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ALABAMA MARKET SURVEY:
IDENTIFYING OPPORTUNITIES FOR
EXPANDED RABBIT MEAT PRODUCTION
Presented to:
Membe rs of the Alabama Agricultural Land Grant Alliance
By:
Winston Leavell,
The State Affairs Company
And
Polidais LLC
May 2004
GENERAL MARKET CHARACTERISTICS:
RABBIT INDUSTRY OVERVIEW
The rabbit industry covers a broad spectrum of categories, including: meat rabbits, pet
rabbits, rabbits raised for their pelts and furskins. The value of the US rabbit industry is
estimated at $25 million a year. This includes a $15 million value for rabbits raised for
research purposes and $10 million a year from the sale of rabbit meats and pelts. These
estimates do not include rabbits that are pets or show rabbits.
The US exports small amounts of live rabbits, rabbit meat, and furskins. In 2000, the
total value of these exports was $613,000, a major decrease from $1.7 million in 1999.
Most live rabbits are exported to Canada. 1 ,2 For frozen or fresh rabbit/hare meat (totaling
only $75,000 in 2000 as compared to $556,000 in 1999 and $977,000 in 1998), the top
countries receiving US exports in 2000 were Mexico, Hong Kong, Japan, and
Switzerland. The top countries receiving US exports of raw rabbit/hare furskins in 2000
were Chile, Israel, Russia, and Canada. In 2000, tanned or dressed rabbit/hare furskin
exports went to Spain, Chile, Japan and Germany. 3
In 2000, over 99.5 percent of all live rabbits imported into the US came from Canada; the
remainder came from Germany. Imports of rabbit meat came primarily from China, and
small amounts came from Canada. The largest numbers of furskins came from Belgium,
Spain, Czeck Republic, Portugal, and France. 4
Meat Production
US Rabbit Farms
In 1997, there were 13,320 farms with rabbits in the US, with a total inventory of 530,189
rabbits. (Since farms are defined as premises with $1000 or more in agricultural sales,
these inventory estimates may not include rabbits kept as pets.) Texas had the largest
number of rabbit farms, while California had the largest number of rabbits. 5
Global
In 2000, 735 million rabbits were slaughtered worldwide, producing just over 1 million
metric tons of rabbit meat. The world‘s leader in rabbit meat production was China, with
31 percent of total production. 6 In a telephone conversation (March 2004) with Pat
Lamar, President of the Professional Rabbit Meat Association, the problems associated
1
“Rabbit Calicivirus Disease,‖ Iowa Impact Worksheet, APHIS, USDA, April 2000.
2
―Viral Hemorrhagic Disease of Rabbits,‖ Utah Impact Worksheet, APHIS, USDA, August 28, 2001.
3
See footnote #2.
4
See footnote #2.
5
See footnotes #1 and #2.
6
See footnote #2.
3
with imported Chinese rabbits are that ―they are underselling us,‖ ―they are low quality‖
and ―it was through China that Mexican rabbits contracted Viral Hemorrhagic Disease.‖
Others 7 note that in Europe, the countries that produce more than 100 tons of rabbit meat
per year are Italy, France, and Spain. In South America, rabbit production is
concentrated in Brazil and Uruguay. The promotion of backyard rabbitries in rural areas
of Mexico has led to a total annual output of over 10,000 tons for home consumption and
commercial uses. Rabbit production in Canada is not very popular. Production is
concentrated in the Quebec province where it is subsidized by the provincial government.
Rabbit production in the Caribbean is more family operated. In Africa, Ghana is
considered a very active country in the promotion of rabbit meat, where approximately 5
million rabbits are eaten annually.
In Australia and New Zealand, rabbits had, until recently been considered terrible pests,
responsible for destroying many crops. Now research is underway in Australia as the
rabbit meat industry has been revitalized with the establishment of commercial rabbit
meat farms.
The Australian Commonwealth Scientific & Industrial Research‘s (CSIROnline)
Crusader Meat Rabbit Project provides information on the rabbit meat industry. CSIRO
reported that:
―Today rabbit is an interesting part of modern Australian cuisine, reflecting the place of
rabbit in European and Asian cooking. The restaurant trade is largely supplied by farmed
rabbit meat and demand is currently far outstripping supply.‖
(See Appendix A for additional information on international activities related to rabbit
meat production and consumption)
7
Lebas F., Coudert P., DeRochambeau H., Thebault R.G., The Rabbit: Husbandry, Health and Production
(2nd . Ed.). Food and Agriculture Organizat ion of the United Nations (FAO). Ro me (1997): 1-9 and Cheeke
P.R., Rabbit Production in North America. In: Proc. 4th Congress of the World Rabbit Science Association.
Budapest, Hungary (October 14, 1988), and McNitt J.L., Patton N.M ., Lu kefahr S.D., Cheeke P.R., Rabbit
Production (8 th Ed.) Interstate Publishers, Inc. Danville, Ill. 2000 all fro m Vidal A.A., ―Small-Farm Rabbit
Meat Production and Consumer Demands in South Texas,‖ December 2000.
4
ALTERNATIVE USES OF RABBITS
In addition to raising rabbits for meat, growers have a number of options available in the
broader rabbit industry. Growers can determine whether or not it makes business sense
to be involved in more than one line of rabbit production at a time. This is a particularly
important consideration in light of the seasonal aspect of the meat rabbit industry, where
supply seems to be highest in the summer season, when demand is lower and vice versa.
Pat Lamar of PRMA writes that, ―To ensure a steady, year-round income, the grower is
faced with finding alternative markets during the low demand seasons to take up the slack
in income and enable continuation of the desired breed-back schedules. Once a breed-
back schedule has been disrupted, it is often difficult to get the rabbits ―back on
schedule‖ again.‖8
Lamar‘s classification of alternative markets include:
Pet Rabbits
The Reptile Feeder Market
―Pinkies‖ and ―Fuzzies‖ (go hand in hand with reptile feeder markets)
Endangered Carnivorous Species Feeders
Military Survival Training
Racing Greyhounds (for training purposes)
Zoo Predator Animal Feeders
Show Dog Market
Crafts (rabbit foot key chains)
One other area where rabbits are used is in scientific and medical research. For example,
byproducts from slaughter that can be marketed include rabbit brain powder and blood
serum.
Without question, the largest processor of rabbit biologicals in the US is Pel-Freeze
Biologicals, located in Arkansas. According to a conversation with Ms. Katrina Forbes
of Rabbit Man Farms in Mississippi, Pel-Freeze‘s biological production is the primary
activity, thus making the meat processing tantamount to a byproduct. 9 Both Ms. Forbes
and Ms. Beth Seely, of Seely‘s Ark in Ocala, FL, reported that they both have inquiry for
biologicals from time to time, but that the activity requires a different level of marketing
than that for meat. 10 Further, processing facilities must incorporate proper systems to
allow for the recovery, collection and storage of biologicals.
Rabbits can also be marketed for their pelts and furskins though the furskins of meat
rabbits are apparently not of a quality for this purpose.
8
Pat Lamar, ―Alternative Markets: Regulat ing A Gro wer‘s Business,‖ accessed March 2004 fro m
http://revolution.3-cities.co m/~fu zyfarm/a lternative.htm,
9
Katrina Forbes, telephone interview with Winston Leavell, April 6, 2004.
10
Beth Seely, telephone interview with Winston Leavell, April 14, 2004.
5
Another alternative use for rabbits is in vermicomposting—composting with worms.
According to a document produced by the Mississippi State University Extension
Service, ―Raising earth worms is a business in itself and requires more time and attention
than you may think. There is more to this than building frames to catch the manure and
harvesting the worms. This extra business may rob some precious and needed attention
from your rabbits; therefore, it is not recommended.‖ 11
The same publication also addressed using rabbit manure as a fertilizer. ―As the cost of
fertilizer products increases, so does the value of rabbit manure. Demand determines the
price you may receive for manure. Home gardening has increased; more people are
working with ornamental in their yards than ever before; and organic farming is on the
increase. Fifteen does, two bucks, and their litters will produce approximately one ton of
manure a year. Rabbit manure is drier than poultry manure. Rabbit manure analysis
varies but is approximately 1.3% N, .9% P, 1.0% K. Use the same precautions as with
other manure when using it around plants or in seed beds. It can burn plants.‖ 12
Secondary Processing/Product Extensions
Research is currently being conducted into alternative uses of rabbit meat to create
prepared or ready-to-eat consumer products. Neil Howard, a graduate student at
Alabama A&M has experimented with and re-created several products using rabbit as
opposed to more traditional meat sources. 13 Mr. Howard reports that he has created
rabbit jerky, several types of sausage and a rabbit ―ham,‖ and has conducted taste tests,
the outcomes of which reportedly resulted in positive consumer acceptance.
