| Background
It is generally agreed that the goat meat industry
is on the rise although official statistics are unavailable.
The USDA ceased tallying nationwide goat numbers many
years ago. Trade publications and breed associations
estimate that there are approximately 1,900,000 meat
type goats in the U.S. herd, with about 1,350,000
being mostly Spanish and Spanish-cross goats and the
remaining 550,000 being mostly Angoras.
In 1999, 492,000 goats were slaughtered at federally
inspected plants compared to 400,000 in 1998. According
to long time industry observers, another 300,000 were
slaughtered in state inspected facilities or informally.
The structure of the industry is such that the majority
of U.S. meat goats are raised in Texas and other southwestern
states and then transported to the slaughterhouses
relatively near consumption. Roughly, one-third of
all federally inspected goat slaughter takes place
in New Jersey.
The total goat market in the US is thought to be growing
at a rate of more than ten to fifteen percent annually.
By all measures, there are not enough goats produced
in the US to meet domestic goat needs. Some 65,000
live head and 8,500 goat carcasses (in 30-pound carcass
weight equivalents) are exported from the U.S. annually.
U.S. yearly imports have been equaling about 327,000
head (in 30-pound carcass weight equivalents). However,
the number of imports diminished in 1999 with the
availability of more domestically produced meat.
Breeds
Spanish meat goats are small, hardy and well adapted
to extensive foraging. They are noted for having a
cantankerous disposition and tend not to have a good
carcass conformation.
Angora goats lend themselves to crossbreeding and
are thus a more desirable meat goat. Angora also have
the advantage of a desirable pelt, but crossbred mohair
must be kept separate from the purebred types.
Nubians and Saanans are the most popular dairy breeds.
Both have a large frame size, good dispositions and
are easy to manage. French origin dairy breeds are
also found in the Midwest.
Boer is a relatively new breed to the US. Boer goats
are large framed animals with a high muscle-to-bone
ratio. It is a prolific breeder and is noted for its
good disposition.
Much has been written about the influence of the Boer
breed in America since its introduction in the early
90s. The Boer is a true meat type animal. USDA specifications
for cuts from meat type goats will, when completed,
most readily apply to goats that have some percentage
of Boer in their bloodlines
Production
In terms of lean product produced per unit of input,
goats cannot compete with the other meat producing
species on lush grasslands, improved pastures or in
a feedlot scenario. However, because of their preference
for browsing on brushes, bushes and weeds, goats are
the most efficient in the conversion of browse pasture
to lean tissue. The long-term viability of the goat
industry hinges on breeders' abilities to develop
a prolific, fast growing animal with desirable carcass
traits that can be sustained and productive on a browse
diet.
The supply of slaughter goats is seasonal. Most kids
tend to be sold for slaughter from four to eight months
of age. Producers in Texas kid their herds in the
December-January period while those in other southern
states do their kidding in March-April. Thus overall,
there is an imbalance of supply throughout the year
as the heaviest demand period is December-April.
Goats are graded much like cattle, using prime, choice
and good grades. There is about a $ .09 to .11 per
pound spread between the different grades. Unlike
some other species, there is very little price differentiation
between the lighter and heavier weight goats. In fact,
the heavier goats may transform themselves into better
conformation, "jump" a grade, and thus receive
a better price. However, the cost of delaying the
marketing could exceed the additional income received
from a heavier animal.
Keeping the costs low for stocker animals, from weaning
to about 40 pounds is critical to having consistent
profits. Here is a typical feedlot scenario. At 40
pounds they are worth about $ .70 per pound. To feed
them on out on a hay and grain mixture of 324 pounds
for 120 days at $ .08 per pound (8:1 feed conversion
rate) plus overhead, etc. is $15.00. This results
in total costs of $69.82 for an 80 pound animal that
can now bring $1.20 per pound live less shrinkage
commissions and freight.
Markets
Overall goat meat demand is strongest along the eastern
U.S. coast and in Florida, but localized exceptions
occur. Markets for goat meat are very ethnically oriented.
Each consumer group has its own particular product
specification and they tend to be located in different
regions of the country.
