Sheep Dairy Enterprise Analysis
Sheep Dairy Enterprise Analysis New Zealand has a small emerging sheep dairy industry, the total number of sheep being milked is approx. 25,000. Assumptions on milk productivity involves a large range, due to New Zealand’s relatively small gene pool and limited selection, budgeted figures should be kept at the conservative end, especially when new ventures are considered, realistic production should start around 200 litres per ewe per annum, acknowledging that there are quite a few large herds that are producing in the 300 – 400 Litres range per annum. Lamb mortality rates can vary from 5% -18% dependant on management techniques adopted at lambing, from intensive housing to paddock lambing. Assumptions:
200day lactation, producing 250 L per ewe Pasture production is assumed at 13,000kg DM/Ha (irrigated or part irrigated) Milk is valued “at the gate”, assuming there is a viable outlet, prices currently range between $2.00 - $2.65/Litre, $2.35 has been used. Concentrate feed requirements increase the higher the lactating sheep, they range between 05-1.5kg/head/day, assumed cost of $500 per Tonne, at an average feeding rate of 1.00kg/hd/day Assaf breed production figures are used, which is medium to high production Lambs are removed from the ewe and raised on lamb milk replacer milk powder Lambs not kept for replacements are finished off the “milking platform” on irrigation, and sold –December-February, on a $6.40/kg, Carcass weights 17 -19 kg This scenario is based on a small flock of 300, so the larger Farmers will have increased feed costs, especially considering the allowance for walking time to the milking shed. Lambing 185 % survival to sale, at a stocking of 12.5 ewes / Ha
GROSS MARGIN SHEEP DAIRY Milk yield per ewe ( Litre) per annum
Income:
250
milk solids @ 18% av Milk
Litre M/S / kg
$2.00 $10.36
Lambs***
$122
$201
Wool
$3.30
$13.20
Surplus stock
$75
Total Income per Ewe Expenditure
$15.00 $728.84
feed costs**
concentrates 0.5-1.5kg/day average 1 kg / day Forage?
Artificially reared lamb costs
Gross Margins
45 $500.00
Litres Milk solids
$100 $60 $85
Animal health Shearing/crutching
$15 $7.40
Total Variable costs
$267 $461.44
per Ewe hectare
stocking rate
12.5
$5,768.00
Key Sensitivities, shown as Gross Margin per Ha, assuming a movement in price per litre and increasing production per ewe. Litres/ewe/year Litres $2.00 200 $3332 250 $4482 300 $5632 350 $6782 400 $7932 Source: Business plan NZ Sheep Dairy, L Griffiths,
$/ Litre $2.60 $4712 $6207 $7702 $9197 $10962
KPMG, Global sheep milk industry, Case study’s Easterbo & Otahuao sheep dairy Wairapawater
$3.00 $5612 $7357 $9082 $10807 $12532
$3.60 $7012 $9082 $11152 $13222 $15292
Charing cross Sheep Dairy