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Meat Market Development Developing Your Own Meat Market by Craig Morris Texas A & M University
In April I spoke at the Canadian Ostrich Association meetings in Winnipeg. One question often asked was "How can the ostrich industry create a meat market?"
I simply answered that there are many different ways that ostrich can find its way onto the plates of consumers. On the flight back to Texas I was reading the National Cattlemen's Association's report summary of the Strategic Alliances Field Study.
The Strategic Alliances Field Study, known as the Strategic Alliance, was designed to show that beef breeders (cow-calf producers), feeders (feedlot operators), and packers could all work together to maximise profits. While reading this report, a great idea came to me.
To give you some background, in the beef industry, as in the ostrich industry, the people who raise cattle are often separate from those who slaughter and process meat products.
This is in contrast to many other food industries where the companies who raise livestock are the same as those who process and sell the meat products. I agree that separation allows for small family farms to exist and for people to concentrate on the segments of the industry they enjoy.
For most of you this means raising ostrich and not worrying about other segments, like producing meat products.
The only problem with a segmented industry is that there is often a lack of communication between different segments of the industry and profits are often never realised. In the beef industry, a study by the name of the National Beef Quality Audit showed that for every steer or heifer slaughtered, nearly $280 was lost.
There were a variety of reasons for the $280 loss, ranging from over-production of fat to branding animals in the wrong location, but the take-home message was that the beef industry's worst enemy was itself.
I believe that the ostrich industry is in a unique situation in that it can learn from other established meat industries what mistakes have been made and not repeat them. The ostrich industry is young enough that strategic alliances don't have to break down the status quo, but can become the industry norm from the outset.
Strategic Alliance With a strategic alliance, producers can come together, share management practices and bargain as one unit. These producers can then locate and work with a meat lockers to provide the needed numbers of birds in the condition the meat processor desires. The meat processor then can guarantee consistent quality and quantity.
The largest complaint that I hear from meat processors today isn't that ostrich meat will not sell, but that ostrich meat is too expensive and there is no consistent supply available. When producers come together to form alliances, they can provide packers with a consistent supply.
Once the meat locker has a consistent supply of ostrich meat and ostrich by-products, the packer can find restaurants and retail outlets to market the products.
Producer partnerships can then target their input expenses to meet the value of a live bird based on what a meat locker can afford to pay for it. With alliances between producers and retailers of ostrich meat made, the ostrich industry will be well on its way to guaranteeing itself a bright future.
The way ahead in the market place Ostriches On Line, together with numerous partners and breeding farms have already invested heavily in the worldwide promotion of ostrich, the "Healthy Red Meat." Through the Ostriches On Line Slaughter Program, we have numerous USA slaughtering facilities as well as processing plants in a number of overseas countries.
By working for you with these marketing and slaughtering programs, you can be sure that Ostriches On Line are well placed to help you in the ostrich business.
Meat Market Development Developing Your Own Meat Market by Craig Morris Texas A & M University
In April I spoke at the Canadian Ostrich Association meetings in Winnipeg. One question often asked was "How can the ostrich industry create a meat market?"
I simply answered that there are many different ways that ostrich can find its way onto the plates of consumers. On the flight back to Texas I was reading the National Cattlemen's Association's report summary of the Strategic Alliances Field Study.
The Strategic Alliances Field Study, known as the Strategic Alliance, was designed to show that beef breeders (cow-calf producers), feeders (feedlot operators), and packers could all work together to maximise profits. While reading this report, a great idea came to me.
To give you some background, in the beef industry, as in the ostrich industry, the people who raise cattle are often separate from those who slaughter and process meat products.
This is in contrast to many other food industries where the companies who raise livestock are the same as those who process and sell the meat products. I agree that separation allows for small family farms to exist and for people to concentrate on the segments of the industry they enjoy.
For most of you this means raising ostrich and not worrying about other segments, like producing meat products.
The only problem with a segmented industry is that there is often a lack of communication between different segments of the industry and profits are often never realised. In the beef industry, a study by the name of the National Beef Quality Audit showed that for every steer or heifer slaughtered, nearly $280 was lost.
There were a variety of reasons for the $280 loss, ranging from over-production of fat to branding animals in the wrong location, but the take-home message was that the beef industry's worst enemy was itself.
I believe that the ostrich industry is in a unique situation in that it can learn from other established meat industries what mistakes have been made and not repeat them. The ostrich industry is young enough that strategic alliances don't have to break down the status quo, but can become the industry norm from the outset.
Strategic Alliance With a strategic alliance, producers can come together, share management practices and bargain as one unit. These producers can then locate and work with a meat lockers to provide the needed numbers of birds in the condition the meat processor desires. The meat processor then can guarantee consistent quality and quantity.
The largest complaint that I hear from meat processors today isn't that ostrich meat will not sell, but that ostrich meat is too expensive and there is no consistent supply available. When producers come together to form alliances, they can provide packers with a consistent supply.
Once the meat locker has a consistent supply of ostrich meat and ostrich by-products, the packer can find restaurants and retail outlets to market the products.
Producer partnerships can then target their input expenses to meet the value of a live bird based on what a meat locker can afford to pay for it. With alliances between producers and retailers of ostrich meat made, the ostrich industry will be well on its way to guaranteeing itself a bright future.
The way ahead in the market place Ostriches On Line, together with numerous partners and breeding farms have already invested heavily in the worldwide promotion of ostrich, the "Healthy Red Meat." Through the Ostriches On Line Slaughter Program, we have numerous USA slaughtering facilities as well as processing plants in a number of overseas countries.
By working for you with these marketing and slaughtering programs, you can be sure that Ostriches On Line are well placed to help you in the ostrich business.