The importance of this activity should not be under-estimated in the broader interest of
bringing customers to rabbit meat as an alternative to other meat or protein products. Just
as the major food companies continue offering ―sampling‖ in grocery stores on new
products or product extensions, creating interest in rabbit could be supported by the same
kinds of products Mr. Howard has developed.
Since it is likely that most consumers have not tried rabbit, and likely even fewer have
actually prepared it, introducing the product to the consumer through a product extension
that eliminates cooking or other preparation could help attain a level of consumer
satisfaction with the concept of eating rabbit in any form. Not only could the products
serve as replacements for existing foods (processed ham) or snacks (beef jerky v. rabbit
jerky) already accepted by the consumer, the products could provide an interesting set of
consumer messages about the inherent nutritional value of rabbit.
11
―Co mmercial Rabbit Production,‖ Mississippi State University Extension Service, 04/ 14/ 04 ,
http://msstate.edu/dept/poultry/pub1384.ht m.
12
Ibid
13
Neil Ho ward telephone interview with Winston Leavell, April 2004.
6
BARRIERS TO MARKET
Alabama rabbit producers, much like growers throughout the United States, face a
number of challenges as they prepare to grow their rabbit business line. None of these,
however, are insurmountable.
Competition14
In addition to the rabbit information and data (i.e., import and export figures) provided in
the previous section, the following table, Establishments with Rabbits, is taken directly
from the August 28, 2001 Viral Hemorrhagic Disease of Rabbits, Utah Impact Worksheet
and provides a state by state comparison of US rabbit farms, research facilities, breeders,
dealers, and exhibitors.
State Level Data
US Establishments with Rabbits
Farms with Rabbits Research Facilities1 Breeders2 Dealers2 Exhibitors2
Ste.
(1997) (1999) (1999) (1999) (1999)
No. No. No.
No. No. No. No. No. No.
rabbits No. rabbits dealer exhibit
farms rabbits facilities farms rabbits rabbits
used s ors
Ala 127 3,544 9 2,045 2 67 3 86 6 14
Ak 20 911 1 4
Ari 56 1,670 5 892 1 5 2 17
Ark 235 24,559 6 1,657 1 67 6 31
Cal 517 94,953 115 50,541 2 24,400 4 3,539 37 175
Col 328 4,444 11 1,479 1 26 3 43
Ct 61 4,866 9 2,882 2 18 14 65
Del 21 306 6 4,241 2 7 1 11
DC 8 1,290
Fla 266 17,038 9 1,491 3 756 5 712 8 91
Ga 120 3,571 13 12,191 1 70 8 56
Hi 27 158 1 59 3 18
14
Informat ion on competition fro m entrenched food alternatives such as beef, poultry, and seafood
alternatives, are discussed in the later section entitled, ―Changing Consumer Demands & Food Trends
Create Opportunities for Increased Rabbit Consumption.‖
7
Id 214 5,085 3 80 1 30 4 10
Ill 370 7,900 26 9,377 4 21 12 102
Ind 357 9,345 13 2,678 1 23 3 17 10 75
Ia 393 7,325 13 5,853 2 720 3 732 12 97
Ks 275 4,168 7 1,607 8 61 5 23
Ky 391 6,558 4 1,708 3 12
La 121 5,857 6 2,706 2 169 1 6 2 6
Me 97 3,400 3 182 4 38
Md 167 3,186 32 11,409 2 56 3 22
Ma 95 10,247 47 11,495 1 3,934 1 457 7 30
Mi 640 10,316 20 5,126 1 127 2 28 14 100
Mn 501 12,364 15 4,469 9 70
Ms 104 6,255 4 255 1 800 1 250
Mo 481 27,350 19 4,711 3 2,000 7 260 13 83
Mt 162 1,632 4 632 1 2
Ne 192 2,187 10 3,465 1 2
Nv 41 839 1 92 2 19 6 76
NH 79 1,072 4 369 3 13
NJ 181 3,237 30 23,038 1 680 3 2,194 4 16
NM 123 2,308 4 44 1 13 3 8
NY 523 24,467 53 7,014 3 493 6 148 27 274
NC 201 6,088 16 10,273 1 1,300 3 29 6 37
ND 99 981 3 6 300 3 60
Oh 728 14,091 29 20,023 4 59 8 137
Ok 382 9,861 9 446 2 155 4 46
Ore 480 26,201 8 680 1 5,500 4 9 4 13
Pen 605 27,075 43 37,027 2 26,080 6 1,935 22 101
PR 4 68
RI 26 300 5 335
8
SC 132 15,619 4 470 1 3
SD 110 3,517 4 223 1 10 7 51
Tn 420 26,598 10 1,692 1 2 2 5
Tex 1,134 45,762 43 18,279 4 1,860 12 427 32 217
Ut 135 5,219 8 620 3 48
Ver 65 2,571 2 127 1 545 1 369
Vir 242 5,305 10 4,333 1 8 4 19
Wa 335 10,241 11 3,099 1 2,000 1 1 2 11
Wv 169 3,750 3 134 1 150 2 4
Wis 687 14,855 11 4,505 1 496 2 32 19 150
Wy 85 1,037 2 26
Tot 13,320 530,189 735 277,444 36 71,975 101 12,283 351 2,486
1
The number of rabbits is the number that was used in research in 1999
2
The number of rabbits is the inventory at last inspection
Sources: Farms with rabbits (columns 2 and 3) from USDA, NASS, 1997 Census of
Agriculture;
All other data from USDA, APHIS, Animal Care
The information noted in the Alabama section ―No. of Farms‖ is generally consistent
with recent data supplied by Mr. J.C. Holt of the Tri-State Rabbit Growers Association
(TSRGA), who reports that there are approximately 90 grower-members of the group. 15
Holt also reported that as of April 15, 2004, his association had mailed a survey to
members requesting information on the number of does currently farmed by each
member. From that number, he believes he can extrapolate the potential capacity for
annual production. It should be noted, however, that not every current rabbit grower in
Alabama is a member of the TSRGA.
Glen Zorn, Deputy Commissioner of the Alabama Department of Agriculture and
Industries, reported that he had received information that there were several growers in
south Mobile County who were contemplating expanding their operations to achieve an
15
J.C. Holt, telephone report to Winston Leavell, April 15, 2004.
9
output of 3,000 to 4,000 rabbits per month. 16 Even if conducted by three separate but
somehow unified growers, these production levels could easily exceed the projected total
annual production currently in the Alabama grower market. Further, if the information
Mr. Zorn received is true, and this many rabbits in the Alabama and/or Gulf Coast
regional market do become available soon, growers located in central or northern
Alabama could face unexpected competition for markets. Therefore, it would appear only
reasonable to the authors of this market survey that outreach be made to these growers in
an effort to engage them in the collective interest of the overall project.
International Competition
International competition also has the potential to impact the future successes of Alabama
producers. Conversations with Beth Seely indicate a generally held belief that an
underpinning to increased demand in the US for domestically raised rabbit is an embargo
on Chinese rabbit. That belief is additionally supported by Bill Webster, a Nobleton, FL,
rabbit producer. According to Webster, ―‗About two years ago, the bottom fell out of our
industry,‘ said Webster. ‗The reason was the number of rabbits being imported from
China.‘ According to Webster, the imports from China have ceased and now there‘s a
shortage of rabbits, both for meat and for byproducts used in medical research.‖ 17
Despite exhaustive research on this embargo at a number of levels in state and federal
government, no documentation has been found. An APHIS ―Factsheet‖ tracked the
history and clinical signs of rabbit hemorrhagic disease but stopped short of imposing
restrictions on import of diseased carcasses. 18
In 1993 the US FDA issued an import alert, ―IA#17-01 Frozen Rabbit,‖ that required
sampling of imported frozen rabbit. According to the reason for the Alert, ―Imported
rabbit meat continues to be an FDA responsibility. Most of the rabbit meat imported
annually is received from Australia and the People‘s Republic of China. However,
importations have also been received from Poland, England, France, Argentina, Haiti and
the Midway Islands. During the past several years, there continues to be detentions of
rabbit meat due to Salmonella. In FY 92, 2 shipments of rabbit meat from Australia were
detained due to Salmonella. In addition, there are still concerns with decomposition,
pesticide residues and filth.‖19 According to the alert, all countries‘, all shippers‘ and all
manufacturers‘ frozen rabbit were to be sampled for salmonella, filth and/or
decomposition and pesticides. However, the Alert did not limit or prevent importation.
