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 Front Cover
 Title Page
 Abstract
 Center information
 Table of Contents
 Acknowledgement
 Introduction
 Objectives
 Procedure
 Findings
 Conclusions and recommendation...
 Reference














Group Title: Report - Florida Agricultural Market Research Center ; 99-2
Title: Florida market for goat meat : 1999 survey of Florida meat wholesalers
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 Material Information
Title: Florida market for goat meat : 1999 survey of Florida meat wholesalers
Series Title: Report - Florida Agricultural Market Research Center ; 99-2
Physical Description: Book
Language: English
Creator: Degner, Robert L.
Moss, Susan D.
Publisher: Florida Agricultural Market Research Center, University of Florida
Publication Date: 1999
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Bibliographic ID: UF00027553
Volume ID: VID00001
Source Institution: University of Florida
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Table of Contents
    Front Cover
        Front Cover
    Title Page
        Page i
    Abstract
        Page ii
    Center information
        Page iii
    Table of Contents
        Page iv
        Page v
    Acknowledgement
        Page vi
    Introduction
        Page 1
    Objectives
        Page 1
    Procedure
        Page 2
    Findings
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
    Conclusions and recommendations
        Page 12
        Page 13
        Page 14
        Page 15
    Reference
        Page 16
Full Text































































SDOC
100
F637fi
99-2











The Florida Market for Goat Meat:
1999 Survey of Florida Meat
Wholesalers



FAMRC Industry Report 99-2
November 1999



by
Robert L. Degner
Susan D. Moss



By the Florida Agricultural Market Research Center
Food and Resource Economics Department
Institute of Food and Agricultural Sciences
University of Florida, Gainesville, FL 32611








ABSTRACT

Out of 236 meat wholesalers in the state of Florida in 1999, 18 percent were
found to sell goat meat. The most common reason for not selling goat meat was the lack
of demand. Frozen carcasses and primals are the most common forms of goat meat
product handled by Florida meat wholesalers and about 60 percent comes from Australia
and about 33 percent from New Zealand. More than 75 percent of weekly wholesale
goat meat is shipped out of Florida. Ethnic restaurants make up 63 percent of the demand
for goat meat sold in Florida, followed by independent retailers with 25 percent, while
individuals buy about 9 percent. Wholesalers indicated no problems with obtaining
enough goat meat, and very few quality problems. Findings contrasted with a similar
study conducted in 1986 showed that the number of Florida meat wholesalers handling
goat meat has risen from 15 percent in 1986 to 18 percent in 1999. Since the 1986
survey, whole frozen carcasses have emerged as the leading product form, while whole
fresh carcasses and frozen primals have declined. Domestic retail distribution has
increased from 52 percent to 63 percent for grocers, and from 6 percent to 9 percent for
individuals. Restaurant distribution declined from 32 percent in 1986 to 28 percent in
1999.

Prices paid by meat wholesalers have declined significantly over the past decade,
especially for frozen carcasses and primals. In constant dollars terms, the weighted
average price paid by meat wholesalers for all forms of goat meat declined by nearly 17
percent between 1986 and 1999. This price decline is thought to reflect lower producer
prices. Part of the price reduction has been passed along to wholesalers' customers;
prices received by meat wholesalers have declined by about nine percent over the same
period.

Fresh goat carcasses command a significant premium over frozen carcasses and
primals, about $1.10 per pound. However, the total market for fresh carcasses is quite
small. Florida goat producers have a comparative advantage in serving the market for
fresh carcasses, but attention must be devoted to reducing slaughtering costs and toward
market development.

Keywords: goat meat, goat meat wholesalers, goat meat demand, chevon, cabrito









FLORIDA AGRICULTURAL MARKET
RESEARCH CENTER


The Florida Agricultural Market Research Center is a service of the Food and
Resource Economics Department. Its purpose is to provide timely, applied research on
current and emerging marketing problems affecting Florida's agricultural and marine
industries. A basic goal of the Center seeks to provide marketing research and related
information to producer organizations, trade associations, and governmental agencies
concerned with improving and expanding markets for Florida's agricultural and marine
producers.

Client organizations are required to pay direct costs associated with their research
projects. Such costs include labor for personnel and telephone interviewing, mail
surveys, travel, and computer analyses. Professional time and support is provided to
organized producer groups at no charge by IFAS.

