Managing Budgets of Meat Goats for Profitability

Managing Budgets of
Meat Goats for Profitability
Jodie Pennington,
penningtonj@lincoln.edu,
Region Small Ruminant Educator,
Lincoln University,
Newton County Extension Center,
Neosho, MO—417-455-9500
Benefits of Goats (or Sheep)
• Can utilize weeds/brush with grass
• Have 1-2 kids/lambs per pregnancy
• Potential to wean $150 per doe-more per
ewe (equivalent to $1000 per cow--$750
more in practice; in spring $2+/lb=$1200)
• Requires minimal facilities
• Goats can be used for brush control
• Potential to lose money if don’t have good
management—more intensive
management than cattle
Animal Unit Equivalents
Kind/Class
AUE
Intake/day
Air dry lbs.
Intake/year
Air dry lbs.
Cow with calf
1.00
30
10,950
Bull, mature
1.35
40.5
14,782.5
Horse, mature
1.25
37.5
13,687.5
Sheep, mature
0.20
6.0
2190
Goat, mature
0.15
4.5
1642.5
If Getting Into Goats, Need:
Business-Management-Marketing Plan
First Decision--Marketing
1) Hobby?
2) Paying Enterprise?
3) Other Needs (Youth or
Companionship)?
Three Major Factors Affecting
Profitability of Sheep and Goats
• Market prices--$$ per cwt sold; try to hit high
markets: $2/lb versus $1.70/lb
• % Kid or lamb crop sold—essential to keep as
many animals alive as possible: 150% versus
100% equals 50% more income
• Feed prices—try to minimize purchased grain
and maximize good, high quality forage: $45
per doe/kid(s) versus $85 per doe/kid(s)
• All factors can double/triple profit per
doe/kid(s)
Budget for Goats—Return to
Land, Labor, and capital
30 does, 1 buck, 5.0% adult death loss, $2.00/lb for
kids, 170% kid group, $43.79 feed costs, 20% doe
replacement, 33% buck replacement, 5 acres
Change $2/lb— $1.70/lb 130%
>$40
start
for kids kid
feed
sold
crop
costs
Returns $4,381- $3,436 $2,097 $897
With
Good
Mgt
------------ Change Change Change
300
-$945
-$1339
-$1200
does@
$43,810
Must manage properly to get a good price
--clean, healthy, good condition
Appearance important with value-added products
Select Ethnic Market Dates
(type of meat varies with date)
Muslim
Ramadan
Aug 1-30, 2011 start
Id-al-Fitr
Aug 30, 2011
Id-al-Adha
Nov 6, 2011
Jewish
Passover
April 19-25, 2011
Christian
Western or Roman Easter--April 24, 2011
Eastern or Greek Easter—April 24, 2011
Christmas
Dec 25
US Independence Day—July 4 weekend
Mexico Independence Day—Sept 11, 2011
Methods to Market Live Goats/Sheep
Auction Market—most frequent, least effort
On-farm Sales—more gross dollars, more effort
Private Buyer
Consignment Sales
Internet Sales
Contracts
See Market List
• http://www.ams.usda.gov/lsmnpubs/gauction.
htm
• San Angelo, TX and New Holland, PA for
larger markets
• Consider travel, time, buyers, commission at
local markets
• Missouri—Diamond, Buffalo, Highlandville,
Fruitland, Mexico, St Joseph, Oregon County,
others in OK and AR)
Diamond Sale, Thursday, 3/4/10
Weight/Characteristics
Price
Caution!!!!
40-70 lbs, No.1 and No.2
40-70 lbs, No.3
40-70 lbs, No.1-3
$1.90-2.20, one to 2.42/lb
$0.85-1.80/lb
Maybe $1.80/lb average
Group by size and grade
or condition to get best
price
Yearling 80 lb
Kid with baby teeth 80 lb
$0.90/lb
$1.60/lb
Don’t feed for year unless
used for replacement
90-110 lbs, No.1 and 2
$1.27-1.65
Not ―best‖ weight; sell at
weight for market event
Nannies, No.2, 95-160 lbs
Nannies, No.3, 65-95 lbs
$0.65-1.00/lb versus
$0.45=0.65/lb
Sell in good flesh (good
body condition)
Thursday, April 1, 2010—40-70 lbs, No. 1 and 2---$1.40-1.80/lb,
$0.40-0.50 lower than on March 4 –SELL IN TIMELY MARKET!
