New Immigration Trends Grey Bruce

New Immigration Trends Present Opportunities for

Goat Producers

Jillian CraigSmall Ruminant Specialist,

OMAFRA

Consumer

Retailer / Wholesaler

Processor

Sale Barns

Goat Farmer

The Value Chain

Consumer

• According to the UN’s Food and Agricultural Organization, nearly 93% of all goat livestock are found in Asia and Africa. As such, an estimated 70% of the world’s population consumes goat meat as part of their regular diet.

• For Independence Day, Jamaican's want young, smelly 60 lb bucks and older animals are often in demand as well. (August 6)

• Goat meat (cabrito) is a traditional BBQ meal in Mexico.

• In France (chevon) is a delicacy.

Goat Meat

• Goat meat is highly sought after by the Chinese Community because in Traditional Chinese medicine, it contains hot energy that warms and powers your system & can help relieve blood stasis (poor circulation) & some heart problems. It is believed to expel toxins.

• Despite the demand, goat meat is barely a blip on Canada’s food radar.

Goat Meat

This is our marketplace: Who lives here?

Ethnic Groups• Hispanic• Muslim• Caribbean• Greek• Chinese• Italian• Jamaican & Filipino

Our customers & they call the GTA home

The Most Important People in Our Business

• 30.7% of the city’s 2011 population – 790,895 of a total population of 2,576,025 – arrived in the two decades before 2011.

• In 2013 Toronto had a total of 81,691 new permanent residents

• In 2011, 51% of Toronto residents were born outside of Canada.

• Markham has the highest proportion of visible minorities than any other city in the country at 72.3%– Brampton – 66.4%– Mississauga – 53.7%– Toronto 49.1%

Immigrants & their families are choosing Toronto

• Study: Understanding the Ethnic Market Opportunities for Veal, Goat, Lamb and Rabbit

– Funded by Ontario Veal, Ontario Sheep Marketing Agency, Ontario Rabbit, Ontario Goat and Growing Forward 2.

Understanding the Ethnic Market

About the Project

• Study conducted February to October, 2014.• Study included goat, lamb, veal and rabbit.• Objective – Better understanding the ethnic

market• Conducted:

– Literature/internet searches.– Seven focus groups (GTA).– 700 consumer surveys (@ 31 questions).– Interviews of market chain stakeholders – producers and some

processors.

About the Project (cont’d)

Six ethnic groupings created:

1. African (represented, in part, by new Canadians from Eritrea, Algeria, Morocco, Nigeria, Somalia, Ethiopia, and Cameroon).

2. Middle Eastern (included new Canadians from Iran, Syria, Egypt, Turkey, Armenia, and Afghanistan)

3. South Asian (this community encompasses Bangladeshi, Bengali, East Indian, Guan, Gujarati, Ismailia, Kashmiri, Nepali, Pakistani, Punjabi, Sinhalese, and Sri Lankan immigrants)

About the Project (cont’d)

4. South East Asian (Chinese, Japanese, Korean, Vietnamese, Cambodian, Malaysian, and Pilipino) 5. Caribbean (included new Canadians from Jamaica, Trinidad and Tobago, Barbados, Grenada, St. Vincent, Cuba, Saint Lucia, Dominican Republic and Haiti), and

6. European (Scottish, English, Irish, Welsh, Russian, Ukrainian, French, Italian, Portuguese, German, Greek, Polish, Swiss etc.).

• Certain ethnic groups in Ontario, like those from the Middle East, will more than double in size by 2031. Western Europeans will grow by only 2%

• Findings show some similarities amongst ethnic groups for: freshness, quality & price– But some differences in demand patterns such as

demand around ethnic holidays & choice of vendor

Understanding the Ethnic Market

• Inelastic demand for goat meat. – Decrease in the price of goat meat does not lead to

the purchase of more goat meat– Increase in the price does not result in a significant

decrease in goat meat demanded and purchased

• Goat meat is a relatively “high ticket” item in Ontario1. Ethnic households have a higher proportion of wage

earners than households of other consuming groups2. Immigrants are accustomed to paying more of their

discretionary income for food3. Regularly featured as holiday fare, (religious

celebrations) and cost is of less concern

Understanding the Ethnic Market

2nd & 3rd Generation Canadians with European Roots

• Beef: 30.0 kg/person/yr• Chicken: 27.4 kg/person/yr • Pork: 22.1 kg/person/yr• Veal: 1.36 kg/person/yr • Lamb .97 kg/person/yr• Goat .07 kg/person/yr