Professional agricultural economists with specialized training and experience in
marketing participate in every Center project. Cooperating personnel from other IFAS
units are also involved whenever specialized technical assistance is needed.

Dr. Robert L. Degner, Director
Florida Agricultural Market Research Center
1083 McCarty Hall
University of Florida
Gainesville, Florida 32611-0240
(352) 392-1871 (Voice)
(352) 392-1886 (Fax)
DEGNER(FRED.IFAS.UFL.EDU (E-mail)










TABLE OF CONTENTS



LIST OF TABLES ............................................................. .. ............... ...... ......................... v

LIST OF FIGURES............................................................................... ........................................... v

ACKNOW LEDGM ENTS ............................................. ................................................................. vi

INTRODUCTION.................................................... 1

OBJECTIVES................................................ ............ ............................................................. 1

PROCEDURE............................................................................... ..................................................... 2

FINDINGS................................................................. ........................................................................ 2

Availability of Goat M eat ................................................................................................ ............... 2

Product Form ............................................................................................................... .................. 4

W wholesale Volume and Prices............................................................................................................... 5

Origin of Supply............................................................................. ......................................... 6

Distribution Channels......................................................................................... ............................ 7

Supply and M marketing Problems ........................................... ................................................. 11

Summary of 1986 Study Results Compared to 1999...................... ........................ 11

CONCLUSIONS AND RECOMMENDATIONS............................................... 12

REFERENCES ................................................................................................... ............................. 16










LIST OF TABLES


Table 1. Proportion of meat wholesalers selling goat meat, 1986 sample, 1999 sample, and 1999 total

estim ates........... ............................................................................. .. ........................................ 3

Table 2. Reasons cited for discontinuing goat meat sales................................................ 3

Table 3. Reasons for never selling goat meat, 1999 sample and 1999 total wholesaler estimate................. 4

Table 4. Product forms handled by full-time goat wholesalers .............................. ........................ 5

Table 5. Pounds, cost per pound, total cost, average price received, and total dollar sales, by product form.
.........................................................................................................................................................6

Table 6. Wholesale sources of various product forms of goat meat, estimated from the 1999 survey.......... 7

Table 7. Distribution of weekly wholesale goat meat in Florida and shipment out of Florida, by carcass

type, for the study sam ple. ......................................................... ............................... 8

Table 8. Distribution of weekly wholesale goat meat in Florida and shipment out of Florida, by carcass

type, estimated for the state of Florida.......... ....... ......... ............................. .............................. 8

Table 9. Estimated wholesale shipments of goat meat to retail establishments in the State of Florida, 1999.

............... .................................................................................................................... . 8

Table 10. Comparison of 1986 vs. 1999 goat marketing studies (South FL & Marion County). .............. 12

Table 11. U.S. per capital consumption of selected meat items, 1986 and 1998...................................... 13







LIST OF FIGURES


Figure 1. Distribution of fresh goat carcasses to retail outlets in Florida ................................... 10

Figure 2. Distribution of frozen goat primals to retail outlets in Florida ...................... .............. 10

Figure 3. Distribution of frozen goat carcasses to retail outlets in Florida .............................. 10








ACKNOWLEDGMENTS

The authors are indebted to Mr. Claude McGowan, Director of the Statewide Goat

Program, for his persistent and capable administration of this collaborative project

between Florida A&M University and the University of Florida. Gratitude is also

expressed to Dr. Stephen Leong, Professor, FAMU, for his constructive insights during

the course of this study.

We also express our appreciation to Mr. Kevin Byndloss for his untiring efforts in

interviewing meat wholesalers throughout the state. Finally, we are especially grateful to

the managers and owners of the cooperating meat wholesaling firms. Without their

cooperation, this study would not have been possible.








INTRODUCTION



On-going research at Florida A&M University over the past several decades has

shown that goats can provide a profitable and sustainable source of income for small-

scale farmers in Florida's rural communities. However, the Statewide Advisory Council,

which represents goat producers throughout the state, identified development of an

organized marketing infrastructure to distribute goat products from the "farm" to the

consumer as one of its top priorities. Development of a more effective marketing

infrastructure was identified as Objective 1 of the Five Year Plan of Work for the

Statewide Goat Program for the 1999-2004 period.

This study should contribute to developing a more efficient infrastructure by

identifying elements in the existing commercial marketing system that are effectively

marketing goat products, and by discovering impediments to present marketing activities

and possible solutions to current marketing problems. This research is needed because

previous research that addressed these issues was conducted over 10 years ago (Degner

and Locascio, 1988).