The largest single Muslim market in the US is Detroit
with other large populations in southern California
and the northeast corridor stretching from Washington
to Boston.
Muslim consumers generally want a skinless carcass
of less than 35 pounds, which typically must be certified
as having been processed along Halal guidelines.
Recent immigrants from the Caribbean and Africa plus
some African Americans centered largely in Florida
and the New York area want a headless skin-on carcass
with the feet on. Furthermore, they prefer the carcass
of undermined weight to be heavily singed.
Asians, mostly in California and the northeast corridor
of the U.S., want the feet and head removed and the
carcass must be snowy white. The skin is scalded and
scraped.
Hispanics are located primarily in Texas and the rest
of the southwestern US, California, Chicago and New
York. Within the Hispanic group, persons of Mexican
heritage are the largest consumers of goat meat. They
prefer skinless carcasses with the feet off and the
head on. They also like lightweight carcasses, called
cabrito, weighing about 10 pounds.
Prices
For goats graded "good" prices range from
$ .57 per pound in the early fall to $.72 per pound
in late spring. In the same corresponding period,
“choice” was $ .66 per pound and “prime”
was $.77 per pound. The peaks for those two grades
during the same months were $ .83 for “choice”
and $ .98 per pound for prime.
According to industry sources in Texas, if one started
with a 60 pound goat in Texas selling for $ .80 per
pound or $ 48 per head, the delivered cost for a live
goat would be $54 per head. A travel-shrunk goat would
typically weigh about 55 pounds at the East Coast
slaughter plant. Domestic goat slaughter generally
gives a “yield” of 48 percent for the
carcass. It is thought that $4 per head is a typical
slaughter cost. The processor must also endure cooler
shrink, which means the processor has total costs
of $58 per head for 25 pounds (or $ 2.32 per pound)
of fresh domestic goat meat excluding profits, marketing
charges, etc.
A Pennsylvania importer reports that East Coast processors
can also import frozen carcasses of Australian goat
for about $ 1.50/pound delivered to their plant. This
is calculated from $ 1.20 per pound cost of meat and
the remaining balance is from handling and delivery
charges from the port. Philadelphia is the single
largest port of entry for imported goat carcasses
followed by San Francisco, Miami and then Los Angeles.
Imported goat meat prices set the floor for the domestic
product. There are no quotas for imported goat meat.
Australia is a very low cost producer of goat meat.
Australian offerings of carcasses are aided by the
large demand here for goat meat and an attractive
price supported by the low Australian dollar. The
real negative aspect of Australian goat meat is that
it comes in a frozen state.
The question then remains; can fresh domestic goat
meat compete with frozen imported product from Australia?
Yes, as long as the various ethnic consumer groups
in the US prefer fresh meat and are willing to pay
for it. One serious downturn in the economy could
force more consumers to purchase their goat meat in
a frozen form. Keep in mind that for many ethnic group
members the purchase of goat meat is a luxury.
Conclusion and Trends
Goat meat consumption is growing. Although most ethnic
groups spend a larger proportion of their income on
food, goat meat is clearly a high priced animal protein
when compared to other offerings in the supermarket
case. However, consumers are prepared to pay the large
price difference for domestically produced fresh meat
over the frozen imported product. Should the economy
soften and unemployment significantly rise, which
tends to affect these groups of consumers both first
and the hardest, it remains to be seen whether the
increased demand for goat meat can be sustained.
Some experts and marketplace observers believe the
marketing channels for this product are not fully
developed and that plenty of room for expansion remains.
Cities in the interior of the U.S. such as Kansas
City, Denver, Omaha, Des Moines, Wichita and Minneapolis
all could be good future markets of some importance
and they each have substantial ethnic populations.
Sources:
USDA Ag Marketing Service, Des Moines, IA; USDA
Ag Marketing Service, San Angelo, TX; USDA Ag Marketing
Service, Washington D.C.
Dr. Richard V. Machen, Animal Science, Texas A &
M University, College Station, TX.
Dr. Kenneth McMillin, Animal Science, Louisiana State
University, Baton Rouge, LA.
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