Projections for Planning Purposes Only -- Not to be Used without Updating
2015 Estimated Costs and Returns per Animal Unit
Hair Sheep, 5 Head per AU - 500 Ewe
Southwest Extension District - 10
Animal Units (AU)
Breeding Females
REVENUE
Lambs
Lambs
Cull Ewes
Total Revenue
100
500
Head
2.330
1.220
1.100
VARIABLE COSTS
Production Costs
Miscellaneous
Predator Control
Parasite Monitoring
Trucking - Sheep and Goats
Marketing Expense
Feed
10-10 Loose Mineral
20% Protein Cube
Vet. Medicine
Clostridials S&G
Deworm S&G-Ivomec
Lice control - S&G
Repairs
Labor
Interest on Credit Line
Total Variable Costs
Quantity
Per Head
0.80
0.80
1.10
284
405
121
Quantity
Units
CWT
CWT
CWT
$/Unit
$188.00
$188.00
$78.98
Total
$350.43
$183.49
$95.57
$629.49
Enterprise
Total
$175,216.00
$91,744.00
$47,784.00
$314,744.00
Units
$/Unit
Total
Enterprise
Total
65
1.375
1
1.00
Acre
Head
AU
AU
$0.25
$2.00
$20.00
$18.60
$16.25
$2.75
$20.00
$18.60
$8,125.00
$1,375.00
$10,000.00
$1,860.20
182.5
6.76
Pound
CWT
$0.36
$19.00
$65.70
$128.44
$32,850.00
$64,220.00
5
10
10
1
3.20
Dose
Dose
CWT
AU
Hours
$2.26
$0.74
$0.46
$35.21
$10.00
6.50%
$11.30
$7.40
$4.60
$35.21
$32.00
$21.58
$363.83
$5,650.00
$3,700.00
$2,300.00
$17,604.42
$16,000.00
$10,791.75
$174,476.37
$265.65
CWT
$140,267.63
Planned Returns Above Variable Costs:
Average Offspring Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1
Depreciation - Livestock
1
Equipment Investment
$278.27
Pasture Cost
1
Total Fixed Costs
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Offspring Breakeven Price to Cover Total Costs
$94.46
Units
AU
AU
dollars
Acres
$/Unit
$27.83
$120.41
6.50%
$225.00
$232.25
Total
$27.83
$120.41
$18.09
$225.00
$391.32
$755.16
($125.67)
CWT
Enterprise
Total
$13,913.48
$60,205.00
$9,043.76
$112,500.00
$195,662.24
$370,138.61
($55,394.61)
Sensitivity Analysis for Example
Example Weaning Percent
113%
103%
93%
83%
73%
Example
Gross Sales
per AU
$744.31
$686.90
$629.49
$572.08
$514.67
Pounds
Produced
per AU
466
436
405
374
344
Example Breakeven
Offspring Pay Weight
to Cover Total Cost
77
87
99
115
138
Example First Offspring Price
Example Second Offspring Price
Example Weighted Average Offspring Price ($/cwt)
Example Average Break Even
Price to Cover Total Cost
$191.14
$209.70
$232.25
$260.23
$295.88
$188.00
$188.00
$188.00
Developed by Rob Hogan, Associate Professor and Extension Economist, Texas A&M AgriLife Extension.
Information presented is prepared solely as a general guide and not intended to recognize or predict the costs and
returns from any one operation. Brand names are mentioned only as examples and imply no endorsement.