Module 8 – Marketing - MLA 8 – Marketing 5. 6 Module 8 ... undertake a feed budgeting exercise,...

What to do?The key elements of marketing that willhave a significant impact on your businessare:

• Market specifications. You must havea clear description of the quality andquantity of product that yourcustomers are seeking, and directyour management toward achievingthese specifications.

• Marketing strategy.

• Knowledge of markets.

o Know where the product isgoing and who is buying.

o Know what type of product isrequired.

o Evaluate market trends andforecasts.

• Selling options.

o Decide how you want to sellyour product.

o Decide when is the mostopportune time to sell.

• Product promotion.

o Understand and promote thebenefits of your product toprospective buyers.

• Opportunities for value adding:

o Niche markets.

o Differentiation of products.

Understanding the value of your productand doing your homework with respect tothe issues listed above, will give you greatercontrol of the income that is generated byyour business.

How to do it?The starting point for all decisions relatingto marketing is to ensure that you know thefollowing:

• What do you produce?

• Who is the intended customer?

• What product characteristics does thecustomer want?

Market specifications

The Australian goatmeat industry servicestwo main markets: domestic and export.

Domestically the main customers are theretail sector and restaurant trade. The endusers are typically ethnic groups, whosefood traditions include the use of goatmeat.For example, people of Italian, Greek,Middle Eastern, Pakistani and South EastAsian origin; health-conscious consumerslooking for low-fat, low-cholesterol sourcesof meat; ‘foodies’ interested in experiencingfoods from different cultures. Typically thetypes of products sought by the domesticmarket are capretto, chevon andsmallgoods made from goatmeat.

Our export markets vary in theirrequirements. There are Western countrieswhose populations are becomingincreasingly culturally diverse. In thesecountries, there is high demand forgoatmeat from ethnic groups, similar to theAustralian experience. The United States ofAmerica is a prime example of this trend,where there is high demand for goatmeatfrom the Hispanic and Asian communities.This includes the growth of ethnicrestaurants, which will introduce goatmeatto Western consumers.

There are also countries that traditionallyconsume goatmeat, but produce only smallamounts, for example Taiwan and theCaribbean.

Module 8 – Marketing

Module 8 – Marketing 1

2 Module 8 – Marketing

The export trade is typically seekingcommodity goatmeat and chevon, with thecarcase size and goat age requirementsvarying between countries. The majority ofthe export market is carcase trade, butthere is also significant demand for livegoats.

Table 1 provides a guide to thespecifications for a range of marketsegments. However, producers need to beaware that market requirements can varywith seasons and between years. Therefore,it is important that producers develop agood rapport with their agent, processor orbuyer, and keep in regular contact to ensurethat they understand the current marketrequirements. It is equally important to seekfeedback from these sources about theproduct supplied, in terms of its suitabilityfor the market and to find out how theproduct can be improved in order toachieve better prices.

Product consistency is a big issue.Producers must supply processors withconsistent lines of goats. Wide variations insize and condition make the task ofprocessing and marketing the product moredifficult.

One way to develop a better understandingof your product is to seek to visit theabattoir, when some of your animals arebeing processed, to inspect their carcases.Sometimes this can be difficult to organise,but it is a very worthwhile learningexperience.

Any decision about which market segmenta producer should target, needs to be madewith a clear appreciation of how therequired production system will fit in withthe capacity of the property. Two of themost important considerations are feedsupply and animal-demand patterns, andthe cost of production.

It is also critical that you thoroughlyinvestigate access to the market that youpropose to target. In some cases, themarkets available to you maybe restrictedby the geographic location of your property.

A consistent line of goats compared to an inconsistent line of goats. There are significant efficiencies inprocessing consistent lines.


Market Key Size of Age of Breed of Sex of Other customers goat goat goat goat requirements

Live trade Malaysia 40kg + – All All Prefer heavierliveweight goats

Middle 25kg + Prefer youngAll All –East liveweight goats, but

will take allSaudi 25kg + No more All, with Male Must beArabia liveweight than 2-tooth preference domesticated

for Boer goat bloodlines

Commodity Taiwan, USA, Range of Range of Range of – In the past, goatmeat Canada, sizes ages breeds USA has paid

Caribbean. a premium forSmallgoods ‘skin-on’ manufacture product.– domestic. Range of cuts

provideddepending onmarketrequirements.Refer toModule 8 -MarketingToolkit 8 page 7for anexplanation ofthe ‘skin-on’product.

