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Susan Schoenian Sheep & Goat Specialist Western Maryland Research & Education Center University of Maryland Extension www.sheepandgoat.com Making money with sheep and goats

Making money with sheep and goats

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This presentation offers strategies for making money raising sheep and goats. It was prepared by University of Maryland Extension Sheep & Goat Specialist Susan Schoenian.

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Page 1: 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

Page 2: 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.

Page 3: Making money with sheep and goats

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.

Page 4: Making money with sheep and goats

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)

Page 5: Making money with sheep and goats

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

Page 6: Making money with sheep and goats

Components of a business plan

Mission statement.Goals and

objectivesDescription of

your business

Page 7: Making money with sheep and goats

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

Page 8: Making money with sheep and goats

Components of a business plan

Resource inventory

Production planMarketing planFinancial plan

Page 9: Making money with sheep and goats

Resource inventory

LandFencingBuildingsFeed resources

LaborUnpaid family

Capitalhow will you finance your operation?

Page 10: Making money with sheep and goats

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.

Page 11: Making money with sheep and goats

Financial plan

Balance sheetIncome statementCash flow

statementEnterprise budget

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

Page 12: Making money with sheep and goats

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

Page 13: Making money with sheep and goats

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

Page 14: Making money with sheep and goats

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.

Page 15: Making money with sheep and goats

2) Develop a production system based on your resources.

Land and feedBuildingsLabor and skills

Page 16: Making money with sheep and goats

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.

Page 17: Making money with sheep and goats

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.

Page 18: Making money with sheep and goats

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

Page 19: Making money with sheep and goats

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.

Page 20: Making money with sheep and goats

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!

Page 21: Making money with sheep and goats

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!

Page 22: Making money with sheep and goats

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

Page 23: Making money with sheep and goats

Select appropriate breeds: rams and bucks

Growth rateCarcass meritSurvival

Fiber and dairy

Page 24: Making money with sheep and goats

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.

Page 25: Making money with sheep and goats

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.

Page 26: Making money with sheep and goats

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

Page 27: Making money with sheep and goats

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.

Page 28: Making money with sheep and goats

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.

Page 29: Making money with sheep and goats

5) Manage the factors affecting profitability

1) Percent quality lamb/kid crop marketed

2) Feed costs3) Market prices

Page 30: Making money with sheep and goats

Percent lamb/kid crop

FertilityLitter size

Ovulation rate

Embryo survival

Survival

Page 31: Making money with sheep and goats

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

Page 32: Making money with sheep and goats

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

Page 33: Making money with sheep and goats

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 .

Page 34: Making money with sheep and goats

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.

Page 35: Making money with sheep and goats

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

6) Agriculture is . . .

Page 36: Making money with sheep and goats

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.

Page 37: Making money with sheep and goats

Science and technology

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

Disease treatment Preventative health Feeding Breeding and selection

Page 38: Making money with sheep and goats

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.

Page 39: Making money with sheep and goats

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.

Page 40: Making money with sheep and goats

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.

Page 41: Making money with sheep and goats

Thank you for your attention

www.sheepangoat.com