Hair Sheep: Enhancing Farm Profitability

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Hair SheepEnhancing Farm Profitability

• Scott Jerrell
• Extension Agent, Agriculture
• Scott County, Virginia

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Locations Served by the SCHSA
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Marketing Opportunities

• Association is Driven by Volunteer Members
• Marketing Options
• Food City Partnership
• Hair Sheep Faire
• Custom Meat Processing
• Private Treaty / Livestock Markets

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Food City Partnership

• Association members asked for opportunity to
  market lamb in local grocery stores.
• A meeting was arranged with Food City
  representatives.
• Food City agreed to a 6 month trial period, and
  has purchased consistently for almost 3 years.
• Demand is extremely good, need more producers for
  consistent/steady supply.

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Food City Partnership

• Pay 3.20 per pound on weight of chilled carcass
  after harvest.
• Rewards good producers that provides quality
  animals with little waste.
• Harvest and packaging occurs at Bristol, VA and
  Greeneville, TN.

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Food City Partnership

• Demand for 10,000 head per year

Year Head Total Pounds Avg. Price Carcass Wt. Avg. Total Received
2005 1,729 90,545 3.00 52 271,635
2006 3,691 116,000 3.00 52 348,000
2007 4,213 226,983 3.00 54 680,949
2008 4,827 276,800 3.20 57 885,760
2009 4,250 242,257 3.20 57 775,222
TO DATE 18,710 952,585 - - 2,961,566
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Lamb Carcass Quality Evaluation
Value Determination Scott Jerrell, Extension Agent

• Yield Grade
• Grade 1 (highest quality) to Grade 5 (lowest
  quality)
• Largest factor affecting value of lamb carcass.
• Based on yield of boneless, closely trimmed
  retail cuts of meat from the leg, loin, rack
  (rib), and shoulder.
• External Fat Adjustment
• Rib eye (Loin) Area
• Leg Score
• Kidney, Pelvic, and Heart (KPH) Fat Percentage.

• Quality Grade
• Prime, Choice, Good, Utility
• Prime is highest, most desirable Choice is
  close second (less marbling)
• These grades are determined based on flank
  streaking, conformation (specifically leg
  conformation), maturity, kind and class,
  firmness, and finishing.

Yield Grade 1

• Carcass Maturity
• Maturity in lambs is determined by evaluating
  lean color and texture, rib bones and break
  joints.
• Carcasses are classified as lamb (young lamb or
  older lamb), yearling mutton and mutton.
• Lamb maturity carcasses have break joints on both
  shanks, slightly wide and moderately flat rib
  bones and a light red, fine textured lean.

• Carcass Weight
• Need to look at consistency and quality.
• Must be adequately finished with 0.1 to 0.2
  inches of external fat.
• Important to the quality of the meat insures
  against excessive drying of the carcass.
• Excessive fat leads to lowered quality and
  overall carcass weight due to trim losses.

Yield Grade 5
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Weekly Prices New Holland vs. Food City
Marketing Scenarios
New Holland Market ( 112.5 animal) 2009 average
price (11/03/2009) 1.24 112.5 - 6 Drift
105.75 105.75 animal 1.24 131.13 131.13
- 4.25 (Marketing Fee) 126.88 126.88 -
7.00 (Haul Fee) 119.88 119.88 / 112.5 live
wt. 1.07 / Food City Market (112.5
animal) 3.20 per pound chilled carcass 45
average dress weight 112.5 0.45 50.6
carcass 50.6 - 2 chilling loss 49.6 49.6
3.20/ 158.76 158.76 - 32.00 (Fees)
126.76 126.76 / 112.5 live wt. 1.13 /
Large vs. Small Lambs for Food City
100 animal 45 average dressing weight 100
0.45 45 carcass 45 -2 chilling loss 44
44 3.20 140.80 140.80 32.00
(Fees) 108.80
125 animal 45 average dressing weight 125
0.45 56.25 carcass 56 - 2 chilling loss
55 55 3.20 176.00 176.00 32.00
(Fees) 144.00
Feed Cost per Pound Gain
5 pounds feed 1 pound gain 265 / Ton 0.133
per pound 0.6625 per pound of gain 25 pounds
0.6625 16.56
35.20
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Market vs. Food City Comparison

• Year

• Incentive

• 2006
• 2007
• 2008
• 2009

• 0.20
• 0.18
• 0.21
• 0.17

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Economics of Sheep Production
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Variables

• Input Cost (Feed, Fertilizer, Seed, Fuel)
• Liability (Assumed and Actual)
• Animal Growth
• Environmental Conditions (Drought, Flooding)
• Reduces potential profits and increases stress.

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Coping with Variables

• Farm Smarter
• Shop Prices
• Minimize Losses
• Optimize Growth and Performance
• Maximize Profits

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Farm Smarter

• Soil Sample
• Simple way to determine exactly what fertilizer
  is needed.

