“Sheep Production in An Era of
High Feed Cost”
2010
Indianhead Shepherd Clinic
Flock Management Goals
High ewe/lamb performance
ewe reproductive efficiency
genetics, nutrition and health
Lower unit cost of production
reduce feed cost – ewe flock
cost of gain – lamb performance
Lower labor requirement
facilities and feeding management
more mechanical applications
Risk/marketing management
enter marketing agreements
utilize wool LDP and LRP-Lamb
Unit Cost of Production (UCOP)
• Simply, the cost of producing a unit of lamb
or wool.
UCOP =
Input cost
Animal production
Input Cost
• Ewe Feed
Stored forage + Grain + Pasture
• Lamb Feed
Grain + Protein supplement pellet
(minerals, vitamins, coccidiastat)
Feed Cost 2006 vs 2009
Forages
Grains
Pasture
Mineral
Protein
Co-products
25%
100%
25%
50%
100%
100%
higher
higher
higher
higher
higher
higher
Impact of Higher Feed Cost
• Ewe flock
$10-20 higher per ewe
• Lamb finishing
$12-15 higher per lamb
Reduce Ewe Flock Feed Cost
Reduce feed waste – often > 20% of forage
•
•
•
•
•
Use fenceline bunk feeding systems
Limit access to large round bales
Select well designed feeders
Forage storage
Meet nutrient requirements
Reduce the pounds of feed offered
Use more nutrient dense ingredients
– energy and protein
– limited forage diets
– Compare feeds on nutrient cost basis
Maximize use of non-stored feed resources
Pasture and crop residue
(Non-stored feed days)
EWE NUTRIENT REQUIREMENTS
154 lb ewe
(NRC, 1985)
Stage of Production DM Intake TDN
CP
Maintenance
2.6 (2%)
1.5
.25
Flushing
4.0
2.3
.36
Early Gest
3.1
1.7
.29
Late Gest.
4.0 (3%)
2.3
.42
Lactation (single)
5.5
3.6
.73
Lactation (twin)
6.2 (4%)
4.0
.92
Reduce Ewe Flock Feed Cost
Reduce feed waste – often > 20% of forage
•
•
•
•
•
Use fenceline bunk feeding systems
Limit access to large round bales
Select well designed feeders
Forage storage
Meet nutrient requirements
Reduce the pounds of feed offered
• Use more nutrient dense formulations
– energy and protein
– limited forage (coproducts)
– Compare feeds on nutrient cost basis
Maximize use of non-stored feed resources
Pasture and crop residue
(Non-stored feed days)
Soybean Hulls
Primary nutrient – energy (TDN)
1 lb of hulls can replace .9 lb corn
1 lb of hulls can replace 1.4 lb hay
**50% substitution of forage is common
Soybean Hulls – SDSU
 Most flexible feed ingredient available to sheep flocks.
serve as a forage or energy feed
 Nutrient profile is favorable for all sheep diets
low starch - reduces acidosis potential
high calcium
high palatability



2002 - fed 5 lb of pelleted soyhulls + 1 lb of long
stemmed hay
2004 – finished lambs with sole energy source from
pelleted soyhulls
2005 – offered pelleted hulls free-choice to mature
ewes (consumed at 3% of BW)
DDGS
Primary nutrients: energy or protein
High fiber and low starch feed ingredient
Energy equal to corn
Crude protein at 60% of SBM
Limit to 25% of diet or 2 lb per ewe
Cost of crude protein (CP) or energy (TDN)
Cost, $/lb of
Item
%CP
%TDN
$/ton
$/lb
CP
TDN
Alf
18
58
80
0.040
.22
.069
Brome
10
50
60
0.030
.30
.060
SH
12
77
105
0.053
.44
.069
SBM
49
88
320
0.168
.34
.19
DDGS
29
90
110
0.055
.19
.061
Corn
9
88
115
0.058
.64
.066
Calculation: alf CP= 0.04/.18 = .22 $/lb ; alf TDN =0.4/.58=0.069 $/lb
Ewe Flock Feed Cost
Reduce feed waste – often > 20% of forage
•
•
•
•
•
Use fenceline bunk feeding systems
Limit access to large round bales
Select well designed feeders
Forage storage
Meet nutrient requirements
Reduce the pounds of feed offered
• Use more nutrient dense formulations
– energy and protein
– limited forage (coproducts)
– Compare feeds on nutrient cost basis
Maximize use of non-stored feed resources
Pasture and crop residue
(Non-stored feed days)
Pasture management affects ewe carrying
capacity
Unit Cost of Production (UCOP)
• Simply, the cost of producing a unit of lamb
or wool.
UCOP =
Input cost
Animal production
Animal Production
• Ewe reproductive efficiency
• Lamb growth efficiency
Ewe Reproductive Efficiency
defined by pounds of lamb weaned per ewe exposed
Conception rates > 93%
Lamb crop weaned > 140 - 170%
 Sound nutrition and health management
they collectively support reproduction.
 Lamb survival and growth performance
 Utilize “Hybrid Vigor”
Lamb Growth Efficiency
-ADG
-Feed efficiency (F:G)
-Cost of gain
1.2
AVERAGE DAILY GAIN
Daily Gain (lb)
1
0.8
Large Frame
0.6
0.4
Small Frame
0.2
0
0
20
40
60
80 100 120 130 140 150
Live Weight (lb)
Cost of Gain- An Economic
Expression For Feed Efficiency
Expression 1
= cents/pound of gain
Expression 2
= (feed cost(cents/lb)) * (daily feed intake, lb)
average daily gain (ADG), lb
Expression 3
= feed cost(cents/lb) * feed efficiency (F/G)
Key Variables in Cost of Gain
• Feed Costs
– Price ingredients on nutrient basis (E, CP)
– For every 1% CP + $10-15 per ton
– Nutritionally sound and palatable
• Feed Efficiency (F:G)
– Ad lib feed intake at 4% of BW
– Growth performance (ADG)
**CG equally affected by $15/ton = 0.1 ADG
YG 2/3 YG 2/3
1.20
Live Price
CG 09 Lg
Frame
CG 07 Lg
Frame
1.00
0.80
Profit
0.60
0.40
Large Frame
0.20
Live Weight
2007 SDSU She ep S ale
Educati on Pr og ra m
160
150
140
125
120
110
100
90
80
70
60
50
0.00
0
Cost of Gain/Value per lb
LAMB PROFIT POTENTIAL
Feed Cost
Lamb Growth EfficiencySummary
Optimum lamb finished weights 5-10 lb
lighter than 2006 due to higher CG.
Feed efficiency (F:G) is the profit generator.
Growth performance (ADG) is the key
variable in F:G.
Summary
• Higher feed cost pressures the profit
potential for sheep producers.
• Reduce feed waste.
• Use more nutrient dense ingredients.
• Maximize non-stored feed days.
• Higher ewe reproductive and lamb
growth efficiencies can lower the
impact of high feed cost.
• Thankful for a strong lamb market!!