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).

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.

Camel Milk Market Assessment 2016

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PROJECT SUMMARY

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Product Volume and Value

Country Production VolumeSomalia 914,957Kenya 464,159Mali 131,928Ethiopia 118,437Saudi Arabia 92,252Niger 89,526United Arab Emirates 39,248Eritrea 22,000China 15,000Algeria 11,700Djibouti 6,800Qatar 4,500Morocco 4,480Mongolia 3,700Libya 2,145Iraq 200Uzbekistan 191Russian Federation 27Other 133,668

Total 2,054,918

Source: FAOSTAT http://faostat3.fao.org/browse/Q/QL/E

The United Nations Food and Agriculture Organisation (FAO) does not yet record production of fresh camel milk in Australia or the US nor trade flows in whole fresh camel milk. Traditional producers of camel milk produce and consume the product locally. Production is generally a low-tech business and there is limited world trade in camel milk (FAO 2006).

Camel milk is a rapidly growing industry in the US. Product is sourced by both cultural consumers – US residents from traditional camel milk consuming countries and consumers attracted to the products health qualities. Production of camel milk in the US is hamstrung by a small naturalised domestic camel population, limited opportunities to import camels from countries with low levels of endemic disease and the high cost of importing disease free camels from places like Australia – around $25,000/head.

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)

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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 Known Camel Dairies

Production Assumptions (based on publicly available data)

Annual Milk Production 2016

Western Australia- Calamunnda Camels

Calamunnda has 5 to 10 milkers 6,000 l/year

Queensland- QCamel- Camel Milk Australia

QCamel has a herd of 60 camels with 20 milkersCMA no longer produces fresh camel milk

15,000 l/year

NSW- Muswellbrook

Muswellbrook has 11 camels, 5-6 milkers that were anticipated to produce 10 litres/day in 2015 3,500 l/year

Victoria- Camel Milk Victoria

CMV is approximately the same size as QCamel i.e. 60 head 15,000 l/year

South Australia- Humpalicious In 2015 Humpalicious has 6 milkers

3,500 l/year

Unknown production 7,000 l/yearAustralian 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

Domestic At the present time most Australian camel milk is sold on the domestic market and biosecurity concerns prevent the import of fresh product. The domestic market can be divided between consumers with a cultural preference for camel milk including Australians of Somali and Middle Eastern origin and Australians with a focus on camel milk’s health properties.

Health properties attributed to camel’s milk include capacity to alleviate food and seasonal allergies, usefulness in reducing insulin dependency and the treatment of diabetes, ease of digestion and assistance with gut allergies associated with the autism spectrum, Crohn’s Disease, ADD and ADHD. Camel milk is richer than cows’ milk in vitamin C, vitamin B, iron, calcium, magnesium and potassium. Fat is generally polyunsaturated with a high ratio of beneficial omega 3 to omega 6 (FAO http://www.fao.org/newsroom/EN/news/2006/1000275/index.html).

Export Australian camel milk dairies presently supply personal orders for fresh camel milk for customers in New Zealand and Singapore. Individual dairies are currently exploring the US market for fresh milk along with the potential of supplying powdered camel’s milk to the US for manufacture of infant formula. Consumers in the Middle East, India, US and Europe have all shown interest in increasing camel milk consumption (Phil Gee, Vice President Australian Camel Industry Association, www.stockjournal.com.au/story/3367478/camel-milk-potential-for-sa). The United Kingdom is also a potential market for high quality Australian camel milk (Lauren Brisbane, QCamel, pers. com July 2016).

Description of Supply Chains

The camel milk supply chain is relatively short but increasing in sophistication

Producers Camel milk producers are small enterprises where the average 2016 herd is between 6 and 60 animals, one third of the herd may be milking at any one time. Large scale enterprise are currently being planned with herd sizes in excess of 100 animals.

Product is sold in both pasteurised and unpasteurised form. Pasteurised product may be vacuum packed and frozen for wider retail distribution. To date camel milk has proved to be incompatible with UHT (Ultra High Temperature) treatment (FAO 2006). Some consumers believe there are additional health benefits in unpasteurised camel milk and product sold in this form must be clearly labelled ‘not fit for human consumption’. Industry reports that pasteurisation can be accomplished at differing temperatures and durations of heat exposure, differing combinations of temperature and exposure affect the quality of the camel milk and this is a priority for industry research.