Ethnic Consumers• Ethnic groups surveyed consumed 6 to 10 times the

amount of mutton and goat consumed by average Canadians

• Would expect greater consumption of goat meat if it was made more available in supermarkets

• 60,265 goats were slaughtered in Canada yielding 15 kg of goat meat per goat

• Total domestic production 903,975 kg• 1,285,578 kg imported• Total Production: 2,189,553 kg per year

(Goat Supply at a Glance, Agriculture & Agri-Food Canada, YTD Sept 2015)

Goat Meat Stats: 2014

Imports

Factors Influencing Ethnic Goat Purchasing Behaviour

The reasons people purchase meat at the locations of their choice provide insights into the specific characteristics that they value

Preferences include:• Halal or Kosher assured• Flavour & Meat Colour• Freshness• Tradition• Price• Nutritional characteristics • Holidays & Special occasions• Availability of goat for purchase• Cut to specifications

The right goat, at the right weight, on the right day – Ethnic Holidays

Easter• Western Roman (Mar

27) and Eastern Orthodox (Greek) (May 1)

• Fleshy kids between 20 and 50 pounds (30 lbs)

• Milk-fed• Greeks prefer kids

slightly larger and well finished (35 lbs)

Passover• Jewish holiday (Apr 23)• 25 to 50 pounds• Milk-fed and fat• Kosher Rosh Hashanah• Jewish holiday (Oct 3)• 50 to 100 pounds• Kosher

Ethnic Holidays

Cinco de Mayo• Mexican

Independence day (May 5)

• 18 to 40 lbs. live weight

• Milk-fed kid for cabrito

• Goat is also served at baptismal dinners year-round

Navadurgara (also called Navratra Dashara or Dassai)• Hindu holiday

honouring the goddess Durga (Oct 1)

• Male goats only• Size depends on the

number of people being fed

Ethnic Holidays

Id al-Fitr (Feast of the Fast Breaking signaling the end of Ramadan)(July 6)• Breaking of the month-

long Ramadan fast practiced by Muslims Spans over 3 days.

• Male goats• 50 to 80 pounds live

weight (60 lbs)• Overly fat not accepted

Id al-Adha (Festival of Sacrifice)(Sept 12)• Muslim holiday follows

Id al-Fitr by 70 days• Must be Halal • Unblemished, fully

intact male goats• 60 to 100 pounds live

weight

Deliver what they want and you will be successful

Middle East curried goat

Moroccan spiced goat

Pulses (herbs & spices) are a very important part of preparing goat dishes

Indian Goat Curry

Retailer / Wholesaler

1. Establish retail locations in neighbourhoods dominated by certain ethnic populations

2. Merchandise ethnic products in a manner in which ethnic consumers are familiar

3. Feature cheaper price points than those found in convectional Canadian outlets (include ethnic stores in price check)

4. Build an in-depth understanding of the target market5. Offer demanded products on a permanent basis &

ensure shelves are well-stocked with familiar products to clientele

6. Employ a long term focus on ethnic consumers to create brand loyalty

Retail Strategy

• After local butcher shops, No Frills was the 2nd most common goat meat shopping venue for African, Caribbean, Middle Eastern, and South Asian meat shoppers. (Ethnic Market Study, 2015)

Retail / Wholesale

Retailers

Retailers

Retailers

Retailers

Is there a waiting market for goat meat? Definitely.

Processor

• Packer Perspective (Dec, 2015)– 60 lbs live weight– Castrated or intact– Want a little bit of fat cover– $2.20 / lbs x 60 lbs live weight = $132– Not enough goats to buy…need more to meet

demand

Processor Perspective

Carcass Categories

88 lbs live weight44 lbs carcass

50% Yield

Prime• Superior conformation

without regard to the presence of fat cover.

• Thickly muscled throughout

the body as indicated by a pronounced (bulging) outside leg, a full (rounded) loin and a moderately thick outside shoulder.

• Yield average: 50%

E. Bruce Shankle II, North Carolina Department of Agriculture & Consumer Services

Carcass Categories

79 lbs live weight37 lbs carcass

46.8% YieldE. Bruce Shankle II, North Carolina Department of Agriculture & Consumer Services

Good• Average conformation

without regard to the presence of fat cover.

• Moderately muscled throughout the body as indicated by a slightly thick and a slightly pronounced outside leg, a slightly full loin, and a slightly thick to slightly thin outside shoulder.