OBJECTIVES


The basic objective of this research is to improve the marketing of goat meat

products to benefit Florida's goat producers. Specific objectives are to:


(1) Identify the current commercial distribution channels of goat meat products in

Florida.








INTRODUCTION



On-going research at Florida A&M University over the past several decades has

shown that goats can provide a profitable and sustainable source of income for small-

scale farmers in Florida's rural communities. However, the Statewide Advisory Council,

which represents goat producers throughout the state, identified development of an

organized marketing infrastructure to distribute goat products from the "farm" to the

consumer as one of its top priorities. Development of a more effective marketing

infrastructure was identified as Objective 1 of the Five Year Plan of Work for the

Statewide Goat Program for the 1999-2004 period.

This study should contribute to developing a more efficient infrastructure by

identifying elements in the existing commercial marketing system that are effectively

marketing goat products, and by discovering impediments to present marketing activities

and possible solutions to current marketing problems. This research is needed because

previous research that addressed these issues was conducted over 10 years ago (Degner

and Locascio, 1988).



OBJECTIVES


The basic objective of this research is to improve the marketing of goat meat

products to benefit Florida's goat producers. Specific objectives are to:


(1) Identify the current commercial distribution channels of goat meat products in

Florida.







(2) Estimate the quantities of goat meat flowing through commercial market channels

in Florida.

(3) Determine product forms and sources of goat meat flowing through commercial

market channels.

(4) Identify product quality problems and other marketing problems, if any, that may

adversely affect the Florida goat industry's market development efforts.



PROCEDURE


The State Business Directory: Florida (American Business Information, Inc.,

1999) was used to identify meat wholesalers currently operating in the state of Florida A

random sample of 100 firms was contacted by telephone and firm managers were

interviewed to determine the current availability of goat meat, usual sources and relative

quantities obtained, preferred product forms, and typical distribution patterns by type of

retail outlet and geographic area. The data were analyzed and findings are presented

below.



FINDINGS


Availability of Goat Meat


The proportion of meat wholesalers selling goat meat in the state of Florida in

1999 is roughly 18 percent (Table 1), slightly higher than the 14.6 percent reported in the

1986 study. Those wholesalers that previously sold goat meat but had discontinued







(2) Estimate the quantities of goat meat flowing through commercial market channels

in Florida.

(3) Determine product forms and sources of goat meat flowing through commercial

market channels.

(4) Identify product quality problems and other marketing problems, if any, that may

adversely affect the Florida goat industry's market development efforts.



PROCEDURE


The State Business Directory: Florida (American Business Information, Inc.,

1999) was used to identify meat wholesalers currently operating in the state of Florida A

random sample of 100 firms was contacted by telephone and firm managers were

interviewed to determine the current availability of goat meat, usual sources and relative

quantities obtained, preferred product forms, and typical distribution patterns by type of

retail outlet and geographic area. The data were analyzed and findings are presented

below.



FINDINGS


Availability of Goat Meat


The proportion of meat wholesalers selling goat meat in the state of Florida in

1999 is roughly 18 percent (Table 1), slightly higher than the 14.6 percent reported in the

1986 study. Those wholesalers that previously sold goat meat but had discontinued









selling it amounted to only four percent in 1999 compared to seven percent in 1986,

About three-fourths reported never having sold goat meat in both studies. In 1999, two

percent reported selling goat meat to other wholesale suppliers. The 1999 survey found

that those currently selling goat meat have done so for 12 years, on average.


Table 1. Proportion of meat wholesalers selling goat meat, 1986 sample, 1999 sample, and 1999 total
estimates.
1986 sample 1999 sample 1999 estimate'
number percent number percent number

Currently selling goatb 24 14.6 18 18.0 42
Previously sold 12 7.3 4 4.0 9
Never sold 128 78.0 76 76.0 179
Sell goat meat to other suppliers 0 0.0 2 2.0 5

Total 164 100.0 100 100.0 236
a1999 total estimates are simply the sample percentages applied to the total number of meat wholesalers
listed in The State Business Directory: Florida.
bThe 1999 survey found that those currently selling goat meat have done so for an average of 12 years.


