 Current status of the US and WV small ruminant sectors  New and emerging market segments  How to reach these new markets (best practices)

Average $5.73 Average $1.09 $4.64

This affects many things that you do: - when you breed and sell (what weight you sell at) - what you feed and what condition you animal is in - where you sell and how you handle animals

Health Food Sector Milk, Cheese and Meat Low in fat, high in protein Used as therapeutic aids in diseases Ethnic Groups Sector Hispanics >19 million Muslims >14 million Caribbean Natives <2 million Africans and Asians <8 million Approximately 10% U.S. population is foreign born 41% of the population of New York City is foreign born Gourmet Food Sector Unique taste Exotic dishes

Where did they settle? Hispanics Texas, California, Southwest New York City & Cities of Northeast Muslims Urban Belt (Washington D.C. to Boston) Caribbean Immigrants Miami, New York City Africans and Asians Detroit, Ohio New York City Muslim Population Centers Metropolitan AreaPopulation Los Angeles700,000 New York (Tri-State Area) 600,000 Chicago400,000 Detroit400,000 Toronto, Canada400,000 Houston300,000 Washington, DC300,000 Southern Florida250,000 Dallas200,000

Market SegmentPreferences Hispanic Young kids, Cabrito lbs. live wt. receiving only milk; Young goats-25 lb. carcass Muslim Slightly heavier carcasses, 35 lb. carcass; Lean, discriminate against fat; Processed in Halal fashion; Carcass with head-on. Caribbean Mature bucks (Goat’s head soup, Goat curry); ‘bone-in’ cuts for stews and soups. Africans and Asians Varies Restaurant Anywhere from lbs depending on area and restaurant Italian lb. carcass (4-12 weeks old) Greek lb. carcass (8-16 weeks)

Eid al-Adha Easter and Passover Start of Ramadan Eid al-Fitr and Hanukkah

Eid al-Adha Easter and Passover Start of Ramadan Eid al-Fitr and Hanukkah So timing of breeding and sales is important

The more work you do yourself (or with others), the more money you will keep!

 Lambs and Goats can be sold through many market outlets  Auctions (local or regional)  Electronic Market  Direct Market  Niche Market  Transport or Marketing Pools

Most Lambs in WV are Sold Through Livestock Auction Markets

CostFarm Gate Local Auction Regional Auction Middleman (Producer Incurs Costs) Consumer (Producer Incurs Costs) Pooling (Regional Auction) Average Prices$65.00$77.50$90.28$91.30$150$92.28 Production Cost$63 Selling Fees$1.00$5.58$ Hauling & Other Expenses -$0.51$ $1.02 Shrink Loss ($1.00/lb) -$4.00$6.00$8.00 $6.00 Profit Margin (10%).10 Total Cost with 10% profits $83.60$93.05$94.15$96.50$119.60$88.50 Some data removed for ease of delivery to farmers’ group

We Observe:  You can make twice as much for your lambs if you sell at the right weight, time of the year or in the right lot size  Physical characteristics and marketing factors explained about 59% of the short-term price variability.

Premiums for selling in lots of head (in excess of $3/cwt relative to single-head lots).

Premiums for leaner lambs (less conditioned lambs = $12/cwt.) (Livestock Auctions WV)

Production VariableFall Lambing Spring Lambing Pregnancy Rate (ewes lambing/ewes exposed)75%89% Lamb Crop (lambs born/ewe lambing)159%170% Mortality Rate6%10% Average Market Price$0.93$0.75 Average Cost/lb of Lamb Produced$0.58$0.51 Profit/lb of Lamb Produced$0.33$0.28

We Observe:  Discounts for heavier goats (>80lbs = $3.30/cwt).  Discounts for over-conditioned goats (aged goats = $5.72/cwt).  Premiums for lot sizes in excess of 20 head (21-40 head = $4.70/cwt)  Premiums for selling during Jan-June ($8/cwt)

 Heavier lambs were previously thought to be more profitable because  Heavier lambs return more per ewe to the producer  Slaughter costs per unit weight decreases as lambs get heavier  Feeder lambs (weight designation rather than intended use) may offer a potentially profitable alternative because of  Increasing consumer demand for leaner lamb for health and convenience reasons  Increasing ethnic demand for lighter lambs for religious reasons  Potentially higher feeder lamb prices  Lower cost of production (feed efficiency and rate of gain decreases with age)  Decreased risk of predator, parasite and mortality losses because of shorter fattening period

 Local or regional livestock auctions  Local market (quality) pools  Local transportation (volume) pools  Special state graded sales  Target specific ethnic or niche markets  Develop a natural/grass-fed or organic product  Develop a branded retail product  Market to WV and regional resort areas  Forward contract directly to a packer/processor  Market via the Internet  Marketing information system

Lowering your production costs and/or increasing the price you receive for your animals can help you increase your profitability!

High Prod Cost $90/cwt Medium Prod Cost $60/cwt Low Prod Cost $40/cwt Average Price/cwt

 EVERYTHING!!!  Breed, genetics and selection  Kidding rate, weaning rate, growth rate and weight gain  Nutrition (type of feeds, quality, quantity)  Size of herd  Predator losses and deaths  Consider herd health management plan  Labor costs, especially at kidding time  Consider managed/synchronized breeding program  Other costs: vet and medicines, interest on loans, etc  Also include marketing costs – getting animal to market  Yardage fees, commissions, transportation, negotiation fees, etc  Consider direct marketing or pooling arrangements

 Produce for a market.  The more work you do yourself increases your profits.  You can make twice as much for your lambs if you sell at the right weight, time of the year or in the right lot size  Consider trade-offs between heavier and lighter lambs  Choose a marketing option to best suits your resources  Lower your production cost to increase profits