1. MAIN IDEA: What are the measures of reproductive, production and financial efficiency in the sheep industry?

2. Today You need to read and take notes over the slides You will need to be ready for a quiz on Thursday.

3. 1. Measure of Reproductive Efficiency: Pregnancy Rate: Measures the number of ewes diagnosed as pregnant divided by the number of ewes exposed to a ram Should approach 100% Helps identify infertile ewes for culling USDA photo by unknown photographer.

4. 1. Measure of Reproductive Efficiency (cont.): Live Lambs Born per Ewe Lambing: Ideal is for each ewe that lambs to have twins with both lambs alive, healthy and thrifty. With dystocia (difficult births), ram problems during the breeding season, or low fertility, this may be closer to one than the desired two live lambs per ewe. Triplets or quadruplets are frowned upon because of light birthweights and the inability of most ewes to raise that number of lambs.

5. 1. Measure of Reproductive Efficiency (cont.): Live Lambs Born per Ewe Exposed: Includes nonpregnant ewes exposed to a ram The number will be lower (although hopefully not much lower) than the number of live lambs born per ewe lambing.

6. 1. Measure of Reproductive Efficiency (cont.): Lambs Born per Ewe per Year: Some breeds of sheep can breed and lamb year round. Producers can take advantage of those breeds by accelerating the lambing schedule so that ewes lamb more often than once each year. Program may attempt three lambings every two years or five lambings every three years.

7. 2. Measures of Production Efficiency: Percent Lamb Survival: Divide the number of lambs weaned by the number of lambs born alive. This number should approach 100% May be lower if ewes give birth to a large number of triplets or quadruplets. Lower numbers could indicate a predator problem, especially in larger Western flocks.

8. 2. Measures of Production Efficiency (cont.): Pounds of Lambs Weaned per Exposed Ewe: Accounts for fertility, lambing percentage and pre-weaning growth Poor performance reduces the number of total pounds of lambs to sell, reducing income. Weaning age can affect this measure. Each exposed ewe should wean at least 100 pounds of lambs in most situations.

9. 2. Measures of Production Efficiency (cont.): Pounds of Wool per Exposed Ewe: Wool production is currently of relatively minor value compared to the value of a lamb Wool income can add valuable dollars to a sheep flock's bottom line. Between her own fleece and the fleece of her lambs (shorn or unshorn), each exposed ewe should yield at least nine pounds of wool per year. Staff photo by Nancy Crombie.

10. 3. Measures of Financial Efficiency: Feed Cost per Ewe or Feed Cost per 100 Pounds of Lambs Sold: Feed costs to maintain the ewe flock account for a majority of expenses. Reducing feed costs helps make the operation profitable. Includes purchased feeds, grazing fees and other grazing costs. USDA photo by unknown photographer.

11. 3. Measures of Financial Efficiency (cont.): Gross Income: The total amount of money generated from sales over the course of the year. Reproductive efficiency counts for a major portion of gross income to sheep producers. The other half of the equation is market price, which is largely a function of supply and demand. Ethnic and seasonal demand for lambs can increase market price.

12. 3. Measures of Financial Efficiency (cont.): Net Income: Net income is simply gross income minus the costs associated with the enterprise. Feed costs are the major cost center. Veterinary services, shearing, insurance, trucking, fuel and depreciation costs must also be subtracted. Net income is simply the return to labor and management.

13. Summary: Efficiency of the sheep flock is no less important than efficiency for dairy, beef or swine. Reproductive efficiency can be evaluated in many ways, but all measures aim to increase lamb or wool production. Growth rate may be combined with reproductive efficiency to indicate the potential for increased sales. Costs, especially feed costs, must be reduced to ensure a profitable enterprise as measured by net income.