Potential & Promise  in  Ethnic Markets Bill Sciarappa PhD Agricultural Agent Rutgers University This project was supporte...
TEAMWORK Rutgers Research & Education Centers University of  Massachusetts Rutgers Agricultural Economics & Marketing Univ...
POTENTIAL OPPORTUNITIES  IN NORTH AMERICA <ul><li>Asian </li></ul><ul><li>Hispanic  </li></ul><ul><li>Caribbean </li></ul>...
ETHNIC CROP OVERVIEW  Rick VanVranken Rutgers Agricultural Agent
Canadian Immigration  100 Years
Canadian Growth Centers
Origin of Canadian Immigrants
Immigration in Canada
Population Age Structure
Canada Population Projection
Potential Market  =Coastal  Ethnic Populations Chinese  Asian Indian  Mexican  Puerto Rican Maine 2,034 1,021 2,756 2,275 ...
US Growth Rates US Population Projections POTENTIAL  AMERICAN  DEMOGRAPHICS
 
Where’s the Market?
CILANTRO Crop Research Crop Budget Market Analysis Market Connection Marketing Issues Poster Child
 
 
Mapping; Identifying Market Opportunities Developed by the Food Policy Institute, Source: U.S. Census 2000 #1 - Locate a F...
East Coast Ethnic Consumer Survey <ul><li>Four Ethnic Groups   </li></ul><ul><ul><li>Asian </li></ul></ul><ul><ul><ul><li>...
EAST COAST CONSUMER SURVEY  1,084 Participants Willing to buy ethnic produce in ethnic store. Willing to buy ethnic produc...
EAST COAST CONSUMER SURVEY  1,084 Participants Willing to buy organically grown produce Willing to buy genetically modifie...
East Coast Ethnic Produce Study: Indian, Chinese, Mexican & Puerto Rican Consumers’ Produce Purchase Patterns; Frequency, ...
Consumer Expenditures and Household Size
Fresh Ethnic Produce Expenditures  Asian Consumers Hispanic  Consumers * Source: Consumer Expenditure Survey, 2005; Bureau...
Marketing Comes First  Planning for Changing Markets <ul><li>Do Your Homework </li></ul><ul><li>Find Your Market </li></ul...
Market Differentiation Wholesale versus Retail
The Marketplace Distributing your ethnic product <ul><li>Farmgate – Farmstand, PYO, CSA </li></ul><ul><li>Roadside Stands ...
Ethnic Food Markets Places to Buy Ethnicity Chinese Asian Indian Mexican Puerto Rican Frequency (Percent) Frequency (Perce...
Influence of Advertising Advertisement Type Ethnicity Chinese  Asian Indian  Mexican  Puerto Rican  Frequency Percent Freq...
Mexican Ethnic Produce Ranking Average Expenditure in $
Puerto Rican Ethnic Produce Ranking Average Expenditure in $
Ethnic Produce Ranking Example Average Weekly Expenditure in $
Weekly Purchases of Ethnic Produce  by Ethnic Consumer  Groups on the East Coast
Ethnic Produce Project; Crop Selection Process 100+ Crops Identify Ethnic Crops of Interest Generate Plot Plans; Maximize ...
Agribusiness Products Chinese : Baby Pak Choy Pak Choy Oriental Eggplant Oriental Spinach Snow Peas Napa Cabbage Luffa Mex...
<ul><li>Fresh or Frozen Soyfoods </li></ul><ul><li>Raw or Lightly Cooked </li></ul><ul><li>High in Sugar </li></ul><ul><li...
Marketing Health Asian Cabbages & Greens Going Mainstream Provide Recipes
Marketing to Restaurants RU Research Farm   -  Chef’s Day
Marketing Taste   Not Just Parmigiana Anymore
<ul><li>Japanese </li></ul><ul><li>Chinese </li></ul><ul><li>Indian </li></ul><ul><li>Jamaican </li></ul><ul><li>Puerto Ri...
<ul><li>Anaheim </li></ul><ul><li>Chili </li></ul><ul><li>Cayenne </li></ul><ul><li>Tabasco </li></ul><ul><li>Jalapeno </l...
Promising Hispanic Peppers
Aji Dulce – Pepper Capsicum chinense
Promising Hispanic Peppers
Tomatillo – Husk Tomato Purple Tomatillo Pineapple Tomatillo Ciscineros
Batata  = Puerto Rican Sweet Potato
RAREC Research Plots
Ethnic Cucurbits
Bitter Gourd
Evaluating Ethnic Melons
‘ El Dorado’ ‘ La Estrella’ Calabaza Production
Semi-bush hybrid  Long vine type
Calabaza Trial Marketable Yield Cultivar No  Fruit/acre Wt. Fruit (lbs./acre) Avg. Fruit (lbs.) ‘ El Dorado’ 7,858 44,025 ...
