Goat Industry Markets

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Goat IndustryMarkets MarketabilityPresenter
Michael Domingues Woolwich
Dairy Inc.
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Topics

• A brief synopsis of the industry, specialty
  cheese then specifically goat cheese
• What is fueling the growth of the industry
• Future challenges and opportunities facing the
  industry in years to come

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Cheese Consumption
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More Cheese pleaseNOW!

• The cheese industry continues to grow in leaps
  and bounds
• Cheese consumption in Canada, Mexico and the US
  combined exceeded 5.0 million metric tons in
  2006.
• Since 2001, cheese consumption in North America
  has increased at an annual average rate of 2.3,
  with most of the gains occurring in the US.

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US Cheese Consumption

• Cheese consumption is currently estimated at
  about 31.4 pounds per capita
• US annual cheese consumption per capita is
  projected to reach 33 lbs. by 2013 (Whats in
  Store 2006)

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US Consumption continued

• Between 1994 and 2003, total U.S. cheese
  consumption grew from 7.0 billion lbs to 8.8
  billion lbs, a 26 increase.
• (Source US Dept. of Agriculture, 2005)

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Canadian Cheese Consumption

• Annual per capita consumption of overall cheese
  reached 26.84 lbs in 2006
• Specialty cheese per capita consumption doubled
  from 8 lbs in 1980, to 16 lbs in 2006
• ( Source Canadian Dairy Council, 2007)

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Comparative Cheese Consumption
(Source FAS/CMP/DLP, 1999)
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Specialty Cheese
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Specialty Foodstill on the rise!

• Entire specialty foods market in US demonstrated
  a compound annual growth rate of 7 over past
  several years
• Source Packaged Facts released by
  marketresearch.com

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Specialty Cheese

• Specialty Cheese sales in America soared to more
  than 650 million in 2005, a 14.2 increase from
  the previous year
• In 2004, over 35 of stores in the US offered a
  Specialty Cheese department, (Source Whats In
  Store 2006)

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Deli items responsible for the most growth!

• Most growth in 2002-2004
• Salads 13
• Prepackaged Items 13
• Deli Specialty Cheese 12
• (Source Whats in Store 2004)

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Specialty Cheese

• In the US, Specialty cheese consumption increased
  five times faster than commodity cheese
  consumption between 1994 and 2003
• (Source Whats in Store 2006)
• Between 1994-2003 Specialty cheese consumption
  increased from 420 million lbs to 815 million
  lbs, a 94 jump.
• (Source US Dept. of Agriculture, 2005)

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Specialty Cheese

• 1993 to 2003, cheddar production in Canada grew
  by 21 while specialty cheese production grew by
  32
• (Canadian Dairy Commission, 2004)
• 2004, Canadas production of specialty cheese was
  215,750 tonnes
• (Canadian Dairy Commission, 2004)

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Growth of Cheddar vs. Specialty Cheese

• Source York University (1995)

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Getting your Goat!
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Goat Milk Production in Canada

• National production of Goats milk increased by
  approx. 20 between 2001-2004
• National production surpassed 20 million litres
  in 2004
• (Source Ministry of Agricultural Food and Rural
  Affairs, OGMPA, 2004)

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Goat Milk Production in Canada

• Total 20, 069,000 litres produced in 2004

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Goat Cheese Supply Demand

• Demand for goat milk is primarily driven by
  increased demand for goat cheese
• In 2001, approximately 45 of all goat milk
  produced was used for cheese
• In 2004, this number exceeded 60
• Ontario continues to be Canadas largest producer
  of goats milk in Canada
• (Source Ministry of Agricultural Food and Rural
  Affairs, OGMPA, 2004)

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Fastest Growing Cheese Type in Deli!

• In 2005, Goat cheese was the 9th fastest growing
  type of cheese.
• (Source Whats in Store 2006)
• Top 10 List of Fastest Growing Cheese Types
• Gorgonzola, Asiago, Mascarpone
  began with a smaller base resulting in inflated
  growth rates

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Goat Cheese Category

• The key categories of goat cheese are Fresh
  Unripened, Soft ripened, and mixed cheeses

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Goat Cheese Sales Segment

• The majority of goat cheese product is sold at
  the large retail outlet level
• (Source Ministry of Agricultural Food and Rural
  Affairs, OGMPA, 2004)

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Goat Cheese

• Goat cheese sales dollars increased more than
  101 from 2003 2005
• Dollar sales in 2005 were up 48 from 2004
• Consumers no longer have to go to specialty
  stores to find their goat cheese, because its
  stocked at almost all major grocery retailers
• Source Whats In Store 2007

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Goat Cheese Growth

• Source York University (1995)

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Goat Cheese GrowthWhy?

• Health Conscious consumers are better educated on
  nutritional facts
• In comparison to other soft cheeses, such as
  cream cheese made from cows milk, goat cheese is
  significantly lower in fat, cholesterol, AND
  calories

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Goat Cheese GrowthWhy?

• Lactose Intolerance- lower levels of lactose
  found in Goats cheese can make it a suitable
  alternative to cows cheese
• Goats milk contains 13 less lactose than cows
  milk and 41 less than human milk
• Cows Milk Allergy- consumers with cows milk and
  cheese allergies may be able to consume goats
  milk products because it contains a different
  type of protein
• 5 of consumers are allergic to the proteins in
  cow milk cheeses

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Bolder Cheese is the future

• Consumers continue to be fascinated with
  stronger, bolder offeringsmaturing tastes
• Domestically produced aged cheeses can rival
  European imports
• Surface Ripened cheese sales are up 15 from
  2004-2005 (Whats in Store 2006)
• In years to come, the movement toward artisan,
  ethnic and organic cheese types will become
  stronger
• (Source Whats In Store 2007)

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Identify the trendsno longer just a fresh chevre
world!

• These consumers are better traveled and their
  palates have expanded towards more adventurous
  foods
• Almost a necessity for stores to offer a range of
  products to distinguish themselves from
  competitors

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Challenges to the Goat Cheese Industry

• Sku/Industry Consolidation- Mergers
  acquisitions and increased competition as more
  players enter the market
• Control Label-Increased pressure from large chain
  store towards private label
• Pricing- result of increased competitive landscape

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Thank You