EMU farming has had a roller-coaster ride since bursting on to the rural scene in the 1980s.

In the third part of a "new" farming series, DAVID McKENZIE looks at the industry today and some of those still in it.

As a native bird and national symbol, the emu is part of Australia's identity.

But the large flightless bird has also become part of the farming landscape.

Its oil is the big attraction, highly valued for its health and cosmetic properties.

Emu meat also offers a low-fat, high-protein food, while emu skin makes high-quality leather.

First farmed by Aborigines in Western Australia, emus attracted more general farming interest in the 1980s and there was soon a boom under way.

"It got very big very quickly," Emu Producers' Association of Victoria president Kathy Long said.

"People were looking for something different and emus are great animals to farm."

At its peak in the mid-1990s, the industry boasted up to 2000 farmers - with 1000 in Victoria - but then came the bust.

"Production had run well ahead of the market," Kathy said.

"It was a classic 'new industry' problem."

Persistent drought since the turn of the century has compounded the situation, pushing feed-grain prices through the roof.

There are now only about 40 licensed emu farmers nationally - 25 in Victoria - and most have been through the highs and lows.

But there's confidence the industry is starting to consolidate, with a lot of R&D and new product development under way.

Kathy and husband Jeff Long, who run an emu farm at Tragowel, south of Kerang, Victoria, entered the industry about 17 years ago.

Half their 260ha property, originally a sheep farm, is now turned over to emus, with 1.8m-high fences skirting the paddocks.

They still run 1000 sheep and agist ostriches on other parts of the property.

"Emus are hardy, soft-footed animals which are good for the soil," Jeff said.

"Their big earner is the oil, which is proving a real winner in treatments for arthritis, joint pains and skin irritations."

Jeff sends his emus to an abattoir in Myrtleford - one of two in Victoria - which processes them for the meat and extracts and returns the emu fat to him.

He sends the fat for rendering at the Baramultech Australia plant at Castlemaine, Victoria, for a farm-gate return of $30-45 a litre.

"The average-size bird produces 8-9kg of fat, and I get just under a litre of oil from a kg of fat," Jeff said.

Another long-time industry player is Terry O'Keefe, who runs Blue Gum Emu Products at Castlemaine.

Terry started up in 1987 and produces emu oil capsules for arthritis and dermatitis, as well as body products such as soap, cream, moisturisers, shampoos, conditioners and after-shave.