Marketing them
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Part of a 6-part webinar series: an introduction to small ruminants
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Marketing them
- 2. Sheep & Goats produce many marketable products. Meat Fiber Dairy Vegetation control (grazing) Agrotourism Research and biomedical
- 3. MEAT The primary product from sheep/goats and an important by- product of dairy and fiber animals • Sheep • Lamb – under one year of age • Yearling mutton – between 1 and 2 years of age • Mutton – over one year of age • Goat • Cabrito – young goat • Chevon
- 4. Issues and challenges • Low per capita consumption • Lamb – about 1 lb. per person • Goat – about 0.25 per person (Cornell estimate) • Less infrastructure, especially for goats • Stiff competition from imports, mostly from Australia • Higher per unit costs of Sheep Goat Beef Pork Chicke n Turkey Seafoo d 1 0.25 57 54 65 17 16
- 5. Opportunities • Demand exceeds supply • Though per capita consumption is low, it is much higher among people of certain ethnicities, nationalities, and religions, e.g., Muslim, Hispanic, Orthodox Christian. • Many of today’s immigrants are lamb and goat eaters. • Population demographics and immigration patterns favor an increase in demand for sheep and goat meat.
- 6. Marketing alternatives for meat TRADITIONAL • Public auction • Electronic auction • Marketing cooperatives • Abattoir (slaughterhouse) • Order buyer, dealer • Store or restaurant NON- TRADITIONAL • Direct to consumer • Live animals • Whole or half carcasses • Retail cuts • On-farm slaughter
- 7. Pros and cons for selling to auction Pros • Convenient, especially nearby auctions • Can sell almost any sheep or goat • May have special sales prior to major holidays • Auctions are bonded; guaranteed payment Cons • Selling fees can be high • Transportation costs can be high • Shrink can be high • “Price taker”: price not known ahead of time • Prices can be volatile, esp. at small volume auctions
- 8. Know how to read a sale report
- 9. Tips for selling to an auction • Timing – prior to holidays • Optimal weight for your production system/profit • Optimal condition – flesh, fat, sex, tails • Aim for highest net
- 10. What is an ethnic market? • Much lamb and almost all goat is consumed by ethnic markets. • Group of consumers who share a common background, culture, religion, national identity, or language. • Generally, refers to cultures other than the majority culture in the marketing area.
- 11. HOLIDAY RELIGI ON 2021 2022 2023 2024 2025 Eid ul-Adha: Festival of the Sacrifice Muslim July 20-23 July 9-10 Jun 28-29 Jun 16-17 Jun 6-7 Muharramm/Hajra: Islamic New Year Muslim Aug 9-10 July 29-30 July 18-19 July 7-8 June 26-27 Mawlid al-Nabi: Prophet's Birthday Muslim Oct 18-19 Oct 7-8 Sept 26-27 Sept 15-16 Sept 4-5 Ramadan (month of fasting) Muslim April 12-May 11 April 2-May 1 Mar 22-Apr 20 Mar 10-Apr 8 Feb 28-Mar 29 Eid ul-Fitr: Festival of Fast Breaking Muslim May 12-13 May 2-3 Apr 21-22 Apr 9-10 Mar 30-31 Pesch (Passover) Jewish Mar 27-Apr 4 Apr 15-23 Apr 5-13 Apr 22-30 Apr 12-20 Rosh Hashanah Jewish Sept 6-8 Sept 25-27 Sept 15-27 Oct 2-4 Sept 22-24 Nov 29-Dec Dec 25-Jan Ethnic holiday calendar, 2021-2025 Source: sheepandgoat.com * *
- 12. Pros and cons of direct marketing PROS • You set price • No selling fees or commission • Greater income/profit potential • Connection with customers CONS • Scheduling slaughter • High slaughter and processing costs • Time consuming
- 13. Slaughter options for direct marketers • Federal (USDA) Inspection • State Inspection • Custom-exempt • Personal exemption 9/3/20XX 13
- 14. Federal (USDA) Inspection • Highest level of inspection • Pre- and post-mortem inspection of animal • Can sell retail cuts (if properly labeled) • Nationwide sales
- 15. State inspection • In cooperation with USDA FSIS • “At least equal to” federal standards. • About half the states don’t have state meat inspection; Maryland does not • Generally, cannot sell meat across state-lines.
- 16. Custom Exempt • Processing for owner(s) of animal Need to sell live animal and have customer pay processing • Exempt from continuous inspection • No pre- or post-mortem inspection of animals • Once or twice-yearly inspections of facility • Meat is stamped “not for resale”; cannot be sold, traded, bartered, or given away
- 17. Personal exemption • Exempt from any inspection • On-farm slaughter for personal use (family, guests, employees) • Slaughter animal of own raising. • Meat cannot be sold, traded,
- 18. More about on- farm slaughter • A person may purchase livestock and slaughter it on-site, so long as seller doesn’t participate in the slaughter and/or processing (per US code). • Some states may have more stringent regulations and prohibit on-farm slaughter by customer. • Regulations are sometimes interpreted differently and sometimes
- 19. Tips for direct marketing • Know what your animals are worth • Calculate your total costs • Know what your customers want • Provide good customer service
- 20. American Lamb Check- off • Money used to promote American lamb • Owed regardless of marketing method • Owed on every sheep and lamb, regardless of age and sex • Live weight assessment of $0.007 per pound • First handler (owner at time of slaughter) https://americanlamb.com https://www.lambresourcecenter.com
- 21. Fiber • Wool (sheep) • Fine | Crossbred | Medium | Long (coarse) | Carpet • White | Natural colored • Mohair (Angora goats) • Cashmere (Cashmere goats) • Other – Pygora, Cashgora
- 22. Marketing alternatives for fiber TRADITIONAL • Wool pools; Maryland no longer has one • Wool warehouses • Order buyers (sometimes shearer) • Options for marketing goat fibers are more limited NON- TRADITIONAL • Direct to the consumer • Raw fiber (fleeces) • Value-added • Roving, yarn • Blankets and apparel • Felted items
- 23. Pelts (skins, hides) • Pelt credit for commodity lambs (large processors) • Another potential profit center • Can do it yourself or have hides professionally tanned • Prepare hides for professional tanning by • Working closely with processor • Stretching, trimming, and
- 24. Dairy • Similar situation as meat: most cheese is imported. • Dairy is one of the most regulated foods • Standards and licensing requirements are usually similar to cows. • Regulations vary by state – e.g., some allow sales of raw milk or cheese made from raw milk;
- 25. Other marketing options for dairy • Home consumption of milk/milk products • Feed milk to other livestock • Sell as pet food (check state regulations) • Make soap and lotion
- 26. Get paid to graze • Sheep best for controlling grasses and forbs. • Goats best for controlling brush and browse. • Sheep more suitable for solar grazing. • Usually, dry females are used • High health standard for animals – may need health papers and rabies vaccinations. • Need trailer to transport animals https://solargrazing. org
- 27. SUSAN SCHOENIAN Sheep & Goat Specialist University of Maryland Extension sschoen@umd.edu www.sheepandgoat.com www.sheep101.info www.wormx.info Facebook @MDSmallRuminant https://go.umd.edu/MDSmallRum inantYouTube