Projections for Planning Purposes Only -- Not to be Used without Updating
2016 Estimated Costs and Returns per Animal Unit
Hair Sheep, 5 Head per AU - 500 Ewes
Southwest Extension District - 10
Animal Units (AU)
Breeding Females
100
500
REVENUE
Lambs
Lambs
Cull Ewes
Total Revenue
VARIABLE COSTS
Production Costs
Miscellaneous
Predator Control
Trucking - Sheep and Goats
Parasite Monitoring
Marketing Expense
Feed
20% Protein Cube
10-10 Loose Mineral
Vet. Medicine
Clostridials S&G
Deworm S&G-Ivomec
Lice control - S&G
Repairs
Labor
Interest on Credit Line
Total Variable Costs
Animal Unit
Lamb
Quantity
Head
Per Head
2.330
0.80
1.220
0.80
1.100
1.10
284
405
121
Quantity
Units
CWT
CWT
CWT
$/Unit
$185.00
$185.00
$72.00
Total
$344.84
$180.56
$87.12
$612.52
Enterprise
Total
$34,484.00
$18,056.00
$8,712.00
$61,252.00
Units
$/Unit
Total
Enterprise
Total
65
1
1.375
1.00
Acre
AU
Head
AU
$0.25
$20.00
$2.00
$18.60
$16.25
$20.00
$2.75
$18.60
$1,625.00
$2,000.00
$275.00
$1,860.20
6.76
182.5
CWT
Pound
$18.70
$0.57
$126.41
$104.03
$12,641.20
$10,402.50
5
10
10
1
3.20
Dose
Dose
CWT
AU
Hours
$0.56
$0.46
$0.46
$35.21
$10.00
6.50%
$2.80
$4.60
$4.60
$35.21
$32.00
$16.53
$383.78
$280.00
$460.00
$460.00
$3,520.88
$3,200.00
$1,653.08
$38,377.87
$228.74
CWT
$22,874.13
Planned Returns Above Variable Costs:
Average Lamb Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1
Depreciation - Livestock
1
Equipment Investment
$139.13
Pasture Cost
1
Total Fixed Costs
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Lamb Breakeven Price to Cover Total Costs
$104.46
Units
AU
AU
dollars
Acres
$/Unit
$27.83
$119.21
6.50%
$225.00
$238.64
Total
$27.83
$119.21
$9.04
$225.00
$381.08
$764.86
($152.34)
CWT
Enterprise
Total
$2,782.70
$11,921.00
$904.38
$22,500.00
$38,108.07
$76,485.94
($15,233.94)
Sensitivity Analysis for Example
Example Weaning
Percent
113%
103%
93%
83%
73%
Example Gross
Sales per Animal
Unit
$725.51
$669.01
$612.52
$556.03
$499.53
Pounds
Produced
per AU
466
436
405
374
344
Example Breakeven
Lamb Pay Weight to
Cover Total Cost
81
90
103
120
144
Example Male Lamb Price
Example Female Lamb Price
Example Weighted Average Lamb Price ($/cwt)
Example Average Breakeven
Price to Cover Total Cost
$196.40
$215.47
$238.64
$267.39
$304.02
$185.00
$185.00
$185.00
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.