Greenhouse Production
Greenhouse Production North America Production Area (Hectares) Crop Canada US Mexico Total NA Tomato 482 350 790 1,622 Cuc...
Greenhouse Vegetable Crops Ethnic Alternative British Columbia
Take Home Tips for Niche Crops <ul><li>Find Your Specific Market & then Grow for It </li></ul><ul><li>Know your Market bef...
Promise & Potential for An International World of Heritage Crops
Thanks <ul><li>Ontario Fruit & Vegetable Industry </li></ul><ul><li>Food Policy Institute – Rutgers University </li></ul><...
Putting Science and Research  to Work for Communities
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Potential & Promise In Ethnic Markets Toronto 2007

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  • Ethnic Crop Marketing Sciarappa@rcre.rutgers.edu Speaker Bill Sciarappa, is a member of Rutgers Vegetable Research Working Group. This group works primarily with specialty vegetable crops and increasingly more so with ethnic specialties. The program has evolved from being largely unfunded to being funded by moderate size grants and now is significantly supported by Rutgers USDA-NRI grant. Our grant team consists of William Sciarappa1 Ramu Govindasamy2, Venkat Purduri2, Richard Van Vranken1, Albert Ayeni3, James E. Simon 4, Frank Mangan5, Mary Lamberts,6 Gene McAvoy 6 and Kim Pappas2 1Rutgers Cooperative Research and Extension, New Jersey Agriculture Experiment Station, Cook College, New Brunswick, NJ 08901; 2Agricultural Economics and Marketing, Rutgers University, New Brunswick, NJ 08901; 3International Agriculture - Deans Office, Foran Hall, 59 Dudley Rd., Rutgers University, New Brunswick, NJ 08901; 4Center for New Use Agriculture and Natural Plant Products, Rutgers University, New Brunswick, NJ 08901; 5 Department of Plant, Soil &amp; Insect Sciences, French Hall, 201 University of Mass., Amherst, MA 01003; 6 University of Florida, 18710 SW 288th St., Homestead, FL 33030
  • Potential & Promise In Ethnic Markets Toronto 2007

    1. 1. Potential & Promise in Ethnic Markets Bill Sciarappa PhD Agricultural Agent Rutgers University This project was supported by the National Research Initiative of the Cooperative State Research, Education and Extension Service, USDA, Award # 2005-35618-15735
    2. 2. TEAMWORK Rutgers Research & Education Centers University of Massachusetts Rutgers Agricultural Economics & Marketing University of Florida Ramu Govindasamy, Venkat Puduri, Richard Van Vranken, Albert Ayeni, Kim Pappas , James E. Simon, Frank Mangan, Mary Lamberts, & Gene McAvoy
    3. 3. POTENTIAL OPPORTUNITIES IN NORTH AMERICA <ul><li>Asian </li></ul><ul><li>Hispanic </li></ul><ul><li>Caribbean </li></ul><ul><li>Russian </li></ul><ul><li>European </li></ul>Promising Markets
    4. 4. ETHNIC CROP OVERVIEW Rick VanVranken Rutgers Agricultural Agent
    5. 5. Canadian Immigration 100 Years
    6. 6. Canadian Growth Centers
    7. 7. Origin of Canadian Immigrants
    8. 8. Immigration in Canada
    9. 9. Population Age Structure
    10. 10. Canada Population Projection
    11. 11. Potential Market =Coastal Ethnic Populations Chinese Asian Indian Mexican Puerto Rican Maine 2,034 1,021 2,756 2,275 New Hampshire 4,074 3,873 4,590 6,215 Vermont 1,330 858 1,174 1,374 Massachusetts 84,392 43,801 22,288 199,207 Rhode Island 4,974 2,942 5,881 25,422 Connecticut 19,172 23,662 23,484 194,443 New York 424,774 251,724 260,889 1,050,293 New Jersey 100,355 169,180 102,929 366,788 Pennsylvania 50,650 57,241 55,178 228,557 Delaware 4,128 5,280 12,986 14,005 Maryland 49,400 49,909 39,900 25,570 District of Columbia 3,734 2,845 5,098 2,328 Virginia 36,966 48,815 73,979 41,131 North Carolina 18,984 26,197 246,545 31,117 South Carolina 5,967 8,356 52,871 12,211 Georgia 27,446 46,132 275,288 35,532 Florida 46,368 70,740 363,925 482,027 TOTAL 884,748 812,576 1,549,761 2,718,495
    12. 12. US Growth Rates US Population Projections POTENTIAL AMERICAN DEMOGRAPHICS
    13. 14. Where’s the Market?