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Farm Smarter

• Normal pasture fertilization rate 300 /A
  19-19-19 _at_ 1,000 per Ton 150/A
• Average Scott County pasture soil sample L
  Phosphorous, M Potassium would require 300
  8-24-24 at a cost of 800 per Ton 120/A
• TOTAL SAVINGS OF 30 PER ACRE

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Pasture Management

• Maximize manures

Sheep Sheep 6.21 T/A Max. application rate 6.21 T/A Max. application rate 6.21 T/A Max. application rate 6.21 T/A Max. application rate 6.21 T/A Max. application rate Nitrogen based Nitrogen based Nitrogen based
Nutrient per Ton Composition Value per Ton Value per Acre Nutrient Applied at Max Rate Availability Adjusted Nutrient Available Deficit or Surplus Purchased Fertilizer Cost
N 23 1.15 38.81 241.07 142.86 35 50.00 0.00 -
P 8 0.4 7.65 47.53 49.69 100 49.69 (35.06) 33.54
K 20 1 14.19 88.16 124.22 100 124.22 41.72 -
60.66 33.54
Annual manure production per AU 7.24 T.
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Pasture Management

• High Quality Grasses and Legumes
• Orchardgrass, Perennial Ryegrass, Fescue
• Clovers (Red, White, Crimson), S. Lespedeza, H.
  Vetch
• Rotational Grazing
• Even in drought, rotational grazing will extend
  grazing season.

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Shop Prices

• FEED
• 10.00 difference per ton can make you 1.20 in
  profits from feeder lambs.
• 10 lambs per acre increased profits of 12.00
  per acre.
• 40 lambs you get the picture.

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Minimize Losses

• Reduce unnecessary expenditures
• Open ewes, Extra Rams, Cull Lambs
• Optimum Gain for Minimum Price
• Pasture vs. Grain Finish or Combo
• Evaluate Marketing Season
• Re-evaluate Lambing Times

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Optimize Growth and Performance

• Creep Feeding Increase Weaning Weights by
  10-20
• Ionophores (ie/ Bovatec) Increase feed
  efficiency 3-5
• Feed Proper Feed, Minimize Waste
• Hand Feed vs. Self Feeder
• Minerals and Vitamins

Lamb Nutrition and Feeding, Dan Morrical, Iowa
State University, http//www.ans.iastate.edu/facu
lty/morrical/acc/sheep/lambfeeding.pdf
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Maximize Profits

• Know your costs of gain.
• Figure feed costs on per pound of gain, not per
  pound of feed.
• Look for cheapest protein and energy sources.
• Analyze cheaper ways to achieve gain.

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Scrutinizing Feed Costs

• Evaluate per Unit Cost
• Per pound of nutrient more closely estimates
  actual costs when comparing different feeds.

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Feeds for Sheep

• Protein

• Energy

• Made up of complex combinations of amino acids
  and are essential for animal growth, production
  and reproduction.

• A nutrient essential for maintenance, growth,
  production and reproduction. Energy is required
  in larger amounts than any other nutrient except
  water, and is often the limiting factor in
  livestock production.

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Protein Feeds
Dry Matter TDN NEm Mcal/lb NEg Mcal/lb CP Fat Ca, DM P, DM
Protein feeds Protein feeds Protein feeds Protein feeds Protein feeds Protein feeds Protein feeds Protein feeds Protein feeds
Soybean meal 44 89 84 0.94 0.64 49.9 1.6 0.4 0.71
Whole soybean, roasted 90 94 1.07 0.75 42.8 18.8 0.27 0.65
Cottonseed meal 92 75 0.81 0.53 46.1 3.2 0.2 1.16
Whole cottonseed 92 95 1.08 0.76 24.4 17.5 0.17 0.62
Poultry litter 78 60 0.99 0.59 28 ND 2.3 2
Fish meal 90 72 0.75 0.47 66 8 6.4 3.6
TDN total digestible nutrients NEm net
energy for maintenance NEg net energy for
gain CP crude protein Ca calcium P
phosphorous
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Energy Feeds
Energy Feeds Dry Matter TDN NEm Mcal/lb NEg Mcal/lb CP Fat Ca, DM P, DM
Grains Grains Grains Grains Grains Grains Grains Grains Grains
Corn, 56 lb/bu 87 88 0.91 0.61 9.8 4.3 0.03 0.31
Corn, cracked 88 90 1.02 0.7 9.8 4.1 0.03 0.32
Barley, heavy 88 74 0.94 0.64 13.2 2.2 0.05 0.35
Oats 91 73 0.79 0.5 13.6 4.9 0.07 0.3
Milo 90 85 0.95 0.64 11.3 1.9 0.05 0.34
Wheat 89 76 0.83 0.54 11.6 3.1 0.07 0.33
High energy, others and by-products High energy, others and by-products High energy, others and by-products High energy, others and by-products High energy, others and by-products High energy, others and by-products High energy, others and by-products High energy, others and by-products High energy, others and by-products
Brewers grains, wet 21 70 0.74 0.47 26 6.5 0.29 0.2
Distillers grains, wet 25 90 1.02 0.7 26 9.9 0.32 1.4
Corn gluten feed 90 80 0.88 0.6 23.8 3.9 0.07 0.95
Hominy 90 91 1.03 0.71 11.5 7.3 0.05 0.57
Soybean hulls 91 80 0.88 0.59 12.2 2.1 0.53 0.18
Wheat middlings 89 83 0.92 0.62 18.4 3.2 0.15 1
Molasses 74 72 0.77 0.49 5.8 0 1 0.1
TDN total digestible nutrients NEm net
energy for maintenance NEg net energy for
gain CP crude protein Ca calcium P
phosphorous
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ForagesForage Testing is only way to know
nutritional content.
  Dry Matter TDN NEm Mcal/lb NEg Mcal/lb CP Fat Ca, DM P, DM
Urea forages Urea forages Urea forages Urea forages Urea forages Urea forages Urea forages Urea forages Urea forages
Spring pasture 21 79 0.87 0.58 26 3.7 0.55 0.45
Summer pasture 22 67 0.72 0.43 19.5 3.2 0.4 0.27
Fall pasture 24 53 0.49 0.24 22 3.7 0.4 0.25
Stockpiled fescue 49 60 0.59 0.34 11 3.5 0.3 0.2
Fescue hay,avg. 91 54 0.56 0.31 10.5 5.3 0.43 0.32
Fescue hay, mature 91 44 0.34 0.1 8.7 4.7 0.41 0.3
Corn silage 35 69 0.73 0.45 8.5 2.6 1.19 0.24
Orchardgrass hay (2nd cut) 89 65 0.67 0.4 12.8 2.9 0.31 0.27
Alfalfa hay, bloom 91 55 0.52 0.26 17 3.4 1.19 0.24
TDN total digestible nutrients NEm net
energy for maintenance NEg net energy for
gain CP crude protein Ca calcium P
phosphorous
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Current Feed Prices
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Feed Price Comparison