Capretto Food To be classed as capretto Specialty All. Lean, tender, services a carcase must meet meat or In the case juicy product.sector – the following AUS-MEAT dairy breeds, of males, Unweaned kid.domestic. requirements: eg Boer they must

Be less than 12kg HSCW. goats. not show anyHave pale pink meat secondarycolour of the internal flank sexual muscle. characteristics.

Table 1. Market specifications


Market Key Size of Age of Breed of Sex of Other customers goat goat goat goat requirements

Chevon Food To be classed as Boer All. Farmed.services chevon a carcase bloodlines In case of Fat score 2-3. sector – must meet the males and Many marketsdomestic. following AUS-MEAT castrate prefer milk High value requirements: males, they teeth.European Female, male or castrate must not and USA male caprine that: show any markets. • Has no evidence of evidence of

eruption of permanent secondaryincisor teeth. sexualOR: characteristics.

• Shows evidence of the eruption of one but no more than two permanent incisor teeth.

Table 1. Market specifications continued

The categories listed above provide a guide to the different goatmeat markets. For more specific detail refer to individualprocessor weight-specification charts.

Drafting for weight and presenting consistent lines is important when marketing goats.

Marketing strategy

Knowledge of markets

Understanding the market place is criticalwhen setting directions for your ownbusiness. Markets are volatile andfrequently changing. You need to havesome understanding about the futuredirections of the goatmeat industry,potential new markets, the security ofexisting markets, pricing fluctuations andconsumer trends. This will give someindication as to where the opportunities foryour business may lie and the reliability ofthe market(s) that you are targeting.

Market intelligence can be gained from arange of sources:

• Networking with other producers.

• Stock agents.

• Traders.

• Processors.

• Market reports.

o MLA News – monthly update ofmarket activities on the Meat &Livestock Australia (MLA) website.

o MLA Goats on the Move – quarterlynewsletter providing information onthe latest developments within theMLA goat programs and theAustralian goatmeat industry.

o Industry publications, eg GoatFarming for the Future, MLA.

o The Australian Goat Report –fortnightly publication.

o Queensland Country Life – weeklynewspaper.

o The Land – weekly newspaper.

• Breed specific publications – eg BoerBriefs.

Some examples of the sorts of informationthat can affect marketing decisions:

Goatmeat prices are influenced by the valueof the Australian dollar. A low Australiandollar is more favourable for exports, as itmakes the Australian product moreaffordable, thus increasing demand fromother countries.

The price and availability of alternatives alsoinfluence demand and price. For example,fluctuations in the mutton market will impacton the goat market. If there is anabundance of mutton, its price may droprelative to that of goats. In suchcircumstances, some customers will buymutton in preference to goat. Events suchas the Haj and Ramadan will also impactupon demand.



Selling options

How to sell?

In the goatmeat industry, there are anumber of options for selling your product.Again, access to these options may belimited by geographic location. The optionsare outlined in the chart below:

Goatmeatproducer

Domestic market Export market

Live tradebuyer Carcase trade

buyer or abattoir

On farmBuyer

Chevon

Capretto

Smallgoodsmanufacture

Breeding stock Slaughter stock

Usually shippedby air

Usually shippedby sea

When to sell?

The decision about timing of product turn-off is influenced by market demand, price,and the farm production system.

The price offered will vary according toproduct supply and demand. When supplyis higher than demand, prices will be lower.Conversely, when supply is lower thandemand, prices rise. Producers need toanalyse their production system and decideon the most cost-effective time to sellproduct.

One of the biggest challenges facing theAustralian goatmeat industry is being ableto consistently supply product throughoutthe year. In an attempt to fulfil marketdemand, high prices will often be offered forproduct supplied outside the normalproduction cycle.

Goatmeat supply in Australia is typicallyvery seasonal. One of the drivers forseasonal supply is the impact of weatherconditions on the production system. Insemi-arid areas, there are only certain timesof year when stock can be mustered andaccess roads are trafficable.

