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The Evolving Meat Goat Industry Entreprenurial Phase A few Texas ranchers made a trip to South Africa in the early nineties to look at the big meat goat with a white body and a red head they had heard about. Just one look and they knew they had found an answer to the Spanish goat that was and had been the meat goats of America. After visiting several farms in South Africa, they selected a foundation group of goats and started the long process and expensive process of bringing them to the USA. In 1994, Carrie and I were in Texas attending the Sonora Rambouillet Test Field Day and one of those original imported Fullblood Boer bucks was on display. Carrie took one look and said I want one of those. As the story goes… the rest is history. Soon Texas was the hotbed of Boers, with demand exceeding supply by huge margins resulting in prices that were very high to say the least. I remember seeing a long sided, tall and very thin made Boer buck that was all the rage in Sterling City, Texas that several ranchers had pooled their money on and purchased for $65,000. We purchased a three quarter blood son, found another Fullblood buck and headed for Utah. We had caught the fever and soon our Saanen Does all had half blood Boer kids following them. Boer bucks have little value without Boer does and so our search was expanded to include Boer does. We attended the Midwest Stud Ram Sale in Sedalia, MO which we had been attending with our Rambouillets and they had a special sale devoted to the new rage of Boer Goats. We found a doe kid that we really liked and soon realized that others liked her also as she brought $8,000. We ended up purchasing our last choice doe at nearly $3,000 [she would be dead in 30 days which was the beginning of our education into the health issues associated with raising Boers]. We returned to Texas in search of does. Don Smith and Norman Kohls were on that first trip to South Africa and they were one of the first to combine for a Production Sale which we attended. The prices at that first sale left us depressed as they were very high and we were only able to purchase a couple of does. We went to several farms to see if we could purchase does and were always told no, we are building our flock and cannot sell any does. Finally, we visited Charles Turner who had an incredible group of does and again his response was we have not sold a single doe yet and it will be a couple of years before we will sell any. But, he said we will sell you embryos. Not only had I found access to does but I had found access to some of the best does in the USA as he would only flush his best does. Our second chapter of education was about to begin…flushing and kidding recipient does. We felt like we were drinking from a fire hose! Growth Phase Flushing resulted in geometric growth in Boer numbers and everyone immediately assumed the growth would go on many years as the demand appeared to be nearly insatiable. By the late 90’s there were a plethora of production sales scattered across the country with Labor Day weekend in Texas providing back to back sales from Friday through Monday. Prices were strong and Boer goat fever was everywhere. The strong prices were leading to infighting in the ABGA registry and soon a split occurred and a second registry IBGA was started and not too long down the road as the infighting continued a third Registry resulted. Other problems included the marketing of percentage goats as Fullbloods, selling sick goats, teat alterations and the list could go on. Breeding shows were popping up all over the country which served to extend the promotion of the Boers into new areas and the growth continued. By the turn of the century, you could see the Boer influence in every commercial flock in Texas. The extremely fast growth also resulted in generational improvement in quality. A lot of the original import animals were classified as culls. Other importations had occurred from Australia [The ABS importation] and from New Zealand [The Landcorp importation]. Additional importations from South Africa were coming in through Canada. The Boer goat industry was the fastest growing sector of agriculture in America. The goats could be run with commercial sheep and cattle operations and compliment land use while providing additional income, often with only minimal increases in management and expense. The ethnic groups in America were consuming the goat meat and the demand for goat meat was growing faster than our ability to produce goat meat was growing. Texas had 800,000 meat goats which is considered maximum capacity, so the growth had to occur outside Texas which was happening including right here in the west. MSMGA was created in the 90’s to assist meat goat producers here in the west in becoming successful producers of meat goats. Goals for MSMGA include goat health, nutrition, marketing and shows bringing commercial, farm flock and seed stock producers together for networking and education. Mature Phase The maturation of the meat goat industry is really a splitting of the industry into two phases. One phase the seed stock sector is decreasing in size as you witness the large number of dispersal sales around the country. This is not reflective of the falling apart of the industry nor is it reflective of a significant decrease in demand within the overall industry. More accurately stated it is an adjustment reflecting the demand for high priced Fullbloods. There is still a demand for Fullblood seeds tock and their always will be as the underlying industry which is the second phase or sector has strong demand and is still growing. Commercial goat production is now becoming a central focus of the industry and it will continue to increase in size and demand due to the corresponding growth in the ethnic populations of the country who are the principal consumers of goat meat. There is a sense that the meat goat industry is falling apart and that it is joining the ranks of the Ostrich and Chinchilla industries of yesteryear. Nothing could be further from the truth and those who are in the know are participating in the growth that still continues albeit at a slower rate than in previous years. Recent