Potential & Promise In Ethnic Markets Toronto 2007

Potential & Promise in

Ethnic MarketsBill Sciarappa PhD

Agricultural Agent Rutgers University

This project was supported by the National Research Initiative of the Cooperative State Research, Education and Extension Service, USDA, Award # 2005-35618-15735

Rutgers Research & Education CentersUniversity of Massachusetts Rutgers Agricultural

Economics & Marketing

University of Florida

Ramu Govindasamy, Venkat Puduri, Richard Van Vranken, Albert Ayeni, Kim Pappas, James E. Simon, Frank Mangan, Mary Lamberts, & Gene McAvoy

POTENTIAL OPPORTUNITIES POTENTIAL OPPORTUNITIES IN NORTH AMERICAIN NORTH AMERICA

A.A. AsianAsian

B.B. Hispanic Hispanic

C.C. CaribbeanCaribbean

D.D. RussianRussian

E.E. EuropeanEuropean

Promising Markets

ETHNIC CROP OVERVIEW ETHNIC CROP OVERVIEW Rick VanVranken Rick VanVranken

Rutgers Agricultural AgentRutgers Agricultural Agent

Canadian Immigration Canadian Immigration 100 Years 100 Years

Canadian Growth CentersCanadian Growth Centers

Origin of Canadian ImmigrantsOrigin of Canadian Immigrants

Origin of Immigrants to Canada 1956-1997

0

50,000

100,000

150,000

200,000

250,000

300,000

Year

Tota

l Im

mig

rant

s

Oceania

Africa

South America

CARIBBEAN

EUROPE

ASIA

USA

cc

Immigration in CanadaImmigration in Canada

Population Age StructurePopulation Age Structure

Canada Population ProjectionCanada Population Projection

Chinese

Asian

Indian Mexican Puerto

Rican

Maine 2,034 1,021 2,756 2,275

New Hampshire 4,074 3,873 4,590 6,215

Vermont 1,330 858 1,174 1,374

Massachusetts 84,392 43,801 22,288 199,207

Rhode Island 4,974 2,942 5,881 25,422

Connecticut 19,172 23,662 23,484 194,443

New York 424,774 251,724 260,889 1,050,293

New Jersey 100,355 169,180 102,929 366,788

Pennsylvania 50,650 57,241 55,178 228,557

Delaware 4,128 5,280 12,986 14,005

Maryland 49,400 49,909 39,900 25,570

District of Columbia 3,734 2,845 5,098 2,328

Virginia 36,966 48,815 73,979 41,131

North Carolina 18,984 26,197 246,545 31,117

South Carolina 5,967 8,356 52,871 12,211

Georgia 27,446 46,132 275,288 35,532

Florida 46,368 70,740 363,925 482,027

TOTAL 884,748

812,576

1,549,761

2,718,495

Potential Market =Coastal Ethnic Populations

0

50

100

150

200

250

2000 2010 2020 2030 2040 2050Year

Po

pu

lati

on

(M

)

Black AsianAll other races Hispanic (of any race)White alone (not Hispanic)

U.S. Population Growth Ratesby Race and Hispanic Origin

6%

19%

13%

20%

1%0%

5%

10%

15%

20%

25%

2000 to 2001 2000 to 2002 2000 to 2003 2000 to 2004 2000 to 2005

Year Comparison

Cu

mu

lati

ve

Gro

wth

Black AsianAll other races Hispanic (of any race)White alone (not Hispanic)

US Growth Rates

US Population Projections

POTENTIAL AMERICAN DEMOGRAPHICS

Total East Coast Ethnic PopulationsSource: US Census 2000

NY

NY

NY

NJNY

NJ

PA MA CT

NC GA FL

FL

0 500 1000 1500 2000 2500 3000

Chinese 884748 48%

Asian Indian812576 106%

Mexican 1549761 53%

Puerto Rican2718495 25%

Ethnic Group, Total Size & % Growth

1990 to 2000

Population X 1000

NY

NJ

PA

DE

MD

DC

ME

NH

VT

MA

RI

CT

VA

NC

SC

GA

FL

Figure 1a.

