Understanding the Ethnic Consumer

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ETHNIC MARKETING OF LAMB & MUTTON 26 NOVEMBER 2013 KATHERINE M HARRISON Understanding the Ethnic Consumer

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This presentation was the second in a four-part series on the ethnic marketing of lamb and mutton. It was prepared by Katherine Peterson, whose family has a farm and butcher shop in Ohio.

Transcript of Understanding the Ethnic Consumer

Page 1: Understanding the Ethnic Consumer

ETHNIC MARKETING OF LAMB & MUTTON26 NOVEMBER 2013

KATHERINE M HARRISON

Understanding the Ethnic Consumer

Page 2: Understanding the Ethnic Consumer

How do cultural components shape “ethnic markets” and what products do these consumers seek?

•What is your marketing plan for your farm?

•Do you utilize the product you raise? Do you promote it?

•Are you connected to the consumer of your product? Do you know what your end consumer desires?

•Do you collaborate with other producers?

•Have you become politically active as a farmer?

•Are you proud of being a farmer?

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Value-Added Approach to Sheep & Goats

Conventional livestock & grain farm in a rural town in central Ohio

Off-farm jobs supplemented farm income from sheep & goat production

As a family, we were committed to keeping our farm functional, intact, and in the family.

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Our small rural town was becoming another suburb:Our small rural town was becoming another suburb:

Our area was welcoming diverse cultural groups:Our area was welcoming diverse cultural groups:

Many local farms were becoming subdivisions

It was no longer feasible to farm using conventional methods and still make a profit

Livestock prices fluctuated dramatically

Central Ohio has become home to a number of immigrant & refugee groups

These individuals continue to seek their traditional sources of protein, typically lamb & goat meat

Changing Communities, Changing Demographics

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•WE KNEW THE MARKET WAS THERE.•WE HAD THE PRODUCT THE MARKET DEMANDED.•WE NEEDED A MEANS TO KEEP OUR FAMILY FARM

OPERATIONAL & PROFITABLE.•WE WERE COMMITTED AS A FAMILY TO MAKING A NEW

BUSINESS VENTURE A SUCCESS.•WE WANTED TO ENSURE WE APPROACHED THIS

PRUDENTLY & PROPERLY AS A BUSINESS.

Niche Marketing

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Blystone Farm Butcher Shop, opened 2004We worked with several entities to ensure compliance with regulations and to gain more knowledge.

Ohio Revised Code

Ohio Department of Agriculture

County EPA

Ohio State Extension

Ohio State University Meat Lab

Ohio Sheep Improvement Association

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What are consumers seeking?

FRESH productAbility to pick their own animalHaving the kill done in a ritual mannerAbility to take home their favorite partsClean processing locationPleasant customer experiencesOpportunity to visit a farmEvery consumer seeks different products –

understand your specific market.

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Marketing to Ethnic Communities

Understand Ritual Slaughter: Halal Kills and Kosher Kills have specific requirements

Learn that cultural traditions of communities also dictate slaughter & processing

Appreciate that cooking techniques of meat products influence the manner in which it is butchered

Recognize that communication styles and purchasing protocols vary around the world

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Custom, On-Farm, Ritual Slaughter

ODA inspected Full-time staff: family, Part-

time help from ethnic community

Livestock purchased from farmers throughout the Midwest

East African (Ethiopia, Eritrea) Orthodox Christian Community largely seeks ewes

Cultural slaughter preferences & preparation techniques

Meat served with injera, vegetables, cheeses

Major holidays: Ethiopian Christmas, Lent, Orthodox Easter, Ethiopian New Year

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Eid al Adha: High Muslim Holy Day, Festival of the Sacrifice, honoring the patriarch Abraham

The West African, North African, and Middle Eastern Muslim Communities buy numerous lambs in OH.

Buyers tend to prefer a finished lamb around 100 pounds, but will purchase smaller animals or culls dependent upon price.

Major Celebratory Observances: Ramadan, Eid al Fitr, Eid al Adha, Baby Naming.

Meat is typically served with vegetables and rice. Spices & cheeses are relied upon. Fruit based juices are popular.

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How can a farmer reach these markets?Consider all options for marketing animals: stockyards, direct-to-packer, direct-to-consumer.

Investigate farmer’s markets that accept EBT & WIC.

Be mindful of holiday times – these can trigger high prices! Understand the desired products for specific buyers/holidays.

Follow all regulations regarding sales.

2014 2015 2016

Ramadan 6/28 6/18 6/6

Eid al Fitr 7/29 7/18 7/7

Eid al Adha

10/4 9/23 9/11

Western Christmas

12/25 12/25 12/25

Orthodox Christmas

1/7 1/7 1/7

Western Easter

4/20 4/5 3/27

Orthodox Easter

4/20 4/12 5/1

Ethiopian New Year

9/11 9/11 9/11

Passover 3/15-22 4/4-11 4/23-30

Chanukah 12/17-24 12/7-14 12/25-1/1

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Meet Mohamed Abdi! Somali Bantu

refugee Receives EBT Devout Muslim Halal butcher Father of TEN! Goat Enthusiast! Budget Conscious

Will someone on a tight budget continue to choose an expensive meat in light of increased livestock prices?

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Do You Have “Good” Sheep?

In the ethnic community, fresh products are highly esteemed.

Other buzzwords include “pure”, “organic”, and “natural”.

In reality, though, their definitions do not match USDA standards.

The ethnic focus is on farm fresh, preferably local, products.

Budgetary constraints, however, impact buying decisions.

Consumers seek custom processed, ritually slaughtered products . . . But will choose imported frozen meats if the price is right.

Ethnic customers tend to utilize rice & breads to stretch meals.

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Economics of Lamb & Goat Production

Production of lamb & goat is rising.

Consumers are recognizing the value of locally raised products.

Sheep & goats are small, easy to manage, and reproduce rapidly.

Prices will continue to fluctuate until the production nears the demand, and there is a steady supply available.

There is a greater demand for goat & lamb than the current supply in America.

The demand drives the price up for fresh, ritually slaughtered goat & lamb.

Generally the individuals who enjoy these products have budgetary restraints.

The supply is supplemented by frozen Australian & New Zealand product, available at lower cost.

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Ethnic (Direct) Marketing

There can be difficulties in communicating between cultures. Patience & understanding can solve many problems – even with fellow Americans!

Different cultures emphasize different styles of purchasing – understand, but be firm. Always make sure to finalize payment!

Seek educational opportunities to gain cultural understanding: agricultural educational venues, internet resources, international groups.

Never hesitate to ask questions to learn what a customer is seeking; knowledge is always beneficial.

The ethnic community relies on word-of-mouth promotion; use positive personal experiences to promote your farm. Periodicals welcome advertising from American businesses & farms.

Illegal slaughter may seem like a quick way to make money, but it impacts the entire industry: educate yourself on regulations regarding slaughter and do not set yourself up for failure!

Smiles & thanks are universally appreciated!

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There is no enterprise as ancient and noble as the care of the earth and its creatures.

Identify a niche and market to it!

Understand what your chosen consumer seeks!

Promote the unique quality of your product!

Set a price that justifies production! Profit is NOT a dirty word in farming!

Eat your product – use what you produce!

Network with producers to share ideas!

Connect with your governmental leaders!

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Questions?

www.blystonefarm.com

Blystone Farm on Facebook

[email protected]