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Ethnic marketing of lamb and mutton:
Part 4. Your production plan
Richard Ehrhardt Ph.D.

Small Ruminant Specialist
Michig...
Topics:
•Optimizing breeding, feeding and
management systems for specific ethnic
markets
•Estimating cost of production an...
Similarities and differences of specific ethnic demand in 2
market regions:
• Metro NYC lamb market:

 Milk fed lamb: Ita...
Ethnic markets are diverse, each with
unique dynamics:
•

Markets vary greatly in degree of
specification and in demand dy...
Milk fed lamb market: Intense and short-lived
• How big is this market?
• Timing of Western and Orthodox (Greek) Easter ho...
Accelerated production systems:
• 8 month system: 3 lambing periods in 2
years
• STAR system: 5 lambing periods in 3
years...
Cornell STAR® system
Milk fed lamb market specifications:
• Young lambs with light meat color that are well finishedfast growth needed to meet ...
Matching genetics to production system
and market endpoints:

Proportion of mature size

1. Growth: highly related to matu...
.

0.32 lb/day
0.74g/d
337 lb/day

17

22

33

45

(lb)
Ehrhardt R A et al. J. Nutr. 2003;133:4196-4201
Generalities regarding Muslim/Halal markets
•
•
•
•

Large market in many regions
Low marketing/promotion effort by indust...
What is the target carcass for the Muslim market?
Genetics and management for Muslim market
• Genetics:
Maternal lines:
 <170 lbs maternal size, prolific, parasite resist...
Source: Dr. David Thomas, UW-Madison
Matching genetics to production system
and market endpoints:
1. Growth: highly related to mature size

250

Suffolk
Body w...
• Efficient systems that use terminal sires also
use “maternal” sires to produce
replacement ewes.
EFFECTS OF SIRE BREEDS ACCOUNTING FOR
BOTH GROWTH AND SURVIVAL
216-DAY WEIGHT
CORRECTED FOR LAMB SURVIVAL, LB

117

Texel
...
Lamb growth, intake, efficiency and cost of gain in
lambs grazing brassicas vs. fed grain in a feedlot
•Dorset x Finn x Ra...
What is the cost of production for various ethnic
market production schemes?
•True cost of productions calculations are ac...
Partial budget estimates for 3 ethnic market scenarios
Hot house

Muslim

Hot House/Muslim

Annual

Annual

Accelerated

F...
Lamb return scenario from early November 2013
Cost of ewe
production

Cost of Lamb production
Weight

Feed:

Feed $ Feed/
...
Summary:
•Ethnic markets are diverse and vary greatly in carcass
specifications and seasonal demand
•Market diversity and ...
Richard Ehrhardt Ph.D.
Email: ehrhard5@msu.edu
Office: (517) 353-2906
Cell: (517) 899-0040
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
Production plan for ethnic marketing of lamb and mutton
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Production plan for ethnic marketing of lamb and mutton

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This is the 4th presentation in a 4-part series on the ethnic marketing of lamb and mutton. The presentation was given by Dr. Richard Ehrhardt from Michigan State University.

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Production plan for ethnic marketing of lamb and mutton

