New Immigration Trends Present Opportunities for

Sheep ProducersJillian Craig, Small Ruminant Specialist, OMAFRA

& Marc Carere, Sheep Farmer, OSMA Vice Chair

Consumer

Retailer / Wholesaler

Processor

Sale Barns

Sheep Farmer

The Value Chain

Consumer

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

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

• 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 the Ontario Sheep Marketing Agency, Ontario Veal, Ontario Rabbit, Ontario Goat and Growing Forward 2.

Understanding the Ethnic Market

About the Project

• Study conducted February to October, 2014.• Study included lamb, goat, 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

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

Consumption Pattern for MeatEthnic groups surveyed consumed 6 to 10 times the amount of mutton and goat consumed by average Canadians

Consumption Pattern

Sheep Flock• National flock remains static with breeding flock decreasing 1 per cent

to 560,800– In January 2004 Canada saw its largest ewe flock at 621,800

• Ontario is home to Canada’s largest ewe flock with 177,400; followed by Quebec with 142,100 and then Alberta with 90,500

• In 2014, 743,100 sheep were processed in Canada• The Canada sheep industry contributes over $900 million to Canada’s

economy

Lamb Market• Ontario is the fourth largest market for lamb processing in North

America; behind Colorado, California and Iowa• 51% of all the lamb processed in Canada is slaughtered in Ontario• 55% of all lamb imported to Canada is imported and consumed in

the GTA

(Ontario Sheep Marketing Agency, 2014 Canadian Sheep Industry Profile)

Sheep Statistics 2014

Trade• In 2014 Canada imported over 18 million kg of lamb worth

more than $165 million– 56% of imports came from New Zealand– 42% came from Australia– the remaining came from Iceland, Ireland, the United

Kingdom, the United States and Uruguay• Canada exported 39,457 kg of lamb worth $222 thousand in

2014 Growing Demand• Canadian shepherds only supply 42% of the domestic market for lamb 

(Ontario Sheep Marketing Agency, 2014 Canadian Sheep Industry Profile)

Sheep Statistics 2014

Imports

Food characteristics they value

• Purchase at local trusted butchers to be sure that the lamb is either Halal or Kosher

• Lamb must be fresh & clean• Trust & confidence in the owners and staff• Selection & availability of cuts that they

want• Meat colour and smell (light & not smelly)• Price

Buyer Segment: Quality-First

• Primarily of East European Muslims• Preference to young, lightweight, lean lambs

but will settle for something else if the lamb they want is not available.

• The lamb must be fresh, clean and of good quality & pork must be segmented from other meats.

• Jewish & Western European lamb consumers (Greeks, Italians) also included in this segment.

Buyer Segment: Price-First

• Primarily Asian Muslims• Freshness & cleanliness still important• Not loyal to suppliers• Expect the supplier to negotiate price• More flexible on age & size of carcass• Must be Halal assured• Hispanic, Chinese & Jamaican lamb consumers

tend to be in this segment

Religious & Ethnic Holidays & Demand for Lamb Meat

Islamic HolidaysStart of Ramadan – Month of Fasting (June 6)• Weaned market lambs 60-80 lbs. are preferred

Eid ul Fitr – Festival of Fast Breaking (July 6)• Most desired lambs are between 60-80 lbs. live weight• Males are preferred • Blemish free

Eid ul-Adha – Festival of Sacrifice (Sept 12)• The traditional lamb is a yearling although large lamb &

older sheep are also used• Blemish free• Age is the main concern & weight is ideally between 60-80

lbs.

Religious & Ethnic Holidays … continued

Islamic Holidays

Muharram/Islamic New Year (Oct 2)• Mutton is one of the dishes for this festival• No restriction of age or weight• The animal must be healthy and good looking

Mawlid al-Nabi – Prophet’s birthday (Dec 12)• The Halal slaughtering is the acceptable way of

processing• No indication of specific age, sex or weight

Religious & Ethnic Holidays … continuedJewish Holidays

Passover (Apr 23)• Preferences are for lambs of 30-55 lbs live weight that

are milk fed and fat• Meat is prepared by Kosher slaughter

Rosh Hashanah (Oct 3)• Forequarters from weaned lambs 60-110 lbs.

Hanukkah (Dec 24)• Lambs milk fed, 30-55 lbs. live weight, fat & prepared

by Kosher method of slaughter

Religious & Ethnic Holidays … continued

Easter• Western Roman (Mar 27)

– 30-45 lbs. live weight, milk fed & fat

• Eastern Orthodox (May 1) – 40-55 lbs. live weight, milk fed & fat

HinduDashara/ Navadurgara (Oct 1)• Male lambs• Carcass size varies

ChristianChristmas (Dec 25)• Milk fed lambs are

preferred• Prime lamb

Chinese holidays through the year• Primarily the six colder

months of the year• 60-80 lbs. live weight and

in good health

Deliver what they want and you will be successful

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

Retailers

Retailers

Retailers

Retailers

Is there a waiting market for lamb meat? Definitely.

Processor

• Prime, Good and Utility

• Room for every quality-Prime lamb would be going to a

retailer such as Longos-Utility lamb would be desired by

ethnic markets, at plant or local butcher shops

• Trust is important

Carcass Categories

111 lbs live weight 68 lbs dressed weight (head on pluck in)61% yieldPrime Lamb

97 lbs live weight 50 lbs dressed weight(head on pluck in)51.5% yield

Sale Barns

Sheep Farmer

Tapping Ethnic/Religious Markets –Public Livestock Auction

Advantages

• Convenient• Regular sales (weekly)• Requires minimum effort• Sell based on ‘certified’

weight• Prompt payment• Guaranteed payment• Price discover

Disadvantages• Price is not known in

advance• No control over price, you

are a “price-taker”• Wide fluctuations in price• Must pay sales commission

and other fees (varies by sales barn)

• Transportation costs• Shrink (weight loss during

transport)

Tapping Ethnic/Religious Markets – Direct to Processor

Advantages

• Price is known ahead of time

• Less fluctuation in price• Longer term pricing possible• Sell carcass instead of live

animal, value-based marketing

• Producer feedback on carcass

Disadvantages

• Must guarantee supply• Must guarantee quality• Prices may be higher

elsewhere• Payment/credit risk• Difficult for individual

producers to do, unless they are part of a marketing co-op

Tapping Ethnic/Religious Markets – Farm Gate Sales

Advantages

• You set your own price• Maximum price potential• Can sell by weight or head• No commission cost

Disadvantages

• It is illegal to allow slaughter on farm, you must take the animal to a provincially or federally inspected plant

• Can be time consuming• Can be cultural difference• Some customers like to

bargain• Possible language barrier• Loss of privacy

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

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

• What is the desired end weight and finish?

• Have to know your own limitations• Breed (frame size & weight)• Infrastructure • Accelerated vs. annual

Know Your Market

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

• Anything produced has a home, and the whole lamb / sheep is utilized

• Understand your cost of production

• Know what you are trying to produce

Summary

Consumer

Retailer / Wholesaler

Processor

Sale Barns

Sheep Farmer

The Value Chain

Special Thank You:Ontario Sheep Marketing Agency

Thank You

Marc CarereSheep FarmerOSMA Vice Chair

Jillian CraigSmall Ruminant

Specialist705-324-5856

jillian.craig@ontario.ca