    14. 15. CILANTRO Crop Research Crop Budget Market Analysis Market Connection Marketing Issues Poster Child
    15. 18. Mapping; Identifying Market Opportunities Developed by the Food Policy Institute, Source: U.S. Census 2000 #1 - Locate a Farm Market or Outlet Patterson Farm Market 449 East Railway Avenue Paterson, NJ 07503 #3 - Quantify Local Ethnic Markets: T op 10 Ethnic Populations within 2 Miles #2 - Identify Ethnic Populations in Close Proximity
    16. 19. East Coast Ethnic Consumer Survey <ul><li>Four Ethnic Groups </li></ul><ul><ul><li>Asian </li></ul></ul><ul><ul><ul><li>Chinese </li></ul></ul></ul><ul><ul><ul><li>Indian </li></ul></ul></ul><ul><ul><li>Hispanic </li></ul></ul><ul><ul><ul><li>Mexican </li></ul></ul></ul><ul><ul><ul><li>Puerto Rican </li></ul></ul></ul><ul><li>Span of Research </li></ul><ul><ul><li>16 East Coast Bordering States </li></ul></ul><ul><ul><li>+ Washington D.C. </li></ul></ul><ul><li>Sample size(s) statistically determined </li></ul><ul><ul><li>90% Confidence Interval w/ </li></ul></ul><ul><ul><li>5% Margin of Error </li></ul></ul><ul><li>Sample size requirements via stratified sampling method </li></ul><ul><ul><li>By state (16 +DC) </li></ul></ul><ul><ul><li>By ethnic group </li></ul></ul><ul><li>Assess Ethnic Produce Demand </li></ul><ul><ul><li>Develop ethnic consumer survey </li></ul></ul><ul><ul><li>Deliver by phone via outsourced telemarketing firm </li></ul></ul>
    17. 20. EAST COAST CONSUMER SURVEY 1,084 Participants Willing to buy ethnic produce in ethnic store. Willing to buy ethnic produce grown on local farm . More willing Indifferent Less willing Unsure Chinese 68% 17% 8% 8% Indian 59% 26% 8% 6% Mexican 77% 13% 7% 2% Puerto Rican 78% 12% 6% 4% Total 71% 17% 7% 5% More willing Indifferent Less willing Unsure Chinese 65% 15% 9% 11% Indian 55% 31% 9% 5% Mexican 80% 13% 4% 3% Puerto Rican 77% 13% 9% 2% Total 69% 18% 8% 5%
    18. 21. EAST COAST CONSUMER SURVEY 1,084 Participants Willing to buy organically grown produce Willing to buy genetically modified produce More willing Indifferent Less willing Unsure Chinese 48% 27% 12% 12% Indian 46% 28% 21% 6% Mexican 56% 27% 12% 6% Puerto Rican 55% 23% 18% 4% Total 51% 26% 16% 7% More willing Indifferent Less willing Unsure Chinese 18% 23% 41% 18% Indian 10% 31% 48% 11% Mexican 11% 22% 56% 11% Puerto Rican 12% 18% 63% 7% Total 13% 23% 52% 12%
    19. 22. East Coast Ethnic Produce Study: Indian, Chinese, Mexican & Puerto Rican Consumers’ Produce Purchase Patterns; Frequency, Expenditures, & Access* <ul><li>Accessibility to Grocery Store/Market: (Distance) </li></ul><ul><ul><li>>70% respondents w/in 10 miles; >80% w/in 20 miles </li></ul></ul><ul><ul><li> </li></ul></ul>$270 Mil $210 Mil $321 Mil $592 Mil
    20. 23. Consumer Expenditures and Household Size
    21. 24. Fresh Ethnic Produce Expenditures Asian Consumers Hispanic Consumers * Source: Consumer Expenditure Survey, 2005; Bureau of Labor Statistics, US Dept of Commerce Comparison: National Data* vs. Survey Sample $429 $1,306 $1,473 $357 $0 $500 $1,000 $1,500 $2,000 Hispanic Mexican Puerto Rican Ethnic Group or Sub-group Avg Annual Expenditure National Data Survey Sample Nat'l Avg (All)
    22. 25. Marketing Comes First Planning for Changing Markets <ul><li>Do Your Homework </li></ul><ul><li>Find Your Market </li></ul><ul><li>Start Small </li></ul><ul><li>Work With University </li></ul>
    23. 26. Market Differentiation Wholesale versus Retail
