wv sheep management project “activities & update”

WV Sheep Management Project

“Activities & Update”

FUNDING STRUCTURE

• WV STATE LEGISLATURE

• 1998-99 TO PRESENT

• $150K/YEAR

• TWO PERSONNEL PLUS OPERATIONS

COOPERATION

• UNIVERSITY

• EXTENSION

• WV DEPT OF AGRICULTURE

• USDA/APHIS

• INDUSTRY

INITIAL OBJECTIVES

• REDUCE PREDATION LOSSES THROUGH A SHIFT IN LAMBING FROM SPRING TO FALL

• OUT-OF-SEASON BREEDING• MARKETING STRTEGIES• TECHNOLOGY TRANSFER• EDUCATION• RESEARCH POTENTIAL

CURRENT FOCUS

• SMALL RUMINANTS

• INFRASTRUCTURE-INVENTORY

• MARKETING- PROFITABILITY

• PERFORMANCE TESTING

• PRODUCTION RECORDS

• PREDATION

• PARASITISM

MEAT GOAT SURVEY

• ASSESS THE SIZE OF THE INDUSTRY

• IDENTIFY AREAS OF INTEREST- WHERE CAN EDUCATION/RESEARCH HELP?

• COLLECT BASELINE MARKETING DATA

1 1.5 2 2.5 3Mean Responses of Producers

Marketing Info. ServiceTarget Niche Markets

Special State-Graded SalesTransport Pools for Local Auctions

Forward ContractingMarketing Pools for Local Auctions

Transport Pools for Regional Auctions

Marketing Pools for Regional AuctionsTarget Restaurants

Develop Branded ProductOther

Mean Responses for Level of Interest in Potential Marketing Alternatives

1 1.5 2 2.5 3

Mean Responses of Producers

Health and Parasite ManagementPredator ManagementFormal Marketing PlanGenetics and Selection

Budgeting and BE AnalysisQuality and Yield GradeFall Kidding Programs

Coordinated Marketing Organic Production

Synchronization TechniquesOther

Areas of Interest Among Producers to Improve Viability of the Goat Enterprise

1 1.5 2 2.5 3

Mean Responses of Producers

Low PricesParasite LossesProduction Cost

Markets Avail.Knowledge

Labor AvailabilityLand AvailabilityPredator LossesDisease Losses

Genetics and SelectionAbsence of Coop

Forage and Nutrition Mgt.Absence of Grading System

Breeding Stock Avail.Breeding Limitations

Other

Producers Perception of Barriers to Growth and Profitability of Goat Enterprise

Looking at goat prices at WV Livestock Auctions, we observe:

• Discounts for heavier goats (>80lbs = $3.30/head).

• Discounts for over-conditioned goats (aged goats = $5.72/head).

• Premiums for lot sizes in excess of 20 head (21-40 head = $4.70/head)

• Premiums for selling during Jan-June ($8/head)

Situation:

• Sheep numbers have declined throughout the US

• Lamb demand > supply in some months

• Lamb prices, particularly regional prices, have been relatively high during recent years

West Virginia:

• Abundance of grass and forage

• Proximity to high demand markets

• Weather conducive to fall lambing

Challenges:

• Lack of infrastructure

• Predators

• Parasites and anthelmintic resistance• Part-time farmers (labor)

– 2001 FSMIP survey: 63.2%

• Small flock sizes and breed diversity– supply & product inconsistency

• Seasonal production (supply)

• Seasonal markets (demand)

Background:WV Sheep Management Project

• Established: 1998

• Cooperative Effort: WVU, Extension Service, WVSF, WVDA, USDA:Wildlife Services, and WV SHEPHERDS!

• Primary Funding: WV State Legislature

• Headquarters: Franklin, WV

• Initial Focus: “Increasing Farm Income by a Strategic

Shift in Breeding Time for Ewe Flocks”

Rationale for Proposed Shift in Breeding/Lambing Time

• Sell lambs during periods of higher prices• Reduce predator and parasite losses• Consolidate labor• Produce more uniform lamb crops• Provide a more consistent supply of lambs• Increase income for farmers

Activities:

Introduce new technologies Provide producer services Provide educational opportunities Serve as an information resource & conduit Develop industry relationships and alliances Support WVU research and educational efforts

• Estrous synchronization

• Breeding soundness exams

• Ultrasound pregnancy diagnosis• Parasite Management (FEC/PCV)

