Profitable Sheep
Production
in the Biofuels Era
Dr. Dan Morrical
Iowa State University
515-294-2904
morrical@iastate.edu
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Basic Economics
Profit = Income - Expenses
Increase Income
or
Decrease Expenses
or
DO BOTH
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1. Critical Records
Total Number Born
Total Number Weaned
% Lamb Survival
% Open Ewes
% Ewe Death Loss
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Critical Records
for Every Operation
Feed Use
Feed Cost
Until one keeps track,
amount is hard to believe.
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Ewe Cash Costs, Pipestone
2002
2003
2004
2005
Aver.
aUtilities,
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
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
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10 steps to reduce feed costs
3. Separate management groups
ewe lambs vs mature ewes
singles vs twins
thin vs average vs fat
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10 steps to reduce feed costs
4. Mineral cost and intake
Read label
know intake level
TM salt vs mineral
cooperative purchasing
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10 steps to reduce feed costs
5. Sample hays
supplement as needed
example: protein blocks
“They might need it”
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Iowa Hay Quality Survey
Hay type Crude protein
Grass
Ave.
1st cut 11.6
(6-20)
all others
15.2
Mixed
1st
13.9
2nd
16.8
3rd
18.3
Legumes
1st
16.9
2nd
18.3
3rd
19.9
TDN
Range
Ave.
55.7
(12-19.7) 61.8
Range
(47-67)
(57-70)
(8-22)
(10-22)
(11-23)
56.1
59.6
62.4
(41-69)
(47-70)
(49-73)
(10-22)
(14-22)
(13-23)
56.7
57.7
59.4
(48-69)
(45-68)
(47-70)
10 steps to reduce feed costs
6. Pelleted protein vs. soybean meal
protein supplement @ >$450/ton
SBM @$350/ton with
more protein per pound
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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
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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
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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
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10 steps to reduce feed costs
9. Fetal Scanning
groups ewes by stage of production
group ewes by level of production
cull open ewes
10 steps to reduce feed costs
10. Change production systems
Late lambing
Nutrient requirements and
forage quality match
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U
3. Increasing Income
Charles Parker Challenge
365 pounds of lamb marketed/ewe/year
Industry is at 50% or less
HOW ???
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Increasing Production
4. Breeding season management
when to breed
flushing
teasers
ewe age groups
Increasing Production
5. Genetic improvement NSIP etc.
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
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Increasing Production
6. Crossbreeding
Simple to complex
increase production
15-50 % over purebreds
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Increasing Production
9. Death loss from birth to weaning
is the greatest inefficiency in the
sheep industry.
Increasing Production
10. Increased growth
use terminal sires
11. Heavier market weights
use terminal sires
feed them longer
do not sell feeder lambs
Lamb Cost of Gain
Lambs feed conversion 6 to 1
Lamb feed costs $220 per ton
6 pounds of feed X $.11= $.66
Value of gain $1.50 +
Profit over feed cost $.84
30 pounds gain X .84 = $25.20/ lamb
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
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Poor Management Examples
 Offering protein tubs with alfalfa hay
 Feeding dairy quality hay to minimize waste
 Giving up .2-.5 lambs/ewe/year due to
breeding season and death loss
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Getting/Being Profitable
Increase output without increasing inputs
Increase production via:
Management
Genetics
Nutrition
Reproduction
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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
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