Rabbit Industry “Fact Pack” - Livestock Research Innovation

Ontario Rabbit Research Strategy Planning Day
17th September 2013
Hanlon Convention Centre,
Guelph, ON.
Rabbit Industry “Fact Pack”
Purpose of the Fact Pack
This document was designed to ensure that all participants have a similar understanding
of the sector, along with the operating environment in which we are planning as well as
historic trends for important inputs for our industry such as oil, farmland and feed costs.
Please take the time to review the information contained in the fact pack as it may be
referenced during the research strategy session.
Table of Contents
Rabbit Production in Canada
Agriculture Agri-Food Canada Stats – Canadian Rabbit Supply
Exports and Imports – value and kg’s
Stats Canada information
Current system for marketing rabbits in Ontario
External Environmental factors affecting farm input costs
Farmland values trends - Ontario
Farmland value trends - National
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14
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18
Rabbit Production in Canada
Rabbit production is not recognized as a “traditional” or “mainstream” livestock
production system. For developed countries, rabbit production is considered a
“marginal” or alternative form of agriculture. Rabbits were domesticated more recently
(late Middle Ages) than other domestic animal species. Most research and academic
literature has focused on beef, pork and poultry with rabbit production receiving
considerably less attention.
Rabbit is popular in countries such as Italy, Spain, France and China. These countries
consume the most rabbit per capita.
In Canada, Quebec produces the largest amount of rabbit.
Table 1: The Breakdown of Canadian Rabbitries by Province.
Number of farms reporting
Newfoundland and Labrador
Prince Edward island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
TOTAL, CANADA
5
17
59
35
518
881
152
237
502
341
2747
Average number
per farm
3.2
9.3
8.8
34.5
197.6
85.9
65.1
8.4
11.5
25.3
75.1
Sourced from Stats Canada, January 2006
Fanciers or hobbyists account for a measurable amount of production and tend to have
fewer rabbits on their farms. This is illustrated by the different averages compared to the
number of reporting farms in Table 1 above.
Figure 1: Breakdown of Canadian rabbit production by province on a percentage basis in 2006
Alberta
3%
Saskatchewan
1%
2006
British Columbia
4%
Maritimes, less than
1% .
Manitoba
5%
Ontario
37%
Quebec
50%
Sourced from Stats Canada.
Quebec produces approximately 50 per cent of rabbit in Canada, followed by Ontario
with approximately 37 per cent according to Statistics Canada’s 2006 Census of
Agriculture. The rest of the provinces make up the remaining 13 per cent of Canadian
rabbit production. (See: Figure 1)
In past years, the number of rabbit farms and production decreased in Canada.
Therefore exports decreased as well in 2006.
Figure 3: Number of rabbit farms in Canada
Figure 4: Inventory in Canada
source: Agriculture and Agri-Food Canada
source: Agriculture and Agri-Food Canada
Inventory in Canada
Number of rabbit farms in Canada
Number of head
Number of farms
10,000
8,000
6,000
4,000
400,000
350,000
300,000
250,000
200,000
2,000
150,000
0
1981
1986
1991
1996
2001
2006
1981
1986
1991
1996
2001
2006
Figure 6: Exports of Rabbit or Hare Meat and Edible Meat Offal, Fresh, Chilled or Frozen
source: Statistics Canada
Value($CDN)
Quantity (KGM)
2006
29,465
10,305
2005
178,027
21,387
2004
118,976
21,801
2003
174,537
19,277
However, recent studies (from 2003 – 2009) have shown an increase in rabbit
production indicating definite improvement in the industry.
Figure 5: Rabbit Slaughter in Canada
source: Agriculture and Agri-Food Canada
Number of head
Slaughter in Canada
700,000
650,000
600,000
550,000
2003
2004
2005
2006
2007
2008
2009
There are two federally inspected plants that process rabbit in Canada. They export
rabbit meat to other Canadian and global consumers.
