This presentation was given at the Focus on Farming Conference: Breaking New Ground in Lynnwood, Washington on November 20, 2008.
Marketing sheep and goats to the ethnic markets2008 Focus on Farming Conference: Breaking New GroundLynnwood, Washington - Thursday, November 20, 2008 Susan SchoenianSheep & Goat SpecialistWestern Maryland Research & Education CenterUniversity of Maryland Cooperative Extensionsschoen@umd.edu – www.sheepandgoat.com
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. It is many different markets!
Three market segments31% of American population is considered ethnic. • First generation • Second generation • Mainstream shoppers
Second generation ethnic consumers • Dietary habits change as ethnic populations assimilate into the U.S. culture. • Second generation ethnic customers demand more ready-made ethnic foods. • Organic and green movements are crossing over into the ethnic markets.
U.S. Population Demographics2006 • 299,398,484 • 80.1% white • 14.8% Hispanic/Latino • 11.1% foreign born 2000 • 12.8% black • 4.4% Asian • 1% American Indian • 17.9% non-English speaking • Median household income: $44,334 • Per capita income: $21,587
U.S. immigration • Immigration is what keeps America growing. • U.S. birthrate (1.9%) is below replacement rate (2.1%). http://www.cis.org/articles/2007/back1007.html
Washington State 2006 DataU.S. averages in parentheses • Population of 6,395,798 • 84.8% White (80.1%) • 9.1% Hispanic/Latino (14.8%) • 3.6% Black or African-American (12.8%) • 6.6% Asian (4.4%) • 1.6% American Indian (1.0%) • 10.4% foreign born (11.1%) • Per capita income - $22,973 ($21,857) • Medium household income - $48,438 ($44,334) http://faculty.washington.edu/ellism/wa-immigration.pdf Source: http://quickfacts.census.gov/qfd/states/53000.html
American Muslims http://www.allied-media.com/AM • 8 million Muslims in the United States; another 1 million in Canada. • Annual growth rate is 6% (vs. 0.9% for U.S.) • Same size community as Hispanics 25 years ago.
American Muslims http://www.allied-media.com/AM • American Muslims are younger. • 67% of adult Muslims are < 40 years of age. • 67% of U.S. adult population is > 40 years of age.
American Muslims http://www.allied-media.com/AM • American Muslims are well-educated. • 67% of American Muslims have a Bachelor’s degree or higher. • 44% of Americans have a Bachelor’s degree or higher. • 1 in 10 American Muslim households has a medical doctor.
American Muslims http://www.allied-media.com/AM • American Muslims are affluent. • 66% of American Muslims households earn over $50,000/year • 26% of American Muslims households earn over $100,000/year • U.S. average income is $42,158
Mosques in Washington State • 27 Mosques listed on http://islamicvalley.com Seattle’s Northgate Mosque
Major Muslim holidays • RamadanMonth of fasting • Eid ul FitrFestival of fast-breaking “Little Eid” • Eid ul AdhaFestival of the sacrifice“Big Eid” Eid = Festival Muslim holidays move back 11 days each year.
Aqeeqah • Give thanks to God for the birth of a child. • Baby-naming ceremony. • Child’s head is shaved 7 days after birth. • Slaughter one or two sheep and invite relatives and friends to a meal or distribute the meat to relatives, friends, and the poor. • Sacrificed by father.
HalalArabic word meaning permissible or lawful. • Term applies to all facets to life, but (in the West) used mostly to describe food. • No pork • No alcohol • No blood or blood products • Proper slaughter method • Some similarities with Kosher (Jewish ritual slaughter).
Halal slaughter • Slaughter should be done by a trained Muslim. • Slaughter is by means of a sharp knife. • Throat, windpipe, and jugular veins are cut. • Slaughter of an unconscious (stunned) animal is prohibited. • Animal must be slaughtered in the name of God (Allah). • Animal should be held upright before and during slaughter. • Blood should be totally drained. Considered humane, but exempt from Humane Slaughter Law.
Halal certification • Gives customers assurance that food is Halal. • Many organizations grant Halal certification. • In cooperation with USDA.
www.spiritofhumane.com Poster Restraining device Knife
Hispanic-American Markethttp://www.allied-media.com/Hispanic%20Market/index.html • Fastest growing minority group. • 49% live in Texas or California. • The Latin wave is bigger than the baby boomer generation. • 76 percent increase in buying power since 1990.
Hispanic-American Market http://www.allied-media.com/Hispanic%20Market/index.html • Subcultures from over 20 different countries in Central and South America, the Caribbean and Spain. • Majority of Mexican heritage (67%). • Common link is the Spanish language.
