Posted on 03/29/2005 4:15:35 PM PST by SJackson
Dairy cows have been joined by some new - and in some cases exotic - faces in the upper Midwest.
Full-time and hobby farmers have taken gambles with alternative livestock such as elk, bison, emus, ostriches, lamas, miniature horses, donkeys, pot-bellied pigs and even worms. Many of those enterprises were hyped as the next big thing and a guaranteed moneymaker for investors.
Producers find ways to stay in alternative livestock business
Dairy cows have been joined by some new - and in some cases exotic - faces in the upper Midwest.
Full-time and hobby farmers have taken gambles with alternative livestock such as elk, bison, emus, ostriches, lamas, miniature horses, donkeys, pot-bellied pigs and even worms.
Many of those enterprises were hyped as the next big thing and a guaranteed moneymaker for investors.
In some cases, the predicted product markets haven't quite materialized. The market for velvet antler, once regaled as a profitable opportunity for elk producers, has been stuck in a rut. Many emu producers have been disappointed that oil and meat sales to health-conscious consumers haven't soared.
A handful of producers have been determined to turn a profit from their investment, sticking with it through thick and thin.
But sometimes, the rush of producers into the business was followed shortly by a stampede leaving it.
Emus 'in holding pattern'
The dust has settled in the Wisconsin emu industry, according to Joylene Reavis of Sugar Maple Emu Farm near Brodhead.
The state's emu numbers have stabilized since the bottom fell out of the live bird market and many producers left the industry.
"We're in kind of a holding pattern right now," Mrs. Reavis said. "We had hoped it would move along a little quicker than it has."
She said the Wisconsin Emu Association, of which she is president, has about 30 members in Wisconsin and northern Illinois, down from a peak of more than 150.
Connie Rickard said she and her husband, John, never made a penny with emus, and most of those they know who tried emus also left the business. She said she's heard about desperate breeders turning the birds loose.
"No, they're not profitable at all. They turned out to be pets - a big expense for pets," she said. "Everybody wanted to raise and sell them but not promote."
The Rickards sold most of their birds a couple years ago. But birds bought for $2,500 a pair were sold for about $15 apiece.
"We practically gave them away so we wouldn't have to feed them," she said.
They have six emus left on their Star Prairie hobby farm. The retired couple plans to sell them this summer.
During the industry's breeder-market stage, the birds brought big money, Mrs. Reavis said. But times got tough as it transitioned into a meat and oil market.
Live-bird prices have somewhat bounced back. A proven breeder pair goes for $300 to $500, compared with $3,000 to $5,000 paid a few years ago. Some went for $10,000 apiece.
Producers hope for U.S. Department of Agriculture-inspected processing in the state, although prior plans fell through. While some state-inspected plants will process emus, product from those plants can't be sold across state lines.
Mrs. Reavis, whose 130 head of emu are processed in Oklahoma, markets products through her Web site and on-farm store.
She said the meat - low in fat and cholesterol - has gained some acceptance among health-conscious consumers. Ground emu sells for $3.50 to $4.75 a pound, while steaks are $6 to $12 a pound and roasts are $5 to $6 a pound.
"We have regular customers that buy large quantities every few months, but most people treat it as a novelty," she said.
Mrs. Rickard, however, said their attempts at marketing the meat fell short.
"People just didn't take to them," she said.
Despite losing money, Mrs. Rickard remains a believer in emu products and said emus were easy and fun to raise.
Mrs. Reavis continues to have high hopes for the emu industry.
"I think it will expand," she said. "Right now, there's lots of research going on and interest from big companies. We're in a waiting game; it will take time for all this to come around.
Ostriches haven't taken off
Over the past decade, many also have tried raising another widely touted ratite: ostriches. But the state ostrich breeders association and plans for ostrich-marketing cooperatives no longer exist. Farm numbers also have dwindled in the American Ostrich Association, though raising the birds is still big in the Southwest and Texas.
Joe and Donna Dernbach, who operate Golden Dreams Ostrich near Almond, hope the business will find its wings. Theirs the biggest Wisconsin ostrich ranch. In the past year, they have doubled their flock to 200.
They bought their first ostriches about 11 years ago, with plans to hatch and raise birds to sell as breeding stock. That's not what happened, Mrs. Dernbach said.
At that time, breeding stock went for $15,000 to $70,000 per proven pair; it's now down to $3,000 to $5,000.
When the breeding stock market fell apart, there was nothing left but to promote the meat, which scared off a lot of producers.
"They had all these birds … and they didn't know what to do with them," Mrs. Dernbach said. "The slaughter plants didn't know how to cut up the bird."
