Ethnic marketing of lamb and mutton
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First presentation in a 4-part webinar series on the ethnic marketing of lamb and mutton.
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Ethnic marketing of lamb and mutton
- 1. Ethnic marketing of lamb and mutton Part I. Ethnic market background SUSAN SCHOENIAN Sheep & Goat Specialist University of Maryland Extension sschoen@umd.edu
- 2. Lamb Demand • Per capita consumption of lamb is very low, less than 1 lb. per person; however, consumption is much higher among people of certain ethnic and religious groups. • Population trends and immigration patterns favor an increase in the demand for lamb, mutton, and goat. • Imports comprise anywhere from ⅓ to ½ of the domestic lamb market; however, ethnic consumers usually prefer a fresh product. • Lamb is the preferred meat for the three major religions: Christian, Muslim, and Jewish; demand usually increases in advance of major holidays.
- 3. Comparison of lamb markets Traditional (commodity) Non-traditional, including ethnic • Higher volume • Little variability in type of lamb sold: mostly large lambs finished in feedlots. • Price volatility; market sets prices. • Long-term decline in production. • Continuing loss of infrastructure. • Must change to survive (Hale Report). • Lower volume • Demand outstrips supply • Markets have room to grow due to favorable demographics. • Less price sensitivity and volatility because producers often negotiate prices. • More competitive with imported product. • More consumer feedback • Variable demand for type of lamb. • Can meet demand with different breeds and types and different production systems and feeding programs.
- 4. 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. • There is no single ethnic market for lamb and mutton. • The ethnic market is composed of many different market segments, with consumers in each group having different buying preferences.
- 5. Two largest demand sectors for lamb MUSLIM Source: http://www.allied-media.com/AM HISPANIC
- 6. Two largest demand sectors for lamb Hispanic • Hispanics are the fastest growing minority group. • The Latin wave is bigger than the baby boomer generation. • Hispanic buying power has increased 76% since 1990. • Hispanic families are larger. • Hispanics are more likely to cook at home and from scratch. • Hispanics spend more money on food than the average American. Muslim • There are as many as 8 million Muslims in U.S. • The annual growth rate (6%) is larger than U.S. population growth (<1%). • It is the same size community as Hispanics were 25 years ago. • The average Muslim is younger, well-educated, and affluent.
- 7. Population trends and immigration patterns favor an increase in the demand for lamb. U.S. Population Demographics Population (2012 estimate) 313,914,040 White 77.9% Black, African-American 13.1% Native American (Indian, Eskimo) 1.2% Asian 5.1% Hispanic or Latino 16.9% Foreign-born 12.8% Language other than English spoken in home 20.3% Per capita income $27,915 Median household income $52,762 Source: http://quickfacts.census.gov/qfd/states/00000.html Below poverty level 14.3%
- 8. Sheep meat is favored by the three major religions: Christian, Jewish, and Muslim. Religious affiliation Percentage among all U.S. adults Christian Protestant Catholic Mormon Jehovah’s Witness Orthodox 51.3 23.9 1.7 0.7 0.6 78.4 Other Jewish Buddhist Muslim Hindu Other 1.7 0.7 0.6 0.4 1.2 4.7 Unaffiliated 16.1 Don’t know/refused to answer 0.8 Source: http://religions.pewforum.org/reports
- 9. Determining population demographics • United States Census Bureau http://www.census.gov • Pew Research Center http://www.pewresearch.org • Faith in Communities Today http://faithcommunitiestoday.org • Allied Media Corporation http://www.allied-media.com • Other web sites via internet searches
- 10. Identify potential ethnic consumers • Determine population demographics. • Identify Mosques and Orthodox churches in your area. • Identify ethnic or foreign stores and businesses near to your farm. • Identify universities and colleges with ethnic or foreign faculty and students. • Don’t overlook doctors and other professionals as potential consumers of lamb and goat. • Identify farms and other businesses that employ seasonal, foreign, or immigrant labor.
- 11. Targeting ethnic consumers • Visit mosques, churches, and community centers. • Contact foreign student associations. • Make contacts at sale barns and slaughterhouses. • Advertise in ethnic media. • Put notices up at ethnic stores and businesses. • List your farm on available web sites. • Establish your own web site.
- 12. Marketing to ethnic consumers • Determine the type of lamb your customers want, when and how. (2nd webinar). • Evaluate marketing options (3rd webinar) • Develop a marketing and production plan (4th webinar) that ensures a profit.