Total East Coast Ethnic PopulationsSource: US Census 2000

NY

NY

NY

NJNY

NJ

PA MA CT

NC GA FL

FL

0 500 1000 1500 2000 2500 3000

Chinese 884748 48%

Asian Indian812576 106%

Mexican 1549761 53%

Puerto Rican2718495 25%

Ethnic Group, Total Size & % Growth

1990 to 2000

Population X 1000

NY

NJ

PA

DE

MD

DC

ME

NH

VT

MA

RI

CT

VA

NC

SC

GA

FL

Figure 1a.

Where’s the Market?Where’s the Market?

CILANTROCILANTROCrop ResearchCrop ResearchCrop BudgetCrop BudgetMarket AnalysisMarket AnalysisMarket ConnectionMarket ConnectionMarketing IssuesMarketing Issues

Mapping; Identifying Market Mapping; Identifying Market OpportunitiesOpportunities

Developed by the Food Policy Institute, Source: U.S. Census 2000

Ethnic Group PopulationPuerto Rican 16,543Dominican Republic 11,321Mexican 6,189Peruvian 5,104Colombian 5,101Jamaican 3,486Asian Indian 2,076Arab/Arabic 1,611Filipino 1,343Syrian 973

#1 - Locate a Farm Market or OutletPatterson Farm Market449 East Railway AvenuePaterson, NJ 07503

#3 - Quantify Local Ethnic Markets: Top 10 Ethnic Populations within 2 Miles

#2 - Identify Ethnic Populations in Close Proximity

East Coast Ethnic Consumer SurveyEast Coast Ethnic Consumer Survey

Four Ethnic Groups Asian

Chinese Indian

Hispanic Mexican Puerto Rican

Span of Research 16 East Coast Bordering States + Washington D.C.

Sample size(s) statistically determined 90% Confidence Interval w/ 5% Margin of Error

Sample size requirements via stratified sampling method By state (16 +DC) By ethnic group

Assess Ethnic Produce DemandDevelop ethnic consumer surveyDeliver by phone via outsourced telemarketing firm

EAST COAST CONSUMER SURVEY EAST COAST CONSUMER SURVEY 1,084 Participants1,084 Participants

More willing Indifferent Less willing Unsure

Chinese 68% 17% 8% 8%

Indian 59% 26% 8% 6%

Mexican 77% 13% 7% 2%

Puerto Rican 78% 12% 6% 4%

Total 71% 17% 7% 5%


Chinese 65% 15% 9% 11%

Indian 55% 31% 9% 5%

Mexican 80% 13% 4% 3%


Total 69% 18% 8% 5%

Willing to buy ethnic produce in ethnic store.

Willing to buy ethnic produce grown on local farm.


Chinese 48% 27% 12% 12%

Indian 46% 28% 21% 6%

Mexican 56% 27% 12% 6%


Total 51% 26% 16% 7%


Chinese 18% 23% 41% 18%

Indian 10% 31% 48% 11%

Mexican 11% 22% 56% 11%


Total 13% 23% 52% 12%

EAST COAST CONSUMER SURVEY EAST COAST CONSUMER SURVEY 1,084 Participants1,084 Participants

Willing to buy organically grown produce

Willing to buy genetically modified produce

East Coast Ethnic Produce Study:Indian, Chinese, Mexican & Puerto Rican Consumers’

Produce Purchase Patterns; Frequency, Expenditures, & Access*

Accessibility to Grocery Store/Market: (Distance)Accessibility to Grocery Store/Market: (Distance)>70% respondents w/in 10 miles; >80% w/in 20 miles>70% respondents w/in 10 miles; >80% w/in 20 miles

Purchase Frequency, Expenditure & Total Market Size

7.54.3 4.3 4.7

$29

$23$23

$32

0

5

10

15

20

25

30

35

Chinese Indian Mexican Puerto Rican

Visits/Mnth

Exp/Visit

$270 Mil $210 Mil $321 Mil $592 Mil

Percent Population in Categories where Average Annual Expenditures Exceed National Average*Compared to

Corresponding Percent of Survey Sample Respondents in Similar Categories

Source: Consumer Expenditure Survey, 2005; Bureau of Labor Statistics, United States Department of Commerce

National Data: Average Annual Consumer Expenditures by Size of Consumer Unit

5+ people$551

4 people$499

1 person$191

39% of consumers

in categories where average

spending is >$357

3 people$419

2 people$355

Survey Sample: Respondents by Household Size (Chinese, Asian Indian, Mexican, & Puerto Rican)

Less thanthree people

75% of respondents

are from households having three

or more people

Consumer Expenditures and Household Size

* Source: Consumer Expenditure Survey, 2005; Bureau of Labor Statistics, US Dept of Commerce

Comparison: National Data* vs. Survey Sample

$596

$1,854

$1,300

$357

$0

$500

$1,000

$1,500

$2,000

Asian Chinese Asian IndianEthnic Group or Sub-group

Avg

An

nu

al E

xpen

dit

ure

National Data

Survey Sample

Nat'l Avg (All)

* Source: Consumer Expenditure Survey, 2005; Bureau of Labor Statistics, US Dept of Commerce

Comparison: National Data* vs. Survey Sample

$429

$1,306$1,473

$357

$0

$500

$1,000

$1,500

$2,000

Hispanic Mexican Puerto RicanEthnic Group or Sub-group

Avg

An

nu

al E

xp

end

itu

re

National Data

Survey Sample

Nat'l Avg (All)

Fresh Ethnic Produce Expenditures

Asian Consumers

Hispanic Consumers

Marketing Comes First Planning Marketing Comes First Planning for Changing Marketsfor Changing Markets

Do Your Homework

Find Your Market

Start Small

Work With University

Market DifferentiationMarket DifferentiationWholesale versus RetailWholesale versus Retail

The MarketplaceThe MarketplaceDistributing your ethnic productDistributing your ethnic product

Farmgate – Farmstand, PYO, CSAFarmgate – Farmstand, PYO, CSA Roadside Stands & Retail outlets off-farmRoadside Stands & Retail outlets off-farm Ethnic Grocery StoresEthnic Grocery Stores Farmer’s MarketsFarmer’s Markets RestaurantsRestaurants Specialty Produce StoresSpecialty Produce Stores Box StoresBox Stores Wholesale AuctionsWholesale Auctions

Places to Buy

Ethnicity

Chinese Asian Indian Mexican Puerto Rican

Frequency(Percent)

Frequency(Percent)

Frequency(Percent)

Frequency(Percent)

Typical American grocery store

45(17%)

154(57%)

225(83%)

187(69%)

Ethnic grocery stores

235(87%)

228(84%)

120(44%)

160(59%)

Community farmers market

5(2%)

38(14%)

62(23%)

64(24%)

On-farm markets or roadside stand

4(1%)

22(8%)

49(18%)

31(11%)

Total*289

(107%)442

(163%)456

(168%)442

(163%)

* Total number of responses by 271 respondents per ethnic group; percent is relative to 271 respondents

Ethnic Food Markets

Influence of AdvertisingInfluence of Advertising

Advertisement Type

Ethnicity

Chinese Asian Indian Mexican Puerto Rican

FrequencyPercent

FrequencyPercent

FrequencyPercent

FrequencyPercent

Out-of Store Ads79

(29%)50

(18%)149

(55%)154

(57%)

Visible-from Road Ads15

(6%)29

(11%)112

(41%)94

(35%)

On-Site or In-Store Ads56

(21%)103

(38%)192

(71%)155

(57%)

Point-of -Purchase Ads16

(6%)65

(24%)129

(48%)122

(45%)

None141

(52%)82

(30%)27

(10%)25

(9%)

Total*307

(113%)329

(121%)609

(225%)550

(203%)

* Total number of responses by 271 respondents per ethnic group; percent is relative to 271 respondents

Mexican Ethnic Produce RankingMexican Ethnic Produce RankingAverage Expenditure in $Average Expenditure in $

2.76

1.73

1.49

1.28

1.28

1.24

0.92

0.83

0.24

0.1

0 0.5 1 1.5 2 2.5 3

Chili J alapeno

Tomatillo

Calabaza

Chili Poblano

Calabacita

Cilantro

Chili Serrano

Anaheim Pepper

Chili Habanaro

Tutuma

Puerto Rican Ethnic Produce RankingPuerto Rican Ethnic Produce RankingAverage Expenditure in $Average Expenditure in $

1. 7 4

1. 5 8

1. 6 8

0 . 9 6

0 . 6 3

0 . 7

0 . 5 6

0 . 5 1

0 . 4 3

0 . 1

0 0 . 2 0 . 4 0 . 6 0 . 8 1 1. 2 1. 4 1. 6 1. 8 2

B at at a

A ji Dulce

C ilan t r o

C alabaza

Fava B ean s

P epin illo

C hili C ar ibe

B er en jen a

C alabacit a

Ver dolaga

Ethnic Produce Ranking ExampleEthnic Produce Ranking ExampleAverage Weekly Expenditure in $Average Weekly Expenditure in $

$2.26

$1.77

$1.60

$1.28

$1.29

$1.04

$1.10

$0.79

$0.71

$0.22

$0.20

$0.19

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50

Average Expenditure

Baby Pak Choy

Pak Choy

Oriental Eggplant

Oriental Spinach

Snow Peas

Napa Cabbage

Luffa

Edamame

Oriental Mustard

Basil Unit

Malabar Spinach

Perilla

Figure 1: Chinese Produce Ranking based on Average Expenditure ($)

Tutuma Squash

Verdolaga (Purslane)

Malabar Spinach

Perilla

Basil

Chile Caribe (Yellow Pepper)

Amaranth

Anaheim Pepper

White Pumpkin

Fava Beans

Chili Serrano

Mint Leaves

Edamame

Chili Poblano

Ridge Gourd/Luffa

Cluster Beans

Smooth Luffa

Snow Peas

Ají Dulce Sweet Pepper

Bottle Gourd

Fenugreek Leaves

Tomatillo

Spinach

Sweet potato

Zuchinni

Mustard

Baby Pak Choy

Calabaza

Napa Cabbage

Chili Jalapeno

Pak Choy

Pepinillo/Bitter Melon

Cilantro

Eggplant

PUERTO RICAN

MEXICAN

CHINESE

INDIAN

Figure 2.

Asian Indian Produce Preferences

0 50 100 150 200 250 300 350 400 450

Eggplant

Bitter Gourd

Fenugreek Leaves

Bott le Gourd

Cluster Beans

Mustard Leaves

Ridge Gourd/ Luff a

M int Leaves

White P umpkin

Amaranth

Relative Quantity Purchased per Household

Chinese Produce Preferences

Pak Choy

Napa Cabbage

Baby Pak Choy

Oriental Eggplant

Oriental Spinach

Snow Peas

Smooth Luff a

Oriental Mustard

Edamame

Basil

Perilla

Malabar Spinach


Mexican Produce Preferences

Chili J alapeno

Tomatillo

Cilantro

Calabaza

Calabacita

Chili Poblano

Chili Serrano

Anaheim Pepper

Chili Habanaro

Tatuma


Puerto Rican Produce Preferences

Sweetpotato

Cilantro

Ají Dulce (Sweet Pepper)

Calabaza

Bitter Melon

Fava Beans

Eggplant

Zuchinni


Verdolaga


Tutuma Squash

Verdolaga (Purslane)

Malabar Spinach

Perilla

Basil


Amaranth

Anaheim Pepper

White Pumpkin

Fava Beans

Chili Serrano

Mint Leaves

Edamame

Chili Poblano

Ridge Gourd/Luffa

Cluster Beans

Smooth Luffa

Snow Peas

Ají Dulce Sweet Pepper

Bottle Gourd

Fenugreek Leaves

Tomatillo

Spinach

Sweet potato

Zuchinni

Mustard

Baby Pak Choy

Calabaza

Napa Cabbage

Chili Jalapeno

Pak Choy

Pepinillo/Bitter Melon

Cilantro

Eggplant

PUERTO RICAN

MEXICAN

CHINESE

INDIAN

Figure 2.

Asian Indian Produce Preferences

0 50 100 150 200 250 300 350 400 450

Eggplant

Bitter Gourd

Fenugreek Leaves

Bott le Gourd

Cluster Beans

Mustard Leaves

Ridge Gourd/ Luff a

M int Leaves

White P umpkin

Amaranth


Chinese Produce Preferences

Pak Choy

Napa Cabbage

Baby Pak Choy

Oriental Eggplant

Oriental Spinach

Snow Peas

Smooth Luff a

Oriental Mustard

Edamame

Basil

Perilla

Malabar Spinach


Mexican Produce Preferences

Chili J alapeno

Tomatillo

Cilantro

Calabaza

Calabacita

Chili Poblano

Chili Serrano

Anaheim Pepper

Chili Habanaro

Tatuma


Puerto Rican Produce Preferences

Sweetpotato

Cilantro

Ají Dulce (Sweet Pepper)

Calabaza

Bitter Melon

Fava Beans

Eggplant

Zuchinni


Verdolaga


Weekly Purchases of Ethnic Produce by Ethnic Consumer Groups on the East Coast

Ethnic Produce Project; Crop Selection ProcessEthnic Produce Project; Crop Selection Process

Identify Ethnic Identify Ethnic Crops of Crops of InterestInterest

Generate Plot Plans; Maximize Research PotentialGenerate Plot Plans; Maximize Research PotentialConsider logistical concerns such as;Consider logistical concerns such as; * budget constraints * irrigation * seed availability* budget constraints * irrigation * seed availability * cross-contamination * plot space *supplies (plastic mulch, trellis)* cross-contamination * plot space *supplies (plastic mulch, trellis)

Re-visit Research Candidates Re-visit Research Candidates Examine survey demand rankExamine survey demand rankRe-evaluate Survey Rank Re-evaluate Survey Rank Consider production research potentialConsider production research potentialConsolidate/Maximize Consolidate/Maximize Remove/replace duplicates, improve varietyRemove/replace duplicates, improve varietyRe-prioritize Crops for Production Re-prioritize Crops for Production Select top 7 per ethnicitySelect top 7 per ethnicity

Rank Crops (2x); Production Potential & Survey DemandRank Crops (2x); Production Potential & Survey Demand Asian Indian (#1-10) Mexican (#1-10)Asian Indian (#1-10) Mexican (#1-10) Chinese (#1-12) Puerto Rican (#1-10)Chinese (#1-12) Puerto Rican (#1-10)

Conduct Process of Elimination; Conduct Process of Elimination; Identify Research Crop CandidatesIdentify Research Crop CandidatesConvene Panel of Experts to reduce list by Convene Panel of Experts to reduce list by ~50% due to existing production barriers;~50% due to existing production barriers;

ClimateClimateGrowth cycle Growth cycle Seed availability/regulationSeed availability/regulationCompetition/Commodity natureCompetition/Commodity nature

Create Initial Crop ListCreate Initial Crop ListCommon ethnic crops in local Common ethnic crops in local marketplacemarketplace

Alumni

Assess Supply Assess Supply & Demand& Demand

Develop Develop Production Plot Production Plot

PlansPlans

Prioritize Prioritize Production Production

ResearchResearch

x 2 Years

Agribusiness ProductsAgribusiness ProductsChineseChinese::

Baby Pak ChoyBaby Pak Choy

Pak ChoyPak Choy

Oriental EggplantOriental Eggplant

Oriental SpinachOriental Spinach

Snow PeasSnow Peas

Napa CabbageNapa Cabbage

LuffaLuffa

Mexican:Mexican:Chili JalapenoChili Jalapeno

TomatilloTomatillo

Chili PablanoChili Pablano

CalabacitaCalabacita

Chili SerranoChili Serrano

Anaheim PepperAnaheim Pepper

TutumaTutuma

Indian:Indian:Eggplant (Pushpa)Eggplant (Pushpa)

Fenugreek LeavesFenugreek Leaves

Cluster BeansCluster Beans

Bottle GourdBottle Gourd

Ridged GourdRidged Gourd

Mint LeavesMint Leaves

Eggplant (Bharta)Eggplant (Bharta)

Puerto Rican:Puerto Rican:BatataBatata

Aji DulceAji Dulce

CilantroCilantro

CalabazaCalabaza

Chili CaribeChili Caribe

PepinilloPepinillo

BerenjenaBerenjena

Fresh or Frozen SoyfoodsFresh or Frozen SoyfoodsRaw or Lightly CookedRaw or Lightly CookedHigh in SugarHigh in Sugar30-40% Protein30-40% ProteinRich in Vitamins - MineralsRich in Vitamins - MineralsAvoids Saturated FatsAvoids Saturated FatsAvoids CholesterolAvoids CholesterolSubstitutes - Animal Substitutes - Animal