There is some uncertainty from anecdotal reports as to whether the alleged Chinese rabbit
importation was suspended due to lack of safety inspection following the events of
16
Glen Zorn, telephone report to Winston Leavell as result of a conversation with a feed and seed supplier
in Grand Bay, AL, April 20, 2004.
17
―More Rabbit Producers Needed to Meet Demand.‖ Florida Farm Bureau FloridAgriculture, April 2004
issue.
18
―Factsheet,‖ Animal and Plant Health Inspection Service, Veterinary Services, USDA, January 2002.
19
―IA#17-01 Fro zen Rabbit,‖ US Federal Drug Administration, Surveillance Alert, March 3, 1993.
10
September 11, 2001, or suspended on account of disease or unsafe levels of unapproved
drugs.
In January 2002 the European Union Food Standards Agency issued a notice suspending
imports of ―all products of animal origin from China.‖ According to the notice, ―This
[action] follows a European Commission (EC) inspection that identified a lack of controls
on the use of veterinary drugs and other products in animals and animal products which
could lead to residues and contaminants presenting a risk to public health.‖20 The release
also noted that ―48 tonnes (2001 data) of rabbit meat were imported from China.‖ There
is no evidence that this ban has been lifted.
Investigation continues on the subject of a US import ban of rabbits from China and
findings will be reported. It should be noted, however, that S.A.K.S. Foods, an on- line
rabbit meat seller, reported it gets 90% of its rabbit from China (see On- line/Remote
Orders section later in this report.)
(See Appendix B for information on various state activities related to rabbit meat
production and consumption)
20
―EU Suspends Import of Animal Products fro m China.‖ European Union, Food Standards Agency news
release, January 31, 2002.
11
Processing Facilities
There were four federally inspected slaughter facilities in the US that slaughtered rabbits
in fiscal 2001. They are located in: Arkansas, Oregon, Maryland, and North Carolina.
Slaughter of rabbits also takes place at other, non- federally inspected facilities. As can be
seen in the following table (taken from the August 28, 2001 Utah Impact Worksheet), the
plant in Arkansas slaughtered by far the greatest numbers of rabbits. These four plants
together accounted for less than 0.04 percent of the work production of rabbit meat.
US Rabbit Slaughter by State
STATE NUMBER SLAUGHTERED
FY 2001 FY 2000
Through June 2001
Arkansas 201,803 385,435
Oregon 44,136
Maryland 502
North Carolina 288
TOTAL 246,729 385,435
Source: USDA, FSIS
Not included in this data is the processing facility in Ocala, FL, operated by Ms. Beth
Seely, who reports that she, too, operates a USDA- inspected facility. 21
Of more interest to Alabama producers is the immediate availability and access to
processing facilities in general proximity of the state as a whole. At present there are no
active processing facilities in Alabama dedicated solely or in great part to rabb it
processing. However, there is a facility located in Gordo, AL, that apparently processed
rabbits in the past. That facility is not actively engaged in processing rabbits being
collected by the TSRGA in fulfillment of the contract jointly underway with Carnival
Cruise Lines. 22
It is generally known among those knowledgeable about the rabbit project in Alabama
that the two most important processing facilities for Alabama growers are Rabbit Man
Farms (RMF), near Hattiesburg, Mississippi, and Seely‘s Ark (SA) in Ocala, Florida. It
is through the cooperation of those facilities and their relationship with TSRGA that the
Carnival Cruise Line contract is currently being fulfilled.
The Miami-based Carnival Cruise Line contract is for one year with expected delivery of
15,000 rabbits during the contract (approximately October ‘03 to September ‘04). 23
21
Beth Seely, telephone interview with Winston Leavell, April 14, 2004.
22
J.C. Holt, Tri-State Rabbit Gro wers Association, telephone interview with Winston Leavell, April 15,
2004.
23
―Rabbit Industry Promoted Through Alabama A+ Program,‖ Alabama Farmers‘ And Consumers‘
Bulletin, Nov. 1, 2003.
12
Carnival has also announced plans to begin cruises from Mobile Bay and some level of
conversations has been held to expand the contract to cover these cruises, as well.
As referenced and footnoted above, telephone interviews were conducted with Katrina
Forbes and Beth Seely on April 6, 2004 and April 14, 2004, respectively. The following
narrative reflects some of the key discussion points raised in those inter views.
RMF has both the capacity to process and the demand for 3,000 rabbits per week.
Current availability runs in the area of 1,000 to 2,000 per week, discounting the number
being supplied by TSRGA in fulfillment of the Carnival contract. While RMF has no
trouble selling its output, a consistent and dependable supply from producers has
prevented it from expanding into the large grocery store market business, which demands
reliability. Average orders from grocery chains might be in the 100 cases per order
(1,200 rabbits) range. (By comparison, 100 cases is the approximate monthly
requirement for the Carnival contract, and that amount is sometimes in excess of current
TSRGA supply.) Further, distributors represent the larger grocery chains, and those
distributors demand a consistent and timely supply before they will approach their
grocery clients.
RMF currently sells approximately 300 rabbits per week to restaurants, including into the
New Orleans and Baton Rouge markets. It has some clients as far away as Texas and
New York, with occasional requests from the far western states. Inland Seafoods, a
specialty wholesale house in Atlanta, GA, also purchases rabbits from RMF, some of
which find their way to the upscale Highlands Bar and Grill restaurant in Birmingham,
AL. Consistency in size (approx. 3 lbs.) is the primary demand from restaurateurs, and
some of those require some value-added services of de-boning or quartering. Much of
RMF‘s delivery to restaurants is fresh, particularly for those with in- house butchers.
As to the issue of marketing, RMF reports that demand consistently exceeds supply and
that it regularly turns down orders. RMF further underscores that problem of supply v.
demand in that it is reluctant to engage in additional marketing. RMF‘s Forbes said that
if one conducts marketing and cannot meet the demand created, buyers will quit coming
back.
Before shifting to SA, it is important to note that both processors are consistent on the
point that the marketing responsibility has generally fallen to the processor. And while
both processors have demonstrated success (since even their limited marketing activity
creates a demand beyond their supply), Alabama producers should keep in mind that
there are marketing costs associated with delivering their rabbit to the ultimate consumer,
some of which may be reflected in the amount processors pay to producers.
SA reports that if it could double its output it would still have trouble meeting demand,
and suggested that it could probably use as many as 2,000 per week more than is
currently available. SA‘s inability to obtain more locally produced rabbits – along with
personal relationships developed with TSRGA – led it to brokering the Carnival contract
13
with TSRGA. The physical distance between SA and the majority of TSRGA growers
then led to the utilization of RMF for processing.
SA‘s Seely noted that there are four main ―obstacles‖ to success in the commercial rabbit
business, some of which cross several issue areas addressed by this survey.
1. Get all the growers and processors in the region on the ―same page‖ with
regulations (i.e., USDA v. State Regulations).
2. Insure there is an ample supply of rabbit that serves as the basis for marketing.
3. Regionalize the market quickly by tying producers and processors together,
sharing information, tracking trends, consistent brood stock, feeding regimens,
etc.
4. Branding, e.g. getting an agreement from producers and processors that all can
support a ―name‖ or ―brand‖ for the collective output so small buyers and volume
purchasers will come to recognize the brand name – and be less concerned
whether it came from a Florida or Mississippi (or even Alabama) processor.
According to Mr. Holt, there is a processor located in southwest Tennessee with whom
there have been unprofitable relationships. Other processors in Florida are farther south
than Ocala and would impose significant transportation costs on Alabama producers.
