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.

More like this

Commitment needed to promote goats

Hill country farmers cannot ignore the goat meat market opportunities such as in North America, according to goat farming expert Garrick Batten. He outlines why in the third of his three part series on the topic.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo…

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter