02.12.2019

Sheep breeding business plan. Profitability of the sheep and ram breeding business


Igor Nikolaev

Reading time: 5 minutes

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Are you going to open your own business, but don't know in what area and where to start? If you are thinking about a business like sheep breeding, let's try to figure out together how to organize this business so that it makes a profit. This business direction is by no means in vain considered profitable and promising not only for experienced livestock breeders, but also for novice farmers.

Sheep breeding as a business

Any own business begins with the development of a business plan. A competent sheep breeding business plan is the first step to a successful further development. Next, we will consider the main points that such a plan should contain. Before you start drawing up a plan, you should realistically assess your capabilities.

If there are enough of them, then the question arises of choosing a form state registration.

Usually sheep breeding business is registered in the form of a peasant business. farming(KFH).

To resolve this issue as soon as possible, it is worth consulting with a specialist who will help to avoid errors in registration. required documents. For the legal development of your business, you will need to register with tax authorities and get necessary permissions from the fire and sanitary authorities. To sell the meat obtained, you will need permission from the veterinary service.

Business plan development

Land lease

The second point of the business plan, after state registration and obtaining the necessary permits, should be the land issue.

Rent or buy? A novice farmer should try to minimize initial costs, so renting is usually chosen as a cheaper option. And it will be easier to issue KFH. For example, issues with fire supervision will be decided by the owner of the land, not the tenant. It is necessary to immediately provide for the initial number of animals, since it directly depends on how much land is needed to feed it.

To ensure normal grazing conditions, one hectare of land is usually planned per sheep.

Building sheep breeding as a business from scratch, it is better to take a closer look at the abandoned livestock farms, since on their territory, in addition to the pastures themselves, there may be livestock buildings that need to be repaired. This is much cheaper than building them from scratch. Sheep are unpretentious animals, and they do not impose special requirements on such structures.

Since these animals adapt well to almost any conditions of detention, at first they are quite suitable for an open corral, and in winter period- the building of a once abandoned livestock farm. With the development of business and an increase in income, a successful entrepreneur can also buy out a leased plot. It is not at all necessary to buy lands for grazing; at first, it is easier and cheaper to rent them.

Selection and purchase of animals

A separate item of the business plan must necessarily be the issue of purchasing the initial herd. Previously, a beginner sheep breeder should learn more about the available breeds and, having decided on this issue, proceed to the search for a supplier. This search should be carried out according to two criteria - how long this supplier has been on the market and what is its reputation.

In order to choose a suitable breed of sheep, you need to decide which of their products are of interest to you as an entrepreneur. Sheep provide wool and meat, and depending on your preferences in this matter, you should choose animals. In addition, it is worth paying attention to the productive indicators and fertility of the breed (or breeds) of the future herd.

In the Russian climate, it is considered more profitable to breed sheep for meat. However, this does not mean that you will throw away the wool. This is a stable source of good income, therefore, when planning to breed animals for meat, it is worth paying attention to the quality of the wool. On this basis, sheep are divided into the following types of breeds:

  • fine-fleeced meat-wool. The most common sheep breeds are Vyatka, skew, fat-tailed, Georgian and Kazakh;
  • semi-fine-fleece meat-wool. They are shorthaired and longhaired. Examples of such breeds are Lithuanian, Gorky, Kuibyshev, Tien Shan, German Blackhead, Suffolk and Romney March;
  • semi-coarse-haired meat-greasy-wool. The main breed of this species is the saraja;
  • coarse-haired meat-greasy, sheepskin-meat and meat-wool. This species includes Kuchugurovskaya, Romanovskaya and.

A novice sheep breeder is best suited to growing sheep of the Romanov breed. Its main advantages are high fecundity and fast growth rates of slaughter weight.

Already at the age of seven months, individuals of the Romanov breed, with proper maintenance and feeding, reach a weight of about 35 kilograms. Adult specimens weigh up to 90 kilograms (rams), and sheep of this breed can weigh up to 50 kilograms, which provides a novice entrepreneur high level profitability. The Romanovskaya breed belongs to the sheepskin-meat species. Under household or farm conditions, wool from these animals can be obtained three times in one year. From one male of the Romanov breed, about three kilos of wool come out, and from a Romanov female - about two.

