Marketing Options for Goats
SUSAN SCHOENIAN (Shāy nē ŭn)
Sheep & Goat Specialist
Western Maryland Research & Education Cen...
Goat marketing realities
• Low per capita
consumption of meat.
• Specialized demand, mostly
“ethnic,” but is growing.
• Po...
Today’s topics
• Ethnic markets
• Goat slaughter options
• Grading
• Marketing options
What is an ethnic market?
• An ethnic market is a
group of consumers that
share a common cultural
background: race, color,...
North Carolina Maryland USA
Population (2012 est) 9,752,073 5,884,563 313,914,040
% White, Non-Hispanic 71.9 60.8 77.9
% H...
Tips for marketing to ethnic markets
• Identify target market(s)
• Learn their customs
• Know their holidays
• Find a way ...
Ethnic Calendar 2013-2017
Holiday 2013 2014 2015 2016 2017
Eid uh-Adha
Festival of the Sacrifice
Oct 15-18 Oct 4-7 Sept 23...
Slaughter options for goats
Inspection levels
1. Federal (USDA)
2. State
3. Local (custom-exempt)
4. On-farm
(owner vs. cu...
Federally-inspected (USDA) slaughter
• Most regulated.
• Must have HACCP plan.
• Includes pre and post-mortem
inspection o...
State-inspected slaughter
• Collaborative effort between
state and federal government.
• State regulations must be “at
lea...
Custom-exempt slaughter
• Slaughter facility is inspected,
but slaughter is exempt from
pre- and post-mortem
inspection of...
On-farm slaughter
By person who raised animal
• Permitted by USDA
• Consumption of meat limited to
farmer, family, and non...
Ethnic, religious, and ritual slaughter
1. Halal - Muslim
2. Kosher - Jewish
3. Other
• Religious slaughter is exempt
from...
Grading
• Putting like animals together.
• Allows animals to be comingled at
market place.
• Facilitates marketing by prov...
USDA Goat Grades
independent of breed, age, size, and fat cover (?)
Selection 1
• Superior
meat-type
conformation
Selectio...
• Learn how to read a
market report.
• If possible, visit market(s) to
determine accuracy of
market reporting.
• Use marke...
Grades can have a large influence on prices.
$40
$60
$80
$100
$120
$140
$160
$180
$200
11-Mar 25-Mar 8-Apr 22-Apr 6-May 20...
WHOLESALE
(commodity)
Local sale barn
Weekly sale
Special sale
Graded sale
Terminal sale
MIDDLEMAN
Broker, Dealer
Abattoir...
WHOLESALE
(whole carcass)
Consumer
Restaurant
Retail store
RETAIL
(meat, cuts)
Consumer
Farm store
Farmer’s market
CSA (de...
Auctions (sale barns, stockyards)
local, weekly, special, holiday, graded, holiday, regional, terminal
PROS
• Price discov...
Middleman
dealer, broker, buyer, abattoir, co-op, live market, direct marketer
PROS
• Price is known
ahead of time
• Can n...
Direct marketing
Live animal, whole carcass, wholesale or retail cuts
PROS
• Highest income: potential
for highest profit
...
Marketing tips
• Sell your goats at a profitable price;
know your costs of production and
breakeven price(s).
• Sell your ...
Thank you for your attention.
Susan Schoenian
University of Maryland Extension
www.sheepandgoat.com
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Goat Marketing Options

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Goat Marketing Options

  1. 1. Marketing Options for Goats SUSAN SCHOENIAN (Shāy nē ŭn) Sheep & Goat Specialist Western Maryland Research & Education Center sschoen@umd.edu – www.sheepandgoat.com
  2. 2. Goat marketing realities • Low per capita consumption of meat. • Specialized demand, mostly “ethnic,” but is growing. • Poor infrastructure, but is improving. • High processing costs – low yielding animal. • Laws regulating goat slaughter are extensive, complicated, and open to interpretation.