The Dernbachs reluctantly worked on marketing in an effort to make good on their investment in the birds and hatching equipment.
But finding processing has been difficult, as many plants don't want to handle such a big bird.
"A lot of places won't even touch an ostrich," Mrs. Dernbach said.
The Dernbachs have their birds processed at the nearest USDA-inspected facility in Illinois. They make the trip three times a year.
They sell ostrich meat from their farm, through the Dane County farmers market and on the Internet, where a faithful following for ostrich meat means they can get $4 for a pound of ground or $12 for a pound for tenderloins.
"We have people who left Wisconsin and moved to Florida and Massachusetts and still order my meat," she said.
Mrs. Dernbach is surprised that many restaurants still refuse to try the product.
"Even if you give it to them, they won't try it," she said.
With no network of state growers, the few remaining ostrich growers feel isolated. Mrs. Dernbach said she expects it to stay that way.
"I don't think there will be many people getting in," she said.
Disease hurts deer, elk
Trouble in the deer and elk industry has been more the result of regulation, said Gwen Gilbertson, secretary for the Wisconsin Commercial Deer and Elk Association.
New testing rules for diseases such as tuberculosis and chronic wasting disease intimidate potential raisers and burden established farmers, who have borne the brunt of testing costs. Brucellosis testing might be coming, and the CWD area continues to grow.
The Gilbertson farm at Spring Green has been under quarantine almost 1½ years because a whitetail deer shot a few miles away had CWD. Mrs. Gilbertson said no sunset date has been set.
"We have a very good case, but they have to rule on the side of safety. It's good this is not our only income or we would be out of business," she said. "If you're in the eradication zone, who wants to buy your meat?" she said.
Membership in the association has dropped slowly but steadily in the past decade and sits at 100, compared with about 140 a few years ago. Membership in the Minnesota Elk Breeders Association has fallen to 175, from a peak of almost 300.
Wisconsin has 724 deer and elk farms, including 65 hunting preserves, according to Department of Agriculture, Trade and Consumer Protection statistics. The state has more than 17,100 captive whitetail deer, more than 8,100 elk, 3,600 red deer, 1,100 fallow deer, almost 300 sika deer and 150 reindeer.
"Last year, 22 (producers) went out and 25 started, so it's a wash," DATCP spokesperson Donna Gilson said. "Given the CWD situation, it really is surprising that the numbers are staying that stable."
It's more important than ever that deer and elk farmers unite to fight new rules on the industry, Mrs. Gilbertson said.
Mrs. Gilbertson said there has been interest in venison and demand likely outpaces supply.
What hurts U.S. producers is the importing of thousands of tons of New Zealand-raised red deer labeled as elk in the United States. The New Zealand government subsidizes the industry and does not test for CWD, so they can afford to undercut U.S. raisers.
"That's one of our biggest fights right now. … Why are we importing meat from a country that doesn't make sure the meat is safe?" Mrs. Gilbertson said.
Mrs. Gilbertson said the market for velvet antlers is still there but not wildly profitable because of CWD, market saturation and Asian markets. Top-grade velvet antlers sell for $12 to $15 per pound, compared with $140 per pound about a decade ago. A velvet antler pool in Wisconsin sold about 7,000 pounds of velvet last year, compared with about 10,000 pounds in previous years.
Mrs. Gilbertson said the velvet market seems to be on a three-year cycle.
"We'll have to ride it out," she said.
That's what Larry Gerdes plans to do. Mr. Gerdes has cut his Bay City elk herd to 34 head from a high of 100 a few years ago.
"We've got enough invested. We got to stay," he said.
CWD and the resulting restrictions put a crimp in the breeding stock market, he said. But he's hopeful it will turn around and predicts producer numbers will stabilize.
"Those that wanted out are pretty well gone," he said.
The industry attracted people who wanted to turn a fast buck. Most of those "wannabe" elk farmers have exited, he said.
It's reverted back to a meat market, said Mr. Gerdes, who sells meat to restaurants near his farm and in the Twin Cities. He said ground elk usually sells for $4.99 to $9.99 a pound, but he has it available for $3.50.
He also has put energy into other markets. He freeze-dries velvet antlers to be used in herbal capsules for his farm and others. He also sells freeze-dried hearts, livers and tongues to be sold as pet snacks and freeze-dried patties for training dogs.
Freeze-dried velvet, which has 75 percent of the moisture removed, can go for $120 a pound, Mr. Gerdes said.
Bison markets evolving
It hasn't been easy for many in the bison business, but most have stuck with it, said Rebecca Ries, secretary/treasurer of the Wisconsin Bison Producers Association.
