average investment > Sheep Breeding: a Profitable Business in the Countryside for the Beginning Farmer
Sheep Breeding: a Profitable Business in the Countryside for the Beginning Farmer
Sheep breeding as a business is a successful and profitable idea for opening a business. Lamb has always been in great demand, which in many regions of America exceeds supply.
Business of sheep breeding – relevance and prospects
Sheep breeding is most common in the Caucasus, but this business can also be opened from scratch in the middle belt.
In this article we will consider where to start sheep breeding as a business for a beginning farmer.
Advantages of raising sheep
Let’s list the following advantages of sheep farming:
small start-up investments, availability of fodder;
sheep are unpretentious, tolerate frosts well, have strong immunity, do not need care;
high profitability – if a strategy is correctly built, in 2-3 years the money invested will pay off, and sheep breeding as a business will begin to be profitable;
good demand for the product;
fast breeding and cultivation – a sheep grows about 200 pounds a year. And females give birth twice a year;
low competition: the sheep breeding niche is not even half filled;
it is possible to get a grant for agriculture and support from the state – low interest for a loan and a preferential tax rate (not in all regions).
Market Analysis
Niche sheep breeding as a business is not filled, the direction is quite promising and in the field of animal breeding demand always exceeds supply.
Sheep breeding is most common in the Republic of Dagestan, Kalmykia and Stavropol Krai.
In other regions, sheep breeding is not so popular. It is private farming that is developed in the above mentioned regions.
It is important for the beginning farmer to save money, so it is worth choosing regions with fertile soil, where healthy and succulent grass grows.
Organizational part
Sheep farming as a business for the beginner requires the following steps.
Register the business and choose a taxation system.
Find suitable land and arrange everything for keeping sheep.
Form a staff, choose staff.
Select and buy sheep
Prepare an advertising campaign, start the business.
Registration of activity
As we have already written above, when home sheep breeding for business, you can choose a sole proprietorship or IE.
The next step is to obtain a permit from the SES, and if it is planned to build pens, then also from the fire department. It is best to choose simplified taxation.
In order to avoid risks, it is advisable to insure the animals.
Although sheep are considered unpretentious and resistant to disease, you can not rule out the death of livestock, and insurance will help to avoid bankruptcy.
Finding suitable land for the farm and pastures
For the first time, you can rent land rather than buy it outright. Firstly, renting will save the initial investment, and secondly, if for some reason the activity will have to close, with a rented land to do it much faster.
The best place to choose, as we said above, with good and fertile soil. In addition, there can help with calculating the optimal flock of flocks.
Also on the territory should be a pen, where the animals can hide from the weather, and in the cold season to warm themselves. For heating will be suitable stove-burner.
There should also be drinkers and access to food on the premises.
Staff
At the initial stage, the duties of the shepherd, the administrator and the zootechnician can be taken on.
But the tasks of the farm hand and veterinarian should be delegated. An auxiliary worker takes care of the animals, feeds them, and takes care of the pen.
A veterinarian is needed only when necessary, so you do not need to hire such a specialist in the staff.
In addition, if you plan to sell wool, you need to hire workers for shearing.
Marketing
Business plan for sheep breeding must necessarily contain a marketing part.
To determine the selling prices of products, you need to look at competitors’ offers and choose an average cost.
For more accurate calculations, it is necessary to identify the cost of your products, to simplify the task, you can invite a specialist.
To the amount you get, add a markup, which is about 30%.
If you plan to start a sheep breeding business, it is advisable to study the records of already established entrepreneurs, read thematic forums and other Internet resources.
Procurement and distribution of goods
It is possible to establish marketing channels already when buying the first batch of sheep, in the early days.
Customers are most often stores, supermarkets, cafes, restaurants and other catering outlets.
It is necessary to conclude a contractual relationship with buyers, which specifies the cost, terms and responsibilities of the parties.
Sales can take place in several ways. The first is the sale of live sheep for slaughter, the second is the sale of dressed carcasses.
The first option is more suitable for beginners, but it also loses in value. Over time it is more profitable to buy systems for slaughtering and sell ready-made meat.
Payback period for the business
If we proceed from the above calculations, the payback period will be a year, the second year the business will be profitable.
All figures are approximate, without regard to force majeure.
To answer the question, whether sheep breeding as a business is profitable or not, you should understand that the business will be more successful if you are willing to work on the farm yourself.
The secrets of building a successful sheep farming business
Drawing up a detailed business plan, having the knowledge and help of experienced people will help beginners to avoid possible mistakes in the early stages.