The physiological limitations of goatreproduction also restrict supply.

Goats are by nature seasonal breeders,although there is variation between breeds.Breeding is triggered by shortening day-length, with the largest percentage ofconceptions occurring in autumn andwinter. Breeding is also influenced bytemperature, stress, rainfall and feed supply.Autumn/winter conception results in springkidding, when feed supply andenvironmental conditions are usually mostfavourable.79 The provision of a moreconsistent feed supply can extend thebreeding season, as can other socialinfluences such as the presence of males.

Supplying product out of season requiressignificant changes to management, such

as altering the feed supply. Successfullymanaging changes to the feed supply/feeddemand patterns, may necessitatesupplementary feeding, fodder conservationand/or changes in pasture management; allof which come at a cost.

To assess the viability of out-of-seasonproduct turn-off, the producer shouldundertake a feed budgeting exercise,comparing feed supply/demand scenariosfor different production systems. For moreinformation about feeding see Module 7-Nutrition. This should be followed by acareful analysis of the costs and returnsassociated with each of the differentalternatives.

Production systems in the extensive/pastoral zones are very much constrainedby the environment, thus providing littlerealistic opportunity for out-of-seasonproduction. The greatest potential for suchproduction is in the more intensively farmedareas operating on improved pastures. Thechallenge for producers in these areas is tobroaden their management skills andknowledge to enable them to takeadvantage of the higher prices offered forturning off product out of season.

Goatmeat is often eaten as part of culturalfestivals, such as Greek Christmas, Easter,the Haj and Ramadan. During these times,demand for the product is increases andpremium prices are often paid to securesupply. Such events present opportunitiesfor the astute producer.


79 Parkes, J., Henzell, R. & Pickles, G. (1996). Biology. In: “Managing Vertebrate Pests: Feral Goats”. Chapter 3, pp 19-24.Austalian Government Publishing Service, Canberra


Product promotion

As a producer, you need to understand andbe able to accurately describe the productthat you are offering for sale. The moreinformation that you are able to supplyabout your product (eg weights, conditionscores, age, management history, healthstatus and quality assurance programdetails) the better your bargaining positionwith potential buyers. Buyers are looking fora specific product to fill a particularcustomer’s requirements, so you need to beable to demonstrate that your productmeets those needs.

The industry has in the past been damagedby producers who have not delivered theproduct that they have promised. Berealistic about what you can produce anddeliver and do not expect to be paid forproduct delivered outside specifications.

Product promotion is particularly importantwhen you are seeking new opportunities tomarket your product.

Any positive product promotion is alsobeneficial in raising the profile and status ofthe goatmeat industry as a whole.

Opportunities for value-adding

Value-adding offers another way todifferentiate your product from that of otherproducers and can present new marketingopportunities. Some examples of value-adding initiatives that producers haveundertaken include:

• Organic production systems.

• Differentiation of products – skins,offal, head (preference for polledanimals), variety of meat cuts.

• Developing local supply chains – thereis a small number of existing anddeveloping supply chains throughoutAustralia. From a buyer’s point of view,the value of a well-developed supplychain is consistent supply. There maybe opportunities for producers todevelop their production system tochannel product in to a supply chain.

As with any production venture, the costsassociated with value-adding need to beweighed against the potential financialgains.

It is also critical that you ensure that youhave a buyer(s) for your product. Thegeographic location of your enterprise orthe type of goat produced may limit youropportunities to market a niche product. Forexample, an organic production system maybe easily implemented in a rangelandenvironment, but, at this stage, there areonly a few buyers willing to offer a premiumfor the organic rangeland product. SeeModule 8 - Marketing Toolkit 8 page 4 for alist of processors and buyers.

“Incorporated into all of the aboveprinciples should be a realistic approachto prices. Do your homework and knowthe value of your product. Look foropportunities to be a price setter ratherthan a price taker.” Justin Steadman,Gascoyne Western Australia.