    24. 27. The Marketplace Distributing your ethnic product <ul><li>Farmgate – Farmstand, PYO, CSA </li></ul><ul><li>Roadside Stands & Retail outlets off-farm </li></ul><ul><li>Ethnic Grocery Stores </li></ul><ul><li>Farmer’s Markets </li></ul><ul><li>Restaurants </li></ul><ul><li>Specialty Produce Stores </li></ul><ul><li>Box Stores </li></ul><ul><li>Wholesale Auctions </li></ul>
    25. 28. Ethnic Food Markets Places to Buy Ethnicity Chinese Asian Indian Mexican Puerto Rican Frequency (Percent) Frequency (Percent) Frequency (Percent) Frequency (Percent) Typical American grocery store 45 (17%) 154 (57%) 225 (83%) 187 (69%) Ethnic grocery stores 235 (87%) 228 (84%) 120 (44%) 160 (59%) Community farmers market 5 (2%) 38 (14%) 62 (23%) 64 (24%) On-farm markets or roadside stand 4 (1%) 22 (8%) 49 (18%) 31 (11%) Total* 289 (107%) 442 (163%) 456 (168%) 442 (163%) * Total number of responses by 271 respondents per ethnic group; percent is relative to 271 respondents
    26. 29. Influence of Advertising Advertisement Type Ethnicity Chinese Asian Indian Mexican Puerto Rican Frequency Percent Frequency Percent Frequency Percent Frequency Percent Out-of Store Ads 79 (29%) 50 (18%) 149 (55%) 154 (57%) Visible-from Road Ads 15 (6%) 29 (11%) 112 (41%) 94 (35%) On-Site or In-Store Ads 56 (21%) 103 (38%) 192 (71%) 155 (57%) Point-of -Purchase Ads 16 (6%) 65 (24%) 129 (48%) 122 (45%) None 141 (52%) 82 (30%) 27 (10%) 25 (9%) Total* 307 (113%) 329 (121%) 609 (225%) 550 (203%) * Total number of responses by 271 respondents per ethnic group; percent is relative to 271 respondents
    27. 30. Mexican Ethnic Produce Ranking Average Expenditure in $
    28. 31. Puerto Rican Ethnic Produce Ranking Average Expenditure in $
    29. 32. Ethnic Produce Ranking Example Average Weekly Expenditure in $
    30. 33. Weekly Purchases of Ethnic Produce by Ethnic Consumer Groups on the East Coast
    31. 34. Ethnic Produce Project; Crop Selection Process 100+ Crops Identify Ethnic Crops of Interest Generate Plot Plans; Maximize Research Potential Consider logistical concerns such as; * budget constraints * irrigation * seed availability * cross-contamination * plot space *supplies (plastic mulch, trellis) <ul><li>Re-visit Research Candidates Examine survey demand rank </li></ul><ul><li>Re-evaluate Survey Rank Consider production research potential </li></ul><ul><li>Consolidate/Maximize Remove/replace duplicates, improve variety </li></ul><ul><li>Re-prioritize Crops for Production Select top 7 per ethnicity </li></ul>Rank Crops (2x); Production Potential & Survey Demand Asian Indian (#1-10) Mexican (#1-10) Chinese (#1-12) Puerto Rican (#1-10) <ul><li>Conduct Process of Elimination; </li></ul><ul><li>Identify Research Crop Candidates </li></ul><ul><li>Convene Panel of Experts to reduce list by ~50% due to existing production barriers; </li></ul><ul><ul><li>Climate </li></ul></ul><ul><ul><li>Growth cycle </li></ul></ul><ul><ul><li>Seed availability/regulation </li></ul></ul><ul><ul><li>Competition/Commodity nature </li></ul></ul>Create Initial Crop List Common ethnic crops in local marketplace Alumni 42 Crops 28 Crops Assess Supply & Demand Develop Production Plot Plans Prioritize Production Research FL (2 sites) 12 Research 16 Demo x 2 Years MA (1 site) NJ (3 sites)
    32. 35. Agribusiness Products Chinese : Baby Pak Choy Pak Choy Oriental Eggplant Oriental Spinach Snow Peas Napa Cabbage Luffa Mexican: Chili Jalapeno Tomatillo Chili Pablano Calabacita Chili Serrano Anaheim Pepper Tutuma Indian: Eggplant (Pushpa) Fenugreek Leaves Cluster Beans Bottle Gourd Ridged Gourd Mint Leaves Eggplant (Bharta) Puerto Rican: Batata Aji Dulce Cilantro Calabaza Chili Caribe Pepinillo Berenjena