After several layers of contact in Georgia, another processor was identified in Adel, GA,
a town located in between Tifton and Valdosta. According to the owner, Mr. Carroll
Bullard, Abel is approximately 125 miles east of Dothan. 24 Bullard Rabbit (BR), the
processing facility company name, was founded several years ago. Among its clients is
Harvey‘s Supermarket, a chain of small grocery stores in southern Georgia, and Piggly
Wiggly Alabama Distributing Co., Inc. According to Mr. W.F. Taylor, Meat Manager at
Harvey‘s, BR supplies 50 cases (six per case/15 lb. case) every two weeks. 25 ―They‘re
catching on, but sales were pretty slow at first,‖ said Taylor in a news report. 26
BR reports that from September to May it cannot meet market demands, and could use
400 to 500 rabbits a week extra. BR maintains in excess of 600 does to supply its
operations and finds limited access to other producers in its area. It ships between 600
and 1,000 rabbits per month to brokers in California and New York. Not unlike the
previous processors comments on marketing, BR is reluctant to pursue additional markets
due to the instability of supply. There are only a limited number of other producers in the
area of BR‘s facility. With the exception of sales to Harvey‘s, most of BR‘s rabbit is
frozen. BR is currently paying producers $.90/lb, a number consistent with RMF and SA.
Finally, BR maintains a State of Georgia Department of Agriculture inspection
certificate, and has inspectors available when processing. This state- level certification
has not, according to BR, created any barriers to selling rabbit in any of its markets.
While it is clear that excess processing capacity and demand exists at the two primary
processing facilities that currently have a relationship with Alabama producers, and the
24
Carroll Bu llard, telephone interview with Winston Leavell, April 30, 2004.
25
WF Taylor, telephone interview with Winston Leavell, April 30, 2004.
26
―South Georg ia has first Rabbit Processing Plant,‖ WLAB TV, September 6, 2002.
14
third processor in Georgia, reaching the Ocala processor creates additional transportation
costs due to the distance from the bulk of current producers, and even for potential
producers in southeast Alabama. BR would be marginally closer for producers in the
Wiregrass area of Alabama. It is important to point out: Should RMF or SA find means
to fulfill their excess capacity with producers other than from Alabama, or should either
suffer a facility shutdown due to fire, labor shortage, acts of nature or other unplanned
events, Alabama producers would be put at risk of being unable to sell their stock on
hand. The southern Georgia processor is closer than Ocala, FL, but no relationship
currently exists with Alabama producers.
As has been noted earlier, a key to expanding the market for Alabama rabbit is consistent
supply. An interruption in the all- important producer-processor relationship could
seriously impact any ground gained, thus putting Alabama producers and their financial
investments at even more risk.
Finally, since there are limited alternatives to using either or both of the current
processors, or extending a relationship to the Georgia processor, further study of the
development of an in-state processing facility is warranted.
Prices Paid by Processors to Producers
The next three pages contain market data, including price per pound for fryers and roasters
as well as current supply and demand. The information was provided by Pat Lamar,
President of the Professional Rabbit Meat Association (PRMA) and represents a partial
listing of processors.
15
16
17
18
Seasonal Trends
According to those knowledgeable about the rabbit industry, rabbits are more plentiful in
the summertime than they are in the wintertime, when the demand is higher. This is a
particularly vexing problem not only for the growers, but also for the processors in
particular. Processors require consistent year round producers to offset a demand that is
currently out-distancing supply.
According to RMF, the processor put up nearly 500 cases (@12/case) over the course of
the Fall of ‘03 in an effort to provide a steady supply during the winter months. 27 The
excess quantity was sold out by January. Thus it appears that the cyclical and seasonal
juxtaposition of rapid growth rates in the summer v. higher demand in winter months could
potentially create a difficult hurdle for producers and processors when attempting to meet
expanded market demand.
Regulation
The USDA does not recognize rabbit meat as an ―agricultural livestock,‖ that is, intended
for human consumption. According to PRMA‘s Pat Lamar 28 :
―Animals that are officially recognized as ‗livestock‘ are illegal to keep within city limits,
which would severely and negatively affect pet rabbit owners and many show breeders.
The last effort to have rabbits accepted by the USDA as a livestock animal failed in 1972
due to a lack of support. This unique limbo status of the rabbit has resulted in problems in
the way of rabbit processing plants, since USDA inspection of rabbit meat is merely a very
expensive option and without the government subsidization as provided for the processing
of beef, pork and poultry.‖
27
Katrina Forbes, telephone interview with Winston Leavell, April 6, 2004.
28
―The Rabbit Meat Industry,‖ by Pat Lamar, accessed from http://revolution.3-
cities.com/~fuzy farm/Meat-rab.ht m, March 2004.
19
Inspection29
Under the Federal Meat Inspection Act (FMIA), the US Department of Agriculture‘s
(USDA) Food Safety and Inspection Service (FSIS) inspect swine, cattle and calves,
equine, sheep, and goats. Under the Poultry Products Inspection Act (PPIA), the FSIS
inspects ―domesticated poultry which is defined as chickens, turkeys, ducks, geese,
guineas, ratites, and squab.
Congress has NOT mandated inspection of rabbits under either the FMIA or the PPIA;
therefore, inspection of rabbit is voluntary. Voluntary inspection of animals, including
buffalo, antelope, reindeer, elk, deer, migratory water fowl, game birds, and rabbit, is
handled under the Agricultural Marketing Act. Under voluntary inspection, each rabbit and
its internal organs are inspected for signs of disease.
The ―Inspected for Wholesomeness by USDA‖ mark of inspection ensures the rabbit is
wholesome and free from disease. When a rabbit processor does not produce rabbit meat
under FSIS voluntary inspection, they would be subject to the Food and Drug
Administration (FDA)inspection under the Federal Food, Drug and Cosmetic Act.
Some states, however, permit the sale of rabbit only if it is inspected under their laws.
The FDA has jurisdiction over the shipment of rabbit meat in interstate commerce.
(See Appendix C for information concerning Congressman Hilliard‘s April 27, 1999
legislation to exten inspection requirements of the FMIA to rabbits (HR 1574H) and
PRMA‘s Pat Lamar‘s related editorial)
Grading 30
Rabbit may be graded under the voluntary rabbit grading program performed by the
USDA‘s Agricultural Marketing Service. It provides a national grading service based on
official US classes, standards, and grades for poultry.
Rabbit may be graded only if it has been inspected and passed by the FSIS or inspected and
passed by any other inspection system that is acceptable to the USDA, such as state
inspection.
Consumer grades for rabbits are US Grade A, US Grade B, and US Grade C.
29
―Food Safety of Rabbit,‖ USDA Food Safety and Inspection Service (FSIS) Food Safety Focus, Slightly
Revised February 2003, accessed March 2004 fro m http://www.fsis.usda.gov/OA/pubs/focusrabbit.htm.
30
See footnote #11.
20
Transportation
A key factor in delivering any product to market is the cost of transportation. Whether it
is obvious in the contract between producer, supplier, processor, or the ultimate consumer
outlet, transportation costs are factored into pricing.
In the emerging meat rabbit business in Alabama, especially as reported by Mr. J.C. Holt,
transportation costs are a serious factor in maintaining profitability. In fact, by his
estimate, approximately 92 percent of the cost associated with getting a rabbit to the
proper weight for processing and to the actual processing facility is food and
transportation.
While economies may be enjoyed at some point in the future as more and more producers
enter the market, the cost of getting live rabbits to the processor in Mississippi, or even at
a much greater distance, to Florida, presents an issue for growers.
At present, the primary source of cost of transportation for TSRGA is getting the rabbits
collected and shipped to Rabbit Man Farms for processing to fulfill the Carnival contract.
The most efficient model used at present is akin to a hub-and-spoke design. When
TSRGA believes it has enough live rabbits worthy of shipment to RMF, the various
producers are encouraged to bring their livestock to one location for loading and
shipping. The producers are then assessed 10¢ per pound live weight on their rabbits to
pay the hauler‘s expenses. Holt reports that when the hauler delivers 300 rabbits he
breaks even on expenses. Achieving approximately 500 per delivery would allow some
profit for the hauler, and thus incentive to have him continue providing the service.
Without the continued participation of the hauler who currently works with TSRGA, the
success of the current delivery mechanism could be at risk, leaving existing producers
with little alternative. Irregular delivery to Mississippi could, therefore, put the current
successes with Carnival at risk.
Discussions are underway to provide the hauler additional mileage payments when he
drives to more than one collection point or ―hub‖ to complete a full load for the long
distance drive to the processing facility.