  3. 3. Today’s topics • Ethnic markets • Goat slaughter options • Grading • Marketing options
  4. 4. What is an ethnic market? • An ethnic market is a group of consumers that share a common cultural background: race, color, national origin, religion or language. • There are many different “ethnic” markets for goats and goat meat.
  5. 5. North Carolina Maryland USA Population (2012 est) 9,752,073 5,884,563 313,914,040 % White, Non-Hispanic 71.9 60.8 77.9 % Hispanic/Latino 8.7 8.7 16.9 % Black/African-American 22.0 30.9 13.1 % Asian 2.5 6.0 5.1 % American Indian 1.5 0.5 1.2 % foreign born 7.4 13.5 12.8 Per capita income $25,256 $35,751 $27,915 Median household income $46,291 $72,419 $52,762 U.S. Census: http://quickfacts.census.gov/qfd/index.html Find out where mosques are: http://islamicvalley.com Population Demographics
  6. 6. Tips for marketing to ethnic markets • Identify target market(s) • Learn their customs • Know their holidays • Find a way to connect with your potential consumers. • Produce the kind(s) of goats they want and at the time of year they want them . . . and do it for a profit.
  7. 7. Ethnic Calendar 2013-2017 Holiday 2013 2014 2015 2016 2017 Eid uh-Adha Festival of the Sacrifice Oct 15-18 Oct 4-7 Sept 23-27 Sept 11-14 Sept 1-4 Islamic New Year Nov 4 Oct 25 Oct 14 Oct 2 Sept 21-22 Prophet’s birthday Jan 24 Jan 13 Dec 23 Dec 14 Dec1 Start of Ramadan July 9 June 28 June 18 June 6 May 27 Eid ul-Fitr Festival of Fast-breaking Aug 8-11 July 29-31 July 18-21 July 7-9 June 26-28 Passover Mar 26-27 Mar 15-22 April 4-11 April 23-30 April 11-18 Rosh Hashanah Sept 5-6 Sept 24-25 Sept 4-5 Oct 3-4 Sept 21-22 Chanukah Nov 28-Dec 5 Dec 17-24 Dec 7-14 Dec 25-Jan1 Dec 13-20 Easter Mar 31 April 20 April 5 Mar 27 April 16 Orthodox Easter May 5 April 20 April 12 May 1 April 16 Christmas Dec 25 Dec 25 Dec 25 Dec 25 Dec 25 Orthodox Christmas Jan 7 Jan 7 Jan 7 Jan 7 Jan 7 Chinese New Year Feb 10 Jan 31 Feb 19 Feb 8 Jan 28 Source: http://www.interfaithcalendar.org
  8. 8. Slaughter options for goats Inspection levels 1. Federal (USDA) 2. State 3. Local (custom-exempt) 4. On-farm (owner vs. customer)
  9. 9. Federally-inspected (USDA) slaughter • Most regulated. • Must have HACCP plan. • Includes pre and post-mortem inspection of animal. • Additional requirements for labeling, further processing, transporting, and storing of meat. • Can sell properly labeled goat meat and meat products to anyone.
  10. 10. State-inspected slaughter • Collaborative effort between state and federal government. • State regulations must be “at least equal to” federal regulations. • Sales of state-inspected meat usually limited to the state in which the meat was inspected. • 27 states still have state meat inspection programs. • Even without state meat inspection, states can make laws more restrictive than USDA (federal regulations0. With Without Alabama Arizona Delaware Georgia Illinois Indiana Iowa Kansas Louisiana Maine Minnesota Mississippi Missouri Montana North Carolina North Dakota Ohio Oklahoma South Carolina South Dakota Texas Utah Vermont Virginia West Virginia Wisconsin Wyoming Alaska Arkansas California Colorado Connecticut Florida Hawaii Idaho Kentucky Maryland Massachusetts Michigan Nebraska Nevada New Hampshire New Jersey New Mexico New York Oregon Pennsylvania Rhode Island South Dakota Tennessee Washington
  11. 11. Custom-exempt slaughter • Slaughter facility is inspected, but slaughter is exempt from pre- and post-mortem inspection of animal. • Restricted to owner of animal 1. Raises it 2. Purchases it for slaughter. • Carcass and meat stamped “not for resale” and returned to owner for consumption by owner, family, and unpaid guests and employees.