Table 12: Federally Registered Meat Establishments Approved for Rabbit Slaughter and
Processing in Canada
Source: CFIA
Flintshire Farms Inc.
Canards Du Lac
Brome Ltée/Brome
Lake Ducks Ltd.
Address
79 Pheasant Farm
Road
40, Chemin Du
Centre
Town/Province
Flinton, ON
Postal Code
K0H 1P0
Knowlton, QC
J0E 1V0
There are 24 provincially licensed facilities to slaughter and process rabbits in Ontario.
http://www.omafra.gov.on.ca/english/food/inspection/meatinsp/prod_type/rabbits_name.htm
Global Rabbit Production at a Glance
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,
representing 31% of total production.
It’s interesting to note that in 2000, over 99.5% of all live rabbits imported into the
United States came from Canada with the remainder imported from Germany. Imports
of rabbit meat by the United States came primarily from China, and small amounts
came from Canada.
According to Agriculture and Agri-Food Canada in 2006, consumption of rabbit in
Canada was only 22.5 g per capita annually. This is in stark contrast to rabbit
consumption in Europe which is just over 8 kg per capita per year.
Commercial Rabbit Breeds
There are over 30 breeds of domestic rabbits in North America but only the heaviest
ones are used for commercial meat production. The New Zealand White and
Californian are most popular breeds for commercial production because they grow
rapidly and have a square blocky build resulting in more meat yield per rabbit.
The New Zealand White was originally developed in the United States and is the most
popular meat rabbit with white fur, bright pink eyes and prominently veined ears. The
average litter size is 8 – 10 kits. A mature buck weighs about 4.5kg (9.9lbs) and does
weigh about 5kg (11lbs). The Californian is predominately white with brown or black
ears, nose, feet and tail with pink eyes. A mature buck weighs about 4kg (8.8lbs) and
mature does weigh 4.3kg (9.5lbs). Their average litter size is 6 – 8 kits.
Nutritional Information
The rabbit sector has the potential to overcome challenges associated with a growing
world population by supplying a wholesome, healthy food product.
Rabbit meat is high in protein, low in fat and very nutritious. It is easily digested by
young and old alike and is particularly adaptable to special diets such as weight
reduction, low cholesterol, diabetic, low sodium and diets for the aged. It is considered a
white meat and has a mild flavour with a texture similar to chicken. Rabbit meat has
one of the best meat-to-bone ratio of any meat producing.
Figure 7: Nutrient Analysis of Ontario Produced Rabbit Meat*
Weight
(g)
Barbequed 100
Energy
(Kcal)
Protein
(g)
Fat
(g)
Saturated Moisture
Fat (g)
(%)
167
26
7
3.3
66
*Information provided by a 1998 private lab study. (Micro-Chem Laboratory Inc.)
Rabbit Production in Ontario
Ontario Rabbit, formerly the Ontario Commercial Rabbit Growers Association, was
founded in 1964 to represent the interests of Ontario rabbit growers. The 2011 Ontario
Rabbit producer membership includes approximately 100 members, the majority of
which are currently involved in commercial meat rabbit production.
In Ontario, rabbits are generally raised inside well ventilated barns with appropriate
lighting. They are fed a well balanced diet, always have access to water and are kept
comfortable in a cool climate. Rabbits grow quickly, reproduce readily and have a high
degree of genetic diversity.
The average number of breeding does per rabbitry is 135 and the majority of farms are
in the small (less than 50 breeding does) and medium (50-200 breeding does) range.
However, farm size is variable, with the smallest operation involving 2 breeding does
and the largest operation involving 1100.