If we take into account the income from the sale of wool in the business plan, then the turnover will increase and the payback period will decrease significantly. One of the main advantages of this breed is its precocity. Sheep of this breed are capable of producing from three to five lambs in one offspring. Three lambs in seven months give an increase of about 110 kilos of meat. Accordingly, five lambs - about two hundred kilograms. The time of year for the queens of the Romanov breed does not affect her desire to mate. Within one year, a Romanov ewe can lamb twice. Do not forget about.

Sheep of this breed during the lactation period give up to 110 kilograms of milk. This breed does not require any special conditions of maintenance and care. It is quite enough to provide the herd with a full-fledged feed ration, and in winter to provide him with a minimally insulated covered room with a dry floor. Based on the foregoing, sheep breeders advise starting a sheep breeding business with the Romanov breed of sheep. For the subsequent sale of products obtained in the conditions of a household or farm, it is imperative to document the animals.

Such documents indicate the breed of the animal, its age, a list of past diseases and a list of vaccinations. Strict maintenance of sanitary documentation will subsequently avoid problems in the sale of meat, milk and wool.

Required personnel

In home conditions subsidiary farm the maintenance of animals is provided by the forces of the owner and his family.

However, this is clearly not enough for any serious business. Consequently obligatory item the business plan should be hired personnel, their number and, accordingly, the cost of wages.

But if you manage to conclude agreements with milk processing or cheese-making enterprises, then this will be a constant source of additional profit. Having put your sheep breeding business on its feet, you should think about other sources of income, for example. a small workshop for the production of sheep cheese or a workshop for sewing natural sheepskin products (belts, blankets, vests, slippers, children's envelopes for winter, etc.).

Financial part of the business plan

In this part, it is necessary to take into account, on the one hand, all the expected costs, such as: purchase of the initial herd, rent for pasture land and agricultural premises, wage fund, overhead costs (transportation, temporary workers, wages utilities, purchase of feed, tax payments, etc.). On the other hand, the column "Income" reflects the estimated proceeds from the sale of meat, milk and wool, as well as animals per tribe.

Based on the debit and credit of your business plan, the payback period and the expected level of business profitability are calculated.

The average payback period in sheep farming is two years.

The main risks in this industry are the loss of livestock as a result of an epidemic or natural disasters. However, such force majeure exists in any agricultural industry.

Sheep are hardy and unpretentious animals, they rarely get sick, so the risk of herd death outside of force majeure is small.

In any case, at the beginning of business development, a beginner sheep breeder should seek help from professionals in this field, since it is quite difficult to independently develop a competent business plan and implement it without sufficient experience.

In conclusion, I would like to say that although the average profitability of sheep breeding as a business is low, with the right approach, it guarantees a stable income.

On our site you will find a variety of ideas home business , which will help you navigate what is now popular, in demand and what injections are needed to engage in one or another type of activity. A sheep breeding business plan is relevant not only for people with huge capital (purchasing animals is very expensive), but also for start-up entrepreneurs living in countryside, under such conditions, you can easily buy a couple of dozen sheep, go out and sell them for more, you will only need labor and a minimum of money for food and arranging the premises, after which you will only receive profit.

As it grows, find necessary personnel and you can automate work, getting rid of things yourself, without problems, but at the initial stage, it’s worth doing everything personally, or at least being interested in business in order to get the job done as efficiently as possible.

Sheep breeding is a very ancient occupation, until today people eat sheep meat, use wool to create fabrics and clothes, and also produce various products from the milk of these animals. All this needs to be grown and supplied by someone, so why not you?

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When drawing up a business plan for sheep breeding, one should also take into account the breed of animals, there are “meat” ones, known for their taste properties and volumes of “valuable substances”, and there are also “woolen”, but in our case they are useless, in Russia sheep wool is in little demand and bought it is very cheap, while in cultivation it is only a little cheaper than meat, we sell it only because it is used as an “additional material”, and money is never superfluous, even if it is small.

