Small-Scale Livestock Production
This program was funded by the USDA National
Institute for Food and Agriculture (NIFA) Beginning
Farmer and Rancher Development Program (BFRDP)
under award #2009-49400-05871.
There are unique
production and
marketing
opportunities
available to
smaller-scale
sheep and goat
producers;
however, before
you get started,
you need to
consider…
New marketing opportunities
Environmental stewardship
Production practices
Safe practices
Business licensing
Zoning restrictions
New marketing opportunities
• Leveraging your
herd
management
• Overview of
certification
programs
• Evaluating
program cost &
benefits
Certification and Marketing
• Consumers are interested in how livestock are
raised, handled & processed
• Certification may allow you to secure a
premium for product or expand market reach
– Such as specialty food stores and restaurants that
require that their animal products be sourced
from humanely raised animals
• How you manage your animals (your
stewardship practices) can influence your
marketing opportunities
Animal Welfare Certification
Programs
Animal
Welfare
Approved
USDA
Organic
American
Humane
Certified
Food
Alliance
Certified
Naturally
Grown
HFAC
Certified
Humane
• Distinguish livestock products as coming
from humanely treated animals
• Certified production systems often are more
expensive than non-certified
• Be sure to keep in mind the production costs
and marketing benefits of following a
certification program
Possible Program Specifications
for Herd Management
Outdoor access
Indoor air quality
& ammonia levels
Castration, tail
docking on sheep,
dehorning, ear
marking
Minimum bedded
space; floor space
Transport time for
slaughter
Evaluating Certification Programs
Goals
Certification
Fees
Time Commitment
Production Costs
• Make sure program goals align with yours
• Understand the certification process & animals
covered
• Understand the program’s fee structure
• Calculate the time required to achieve and
maintain certification
• Estimate how your production costs may
change under certification
Evaluating Certification Benefits
Access to new
markets that seek
certified products
Possibility of
charging higher
prices for products
Access to marketing
materials and support
from certifying
organization
Ability to connect
with customers
based on their
values
Certifier may help
grower improve safe
production and
handling techniques
Evaluating Certification Costs
More pasture area may be required for each animal enrolled in the
certification program  You may need more land
Changes to animal health care  You may need to remove from
your program sick animals that you vaccinate or medically treat
Changes to animal feeding  You may need to use feed from
specific sources or follow certain ingredient guidelines
Changes to animal housing  You may need to build additional
facilities to allow more space per animal
More detailed record-keeping on animal health and raising  You
may need to allow more time or hire someone to do this
Linking Production & Marketing
Decisions
• Choose a breed that is appropriate for the markets
you will serve (meat, fleece, milk)
• If you are producing meat animals, do you have a
slaughter and processing facility that will work
with your level of production and cuts you desire?
• Know who will buy your product before you
produce it
• Take a course in Good Agricultural Practices (GAPs)
– To understand how to prevent or reduce contamination of your
products throughout production, processing and sales
– Obtaining GAPs certification is also a good marketing strategy
Environmental stewardship
To be a good neighbor
and food producer:
• Manage manure
properly
• Monitor storm water
runoff
• Dispose of mortalities
safely
Good Stewardship Leads to Better
Business Management
Minimizing:
•Animal and
manure odors
•Dust
•Insects &
predators
Using best
management
practices to:
•Dispose of
dead animals
•Mitigate runoff
Leads to a:
•Cleaner
production
operation
•Healthier herd
•Good neighbor
relationships
Manage Manure Properly
Control unpleasant odors and dust
Know the nutrient content of your manure, apply
based on nutrient/fertilizer value, and keep records
Spread manure away from wells, springs, and
watercourses
When possible, till in fall-applied manure
Keep piles of manure, spent bedding and spoiled feed
away from watercourses
Monitor Storm Water Runoff
Conduct annual tests for bacteria and nitrates in well
water
Locate livestock operations away from wellheads;
protect wellheads in pastures (consult local/state
wellhead protection laws)
Use buffers and setbacks to protect surface waters
from direct contact with animal waste and process
waste water
Divert clean water (run-on) around production and
waste storage areas using berms, ditches grassy
swales, roof gutters
Dispose of Dead Animals Safely
Abide by state/local laws
Render within 48 hours, where service is available (dead
animals used to create a new, usable product)
Compost in pile or bin, at high temperature (130o-150oF)
Bury on farm, at least 300 feet away from a watercourse
and 3-ft deep, above the wet season high watertable
Bury/dispose at a licensed landfill
Production practices
• Maintaining a
healthy herd
• Managing sick
animals
Managing for Healthy Animals
Includes Providing…
• Housing that is clean, ventilated and predator proof
• Adequate enclosure and fence height, especially for
goats
• Access to clean water at all times
• Nutritionally complete food, including forage, salt &
minerals
• Appropriate parasite control
• Protection from extreme temperatures, including
water heaters for winter, and shade during hot
months
As a Good Herd Manager, You Should:
Observe your animals and learn what behaviors are normal, so you
recognize unusual behaviors indicating a possible health issue
Check your animals regularly-twice daily is best for monitoring
health and behavior
Become familiar with common small ruminant health issues and
diseases
For the breed you are raising, know the lambing/kidding age and
years of reproductive capability
As a Good Herd Manager, You Should:
Meet the nutritional needs of your animals at their current state
(during gestation, lactation, maintenance, etc.)