Figure 8: Distribution of Rabbitry Size of Ontario Rabbit Members for 2008-2009
27%
38%
35%
Small (<50 Does)
Medium (50-200 Does)
Large (>200 Does)
Source: Ontario Rabbit
There are 24 provincially licensed facilities to slaughter and process rabbits in Ontario.
http://www.omafra.gov.on.ca/english/food/inspection/meatinsp/prod_type/rabbits_name.htm
Currently, the largest provincial rabbit processing plant in Ontario is Abate Rabbit
Packers located in Arthur. Provincially inspected plants are able to market rabbit meat
throughout the province of Ontario. There is one federally registered establishment
licensed to slaughter and process rabbits in Ontario allowing them to export rabbit meat
to other provinces and around the world.
Figure 10: Total Provincial Rabbit Slaughter 1992--2010
Source: Ontario Ministry of Agriculture, Food and Rural Affairs
Total Ontario Rabbit Slaughter
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Total Rabbit
Slaughter
Figure 11: Ontario Monthly Rabbit Slaughter 2009--2010
Source: Ontario Ministry of Agriculture, Food and Rural Affairs
30,000
25,000
20,000
2010
15,000
2009
10,000
5,000
0
Jan
Feb Mar Apr May June July Aug Sep Oct Nov Dec
The principal challenges for Ontario Rabbit producers include lack of consumer data,
marketing programs and limited number of processors. As rabbit meat is not typically a
dietary staple for many consumers, marketing rabbit is also a considerable challenge.
Additionally, as rabbits are mainly available as whole carcasses, consumers may be
intimidated and simply not have the desire or time to prepare it. More consumer market
research is needed in this area.
Ontario Rabbit has recently invested an exceptional amount of time and money to
advance this industry. There has been a great deal of time devoted to developing a
current cost of production standard for rabbit production in Ontario. Ontario Rabbit has
also recently completed Phase I of a 3 Phase project on Biosecurity and in the fall of
2011 will begin on-farm research into artificial insemination for rabbits.
More Information
For more information on commercial rabbit farming in Ontario, please visit Ontario
Rabbit at www.ontariorabbit.ca
References:
Statistics Canada
http://www.statcan.gc.ca/pub/23-502-x/23-502-x2007001-eng.pdf
Ontario Ministry of Agriculture, Food and Rural Affairs
http://www.omafra.gov.on.ca/english/livestock/alternat/facts/info_processed_stat.htm
Canadian Food Inspection Agency
http://active.inspection.gc.ca/scripts/meavia/reglist/reglist.asp?lang=e
Alabama Market Survey: Identifying Opportunities for Expanded Rabbit Meat Production
http://www.docstoc.com/docs/60764481/Alabama-Small-Group-Market-Data-and-Experience-Report
RABBIT SUPPLY
CANADA
FEDERAL AND PROVINCIAL SLAUGHTER (HEAD)
2012
Canada
2011
642,827
2010
623,135
CONSUMPTION PER CAPITA (GRAMS)
% chg
% chg
from 2011 from 2010
to 2012
to 2011
633,032
3.2
2012
Canada
-1.6
Source: AAFC-Red Meat Section
2011
23.8
% chg
from 2011
to 2012
2010
20.6
22.7
% chg
from
2010 to
2011
15.5
-9.3
Source: AAFC-Red Meat Section
QUEBEC PRICE ($/Kg)
2.00 to 2.50 Kg
Over to 2.36 Kg
2.51 to 2.64 Kg
2.65 to 3.00 Kg
Over to 1.25 kg (Carcass weight)
Older rabbits
2011
2010
N/A
3.95
3.95
N/A
N/A
3.99
N/A
N/A
N/A
N/A
N/A
4.45
4.45
N/A
N/A
N/A
4.61
4.61
N/A
N/A
N/A
4.0
N/A
0.0
7.39
N/A
N/A
2.87
2.76
2.76
700,000
Number of head
2012
Provincial and Federal Slaughter in Canada
% chg
% chg
from 2011 from 2010
to 2012
to 2011
650,000
600,000
550,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: Syndicat des producteurs de lapins du Québec
