An overview of sheep and goat marketing
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An overview of sheep and goat marketing

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This presentation was given at the Buckeye Shepherd's Symposium in December 2011.

This presentation was given at the Buckeye Shepherd's Symposium in December 2011.

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An overview of sheep and goat marketing An overview of sheep and goat marketing Presentation Transcript

  • Susan Schoenian Sheep & Goat Specialist W. Maryland Research & Education Center sschoen@umd.edu – www.sheepandgoat.com
  • However, there are pockets of sustained growth: Northeast and Southeast.
  • Most of the growth in sheep numbers in the Southeast is attributed to hair sheep.
  • The ethnic markets tend to favor lighter weight lambs.
  • The meat goat and sheep industries are closely linked.
  • But it is significantly higher among people of certain ethnic groups and in certain geographical locations. 1. 2. 3.25 lbs1 (at home) 2.37 lbs1 (away from home) 1 Pew Research Center
  • Yet, they comprise only 35 percent of the population.
  • 1. General population growth replacement + immigration 2. Changing composition of population (by 2050)1: 1. White: 67 → 47 percent 2. Hispanic: 14 → 29 percent 3. Asian: 5 → 9 percent 4. Black: 13 ↔13 percent 2 Pew Research Center
  • Among some populations 1) More likely to eat lamb and goat. 2) Bigger families. 3) Spend more of their disposable income on food. 4) Income levels are increasing faster than the average American. 5) Less price sensitive. 6) Demand is more consistent across income levels.
  • Muslim, Jewish, and Christian/Orthodox populations consume lamb (sometimes goat) during specific times of the year in observation of their religion.
  • But are they profitable for all segments of the industry (probably not) and can they be sustained (probably not).
  • However, it is estimated that 1.3 million head are channeled into nontraditional lamb markets.
  • U.S. LAMB CROP 2004-2008 3.6 million head Federallyinspected slaughter 2.5 million head Ethnic markets 500,000 head Traditional market sector 2 million head Non-traditional markets 1.3 million head Ethnic market via sale barns 300,000 head Direct marketed to consumers at farm gate 1 million head There is a statistical difference between the lamb crop and federally-inspected lamb slaughter (2004-2008).
  • 1) Food safety concerns regarding onfarm slaughter 2) Higher slaughter costs 1) Light weight lambs 2) Religious slaughter 3) Reduced supply of lambs 3) Negative effect on industry’s infrastructure 1) Reduced supply of lambs 2) High cost of feeder lambs
  • U.S. Kid Crop Inspected slaughter 827,300 head Federallyinspected slaughter ~620,000 head State inspected slaughter ~207,300 head Non-inspected slaughter Custom exempt ? On-farm ? How many goats are unaccounted for?
  • 1) 2) 3) 4) Health Convenience Indulgence “Going Green”
  • Nontraditional Lamb Marketing in the United States: Characteristics and Marketing Strategies, February 2010. Changes in the Sheep Industry in the United States: Making the Transition from Tradition, September 2008. If you keep doing what you're doing, you'll keep getting what you're getting. …Unknown
  • Marketing lamb cuts 18 On-farm slaughter 12 Farmer’s markets 10
  • Susan Schoenian Sheep & Goat Specialist University of Maryland Extension sschoen@umd.edu – www.sheepandgoat.com
  • Ohio USA 11,542.645 307,006,550 % White, Non-Hispanic 84.7 79.6 % Hispanic/Latino 2.8 15.8 % Black/African-American 12.1 12.9 % Asian 1.6 4.6 % American Indian 0.3 1.0 % foreign born 2000 3.0 11.1 $21,003 $21,857 $48,011 $52,029 Population Per capita income 1999 Median household income 2008 Source: http://quickfacts.census.gov/qfd/states/39000.html
  •  48 Mosques listed on http://islamicvalley.com Mosque in Toledo, Ohio
  • Susan Schoenian Sheep & Goat Specialist University of Maryland Extension sschoen@umd.edu – www.sheepandgoat.com
  • 1. Direct sales – sales of lambs and goats directly to packers 2. Direct marketing – selling lambs and goats directly to the general public or niche markets     Freezer market Ethnic/religious markets Retail food stores Restaurants
  •  Dealing in the cash market  Perceived price premium  Convenience of repeat business
  •  Probably the most common method of direct marketing.  Sheep and goats can be slaughtered at USDA, stateinspected, or custom-exempt plant.  No labeling is required.
  •  Fresh and local food  Challenges   All cuts Year-round supply
  •  10 percent of producers sell lamb, mutton, or goat at farmers’ markets.
  •  Sheep and goats must be processed in a USDA-inspected facility.  Product must be labeled at facility.  Must have proper storage for meat.  Must have meat handler’s license.
  •  Top three reasons for not purchasing meat and/or poultry at a farmers’ market:  Cost 86% were willing to pay more for local meat and poultry at a farmers’ market  Convenience  Food safety concerns Source: Meat and Poultry Buying at Farmers’ Markets: A survey of shoppers at four markets in Oregon
  •  1970’s Japan 1985 U.S. Today, almost 1,500 CSA’s  A group of people who share in both the production and consumption of agricultural output.  Most CSA farms are organic, diverse in the variety of production, and focused on fruits and/or vegetables.  Some CSA farms provide meat and dairy products to their members for an additional fee.  $500-$800 per share Selling “shares” of meat.
  •  USDA certification     Third party certification     Grass-fed Naturally-raised Organic Grass-fed Sustainably-produced Humanely-raised Welfare-certified Other    Grain-fed Pasture-raised Local consumer driven = science-based
  •  Grass-fed 100% forage diet  No grain or grain by-products  Temporary confinement allowed   Naturally-raised Vaccines okay  No antibiotics  No growth promotants  Coccidiostats okay, but must be on label.   Organic       No antibiotics No growth promotants No anthelmintics* No coccidiostats Vaccines okay Feed and bedding organic consumer driven = science-based
  •  American Grassfed Association-certified 100% forage diet  No temporary confinement  No antibiotics  No growth promotants   Food Alliance Certified      No antibiotics No growth promotants No GMO’s Protect soil and water quality Humane treatment consumer driven = science-based
  •   ? Certified humane-raised and handled Animal Welfare Approved® American humane certified consumer driven = science-based
  •  (I) The locality or region in which the final product is marketed, so that the total distance that the product is transported is less than 400 miles from the origin of the product; or  (II) the State in which the product is produced. Source: H.R.2419
  •  Grain-fed  Pasture-raised  No synthetic hormones  No sub-therapeutic antibiotics  No animal by-products fed  Breed identity
  •       Hormone-free All meat has hormones in it. More conjugated linoleic acid (CLA) Unless you have your meat tested. Better ratio of omega-3: omega 6 fatty acids Unless you have your meat tested. Not implanted with hormones (goats) There is no implant FDA-approved for goats. No ruminant meat and bone meal fed it is not legal to feed ruminant meat and bone meal to other ruminants. Antibiotic-free If you use coccidiostats.
  • 1) Islam is fastest growing religion in the U.S. 2) Annual growth is 6% vs. 0.9% for the U.S. 3) Eight million Muslims in America; 1 million more in Canada. 4) Same size community as Hispanics were 25 years ago 5) American Muslims are younger, better educated, and more affluent than the average American.
  • 1) Subcultures from over 20 different countries in Central and South America, the Caribbean and Spain. 2) Fastest growing minority group. 3) 49% live in Texas or California. 4) The Latin wave is bigger than the baby boomer generation. 5) 76 percent increase in buying power since 1990. 6) Bigger families.