Sheep breeding business plan - where to grow and what to feed

Since you are starting a similar business with one goal - to earn more, then you need to build on this. Breeding sheep, with the right approach, can bring big profits, but for this you need to take a responsible approach to this matter. The most expensive sheep is meat, wool is also valued, but its quantity and cost, compared to meat, is ridiculous, so it’s better to choose a “meat” breed. One of the most popular are the "Romanov" sheep, first of all - they grow well, and plus their meat has excellent taste properties, but this is not the only option, there are also popular breeds, such as the Russian Longhair.

The main place worth buying will be a pasture - sheep walk on it, and there should also be a corral/stall in which animals will be in winter or in bad weather, and this, as is known to all residents of the post-Soviet space, happens quite often with us. The ideal option would be to buy a pasture with a farm or paddock already built, even if its condition “wants the best”, much more practical than building from scratch, and it ends up being cheaper in the end. How much space is needed - it is definitely worth adding to the business plan for breeding sheep, for each individual with subsequent offspring, it takes about 1 hectare per year.

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The room itself, thank God, does not have special requirements, sheep easily tolerate cold, so it’s not worth warming the corral, if it’s too cold, you’ll have to slightly drown the potbelly stove, this is more than enough for animals. As you can see, there is nothing “secret” or unusual about keeping and raising sheep.

We move smoothly to nutrition and maintenance - in the summer and in the rest of the “warm” seasons, pastures serve as the main feeder, where the sheep walk, eat and generally spend most of the day, they already sleep in the corral and restore strength, but in winter there is no grass on the pastures , but they need to eat, so food should be prepared in advance.

The best solution would be hay, but not coarse-grained, they cannot tolerate it, we need one that is made from legumes and cereals. It is worth negotiating in advance with those who have such “wealth”, or offer your hay collection services in order to minimize the cost. Otherwise, you will have to buy food already in the winter, when the price of it will rise. But hay is not the only option, the diet of animals for better growth should be diversified even in the warm season, when there is a lot of grass, barley, oats and other similar crops will do. As you can see, the sheep breeding business plan is quite simple and understandable even for a beginner, but we have not yet talked about the organization of work.

For feeding, walking and all other procedures, and most importantly - checking the health of animals, personnel are needed, on average, about 3 positions are enough for such a number of sheep, a shepherd, a milkmaid and a veterinarian - they must always be nearby and perform their duties with all responsibility , one more person can be called “from time to time”, meaning a haircut specialist, since there is no permanent job for him, it is simply unprofitable to hold such a position.

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Costs and income from the implementation of a sheep breeding business plan

Most people start doing business or some business because they see money there, of course, there are often situations when a person just does what he loves, puts his soul into it and is a leader, while making good money on it, but this does not happen ubiquitous and certainly not related to sheep breeding. No matter how you, on the part of the consumer, seem to think this business is super profitable, in fact everything is modest here, profitability at the level of 15-20% does not look exciting, but there are not so many risks (if there is where to sell the fruits of production), therefore, incomes are small, but stable, which will be much more acceptable for many beginners.

If your turnover is large, then those 15-20% that you receive in the end will turn into a significant amount, of course, without much start-up capital starting a big business by buying a few hundred sheep will not work, but over time, when things go uphill, the sheep breeding business can become very profitable. In principle, this is not even a minus, since a person who has not previously “worked” in this area most likely will not be able to cope with a huge livestock, and some nuances are clarified only after direct work. Consider the initial stage, which brings maximum problems and minimum profits - training before the fight, which will not be so difficult, because you will gain experience and be able to manage the economy as efficiently as possible.

Here exemplary business sheep breeding plan, from which you can start, of course, all prices are approximate and can vary greatly both in one direction and the other, depends on your place of residence, selected materials and cost work force. We calculate based on the "average cost" for the market - this will help determine the order of numbers (how much income, expenses and what they will go to).

