Raising Sheep & Goats for Profit

1. Small-Scale Livestock Production RaisingSheep & Goats for Profit 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.

2. There are unique production and marketing opportunities available to smaller-scale sheep and goat producers; however, before you get started, you need to consider…

4. Leveraging your herd management • Overview of certification programs • Evaluating program cost & benefits New marketing opportunities

5. 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

6. Animal Welfare Certification Programs • 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

7. Possible Program Specifications for Herd Management

8. Evaluating Certification Programs

9. Evaluating Certification Benefits

10. Evaluating Certification Costs

11. 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

12. To be a good neighbor and food producer: • Manage manure properly • Monitor storm water runoff • Dispose of mortalities safely • Environmental stewardship

13. 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 • & • =

14. Manage Manure Properly

15. Monitor Storm Water Runoff

16. Dispose of Dead Animals Safely

17. Production practices • Maintaining a healthy herd • Managing sick animals

18. 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 • Appropriateparasite control • Protection from extreme temperatures, including water heaters for winter, and shade during hot months

19. As a Good Herd Manager, You Should:

20. As a Good Herd Manager, You Should:

21. Taking Care of Sick Animals

22. Safe practices • Worker safety • Good Agricultural Practices (GAPs) • Milk and meat products

23. 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

24. 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: • keep records of composting dates and production process, • separate raw and finished compost, and • store compost on high ground, away from fields and water sources to prevent run-on

25. 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

26. 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

27. 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

28. Which licenses you need depends on: • Whether you are selling milk or meat • Where you plan to sell your product Business licensing

29. 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

30. 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

31. Regulations for Pasteurized Milk

32. Licensing for Retail & Wholesale Meat Sales 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.

33. Custom Exemptionto USDA Slaughter and Processing Requirements, for Direct Sales AND OR AND

34. 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 ?

35. Zoning is a restriction on the way land can be used • Zoning regulations may include where you can (or can’t) raise animals Zoning restrictions

36. 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)

37. County & Municipal Zoning Regulations • Larger livestock (including sheep and goats) typically prohibited in non-agriculturally 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

38. Regulations in districts where commercial livestock production is permitted may include:

39. Building a Profitable Business Involves Research & compliance with regulations and certifications • Good neighbor relations that lead to a sustainable business!

40. Questions?

41. 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

42. Photo Credits – flickr.com All photos used under the Creative Commons License A Roger Davies 4670542941 BryanAlexander 3348954673 ynskjen 423389418 Kkirugi 4923613664