Recommendations for Marketing Youth Animal Projects – Sheep and GoatsDOWNLOAD FILE
May 25, 2020 - Author: Jeannine Schweihofer, Nick Babcock, Richard Ehrhardt, Michael Metzger and Thomas Guthrie, Michigan State University Extension
As an important part of raising livestock, youth need to market their animal project. This document will serve as a guide to help youth market, establish pricing, find a processor, keep records, and evaluate transportation considerations.
When marketing a youth animal project make sure to use the 5 Ps of marketing:
- Product – Understand the benefits and unique qualities of your animal.
- Price – Understand your break-even point and determine how you will price your animal.
- Place – Know where your customer will be purchasing your animal.
- Promotion – Think about how you will advertise your animal.
- People – Develop relationships with local families, businesses, industries, and organizations. These relationships will create a demand for your animal.
For more about marketing your animal project, review the Youth Business Guide to Success: Make the Most of Your 4-H Market Animal Project.
Pricing Your Animal Project
When establishing the price for your animal, you can sell it by the pound using either live or hanging carcass weight, or by a flat price per animal. Negotiation between the buyer and seller may take place to arrive at an agreeable price.
- Price by the pound using live weight – Use the regional market prices guide. When selling animals by live weight, you must use a certified scale to determine the weight of the animal.
- Hanging carcass weight – The processor will provide a weight for you. To calculate an estimated hanging carcass weight price, you can use the Freezer Goat Pricing Worksheet or Freezer Lamb Pricing Worksheet.
- Price per animal – This is a price that will be required to purchase your animal. This method of selling is also known as “selling by the head.”
Options for Marketing or Rehoming Your Small Ruminant
The average dressing percentage in market lambs and goats is 50% (range 45–55%). When selling your lamb or goat, give the buyer an estimate of the amount of meat that they should expect to receive. This is important to ensure 1) the buyer has adequate freezer space and 2) there is no confusion about why they may have purchased a 120 lb animal and are only receiving approximately 40 lbs of take-home, packaged retail cuts (Figure 1). Alternatively, you may be able to find other markets for your animal such as for a pet or companion animal or for grazing services in vegetation control. These options will also require negotiation of price with meat market value often used as an index to set this price.
The interactive map of meat processing and slaughter facilities in Michigan can help you find a processer. The map lists many of them, including those that are U. S. Department of Agriculture (USDA) inspected. Custom-exempt meat processors are not required to have a federal inspector present when they process meat only for the owner(s) of the live animal. When custom-exempt processing is used, the hanging carcass weight can still be used for final pricing, but the sale must be documented for the live animal. The owner of the live animal accepts responsibility for having the animal harvested without federal inspection. When using custom exempt processors, you may not sell or donate packages of meat and each package is marked “not for sale.” If you choose to resell or donate individual packages, you must use a USDA–inspected processor. You must schedule a time for your animal to be processed. Most processors have appointments scheduled months to a year in advance. Knowing what cutting services and packaging options are available by the processor will also be important in helping your buyer understand what products they may want from the animal they purchase. Communicate any fees that may be associated with processing to your buyer.
Animal Health and Handling
Your animals’ health is important to providing a safe, healthy product to the buyer. Food safety and animal well-being are taught as part of the Youth for the Quality Care of Animals. Several things should be considered for sheep and goat health. You should understand how moving and appropriately handling lambs and goats can affect meat quality. Pulling on the wool or hair can cause bruising of the meat.
Transportation of the Animal
Each market animal should have a transportation plan. Consider that the animal must be handled in an acceptable manner, and know who will transport it. Determine delivery logistics: timeframe, hauling fees, availability of appropriate unloading facilities, and unloading requirements. (Many processors do not allow customers to unload their own animals.) Be sure to account for the cost of time, equipment use, and fuel associated with transportation.
Record Keeping and Budgets
Record keeping and establishing a budget are important life skills learned in your livestock project. These skills will help you make marketing and management decisions with your project. A good record-keeping program will help you make decisions both now and in the future. For more information on record keeping including templates, see the Michigan 4-H Market Animal Project Record Book.