Budget for Goats—Return to
Land, Labor, and capital
30 does, 1 buck, 5.0% adult death loss, $2.00/lb for
kids, 170% kid group, $43.79 feed costs, 20% doe
replacement, 33% buck replacement, 5 acres
Change $2/lb— $1.70/lb 130%
>$40
start
for kids kid
feed
sold
crop
costs
Returns $4,381- $3,436 $2,097 $897
With
Good
Mgt
------------ Change Change Change
300
-$945
-$1339
-$1200
does@
$43,810
Factors Affecting % Kid Crop
• Genetics
• Pregnancy rate—no reprod diseases
• Health and Management
---Limit parasite problems
---Limit predator losses
---Other diseases
Goat Health Management
• Goats are naturally healthy; your
management can have either good or bad
effects on them; keep records of problems
• Cull poor ―doers‖
• Minimize stress
• Provide adequate nutrition
• Avoid extensive parasitism, predation
• Conduct vaccination program (CDT)
• Isolate new animals coming into herd
• Provide a sound environment—may need
shade and wind breaks; guard animal(s)
Problems—food and feeding
Less Problem—food and feeding
Goats need
better fence
than sheep
when
grazing
Does: Parasite Control
• Haemonchosis
– Major killer of sheep
and goats.
– Major problems with
drug resistance.
– Treat based on
anemia rather then
based on the
calendar in breeding
herd.
– Do fecal egg counts
Budget for Goats—Return to
Land, Labor, and capital
30 does, 1 buck, 5.0% adult death loss, $2.00/lb for
kids, 170% kid group, $43.79 feed costs, 20% doe
replacement, 33% buck replacement, 5 acres
Change $2/lb— $1.70/lb 130%
>$40
start
for kids kid
feed
sold
crop
costs
Returns $4,381- $3,436 $2,097 $897
With
Good
Mgt
------------ Change Change Change
300
-$945
-$1339
-$1200
does@
$43,810
Feeding Preferences
Forb
Goats
Sheep
Forbs
Browse
Cattle
Grass
Grass
Goats &
sheep can
decrease
weeds
Must
plan
foragequantity
and
quality
Nutrition
Feed Inventory Concerns—
major reason to review
• Quantity—not enough forage (need
forages or fiber if drought or overstocked)
• Quality—must consider if energy, protein,
fiber, or minerals
change
Plan for Year Round Forage
Tips for Economical Feeding of
Goats/Sheep
• Match kidding season to pasture
production
• Do not waste hay
• Feed grain or supplemental hay only when
required
• Maximize pasture or crop residues
• Feed commodities if available & less
expensive
• Consider co-species grazing to utilize
weeds/brush
Budget for Goats—Return to
Land, Labor, and capital
30 does, 1 buck, 5.0% adult death loss, $2.00/lb for
kids, 170% kid group, $43.79 feed costs, 20% doe
replacement, 33% buck replacement, 5 acres
Change $2/lb— $1.70/lb 130%
>$40
start
for kids kid
feed
sold
crop
costs
Returns $4,381- $3,436 $2,097 $897
With
Good
Mgt
------------ Change Change Change
300
-$945
-$1339
-$1200
does@
$43,810
Questions??
Goats
Require
Good & Timely
Management--Prevention &
Planning
Is Always The Key
Summary:
Value-Added Marketing
•
•
•
•
Can raise all your livestock or can buy some
Degree of marketing can vary—all or some
Takes a lot of time—best to have back-up
Find your niche—not against
Wal-Mart but have a market
• Know regulations
• Don’t invest your last dollar—
May take more to get started
• Consult with others
Value-Added Considerations:
Others May Comment
• Need a niche but enough volume
• Passionate
• Tough business if too small or start too
large
• Feasibility study; Market research
• Business plan
• Consider time and risks
• Don’t think that you are
smarter than others
Value-Added-Other Considerations
• Government regulations
• Consider delays and hidden costs
• Marketing is key
---when (start, frequency of deliveries)
---who
---what
---where
----to whom
---how (on farm, farmers market, internet,
contract to store/chain, tourist stop—where
is your niche? How differ from WalMart?)
Other Considerations/Specific
Obstacles for Value-Added
• Marketing plan needs to be specific
• Use reputable, reliable, dependable
people
• Expect costs to exceed estimates
• Allow for breakdowns
• Allow time to learn to make products
• Get OJT if possible
• Get feedback from objective taste panel
on products (not just family)
Your Niche With Value-Added—
Don’t Compete With Wal-Mart
• Legal implications of organic, natural, BST-free milk,
pasture based, Ozark, or Missouri products
• What makes your products more valuable than other
similar products; you cannot sell for Wal-Mart prices
----advertising, marketing, appearance (labels),
convenience, more upscale
----don’t ever get too many products to do a good job
• Food safety is critical—not bad press
• Expand slowly with products and varieties that you
can satisfactorily process—both time-wise and product