So, let's say we want to get down to business right away and are ready to purchase about 300 sheep, today the cost of one individual in a wholesale purchase is about 3-4 thousand rubles, totaling about 1,000,000 rubles. To create and decorate the premises, you will need another 100,000 rubles, plus you should not forget about the pasture, where the sheep will “feed” the meat and, in general, stay most of the time (subject to the warm season), it also costs about 80 - 100 thousand rubles (price of annual rent). Employees, who will be about 4-5 people, will have to pay another ~ 600,000 rubles per year, the total amount is 1.8-2 million rubles, which is not so much for such a number of animals and volumes.

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Now let's talk about the most interesting and burning - income from the sale of goods. Oddly enough, but wool brings the least money, in a year from 300 sheep it will be possible to “collect” it in the amount of about 100 thousand rubles, sheep meat brings the most, which is valued on the market for its beneficial features, as well as the sale of whole animals - for 100 pieces you will receive (in both cases) about 500,000 rubles, in total we will receive a little more than a million rubles from the sale of 200 sheep. If it is possible to negotiate directly with the sellers (there are acquaintances involved in the sale of meat, etc.), then the income will be even greater, although the sale period will be delayed, but in some cases it is worth it!

The sales market has now become smaller, but there is still a demand for skins and wool, and it will never disappear, meat is considered the most valuable in these animals, focus on the “growth” of it, so that the weight of each carcass is maximum, thus it will be possible make good money. Other "by-products" like sheep's milk and cheese from it are even harder to sell, since such dairy products are far from suitable for everyone (specific smell, taste) and there are not enough buyers of such goods even in big cities.

Sheep breeding - where to start a business + how to look for sales points + how much money you need + what is the profitability of this idea + 5 tips from experts.

Capital investment: from 2,300,000 rubles
Payback: from 1 year.
Profitability level: up to 25%.

Sheep breeding- a popular way to generate income among villagers and farmers.

For some entrepreneurs, building a livestock business starts from this direction.

Firstly, because of the unpretentiousness of sheep.

And secondly, these animals not only give milk and fur, but also go for tasty meat.

At the same time, some are scared away by the long payback period and the fact that profitability, at best, is up to 25%.

However, with a competent approach, such indicators turn into a basis for obtaining stable profits.

Why is sheep breeding a good idea?

Obviously, the less production waste remains in the end, the better for the entrepreneur.

Sheep are amazing creatures in this regard.

Almost everything is up for sale.

    Let's take at least the fact that traditionally barbecue should be prepared from lamb!

    Of course, sheep meat can be used in completely different dishes.

    It is not as popular as chicken, but the demand is still high.

    Most agree that sheep's milk is much tastier than cow's.

    And of course, there is no comparison with store-bought.

    In addition, expensive cheeses, cottage cheese, and cheese are made from sheep's milk.

    Everyone knows about this - the warmest things are made from sheep's wool.

    At the same time, sheep are very “fruitful” in this regard: it will be possible to shear up to 8 kg from each person.

    It is believed that clothing with sheep wool also has healing properties.

    An entrepreneur who wants to scale sheep breeding can open his own woolen products production in the future.

    In addition to direct use in cooking, it is popular in the form of traditional medicine.

    Apply such a "cream" from hemorrhoids, bronchitis, joint problems.

    Sheep skins are widely used in tailoring, shoes.

    But they can also often be seen even in the interior and even as car seat covers.

    This is not the most important product for which sheep breeding is organized.

    However, it is the manure from under these animals that is considered the best.

    As you can see, everything is used in business.

How to register an activity?


legal to engage entrepreneurial activity and you can not have problems with the tax only if the breeding business is formalized.

The algorithm is simple:

  • Collect a package of documents for registering an individual entrepreneur or LLC.
  • Select OKVED code 01.22.1. It corresponds to the niche "breeding of sheep and goats".
  • Choose the form of taxation.

As you can see, everything looks extremely simple.

If you are still afraid not to cope or simply do not want to waste time, it is worth transferring the solution to this issue to intermediaries for an additional amount.