INVENTORY
Province
Canada
Atlantic provinces
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
2011
2006
NUMBER OF FARMS BY PROVINCE
2001
% chg
% chg
from 2006 from 2001
to 2011
to 2006
184,935
206,175
255,762
-10.3
-19.4
1,324
1,905
2,110
-30.5
-9.7
70,853
102,350
96,213
-30.8
6.4
93,574
75,680
117,925
23.6
-35.8
3,985
9,891
11,902
-59.7
-16.9
1,342
1,983
4,189
-32.3
-52.7
8,129
5,753
5,666
41.3
1.5
5,728
8,613
17,757
-33.5
-51.5
2011
Province
Canada
Atlantic province
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Source: Statistics Canada, Census of Agriculture
2006
% chg
from 2006
to 2011
2001
% chg
from
2001 to
2006
2,792
2,747
1,859
1.6
47.8
136
116
83
17.2
39.8
528
518
327
1.9
58.4
1,021
881
730
15.9
20.7
150
152
99
-1.3
53.5
189
237
119
-20.3
99.2
445
502
237
-11.4
111.8
323
341
264
-5.3
29.2
Source: Statistics Canada, Census of Agriculture
Inventory in Canada
Number of head
Number of head
Number of farms
Number of farms
10000
350,000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
300,000
250,000
200,000
150,000
100,000
50,000
0
1986
1991
1996
2001
2006
2011
RABBIT OR HARE MEAT AND EDIBLE MEAT OFFAL, FRESH, CHILLED OR FROZEN
(HS CODE #02081000)
EXPORTS
2012
2011
IMPORTS
2010
2009
2008
2012
2011
2010
2009
2008
Value ($ CDN)
310,577
291,129
296,617
797,683
1,563,178
Value ($ CDN)
259,007
418,704
19,603
0
0
Quantity (KGM)
48,573
29,623
37,597
75,349
150,840
Quantity (KGM)
47,858
77,701
3,822
0
0
Source: Statistics Canada
Source: Statistics Canada
UNITED STATES
2007
Number of head
Number of farms
2002
1997
% chg de % chg de
2002 to
1997 to
2007
2002
616,129
405,241
582,111
52.0
-30.4
27,137
10,073
18,104
169.4
-44.4
Source: USDA, Census of Agriculture
Prepared by: Red Meat Section, Agriculture and Agri-Food Canada
Contact: [email protected] or at http://www.agr.gc.ca/redmeat-vianderouge/
Export and Import 2007-2011 – StatCan Canadian and Ontario numbers
The following graphs show the export and import data for rabbit (and hare) meat as reported/recorded by
statistics Canada over the period 2007-2011.
From an export perspective 2008 (particularly) and 2009 were exceptional years. This is reflected in the Ontario
figures but clearly where 2009 was the second biggest export year for Canada it was the biggest for Ontario.
More interesting is the pricing where on average Ontario receives a lower average price per kilo for the period of
$9.32 per kg vs Canadian average of $10.03 per kg. Note: The import price average is $5.27 per kg for Canada
and $5.13 for Ontario.
Canada Exports
Ontario Export Component
Canada Imports
Ontario Import Component
The Current System for Marketing Rabbits in Ontario
Rabbits in Ontario are both finished and marketed as fryers, which are less than 2.34kg,
or as roasters, which are older animals that are over 2.34kg. Roasters are typically
culled breeding animals or rabbits from fanciers and are marketed at a reduced price
per kilogram.
Ontario has a variety of methods for marketing finished rabbits. It is estimated that
approximately half of all fryers sold in Ontario are sold through a rabbit depot and the
producers have limited direct contact to the processor and the end consumer. A rabbit
depot is usually run by a rabbit producer who buys rabbits from other rabbit producers
in the area. The depot, in turn, sells all of the purchased rabbits and their own directly
to the processor. The depot would act as an agent in the collection of the rabbits, the
transportation and delivery of the rabbits to the processor and will directly pay
producers for rabbits purchased.