Wholesalers that had discontinued goat meat sales cited insufficient demand as

the prevalent reason in both 1986 and 1999 (Table 2). Half did so in 1986 and two-thirds

in 1999. Supply problems were also commonly cited in both studies but to a lesser extent

in 1999. One-third of 1999 respondents said they usually do not carry goat meat, but they

do fill special orders for it.


Table 2. Reasons cited for discontinuing goat meat sales.
1986 sample 1999 sample 1999 estimate
number percent number percent number

Insufficient demand 6 50.0 2 50.0 5
Supply problems 5 41.7 1 25.0 2
Cheaper substitutes 4 33.3 0 0.0 0
Product Form 1 8.3 0 0.0 0
Filled special orders only 0 0.0 1 25.0 2

Total 12 100 0 4 100.0 9
I I q I I I I h ltt [ I I I I I I I III I I I I I I II [ II I I III . .









Reasons for never selling goat meat or for ceasing were cited by 1999 survey

respondents and are reported in Table 3. Reasons include insufficient demand (72.5

percent), not their product line (18.8 percent), lack of interest (5 percent), and insufficient

demand and lack of interest (2.5 percent). On average, these 80 firms, which have never

sold goat meat, reported receiving less than one request for goat meat each month.


Table 3. Reasons for never selling goat meat. 1999 sample and 1999 total wholesaler estimate.
1999 sample 1999 estimate
number percent number
Insufficient demand 58 72.5 137
Wholesaler lacked interest 4 5.0 9
Insufficient demand & lack of interest 2 2.5 5
Not compatible with their product line 15 18.8 35
No response 1 1.3 2

Total never selling plus those who quit" 80 100.0 189
'On a\ erage, the 80 firms ne' er selling goat meat reported less than one request for goat meat per month.
About 83 percent reported never receiving requests for goat meal


Product Form


The 1999 survey showed fewer different product forms than in 1986. None of the

wholesalers reported handling live animals or processing efforts to dice, cube or split the

carcasses. The three product forms reported were fresh carcasses, frozen carcasses and

frozen primals

The frozen carcass, averaging about 36 pounds, was the most common goat meat

product handled by wholesalers in 1999, accounting for 85.9 percent of the total tonnage

(Tables 4 and 5). Frozen primals were a distant second with about 12.8 percent, and

fresh whole carcasses, third with only 1.3 percent of the total volume (Table 5). About

55 percent of wholesalers handled frozen carcasses only, and 16 percent handled frozen








primals only. Wholesalers handling some combination of fresh whole and frozen whole

carcasses comprised 12 percent of those handling goat products and wholesalers handling

a combination of frozen primals and frozen carcasses made up another 12 percent. Only

five percent reported handling fresh carcasses exclusively (Table 4).


Table 4. Product forms handled by full-time goat wholesalers.
Type of carcass handled Number Percent

Frozen carcasses only 23 54.8
Frozen primals only 7 16.7
Fresh whole & frozen carcasses 5 11.9
Frozen carc. & frozen primals 5 11.9
Fresh whole only 2 4.8
Total 42 100.0
STotal percent does not sum to 100.0 due to rounding.



Wholesale Volume and Prices


In total, meat wholesalers in the state of Florida were estimated to handle 174,000

pounds of goat meat per week in 1999 (Table 5). The overall average cost per pound to

the wholesaler was $1.19 and the average price received per pound was $1.49. In real

terms (adjusted for inflation) prices paid and received for goat meat by Florida

wholesalers has declined significantly since the previous UF study was conducted

(Degner and Locascio, 1988). In 1986, meat wholesalers paid the equivalent of $1.43 per

pound for all types of goat meat, verses $1.19 in 1999; this represents a decline of nearly

17 percent. As for prices received, wholesalers got approximately $1.64 per pound in

1986 compared to $1.49 in 1999, a 9.2 percent decrease. Fresh carcasses account for

only 1.3 percent of tonnage, but represent about 2.7 percent of weekly goat meat dollar

sales. At a cost of $2.29 per pound to the wholesaler and a resulting $3.12 per pound

wholesalers' customers, the fresh carcass market may be Florida producers' best








opportunity. It appears unlikely that Florida can produce, slaughter, freeze and transport

goat carcasses or primals for the $1.16 $1.18 prices reported for frozen primals and

carcasses Wholesalers received $1.48 per pound of frozen carcass, on average and $1.40

per pound for frozen primals (Table 5).