Provide some mental stimulation and an enriching environment
for your animals
Keep breeding records, as well as animal health records
Have a plan for surplus animals (beyond your breeding, meat or
milk animal needs since the extra feed is a cost to you)
Taking Care of Sick Animals
Work with a local veterinarian with small ruminant experience (if you
live in a remote area, you may need to learn basic care practices)
Have a herd health plan & vaccination schedule
Develop a quarantine procedure for sick animals; watch for news
alerts from your state veterinarian’s office
In case of disease outbreak, have a plan for cleaning and disinfecting
vehicles & equipment, and protecting your employees
Develop a disposal plan for dead animals
Keep detailed records of your animals’ health
Safe practices
•
•
•
Worker safety
Good
Agricultural
Practices (GAPs)
Milk and meat
products
Safe Handling: Worker Safety
• Sheep and goats can carry organisms that may
cause infection and disease in humans
When handling animals or their wastes, wear
protective clothing, wash your hands afterward, &
treat all cuts and abrasions immediately
• Both species can jump, bite, kick or run into
their handlers, causing injury
Learn proper handling techniques and never turn
your back on animals in a pen
Be aware of potential injuries from contact with
gates, chutes, wire pens, and electrical sockets
Safe Handling: Good Agricultural
Practices (GAPs)
• On mixed crop/livestock farms, keep livestock out
of food production and handling areas to prevent
contamination of food products
• Ensure that animal wastes do not directly or
indirectly contaminate drinking or irrigation water
• If you produce compost from your livestock
manure:
1. keep records of composting dates and production
process,
2. separate raw and finished compost, and
3. store compost on high ground, away from fields and
water sources to prevent run-on
Safe Handling on Farms with Crop
& Livestock: GAPs
• Wash and sanitize vehicles and equipment
used for handling or transporting livestock
before transporting food for human
consumption
• Make sure workers change clothes and wash
their hands after handling livestock and
before handling food crops
Safe Handling of Milk and Milk
Products
• Refrigeration is most important factor in
maintaining safety of milk (Grade A milk must
be maintained at 45 °F or below), as well as
butter, cream, whipped topping, sour cream,
yogurt, cheeses, etc.
• Temperatures must be maintained through
distribution, delivery and storage
• Note that safe refrigerator storage times differ
depending on the product, and only butter, ice
cream and pasteurized fresh whole or skimmed
milk may be frozen
Safe Handling of Meats
• Remember to have quality control over your
product from harvest through processing,
storage and distribution
• How you handle the product affects:
– how safe it is for your consumers
– your product’s quality
– your product’s shelf life
Business licensing
Which licenses you need
depends on:
– Whether you are selling milk
or meat
– Where you plan to sell your
product
Getting Permission to do Business
• County, municipal & Homeowners Association or
Neighborhood/Unincorporated Community Covenants
• Business registration (typically from your state’s
Secretary of State, although some cities & counties also
require business registration)
• IRS Employer Identification Number (EIN, if you have
employees)
• State taxes (sales tax, income tax, workers’
compensation, unemployment insurance)
• City/County sales tax license
• Business licenses (depending on your sales outlet and
products(s) offered for sale)
To check on your state’s tax and licensing requirements:
http://www.sba.gov/content/learn-about-your-state-and-local-tax-obligations
Licensing for Milk Sales
• Federal regulations define milk and milk
products by their ingredients.