The other half of rabbit producers sell their finished rabbits directly to the processor.
The majority of these rabbits are then marketed by the processor to the consumer via
foodservice and retail. A small portion of the fryers are custom slaughtered and the
producers assume the responsibility for the marketing of their own rabbit meat. These
rabbits are distributed directly to home consumers via a freezer trade or are marketed
to restaurants as fresh or frozen product.
With the current system for marketing rabbits, there is often very little communication
between processors and producers. This means that producers do not get feedback on
carcass quality beyond identifying condemned carcasses. Some contributing factors to
the lack of identification of high quality rabbits are differences in the processor’s
preferences for rabbit size and composition, and the lack of an established grading
system. In order to improve rabbit meat quality, consistency and timely delivery, there
needs to be a grading and feedback system established for rabbit meat with increased
communication between the processor and the producers.
Currently, rabbit meat is marketed as a whole carcass. This is suspected to be one of
the causes of stagnant market growth as convenience has become more important to
consumers. Producers and processors have expressed a desire to create value added
products which are easier for consumers to prepare, such as burgers, sausages,
boneless saddles and other portioned servings, in order to increase demand. This
requires an innovative approach to how rabbit meat is sold.
There still remains a demand from some ethnic markets for whole rabbit carcasses,
which currently represent a majority of rabbit meat consumption. Rabbit consumption
in Canada in 2010 was 22.7 grams per capita.
(http://agr.gc.ca/redmeat/rpt/10tbl38a_eng.htm)
For some, rabbit meat is a traditional protein choice, while for others it is a specialty
item at foodservice or even something that they have never tried before.
The opportunity to increase consumer demand for rabbit meat is very real in Ontario
with the changing demographics of consumers. While doubling the per capita
consumption of rabbit meat to 45.4 grams may not seem like very much, this translates
into a doubling of production for Ontario producers. However, aggressive marketing
and consumer promotions are required. At this time, there is very little generic or
brand specific consumer promotions for the rabbit industry.
5.1 Distribution Chain for Ontario Rabbits
Source: Ontario Rabbit
The following pages are provided as a general backdrop/external environmental
scan showing trends in major agricultural inputs and land prices over the last few
years. There is also one opinion piece on the price of oil.
Labour Costs Trends – Canada (Source Stats Canada)
Soy Bean Trends – US (Source USDA)
US Alfalfa Hay Prices 2008-2013 (Source USDA)
Oil Prices Trends (www.platts.com)
World Bank sees slow oil price decline to $80/b in 2025
Source www.platts.com --12Jun2013/1147 am EDT/1547 GMT
International oil prices are likely to decline slowly between now and 2025 to $80/barrel, a
level consistent with the real cost of producing oil from Canada's tar sands, the World
Bank said Wednesday in its Global Economic Prospects report. But the bank also
warned that a major oil supply disruption caused by political turmoil in the Middle East
could send prices spiking by $50/b or more. The World Bank, which uses a simple
average of Dubai, Brent and West Texas Intermediate crudes, expects the oil price to
decline to $102.40/b this year and to $101/b in 2014 and 2015 from $105/b in 2012. It
currently bases its long-term oil price assumptions on an estimated $80/b for Canadian
oil sands output. However, "there are a number of risks to the baseline forecasts," the
Bank said.
"Downside risks include weak oil demand if growth prospects deteriorate sharply,
especially in emerging economies where most of the demand growth is taking place," it
said. "Over the longer term, oil demand could be dampened further if the substitution
between crude oil and other types of energy accelerates."
