Key Factors in Profitable Sheep Production DGM:ISU Current Prices Sheep Numbers are not increasing. Why ???? DGM:ISU Basic Economics Profit = Income - Expenses Increase Income or Decrease Expenses or DO BOTH DGM:ISU Critical Records for Every Operation Total Number Born Total Number Weaned % Lamb Survival % Open Ewes % Ewe Death Loss DGM:ISU Critical Records for Every Operation Feed Use Feed Cost Until one keeps track, amount is hard to believe. DGM:ISU Ewe Cash Costs, Pipestone 2002 2003 2004 2005 Aver. Feed & Pasture 39.10 42.84 45.38 48.84 44.04 Other Oper. a 27.38 36.91 34.65 47.34 36.57 Total Cash 66.48 79.75 80.03 96.18 80.61 Utilities, Fuel, Vet, Trucking, Feed processing, Hired labor, Shearing, Maintenance and repairs, Bedding. 10 steps to reduce feed costs 1. Control feed waste good bunks feed what ewes need not what ewes want limit access to big packages 10 steps to reduce feed costs 2. Use feed substitution/byproducts purchase feeds on nutrient cost examples: corn gluten feed corn hay qualities DGM:ISU 10 steps to reduce feed costs 3. Separate management groups ewe lambs vs mature ewes singles vs twins thin vs average vs fat DGM:ISU 10 steps to reduce feed costs 4. Mineral cost and intake Read label know intake level TM salt vs mineral cooperative purchasing DGM:ISU 10 steps to reduce feed costs 5. Sample hays supplement as needed example: protein blocks “They might need it” DGM:ISU 10 steps to reduce feed costs 6. Pelleted protein vs. soybean meal protein supplement @ >$300/ton SBM @$220/ton with more protein per pound DGM:ISU 7. Improved grazing management Year 1987 1988 1989 1990 1991 1992 Average SERP Pasture 3.1 4.4 3.6 9.1 3.5 3.7 4.6 Drylot 17.1 17.0 17.1 18.1 18.0 19.6 17.8 DGM:ISU Ewe Grazing Days Per Acre Peter Woods, WI 3 Year High Averagea Year BFT: KyBG 1429 BFT: SBG 1474 BFT: OG 1446 Cost $40.00/year a 2 of 3 years were drought 1973 2122 2028 DGM:ISU 10 steps to reduce feed costs 8. Grazing crop residues Grazing Season Feed Length Savings 8 months $7.92 10 months $15.84 12 months $23.76 DGM:ISU 10 steps to reduce feed costs 9. Stock piled grazing ewes can winter outdoors? additional benefits flock health reduced labor 10 steps to reduce feed costs 10. Change production systems Late lambing Nutrient requirements and forage quality match DGM:IS U Increasing Income Charles Parker Challenge 365 pounds of lamb marketed/ewe/year Industry is at 50% or less HOW ??? DGM:ISU Increasing Production Breeding season management when to breed flushing teasers ewe age groups Increasing Production Genetic improvement NSIP accurate maternal selection Lifetime production not S vs Tw vs Tr Pounds weaned is the trait Increasing Production Prolific genetics Choose the lambing rate you want 1.5 to 4.0 possible DGM:ISU Increasing Production Crossbreeding Simple to complex increase production 15-50 % over straight breds DGM:ISU DGM:ISU Increasing Production Death loss from birth to weaning is the greatest inefficiency in the sheep industry. Increasing Production Increased growth use terminal sires Heavier market weights use terminal sires feed them longer Management Inputs Do not have a Cash Cost Never substitute cash inputs for management Poor Management Inputs Flushing fat ewes Vaccinating for a disease because your neighbor does it. Monthly deworming vs a strategic approach DGM:ISU Poor Management Examples Feeding oats when corn is 50% cheaper Feeding dairy quality hay to minimize waste Giving up .2-.5 lambs/ewe/year due to breeding season and death loss DGM:ISU Getting/Being Profitable Increase output without increasing inputs Increase production via: Management Genetics Nutrition Reproduction DGM:ISU Getting/Being Profitable Decrease Production Costs Step 1: Know where your at Step 2: Develop plan to get where you want to be Profitable Sheep Production Must be “the” goal Sound Management Cost control Use technology DGM:ISU