Tool 8.1 Finding further information (page 2)

Tool 8.2 List of processors and buyers (page 4)

Tool 8.3 Preparing goats for market and relocation (page 6)

Tool 8.4 The skin-on product (page 7)

Tool 8.5 The relationship between liveweight and carcase weight (page 8)

Case studiesDeveloping a meat sideline to a fibre enterprise John and Christine Brennan (page 11)

Organic production David and Mary Booth (page 12)

Toolkit 8 – Marketing

Module 8 – Marketing Toolkit 8 1

2 Module 8 – Marketing Toolkit 8

Tool 8.1

Finding further information

Useful contacts

AUS-MEATThe national organisation and accreditationauthority responsible for quality standardsand the accurate description of Meat &Livestock.Tel: 07 3361 9200PO Box 3175 SOUTH BRISBANE QLD 4101www.ausmeat.com.au

Australian Livestock TransportersAssociation (ALTA)This body represents livestock transportersand operates the quality assurance system,TruckCare.Tel: 02 6247 5434GPO Box 2078 CANBERRA ACT 2601www.business.gov.au

LiveCorpThe Australian Livestock Export CorporationLtd (LiveCorp) is a company owned,controlled and funded by livestockexporters. Its role is to support thesustainable and profitable development ofthe trade in live cattle, sheep and goats.Tel: 02 9929 6755 Fax: 02 9929 6733Suite 202, 32 Walker Street NORTHSYDNEY NSW 2060P.O. Box 1174 NORTH SYDNEY NSW 2059Email: [email protected]

Livestock Export Accreditation Program(LEAP)Is an industry-based assurance schemeinitiated by ALEC and operated byLiveCorp.www.ausmeat.com.au/programmes/leap/

Meat & Livestock Australia (MLA)A producer-owned company adding valueto the red Meat & Livestock industries ofAustralia by promotion and R&D.

165 Walker Street NORTH SYDNEY NSW2060Tel: 02 9463 9333 and 1 800 023 100www.mla.com.au

The Australian Meat Industry Council(AMIC)The Australian Meat Industry Council (AMIC)is the peak council that represents retailers,processors, exporters and smallgoodsmanufacturers in the post-farm-gate meatindustryTel: 02 9086 2200PO Box 1208 CROWS NEST NSW 1585www.amic.org.au

Withholding PeriodsDetails about withholding periods forchemicals used on animals duringproduction.Tel: 1800 654 743www.mla.com.au/TopicHeirarchy/IndustryPrograms/LivestockQualitySystems/LivestockIntegrity/default

References

The Australian Goat ReportPublished fortnightlyTel: 02 6343 3225 Fax: 02 6343 3225Email: [email protected]

Australian Goat Notes. Simmonds, A.J.2001. Australian Cashmere GrowersAssociation Limited. This is a publishedcollection of papers and notes covering allaspects of goat production. Contributingpapers and notes from many of the statedepartments of agriculture, Rural IndustriesResearch and Development Corporation(RIRDC), breed societies and breedassociations.

Agricultural Notes for Goat Meat Producers.McGregor, B. 2002. Department of NaturalResources and Environment, Victoria.Includes note titles such as: “Prepare MeatGoats for Sale”, “Assessment Skills forGoat Meat Marketing”, and “Meat and OffalYields of Goats”.

Websites

Refer to Module 1 – Property planningToolkit 1 page 5 for instructions on how toconduct an effective web search.



Tool 8.2

List of processors and buyers

Contact details Phone numbers Market Delivery pointQueenslandGlenn Telford Tel: 07 4623 3791 Live export RomaWestern Exporters Tel: 07 4654 3311 Export Delivery depots in Neil Duncan and 0418 797 971 NSW, Qld and

CharlevilleVictoriaGame Meats Company Tel: 03 5756 2999 Export MyrtlefordJim Kyriakou Tel: 03 9807 4621 Domestic Wangaratta, Kyneton,

Horsham and Swan Hill

June Liddy Tel: 03 5382 2811 Domestic HorshamNorvic Food Jon Hayes Tel: 02 6055 0226 Export WodongaAustralian Premium Tel: 03 5754 2200 Domestic By arrangement at Goat Meat Pty Ltd. regional abattoirsAscot Meats Tel: 02 6055 0250 Export WodongaSouth AustraliaKerridale Pty Ltd Tel: 07 4623 3336 Export Waikerie

and 02 6892 5029Normanville Meat Tel: 08 8558 2279 Domestic NormanvilleWorks Pty Ltd and 08 8558 2595P&D Exports Pty Ltd. Tel: 08 8365 2756 Domestic and live Payneham

and 0418 819 458 exportPace Trading Tel: 0407 394 110 Export Port PirieSamex Australian Meat Tel: 08 8413 8000 Export FremantleCo Pty. Ltd. Head office Adelaide Source carcases fromRob Black processors around

