Agriculture Reference
In-Depth Information
other producers to meet market objectives such as main-
taining a consistent supply (McKenzie, 2007). If the pro-
ducer's goal is to increase income from the enterprise, this
can be achieved by moving up the value chain by including
processing as a component of the overall market plan.
not only in the growing ethnic consumer population, but
also in the traditional American consumer markets.
Producers aiming to increase penetration in traditional
American markets should make efforts to structure their
goat product portfolios to include items similar to those
found in other meat markets, such as ground meat, sau-
sages and roasters, or cheese, yogurt, or cream.
It is worthwhile to briefl y touch on differences in the
cabrito and chevon markets. The production of cabrito, or
high quality goat kid meat, may draw higher prices.
Alternately, chevon, meat from larger carcasses, may
appeal to retailers, cruise lines, specialty food stores, and
restaurants. When considering these two products, it is
important to become familiar with and breed according to
the cultural calendars in order to maximize sales to ethnic
consumers.
Marketing outlets for value-added products targeting
nontraditional consumer groups include upscale restau-
rants, health food outlets, delis, and supermarkets that
carry specialty food for the “health conscious” consumer.
Test the market for novel goat meat products to these
outlets including sausages, traditional retail chops, steaks,
as well as precooked roasts and loaves. On the other hand,
current or new goat meat producers should consider the
economics of processing and packaging operations near
goat-producing areas with distribution of refrigerated and
frozen goat products to distant outlets. They may also fi nd
it worthwhile to consider the option of processing and
contract the growth of slaughter goats in conjunction with
forward contracting of products to wholesale and retail
outlets. With appropriate modifi cations, the current struc-
ture of the broiler and turkey industry may serve as a model
for goat marketing in this manner (Ollinger et al., 2005).
Value - Added Products and Niche Marketing
A strategy of providing value-added products through
niche marketing likely offers the greatest overall profi t
margin and allows for more consistent year-round revenue.
However, the cost of equipment and the complexity associ-
ated with market development may discourage some
producers (Gipson, 1996).
Agricultural producers, including goat producers,
receive a much smaller portion of the end consumer's
dollar when compared to food processors. Capturing the
value-added dollars represents a profi table way for produc-
ers to maximize returns. Adding value to an agricultural
product means changing the product and taking it to the
next level, closer to a consumer product. It simply means
that instead of selling 90-day-old weaned kids at auction,
the producer keeps the ownership in those kids until they
are processed and reach consumers, thus getting a higher
price. In this system of marketing, goat producers maintain
ownership of the goats, conduct the slaughtering and pro-
cessing operations, and capture value through the direct-
to-consumer sale of various meat cuts, sausage links, or
patties. This method may also include the direct sale of
value-added specialty meat products, cheeses, and possibly
skin, tongue, and viscera where demand is present.
In Texas, many value-added agribusinesses have been
found to average more than 60% return on product assets.
Many have less than fi ve employees and carry out less than
25,000 kg of meat sales per year (about 1,250 goats slaugh-
tered per year or less than 25 goats processed per week).
These agribusinesses are located in rural areas and cater
specifi cally to the demands of local populations. Not sur-
prisingly, these smaller farms have been shown to be more
profi table than comparable larger farms due to their success
in developing sound business plans based on market
feasibility studies that they have conducted on their local
markets.
A successful value-added entrepreneur will adapt to
change, be open to new ideas and opportunities, and effec-
tively manage internal and external resources (Anderson
and Hall, 2009). Value-added goat meat or milk products
may represent a bright future for the goat industry, pro-
vided that U.S. goat producers maintain a strong competi-
tive advantage in areas where import markets are growing.
Goat products should strive to increase their attractiveness
Internet Marketing
The Internet represents a tremendous opportunity to bolster
sales of goat meat, cheese, or other products in the future.
However, pursuing sales through this outlet imposes
certain requirements that should be noted. In the U.S.,
Internet-based sales require that goats be slaughtered
according to the USDA guidelines in federally inspected
slaughterhouses. Carcasses that are not processed in a fed-
erally inspected slaughterhouse cannot cross state lines or
be marketed in other states. Before pursuing this avenue,
producers must ensure that facilities are readily available
and cost effective. Additionally, goat milk products sold
through the Internet must be processed in state or federally
inspected units.
The unit producing meat or dairy products for Internet
sale should be operated under USDA Hazard Analysis and
