Profitable Sheep Production in the Biofuels Era

1. Profitable Sheep Productionin the Biofuels Era Dr. Dan MorricalIowa State University515-294-0847morrical@iastate.edu DGM:ISU

2. Current Prices Sheep Numbers are not increasing. Why ???? DGM:ISU

3. Basic EconomicsProfit = Income - Expenses Increase Income or Decrease Expenses or DO BOTH DGM:ISU

4. 1. Critical Records Total Number Born Total Number Weaned % Lamb Survival % Open Ewes % Ewe Death Loss DGM:ISU

5. Critical Records for Every Operation Feed Use Feed Cost Until one keeps track, amount is hard to believe. DGM:ISU

6. Ewe Cash Costs, Pipestone Feed & Other Total Pasture Oper. Cash a • 39.10 27.38 66.48 2003 42.84 36.91 79.75 2004 45.38 34.65 80.03 2005 48.84 47.34 96.18 Aver. 44.04 36.57 80.61 aUtilities, Fuel, Vet, Trucking, Feed processing, Hired labor, Shearing, Maintenance and repairs, Bedding.

7. 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

8. 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

9. 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. 10 steps to reduce feed costs 4. Mineral cost and intake Read label know intake level TM salt vs mineral cooperative purchasing DGM:ISU

11. 10 steps to reduce feed costs 5. Sample hays supplement as needed example: protein blocks “They might need it” DGM:ISU

12. 10 steps to reduce feed costs 6. Pelleted protein vs. soybean meal proteinsupplement @ >$450/ton SBM @$350/ton with more protein per pound DGM:ISU

13. 7. Improved grazing management Year Pasture Drylot 1987 3.1 17.1 1988 4.4 17.0 1989 3.6 17.1 1990 9.1 18.1 1991 3.5 18.0 1992 3.719.6 Average 4.6 17.8 SERP DGM:ISU

14. Ewe Grazing Days Per Acre Peter Woods, WI BFT: KyBG 1429 1973 BFT: SBG 1474 2122 BFT: OG 1446 2028 Cost $40.00/year 2 of 3 years were drought DGM:ISU 3 Year High Average Year a a

15. 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

16. 10 steps to reduce feed costs 9. Fetal Scanning groups ewes by stage of production group ewes by level of production cull open ewes

17. 10 steps to reduce feed costs 10. Change production systems Late lambing Nutrient requirements and forage quality match DGM:ISU

18. 3. Increasing Income Charles Parker Challenge 365 pounds of lamb marketed/ewe/year Industry is at 50% or less HOW ??? DGM:ISU

19. Increasing Production 4. Breeding season managementwhen to breed flushing teasers ewe age groups

20. Increasing Production 5. Genetic improvement NSIPaccurate maternal selection Lifetime production not S vs Tw vs TrPounds weaned is the trait

21. Increasing Production Prolific geneticsChoose the lambing rate you want 1.5 to 4.0 possible DGM:ISU

22. Increasing Production 6. CrossbreedingSimple to complexincrease production 15-50 % over purebreds DGM:ISU

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24. Increasing Production 9. Death loss frombirth to weaning is the greatest inefficiency in the sheep industry.

25. Increasing Production 10. Increased growthuse terminal sires11. Heavier market weightsuse terminal sires feed them longer

26. Management Inputs • Do not have a Cash Cost • Never substitute cash inputs for management

27. Poor Management Inputs • Flushing fat ewes • Vaccinating for a disease because your neighbor does it. • Monthly deworming vs a strategic approach DGM:ISU

28. 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

29. Getting/Being Profitable Increase output without increasing inputs Increase production via: Management Genetics Nutrition Reproduction DGM:ISU

30. Getting/Being Profitable Decrease Production Costs Step 1: Know where your at Step 2: Develop plan to get where you want to be

31. Profitable Sheep Production • Must be “the” goal • Sound Management • Cost control • Use technology DGM:ISU