Profitable Sheep Production in the Biofuels Era Dr. Dan Morrical Iowa State University 515-294-2904 morrical@iastate.edu DGM:ISU

Basic Economics Profit = Income - Expenses Increase Income or Decrease Expenses DO BOTH DGM:ISU

1. Critical Records Total Number Born Total Number Weaned % Lamb Survival % Open Ewes % Ewe Death Loss DGM:ISU

Critical Records for Every Operation Amount fed Cost/unit Total costs Until one keeps track, amount is hard to believe. DGM:ISU

Ewe Flock Cash Costs, Pipestone Feed & Other Total Pasture Oper. Cash a 71.53 27.38 66.48 2003 79.16 36.91 79.75 86.17 34.65 80.03 82.94 47.34 96.18 85.24 33.81 119.05 97.36 30.82 128.18 aUtilities, Fuel, Vet, Trucking, Feed processing, Hired labor, Shearing, Maintenance and repairs, Bedding.

10 steps to reduce feed costs 1. Control feed waste good bunks feed what ewes need not what ewes want limit access to big packages

10 steps to reduce feed costs 2. Use feed substitution/byproducts purchase feeds on nutrient cost examples: corn gluten feed corn vs barley hay qualities DGM:ISU

10 steps to reduce feed costs 3. Separate management groups ewe lambs vs mature ewes singles vs twins thin vs average vs fat DGM:ISU

10 steps to reduce feed costs 4. Mineral cost and intake Read label know intake level TM salt vs mineral cooperative purchasing DGM:ISU

10 steps to reduce feed costs 5. Sample hays supplement as needed example: protein blocks “They might need it” DGM:ISU

Iowa Hay Quality Survey Hay type Crude protein TDN Grass Ave. Range Ave. Range 1st cut 11.6 (6-20) 55.7 (47-67) all others 15.2 (12-19.7) 61.8 (57-70) Mixed 1st 13.9 (8-22) 56.1 (41-69) 2nd 16.8 (10-22) 59.6 (47-70) 3rd 18.3 (11-23) 62.4 (49-73) Legumes 1st 16.9 (10-22) 56.7 (48-69) 2nd 18.3 (14-22) 57.7 (45-68) 3rd 19.9 (13-23) 59.4 (47-70)

10 steps to reduce feed costs 6. Pelleted protein vs. ddgs protein supplement @ >$600/ton ddgs @$110/ton with if protein is all you need DGM:ISU

7. Improved grazing management Year Pasture Drylot 1987 3.1 17.1 1988 4.4 17.0 1989 3.6 17.1 1990 9.1 18.1 1991 3.5 18.0 1992 3.7 19.6 Average 4.6 17.8 SERP DGM:ISU

Ewe Grazing Days Per Acre Peter Woods, WI 3 Year High Average Year a BFT: KyBG 1429 1973 BFT: SBG 1474 2122 BFT: OG 1446 2028 Cost $40.00/year 2 of 3 years were drought DGM:ISU a

10 steps to reduce feed costs 8. Grazing crop residues Grazing Season Feed Length Savings 1 extra month $6.00 Assumes $.10 on pasture and $.30 in drylot DGM:ISU

10 steps to reduce feed costs 9. Fetal Scanning groups ewes by stage of production group ewes by level of production cull open ewes

10 steps to reduce feed costs 10. Change production systems Late lambing Nutrient requirements and forage quality match DGM:IS U

Dr. Charles Parker Challenge Increasing Income Dr. Charles Parker Challenge 365 pounds of lamb marketed/ewe/year Industry is at 50% or less HOW ??? DGM:ISU

Increasing Production Breeding season management when to breed flushing teasers ewe age groups

Increasing Production Genetic improvement NSIP etc. accurate maternal selection Lifetime production not S vs Tw vs Tr Pounds weaned is the trait

Increasing Production Crossbreeding Simple to complex increase production 15-50 % over purebreds DGM:ISU

Prolific genetics Choose the lambing rate you want 1.5 to 4.0 possible Increasing Production Prolific genetics Choose the lambing rate you want 1.5 to 4.0 possible DGM:ISU

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Increasing Production Death loss from birth to weaning is the greatest inefficiency in the sheep industry.

Increasing Production Increased growth use terminal sires Heavier market weights use terminal sires feed them longer do not sell feeder lambs

Lamb Cost of Gain Lambs feed conversion 6 to 1 Lamb feed costs $320 per ton 6 pounds of feed X $.16= $.96 Value of gain $1.30 Profit over feed cost $.34 70 pounds gain X $.34= $23.80/lamb

Management Inputs Do not have a Cash Cost Never substitute cash inputs for management

Poor Management Inputs Flushing fat ewes Vaccinating for a disease because your neighbor does it. Monthly deworming vs a strategic approach DGM:ISU

Poor Management Examples Offering protein tubs with alfalfa hay Feeding dairy quality hay to minimize waste Giving up .2-.5 lambs/ewe/year due to breeding season and death loss DGM:ISU

Getting/Being Profitable Increase output without increasing inputs Increase production via: Management Genetics Nutrition Reproduction DGM:ISU

Getting/Being Profitable Decrease Production Costs Step 1: Know where your at Step 2: Develop plan to get where you want to be

Profitable Sheep Production Must be “the” goal Sound Management Cost control Use technology DGM:ISU