Table 5. Pounds. cost per pound, total cost. average pnce received, and total dollar sales, by product form

TIpe Lbs./wk Avg. cost/lb. Total cost Price rec'd per lb Total sales
(------------------. Dollars-------------------)
Fresh carcass 2,240 2.29 5,130 3.12 6,989
Frozen carcass 149,800 1.18 176,764 1.48 221,704
Frozen pnmals 22,365 1.16 25,943 1.40 31,311

Total 174.405 1 19 207.837 1.49 260.004




Origin of Supply



On a total volume basis, more than 99 percent of goat meat received by Florida

meat wholesalers in 1999 was from out-of-state (Table 6). In 1986, this number was

reported at about 95 percent In 1999, about 60 percent was obtained from Australia and

one-third from New Zealand Texas was the primary source of domestic goat meat,

contributing about seven percent of Florida's supply. Frozen primals are exclusively

shipped from Australia and New Zealand. Fresh whole carcasses, while small in volume,

are about evenly split from Florida, Texas and Chicago sources. The relatively small

quantity of fresh carcasses obtained from "Chicago" may actually originate in Australia,

although this could not be verified. Florida accounted for less than one percent of total

weekly goat meat volume, but about one-third of the whole fresh carcasses handled

(Table 6).











Table 6. Wholesale sources of various product forms of goat meat, estimated from the 1999 survey.
Product form/Sources Pounds per week Percent

Whole fresh carcasses
Florida 782 34.9
Chicago 758 33.8
Texas 700 31.3
Total 2,240 100.0

Frozen carcasses
Australia 91,254 60.9
New Zealand 57,248 38.2
Texas 1,050 0.7
Florida 248 0.2
Total 149,800 100.0

Frozen primals
Australia 12,448 55.7
Texas 9917 44.3
Total 22,365 100.0

All forms
Australia 103,702 59.5
New Zealand 57,248 32.8
Texas 11,667 6.7
Florida 1,030 0.6
Chicago 758 0.4
Total 174,405 100.0




Distribution Channels



The 1999 survey showed approximately 76 percent of the goat meat volume

reported by the Florida firms in this study was shipped out of state (Table 7). Frozen

carcasses and frozen primals shipped out of Florida accounted for 76 percent and 82

percent of total frozen carcass and frozen primal volume, respectively. Fresh carcasses

were never reportedly shipped out. Table 8 shows the weekly distribution of wholesale

goat meat estimated for the state of Florida.











Table 7 Distribution of weekly wholesale goat meat m Florida and shipment out of Florida. by carcass
type, for the study sample
Carcass type Total Pounds sold Percent sold Pound sold outside Percent sold
pounds sold in Florida in Florida Florida outside Florida

Fresh carcasses 960 960 100.0 0 0.0
Frozen carcasses 64,200 15,563 24.2 48,637 75.8
Frozen primals 9,585 1,735 18.1 7,850 81.9

Total 74.745 18.258 24 4 56.487 75 6





Table 8. Distribution of weekl.h wholesale goat meat in Flonda and shipment out of Florida, b) carcass
type. estimated for the state of Florida.
Carcass type Total Pounds sold Percent sold Pounds sold Percent sold
pounds sold in Florida in Florida outside Florida outside Florida

Fresh carcasses 2,240 2,240 100.0 0 0.0
Frozen carcasses 149,800 36,314 24.0 113,486 75.8
Frozen primals 22,365 4,048 18.0 18,317 81.9

Total 174.405 42.602 24 4 131.803 75 6





The 24 percent of total goat meat product that remained in Florida went largely to

food retailers in the form of frozen carcasses (Table 9). About 52 percent was sold to

independent food retailers and 12.5 percent to chain store retailers Ethnic restaurants

accounted for about 25 percent, barbecue restaurants 1.2 percent, and "white tablecloth"

restaurants accounted for less than one percent. The remaining nine percent was

purchased by individuals








Table 9. Esumated wholesale shipments of goat meat to retail establishments in the State of Florida, 1999.
Fresh carcasses Frozen carcasses Frozen Primals Total Total
pounds pounds pounds pounds percent

Food Retailers
Chain 0 4,779 445 5,224 12.5
Independents 630 20.482 445 21557 51.7
Total 630 25,261 890 26,781

Restaurants
BBQ 0 490 0 490 1.2
White tablecloth 0 929 0 292 0.7
Ethnic 1412 8.318 658 10.388 24.9
Total 1,412 9,100 658 11,170

Individuals 198 1,951 1,622 3,771 9.0

Total 2,240 36,312 3,170 41,722 100.0




Distribution of goat meat by product form to retail outlets in the state of Florida is

depicted in Figures 1-3. Fresh goat carcasses are largely in demand by ethnic restaurants.