Manufacturers Customers seeking fresh liquid camel’s milk often look to substitute camel milk based products in all their dairy needs. Consequently there is a ready Australian market for flavoured milk, yogurt, cheese, ice cream and camel milk based chocolate. Skill is required in working camel milk into these products and a small number of manufacturers are working with camel milk producers. Camels’ milk requires specific enzymes and skill to harden it into cheese (FAO 2006).

Distributors and Retailers 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.

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Promotion and Market DevelopmentIn the Australian market work is required to reposition camel milk as a health product. There is a current perception amongst some potential consumers that camel equates to feral and dirty. The popularity of the product in the US combined with existing research showing camel milk’s positive role in reducing the incidence and impact of major diseases provides a strong foundation for repositioning. Additional work is now proposed to provide a scientific evidence base to confirm camel milks’ benefits in relieving the symptoms of autism. New large scale camel dairies will need to invest to develop export supply chains for both fresh milk and processed powder as their production comes on line.

Coproduct PotentialIn addition to fresh milk, a camel milk dairy may also yield surplus male animals and cast-for-age females. While some cameleers may choose not to sell cast-for-age females pointing to their ongoing role in the matriarchal herd, a market does exist for camel meat, leather and oil. Wild caught camels are currently processed in a single abattoir in Peterborough South Australia (Lethbridge and Clarke 2016).

Value Adding Opportunities In addition to value adding camel milk into a range of dairy products (flavoured milk, yogurt, cheese and ice cream) camel milk is also used in the manufacture of cosmetics. Cosmetic products include camel milk soap, camel milk lotion with frankincense and myrrh, lip balm, skin moisturiser, sun protection cream, body butter, dog wash and laundry powders – see for instance Camel Milk Australia at https://www.camelmilkaustralia.com.au/. Camel dairies produce these products as a side line or when fresh milk sales are not possible.

Queensland’s Maleny Cheese has been supplied by QCamel and produced Australia’s only camel milk curd and cheese. However, the product proved too expensive to sustain. Muswellbrook Camel Milk produces a range of flavoured camel milks in 300 ml bottles and Humpalicious has a 350ml iced coffee offering.

It is possible to purchase overseas manufactured camel milk powder online and while some enthusiasts claim that heating and powdering could diminish its nutritive properties, the product is popular (See http://desertfarms.com/products/camel-milk-powder?gclid=CNOyyYX2zs0CFQokvQodHFAKiw).

Powdered camel milk could form the basis of infant formula targeting children with gut health issues. Australian camel milk dairies are considering the local manufacture of camel milk powder and infant formula. The products would find a ready market with capacity to pay in the US, Europe and parts of the Middle East.

The US Camel Milk Association promotes camel milk based kefir - a probiotic and an additional product that could be added to the Australian product range (http://www.camelmilkassociation.org/).

Alignment with trends Consumption of camels’ milk aligns with a major trend in diet based solutions to complex health issues especially those afflicting children. While more research is needed, camel milk consumption has been linked to improved health outcomes for conditions spanning food and seasonal allergies through to ADHD and autism. Products aligned to this type of health trend will see rapid growth in short term as consumers become aware of the product but a longer term plateau unless support is secured through scientific research and health professionals. Products aligned to this trend will find a ready market in wealthy western countries such as the US and Australia.

Camel milk consumption is also aligned to a trend toward consumption of traditional natural foods and an interest in cuisines from other cultures. Camel milk will find consumers amongst those who are culturally familiar with the product and consumption will increase in western countries as these groups increase in number and affluence.

Small scale camel milk production that provides ample opportunity for the calf to suckle is consistent with the growth in ethical food sourcing. The US Vegan Society has recently endorsed camel milk produced in this way. Ethical consumption is a major trend and is thought to be relevant to up to 10% of all food and natural fibre sales.

Competitor analysis Australian camel milk will need to compete with other alternative milks with health properties that differ from cows’ milk. These products include goat, sheep and mare milk as well as plant based alternatives such as soy, almond and coconut milk.

In addition Australian camel milk must compete with imported powdered camel milk and new sources of supply originating in the Middle East. For example a new large scale 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