Do you want to start a small sheep farm business with small investment? If YES, find here a commercial sheep farming business plan guide for your livestock startup.
Raising sheep is indeed a profitable business. Investing little money, any individual can start raising sheep even with other livestock. Generally, sheep farming comes under the animal husbandry segment.
Globally, this is a traditional livestock business. Sheep provide meat, milk, and wool. Even, you can earn money from selling skin and manure also. Apart from the domestic market, the products have good international demand. So, the business has the potential of earning foreign currency also.
8 Reasons You can Earn Profit from Sheep Farming
- First of all, you can start the business with small investment and space. The business doesn’t demand huge capital in starting.
- The business requires less labor for daily maintenance and care. Thus, you can run the farm with less working capital investment.
- Sheep give birth to kids frequently. So, you can create a large size herd within a short period of time.
- Sheep require less space for living. Even you can raise sheep with your other livestock animals.
- Additionally, you don’t need to build expensive housing for the sheep. So, it allows you to maintain your cost at an early time.
- Sheep eat different kinds of plants. So you don’t need to provide high-quality feeds all the time.
- Basically, sheep are very hardy animals. They can adapt to almost all types of environments. So, you can raise sheep in a wide range of temperate climates, including arid zones.
- Finally, the products you get from sheep-like meat, wool, and milk have high demand in the market. So, sheep farming is a commercially lucrative business for entrepreneurs who want to start a livestock business.
Economic Importance of Sheep Farming – Market Potential
Basically, sheep are an important livestock species. They contribute greatly to the agrarian economy, especially in the arid/semi-arid and mountainous areas where crop and /or dairy farming are not economical.
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Sheep farming plays an important role in the livelihood of a large percentage of small and marginal farmers and landless laborers. A number of rural-based industries use wool and sheepskins as raw materials. Sheep manure is an important source of soil fertility too. Additionally, the production of wool, meat, and manure provide three different sources of income per year.
While lamb dominates, especially in developed economies, mutton that comes from adult sheep also generally enjoys a strong demand led by Muslim groups and other consumers with more limited purchasing power.
Basically, China inevitably dominates the global market, accounting for 27% of the total. There are then a number of smaller markets with a market share of 3-4% of the global total. Sudan is the second largest followed by the UK. The EU as a whole accounts for an estimated 12% of global consumption. Furthermore, the Middle East/North Africa (MENA) caters to around 19% of the total global sheepmeat market.
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6 Steps to Start Sheep Farming Business
Step 1: Business Plan
Regardless of the size of your sheep farm, you must craft a business plan. And your sheep farming business plan must consist of the financial analysis, marketing strategy, and income revenue calculations. Here, we have provided a sample business plan for your ready reference. However, the costs may differ from the current market rates.
The project size is 200 ewes and 10 rams.
Basis & Presumptions
- Lambing interval of 12 months and lambing percentage is 70 during the 1st year of operation with a sex ratio of 50:50.
- Total lamb production is considered 140 numbers and with a mortality rate of approx. 5% conservatively, total lamb production shall be 130. Female lambs are retained and male lambs are sold at 8 to 9 months of age.
- Shearing of wool is done twice a year.
- The yield of wool is as follows: For adults 1.2 Kg per animal and for Lambs 0.6 Kg per animal
Working capital (for 30 days) once a year
Concentrated feed during lactation period: 210 x 0.25 Kg./day x 30 days @ Rs.4.00/kg L.S = 6,300.00
Misc. expenses = 200.00.
So, the total expenses = 6,500.00
The main source of feed is by way of grazing. During the lactation period, you will need to provide concentrated feed.
Cost of Project
Land: own
Site Development fencing, and roofing 500 sq. ft. = 12,000.00
Cost of animals
(a) 200 ewes × Rs.550/- per ewe. = 1,10,000.00
(b) 10 rams × Rs.650/- per ram. = 6,500.00
Equipment and insurance, veterinary expenses, cost escalation, contingencies, etc. (LS) = 15,000.00
Working Capital 6,500.00
So the total expenses = 1,50,000.00
Project Economics
From the sale of wool
Adult sheep 210 × 1.2 Kg× 2 cycles × Rs.60 per Kg. = 30,240.00
Lambs 70 × 0.6 kg× 2 cycles × Rs.60 per Kg. = 5,040.00
(ii) Sale of lambs 100 × Rs.500 each = 50,000.00
(iii) Penning charges 200 × 6 months × Rs.7 per animal per month= 8,400.00
So, the total amount = 93,680.00 Rounded over = 94,000.00
Cost of Production
Concentrate = 6,300.00
Veterinary expenses/insurance @ Rs.10 animal = 5,600.00
Shearing charges = 1,100.00
Interest charges (if any) = 9,000.00
Sustenance allowance = 18,000.00
Misc. expenses = 1,000.00
TOTAL = 41,000.00
So, the cash profit: (94000 – 41000) = 53,000.00
Depreciation/amortization of expenses @ 10% 14,350.00
Net Profit = 38,650.00
No manpower on wages is considered since entrepreneur himself & his family members can manage the operational activity. The cost of the project may vary in different States & Regions.