  1. 1. Ethnic marketing of lamb and mutton: Part 4. Your production plan Richard Ehrhardt Ph.D. Small Ruminant Specialist Michigan State University
  2. 2. Topics: •Optimizing breeding, feeding and management systems for specific ethnic markets •Estimating cost of production and evaluating marketing options
  3. 3. Similarities and differences of specific ethnic demand in 2 market regions: • Metro NYC lamb market:  Milk fed lamb: Italian 35-45 lbs , Greek 45-55 lbs peak demand Christmas and Easter, low demand otherwise  Muslim/halal lamb:70-80 lbs liveweight, lean product acceptable, peak demand Eid al-Fitr, Eid al-Adha but decent demand year round  Greek restaurant trade-70-80 lb well finished lamb, demand throughout the year but highest during outdoor cooking weather.  Lots of farm gate sales, little farmer to retailer, many lambs sold directly to wholesalers who distributes to small retailers, some wholesalers and retailers buy from public markets (New Holland, others) • Metro Detroit (principally Dearborn):  Milk fed lamb: exactly the same specifications and demand cycle as NYC but much smaller market, lower prices  Muslim/halal lamb and Greek restaurant trade mixed together into category of “lite fat” lambs, 80-115 lbs, finished lamb with uniform fat cover preferred, less emphasis on lean lamb  Lots of farm gate sales, no farm to wholesale or retail, lots of lambs sold both to wholesalers and retailers at public market
  4. 4. Ethnic markets are diverse, each with unique dynamics: • Markets vary greatly in degree of specification and in demand dynamics:    Demand is relatively consistent and product specifications less rigid in some markets Demand is short lived and intense with very specific requirements in others Demand and specifications of various ethnic markets can be complimentary thus increasing market options
  5. 5. Milk fed lamb market: Intense and short-lived • How big is this market? • Timing of Western and Orthodox (Greek) Easter holidays affect marketing dynamics: Price lower when holidays are on the same day Best scenario for sustained demand (and profit) is when Greek follows Western Easter. • Premiums paid for finished, muscular, high-yielding lambs • Best suited for accelerated production schemes as cost of production is likely too high for annual lambing systems • Decision to participate in this market should include evaluation of the profit of selling the same lambs later at heavier weights • No lamb feeding facilities needed, facilities can be optimized for lambing and nursing moms and babies
  6. 6. Accelerated production systems: • 8 month system: 3 lambing periods in 2 years • STAR system: 5 lambing periods in 3 years (7.2 month intervals).
  7. 7. Cornell STAR® system
  8. 8. Milk fed lamb market specifications: • Young lambs with light meat color that are well finishedfast growth needed to meet age and finish requirements • Lambs sold directly off moms, gaining >0.60 lbs/ day • Genetics  Maternal: aseasonal and prolific, modest frame size with muscle: Finn, Dorset, Ile de France, Romanov  Rams: Modest frame size, early growth pattern, heavy muscling, aseasonal for spring breeding: Ile de France, Dorset, Texel, Southdown? • Management:  7-9 month birth intervals  High plane of maternal nutrition  Indoor rearing of lambs with access to creep feed  Males not castrated  Lamb sold directly off of dams-not weaned  Proximity of slaughter house to farm is important as these lambs shrink and loose quality quickly
  9. 9. Matching genetics to production system and market endpoints: Proportion of mature size 1. Growth: highly related to mature size but there is also variation in shape of growth curve. 0.7 0.6 Ile de France 0.5 0.4 Suffolk 0.3 0.2 0.1 0 0 50 100 150 Days post birth 200
  10. 10. . 0.32 lb/day 0.74g/d 337 lb/day 17 22 33 45 (lb) Ehrhardt R A et al. J. Nutr. 2003;133:4196-4201
  11. 11. Generalities regarding Muslim/Halal markets • • • • Large market in many regions Low marketing/promotion effort by industry and farmers Consistent demand with clear peaks Market standards vary: Quality standards ill defined: uniform fat cover but not overly fat (less than 0.2 inch SQ over 12th rib; yield grade <3) Inconsistent premium for quality Smaller carcasses desired (<60 lbs) compared to “traditional” market Premiums sometimes paid for intact males and “unblemished” animals Demand for quality, mature animals • Quality standards can often be met with grazing/forage-based, low input, low cost production systems • Marketing experience suggest that this market may be trending towards demand for larger lambs (previous 40 lb carcass standard may be increasing to 50-60 lb)