– This is important for grading and labeling, and for
knowing which license you need for your business.
• For goat and sheep milk production and sales,
all states have different licensing requirements
and permit costs.
• In many states, raw milk sales are illegal and all
milk & milk products sold must be pasteurized.
– Contact your state department of public health to
learn about regulations in your state
– Educate yourself on the food safety issues
surrounding raw milk production
Regulations for Pasteurized Milk
Grading
• Use FDA/USDA guidelines
Labeling
• All bottles, containers & packages with milk or milk
products must be labeled, indicating the common name
of the hooved animal. See FDA guidelines.
Refrigerating
• Store between 33°F and 41°F
Transporting
• Keep clean and sanitary
• Maintain refrigeration
Licensing for Retail & Wholesale
Meat Sales
To sell packaged
meat direct to the
consumer
• Animals must slaughtered & processed
under continuous inspection (either
Federal or State inspection systems)1
To sell packaged
meat to retail
buyers, wholesale
or farmers’ market
• Must use Federal or State inspected
facility
• Required: Labeling – i.e., Net Weight
using Standard Weights and Measures2
• Optional: Grading
1- Only Federally inspected and certain state facilities are approved for out of-state sales.
2- Your processor can help guide you through the packaging and labeling process.
Custom Exemption to USDA Slaughter
and Processing Requirements, for
Direct Sales
Sold before
slaughter to new
owner
AND
Labeled
NOT FOR SALE
OR
Processed for
Processed for nonhousehold use AND paying guests
One More Thing About Meat and
Milk Sales…
Many farmers’ markets
require vendors to carry
their own liability
insurance policy for
product sales
For more info on licensing and regulations,
check with your local Extension office
or state Department of Agriculture
Zoning restrictions
• Zoning is a restriction on
the way land can be
used
• Zoning regulations may
include where you can
(or can’t) raise animals
County & Municipal Zoning
Regulations
• Present your plans early―your local planning
and zoning board may have ideas to make
your business more viable or to protect your
resource base
• Once you are in operation, remember to
consult local officials before making any
changes to your business (to structures or to
products you sell)
County & Municipal Zoning
Regulations
• Larger livestock (including sheep and
goats) typically prohibited in nonagriculturally zoned county &
municipal districts
• Your Homeowners’ Association may
also have restrictions on livestock
• Many counties & municipalities allow
private ownership/production of a
small number of sheep and goats in
agricultural districts. However,
animal slaughter may be prohibited.
Always verify the
types & numbers
of animals
legally allowed
on your property
before starting
your business
Regulations in districts where commercial
livestock production is permitted may
include:
Commercial or
agricultural
permit
requirements
Limited number
of animals
allowed;
pasture
specifications
Permit fee often
required
Size and type of
animal
structures;
location on your
property
Standards for
odor, noise, dust
Limited or no
allowable
slaughter on
premises
Building a Profitable Business
Involves
Building
Customers
Building
Community
Building Business
Processes
through
through
through
Marketing
Good resource
& animal
stewardship
Safe handling
practices
Good
neighbor
relations
Research &
compliance
with
regulations
and
certifications
that lead to a sustainable business!
Questions?
Acknowledgements
• Blake Angelo, Colorado State University Extension, Urban
Agriculture
• Thomas Bass, Montana State University Extension, Livestock
Environment
• Dr. Marisa Bunning, CSU Food Science and Human Nutrition
• Emily Lockard, CSU Extension, Livestock
• Dea Sloan, CSU Agricultural and Resource Economics
• Martha Sullins, CSU Extension, Agriculture and Business
Management
• Dr. Dawn Thilmany, CSU Agricultural and Resource Economics
• Heather Watts, CSU Agricultural and Resource Economics
• Wendy White, Colorado Department of Agriculture
• David Weiss, CSU Agricultural and Resource Economics
Photo Credits – flickr.com
All photos used under the Creative Commons License
A Roger Davies
4670542941
BryanAlexander
3348954673
ynskjen
423389418
Kkirugi
4923613664