Step 2: Identify a Location
If you already have a location of your own then it’s good. Otherwise, you will need to identify and select a location for setting up the farm. Basically, the area required depends on the size of the farm and the population of the livestock you want to keep on your farm.
Generally, location plays an important role in the overall success of your sheep farm. Ensure that the space is clean enough and has a clean water resource. Additionally, check the availability of an adequate amount of greens and easy transport facilities. Also, don’t establish the farm in a location that is very far from the local market.
Step 3: Procure Quality Breeds
Procure quality breeds either trusted breeders or responsible farmers. Generally, you can find numerous sheep breeds throughout the world. However, all those breeds are not suitable for farming in all areas. So, you will need to procure the breeds according to the agroclimatic condition of your location.
Additionally, you will need to select the breed according to the specific demand. Basically, some breeds are suitable for commercial meat production and some breeds are suitable for wool production. So, choose suitable breeds according to your desired production purpose. Some of the most popular sheep breeds are the following:
- Bannur
- Bellary
- Dorset
- Suffolk,
- Cheviot
- Deccani
- Cordially
- Montadale
- Hassan
- Merino
- Rambouillet
- South Down
Step 4: Build the Housing
Building the right housing is one of the most important aspects of establishing the sheep farm. Basically, you must provide housing that can protect the sheep from adverse climatic situations. You can provide a simple shade to house the sheep.
However, you must construct the shade in an elevated area to prevent water stagnation. Additionally, you can grow fodder trees around the shades and use the space as grazing land. Finally, the entire house must have a sufficient ventilation facility.
For a comfortable house east-west orientation with generous provision for ventilation /air movement to dry the floor is suitable. However, the most suitable is a thatched roof due to its cheaper cost and durability.
However, you can also use corrugated asbestos sheets for organized farms to minimize recurring costs and to have longer durability.
Generally, an adult sheep requires about 20 squire feet floor space. For example, if you intend to raise 10 sheep, then you have to make a house with 10 feet long and 20 feet wide. Keep the roof at least 6 feet high from the floor.
Different Shades of Organized Sheep Farm
- General flock shed (Ewe / Doe shed)
- Ram or buck shed
- Lambing or kidding shed
- Lamb or kid shed
- Sick animal shed
- Shearing and storeroom
- Attendant’s room
Step 5: Feeding
You must provide proper feeding for the best result. Additionally, you will need to provide the food according to gender and age. Good-quality hay or stored forage is a highly productive feed for your sheep farm.
The period from weaning to the breeding of ewes is critical if a high twinning rate is desired. Ewes should not be allowed to become excessively fat but should make daily gains from weaning to breeding. During the last 6–8 wk of pregnancy, the growth of the fetus is rapid. This is a critical period nutritionally, particularly for ewes carrying more than one fetus.
Beginning 6–8 wk before lambing, you must increase the plane of nutrition should be gradually and continue without interruption until after lambing. The amount offered depends on the condition or fat covering of the eyes and quality of the forage.
If ewes are in fair to good condition, 0.5–0.75 lb (225–350 g) daily is usually sufficient. The roughage content of the ration should provide all the protein required for all nonlactating ewes. If necessary, you can classify the ewes according to age, condition, and number of fetuses and divide them into groups for different treatments.
Step 6: Care & Management
Basically, you will need to provide good care and management to get the maximum profitability of your farm. Broadly, you will need to procure quality breeds and provide good housing and food. Additionally, maintain the cleanliness of your farm. In addition to that, provide the right vaccination to your sheep. If you notice any sick sheep, separate the animal promptly, and provide proper treatment.
To obtain the optimum profit, always tap the local market of the products. It helps to keep the transportation cost minimum. Additionally, always think about the other marketing avenues to get the maximum profits from your sheep farming business.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.