Sheep farming as a business
Sheep breeding as a business is a well-known choice, because this niche of animal husbandry can be called a gold mine. Many farmers began precisely with sheep breeding, since the financial investments in the first stage are not required as impressive as for raising cows or pigs. In this article, we will try to address the main issues related to starting a sheep business for a beginner farmer.
Sheep farming as a business
General information about sheep breeding
About 8 tons of fresh mutton are sold annually in the world, and this figure is increasing every year. As for sheep breeding in Russia, not everything is so rosy here: at present, this industry is reviving after many years of pause.
If you look at the stage of development of this livestock industry, most of the livestock is owned by private individuals: about 9 million sheep, 5 million rubles. belong to various enterprises of the agricultural sector, the remaining 1.5 million belong to farms.
Where to start business planning
If you opted for a business on sheep, you should be aware that you will have to deal not only with livestock, but also partly with legal issues - this should be included in the action plan. The first thing you need to take care of is to register the company as a peasant farm, a peasant farm. This is an organization that brings together all the entrepreneurs who are engaged in the cultivation and marketing of livestock products. This also applies to sheep breeding as a business for beginners.
It is worth saying that it is not necessary to open a legal entity, this is not strictly mandatory, the procedure will largely resemble the creation of a regular IP. The only difference will be that the registration procedure at the peasant farm will be mandatory, this is an unexpected surprise for many beginning entrepreneurs.
Documents to be prepared for a beginner farmer:
- application for registration as a peasant farm, you need to attach a copy of the passport of the founder of the peasant farm;
- power of attorney certified by a notary public at the MFC;
- the spine of the receipt of the payment of all necessary fees, namely the fact that a new economy is being formed;
- original and copy of passport and IR; for those who are not a citizen of the Russian Federation, it is enough to present a residence permit;
- a document certifying that the SES gave the go-ahead to establish a farm.
The advantages of sheep farming
Any business, no matter in which industry a business is created, needs to think through the details of the plan, take into account all the costs and ways of making profit, that is, you need to draw up a business plan for breeding sheep for meat and for other purposes.
As mentioned earlier, sheep breeding is a developing niche in which the stage of revitalization is currently underway. This can be explained by several factors. For example, a sheep belongs to the category of unpretentious animals; minimal human intervention is required in keeping the sheep. In addition, sheep do not get sick so often, which positively affects the number of livestock.
The advantages of sheep farming
It is also worth mentioning about nutrition, which is a significant costly part. Not only are these animals not used to sorting out food, they spend a large amount of time in the pasture - you will have to pay only for renting a place if yours is not available. Although we must not forget that animals still need to be fed so that their weight is maximum. For feed use special feeds that can be purchased in veterinary stores or prepared independently.
It is important that a person does not need to purchase a large number of cattle at once, you can start with a dozen or several dozen sheep.
Cons of sheep
Despite the impressive list of advantages, there are, of course, also disadvantages, which cannot be said about when analyzing the sheep husbandry industry. At the moment, it is worth saying that the profitability of the industry is quite low, only about 15%, the same applies to profit. Many farmers abandon sheep farming as soon as they encounter this problem.
These figures, albeit not so fast, but still increasing. Moreover, for maximum profitability, it is important to organize everything correctly and not to save on the main cost items, which involve the organization of keeping, feeding, cutting, slaughtering the animal. If everything is organized correctly, the benefits and profits will be stable.
How to organize a pasture and a shepherd
As already mentioned, sheep spend more time on pasture, so you need to pay due attention to finding a good place. Usually, the calculation of 1 hectare of pasture per individual is taken as the norm, this area is needed for one year. Thus, after an elementary multiplication of the livestock by the norm, it is possible to obtain an approximate pasture area.
As for the shepherd, there will not be required any special buildings, the room should be as simple as possible. If a home sheep farm is located in a village or village, then an ordinary wooden barn or an old home farm will fit. You don’t even have to equip the shepherd with a heating system, since the sheep tolerates harsh winters quite well. If the winter is especially cold, then you can get by with an ordinary potbelly stove.
Features of breeding sheep
In miscalculations of the business plan, the most important condition for the purchase of sheep and sheep must be taken into account. Based on the recommendations of experienced farmers, it is best to buy animals on proven farms where they will not sell a sick or non-pedigree individual and there will be all the conditions in order to check the state of the animal’s health. It will cost more, but in the future will save you from many problems.
