Making money with sheep and goats

Susan SchoenianSheep & Goat Specialist

Western Maryland Research & Education CenterUniversity of Maryland Extension

www.sheepandgoat.com

Making money

with sheep and goats

Making money raising sheep and goats

1) Plan to be profitable.

2) Develop a production system based on your resources.

3) Start with (and keep) the right animals.

Making money raising sheep and goats

4) Maintain strict biosecurity.

5) Manage the key factors affecting profitability

6) Apply business and scientific principles to your enterprise.

1) Plan to be profitable: Have a business plan.

A “roadmap” for your business.

A written document that outlines how you plan to run your business.

Anecdotal evidence indicates than those who prepare a business plan are 10 to 20 times more profitable than those who don’t. (Virginia Tech)

Business planning

Allows you to create a business on paper and manipulate and evaluate different scenarios before risking any of your own resources.

Is usually required when you apply for a loan or grant.

Online business planning software: http://agplan.umn.edu

Components of a business plan

Mission statement.Goals and

objectivesDescription of

your business

Mission statement or visionGoals and objectives

Why do you (want to) raise sheep or goats?

Define success. Profitability

Return on investment Tax write-off Quality of life Landscape management 4-H project

Components of a business plan

Resource inventory

Production planMarketing planFinancial plan

Resource inventory

LandFencingBuildingsFeed resources

LaborUnpaid family

Capitalhow will you finance your operation?

Marketing plan

What are you going to sell?

Who are you going to sell it to?

How are you going to sell it?

Will it be profitable?

Identify your target market.

Financial plan

Balance sheetIncome statementCash flow

statementEnterprise budget

http://www.sheepandgoat.com/spreadsheets.html

Production plan: predator control

Proper fencingManagement

51.7%

22.7%

Predators were responsible for 37% of sheep and lamb deaths in 2005.

Livestock guardians Lethal control

Perimeter fencingA good fence is your first line of defense against predators.

Woven/net wire Barbed wire at ground

level Electric offset wires

High-tensile, electric 5 to 7 wires Close together near

ground Keep fence lines clean

Livestock guardians

Guardian dogs Great Pyrenees Akbash Maremma Anatolian Shepherd Komondor Tibetan Mastiff Polish Tatra

Llamas Female or neutered

male

Donkeys Gelding or jenny

45% of U.S. sheep farms use livestock guardians.

2) Develop a production system based on your resources.

Land and feedBuildingsLabor and skills

3) Start (and keep) with the RIGHT animals for your production system.

Select healthy, sound animals from reputable breeders.

Select appropriate breeds for your enterprise.

Don’t buy good females and skimp on the males.

Start small and grow the size of your operation gradually.

Healthy, sound animals from reputable breeders

From disease-free herds Abscesses (CL) Foot rot Soremouth Pinkeye

Sound reproductive organs. Teats and Udders Testicles, epididymis, penis

Sound and solid mouthsModerate body condition.

Healthy, sound animals from reputable breeders

Ideally from scrapie-certified or monitored flocks.

Ideally from CAE-free herds and OPP-free flocks.

Find out history of flock/herd Disease history Vaccination program Deworming program

Favor performance-tested livestock

EPD’s (NSIP or DHIA)Ram and buck testsOn-farm records

Adjusted weaning and litter weights

Post-weaning gain Carcass or ultrasound

data Milk records Fiber records

You can’t tell much by looking at an animal.

Select appropriate breeds: ewes and does

Purpose: meat, milk, dairy, wethers, show

AdaptabilityType of coat or

woolReproductive

abilityMaintenance

levelIt’s the females that make you money!

The “Holy grail” pounds of quality lamb/goat weaned

Early pubertyProlificacyMaternal abilityLamb/kid

survivalMilk productionOut-of-season

breeding

It’s the females that make you money!

Select appropriate breeds: rams and bucks

What’s the ram of buck’s purpose?

Sire market lambsWhat weight, condition?

Sire replacement ewe lambs

Sire both

Select appropriate breeds: rams and bucks

Growth rateCarcass meritSurvival

Fiber and dairy

Merits of crossbreeding

Hybrid vigor [heterosis]: the superiority of crossbred offspring to the average performance of their parents.

Breed complementarity: all breeds have strengths and weaknesses.

Crossbreeding principles

Mating rams and ewes of different breed compositions.

Does not denote indiscriminate mixing of breeds.

Utilizes breeds in their appropriate role. Suffolk as a ram. Polypay as a ewe.

Sizing sheep for the market A lamb is ready for market when it weighs

approximately 2/3 of its mature size.

Optimal slaughter weight for lambs

Average mature ewe weight of sire breed

95 120 140 160 200

Average mature ewe

weight of dam breed

95 64 76 83 90 103

120 80 91 98 112

140 94 105 120

160 107 127

200 134

4) Maintain strict biosecurity

Don’t buy animals at sale barns.

Isolate new livestock for at least 30 days.

Close flock (except males) as soon as you can

Don’t show.

Most diseases walk through the gate onto your farm.

4) Maintain strict biosecurity

Don’t spread diseases via shearing and sharing of equipment.

Control wildlife Limit visitors.Preventative health

management.Cull problem

animals.Most diseases walk through the gate onto your

farm.

5) Manage the factors affecting profitability

1) Percent quality lamb/kid crop marketed

2) Feed costs3) Market prices

Percent lamb/kid crop

FertilityLitter size

Ovulation rate

Embryo survival

Survival

Maximize litter size for your production environmentSeason

Highest fertility in fall (spring lambing/kidding)

Age Most productive age: 3-6

Nutrition Body condition Flushing

Genetics Within breed Between breeds

Control feed costsFeed accounts for ~70% of total costs.

Feed balanced rationsSeparate animals into production groups.

Limit feedFeed whole grainCompare nutrient

costsFeed least-cost rationsWeigh feed

http://www.sheepandgoat.com/articles/copinghighfeedcosts.html

Control feed costsFeed accounts for ~70% of total costs.

Consider alternative feeds.

Store feed properly: invest in feed storage.

Minimize feed wastage: invest in good feeders.

Maximize your pasture resource.

Cull unproductive animals .

Marketing

Keep ethnic holidays in mind when placing animals into marketing channels.

Direct, niche, and value-added marketing have the potential to increase profits.

Highest price does not always equate to the highest net price.

The science, art, and business of cultivating the soil, producing crops, and raising livestock.

6) Agriculture is . . .

Farming is a business.

Select sheep and goats for economically important traits.

Feed least cost rations. Use inputs to the point

that they provide an economic return.

Base management decisions on economics.

Keep financial records. File schedule F Calculate cost of

production. Determine profitability

per unit of production.

Science and technology

Use scientifically-proven methods of production to raise sheep and goats.

Disease treatment Preventative health Feeding Breeding and selection

Science and technology

Not all science is practical or economical.

Not all research is properly designed or conducted.

Apply your own logic and reasoning to research data and conclusions.

Science and technology

Listen to, but don’t rely on testimonials.

Test your own hypotheses.

Conduct on-farm research.

Share research needs with the university.

The art of farming

Some things you can’t learn in a book.

Science can’t explain everything.

Some things you can control.

You need to balance book knowledge with the real world.

The livestock don’t read the books.

Thank you for your attention

www.sheepangoat.com