• Yield average 47%

Carcass Categories

50 lbs live weight20 lbs carcass

40% Yield

E. Bruce Shankle II, North Carolina Department of Agriculture & Consumer Services

Utility• Inferior conformation without

regard to the presence of fat cover.

• The legs, back and shoulders are narrow in relation with its length and they have a very angular and sunken appearance.

• Yield average: 40%

Carcass Categories

Meat Colour:Adult Bucks: generally dark carcass

Kid Goat Carcass: Lean colour is observed on the inner portion of the flank muscle. The amount of pigments in the muscle increase with animal age resulting in a darker colour. Younger kid goats have a light, grayish pink flank.

Goat meat consumers indicate a preference for meat with a lighter colour.

Sale Barns

2014 Kid Prices

17-Ja

n-14

29-Ja

n-14

10-Feb

-14

22-Feb

-14

6-Mar-

14

18-M

ar-14

30-M

ar-14

11-A

pr-14

23-A

pr-14

5-May

-14

17-M

ay-14

29-M

ay-14

10-Ju

n-14

22-Ju

n-14

4-Jul-

14

16-Ju

l-14

28-Ju

l-14

9-Aug

-14

21-A

ug-14

2-Sep

-14

14-S

ep-14

26-S

ep-14

8-Oct-

14

20-O

ct-14

1-Nov

-14

13-N

ov-14

25-N

ov-14

7-Dec

-14

19-D

ec-14

31-D

ec-14

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

Price of Kids 35-49 lbs per Head at OSI - 2014

Low PriceHigh Price

2015 Kid Prices

9-Jan-15

9-Feb-15

9-Mar-15

9-Apr-15

9-May-15

9-Jun-15

9-Jul-159-Aug-15

9-Sep-15

9-Oct-15

9-Nov-15

9-Dec-15

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00Price of Kids 35-49 lbs per Head at OSI: 2015

Low High

2014 Kid Prices

17-Ja

n-14

29-Ja

n-14

10-Feb

-14

22-Feb

-14

6-Mar-

14

18-M

ar-14

30-M

ar-14

11-A

pr-14

23-A

pr-14

5-May

-14

17-M

ay-14

29-M

ay-14

10-Ju

n-14

22-Ju

n-14

4-Jul-

14

16-Ju

l-14

28-Ju

l-14

9-Aug

-14

21-A

ug-14

2-Sep

-14

14-S

ep-14

26-S

ep-14

8-Oct-

14

20-O

ct-14

1-Nov

-14

13-N

ov-14

25-N

ov-14

7-Dec

-14

19-D

ec-14

31-D

ec-14

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Price of Kids 50-75 lbs per Head at OSI - 2014

Low PriceHigh Price

2015 Kid Prices

9-Jan-15

9-Feb-15

9-Mar-15

9-Apr-15

9-May-15

9-Jun-15

9-Jul-159-Aug-15

9-Sep-15

9-Oct-15

9-Nov-15

9-Dec-15

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

Price of Kids 50-75 lbs per Head at OSI: 2015

Low High

Goat Supply At A Glance

Source: Agriculture & Agri-Food Canada, Sept 2015

Goat Farmer

• Know your market and work backwards so you can produce the desired goat

• When will you market? (year-round, specific ethnic holidays, seasonally)

• What is the desired end weight and finish?

Know Your Market

Know your customers’ needs

• Educate yourself about the groups to which your goats are going to be sold

• Similar to the Hispanic tradition of serving goat at a child’s baptismal, Muslims also slaughter a goat to honour the birth and naming of children

Know your customers’ needs

• Many producers with a limited knowledge of Islam often sell all their goats for Ramadan, missing another important opportunity. Approximately 70 days after Ramadan falls the second Eid-Id al-Adha (Festival of the Sacrifice). Muslims in Pakistan & India also refer to this holiday as ‘Goat Eid’ as it is traditional to slaughter a goat and give a third of the meat to the poor.

• Consumer puts money into the sector; most important part of the chain

• Anything produced has a home, and the whole goat is utilized

• Strong market for dairy buck kids

Summary

Consumer

Retailer / Wholesaler

Processor

Sale Barns

Goat Farmer

The Value Chain

Special Thank You:Ontario Goat

Thank You

Jillian CraigSmall Ruminant SpecialistLindsay OMAFRA Office322 Kent Street West, Lindsay, ONK9V 4T7705-324-5856jillian.craig@ontario.ca