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

1. Making money with sheep and goats Susan SchoenianSheep & Goat SpecialistWestern Maryland Research & Education CenterUniversity of Maryland Extensionwww.sheepandgoat.com

2. Making money raising sheep and goats Plan to be profitable. Develop a production system based on your resources. Start with (and keep) the right animals.

3. Making money raising sheep and goats Maintain strict biosecurity. Manage the key factors affecting profitability Apply business and scientific principles to your enterprise.

4. 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)

5. 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

6. Components of a business plan Mission statement. Goals and objectives Description of your business

7. Mission statement or visionGoals and objectives Why do you (want to) raise sheep or goats? Define success. ProfitabilityReturn on investment Tax write-off Quality of life Landscape management 4-H project

8. Components of a business plan Resource inventory Production plan Marketing plan Financial plan

10. 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.

13. Lethal control

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

16. Electric offset wiresHigh-tensile, electric 5 to 7 wires Close together near ground Keep fence lines clean

17. 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.

18. 2) Develop a production system based on your resources. Land and feed Buildings Labor and skills

19. 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.

20. 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 mouths Moderate body condition.

21. 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

22. Favor performance-tested livestock EPD’s (NSIP or DHIA) Ram and buck tests On-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.

23. Select appropriate breeds: ewes and does Purpose: meat, milk, dairy, wethers, show Adaptability Type of coat or wool Reproductive ability Maintenance level It’s the females that make you money!

24. The “Holy grail”pounds of quality lamb/goat weaned Early puberty Prolificacy Maternal ability Lamb/kid survival Milk production Out-of-season breeding It’s the females that make you money!

25. 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

26. Select appropriate breeds: rams and bucks Growth rate Carcass merit Survival Fiber and dairy

27. 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.

28. 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.

29. Sizing sheep for the market A lamb is ready for market when it weighs approximately 2/3 of its mature size.

30. 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.

31. 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.

32. 5) Manage the factors affecting profitability Percent quality lamb/kid crop marketed Feed costs Market prices

33. Percent lamb/kid crop Fertility Litter size Ovulation rate Embryo survival Survival

34. Maximize litter size for your production environment Season Highest fertility in fall (spring lambing/kidding) Age Most productive age: 3-6 Nutrition Body condition Flushing Genetics Within breed Between breeds

35. Control feed costsFeed accounts for ~70% of total costs. Feed balanced rationsSeparate animals into production groups. Limit feed Feed whole grain Compare nutrient costs Feed least-cost rations Weigh feed http://www.sheepandgoat.com/articles/copinghighfeedcosts.html

36. 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 .

37. 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.

38. 6) Agriculture is . . . The science, art, and business of cultivating the soil, producing crops, and raising livestock.

39. 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.

40. Science and technology Use scientifically-proven methods of production to raise sheep and goats. Disease treatment Preventative health Feeding Breeding and selection

41. 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.

42. 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.

43. 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.

44. Thank you for your attention www.sheepangoat.com