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2003 Economic Subject Matter Up Date

2003 Economic Subject Matter Up Date

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2003 Economic Subject Matter Up Date

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  1. 2003 Economic Subject Matter Up Date Meat Goat Production Where are we now? ….Good, Terry Hutchens, Extension Associate, Goat Production University of Kentucky & Kentucky State University Tess Caudill, Kentucky Department of Agriculture, Marketing Division, Goat Marketing

  2. Information Black Hole

  3. Market Sketch • 300,000,000 U.S. Population (July, 2002) • 10% of the U.S. Population was born in another country • 51% is Hispanic • The remainder is Asia and African and many are of the Muslim faith

  4. Market Sketch • The major portion of goat meat sold commercially in the U.S. is imported • Australia, New Zealand and Canada • Off Shore Facilities • Centralized in-country slaughterhouses for lamb export • Piggyback goats

  5. U.S. Export Potential • No powerful lamb industry or infrastructure • Consistent strength of the U.S. dollar • So, why should U.S. retailers buy home grown meet when they can buy frozen for ½ price? • Farm fresh is what they want.

  6. Primary Issue • What are the ways and means to make goat meat more accessible to the consumer, processor, retailer or wholesaler of goat meat. • Quality product on a year round bases (Accelerated breeding or breeding groups) • Assist in nurturing culinary traditions • Adhere to specific carcass preferences (Blemish free) • Ethnic people must be made to feel welcome on the farm • The industry needs to go to the price/lb system • Don’t ignore the domestic market

  7. Marketing StrategiesPooling For The Regional & National Market • Pooling or co-mingling animals into graded livestock sales. • This is a good outlet for the small farmer who is not going to sell direct • Graded and grouped sales & Tel-O-Auction

  8. Average Price Slaughter Kid “Graded & Tel-O-Auction” (2003) Price / Lbs - cwt

  9. 2003 Kentucky Goat Prices 40-60 lb. Selection # 2 Graded Sales and Tel-O-Auctions Price / Head

  10. 2003 Kentucky Goat Prices 40-60 lb. Selection # 1 Non-graded, per head markets Price / Head + Added Value of Pooling $10.60 $11.25 $19.70 $11.60 $16.10 $7.90 $6.30 $11.60

  11. Kentucky Goat and Sheep Tel-O-Auction Delivery Locations • Paris • Irvington • Lebanon • Glasgow • Kentucky Graded Goat Sales • Kentuckiana Livestock, Marion (last Saturday of the month) • Barren River Livestock Market, Bowling Green (Third Wednesday of the month) • Paintsville Stockyards (First Friday of every other month)

  12. Three Year Average Goat Numbers San Antonio (97-99)

  13. Number of Slaughter KidsSold In“Graded & Tel-O-Auction” (2003)

  14. Average Price Paid By Weight “Graded & Tel-O-Auction”(2003)

  15. Average Price Paid By Grade “Graded & Tel-O-Auction” (2003)

  16. Marketing StrategiesPooling For The Local Market • Farmers approach ethnic groups at churches, mosque, international student groups, ethnic festivals…… • Make all arrangements ahead of sale • Two or more farmers pool 30 to 40 kids • Purchase upon inspection by the Imam • Purchase 60-80 lb intact males having purity of appearance: bad eyes, legs, abscesses or too fat

  17. Pooling For The Local Market • Price is $1.00/lb • Total price should not exceed $100 including slaughter and offal costs • ($30-$35 & $5) • Farmer transports the new owner’s animals to the slaughterhouse • The new owner’s take the processed meat home

  18. Marketing StrategiesPooling For On Farm Slaughter • Farmer sells the animal • Then new owner of the animal slaughters on the farm • Farmer needs facilities to catch blood and offal • New owner takes animal and offal home

  19. Or, the Alternative!!

  20. Marketing StrategiesPooling For The Cosmopolitan Gourmet & Health Set

  21. Gourmet & Health Set • Piggybacking on the KY wine industry • Ethnic events and festivals • Special cuts and high end restaurants • Price in accordance with the clientele • $5.50 – $10.50 / lbs • Remember added costs of doing business • Some meet cuts may need other outlets

  22. KY Processing of Halal Goat Meat • Kentucky Specialty Meats, Princeton, KY • Halal goat meat 500/week, Frozen barbequed goat Walmart • Farm Specialty Meats, Pine Knot, KY • Halal goat, beef and lamb, Halal microwaveable stews

  23. Conclusion • Take advantage of all available opportunities not just one outlet. • Farmers need to educate themselves • Farmers need to communicate • Farmers need realistic expectations • Generally speaking, we have done well in one year