Processors, of course, also bear some responsibility for transportation costs. Part of the
price they pay producers ultimately reimburses the producers for getting the rabbits to the
facility. Further, the processor may have to absorb some transportation costs for delivery
of the dressed rabbit to their customer. Of note, of course, is that live rabbits need limited
protection from the elements in transport. Processed rabbit requires a truck or vehicle
equipped with proper cooling equipment for fresh deliveries, or freezers when the
processed meat has been frozen.
In most instances the cost of delivery of processed rabbit is borne by the purchaser,
whether restaurant, broker or the end user or consumer (especially when consumers place
direct orders with the processor).
21
Thus, transportation creates a serious risk for Alabama producers. Besides the cost to the
individual producer, there are few transportation options should there be a breakdown in
the existing relationship between TSRGA and its hauler. Some portion of the potential
risk in maintaining a dependable transportation platform is the next step in the
producer/processor relationship – that being the distance to Hattiesburg from the core of
TSRGA members. Since there is no current processing facility closer to the producers,
thus leaving them with little alternative than to go to RMF for the bulk of processing,
there is an elevated risk of project failure.
See Appendix D for Alabama specific USDA rabbit information and data.
22
CHANGING CONSUMER DEMANDS & FOOD TRENDS
CREATE OPPORTUNITIES FOR INCREASED RABBIT CONSUMPTION
A number of significant trends are occurring on several fronts, all of which could have a
profound effect on the production and consumption of rabbit meat in the United States.
Public Health Conce rns
Food Scares
A January 13, 2004 Wall Street Journal Online—Harris Interactive Health Care Poll
found that one- fifth (21 percent) of US adults say the fear of Mad Cow Disease will
affect what and where they eat. Further, most (78 percent) of these people said they
would eat less beef while 16 percent of them indicated that they would stop eating beef
altogether.
In addition to concerns over BSE (bovine spongiform encephalopathy), Americans are
concerned about high concentrations of mercury in both salmon and tuna, as well as the
avian flu that is contaminating poultry.
Obesity Epidemic
Much has been documented and published about the growing health concerns related to
burgeoning obesity rates in the US. The health related consequences are of course
significant, leading to increased rates of diabetes, heart disease, depression, and
disability. The financial consequences are staggering as well.
In order to combat this troublesome trend, the USDA, the US Department of Health and
Human Services, medical professionals and others are calling for (among other things) an
overhaul of how Americans eat and what they eat. Even the Food Guide Pyramid is
being revamped. All of the federal dietary guidelines, intended to help consumers choose
diets that improve health, reduce their risk for diet-related chronic disease, and meet their
nutritional need, stress the importance of limited saturated fat and cholesterol.
Cardiovascular Disease and High Cholesterol
The incidence of cardiovascular disease is increasing, to the point that, according to the
Centers for Disease Control and Prevention, heart disease and stroke a re at epidemic
proportions. This year, according to the American Heart Association, 650,000 people
will have a heart attack. Some 700,000 people will suffer a new stroke—or have a
recurrent one. Some 450,000 persons will experience sudden cardiac death—only 20-30
percent will survive.
Again, diet has a direct impact and is a major factor in contributing to cardiovascular
disease.
23
Changing Consume r Demands
Personal eating habits are typically influenced by age, health status, cultural background
and family food attitudes and balanced by habits, taste preferences, economic and time
constraints.
According to the USDA‘s Economic Research Service, food expenditures will increase
26 percent over the next 20 years. In 2000, consumer expenditures on domestic food
(excluding seafood) consumed at home and away from home totaled $661 billion. The
value farmers contributed to food expenditures by providing primary agricultural
commodities accounted for $123 billion, or about 19 percent of the total value. The
remaining 81 percent reflected the value added as labor, advertising, processing,
transportation, packaging, and other marketing costs are incurred transforming farm
commodities into food products and meals.
In response to shifts in consumer demand, different sectors of the food system are
competing to identify and provide more processed and value-added products.
Americans desire convenience—the retail food industry is now responding to the
new challenges by offering consumers a variety of processed, ready-to-cook
(heat-and-eat) and ready-to-eat foods.
Reflecting the industry trend toward more processed products, retailers are
offering many food products in a variety of sizes and convenient packages. This
trend appears to be driven by two specific demographic factors: the decreasing
average household size and an aging population, both of which require smaller
and re-sealable packaging. The demand for convenience and quality are likewise
influencing the trend toward more branded, pre-cut and individually wrapped
(case-ready) cuts of meat in the meat case.
According to research conducted for the Grocery Manufacturers of America, nine
in ten shoppers say that taste is a very important factor in deciding which foods to
by with nutrition ranking a close second.
Growth in the natural foods industry and organic markets is compelling. The
Natural Marketing Institute reports that the organic market is flourishing—with
sales reaching $7.8 billion in 2000, a 20 percent increase over sales of $6.5 billion
in 1999. Because organic products in general are still considered expensive, they
are more likely to be offered at restaurants with higher check averages.
There is a documented increased demand (further enhanced by the public health
concerns listed in the previous page) for healthy, nutritious food. But data show
that taste considerations outweigh health benefits. Also worth noting is the fact
that nutrition conscious gourmet customers are demanding choices.
24
Frustrated food-savvy consumers are demanding that ―everyday‖ food should be a
little more ―gourmet,‖ creating a wave of mildly upscale casual culinary concepts
that are destined to be more indulgent, flavorful, and festive. Referred to as
―Casual Indulgence,‖ this is among the top food trends in America listed in Food
Technology magazine.
Food Technology also reported that ethnic foods have become an increasingly
popular food trend, with Cajun food topping the list. In addition to the culinary
melting pot, Americans also favor nouveau one-dish meals.
Restaurant Trends
The following are the top 2004 trends as reported by the National Restaurant
Association‘s 2004 Restaurant Industry Forecast:
Continued Expansion. Driven by consumers‘ need for convenience and
socialization, as well as continued gains in real disposable personal income.
Restaurant industry sales will reach a record high in 2004 of $440.1 billion.
Heightened Interest in Health and Nutrition. America‘s palate is becoming more
sophisticated. With heightened interest in health and nutrition, look for a host of
new menu items and offerings designed with these needs in mind.
Intensified Government Impact. From proposals to mandated nutrition labels on
menus to efforts to tax restaurant meals, federal, state, and local legislation and
regulation will continue to have a major impact on restaurants.
Diversity Embraced. A more diverse patron base and an expanding industry
workforce will drive enhancements in restaurant menus and staffing.
Trends in US Agriculture
Over the past 100 years, the US agricultural sector has become one of the most
productive in the world, and citizens have become accustomed to a safe and relatively
inexpensive food supply.
The USDA‘s National Agricultural Statistics Service noted that several revolutionary
changes are in store for agriculture in the near future: Continued specialization and
growth in the areas of sustainable agriculture, organic farming, niche farming, and direct
marketing.
All of these concerns, trends, and demands, when analyzed collective ly, provide the
foundation upon which to build an active education and marketing campaign
emphasizing the exceptional taste, superior health benefits and outstanding nutritional
value of rabbit—the other meat to eat.
25
IDENTIFYING MARKETING CHANNELS AND OPPORTUNITIES
FOR
ALABAMA RABBIT MEAT PRODUCERS
Supermarkets/Brokers/Food Cooperatives
Following the initial research conducted as the foundation for this survey, including a
review of the literature and numerous, in-depth conversations with a variety of people
connected with raising, processing and selling rabbits, it is clear to the report authors
that the primary movers of rabbit meat through the system and to the ultimate
consumer or restaurant are supermarket chains and food cooperatives, and food
brokers or specialty purveyors. Therefore, both in recognition of time and expense,
the scope of inquiry was necessarily reduced to eliminate direct inquiry with
restaurants except on a limited basis.
The reason for that is quite simple. Restaurateurs (with extremely limited exception)
do not buy directly from growers/producers – whether beef, fish, poultry or rabbit.
Instead, they depend on trusted relationships with brokers or specialty purveyors to
find and deliver what the chefs need. Therefore, the investigation concentrated on
those levels between the producer and the restaurant or ultimate consumer, i.e., the
processors and their clients.
The following write-ups from those conversations reflect a broad array of reactions to
the central question: Is there demand for meat rabbit that is not being met, or if
demand is limited can it be enhanced? Further, in respect to the second half of that
question, what mechanisms exist in each part – supermarket/cooperative, broker or
purveyor – to encourage demand and thus consumption and, ultimately, greater
prospect that increased grower interest and output will find a ready market?