- 13. Slaughter options for sheep and lambs • There are four levels of inspection in the U.S. 1) Federal (USDA) inspection 2) State-inspection 3) Custom-exempt 4) Personal exemption (i.e. on-farm slaughter) It may be necessary to facilitate slaughter for ethnic consumers: know the options.
- 14. Federally-inspected slaughter • Highest level of inspection. • No restrictions on sale of properly-labeled meat. • Extensive sanitary requirements for facility; HACCP plans required. • Pre and post-inspection of animal. • Access to federally-inspected slaughter may be limited in some locations. http://www.fsis.usda.gov Topics | Inspection | FSIS-Inspected Establishments: Meat and Poultry Inspection Directory
- 15. State-inspected slaughter • Federal-state partnership: state inspection must be “at-least equal” to federal inspection. Most state regulations mirror federal regulations. • Sale of meat is usually limited to sales within state of slaughter. • Only 27 states have state meat inspection programs. • Producers in states without state meat inspection are subject to federal regulations and any additional regulations imposed by their state or county. http://www.fsis.usda.gov Topics | Inspection | State Inspection and Cooperative Agreements
- 16. Custom-exempt slaughter • Exempt from continuous inspection. • There are sanitary requirements for slaughter facility and inspection requirements. • No pre or post-mortem inspection of animals. • Meat must be stamped “not for resale” and returned to owner for consumption by owner, family, nonpaying guests, and employees. • Be sure to sell a live animal when utilizing custom-exempt slaughter.
- 17. Personal exemption • Allows a farmer to slaughter an animal of his own raising. • No inspection of facility or animal. • Consumption of meat limited to farmer, family, non-paying guests, and employees.
- 18. • Most states consider the on-farm slaughter of an animal to be illegal except by the person who raised it (Illinois has added an ownership requirement of at least 30 days). • In particular, state regulators are opposed to allowing a buyer to slaughter an animal on the farm where it was purchased. • In reality, USDA and most states fail to address the legal rights of the buyer to slaughter his own animal; thus, leaving it open to interpretation. Does USDA’s personal exemption allow the buyer of a live animal to slaughter the animal for his own use?
- 19. Personal exemption comparison New York Vermont North Carolina • The owner of the animal is considered to be the owner when he/she purchases it. • Seller must sell a live animal and not assist in the slaughter in any way. • Recently passed a law that will allow the on-farm slaughter of up to 25 sheep (or 3,500 lbs. of an live animals). • Slaughter site must be sanitary and designed to prevent water pollution. • All slaughter must take place in an approved facility regulated by the North Carolina Department of Agriculture and Consumer Services. • Only exemption is for the person who raised the animal.
- 20. Be sure to know the laws in your own state and how they are interpreted and enforced. Potential sources of information • State Department of Agriculture • State Department of Health • County Health Department • USDA Food Safety & Inspection Service (FSIS) www.fsis.usda.org • State Extension Services • Niche Meat Processor Assistance Network @ eXtension.org
- 21. About religious slaughter • 1) Halal (Muslim) 2) Kosher (Jewish) • Religious or ritual slaughter is exempt from U.S. Humane Slaughter Laws. – Primary difference is that animals are not stunned prior to slaughter (however, animals should be properly restrained for slaughter). – It may also be necessary for a Muslim or Rabbi to perform the slaughter. • In some locales, there may be limited access to plants that perform religious (esp. certified) slaughter. • A Muslim may be able to perform Halal slaughter in some customexempt plants.
- 22. Humane (Halal) On-Farm Slaughter Poster available from www.sheepgoatmarketing.info: Education | Resources
- 23. Marketing lamb/mutton to ethnic consumers PROS • • • • • • • Growth market. Higher demand. Higher prices/profit possible. Ability to negotiate prices. Less price volatility. Less price sensitivity. May get feedback from consumers. • May be able to develop market(s) for less desirable animals (e.g. culls). • Can sometimes “hold” lambs without losing market acceptance. CONS • • • • • • • • Need to learn customs of different ethnic groups. Ethnic marketing opportunities will be limited by population demographics in region (ethnic groups tend to live in or near large urban centers). Language and cultural differences Dates of religious observances change each year. Demand is concentrated a few times during the year. Producers often flood the markets prior to religious observances, resulting in lower prices. Direct marketing can be time-consuming. May need to change the way you raise sheep (including breeds).
- 24. You may already be marketing your lambs to non-traditional (ethnic) markets.
- 25. Thank you for your attention. Questions? The next webinar will be held Tuesday, November 26 at 7 p.m. EST. The topic will be “Understanding the ethnic consumer.” The speaker will be Katherine Harrison from Blystone Farm and Butcher Shop in Ohio.