On a weekly basis, 63 percent of fresh goat carcasses go to ethnic restaurants, 28 percent

to independent retailers and nine percent to individuals. Frozen goat primals go to

individuals (40 percent), ethnic restaurants (38 percent), retail food chains (11 percent)

and independent food retailers (11 percent). Whole frozen carcasses are purchased by

independent food retailers (57 percent), ethnic restaurants (23 percent), retail food chains

(13 percent), individuals (5 percent), and the remaining 2 percent is split between white

tablecloth restaurants and BBQ restaurants










Figure 1. Distribution of fresh goat carcasses to retail outlets in Florida.
A Individuals: 198 lbs (9%)


Ethnic restaurants: 1,412 lbs (63%)


Independent retailers: 630 lbs (28%)


Figure 2. Distribution of frozen goat primals to retail outlets in Florida.


Ethnic restaurants: 1,535 lbs (38%)




Retail food chains 445 lbs (11%)
------+*-


Individuals: 1,622 lbs (40%)





Independent food retailers: 445 lbs (11%)
4----


Figure 3. Distribution of frozen goat carcasses to retail outlets in Florida.

White tablecloth restaurants: 292 lbs (1%) 1


Independent food
retailers 20,482 lbs
(57%)


I idiviluutUs 1,, 5 1 ls 7-/o)

Ethnic restaurants 8,318
lbs (23%)
--


Retail food chains 4,770 lbs (13%)

BBQ restaurants: 490 lbs (1%)








Supply and Marketing Problems


Firms currently selling goat meat were questioned about supply and marketing

problems in both the 1986 and the 1999 surveys. There were no complaints about goat

meat availability in 1999 and very few complaints about quality. Several respondents felt

that mutton was frequently passed off as goat, and one said that goat carcasses that he had

bought were "greasy." One complained that imported goat meat was too dark, not like

"light" domestic goat. All were able to obtain adequate supplies. In 1986, about half of

the respondents indicated problems with limited supplies.



Summary of 1986 Study Results Compared to 1999

The two survey efforts showed that the number of wholesalers handling goat

products increased slightly, from 15 percent to 18 percent during the thirteen year span of

time, and the average weight of a goat carcass remained constant at about 36 pounds

(Table 10). Product forms handled changed more dramatically. In 1986, roughly seven

percent of goat meat handled by wholesalers was in the form of fresh whole carcasses.

This number dropped to about one percent of total goat meat volume in 1999. The total

volume of frozen primals handled by wholesalers dropped from 57 percent to 13 percent.

Whole frozen carcasses, however, rose from 41 percent of total goat meat volume to 86

percent. In constant 1999 dollars, both the cost of frozen carcass and the price received

dropped. Estimates for the 1986 study area showed annual goat meat consumption at

0.26 pounds per capital. In 1999, estimates for the study area, which included all counties

south of and including Pinellas, Hillsborough, Polk, Osceola, and Brevard plus Marion

County, showed per capital goat meat consumption at 0.21 pounds. Thus per capital








consumption may have declined slightly, even though total consumption in the state has

increased because of population growth.




Table 10. Comparison of 1986 vs 1999 goat marketing studies (South FL & Marion County)
Study Year
1986a 1999

1. Wholesalers handling goat products 15% 18%
2. Average carcass weight 36.4 lbs. 36.2 lbs.
3. Wholesalers handling fresh whole carcasses 7% 1%
4. Wholesalers handling frozen carcasses 41% 86%
5.Wholesalers handling frozen primals 57% 13%
6. Wholesale frozen carcass cost $1.43 $1.19
7. Wholesale frozen carcass price received $1.64 $1.49
8. Per capital consumption 0.26 lbs. 0.21 lbs.
9. Percent of total goat meal sold fresh 5% 1%
"Pnces reported in 1986 have been convened to constant 1999 dollars.




CONCLUSIONS AND RECOMMENDATIONS


Compared to the 1986 study, slightly more wholesalers are now selling goat.

