Wednesday, 17 August 2022 09:55

Is the US an untapped market for NZ goat meat?

Written by  Staff Reporters
NZ goat meat only needs to capture a small part of the US market to succeed. NZ goat meat only needs to capture a small part of the US market to succeed.

The US goat meat market provides profitable potential for NZ hill country farmers, in Garrick Batten's opinion. From his extensive industry background, he discusses this potential in the second of three articles.

USDA information shows about 2 million meat-producing goats in America supply half the consumer demand in the US, with a Muslim population of 3.5 million, more than twice as many Latinos - as well as people of Asian-origin.

The US's national herd and slaughter is shrinking by 1-2% annually. Texas, which supplies 40% of the US market, has dropped 80% in 10 years.

Batten believes that the US goat meat production situation is unlikely to change, with the cost of land and feeds for at least half the farms with small herds often focused on circular, seedstock, parentage-based breeding. He adds the current drought and fires will influence supply from southern range states as well.

According to Batten, NZ goat meat only needs a small part of the US market to succeed.

To provide a realistic comparison for NZ farmers, he uses a 25kg LW – 11.5kg carcase and USDA S2 grading. His analysis of the last 10 years of prices and shows increases from $125 to $215 per head, with December – May festival-influenced premiums adding average 17%. Batten adds that current lower prices, reflect increased supplies and lower summer consumption.

“National average retail meat prices are triple live auction prices, where USDA monthly reports show per kg prices for bone-in leg over $60 and over $45 for ground and stew meat,” he told Rural News.

Batten believes that local lamb prices provide an interesting comparison.

“There is not a great deal of difference in major Texas live auction prices for wool and hair breed lambs and often a better price for goats at similar low weights,” he says. “This also shows average lamb cut prices as being similar to ground and stew goat meat, with up to 50% premium for grass-fed.”

He concedes that the US market does need understanding. For example, corner grocery stores rather than supermarkets sell most goat meat, adding to distribution, logistical and cost complexities.

“Ethnic consumers tend to buy carcases, although lately, more half and quarters and even some retail cuts.”

Batten adds there are notable retail price differences, with fresh at about double that of frozen meat from Australia. He says research shows that ethnic taste panelists could not distinguish the two types of meat for flavour, tenderness juiciness or overall satisfaction.

He suggests that larger, older Australian frozen carcases shape US customer perception, but still return their farmers 50% more than ours.

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