feed prices have altered the economic profitability of raising meat goats for many producers who did not have access to a cheap supply of feed, nevertheless that does not change the fundamental demand both active and present demand as well as the latent demand for product. Foresight and patience are required in all aspects of agriculture to be successful and have long term viability. If you have any doubts about that have a visit with a dairyman. There have historically been periods of financial loss in all of agriculture which often take out hobby producers leaving those with longer term vision and the more efficient producers to carry the industry forward. The meat goat industry has led many to believe that it is a get rich quick scheme that is guaranteed to make big money in a short period of time with minimal or no inputs beyond acquiring the goats. I recently had a visit with one such producer who is not happy that they have 3 kids from 10 does, when I pointed out the need for a mineral program and feed supplementation the response was, we just don’t want to spend that much money on these goats. They will sell them off with the assurance that meat goats are not profitable and a fad that is going out of style now. But consider the following actual case. Last fall I arranged for some late sales of goats which included the following group. This group consisted of 116 kids that Richard Gilton came and picked up from the ranch. As they went on the feedlot, they weighed an average of 48 lbs. The contract price was $1.00 per pound. There was a death loss of 5 head which is about 4% which is common for any species in a feedlot setting. Richard has learned how to keep them alive over the past few years which is not an easy task. He sold 111 head with the final sale occurring on April 10th for a total selling price of $11,172 with the producer receiving the original contract amount of $5,568 plus an additional $2,602. Do you know of anywhere else that you could have deposited $5,568 on November 19, 2008 and received $2,602 in interest ending on April 10, 2009? Let’s take this example a step further. Those 116 kids were the resulting crop from 76 does that were all kidded out on the open range in Wyoming without any assistance for a 152% crop. Let’s assume that the does were worth $125 a head which makes the entire herd worth $9,500. The kid crop yielded a total of $8170 net to the producer which is 86% of the value of the mother herd. Run those numbers on cattle and see how they come out. Run them on sheep and see how they come out. I submit to you that the commercial goat market is not only alive and well but significantly more profitable than cattle or sheep! Moreover, when I was at Richard Gilton’s farm in April for the Gold Rush Sale, he had offers for prime kids nearing $2 a pound live! There were none to be found anywhere. There are some keys to success in the flock used in the example: · They have consistently used the best Bucks they could purchase. Often these bucks would cost as much as $750 each more commonly they were in the $350-$500 range. The bucks included Fullblood Boers, specially selected Spanish, and composite bucks that were bred specifically for the Wyoming open range environment. The result is kids that are bred to perform when they hit the feedlot. Quality genetics are an absolute if you want a successful program, if you cut corners here you are toast [as Maren says]. · The does were supplemented in the winter with whole corn at the rate of 1.4 lb per head per day. They grazed year round other than this supplementation. · The mineral program included sheep minerals as they were run with sheep. As you know, sheep minerals are not the best for goats as there is no copper in them, but in this case it is the only option and it has worked. Minerals are less important when the animals graze ‘strong feed’ [strong feeds are include browse, woody plants, weeds and grasses that have fully matured] than when they are on pastures and in confinement. · Being herded, the goats move to new feed grounds daily which keep the worm load and disease to a minimum resulting in this group not receiving any wormer or vaccinations. Conclusion I could give you several other examples of breeders who are successful in both the commercial end as well as in the Fullblood seed stock end of production. One area I have not mentioned is the show wether market which again is a growing specialized market sector. If you are serious about meat goats you can be successful. Meat goats are just as profitable as they ever were, the significant change is that the markets have changed as the industry has matured resulting in more complex as well as more specialized markets. MSMGA was created to assist producers in being successful, this has always been the mission and that goal is still in place. In order to take full advantage of that goal you need to be an active member who attends functions, networks with other producers and stays current on marketing, production and health issues. The website is designed to assist in this process, the email chat list is part of the process as well as the numerous functions that are held around the area annually. In addition to MSMGA, there is a new organization in the making. The American Goat Federation is moving from the conceptual stage to becoming a reality. This organization is designed to assist with the same goals as MSMGA only at the national level. The American Goat Federation will be associated with the American Sheep Industry [ASI] in order to take advantage of lobbying efforts in Washington DC and effectively represent goat producers in regulatory issues and in a variety of other areas. This organization will effectively network goat producer organizations from around the country providing tremendous opportunities for the industry to come together as a national force and take advantage of the latest information and technology. Look for updates on the advancement of this organization as the year progresses. The world of meat goats and goat meat is growing and flourishing, you need to be current on these issues to reach your maximum effectiveness and success. |
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