AustraliaNew South WalesBuronga Pastoral Tel: 02 6942 2115 Domestic Cootamundra David Booth Premium for certified

organicKevin Stubling Livestock Tel: 0417 404 489 Export Broken HillMoree Meats Tel: 0419 499 518 Domestic NSW, Qld and Vic


List of processors and buyers continued

Contact details Phone numbers Market Delivery pointNew South WalesMudgee Co-Op Tel: 0418 559 773 Export and Bungenbah nr.Meat Supply domestic CoonabarabranPBM Prime Meats Tel: 02 6336 0460 Domestic OberonPeter and James GriffithsPat Cuffe Livestock Tel: 0427 488 959 Export WodongaRichard Anderson Tel: 0429 474 015 Domestic Coonabarabran

and Wilberforce NSWWestern AustraliaGeraldton Meat Tel: 08 9923 3591 Export GeraldtonExportsIndependent Livestock Tel: 08 9309 3225 Export and Live Export MucheaServices Mick Doak and 0427 006 159 live export Beaufort River

local capretto AbattoirInternational Tel: 08 9575 7706 Export and GinginExporters Pty Ltd domesticPrimo Farm Fresh Tel: 08 9732 2003 Domestic Donnybrook

and 0419 690 559

This list is not necessarily complete. Consult your local services for additional processorsand buyers.


Tool 8.3

Preparing goats for market andrelocation

To minimise stress on animals:80

• Carry out any husbandry requirementsat least a week prior to transporting.This may include identification taggingand national livestock identificationsystem (NLIS) tags.

• Check the withholding periods (WHP)and export slaughter interval (ESI)requirements for any chemicals thathave been used on slaughter stock.This should be done prior to using thechemical and checked and recordedon the National Vendor Declaration(NVD) before sale.

• Move trapped stock to suitableholding areas at regular intervals, andprovide an appropriate ration, untilshipment.

• Weigh, draft and identify animals thatmeet the market specification prior toshipment day. Allow them to settlebefore loading.

• Select animals that are healthy and fitto travel.

• Do not include dirty and scouringanimals.

• Assess the fleece length and seedcontamination against thespecifications supplied by theprocessor.

• Select a transport firm with cleantrucks, trained stockmen and carefuldrivers.

• Quietly handle goats from the holdingpaddock and on to the truck.

• Control and muzzle dogs.

• Separate males and females, kids andadults into different lots.

• Clearly identify the different sale lots ifit is to be a mixed load.

• Use raddle only on the head, not paint.

• Sell in truck loads, thus minimising theneed for mixing of unfamiliar mobs.

• Supplement with calcium prior totransporting to minimise the risk ofhypocalcaemia.

• If practical, tip horns to reduceincidence of injury to other animals.

• Electrolytes in the water will reducethe incidence of dehydration.

• Feeding travel pellets ensures correctbalance of nutrients.

• Remove adult goats from feed andwater for 12 hours prior to shipment.

• Weaners require a longer period offasting.

• Capretto should be weaned from theirmothers just prior to transport and donot require fasting.

• Prepare the National VendorDeclaration and Waybill and healthcertificates, where necessary, beforeloading.

• Be ready on time.

• Supply the agreed number of goats forthe consignment.

• On receiving a consignment, retaingoats in the yards on water andprovide similar rations to their pre-transportation diet.

80 A significant proportion of the information in this tool has been sourced from: McGregor, B. (2002). Preparing meat goatsfor sale. In: “Agricultural Notes for Goat Meat Producers”. Victorian Department of Natural Resources and Environment.


Tool 8.4

The skin-on product

This product is a carcase with the skin-onand hair removed. The carcase can be ofany weight range.

The shorter-haired breeds or shorn goatsare preferred for this product. Rangeland,Boer and Boer goat crosses are suitable.Angora goats are undesirable as their haircauses problems during the de-hairingprocess.