Mrs. Ries and her husband, Patrick, raise 110 bison near Mount Calvary.
"My gut feeling is that, in the last 10 years, it has increased considerably," she said.
The moment of truth came a few years ago when the bottom fell out of live-animal prices.
"Everybody saw high prices on breeding stock. It doesn't take rocket science to figure out that breeding stock … leads to a lot of animals," she said.
Most breeders lacked the foresight to start thinking about marketing meat, she said.
It's been a weird market, she said. About six years ago, a bison heifer calf sold for about $1,500; bred cows went for $3,000 to $5,000. Young bulls were inexpensive.
"About five years ago, the market for live animals went in the toilet big-time," she said. "There were a lot of larger producers - in Wisconsin and elsewhere - that had huge herds and no concept of what they were going to do with them."
At a recent state sale, a heifer calf sold for $280, a young bred cow for $770 and a bull calf for $460.
"This is absolutely the time to get in; prices can't get any lower in our state right now," she said.
But Mrs. Ries said producers must be willing to have a meat business.
She said the biggest change in recent years has been getting in a mindset to butcher heifers. Many breeders have paid big money for young female bison.
Live-animal prices are starting to inch back, but Mrs. Ries doesn't expect a return to previously inflated prices.
Prices for bison meat, promoted as a low-fat choice, have held their own and demand is growing, she said.
Based on a WBPA membership survey, the average price for ground bison is $4 a pound. Rib-eye steaks go for $12 a pound and tenderloins for $20 a pound.
Despite market challenges, the number of bison producers in Wisconsin has been stable.
There are about 9,000 head in the state, living on more than 230 farms. About half those 230 farmers are WBPA members. Wisconsin ranks third in the nation, but most of the bison are in small operations of 40 to 50 head.
"We're probably the smallest producer group in the state," she said.
Marketing cooperatives similar to those in Minnesota have been talked about in Wisconsin, but nothing has formed, Mrs. Ries said. Most Wisconsin producers sell meat directly to consumers.
According to a 2003 survey, 2,000 bison were processed in the state that year. Of the 43 processors who process bison, two are USDA-inspected.
"There actually are only about four (plants) that do any amounts of bison," she said.
A movement by some bigger bison producers to get them listed as an amenable species such as beef and pork - meaning they don't have to pay for processing fees - "would wreck us in Wisconsin. We have two USDA plants in the state today that process bison, and one isn't taking new customers," Mrs. Ries said.
Livestock pet markets strong
Breeders of some other alternative livestock report that business remains good.
The versatility and companion quality of species like llamas and miniature donkeys has helped, said Norris Berg of Ellsworth.
Llamas have only one baby a year, so it's hard to saturate the market, Mr. Berg said.
Mr. Berg and his wife, Kay, began raising llamas and miniature horses about 10 years ago. They have one of the largest llama farms in the area, at 90 head, and also have 25 miniature donkeys.
Llamas can be used for their fiber, pulling carts, packing, petting zoos and guarding other livestock such as sheep and goats. They also are popular with 4-H groups, and fair llama exhibits are growing.
"The average (price) has come down," he said, "but show quality and breeding quality has done a pretty good job of staying up with the market."
Pet-quality male llamas sell for $350, he said. Prices for good breeding stock are more than $5,000. The lower prices make it easier for people to get in, Mr. Berg said.
Animals with top bloodlines still sell for higher prices. One llama recently sold for $220,000 and an alpaca went for more than $500,000.
"The high end has gone up, for sure," Mr. Berg said.
But he said the overall quality in animals has gotten better through breeding.
He said miniature donkey prices actually have gone up a bit, to more than $1,000 for breeding stock and $350 for a pet-quality male.
ping
A farm near me raises llamas and ostriches and I know a buffalo farmer.
If you live in a place where there are lots of deer, be advised llamas can get sick and die from a nasty parasite that can get into their spinal columns. That's something we learned the hard (sad) way.
ping
I used to work in the vicinity of a very prosaic turkey farm. Some birds were always escaping and wandering around the nearby yards, parking lots and roads. One could hope that there is a better control of larger animals mentioned in this article, for even a modest size deer is no fun when hit by a car.
been there, done that (emu's) have one nasty scar to show for it and enough sense to not try it again
Is this like one of those emu things? I remember we talked about emu's a while back..there like mid-western critters not San Diego Critters..LOL...
The guy I know that raises buffalo has become quite wealthy. He started in the mid to late 70s and grew a herd of 100 to 150 animals. He even had a white calf born that brought in indians from all across north America.
Between raising breeding stock, selling the meat, and being an "off the beaten path" tourist attraction, he's made a killing.
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