Where to start breeding sheep?

A sheep breeding business starts with planning.

You must present in the form of a simplified diagram how you will act to organize the case.

The easiest way to visualize this is in the form of a calendar plan.

Event1 month2 months
Acquisition or lease of land
Tidying up the paddocks
Equipment with drinkers, feeders
Forage storage
Personnel search
Buying a livestock of sheep
Beginning of work


Caring for sheep is relatively easy.

Sheep spend most of the day outside.

Unlike other animals, they do not need to be carefully hidden in the cold.

Nature rewarded them with personal warm "fur coats".

This allows you to invest less money in the arrangement of hangars for the flock.

They don't even need to be heated.

The main thing is the presence of a roof under which animals can hide from the rain.

Also do not forget about the installation of drinkers and feeders.

Use regular straw as bedding.

It is important that the sheep room is not damp and ventilated.

Otherwise, you may encounter livestock diseases.

Sheep breeding staff


For a start-up business, it is enough to hire a staff of 4 people.

The central character is a shepherd, who alone can serve a flock of up to 300 heads.

But still, it is better to hire two people so that they can work in shifts and perform their duties better.

Moreover, after a while, the shepherd can quit or go on vacation, and you always need to be “in working mode”.

Shepherd combines all the necessary functions, without which sheep breeding is indispensable.

He grazes them, cuts them, looks after them, monitors their condition.

At first, the owner of the business himself can play the role of a shepherd.

This will allow you to study the work from the inside and highlight the key requirements for an employee.

Usually, the shepherd is not paid a rate, but allocates a certain number of sheep for possession, bonuses and a percentage of the profits are added.

There is no need to save on this employee, because almost the entire business really depends on it.

How to search for points of sale for sheep breeding products?

Sheep breeding - that's just part of the deal.

The entrepreneur must decide on the points of sale of products.

It is better to do this in advance, because it is difficult to “set up” the sale of large lots in a short time.

Moreover, lamb is not such a popular product on our shelves.

Consider the implementation of products in detail:

    The implementation method should be chosen based on the volumes.

    Most often, it is sold directly - using points in the markets or in.

    In the latter case, you definitely need to have a quality certificate.

    Skins and wool.

    In recent years, the demand for these products began to noticeably fall, which affected the possibility of marketing products.

    This problem can be solved by opening own production clothing, footwear and accessories made from this material.

    Milk and dairy products.

    It is difficult to sell sheep's milk, cheese, cottage cheese because of the special notes of taste and aroma.

    However, "to the rescue" comes a certain benefit from their use.

    The best option is to conclude a cooperation agreement with the dairy.

    Or organize a personal eco-shop of natural, healthy products.

How much money do you need to start raising sheep?


A business cannot successfully start and develop without.

Financial section considered to be the most important.

After all, it is there that lies the answer to the question, how much money is needed to breed sheep?

Profitability and profitability of sheep breeding

As a rule, they start a business with a flock of 200-300 heads.

Theoretically, with proper business management, investments will pay off in the first season.

But as already mentioned, the level of profitability is low and the pace of development is increasing slowly.

It is possible to “recapture” funds due to the active increase in livestock.

There are prospects for this - one female can bear 1-4 lambs.

Thanks to this, in a year you will double the number of livestock (and profits).

About the features of caring for sheep are described in the video:

Interesting fact:
Sheep have a very good memory and are able to plan for the future.

    Choose the right breed.

    Analyze the market and distribution channels to understand which products to bet on.

    Each breed of sheep has its own characteristics.

    It's stupid to buy meat breeds if your main product is wool.

    Assess age.

    Well, if you are a seasoned shepherd.

    If not, use the tips of the specialists when you buy sheep.

    The average life of sheep in captivity is 6-7 years.

    Therefore, an individual older than 5 years is already considered of little use.

    Watch your nutrition.

    It's good that there are people in your state who are dedicated to the health of sheep.

    But you, as a manager, must also monitor the quality of this care and purchase high quality feed additives.

