raising livestock for fun and profit sharon fox gamble extension agent, iv volusia county extension...

Raising Livestock for Fun and Profit

Sharon Fox Gamble

Extension Agent, IV

Volusia County Extension Service

Huge Subject

• Not enough time to go into each livestock class individually

• Will cover just the tip of the iceberg with items that are common among classes of livestock

Livestock Definition

• Domestic animals raised for home use or for profit

(American Heritage Dictionary)

Pet

• A domesticated animal kept for pleasure rather than utility

Bichon Frise

Pet

But What Happens when Pets becomes dinner?

Versus Livestock

Develop a Business Plan

• Do your research– Learn everything about

your product– How to Label– How to cook it– How to process it– How to advertise it– How to package it– How to grow it– How to feed it

• Where are your MarketsAre you zoned for it?

– Are you close to processors

– Is your target market close?

• Affluent

• Ethnic

• Are you zoned for it?

Locating Your Operation

• Check with your local county/city zoning office to determine what classes and how many animals you can have.

• A1, A2, A3, etc.

• Many municipalities don’t permit livestock

Not Fun

≠A Visit From the Zoning Compliance Officer

Especially after you have made a significant investment

Laws

• Zoning

• Processing– USDA– State Health– Marketing system requirements

• Labeling

Livestock

• Hogs• Chickens• Goats• Horses• Cattle• Sheep• Llama• Rabbits

Marketing

• Commercial outlets– Livestock Markets– Easy but usually poor return

• Direct Sales– Retained ownership– Sell directly to end user

• Niche or specialty– Organic– Grass fed– Generally must develop– Cooperatives

It is not what you want to raise…It is what someone wants to buy

Profit Margins

• There is no get rich quick scheme in raising livestock

• Profit margins are “thin”

Get Rich Quick Schemes

Emu’s– Breeder’s market

versus production market

Vermiculture

Income Potential

• Competing with large scale, mass production facilities

• Economies of Scale– The more handling

and the smaller volume the more the expense

If You are going to raise livestock…

• Learn the production side

• Learn to “read” livestock

You must love to raise livestock in order to be successful

You might find you love the babies being born but can’t stand the harvest

Up Side

• Ethically a good way to raise children– Teaches responsibility– Valuable life lessons– Decision making

• Connected to the earth

• Therapy

Down Side

• 365 day a year job– Limits ability for

vacation– Animals need fed even

though they aren’t producing

Alliance Feed Yard

Most Small Scale Production

• Is better suited for highly specialized or Niche Markets

Niche Markets

• Organic• Grass fed• Corn fed• Hormone free• Free range• Guaranteed tender• Locally produced• Ethnic foods• Custom slaughter

Every thing old is new again!• HOMESTEAD HANDBOOK • The chickens turn out to forage for themselves on our place. They don't run

wild all over, you understand: A snug henhouse lean-to along the outside wall of the horse's barn stall lets the flock come home to roost at night and to shelter through a heavy rain. During our hard New England winters, the flock is forced to coop up and live on dry stores (homegrown, whenever practical), like the rest of us. But from the first warm days of March till the snow returns in earnest late the next December, our chickens range—free as a bird, you might say—to work for their own supper. Cash sale or barter of extra eggs and an occasional dressed capon more than pay for what feed and equipment needs buying, so the poultry products our family enjoys are free for the time spent looking after the flock—perhaps half an hour a week, egg collecting included (once the operation is up and going on its own).

• There's nothing new about running poultry free, of course. It used to be done that way all over. A natural part of every old-time farmstead was a half-wild flock of chickens scratching around the barnyard and fields after bugs, native seeds and berries, plus whatever feed grain got past (or passed through) the larger farm animals.

• Mother Earth News 1984

When it comes to down to it

• Your creativity is your only boundary. It is up to you to create your market

• Provide consumers with something they are willing to pay for.

Cash versus Non-Cash Income

• Cash paid directly to you

• Cash you save – Alters property tax

• Consume your product– Saves food costs– Personal satisfaction– Family development

How Much Should I Charge?

• Start with your animal, and work your costs backward.

• Revise and refine to determine your break-even costs

• Once your breakeven costs are known, you can determine your price– Everyone has different breakeven costs

Labels and Labeling

• If you expect to cross state lines, you have to have a federal label – A federal label comes from

the federally inspected processing plant

• Your label is attached to your processing plant!

• The plant that does your processing applies for your label

– Your plant may or may not have done this before so be patient

Organic vs. Natural(USDA 1999)

• Natural beef: No artificial additives, minimally processed

• Organic beef: No hormones, antibiotics, pesticides, and fed only organically raised feed. Processors must be certified as well

Organic Livestock

• National Center for Appropriate Technology (NCAT) Organic Livestock Workbook

• Organic Certification– Producer– Processor

Organic Certification

• Certification is done by a third party• Apply online• Inspection

• http://www.ccof.org/certification.php

Processing• Know the laws

– Illegal to sell un-inspected meat

• Know the limits of what you can do based upon your processor

Insurance

• Some customers – mostly retail stores, restaurants will require you to carry product liability insurance.

• Some customers – mostly retail stores, etc may require some additional processing above the letter of the law!

Herd Health

• Health plan consistent with Marketing plan?

• Vaccinations• Isolation

Facilities

• Barns

• Pens

• Water

• Feed

• Environmental regulations for waste disposal

Transportation

• Of feed• Of animals• Location of Acceptable Processors for

Marketing program• Of Product

• (If your product travels more miles than a UPS truck, you might want to reconsider your location – Sharon Gamble)

Space Requirements

• 3/acres per cow• 3 acres per horse• 1 acre per 6 ewes /goats• Ewes and lambs / 20 sq’• 30” x 36”x18” rabbit cage for medium

breed• SPACE requirements differ and careful

evaluation needs to be made prior to developing a business plan

Perspective

• 100 cows = 300 acres

• 3 cows = 10 acres

• 100 calves = 50 acres

• 100 goats = 16 acres

• 3 horses = 9 acres

• 100 sheep = 16 acres

• 100 rabbits = 900 sq’

Conclusion

• Livestock can be raised for fun and for profit although, profit margins are narrow

• Carefully develop a business plan• Try raising livestock before investing heavily• Carefully consider your location to needed

assets such as processors and transportation issues

• Niche markets are good for small highly specialized products

Remember, it is not what you want to raise…It is what someone wants

to buy

Additional Information

• For more information visit the Small Farms web at http://smallfarms.ifas.ufl.edu

• Take a virtual field day tour by visiting the Virtual Field Day web at http://vfd.ifas.ufl.edu

This presentation brought to you by the

Small Farms/Alternative Enterprises Focus Team.

The End

Questions?