SmallScale Livestock Production Raising Sheep Goats for Profit

Small-Scale Livestock Production Raising Sheep & Goats for Profit This program was funded by the USDA National Institute for Food and Agriculture (NIFA) Beginning Farmer and Rancher Development Program (BFRDP) under award #2009 -49400 -05871.

There are unique production and marketing opportunities available to smaller-scale sheep and goat producers; however, before you get started, you need to consider…

New marketing opportunities Environmental stewardship Production practices Safe practices Business licensing Zoning restrictions

New marketing opportunities • Leveraging your herd management • Overview of certification programs • Evaluating program cost & benefits

Certification and Marketing • Consumers are interested in how livestock are raised, handled & processed • Certification may allow you to secure a premium for product or expand market reach – Such as specialty food stores and restaurants that require that their animal products be sourced from humanely raised animals • How you manage your animals (your stewardship practices) can influence your marketing opportunities

Animal Welfare Certification Programs Animal Welfare Approved USDA Organic American Humane Certified Food Alliance Certified Naturally Grown HFAC Certified Humane • Distinguish livestock products as coming from humanely treated animals • Certified production systems often are more expensive than non-certified • Be sure to keep in mind the production costs and marketing benefits of following a certification program

Possible Program Specifications for Herd Management Outdoor access Indoor air quality & ammonia levels Castration, tail docking on sheep, dehorning, ear marking Minimum bedded space; floor space Transport time for slaughter

Evaluating Certification Programs Goals Certification Fees Time Commitment Production Costs • Make sure program goals align with yours • Understand the certification process & animals covered • Understand the program’s fee structure • Calculate the time required to achieve and maintain certification • Estimate how your production costs may change under certification

Evaluating Certification Benefits Access to new markets that seek certified products Possibility of charging higher prices for products Access to marketing materials and support from certifying organization Ability to connect with customers based on their values Certifier may help grower improve safe production and handling techniques

Evaluating Certification Costs More pasture area may be required for each animal enrolled in the certification program You may need more land Changes to animal health care You may need to remove from your program sick animals that you vaccinate or medically treat Changes to animal feeding You may need to use feed from specific sources or follow certain ingredient guidelines Changes to animal housing You may need to build additional facilities to allow more space per animal More detailed record-keeping on animal health and raising You may need to allow more time or hire someone to do this

Linking Production & Marketing Decisions • Choose a breed that is appropriate for the markets you will serve (meat, fleece, milk) • If you are producing meat animals, do you have a slaughter and processing facility that will work with your level of production and cuts you desire? • Know who will buy your product before you produce it • Take a course in Good Agricultural Practices (GAPs) – To understand how to prevent or reduce contamination of your products throughout production, processing and sales

Environmental stewardship To be a good neighbor and food producer: • Manage manure properly • Monitor storm water runoff • Dispose of mortalities safely

Good Stewardship Leads to Better Business Management Minimizing: • Animal and manure odors • Dust • Insects & predators Using best management practices to: & • Dispose of dead animals • Mitigate runoff = Leads to a: • Cleaner production operation • Healthier herd • Good neighbor relationships

Manage Manure Properly Control unpleasant odors and dust Know the nutrient content of your manure, apply based on nutrient/fertilizer value, and keep records Spread manure away from wells, springs, and watercourses When possible, till in fall-applied manure Keep piles of manure, spent bedding and spoiled feed away from watercourses

Monitor Storm Water Runoff Conduct annual tests for bacteria and nitrates in well water Locate livestock operations away from wellheads; protect wellheads in pastures (consult local/state wellhead protection laws) Use buffers and setbacks to protect surface waters from direct contact with animal waste and process waste water Divert clean water (run-on) around production and waste storage areas using berms, ditches grassy swales, roof gutters