Additionally, the Executive Director of the Alabama Grocers Association, Jim
Smotherman, was contacted regarding the project. He acknowledged some level of
awareness of the rabbit project and agreed to email a request to his entire membership
asking for their individual responses about demand, current sales, etc. However at
this date there has been no response. Should information become available it will be
forwarded to AALGA as an addendum to this report.
Matamoros – Atlanta: No longer in business. 31
Service Marketing Inc. – Atlanta: Brokers do not handle rabbit. 32
Trans Continental Meats, Inc. – Atlanta: Have not handled rabbit for years,
currently only provides ground beef. 33
31
Call placed April 9, 2004.
32
Telephone interview with Winston Leavell, April 9, 2004.
33
Telephone interview with Winston Leavell, April 9, 2004.
26
Inland Seafood – Atlanta: This contact was developed after information provided by
Frank Stitt, owner, Highlands Bar & Grill, Birmingham, informed that this broker
was the source of his restaurant‘s rabbit. As noted earlier, Inland actually buys most
of its rabbit from Rabbit Man Farms, in Hattiesburg, MS. Robert Pigeon, of Inland,
said he purchased about 300 to 400 pounds per week of rabbit, though sometimes his
clients requested rabbit imported from F rance. He regularly runs trucks from Atlanta
to Birmingham and several other Alabama cities, some carrying rabbit for delivery.
Interestingly, Pigeon said he does not get as much request from Atlanta as he does
from Birmingham, Huntsville and Nashville. He was pleased to know about the
potential expansion of Alabama growers and said he would be happy to ―buy
Alabama rabbit,‖ particularly if Stitt thought it was a good product. He said the
biggest problem he faced was consistent size, dependable source and that most of his
restaurant customers wanted fresh, not frozen. 34
SYSCO Food Services of Central Alabama – Calera: SYSCO provided rabbit to
Trenholm Culinary Institute‘s ―Seven Course Night,‖ a fundraising event for the
culinary department, in March of this year. According to Amy Rankin, of SYSCO‘s
specialty meats procurement department, Trenholm‘s rabbits were purchased through
New West Foods, in Colorado. She buys specialty items including rattlesnake, elk,
buffalo, etc., from this company but not on a regular basis. Rankin said these items
are usually only for special occasions, such as Trenholm‘s dinner, and that SYSCO
does not regularly stock these foods, including rabbit. She believes it will take some
additional marketing to interest consumers so they request it from restaurants and
grocery stores. She was interested in knowing more or having more information
about Alabama sources of rabbit. She offered that she, on behalf of SYSCO, would
be interested in attending any kind of meeting of brokers or distributors to help learn
more about rabbit and serving as a kind of sounding board for marketing ideas. 35
Piggly Wiggly Alabama Distributing Co. Inc. – Bessemer: This outlet works much
as a cooperative, buying food for and servicing 320 stores acro ss Alabama and some
surrounding states. According to Mr. John Burns, the head of the meat buying
division, he buys rabbits from Bullard Rabbit, in Adel, GA. At present he is buying
about 50 cases a month from Bullard, though he did not provide detail as to whether
those were six or 12 to the case. (Note that Harvey‘s gets six/case from Bullard.) He
requires the rabbit he buys to be pre-cut into quarters or halves for distribution. Not
unlike others, he said the supply needs to be better. Burns said he does not produce
special advertising or signage for rabbit that he sells to cooperative members, but
believes that could help educate consumers and encourage purchasing. He said he
thought consumers would react positively to messages about it being all white meat
and that health-conscious consumers would react well to the high protein/low fat,
carbohydrate values. He was open to receiving additional information about the
overall project. (The authors would advise caution on additional contact here since
34
Telephone interview with Winston Leavell, April 9, 2004.
35
Telephone interview with Winston Leavell, May 6, 2004.
27
TRSGA is developing a positive contact directly with Carroll Bullard, and Bullard
could see this as infringing on his existing client base.) 36
Associated Grocers of the South, Inc. – Birmingham: The assistant meat buyer
Mike __ said Associated has tried rabbit, that there was not a lot of interest and that
they had dropped it. However, Associated, which is a grocery cooperative that works
with hundreds of grocery stores across Alabama and surrounding areas, was working
with a good processor at the time and they were generally satisfied until consistent
quality and supply became a problem. He could not remember the processor‘s name.
He said Associated‘s meat department would look at it again if they could be assured
of a steady supply and consistent quality. 37
TVG Broke rage – Fayetteville, ARK: This broker works with Wal Mart and Sam‘s
Club and provided some insight into how the company might consider rabbit. Bo
Hollingsworth, the broker, said Wal Mart and Sam‘s are generally reluctant to break
new ground with products, preferring to wait until there is some proven acceptance.
Further, since the cold meat and frozen sections are among the highest costs in the
store to maintain due to coolers and freezers, and the attendant utility costs, the
companies are only willing to stock items that have a high ―turn rate,‖ meaning the
product moves quickly and does not keep cash flow tied up. He said he believed that
the expense at retail of rabbit versus other meats could also be a major impediment.
At present he is unaware that either store stocks rabbit but that it could be attempted
on a regional basis. However, the stores will only be willing to stock it if other
grocers have it on their shelves. Therefore, if the day comes that Winn Dixie, Publix
or others begin to stock and sell rabbit, Wal Mart and Sam‘s will watch it, then once
convinced rabbit has a proven market, they will stock it for purely competitive
reasons. 38
Winn Dixie – Jacksonville, FL: Timmy Hinkle, meat buyer for the Jacksonville-
based company, said there had always been some demand but the price was too high
($7.00 to $8.00/lb) at retail for their customers and he could not find enough supply to
get the price down. He does not push it or regularly stock it at present. He said there
were still some suppliers of whom he was aware but he had not dealt with them for
some time. He expressed a willingness to do a test in some individual markets or
somewhat regionally if some of the individual store managers and meat departments
were willing to participate. He suggested that when there was a program for WD to
look at he would meet with processors and producers to determine quality, quantity
and pricing. Additionally, he said the kind and quality of packaging would be
important. 39
Retailer Owned Food Distributors of Alabama – Birmingham: ROFDA is a
national organization, based in Birmingham, whose membership includes 18 of the
36
Telephone interview with Winston Leavell, May 5, 2004.
37
Telephone interview with Winston Leavell, May 5, 2004.
38
Telephone interview with Winston Leavell, May 3, 2004.
39
Telephone interview with Winston Leavell, May 6, 2004.
28
largest cooperative and food distributors in the country. Among its members are two
who were interviewed for this survey, Associated Grocers of the South and Piggly
Wiggly Alabama Distributors. Ferrell Franklin, president and CEO, is originally
from Nebraska and very familiar with meat rabbit. He was interested in information
about the potential development of an expanded rabbit-growing program in Alabama
and requested that he be kept informed of progress. He was particularly interested in
any marketing information that might be developed, inferring that he might be able to
share it with membership. While it is unclear how this organization might be fully
leveraged, should a long-term program evolve the authors believe personal contact
with Franklin by AALGA and the Department of Agriculture & Industries could
prove a good use of time. 40
Publix Food Stores – Lakeland, FL: An attempt to make contact at the correct entry
point continues. However, of note is that Beth Seely, Seely‘s Ark, confirmed during
an earlier interview that she had obtained a contract with Publix (through a broker)
for 1,000 rabbits per month. 41 The contract period began sometime in April ‘04.
Seely reported that the broker‘s objective was to double the contract within a year.
Of additional note is that TSRGA provided approximately 1,600 lbs. of processed
rabbit to Seely in April, in excess of approximately 2,300 lbs. processed in fulfillment
of the Carnival contract. 42 All processing was done by Rabbit Man Farms.
Supermarkets of the Future
(provide potent marketing opportunities for rabbit growers)
**Consumers‘ (especially Baby Boomers‘) expectation that supermarkets know and
communicate how food should be used to improve life.
**Increased presence of:
foodaceuticals: food combined with drugs to enhance body & mind
nutraceuticals: healthy foods offering claims as cures or disease prevention
**Many trend forecasters report that stores must become ―trusted information
agents.‖ As a result, food packaging, point of purchase information and in-store
communications programs will become particularly critical.
