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.