VULNERABLE: The economies of oil-exporting countries are particularly vulnerable to
shifts in oil prices, the Bank said. "In such an instance government revenues and
current account balances would come under pressure," it said. The bank expects
growth in the Middle East and North Africa region to slow to 2.5% this year from 3.5% in
2012, reflecting a second year of recession in Iran, subdued growth in Egypt and a
"modest pickup" in Algeria. But if real oil prices were to fall to $80/b by the middle of
next year -- the faster decline coming from "a shift in expectations about future prices"
resulting from rising production and reserves in the US and other non-OPEC countries -oil exporters in the Middle East and North Africa would see GDP fall by 1.4% relative to
the baseline and current account balances deteriorate by 3.5% in 2014. "In the current
environment, regional oil exporters will no longer be able to rely on high and rising
prices, but will increasingly need to rely on increased output. This in turn necessitates
reforms that would allow them to invest heavily in infrastructure, and exploration to raise
current production levels which have stagnated or been steadily declining in recent
years," the bank said. "However, private capital and FDI inflows may fail to materialize
because of security risks, poor legal environments for investment and political
uncertainty to varying degrees in Algeria, Iraq, Libya and Yemen and international
sanctions in the case of Iran." Iraq, according to government estimates, needs capital
spending of $30 billion annually on energy infrastructure to meet its oil production
targets, the bank said. But it added that progress on this front was likely to be slow
because of payment disputes with the Kurdish Regional Government and delays in
passing a law governing oil and gas development. Algeria's efforts to raise private
investment for upstream exploration, including shale gas, and refining, may also prove
challenging given the political uncertainty generated by the presidential election
scheduled for spring 2014 and reversals in investor-friendly provisions in investment
laws, the bank said. The response of OPEC, and of Saudi Arabia in particular, will be
key to the outlook for prices, the Bank said. "A key uncertainty in the outlook is how
OPEC (notably, Saudi Arabia) reacts to changing global demand and non-OPEC supply
conditions. Since 2004 when crude oil prices started rising, OPEC has responded to
subsequent price weakness by cutting supply, but has not been as willing to intervene
when prices increase. However, as non-OPEC supplies continue to come on stream and
demand moderates in response to higher prices, the sustainability of this approach may
come under pressure," it said.
Farm land Values - source Farm Credit Canada http://www.fcc-fac.ca/en/
Ontario
Farmland values in Ontario increased an average of 11.9% in the second half of 2012,
following gains of 16.3% and 7.2% in the previous two reporting periods. Farmland
values in Ontario have risen for the past 20 years.
Some cash crop producers leveraged their current land holdings to purchase less
expensive land in other locations, such as in Northern Ontario, yet the resulting impact
on farmland values was relatively modest. The southwestern, central and southern
regions saw significant increases in the second half of 2012. Most areas experienced a
high number of private transactions as well as those occurring through the tendering
process or property auctions.
In most areas, the demand for farmland outweighed available supply, driving prices
higher. Demand was strong from the dairy industry and large intensive livestock
enterprises that need land to meet nutrient management and cropping requirements.
Cash crop operators also wanted to grow their land base due to higher commodity prices
and good crop yields.
With the current strong demand and prices for land, some producers planning to exit the
industry chose to liquidate their land holdings instead of collecting rental income.
Spring 2013 Ontario Farmland Values
National
The average value of Canadian farmland increased 10.0% during the second half of
2012, following average increases of 8.6% and 6.9% in the previous two six-month
reporting periods.
Farmland values remained stable or increased in all provinces. Quebec experienced the
highest average increase at 19.4%, followed by Manitoba at 13.9% and Ontario at
11.9%.
Saskatchewan and Alberta experienced 9.7% and 7.2% average increases respectively,
followed by Nova Scotia at 6.8%, Prince Edward Island at 5.7% and British Columbia at
0.4%.
Average farmland values were unchanged in New Brunswick and Newfoundland and
Labrador.
Canadian farmland values have continued to rise over the last decade. The current
average national increase of 10.0% is the highest since FCC began reporting on
farmland values in 1985. The second highest increase occurred in the first half of 2012,
at 8.6%. The last time the average value decreased was by 0.6% in 2000.