Emu oil poised for flight

13 May 2006 10:56  [Source: ICB Americas]

EMU OIL is winging its way back to the health and beauty markets. Recent research in emu oil’s transdermal delivery properties has sparked new interest within the cosmetic and pharmaceutical industries. The oil, which is rendered from the fat of the emu bird, is also well known for its anti-inflammatory and moisturizing benefits.

“We are seeing demand for emu fat jumping ahead of the supply for the 2006–2007 year,” says Katy Binford of Tenn.-based LB Processors LLC, an emu oil producer since 1995. “There has been more growth in cosmetic-type products than pharmaceuticals as more companies use the oil as a delivery system for topical applications in cosmetics and creams. But we are also seeing several pharmaceutical companies asking for samples and quotes over the end of 2005 and 2006.”

The company processed 41.7 million pounds of emu fat and oil last year, adds Binford. This year, LB has already manufactured around 17,000 pounds of fat and oil.

Around 21,000 gallons of emu oil were refined in the US last year, according to the American Emu Association (AEA). This year’s supply is estimated at over 26,000 gallons. The US currently has around six major emu oil processors, estimates AEA.

“The US emu oil market was holding relatively steady for several years, with a significant increase in domestic sales for the past one to two years,” notes Myra Charleston, AEA director. “The global market, however, is opening up to US wholesalers/retailers. Sales overseas from our members have doubled or even tripled each year,” she adds.

Supply of the oil is said to be in tandem with demand, with growth steady at around 25% per year, notes Larry Moroni, president of BioChemica International, which supplies emu oil. “Despite its animal derivation, emu oil will continue to grow in popularity. There seems to be a segment of the cosmetic market that will continue to use it due to its tremendous efficacy as a moisturizer and penetration enhancer, and that emu oil closely mimics the skin’s own intrinsic lipid barrier.”

One challenge limiting the industry’s growth potential is the lack of funding for FDA-approved laboratory testing proving emu oil’s beneficial qualities. AEA says the industry is currently seeking additional universities to partner with for human trials.

The industry has also been plagued by adulterated oils being sold in the market. AEA has since developed trade rules and certification program where all emu oils must meet certain standards. In the US, three grades of emu oil are accepted: crude, once refined, and fully refined.

The average price for refined emu oil is placed around $38 to $40 per pound. For bulk pricing, a 55-gallon drum is quoted at $20 to $22 per pound.

Aside from the oil, emu is processed for its meat and hide. The birds are being raised as livestock on over 5,000 US farms, according to the Department of Agriculture. Emus originally came from Australia.

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