Update: New Technologies& Producer Services

Update: Provide Educational Opportunities for Producers

Program Topics:• Reproductive Management

• Nutritional Management

• Forage Management

• Flock Health– Parasite Control

– Foot Rot Control

• Genetics

• Predator Management

• Marketing– Ethnic Markets

– Mainstream Markets

Update: Serve as an Information Resource & Conduit

News Ewe Can Use Web site <www.caf.wvu.edu/avs/sheep>

Sheep Safety & Quality Assurance Program (SSQA) National Sheep Improvement Program (NSIP) Wool Outreach Program 201 Lamb Meat Adjustment Assistance Program (LMAAP) Wool & Mohair Market Loss Assistance National Scrapie Eradication Program Lamb Promotion, Research, & Information Order (“check-off”) Wool & Mohair Marketing Assistance Loan Program (LDP)

Update: Develop Industry Relationships & Alliances

• WV Wildlife Services

• WV Shepherd’s Federation

• WV Purebred Sheep Breeder’s Association

• WV/OH Sheep & Wool Festival

• Northeast Sheep & Goat Marketing Program

• ARS: Appalachian Farming Systems

• WV Department of Agriculture

• American Sheep Industry Association

• Virginia Tech & The Ohio State Universities

• Maryland Cooperative Extension Service

Update: Graduate Education and Training

• (1999-Present)– 1 Master’s Thesis

– 3 Doctoral Dissertations

– Refereed Manuscripts

– National and Regional Abstracts

– Research presentations at national/regional meetings

– Numerous opportunities for hands-on experience for other graduate and undergraduate students

Update: Proposed Shift in Breeding Season

0

20

40

60

80

100

Jan Mar May Jul Sept Nov

Months

% o

f Ew

es in

Rep

ro. A

ctiv

ity

56

58

60

62

64

66

68

Lam

b P

rice

s

Reproductive Activity Lamb Prices

Breeding

Lambing Market

Comparison of In- and Out-of-Season Production Systems on Cooperating Farms

Variables Out-of-Season In-Season

Predation loss 2-3% 4-6%

Veterinary cost/ewe $2.58 $5.18

Total feed cost/ewe $67.11 $57.71

Fertility 75% 89%

Mortality 6% 10%

Market price/lb $0.93 $0.75

Profit $43.17 $39.01

Update: Increase Farm Income

Case Study: Out-of-season Breeding

Nelson Farm

Location: Lewisburg, WV

Flock Size: 200 maiden ewes

Breed: Polypay ewes

Suffolk, Dorset, Polypay rams

Breeding: Early June

Year 1 Summary*:

Pregnancy rate = 93.9%Ewes Lambing = 89.8%Lambing % = 150%(*ewes bred as yearlings, 1st time lambing)

Year 2 Summary:Pregnancy rate = 92.2%Ewes Lambing = 92.2%Lambing % = 178%

Estimated Breeding Dates Nelson 2002

All Ewes

0

2

4

6

8

10

12

14

Date

Nu

mb

er

of

Ew

es

Group I cycle 2

Group II cycle 1Group I cycle 1

Update: FSMIPUpdate: FSMIP“Lamb Marketing “Lamb Marketing Information Project”Information Project”

Objectives:• Characterize lamb production and supply in WV

• Characterize the marketing environment

• Identify current marketing practices and outlets

• Assess producer marketing needs and concerns

• Assess producer interest in alternative marketing programs

SamplingSampling

Response rate: 338/925 = 36.5%

Counties represented: 47/55

2001 breeding sheep

inventory: 54%

2001 Lambs marketed: 55%

30 different purebred breeds reported30 different purebred breeds reported

• Suffolk or Suffolk X– ewes: 63.1% rams: 49.5%

• Dorset or Dorset X– ewes: 32.9% rams: 28.7%

• Cheviot or Cheviot X– ewes: 9.5% rams: 9.4%

• Hampshire– ewes: 5.2% rams: 6.5%

• Long or colored Wool– ewes: 2.5% rams: 6.5%

• Hair Sheep– ewes: 1.8% rams: 2.9%

$70

$74

$78

$82

$86

$90

JAN MAR MAY JUL SEPT NOV

Months

Pric

e/cw

t

0

10

20

30

40

Sup

ply

('00

hd)

Price Supply

Average Monthly Supply & Prices

WV Auctions (1994-2000)

Number of WV Lambs Reported Sold by Month(survey respondents)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Nu

mb

er

Passover, Western & Orthodox Easter

Eid Al Adha

Start of Rosh HashanahYom Kippur

Start of Ramadan

Start of Hanukkah, Eid Al Fitr

“Fall Run”