  12. 12. On-farm slaughter By person who raised animal • Permitted by USDA • Consumption of meat limited to farmer, family, and nonpaying guests and employees. By person who purchases animal • Not prohibited by federal regulations, but often prohibited by local or state regulations (if seller provides site for slaughter). • In states where it is legal, consumption of meat is limited to owner, family, and non-paying guests and employees.
  13. 13. Ethnic, religious, and ritual slaughter 1. Halal - Muslim 2. Kosher - Jewish 3. Other • Religious slaughter is exempt from humane slaughter laws • Animal is not usually stunned; however, it should be properly restrained for slaughter. • Religious slaughter is usually certified by a third party organization. • Can be difficult to find slaughterhouses that will perform religious or specialized slaughter.
  14. 14. Grading • Putting like animals together. • Allows animals to be comingled at market place. • Facilitates marketing by providing a means by which livestock and carcasses can be uniformly described and traded. • Prices can be reported and compared on the basis of grade and other descriptors (weight, age, and sex). • A method of determining market readiness, regardless of marketing program.
  15. 15. USDA Goat Grades independent of breed, age, size, and fat cover (?) Selection 1 • Superior meat-type conformation Selection 2 • Average muscling Selection 3 • Inferior meat-type conformation
  16. 16. • Learn how to read a market report. • If possible, visit market(s) to determine accuracy of market reporting. • Use market reports to determine what your animals are worth.
  17. 17. Grades can have a large influence on prices. $40 $60 $80 $100 $120 $140 $160 $180 $200 11-Mar 25-Mar 8-Apr 22-Apr 6-May 20-May 3-Jun 17-Jun 1-Jul 15-Jul 29-Jul 12-Aug 60-80 lb. kids, price per head (weighted average) - New Holland, PA Selection 1 Selection 2 Selection 3
  18. 18. WHOLESALE (commodity) Local sale barn Weekly sale Special sale Graded sale Terminal sale MIDDLEMAN Broker, Dealer Abattoir Live price Carcass price Co-op Live market Direct marketer RETAIL (Direct to consumer) On-farm Freezer trade Ethnic markets Marketing options for live goats Convenience Control
  19. 19. WHOLESALE (whole carcass) Consumer Restaurant Retail store RETAIL (meat, cuts) Consumer Farm store Farmer’s market CSA (delivery) Food Service Internet Restaurant Retail store Marketing options for goat meat Income Costs Labor
  20. 20. Auctions (sale barns, stockyards) local, weekly, special, holiday, graded, holiday, regional, terminal PROS • Price discovery Competition • Prompt, guaranteed payment • Unbiased grading • Certified weights • Easy • Convenient • Low labor CONS • Price taker: don’t know price ahead of time • Price volatility • Selling fees: commission, yardage, insura nce, feed • Stressful to animals • Distance to some auctions
  21. 21. Middleman dealer, broker, buyer, abattoir, co-op, live market, direct marketer PROS • Price is known ahead of time • Can negotiate price, shrink, and delivery • No selling fees CONS • Payment risk • May not be highest price
  22. 22. Direct marketing Live animal, whole carcass, wholesale or retail cuts PROS • Highest income: potential for highest profit • Set own prices • Opportunity to brand product CONS • Costs - processing, transportation, etc. • Time
  23. 23. Marketing tips • Sell your goats at a profitable price; know your costs of production and breakeven price(s). • Sell your goats for the highest net price; consider all your marketing costs. • Know what your goats are worth and what they weigh. • Don’t overplay the holidays. • Diversify your market. • Make a profit; better to sell two #2’s than one #1.
  24. 24. Thank you for your attention. Susan Schoenian University of Maryland Extension www.sheepandgoat.com
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