In order not to encounter the problem of crossbreeding within a genus, it is best to cross individuals from different farms.
It is best to start with the breed most widespread in Russia - the Romanovsk sheep, which is of the meat type. Growing and raising sheep for meat as a business usually starts with this variety. You can also try to purchase several individuals of Russian longhair, she also feels great in our latitudes, although her specialization is narrower: most often she is bred to get milk and wool.
Sheep breeding methods
With proper maintenance and balanced nutrition, a sheep can live up to the age of 25 years, but the reproductive age does not last long: only about 8-9 years, although, of course, there are exceptions to the rules when it is possible to raise a mature animal to an older age.
As for breeding methods, there are several:
- Introductory breeding. It is also called blood. In Russia, many prefer to raise sheep in this way, because it allows you to significantly improve the breed's performance in a short time, moreover, a single cross will be required, nothing more.
- Factory, it is also called reproductive. It is used in cases where the animal does not show characteristics that are inherent in a particular breed. This usually happens if breeds are purchased that are not suitable for the current climate and weather conditions.
- Breeding sheep as a business according to the absorption method. It is used when you need to change the direction of the livestock. For example, to re-qualify coarse-haired sheep in fine-fleece or at least semi-fine-fleece ones. This method is called indigenous, since the breed changes radically.
- Industrial method. It is used to produce young lamb meat. The animal is slaughtered at an early age, usually after it reaches the age of 8 months.
- Variable method. Here, the fertilization of the female will occur alternately by different males, which will relate to one direction: meat or wool.
It is unlikely that one person will be able to cope with the economy on their own. Therefore, immediately after the direct purchase of livestock, you need to take care of the staff. Typically, 1 person per 300 sheep is taken for the calculation of labor. This applies only to shepherds.
In addition to the shepherd, the farm also needs a veterinarian, a milkmaid, and a person who is engaged in shearing, because you need to work correctly with the wool of sheep and sheep. In total, 4 specialties will be required at the home farm; in such conditions, sheep care will be sufficient.
Product Sales Features
As a result of sheep breeding, you can get meat, milk and wool. All three products are in demand, lamb wool is in second place in demand. It is worth saying right away that it is unlikely that it will be possible to establish the sale of milk in industrial quantities: its processing should be completed soon, which cannot be said about meat. Typically, lamb is readily bought by catering establishments, markets, bazaars, as well as barbecue, because mutton barbecue has a unique taste.
Of course, you should not count on the same demand as on pork or beef. But with the right sales organization, you can establish the smooth operation of the enterprise.
The financial side of the issue
As mentioned earlier, at the very beginning you need to draw up a business plan, and only after that start the purchase of equipment and feed. Below are the costly articles per 300 goals. All amounts are in rubles.
- land lease - about 120 thousand rubles;
- construction and equipment of the premises of the shepherd - about 110 thousand rubles;
- the annual salary of workers is about 500 thousand rubles;
- unforeseen articles - about 80 thousand rubles. in year.
After adding all the sums, about 810 thousand rubles are obtained. It is this amount that is needed to start a business on sheep and sheep.
Now we turn to the description of the revenue side. Revenues will consist of:
- Sales of live weight sheep. If you sell about 100 individuals a year, then at the cost of one animal about 5 thousand rubles, you can gain about 500 thousand rubles. in year.
- Sale of fleece, that is, sheep’s wool - about 150 thousand rubles. in year. The sale of leather for further processing can also be attributed to this.
- Sale of sheep carcasses. Here, the amount will consist of the number of carcasses (about 50 goals) multiplied by 100 rubles. for 1 kg. On average, about 500 thousand rubles come out.
As a result, for 1 year of sheep husbandry the income is about 1 million 150 thousand rubles. Moreover, if you subtract costs from this amount, all initial investments will pay off in 1-1.5 years.
It is worth saying that all figures are approximate, they can vary in a smaller or larger direction, depending on various reasons. Also, much will depend on the specifics of the region in which the business is conducted. For example, raising sheep in southern Russia is less costly. If you compare these figures with the average for other sectors of livestock, this is a pretty good indicator. Thus, you can succeed in sheep farming, because keeping a sheep farm is profitable.