Christmas(+)

(+)

(+)

(+)

(+)

(-)

(-)

3/6

4/8, 4/15

9/8, 9/17

11/17

12/17

12/10

12/25

Holiday Calendar for Marketing Lamb and Goats2001 2002 2003 2004 2005

Eid al Adha March 6 February 23 February 12 February 2 January 21

Islamic New Year March 26 March 15 February 22 February 10 January 31

Start of Passover April 8 March 28 April 17 April 6 April 24

Christian Easter April 15 March 31 April 20 March 27 April 16

Orthodox Easter April 15 May 5 April 27 April 11 May 1

Start of RoshHashanah

September 18 September 7 September 27 September 16 October 4

Ramadan Begins November 17 November 6 October 27 October 15 October 4

Eid al Fitr RamadanEnds

December 17 December 6 November 26 November 14 November 3

Start of Hanukkah December 10 November 30 December 20 December 9 December 26

Influence of Ethnic Holidays

Ethnic Consumers Jewish Muslim Greek Italian Latino Caribbean Pakistani West Indian West African

Market

Italian

Greek

Muslim

Freezer LambKosher (forequarters only)

Mainstream

Weight Preference

35-45 lbs

45-60 lbs

60-90 lbs

100-120 lbs

100-125 lbs

120+ lbs

Consumer Markets

Marketing Philosophy….

…produce for a market

…market what you produce

Percent WV Operations that Sold Lambs by Market Outlet

5.4%

1.3%

1.3%

1.6%

2.6%

10.9%

16.0%

20.4%

22.0%

32.6%

40.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

Other

Electronic Auction

Directly to a Feeder

Niche or Specialty Market

Directly to a Packer

Direct Market to Consumer

As Club Lambs

As Breeding Stock

Livestock Dealer

Out of State Livestock Auction

WV Livestock Auction

Ou

tle

t

Percent

Percent WV Lambs Sold by Market Outlet

1.1%

0.3%

0.4%

0.4%

1.3%

3.9%

4.1%

6.4%

24.5%

28.8%

29.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Other

Niche or Specialty Market

Electronic Auction

Directly to a Feeder

Direct Market to Consumer

As Club Lambs

Directly to a Packer

As Breeding Stock

WV Livestock Auction

Livestock Dealer

Out of State Livestock Auction

Ou

tle

t

Percent

Average Monthly Lamb Prices at WV Markets(1994-2000)

$20

$40

$60

$80

$100

$120

Jan Mar May July Sept Nov

Month

$/c

wt

Alderson Buckhanon Caldwell MarlintonMineral Wells Moorefield Ripley RivertonWeston Terra Alta

Average Slaughter Lamb Prices: West Virginia (all markets) and New Holland, PA

(1996-1999)

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

$110.00

$120.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

$/cw

t

WV 100-125 lbs NH 90-115 lbs NH 115-125 lbs

Interest in Potential Marketing Alternatives

0 100 200 300 400 500 600 700

Other

Vertical Integration Program

Market Lamb Meat Via the Internet

Agri-Tourism

Develop a Branded Retail Lamb Product

Electronic Marketing

Market to WV Resort Area Restaurants

Forward Contract Lambs Directly to a Packer

Target Specific Ethnic Markets

Develop Natural/"Grass-fed" Retail Product

Lamb Marketing Information Service

Special State Graded Sales at WV Sale Barns

Pool Lambs for Transport to Terminal Market

Local Lamb Marketing Pools

Fac

tor

Index

Lamb Pools

Transportation Pools

What’s Next?

Based on survey results and initial market price analysis, a transportation pool pilot project is being developed to transport lambs to New Holland, PA to market.

• New Holland is the largest market for lambs in the region serving a number ethnic markets in the Northeast.

• Prices received at New Holland tend to be higher than prices received at WV livestock auctions.

• The pilot project will track market prices, the cost of transportation and shrink, and develop recommendations based on estimated differences in potential net income for different weights of lambs and for different

marketing periods.

Business & FinanceSunday, Dec. 15, 2002

Saving the

sheep farmBreeding experiment helps

West Virginia hold onto a piece of U.S. lamb market

by Vicki Smith

The Associated Press

MORGANTOWN -

6 January 2003

Meat & Livestock Australia: “US State Targets Lamb Productivity”

Recognition: Local & International