**Building upon these trends, ―health‖ concept provides stores with a tremendous
opportunity—bring in dieticians and chefs to provide seminars and taste testings for
consumers ―hungry for information on healthy eating.‖
**Weekly supermarket circulars are giving way and evolving into computer d iscs,
CD-roms, and email alerts.
SOURCE: Windsor Market ing Group, 1998
40
Telephone interview with Winston Leavell, May 4, 2004.
41
Beth Seely, telephone interview with Winston Leavell, April 14, 2004.
42
JC Ho lt, telephone interview with Winston Leavell, April 2004
29
On-line/Remote Orders
In addition to targeting supermarkets and restaurants, a number of rabbit farmers have
been selling rabbit meat on line. Several of them are listed below.
Selling through Amazon.com
1) House of Prime--USA
Sells fresh rabbits
2) levillage.com
Sells fresh whole rabbits
3) Seattle‘s Finest Exotic Meats
Sells whole rabbits, rabbit loins, rabbit sausage
4) Ottomanelli.com presents: D‘Artagnan‘s The Wild Pack
Includes rabbit sausage with ginger, among other meats
5) Fossil Farms
Sells whole rabbit pre-portioned
6) PetFoodDirect.com
Sells Wysong Rabbit Au Jus 100% for Meat canine/feline diet
Non-Amazon.com Sellers
1) Rabbits Plus
Buys meat rabbits
2) Sir Loin Meat Shoppe
Sells rabbit, cut up, bone- in, skinless
3) Hills Foods, Ltd.
Sells rabbit
4) S.A.K.S. Foods
Sell rabbits (90% of which are brought in from China. Very low demand.)
(See Appendix E for more details, including prices and contact information.)
30
The Military
Despite the fact that in calendar year 2003, the armed forces purchased only $5,464.80
worth of frozen rabbit meat, there is worldwide potential in the military market.
Twenty years ago, when the demographics and eating habits of soldiers were different,
the military purchased and consumed a great deal more rabbit meat than it does today.
The average ages of today‘s soldiers range between 18-25 years and their diets are typical
of that age group. For example, the military spent only about $3 million on roast and
ground coffee last year for all the services combined. That is because most of the
soldiers prefer soda or Gatorade type beverages for breakfast instead of coffee.
Nevertheless, the military represents an enormous market that includes not only the
active duty service men and women, but their families (through the commissaries) as
well. In addition, military installations also feed students, medical facility personnel, and
prisoners and staff.
Selling to the Military
The military now uses a Prime Vendor system for purchasing products including foods.
Rather than have the military manage multiple smaller contracts, a prime vendor is
responsible for supplying its customers (i.e., specific military bases) with a la rge range of
various food lines. Items such as fresh milk and fresh baked goods are often contracted
for separately.
In Alabama (and the panhandle of Florida), US Food Service (previously PYA
Monarch/Montgomery) holds the prime vendor contract for food service for the military
(See Appendix F for the terms of the 5-year contract). The contract was awarded on
January 29, 1999 and is valued at $45.5 million ($11 million base year with four one-year
options. This contract, which is in its 5 th year now, is out for re-solicitation and US Food
Service will find out whether or not they are renewed in September or October 2004).
US Food Service is responsible for 10 customers under their current contract:
1. Maxwell AFB
2. Fort Rucker
3. Pensacola NAS
4. Whiting Field NAS
5. Tyndall AFB, FL
6. Eglin AFB, FL
7. Redstone Arsenal
8. Hurlburt Field
9. Panama City
10. Gunter AFB
(Each of these installations, contain several facilities and can be found in Appendix F).
31
According to US Food Service personnel, the demand for rabbit has been quite low.
Typically, it is requested as a special meal, for example at holiday times. When it has
been requested, US Food Service has the customer order directly from Food
Innovations, an online service that is wholly owned by chefs. The customer orders
online, the frozen rabbit is delivered via Federal Express in the next day or two, and US
Food Service is billed.
Alabama has two options to break into this distribution network.
(1) Contact the bases directly and market and educate the chefs and food purchasers.
This will involve ―cold‖ calling since contact names were removed from the
websites since September 11th . Providing personnel at the base with recipes,
training sessions, tasty dishes, and information on rabbit meat can be a very
effective means of stimulating demand. If the customer asks for it, the prime
vendor must supply it.
Contact: US Food Service—Sheila Smith 334.286.5271 and
Terry Morris 334.288.3111 x257 (meat buyer)
Communicating with the following Food Service Chiefs of the Military Services
could help when marketing products to customers at individual post, camps, and
stations:
Army: 804.734.4862 (Dave Staples)
Air Force: 210.652.7049/2619 (George Miller)
Marines: 703.695.7396
Navy: 717.605.5187 (Commander Hansen)
(2) Become a supplier to Food Innovations. Food Innovations is a distributor located
in Costa Mesa, California, and Naples, Florida, that currently relies on a farm in
New York that processes and ships the majority of the rabbits (which are fed an
organic diet of juniper berries, apples and sage) which are then sold to premium
chefs, high-powered white table restaurants, and a handful of other purchasers,
such as the military. Food Innovations also has a relationship with two other
sources of rabbit, both of which are in California.
According to Chef Z Ziakas, Food Innovations‘ COO (Z is really his first name),
there is a high demand for high quality rabbit meat. He would be interested in
talking with folks from Alabama. The meat would have to be processed and
shipped.
Contact: Food Innovations—Z Ziakas 888.352.3663.
32
Selling to the Commissaries (Military Retail Supermarkets)
DoD Commissary stores are virtually identical in operation to any major supermarket
food chain in the US. These stores provide food for soldiers and their families.
Contact: The Defense Commissary Agency (DeCA) web link is www.commissaries.com
and the point of contact to market food products is Mr. Angel Ramos 804.734.8221.
The commissary buyer for frozen food (including rabbit) is LaRou Smith 804.734.8226.
His email address is larue.smith@deca.mil.
According to LaRou Smith, there is currently very little demand for rabbit meat
throughout the commissary network. Whatever rabbit meat is sold is typically regional,
and sold mostly in the deep south. If Alabama is interested in pursuing this market, the
rabbit meat has to have retail brand name distribution.
Armed Forces Recipe Service (AFRS)
Previously The Quartermaster Institute in Chicago, AFRS is located at the US Army
Soldier Systems Center in Natick, Massachusetts. Among its mission is to research,
develop and field food and food items to the entire DoD, including recipe development,
research, creation, and testing. Food technologists are always on the look-out for
healthful food choices.
Getting in front of these folks, with recipes and experts on rabbit meat could serve as
another important conduit into the military appetite.
33
GETTING THE WORD OUT
Working with USDA
Federal-State USDA Marketing Grants
The Federal-State Marketing Improvement Program of the USDA‘s Agricultural
Marketing Service has the potential to provide an important source of matching funds (up
to $90,000 over 2 years) on a marketing project related to rabbit meat consumption and
production in Alabama.
Although George Paris and Harold McLemore already receive funding from this
initiative for Alabama‘s goat meat program, this is not a barrier to receiving additional
funds for rabbit meat analyses and marketing.
The next opportunity to apply for these monies will be when the RFP goes out this Fall
2004. The information will be sent to all state agriculture departments, but it would be
prudent to call in October 2004:
Janise A. Zygmont
Staff Officer
Federal-State Marketing Improvement Program (FSMIP)
USDA
202.720.2704 phone
Janise.zygmont@usda.gov
Push for NASS Rabbit Slaughter Survey
In addition to applying for the grant monies, Alabama should consider working with a
broad coalition from the meat rabbit industry to push for and demand an Industry Survey
on Rabbit Slaughter and Consumption by the National Agricultural Statistics Service
(NASS) of the USDA to conduct and publish a livestock slaughter sector-specific survey.
These data will then form an ongoing foundation of key data that will be useful in a
variety of analyses, including business projections and marketing strategies.
Food Confe rences and Shows
Upcoming conferences and food shows provide excellent oppo rtunities for Alabama to
both learn about and educate others on the state of rabbit farming.
Important meetings to be aware of include:
34
The 8th World Rabbit Congress
September 7-10, 2004
Convention Center, Puebla City, Mexico
Contact: wrc8@colpos.mx
Phone: + (52) (55) 58 04 59 76
(See Appendix G for specific programming information.)