ProteinProteinMore DigestableMore Digestable

Marketing Nutrition Marketing Nutrition Vegetable SoybeansVegetable Soybeans - -

EdamameEdamame SELLING POINTS

Marketing HealthMarketing HealthAsian Cabbages & GreensAsian Cabbages & Greens

Going MainstreamProvide Recipes

Marketing to RestaurantsMarketing to Restaurants

RU Research FarmRU Research Farm - - Chef’s DayChef’s Day

Marketing TasteMarketing Taste Not Just Parmigiana Anymore Not Just Parmigiana Anymore

JapaneseJapanese ChineseChinese IndianIndian JamaicanJamaican Puerto RicanPuerto Rican ItalianItalian African African FrenchFrench RussianRussian

AnaheimAnaheim ChiliChili CayenneCayenne TabascoTabasco JalapenoJalapeno HabaneroHabanero

Scoville Heat Scale Habaneros 50,000 – 500,000

Promising Hispanic Promising Hispanic PeppersPeppers

Aji Dulce – Pepper

Capsicum chinense

Promising Hispanic PeppersPromising Hispanic Peppers

Purple TomatilloPurple Tomatillo

Pineapple TomatilloPineapple Tomatillo

Tomatillo – Husk TomatoTomatillo – Husk Tomato

CiscinerosCiscineros

BatataBatata = Puerto Rican Sweet = Puerto Rican Sweet

PotatoPotato

RAREC Research PlotsRAREC Research Plots

Ethnic CucurbitsEthnic Cucurbits

Bitter GourdBitter Gourd

Evaluating Ethnic MelonsEvaluating Ethnic Melons

‘‘El El Dorado’Dorado’

‘‘La La Estrella’Estrella’

Calabaza ProductionCalabaza Production

Semi-bush hybrid Long vine type

Calabaza Trial Marketable YieldCalabaza Trial Marketable Yield

Cultivar

No

Fruit/acre

Wt. Fruit (lbs./acre)

Avg. Fruit (lbs.)

‘El Dorado’ 7,858 44,025 5.60

‘La Estrella’ 4,664 37,688 8.08

Significance * NS

Greenhouse Production

Greenhouse ProductionGreenhouse ProductionNorth AmericaNorth America

Production Area (Hectares)Production Area (Hectares)

CropCrop CanadaCanada USUS MexicoMexico Total NATotal NA

TomatoTomato 482482 350350 790790 1,6221,622

CucumberCucumber 199199 2525 118118 342342

Bell PepperBell Pepper 174174 2020 210210 404404

TOTALTOTAL 855855 395395 11181118 2,3682,368

Greenhouse Vegetable Greenhouse Vegetable CropsCrops

Cucumber

Bell Pepper

Tomato-Vine

Tomato-Beefsteak

Lettuce

Hot Peppers

Sweet Pepper

TomatilloBitter Gourd

Asian Greens

Ethnic Alternative

British ColumbiaBritish Columbia

Take Home Tips for Niche CropsTake Home Tips for Niche CropsFind Your Specific Market & then Grow for It

Know your Market before Planting

Talk to Local Produce People where Sold

Grow the Exact Varieties for targeted Ethnicities

Visit Ethnic Restaurants and Follow Food Chain

Calculate Weekly Planting on Market Need

Deliver Product at right Time & Temperature

Pack Product as the Customer wants it

Develop Good Relations with Buyers/Visit them

Back Track thru City Markets & Wholesalers

Work with University & Government Sources

Work With University

ThanksThanks

Ontario Fruit & Vegetable IndustryOntario Fruit & Vegetable Industry Food Policy Institute – Rutgers UniversityFood Policy Institute – Rutgers University USDA - National Research Initiative GrantUSDA - National Research Initiative Grant

Putting Science and Research to Work for Communities

Potential & Promise In Ethnic Markets Toronto 2007

Business

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