Projections for Planning Purposes Only -- Not to be Used without Updating
2015 Estimated Costs and Returns per Animal Unit
Commercial Sheep, Wool/Lamb Production, 5 Head per AU - 500 Ewes
West Central Extension District - 7
Animal Units (AU)
Breeding Females
REVENUE
Lambs - Wether
Lambs - Ewe
Cull Ewes
Cull Rams
Wool, 20.6-22.0 Mic
Total Revenue
100
500
Head
2.250
1.250
1.000
0.050
5.000
VARIABLE COSTS
Production Costs
Miscellaneous
Supplies
Predator Control - Sheep
Brush Control
PRF Rainfall Ins
Tag Sheep
Shear Sheep
Marketing Expense
Feed
Corn - Sheeep and Goat
Cotton Seed - Sheep and Goat
Mineral - Sheep
Salt - Sheep
Vet. Medicine
Overeat/Tetnus
Soremouth
Cylence-Fly and Lice control
Fendendazole drench
Fuel
Lube (As a % of fuel)
Repairs
Labor
Utilities
Interest on Credit Line
Total Variable Costs
Quantity
Per Head
0.75
0.75
1.35
1.70
8.00
262.5
4406
4143.5
Quantity
Units
CWT
CWT
CWT
CWT
Pound
Units
$/Unit
$183.95
$183.95
$71.45
$75.00
$2.00
$/Unit
Total
$310.42
$172.45
$96.46
$6.38
$80.00
$665.70
Enterprise
Total
$155,207.81
$86,226.56
$48,228.75
$3,187.50
$40,000.00
$332,850.63
Total
Enterprise
Total
5
5
30
30
5
5
1.00
Head
Head
Acre
Acre
Head
Head
AU
$3.00
$2.10
$1.00
$0.85
$1.90
$3.25
$20.81
$15.00
$10.50
$30.00
$25.50
$9.50
$16.25
$20.81
$7,500.00
$5,250.00
$15,000.00
$12,750.00
$4,750.00
$8,125.00
$2,081.45
135
300
54
54
Pound
Pound
Pound
Pound
$0.09
$0.14
$0.52
$0.11
$11.81
$41.25
$28.08
$5.94
$5,906.25
$20,625.00
$14,040.00
$2,970.00
5
5
23.4
46
1.0
10.0%
1
0.60
1.00
Dose
Dose
ML
ml
AU
Percent
AU
Hours
AU
$0.27
$0.14
$0.04
$0.10
$56.25
$56.25
$52.32
$15.00
$24.00
4.00%
$1.35
$0.70
$0.94
$4.60
$56.25
$5.63
$52.32
$9.00
$24.00
$15.06
$384.49
$675.00
$350.00
$468.00
$2,300.00
$28,125.00
$2,812.50
$26,162.47
$4,500.00
$12,000.00
$7,527.90
$183,918.57
$281.21
CWT
$148,932.06
Planned Returns Above Variable Costs:
Average Lamb Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1
Depreciation - Livestock
1
Equipment Investment
$2,258.88
Pasture Cost
30
Total Fixed Costs
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Lamb Breakeven Price to Cover Total Costs
$76.82
Units
AU
AU
dollars
Acres
$/Unit
$57.50
$15.00
3.75%
$6.00
$205.28
Total
$57.50
$15.00
$84.71
$180.00
$337.21
$721.70
($56.00)
CWT
Enterprise
Total
$28,750.89
$7,500.00
$42,354.06
$90,000.00
$168,604.95
$352,523.51
($19,672.89)
Sensitivity Analysis for Example
Example Weaning Percent
110%
100%
90%
80%
70%
Example
Gross
Sales per
AU
$773.01
$719.35
$665.70
$612.05
$558.40
Pounds
Produced
per AU
4464
4435
4406
4377
4348
Example Breakeven
Lamb Pay Weight to
Cover Total Cost
65
73
84
98
117
Example Male Lamb Price
Example Female Lamb Price
Example Weighted Average Lamb Price ($/cwt)
Example Average Break Even
Price to Cover Total Cost
$167.96
$184.75
$205.28
$230.94
$263.93
$183.95
$183.95
$183.95
Developed by Bill Thompson, Associate Professor and Extension Economist, Texas A&M AgriLife Extension Service.
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.