The de-hairing process is performedmechanically. The machinery works well ifthe goats are of a consistent size andcondition score.

The major markets for this product areTaiwan and the Chinese community in theUnited States of America.

There is demand for skin-on product allyear, with the highest demand usually fromEaster through to December. There is alsoincreased demand in January for ChineseNew Year.

Contact your processor for up-to-dateprices and product specifications.

This information has been supplied courtesyof Jon Hayes, Norvic Food Processing,Wodonga.

Skin-on product at Western Exporters, Charleville


Tool 8.5

The relationship betweenliveweight and carcase weight

The weight of the carcase is one of thethree criteria used to categorise thespecifications for selling goats; the othertwo are the age of the animal and itscondition. If the animals provided for saledo not meet all the specifications financialpenalties occur, as buyers find it difficult touse carcases that do not conform tospecifications.

Dressing percentage is the weight of thecarcase as a percentage of the liveweight ofthe animal. To calculate dressingpercentage you first need an accurate figurefor the liveweight of the goat. Liveweight isinfluenced by the following factors:81

• Time off feed and water.

• Pre-slaughter fasting and stress.

• Fatness and muscularity.

• Skin weight.

• Sex.

• Whether or not the goat is weaned.

• Time of year.

• Breed.

• Type of feed.

• Carcase trim and temperature.

One of the most important factors in thecalculation of liveweight is time off feed andwater. The rumen of goats is quite large andfull of fluid, and can vary in weightdepending on its capacity and content. Thetotal weight of a goat that has been grazingon pasture, and is therefore assumed tohave a full gut, is known as ‘full weight’ or‘green weight’.

During the first 24 hours after the last intakeof food and water, weight loss in liveanimals is mainly due to the loss of fill fromthe gut. This loss continues and is greatestin the case of animals that have beenrecently weaned or denied access to wateror were in poor condition prior to slaughter.Some weight loss also occurs afterslaughter owing to loss of water from thecarcase.

81 Greenwood, P., May, T. and Finn, J. (1995). Estimating prime goat kid carcase weights. NSW Agriculture. Agfact A7.1.13.First edition

Liveweight loss as percentage ofliveweight after feeding ceases:82

Time off feed (hours) Weight loss (%)

2 2.0

4 2.5

6 3.0

8 4.0

12 5.0

24 7.0

48 10.0

72 12.0

The calculation of carcase weight (CW)using dressing percentage (DP) can beexpressed in the following formula, whereLW refers to liveweight:

CW = LW x DP

Other formulae and methods for calculatingcarcase weight are also available.

The dressing percentage for young kids isabout 37%, but this increases to about 45%for animals with good condition scores andweighing about 45kg. A dressing score of53% is considered to be at the higher endof the range.

The wide range of dressing percentagesmakes it necessary for each producer torecord their own results. Producers need toweigh, condition score and record allconsignments and calculate the dressingpercentage from their feedback sheets tobe able to make accurate predictions fortheir stock at various times of the year.


82 Greenwood, P., May, T. and Finn, J. (1995). Estimating prime goat kid carcase weights. NSW Agriculture. Agfact A7.1.13.First edition

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Case studyDEVELOPING A MEAT SIDELINE TO A FIBRE ENTERPRISE

NAME: John and Christine Brennan

PROPERTY NAME: Wyoming

PROPERTY LOCATION: Crookwell, New South Wales

PROPERTY SIZE: 654ha

NUMBER OF GOATS: 1,000

MAIN GOAT ENTERPRISE: Mohair fibre

TARGET MARKET: Direct sale to processor – below 20 micron, soft rollingskin (SRS) 2 type fibre

SECOND GOAT ENTERPRISE: Meat

TARGET MARKET: Domestic – direct to public, niche marketing

OTHER FARM ENTERPRISES: Sheep (wool and meat) and beef

John and Christine are planning to develop a meat enterprise as a sideline to their mohairenterprise.

They have done their research and believe that there is a market for high-quality goatmeatfrom animals that have been well managed from paddock to plate. The plan would be to sellthe product direct to the customer, using outlets such as farmers’ markets, and catering forpeople with special dietary needs and those who appreciate the unique qualities of goatmeat.