Hispanic-American Market http://www.allied-media.com/Hispanic%20Market/index.html • Hispanic Americans are younger. • Average Hispanic-American is 26 years old. • Average American is 33 years old. • Hispanic-American households are bigger. • Average Hispanic-American household has 3.6 people. • Average American household has 2.5 people.
Hispanic-American Market http://www.allied-media.com/Hispanic%20Market/index.html • More likely to cook from scratch. • Twice as likely to use spices and seasonings. • Prefer fresh ingredients. • Spend more money on food. • Eat at home more. • Have a greater preference for sheep and goat meat in their diet.
Other important ethnic groups • Caribbean Islanders • Eastern Orthodox Christians • Southern Europeans • Africans • Indians • Asians • Jews
Ethnic demand varies by . . . • Time of the year • Species • Weight • Age • Sex • Condition (fat) • Blemishestails, testicles, horns, ears • Preference, bias (breed) • Method of slaughter
Ethnic holiday calendar 2008-2012 http://www.sheepandgoat.com/articles/ethniccalendar.html
The ethnic markets • Identify a target market. • Find out what they want, when they want it, and how they want it processed. • Put your pencil to paper and determine if you can raise and process livestock profitably to meet their demand. • Do it!
Slaughter options • On-farm • Custom exempt • State-inspected • Federally-inspected (USDA)
On-farm slaughter • USDA allows exemption for on-farm slaughter by the owner of the livestock. • On-farm slaughter is allowed for meat that will be consumed by the owner (or owners) or given to their workers or non-paying guests. • Most states restate USDA regulations or impose more stringent regulations. http://newfarm.rodaleinstitute.org/features/2006/1006/onfarm/miller.shtml
Custom-exempt • Slaughter for owner of live animal. • Producer sells live animal. • Exempt from USDA inspection. • Inspection focuses on facilities, not product. • Meat must be stamped “not for resale.”
State-inspected • 27 states operate meat and poultry inspection programs. • Not Washington state • Programs must “at least equal to” federal inspection program. • State-inspected meat is prohibited from interstate movement.
WSDA Custom Meat Program • Custom meat facilities • Custom farm slaughters • Mobile slaughter unit • Custom slaughter establishment • Fixed slaughter facility http://agr.wa.gov/FoodAnimal/CustomMeats/default.htm
USDA - Federal inspection • Inspection of facility and product • Ante-mortem (live) • Post-mortem (carcass) • Only federally-inspected plants can produce products that are destined for interstate commerce or for export to foreign countries.
Selling meatconsumer, store, restaurant, farmer’s market, internet • Livestock must be processed in a federally-inspected plant. • Must get a federal label. • Label is attached at processing plant. • May need/want product liability insurance.
Federally inspected plants are disappearing. Most are small plants or businesses. Big abattoirs are consolidating. Many small ruminant producers are located far from USDA abattoirs. There is a growing demand for local product that is humanely produced and processed. A scarcity of USDA plants http://www.fsis.usda.gov/Regulations_&_Policies/Meat_Poultry_Egg_Inspection_Directory/index.asp
A mobile abattoir • Mobile – travel to livestock farming areas. • Lower cost to build than stationary facility. • Lower cost for processing. 3 units in Washington State6 units nationwide
Producer-owned abattoirOn-farm, custom, state, or USDA www.lambcomd.com
Cooperative marketingsub-contract slaughter www.hairsheep.us
Marketing options - live animals • To a sale barnlocal, regional (terminal) • To a middlemanbroker, dealer, buying station, live market • To a processor • Through a marketing co-op • On-farm sales • Customer takes • On farm slaughter by customer • Custom slaughter for customer income per animal, labor
Consider the holidays Put your livestock in the market one week before the holiday. Sell when reported prices are low. Do not castrate or dock unless you have to. Do not sell poor animals. Desired market weights and conditions vary. Don’t sell overly fat or thin animals. Make sure your livestock and fed and properly cared for. Public auction barnsstockyards, livestock auctions http://www.sheepandgoat.com/articles/sellingatauctions.html
Marketing options - meatvalue-added, direct, niche, relationship marketing • To restaurant • To store • To consumer • Pick-up • Deliver • Internet • Farmer’s market *** Requires USDA inspection and labeling. ***
USDA or third party labelsMust meet criteria of USDA or group issuing label • Organic • Grass-fed • Natural • Halal • Eco-labels • Humane labels
Other claims • Raised on pasture • No hormonesNo added hormones • No antibiotics fed • Grain-fed • Breed • American lamb or goat • Farm fresh • Locally produced
www.sheepgoatmarketing.info • Producer directory • Marketing directory • Market inquiries • Calendar of events • News • Education