Dispose of Dead Animals Safely Abide by state/local laws Render within 48 hours, where service is available (dead animals used to create a new, usable product) Compost in pile or bin, at high temperature (130 o-150 o. F) Bury on farm, at least 300 feet away from a watercourse and 3 -ft deep, above the wet season high watertable Bury/dispose at a licensed landfill

Production practices • Maintaining a healthy herd • Managing sick animals

Managing for Healthy Animals Includes Providing… • Housing that is clean, ventilated and predator proof • Adequate enclosure and fence height, especially for goats • Access to clean water at all times • Nutritionally complete food, including forage, salt & minerals • Appropriate parasite control • Protection from extreme temperatures, including water heaters for winter, and shade during hot months

As a Good Herd Manager, You Should: Observe your animals and learn what behaviors are normal, so you recognize unusual behaviors indicating a possible health issue Check your animals regularly-twice daily is best for monitoring health and behavior Become familiar with common small ruminant health issues and diseases For the breed you are raising, know the lambing/kidding age and years of reproductive capability

As a Good Herd Manager, You Should: Meet the nutritional needs of your animals at their current state (during gestation, lactation, maintenance, etc. ) Provide some mental stimulation and an enriching environment for your animals Keep breeding records, as well as animal health records Have a plan for surplus animals (beyond your breeding, meat or milk animal needs since the extra feed is a cost to you)

Taking Care of Sick Animals Work with a local veterinarian with small ruminant experience (if you live in a remote area, you may need to learn basic care practices) Have a herd health plan & vaccination schedule Develop a quarantine procedure for sick animals; watch for news alerts from your state veterinarian’s office In case of disease outbreak, have a plan for cleaning and disinfecting vehicles & equipment, and protecting your employees Develop a disposal plan for dead animals Keep detailed records of your animals’ health

Safe practices • • • Worker safety Good Agricultural Practices (GAPs) Milk and meat products

Safe Handling: Worker Safety • Sheep and goats can carry organisms that may cause infection and disease in humans When handling animals or their wastes, wear protective clothing, wash your hands afterward, & treat all cuts and abrasions immediately • Both species can jump, bite, kick or run into their handlers, causing injury Learn proper handling techniques and never turn your back on animals in a pen Be aware of potential injuries from contact with gates, chutes, wire pens, and electrical sockets

Safe Handling: Good Agricultural Practices (GAPs) • On mixed crop/livestock farms, keep livestock out of food production and handling areas to prevent contamination of food products • Ensure that animal wastes do not directly or indirectly contaminate drinking or irrigation water • If you produce compost from your livestock manure: 1. keep records of composting dates and production process, 2. separate raw and finished compost, and 3. store compost on high ground, away from fields and

Safe Handling on Farms with Crop & Livestock: GAPs • Wash and sanitize vehicles and equipment used for handling or transporting livestock before transporting food for human consumption • Make sure workers change clothes and wash their hands after handling livestock and before handling food crops

Safe Handling of Milk and Milk Products • Refrigeration is most important factor in maintaining safety of milk (Grade A milk must be maintained at 45 °F or below), as well as butter, cream, whipped topping, sour cream, yogurt, cheeses, etc. • Temperatures must be maintained through distribution, delivery and storage • Note that safe refrigerator storage times differ depending on the product, and only butter, ice cream and pasteurized fresh whole or skimmed milk may be frozen

Safe Handling of Meats • Remember to have quality control over your product from harvest through processing, storage and distribution • How you handle the product affects: – how safe it is for your consumers – your product’s quality – your product’s shelf life

Business licensing Which licenses you need depends on: – Whether you are selling milk or meat – Where you plan to sell your product

Getting Permission to do Business • County, municipal & Homeowners Association or Neighborhood/Unincorporated Community Covenants • Business registration (typically from your state’s Secretary of State, although some cities & counties also require business registration) • IRS Employer Identification Number (EIN, if you have employees) • State taxes (sales tax, income tax, workers’ compensation, unemployment insurance) • City/County sales tax license • Business licenses (depending on your sales outlet and products(s) offered for sale) To check on your state’s tax and licensing requirements: http: //www. sba. gov/content/learn-about-your-state-and-local-tax-obligations