The opportunity exists within their current enterprise to market goats that are surplus to thefibre herd, increasing the profits generated by the business. This would require some changesto the way the herd currently operates: culling at heavier weights and breeding for increasedsize and robust constitution.

The alternative strategy would be to join cull Angora does to meat sires. However, John feelsthat this would unnecessarily complicate the system and significantly increase the workload.

The Brennans’ aim is to market pureAngoras, of at least 18 months ofage, promoting the fact that Angorashave more fat cover than the Boer orrangeland goat.

The extra costs that he anticipatesare in processing, transport,packaging and marketing (thebiggest cost).



Case studyORGANIC PRODUCTION

NAME: David and Mary Booth

PROPERTY NAME: Buronga

BUSINESS NAME: Buronga Organics

PROPERTY LOCATION: Cootamundra, New South Wales

PROPERTY SIZE: 1,600ha

NUMBER OF GOATS: 800 breeding does

BREED: Boer and Boer cross

MAIN GOAT ENTERPRISE: Meat – specialising in certified organic product

TARGET MARKET: Domestic – Chevon. Direct to butchers, specialtymarkets, farmers markets and restaurants

SECOND GOAT ENTERPRISE: Value-adding – leather and goatmeat jerky

TARGET MARKET: Farmers markets and direct to consumer

OTHER FARM ENTERPRISES: Organic sheep – Dorper and White Dorper (meat), beef –Angus and Welsh Black, and cropping – Spelt

When asked to explain how goats might lend themselves to an organic production system,David made the following points:

• Goats are browsers. Under natural management they will consume about 70% of theirdiet in non-grass species.

• Goats will eat weeds and can be used as pasture toppers to help prevent seed set.

• Goat health directly reflects the health of the farm: “Sick goats equal a sick farm”.

The main challenges that David has found in operating an organic goat enterprise are internalparasites and unpalatable weeds. For organic producers, there are no quick-fix options forthese problems.

The Booths’ system is based on rotational grazing and grass finishing. Goats that do notperform under these conditions are culled. David points out that finishing goats to aspecification, for consistent, year round supply can be a challenge without supplementaryfeeding.

The Booths believe that a healthy domestic market, supplied with a quality product will, in thefuture, lead to a premium export market.

Marketing to secure a premium price requires a lot of research and hard work. The followingare a few of the Booth’s marketing experiences:

• Demand for certified organic chevon was identified in a community in suburban Sydney.The product must be Halal killed and supplied direct to Sydney. Consistent supply ofquality product is essential. The Booths’ are currently supplying product to one butcher-shop in the area. There is further demand from other outlets, but insufficient organicproduct available to take advantage of the opportunity.

• One of the Booths’ markets developed rather unexpectedly. They were supplyingcertified organic lamb to a butcher in Canberra and provided a few goat carcases as atrial. The Halal slaughterman made contact with the Booths’ to see if they would supplya Muslim butcher, and so a new market opened.

• They have identified other markets for organic meat in Adelaide, but the cost ofrefrigerated transport for a small number of carcases is prohibitive.

• Marketing via the web has been a very good investment for the business, and hasresulted in opportunities for direct sales to the public. David says that the value of theweb site is that customers can easily find the business and access information about thefarm, the product and organic certification.

• Media exposure has also been good for business promotion. The media “love somethingout of the ordinary – goats, organics and farmers who value-add.”

• Working with other producers has helped to fulfill demand. The Booths are now workingwith a group of 20 other growers to ensure that they have sufficient product to meet thedemand from their markets.

• Over the last two years, their market has grown and changed. Initially they supplied 15goats per week at 8-10kg carcase weight. Now the weekly kill is 50-60 goats, with themarket preferring 12-14kg carcases. David comments that if they were able to guaranteesupply this could easily increase to 100 carcases per week. Demand for productdefinitely exceeds supply.

• The Booths produce certifiedchevon, but sell most of theproduct into conventionalmarkets.

David and Mary believe that the goatindustry and the organics industry facesimilar challenges: both need to findways to supply large volumes of highquality product, consistently overtwelve months of the year.


Module 8 – Marketing - MLA 8 – Marketing 5. 6 Module 8 ... undertake a feed budgeting exercise,...

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