• 66 pound lamb
• Requires 0.42 CP and 2.1 TDN per day.
• If the animal consumes 2 hay per day, it will
  gain 0.21 CP and 1.2 TDN (based on 10.5 CP
  and 60 TDN state average for grass hay).
• The lamb is still deficient 0.21 CP and 0.9
  TDN what is the most cost effective
  alternatives?

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Feed Cost Scenario
66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements
CP (/day) 0.42 TDN (/day) 2.1 COST
Hay 10.5 CP, 60 TDN (2 /day) 0.21 0.21 1.20 0.90 0.15
Corn (2/day) gut limited 0.21 0.00 1.76 0.86 0.24
Corn Gluten (1.13 /day) 0.27 0.06 0.90 0.00 0.09
Wheat Midds (1.2 /day) 0.21 0.00 0.99 0.09 0.16
Oats (1.7 /day) 0.21 0.00 1.28 0.38 0.29
Soybean Meal 44 (1.1 /day) 0.48 0.27 0.90 0.00 0.32
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Feed Cost Scenario
66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements 66 Pound Lamb Nutrient Requirements
CP (/day) 0.42 TDN (/day) 2.1 COST
Hay 10.5 CP, 60 TDN (2 /day) 0.21 0.21 1.20 0.90 0.15
Corn (2/day) gut limited? 0.21 0.00 1.76 0.86 0.24
Corn Gluten (1.13 /day) 0.27 0.06 0.90 0.00 0.09
Wheat Midds (1.2 /day) 0.21 0.00 0.99 0.09 0.16
Oats (1.7 /day) 0.21 0.00 1.28 0.38 0.29
Soybean Meal 44 (1.1 /day) 0.48 0.27 0.90 0.00 0.32
Daily Ration Cost 0.24
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Feed Cost Scenario

• 66 pound lamb
• 0.24 per day _at_ 0.65 /day gain
• 34 in 52 days
• Total cost to get to 100

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Feed Cost Scenario

• 66 pound lamb
• 0.26 per day _at_ 0.65 /day gain
• 34 in 52 days
• Total cost to get to 100

12.48
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Carcass Enhancement

• Breeding Stock Development
• Rams
• Ewes
• Carcass Trait Selection
• Muscling
• Frame
• ADG

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Member Scenario

• 83 ewe farm
• 173 lambs
• 110 market lambs
• 63 ewe lambs

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Member Scenario

• 110 market lambs
• 15,500 after fees
• 63 ewe lambs
• 4 _at_ sale 1,200
• 40 _at_ 200
• 19 replacement ewe lambs

Income from Sales 24,700
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Member Scenario

• Feed Cost (Including Dog Feed)
• 7,500
• Medications
• 800
• Vet Fees
• 300
• Misc
• 400

Total Clear Money 17,900
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Member Scenario
Return per Lamb 116.23
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Closing

• Prices are a factor
• Market at most desirable times and place
• Cut costs wherever you can
• Optimization may yield better profits than
  maximization
• Work smarter, not harder