Although the following military/commissary food-related conference is not open
to the public (it is by invitation only to current prime vendors), it would be
worthwhile for ALGA and/or the Alabama Department of Agriculture and
Industries to establish a relationship with US Food Service, the current prime
vendor in Alabama, so that the meat rabbit messages (and recipes, nutritional
information, etc.) could be carried and distributed by US Food Service personnel
attending the following conference:
2004 Subsistence Worldwide Customer Conference & Food Show (DSCP)
July 20-21, 2004 (A military conference)
San Antonio Convention Center, San Antonio Texas
Contact: 215.737.5300 (conference hotline) Ask for Fred Radke.
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Education and Marketing Campaigns: Making the Case for Rabbit
Any marketing/education campaign, which would involve a multi- faceted approach,
including taste-testings, recipe development, and testimonials, would emphasize the
follow facts:
Rabbit Meat is Healthy and Nutritious
Nutritional Value of Rabbit and Othe r Meats
Edible Portion Protein (%) Fat (%) Calories/lbs Cholesterol
of Meat mg/oz
Rabbit 20.8 4.5 795 55
Chicken 20.0 17.9 810 80
Turkey 20.1 20.0 1,190 65
Lamb 15.7 27.7 1,420 78
Beef 16.3 28.0 1,440 73
Pork 11.9 45.0 2,050 72
Source: USDA handbook #8 and Circular #549.
Rabbit meat is all white meat.
Rabbits are raised up off the ground and therefore its meat is among the cleanest.
Rabbits can be hormone free and fed organic feed.
As the worlds’ human population grows, there will be less land to raise food. The rabbit
is predicted to play a more increasing role in the global food supply.
As part of a Masters‘ Thesis project, Andrea Alejandra Vidal conducted a market
research project entitled, ―Small-Farm Rabbit Meat Production and Consumer Demands
in South Texas,‖ in December 2000. Funded in part by the USDA‘s Agricultural
Marketing Service, Federal-State Marketing Improvement Program, Ms. Vidal‘s research
confirmed that a marketing/educational initiative would increase consumer demand for
rabbit meat consumption.
Consider two relevant findings 43 :
RESEARCH HYPOTHESIS: There is a difference between participants that like rabbit
meat versus aware of rabbit nutrition.
Using chi square analysis, the researcher compared (Does your family like rabbit meat?)
versus (Are you aware of rabbit meat nutrition?) and found that ―There was a significant
43
Study Methodology: The rabbit meat production and consumption in South Texas was a two -year study.
The ma il tool used was a demand and supply questionnaire using a current telephone book. After pilot
testing, a total of 1730 demand surveys were sent out and a total of 245 (14.16%) people responded.
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difference between participants that like rabbit meat versus aware of rabbit
nutrition…accept the research hypothesis that there is a difference.‖
RESEARCH HYPOTHESIS: There is a difference between aware of rabbit meat
nutrition versus how frequently participants eat rabbit meat.
Again, using chi square analysis, the researcher compared (Are you aware of the rabbit
meat nutrition?) versus (How frequently does your family consume rabbit?) and found
that ―Sixty percent of consumers who are aware of rabbit meat nutrition eat rabbit at least
once a month and sometimes twice a month whereas only seventeen percent of people
who are not aware of rabbit nutrition ate it that often. Eighty three percent of consumers
who were unaware of rabbit meat‘s high nutritional value never ate it….accept the
research hypothesis that there was a significant difference.‖
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CONCLUSION
The results of this survey point clearly to several key findings:
1. There is some unmet demand for meat rabbit, primarily at the processor level.
2. Under current operating conditions, producers/growers are somewhat at the mercy
of the processor – though relationships appear to be good.
3. Despite what appear to be successful partnerships with the two key processors
with which TSRGA now works, Rabbit Man Farms and Seely‘s Ark, the
suspension of those relationships or business failure by either would put the future
success of Alabama producers at serious risk.
4. The Achilles heel of the entire producer-to-processor relationship is the tenuous,
at best, transportation system currently employed by TRSGA.
5. Expanding demand beyond the deficit of supply noted by the processors will
require an active, long-term marketing plan.
6. Obtaining the confidence of and shelf space in grocery outlets – and thus access to
the largest potential market for rabbit – will require a unified plan of action
resulting in consistent quality, supply and competitive pricing.
7. As a market unto itself, military purchasing presents a huge potential, though
breaking into this market will require specific education, direct contact at several
points of entry, and a firm demonstration of consistent supply.
Prior to diving headlong into this survey project, the authors were somewhat circumspect
as to the true nature of the meat rabbit market, and to the likelihood of any notable, long-
term success for expanding the market. Our conclusions direct us otherwise, with a few
caveats.
While conducting a review of the literature and the alternative sources of rabbit, we
found a wide array of information. In short, if a consumer or restaurateur wants rabbit, it
can be found with limited diligence and a connection to the Internet. (The Internet
represents an untapped potential for Alabama meat rabbit producers.) Finding rabbit at
the meat counter of grocery stores proved to be difficult as demonstrated in that part of
the survey above.
As to the personal level of commitment of those individuals most closely involved in the
overall program to date – the TSRGA, Rabbit Man Farms, Seely‘s Ark, the AL
Department of Agriculture & Industries – it would be hard to find a more willing and
cooperative group. That cooperative spirit, perhaps as much as anything, could allow for
a unified plan of action.
While information about rabbit growing is generally available, much is dated. As the
authors are not versed in the actual hands-on activity of commercial rabbit production, we
cannot adequately critique the true value of that information. Further, it appears that
having a single point of contact for information – a kind of Alabama Rabbit Help Line,
for lack of a better descriptive – will be needed to complement all the various activities of
TSRGA, the individual producers, and potentially even processors. Information available
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could include questions of veterinary health, disease control, general rabbitry safety, food
regimens, supplies, breeding performance, etc. Should AALGA pursue an even more
active role in the encouragement of increasing the Alabama rabbit producer base, this
Help Line might best be maintained on a rotating basis by AALGA member universities.
As noted in the report, since USDA oversight of rabbit processing is not mandatory, there
is a dearth of current information on commercial rabbit production, export, farming, etc.,
of a nature kept on most other types of major agricultural production. Accurate tracking
of data, if only on a statewide basis, could prove useful. AALGA seems the most logical
point for collection of this data, perhaps in conjunction with AL Department of
Agriculture & Industries. Investigation of grants to support this purpose might be a
worthy pursuit, and could serve as a model for other states.
As noted in the key findings above, the two most critical components of continued
success in producer expansion are: 1) Stability in the producer/processor relationships
and, 2) Transportation.
First, since the two primary processors (RMF and SA) have indicated that they have
excess processing capacity and cannot meet their current demand, there is plenty of room
for additional producers. In total, excess processing capacity is conservatively in the
6,000 to 8,000 rabbits per month range. However, these processors are not likely to
simply accept additional rabbits to fulfill excess capacity unless they know the supply
will be dependable, consistent and of good quality, and that they can comfortably reclaim
contracts they previously turned down.
Secondly, assuming processors will take the rabbits, thus allowing them to operate at
their capacity and reclaim contracts, the rabbits must be transported from producer to
processor in a timely and safe manner. The transportation system employed at present
works. Rabbits are being delivered to Mississippi. However, not unlike the relationships
with processors, there is little or no fallback position should the current system fail.
On the positive side, there was a willingness expressed by some major outlets to engage
or re-engage in selling rabbit. There are several potential opportunities to reinvigorate
military demand. And, introducing the consumer to rabbit through secondary processing
such as the product development conducted by Neil Howard could have a place in an
overall effort (while increasing a demand for rabbit meat from producers). All activities
will require direct and perhaps creative marketing techniques to maximize potential.
Some of those thoughts and approaches will be addressed in the marketing plan.
Finally, and perhaps most importantly, America‘s preoccupation with healthy diets and
the escalating focus on obesity provides a unique opportunity to present the intrinsic
value of rabbit as a healthy alternative. That is an effort that is bigger than the producer,
bigger than the processor, and bigger than the individual effort of any food broker or
grocer or restaurateur.
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Therefore, given the current health trends and potential opportunities identified through
our market research in the military, civilian, online and alternative markets, a targeted
marketing and educational campaign (one which emphasizes taste), together with
continued research in brood-stock, rabbit feed and nutritional options, could pave the way
for a promising future for rabbit meat production and consumption in Alabama and
beyond.
rabbit…the other meat to eat
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