THE number of kangaroo harvester chillers in NSW has declined dramatically since 2009, which Kangaroo Industry Association Australia executive officer John Kelly says is due to a combination of poor access to export markets and over regulation.
Chillers are privately owned refrigerated depots where harvesters sell their kangaroo carcases, which are then on sold to processors.
Figures from the Office of Environment and Heritage (OEH), which regulate all aspects of kangaroo harvesting, show there were 246 chillers in 2009 across NSW, but just 75 today.
Mr Kelly said in 2009 Australia had an established market in Russia, but since it was lost in 2008 no market has emerged to fill its place.
"We always knew we were exposed to the possibility of the collapse of the Russian market, but I can't say it's solely Russia that's been responsible for the decline in the number of chillers; it's the failure to gain access to new alternatives," Mr Kelly said.
"We've been urging the federal government to work hard to access new large volume markets, but it's yet to come to fruition."
He said industry over-regulation could also explain the number of closures, particularly in the past five years.
Currently, chiller owners are required to pay registration fees to the OEH of $390 a year and licensing fees to the NSW Food Authority, which ranges from $435 to $3926 (depending on the number of food handlers the chiller employs).
"We are one of most tightly regulated food industries in the country and there's probably a good argument to be made that it is over subscribed in fees," Mr Kelly said.
Brian Tink of Murrumbar Pet Meats, Dubbo, receives more than 400 kangaroos a week to his chiller, which he processes on site.
Prior to the drought in 2000 he owned 22 chillers across NSW and Queensland, and processed 2500 kangaroo carcases a week.
While he has never accepted kangaroos for human consumption, he said licensing and compliance requirements were similar.
"We don't need to pay double the registration fees, it's nonsense," Mr Tink said.
"Why can't the same inspector look at the hygiene and the kangaroos?"
He said while the human consumption industry remained uncertain, use of kangaroo meat in the pet food industry was increasing.