Sheep breeding as a business
Sheep breeding as a business is obviously the right choice, because this niche of livestock breeding can be called a gold mine. Many farmers started with sheep breeding, since financial investments at the first stage are not as impressive as for breeding cows or pigs. In this article, we will try to cover the basic questions regarding starting a sheep business for a novice farmer.
Sheep breeding as a business
General information about sheep breeding
About 8 tons of fresh mutton are sold in the world every year, 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 individuals: about 9 million sheep, 5 million rubles. belong to various enterprises in the agricultural sector, the remaining 1.5 million belong to farms.
How to start planning your business
If you have opted for a sheep business, you should be aware that you will have to deal not only with direct animal husbandry, but also partly with legal issues - this needs to be included in the action plan. The first thing you need to take care of is registering the company as a peasant farm - a peasant farm. It is an organization that unites all entrepreneurs involved 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, it is not strictly obligatory, the procedure will in many respects resemble the creation of an ordinary individual entrepreneur. The only difference is that the registration procedure in peasant farms will be mandatory, which is an unexpected surprise for many start-up entrepreneurs.
Documents to be prepared for a novice farmer:
- application for registration as a peasant farm, you need to attach a copy of the passport of the founder of the peasant farm;
- a power of attorney certified by a notary at the MFC;
- the stub of the receipt for the payment of all the necessary duties, namely, on the fact that a new economy is being formed;
- original and copy of the passport and IK; for those who are not citizens of the Russian Federation, it is enough to present a residence permit;
- a document certifying that the SES gave the go-ahead for the creation of the farm.
The advantages of sheep breeding
Any business, in whatever industry a business is created, you need to think over to the smallest detail according to the plan, take into account all the costs and ways of making a 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, which is currently undergoing a recovery stage. This can be attributed to several factors. For example, a sheep belongs to the category of unpretentious animals; in keeping sheep, minimal human intervention is required.In addition, sheep do not get sick so often, which has a positive effect on the number of livestock.
The advantages of sheep breeding
It is also worth saying about nutrition, which is a significant costly part. Not only are these animals not accustomed to sorting out food, they spend a lot of time on the pasture - you will have to pay only for renting a place if your own is not available. Although we must not forget that animals still need to be fattened so that their weight is maximum. For fattening, special feed is used, which can be purchased at veterinary stores or prepared by yourself.
It is also important that a person does not need to buy a large number of livestock at once, you can start with a dozen or several dozen sheep.
Cons of sheep breeding
Despite the impressive list of advantages, there are, of course, disadvantages, which cannot be ignored when analyzing the sheep breeding industry. At the moment, it should be said that the profitability of the industry is quite low, only about 15%, the same applies to profits. Many farmers give up sheep breeding as soon as they encounter this problem.
These figures, albeit not so quickly, are 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, shearing, and slaughtering the animal. If everything is organized correctly, the benefits and profits will be stable.
How to organize a pasture and sheepfold
As mentioned earlier, sheep spend more time in the pasture, so you need to pay due attention to finding a good place. Usually, the rate is taken as a calculation of 1 hectare of pasture per individual, this area is needed for one year. Thus, after an elementary multiplication of the livestock by the norm, you can get an approximate pasture area.
Pasture organization
As for the sheepfold, no special buildings are required here, the room should be as simple as possible. If the home sheep farm is located in a village or village, then an ordinary wooden shed or an old home farm will do. You don't even have to equip the sheepfold with a heating system, since the sheep tolerates severe winters quite well. If the winter is especially cold, then you can get by with an ordinary potbelly stove.
Features of pedigree sheep breeding
In the miscalculations of the business plan, it is necessary to take into account the most important condition for the purchase of sheep and rams. Based on the recommendations of experienced farmers, it is best to buy animals on proven farms, where a sick or non-pedigree individual will not be sold and there will be all conditions in order to check the health of the animal. It will cost more, but in the future it will save you from many problems.
In order not to face the problem of crossing within the genus, it is best to cross individuals from different farms.
It is best to start with the most common breed in Russia - the Romanov sheep, which belongs to the meat type. Raising and raising sheep for meat as a business usually starts with this particular variety. You can also try to buy several individuals of the Russian long-haired, she also feels great in our latitudes, although her specialization is narrower: most often she is bred for 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 rule when it is possible to grow a sexually mature animal to an older age.
As for breeding methods, there are several of them:
- Introductory dilution. It is also called blood. In Russia, many people prefer to raise sheep in this particular way, since it allows in a short time to significantly improve the performance of the breed, and a single crossing is required, nothing more.
- Factory, it is also called reproductive. It is used in cases where the animal does not show the characteristics that are inherent in a particular breed. This usually happens if breeds are purchased that are not suitable for the existing climate and weather conditions.
- Sheep farming as a takeover business. It is used when it is necessary to change the direction of the livestock. For example, retrain coarse-wooled sheep into fine-wooled or at least semi-fine-wooled sheep. This method is usually 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 when it reaches the age of 8 months.
- Variable method. Here, the fertilization of the female will occur alternately by different males, which will belong to one direction: meat or wool.
Staff recruitment
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. Usually, 1 person per 300 head of sheep is taken for the calculation of labor. This only applies to the shepherds.
In addition to the shepherd, the farm also needs a veterinarian, a milkmaid and a shearing man, because working with sheep and ram's wool needs to be done correctly. In total, 4 specialties will be required on a home farm; in such conditions, caring for sheep will be sufficient.
Features of product sales
As a result of sheep breeding, you can get meat, milk and wool. All three products are in demand, with lamb wool in second place in demand. It should be said right away that the sale of milk in industrial quantities is unlikely to be established: its processing should be completed soon, which cannot be said about meat. Usually mutton is eagerly bought by catering establishments, markets, bazaars, as well as kebabs, because mutton kebab has a unique taste.
Sheep meat
Of course, you shouldn't count on the same demand as for pork or beef. But with the correct organization of sales, 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 purchasing equipment and feed. Below are the cost items per 300 heads. All amounts are in rubles.
- land lease - about 120 thousand rubles;
- construction and equipment of the sheepfold premises - about 110 thousand rubles;
- the annual salary of workers is about 500 thousand rubles;
- unforeseen items - about 80 thousand rubles. in year.
After adding up all the amounts, it turns out about 810 thousand rubles. It is this amount that is needed to start a business on sheep and rams.
Now let's move on to the description of the income part. Income will consist of:
- Sales of sheep by live weight. If you sell about 100 animals a year, then with 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. This also includes the sale of leather for further processing.
- Sale of sheep carcasses. Here the amount will be the sum of the number of carcasses (about 50 heads) multiplied by 100 rubles. for 1 kg. On average, it comes out about 500 thousand rubles.
As a result, for 1 year of sheep breeding, the income is about 1 million 150 thousand rubles. Moreover, if you subtract costs from this amount, all initial capital investments will pay off in 1-1.5 years.
It is worth saying that all figures are approximate, they can change up or down, depending on one reason or another. 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 we compare these figures with the average for other livestock sectors, this is a fairly good indicator. Thus, it is possible to succeed in sheep breeding, because it is profitable to keep a sheep farm.