to the menu to add variety. To their surprise, the sales were positive largely due to the public's knowledge that the meat has high nutritional values and the public perception that it is limited in supply. On most days, the seafood restaurants are able to sell between 20 to 30kg of crocodile meat to their customers.

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Mainland China's market price of crocodile meat Compared with crocodile farms in southeast Asia, Chinese farms are smaller-scale, have a higher operational cost and are manually operative. Southeast Asia, the USA and other countries have been farming crocodile (or alligator) for a longer period of time, and are often assisted by modern technology use and a larger scale of operation that allows them to greatly reduce costs.

At present, China's domestic wholesale price of domestic crocodile meat is RMB40 to 46 per kg (Aus$6.07 to Aus$7 per kg), and the retail price is RMB50 to 58 per kg (Aus$7.6 to Aus$8.80 per kg).

Thailand's wholesale price of Siamese crocodile is RMB34 to 40 per kg (Aus$5.16 to Aus$6.07 per kg), and the retail price is RMB45 to 52 per kg (Aus$6.83 to Aus$7.90 per kg).

While the price of crocodile head is cheaper at 22 yuan per 500 g (Aus$3.34 per 500 g), crocodile claws and tail are considerably more expensive.

Also refer to section 4.3.

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Opportunity analysis: Australian crocodile meat entry into China’s market

Chinese consumers’ impression of Australian products

Australian agricultural exports are traditionally recognised by Chinese consumers to be pollution-free, of superior quality, with a healthy image, innovative, and produced by use of technology and advanced packaging technology.

Due to the high Chinese consumer regard for Australian products, there is also an accompanying significant degree of trust in Australian-made exports.

In addition, Chinese consumers have a general perception that Australian agricultural products are 100% natural and free of hormones and dangerous chemicals that are of considerable concern for Chinese consumers – often even in the case of their own domestically produced food products.

With Australian food products including cereals, beef and mutton, dairy products, seafood, fruits and vegetables, bread products, olive oil, wine and other drinks having successfully established a footing within the premium product market, the Australia brand name would help considerably with the marketing of future Australian crocodile meat products in China.

Problems to consider when Chinese consumers buy crocodile meat

As China continues to face rapid economic growth, the food requirement by the Chinese population is ever more focused on both food quality and quantity. A product focus on ‘natural, green, organic’ is also a significant purchasing factor.

While crocodile meat has been traditionally considered to be expensive, the growing middle class population and the availability of cheaper quality and priced crocodile meat has seen crocodile meat being used at home by ordinary families.

However, in considering the sources where crocodiles are bred and sold, consumers still have some reservations over the product's safety for human consumption. Where crocodile meat is sourced from the black market or from an unknown origin, Chinese consumers generally react with suspicion, due to fears of bacteria and parasites.

In situations where crocodiles are sold at the local meat market, Chinese consumers are concerned over the quality of the meat when left in the open to flies, even though the crocodiles are often slaughtered daily and are placed on ice.

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Cover photo: Stir-fried crocodile meat

The Australian Chinese General Chamber of Business in partnership with the Australian crocodile industry, primarily located in Queensland and the Northern Territory, are working towards the establishment of a protocol agreement between Australia and China over the export sale of Australian crocodile meat.

This report investigates China’s market supply breakdown of crocodile meat from both domestic and imported sources. This is followed by an analysis of imported meat from individual exporting countries and how Chinese consumers view imported meat. The report focuses primarily on China’s largest crocodile market, that which is located in Guangzhou and Shenzhen, in southern China.

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Most of the information we produce can be downloaded for free or purchased from our website <www.rirdc.gov.au>.

RIRDC books can also be purchased by phoning 1300 634 313 for a local call fee.

China: Crocodile Meat Market Research

Travel Reportby Mrs Crystal Deng,Chiu-Hing Chan, Ms Zhi Ren Deng and Mrs Jia Hua Li

Publication No. 11/008

www.rirdc.gov.au

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