    Fertilize the earth.

    The main food for sheep is still grass that grows on the site.

    Do not forget to follow her, fertilize, clean from excess.

    Make a business plan.

    Whatever they say, this document is necessary in any case.

    The resulting costs, by the way, should be increased by 20-30%.

    The numbers are bound to be higher.

Sheep breeding is a business that has its own risks, relatively low profitability and many subtleties.

Why bother with him then, you ask?

For those who devote their lives to sheep breeding, this is not just a way to earn money, but a matter for the soul.

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A business like raising sheep takes time to get started. In addition, the reproduction cycle in this business is quite long, and therefore the specifics of doing business are special. In this article, we will talk about the main things that you need to consider before creating your own flock. Find more business ideas in the article:

Raising sheep as a business: what you need for this

Before starting such a business, calculate the forces and means and make sure that you can raise sheep. After all, this difficult task will have to devote a lot of time. For breeding sheep you will need:
paddock
Pasture
Food for the winter
To begin with, you will need a large area in which the sheep will live and graze. Pasture can be rented, but you will need your own land to build a paddock.
In the summer, the vegetation in the pasture serves as food for the sheep, and in the winter it will be necessary to procure food for the animals. As food for sheep in winter, hay (500 kg per head), root crops (another 500 kg per head) and 100 kg of concentrates are stocked.

What breed of sheep to choose?

Buying one lamb will cost you 3-5 thousand rubles. To breed a whole flock with the prospect of profit, you need to buy at least 30 heads.
For residents of the middle lane, it is most profitable to buy sheep of the Romanov breed. This is the most common breed of sheep, which is valued for its fertility. Romanovskaya sheep at one time produces 3-5 lambs, while other breeds are not able to give birth to more than 2-3.
She will live up to 25 years on average, but for raising sheep as a business, these animals are not kept longer than 8 years. This is due to the aging of the body of sheep after the age of eight, as a result of which the meat of the animal becomes no longer tasty, and the quality of wool and offspring is deteriorating.

It turns out that in this business, the reproduction cycle in the field of meat sales is 7-8 years. Lamb meat is also valued for its beneficial properties and taste. Therefore, the owners of the flock sometimes slaughter the lambs. Only the weight of a lamb is 7 times less than the weight of an adult, so it is not profitable to specialize only in the sale of its meat.

Making a profit from sheep breeding

The content of the whole flock brings income from several sources:
Sale of lambs
Sale of wool
Sale of adult meat
Sale of lambs. The gestation period for Romanov sheep lasts about 5 months. At one time, such a sheep produces up to 5 cubs. At good conditions keeping a sheep of this breed is able to bring offspring twice a year. It turns out that up to 10 lambs per sheep can be obtained annually, and up to 290 from a whole flock. In monetary terms, this offspring brings about 1.45 million rubles annually.
! About 25-30 sheep should be counted on one ram. And in our herd of 30 goals, one male will be enough.
You can mate these animals at the age of one year. The ability to bear a fetus and give birth to it in a sheep appears a little earlier - at the age of 7 months. But practitioners advise not to start mating immediately after the maturation of the female, since at this age the animal is not able to give birth to healthy offspring.

Sale of wool. The Romanov breed belongs to the wire-haired species, the wool from which is obtained three times a year. Up to 3 kg of wool can be combed from one sheep at a time, that is, 9 kg annually. From a flock of 30 heads, they receive 270 kg every year. If you sell wool for its average price 200 r per kg, it turns out about 54,000 rubles.
Sale of meat. Sheep at the age of 7-8 years are selected for sale for meat. That is, this type of income will be available to you, as a business owner, years later. By this time, a sheep is gaining weight up to 50 kg, and a ram - up to 80 kg. The total weight of meat for sale from the entire flock is 1,530 kg, which is about 306,000 rubles.

Conclusion

Most main source income from keeping the flock is the sale of lambs. Getting wool and meat from adults brings much less profit, so when choosing a breed, you should focus on its fertility. Therefore, the Romanov breeds are the most popular for breeding.


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