  12. 12. What is the target carcass for the Muslim market?
  13. 13. Genetics and management for Muslim market • Genetics: Maternal lines:  <170 lbs maternal size, prolific, parasite resistant?  Many breed possibilities, “hair” sheep certainly fit this profile Sire lines:  Efficiencies gained by use of larger mature size, terminal sires  Leaner standards (?) favor large terminal sires however extreme size perhaps not ideal in smaller ewes in a pasture based system (higher growth offset by greater mortality) • Management: Lambs can be fed on presumably lower cost feeding systems (forage/grazing based) with zero or limited grain finishing as slower grown, leaner carcasses fit market specifications Good management is required to negate pasture system limitations: higher predation risk, lower energy feeds, parasitism
  14. 14. Source: Dr. David Thomas, UW-Madison
  15. 15. Matching genetics to production system and market endpoints: 1. Growth: highly related to mature size 250 Suffolk Body weight (lbs) 200 150 Ile de France 100 50 0 0 50 100 Days post birth 150 200
  16. 16. • Efficient systems that use terminal sires also use “maternal” sires to produce replacement ewes.
  17. 17. EFFECTS OF SIRE BREEDS ACCOUNTING FOR BOTH GROWTH AND SURVIVAL 216-DAY WEIGHT CORRECTED FOR LAMB SURVIVAL, LB 117 Texel 114 Dorset 111 Romanov Finn 108 105 Suffolk Dorper Comp. Katahdin Ramb. 102 Data provided by Dr. KA Leymaster, unpublished
  18. 18. Lamb growth, intake, efficiency and cost of gain in lambs grazing brassicas vs. fed grain in a feedlot •Dorset x Finn x Rambouillet x Targhee x Ile de France lambs in the during the 70-90 lb growth phase Brassica Grain Average Daily Gain (lb/d) 0.384 0.76 Intake (% of bodyweight) 5.1 4.1 Feed:Gain 10.5 4.0 Cost of gain ($/lb) 0.25 0.60
  19. 19. What is the cost of production for various ethnic market production schemes? •True cost of productions calculations are achieved via a process requiring refinement and adjustment over time-a laudatory goal! •Use estimates to get the ball rolling and then refine •Major costs of production: Feed Facilities Labor Budget calculator suggestion: http://www.omafra.gov.on.ca/english/livestock/sheep/business.html
  20. 20. Partial budget estimates for 3 ethnic market scenarios Hot house Muslim Hot House/Muslim Annual Annual Accelerated Farm feed $/ewe/yr 130 100 160 Facility $/ewe/yr 40 10 45 Labor $/ewe/yr 40 30 55 Total $/ewe/yr 210 140 260 $/lamb Lambs sold/ewe/yr $/ewe/yr 110 1.5 165 144 1.4 201.6 140 2.3 322 Return on feed and labor -45 61.6 62
  21. 21. Lamb return scenario from early November 2013 Cost of ewe production Cost of Lamb production Weight Feed: Feed $ Feed/ Feed $/ Lambs sold/ Ewe Feed $/ Total (lbs) Gain $/lb ewe/year ewe/year lamb sold Feed$/lamb $/lb lamb -feed 40 1 0.15 140 2.2 64 64 3 120 56 50 2.5 0.15 3.8 140 2.2 64 67 2.8 140 73 60 3.5 0.15 9.0 140 2.2 64 73 2.5 150 77 70 3.65 0.15 14.5 140 2.2 64 78 2.2 154 76 80 3.8 0.15 20.2 140 2.2 64 84 2 160 76 90 4 0.15 26.2 140 2.2 64 90 1.8 162 72 100 4.3 0.15 32.6 140 2.2 64 96 1.6 160 64 110 4.8 0.15 39.8 140 2.2 64 103 1.6 176 73 120 5.8 0.15 48.5 140 2.2 64 112 1.6 192 80 130 7 0.15 59.0 140 2.2 64 123 1.6 208 85 140 8.5 0.15 71.8 140 2.2 64 135 1.6 224 89 lamb Note: Risk and yardage not accounted for in this scenario Market Market $/ $ lamb
  22. 22. Summary: •Ethnic markets are diverse and vary greatly in carcass specifications and seasonal demand •Market diversity and seasonal demand can be complimentary in nature and mesh efficiently with accelerated production systems. •Marketing options can be evaluated with spreadsheet calculators to optimize marketing plans •Hot house production costs are high and generally only profitable when targeted using an accelerated production system •Muslim market standards are less specific and are almost always a more profitable target of lower input, pasture-based production systems. •Good management is imperative for profit in all production systems.
  23. 23. Richard Ehrhardt Ph.D. Email: ehrhard5@msu.edu Office: (517) 353-2906 Cell: (517) 899-0040

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