    33. 36. <ul><li>Fresh or Frozen Soyfoods </li></ul><ul><li>Raw or Lightly Cooked </li></ul><ul><li>High in Sugar </li></ul><ul><li>30-40% Protein </li></ul><ul><li>Rich in Vitamins - Minerals </li></ul><ul><li>Avoids Saturated Fats </li></ul><ul><li>Avoids Cholesterol </li></ul><ul><li>Substitutes - Animal Protein </li></ul><ul><li>More Digestable </li></ul>Marketing Nutrition Vegetable Soybeans - Edamame SELLING POINTS
    34. 37. Marketing Health Asian Cabbages & Greens Going Mainstream Provide Recipes
    35. 38. Marketing to Restaurants RU Research Farm - Chef’s Day
    36. 39. Marketing Taste Not Just Parmigiana Anymore
    37. 40. <ul><li>Japanese </li></ul><ul><li>Chinese </li></ul><ul><li>Indian </li></ul><ul><li>Jamaican </li></ul><ul><li>Puerto Rican </li></ul><ul><li>Italian </li></ul><ul><li>African </li></ul><ul><li>French </li></ul><ul><li>Russian </li></ul>International Eggplant
    38. 41. <ul><li>Anaheim </li></ul><ul><li>Chili </li></ul><ul><li>Cayenne </li></ul><ul><li>Tabasco </li></ul><ul><li>Jalapeno </li></ul><ul><li>Habanero </li></ul>Scoville Heat Scale Habaneros 50,000 – 500,000 Marketing Hot Peppers
    39. 42. Promising Hispanic Peppers
    40. 43. Aji Dulce – Pepper Capsicum chinense
    41. 44. Promising Hispanic Peppers
    42. 45. Tomatillo – Husk Tomato Purple Tomatillo Pineapple Tomatillo Ciscineros
    43. 46. Batata = Puerto Rican Sweet Potato
    44. 47. RAREC Research Plots
    45. 48. Ethnic Cucurbits
    46. 49. Bitter Gourd
    47. 50. Evaluating Ethnic Melons
    48. 51. ‘ El Dorado’ ‘ La Estrella’ Calabaza Production
    49. 52. Semi-bush hybrid Long vine type
    50. 53. Calabaza Trial Marketable Yield Cultivar No Fruit/acre Wt. Fruit (lbs./acre) Avg. Fruit (lbs.) ‘ El Dorado’ 7,858 44,025 5.60 ‘ La Estrella’ 4,664 37,688 8.08 Significance * NS
    51. 54. Greenhouse Production
    52. 55. Greenhouse Production North America Production Area (Hectares) Crop Canada US Mexico Total NA Tomato 482 350 790 1,622 Cucumber 199 25 118 342 Bell Pepper 174 20 210 404 TOTAL 855 395 1118 2,368
    53. 56. Greenhouse Vegetable Crops Ethnic Alternative British Columbia
    54. 57. Take Home Tips for Niche Crops <ul><li>Find Your Specific Market & then Grow for It </li></ul><ul><li>Know your Market before Planting </li></ul><ul><li>Talk to Local Produce People where Sold </li></ul><ul><li>Grow the Exact Varieties for targeted Ethnicities </li></ul><ul><li>Visit Ethnic Restaurants and Follow Food Chain </li></ul><ul><li>Calculate Weekly Planting on Market Need </li></ul><ul><li>Deliver Product at right Time & Temperature </li></ul><ul><li>Pack Product as the Customer wants it </li></ul><ul><li>Develop Good Relations with Buyers/Visit them </li></ul><ul><li>Back Track thru City Markets & Wholesalers </li></ul><ul><li>Work with University & Government Sources </li></ul><ul><li>Work With University </li></ul>
    55. 58. Promise & Potential for An International World of Heritage Crops
    56. 59. Thanks <ul><li>Ontario Fruit & Vegetable Industry </li></ul><ul><li>Food Policy Institute – Rutgers University </li></ul><ul><li>USDA - National Research Initiative Grant </li></ul>
    57. 60. Putting Science and Research to Work for Communities

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