However, most meat wholesalers do not handle goat and cite lack of demand as the

primary reason. Independent retailers and ethnic restaurants account for most sales

Total wholesale goat meat sales to retail establishments and individuals in Florida

are estimated at more than 2 million pounds in 1999 compared to 842,500 pounds in

1986. However, on a per capital basis, consumption is down by nearly 20 percent to 0.21

pounds. Given the average carcass weight of 36.2 pounds reported by firms interviewed,

the commercial market in Florida requires less than 60,000 head of goats per year. Even

if the non-commercial, direct-to-consumer sales are substantially larger than those of the

commercial market, it is doubtful whether per capital consumption amounts to one pound

per capital per year In contrast, 1998 per capital consumption figures for beef, pork,








chicken, fish and turkey were 97.0, 67.4, 84.9, 14.5 and 18.0 pounds, respectively (Table

11). Per capital consumption of lamb and mutton amounted to little more than a pound

per capital.



Table 11. U.S. per capital consumption of selected meat items, 1986 and 1998.

Type of Meat Per capital consumption 1986 Per capital consumption 1998 Percent change
pounds pounds'

Beef 107.8 97.0 -10.0
Pork 62.3 67.4 8.2
Chicken 58.1 84.9 46.1
Fish 15.4 14.5 -5.8
Turkey 12.9 18.0 39.5
Lamb/Mutton 1.6 1.3 -18.8
Goat 0.26b 0.21b -19.2
"Carcass weight.
bPer capital goat meat consumption in 1986 is based on the three market study area, for 1998, the estimate is
based on the South Florida counties and Marion County, Florida.
Source: USDA/Economic Research Service.



Based upon the total number of firms selling goat meat in both the 1986 and the

1999 study, it is obvious that distribution of goat meat remains limited. Further, when

analyzing the total quantity of goat meat handled, it is clear that consumption is small,

even among ethnic populations.

Given the very low, depressed wholesale prices for frozen carcasses and primals,

it is not economically feasible for Florida goat producers to compete in this product

market. For example, assuming a dress-out percentage of 50 percent and kill costs of $15

per head for an 80 pound live animal, a wholesale price of $1.18 per pound carcass

weight results in a live animal value of only 40 cents per pound. In some cases, small-

scale slaughtering plants' kill costs may be much more, perhaps as much as $25 per head

(63 cents per carcass pound) resulting in a live weight value of only 28 cents per pound.








It should be noted that this rough example ignores packaging and transportation costs,

and the impending costs of USDA's HACCP regulations that are likely to increase

operating costs for most slaughtering plants.

Analyses of fresh carcass prices reveal a somewhat more favorable scenario for

Florida goat producers. Using the same example above, but substituting a fresh carcass

wholesale value of $2.29 per pound results in live animal value of 96 cents per pound at

the lower kill costs and 83 cents per pound at the higher kill cost. Again, packaging costs

and transportation from slaughterhouse to wholesaler have been ignored. Another

consideration is the relatively small size of the fresh carcass market. While there are

some restaurants and independent grocers that prefer fresh, the cheaper frozen carcasses

pose a formidable competitive threat. Market development and expansion for fresh

carcass sales may require intense promotional efforts, reduced prices, or both.

A final recommendation is to foster increased opportunities for live animal sales.

While some producers reportedly receive a dollar per pound on the hoof on the farm,

additional opportunities may be limited unless producers actively promote sales by

raising public awareness through various types of advertising, such as traditional mass

media and the rapidly growing internet Another possibility might be to join with other

producers to sponsor "critter sales" in conjunction with large flea markets and other kinds

of public markets. Cooperative efforts among producers could help keep marketing costs

relatively low.

In conclusion, Florida goat producers must constantly strive to keep production

and slaughtering costs low, and to promote the merits of fresh meat as being superior to








frozen product. The "fresh" market offers Florida producers the greatest comparative

advantage in today's market place.








REFERENCES



Degner, Robert L. and J. David Locascio. Distribution of Goat Meat in Selected
Metropolitan Markets. Industry Report 88-3, The Florida Agricultural Market
Research Center, Institute of Food and Agricultural Sciences, University of
Florida, Gainesville, Florida, May, 1988.


Leak, Fred. Personal communication. Department of Animal Science, University of
Florida, November 1999.


State Business Directory: Florida. American Business Directories, a Division of
American Business Information, Inc. Omaha, NE 1999.




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