Licensing for Milk Sales • Federal regulations define milk and milk products by their ingredients. – This is important for grading and labeling, and for knowing which license you need for your business. • For goat and sheep milk production and sales, all states have different licensing requirements and permit costs. • In many states, raw milk sales are illegal and all milk & milk products sold must be pasteurized. – Contact your state department of public health to learn about regulations in your state – Educate yourself on the food safety issues surrounding raw milk production

Regulations for Pasteurized Milk Grading • Use FDA/USDA guidelines Labeling • All bottles, containers & packages with milk or milk products must be labeled, indicating the common name of the hooved animal. See FDA guidelines. Refrigerating • Store between 33°F and 41°F Transporting • Keep clean and sanitary • Maintain refrigeration

Licensing for Retail & Wholesale Meat Sales To sell packaged meat direct to the consumer • Animals must slaughtered & processed under continuous inspection (either Federal or State inspection systems)1 To sell packaged meat to retail buyers, wholesale or farmers’ market • Must use Federal or State inspected facility • Required: Labeling – i. e. , Net Weight using Standard Weights and Measures 2 • Optional: Grading 1 - Only Federally inspected and certain state facilities are approved for out of-state sales. 2 - Your processor can help guide you through the packaging and labeling process.

Custom Exemption to USDA Slaughter and Processing Requirements, for Direct Sales Sold before slaughter to new owner AND Labeled NOT FOR SALE OR Processed for nonhousehold use AND paying guests

One More Thing About Meat and Milk Sales… Many farmers’ markets require vendors to carry their own liability insurance policy for product sales ? For more info on licensing and regulations, check with your local Extension office or state Department of Agriculture

Zoning restrictions • Zoning is a restriction on the way land can be used • Zoning regulations may include where you can (or can’t) raise animals

County & Municipal Zoning Regulations • Present your plans early―your local planning and zoning board may have ideas to make your business more viable or to protect your resource base • Once you are in operation, remember to consult local officials before making any changes to your business (to structures or to products you sell)

County & Municipal Zoning Regulations • Larger livestock (including sheep and goats) typically prohibited in nonagriculturally zoned county & municipal districts • Your Homeowners’ Association may also have restrictions on livestock • Many counties & municipalities allow private ownership/production of a small number of sheep and goats in agricultural districts. However, animal slaughter may be prohibited. Always verify the types & numbers of animals legally allowed on your property before starting your business

Regulations in districts where commercial livestock production is permitted may include: Commercial or agricultural permit requirements Limited number of animals allowed; pasture specifications Permit fee often required Size and type of animal structures; location on your property Standards for odor, noise, dust Limited or no allowable slaughter on premises

Building a Profitable Business Involves Building Customers through Building Community Building Business Processes through Marketing Good resource & animal stewardship Safe handling practices Good neighbor relations Research & compliance with regulations and certifications that lead to a sustainable business!

Questions?

Acknowledgements • Blake Angelo, Colorado State University Extension, Urban Agriculture • Thomas Bass, Montana State University Extension, Livestock Environment • Dr. Marisa Bunning, CSU Food Science and Human Nutrition • Emily Lockard, CSU Extension, Livestock • Dea Sloan, CSU Agricultural and Resource Economics • Martha Sullins, CSU Extension, Agriculture and Business Management • Dr. Dawn Thilmany, CSU Agricultural and Resource Economics • Heather Watts, CSU Agricultural and Resource Economics • Wendy White, Colorado Department of Agriculture • David Weiss, CSU Agricultural and Resource Economics

Photo Credits – flickr. com All photos used under the Creative Commons License A Roger Davies 4670542941 Bryan. Alexander 3348954673 ynskjen 423389418 Kkirugi 4923613664