lamb production costs 2016 - province of manitoba · represent the average cost of production in...
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Guidelines for EstimatingLamb Production Costs 2016in Manitoba
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April, 2016
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Guidelines for EstimatingLamb Production Costs
Based on a 500-Ewe Flock
This guide is designed to provide you with planning information and a format for calculating costs of production of a ewe lamb enterprise in Manitoba. General Manitoba Agriculture recommendations are assumed in using feed and veterinary inputs. These figures provide an economic evaluation of the livestock and estimated prices required to cover all costs. Costs include labour, investment and depreciation, but do not include management costs, nor do they necessarily represent the average cost of production in Manitoba.
These budgets may be adjusted by putting in your own figures. As a producer you are encouraged to calculate your own costs of production. Good management is assumed in that a balanced ration is being fed, and livestock are on a flock health program.
Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and use of this information is the responsibility of the user. If you need help with a budget, contact your local Manitoba Agriculture GO Office.
The Farm Machinery Custom and Rental Rate Guide
www.manitoba.ca/agriculture Manitoba Agriculture GO Office.
Guidlelines: Lamb Production Costs 2
Manitoba Agriculture
$/LambA. Operating Costs $/Ewe Marketed $/lb Total Cost Your Cost
1. Feed Costs 1.01 Ewe Ration $82.15 $45.54 $0.51 $41,075 1.02 Ram Ration $2.28 $1.26 $0.01 $1,140 1.03 Lamb Ration $53.54 $29.68 $0.33 $26,770 1.04 Salt-Mineral Mix $14.67 $8.13 $0.09 $7,335Total Feed Cost $152.64 $84.61 $0.94 $76,3202. Other Operating Costs 2.01 Straw $11.61 $6.44 $0.07 $5,805 2.02 Vet Medicine and Supplies $10.75 $5.96 $0.07 $5,375 2.03 Maintenance and Repairs $8.40 $4.66 $0.05 $4,200 2.04 Hydro, Water and Telephone $2.45 $1.36 $0.02 $1,225 2.05 Death Loss $4.61 $2.56 $0.03 $2,305 2.06 Insurance $2.04 $1.13 $0.01 $1,020 2.07 Flock Replacement $20.82 $11.54 $0.13 $10,410 2.08 Marketing & Transportation $39.24 $21.75 $0.24 $19,620 2.09 Shearing Costs $5.26 $2.92 $0.03 $2,630 2.10 Predator Control $4.13 $2.29 $0.03 $2,064 2.11 Professional Fees $0.73 $0.40 $0.00 $364 2.12 Manure Removal $3.00 $1.66 $0.02 $1,500 2.13 Miscellaneous $1.00 $0.55 $0.01 $500Subtotal Operating Costs $266.68 $147.83 $1.65 $133,338 2.14 Operating Interest $7.33 $4.06 $0.05 $3,665Total Operating Costs $274.01 $151.89 $1.70 $137,003
B. Fixed Costs3. Depreciation 3.01 Buildings $4.93 $2.73 $0.03 $2,465 3.02 Equipment & Improvements $9.80 $5.43 $0.06 $4,9004. Investment 4.01 Buildings $1.43 $0.79 $0.01 $715 4.02 Equipment & Improvements $1.73 $0.96 $0.01 $865 4.03 Breeding Flock $5.76 $3.19 $0.04 $2,8805. Pasture Costs $3.44 $1.91 $0.02 $1,720Total Fixed Costs $27.09 $15.01 $0.17 $13,545
Total Operating and Fixed Costs $301.10 $166.90 $1.87 $150,548
C. Labour $35.00 $19.40 $0.22 $17,500
Total Cost of Production $336.10 $186.30 $2.09 $168,048
Estimated Farmgate $/Ewe $/Lamb TotalPrice ($ per cwt) $180Market Weight (shrunk lbs.) 90 $146,124Wool Value $3.85 $2.13 $1,924Gross Revenue $296.10 $164.13 $148,048
Marginal Returns Over Operating Costs $22.09 $12.24 $11,045Over Operating & Labour Costs ($12.91) ($7.16) ($6,455)Over Operating & Fixed Costs ($5.00) ($2.77) ($2,500)Over Total Costs (Net Profit) ($40.00) ($22.17) ($20,000)Operating Expense Ratio 92.5% 92.5%
Breakeven Selling Price $/cwtOperating Costs $166.40Operating & Labour Costs $187.95Operating & Fixed Costs $183.07Operating, Fixed & Labour Costs $204.63
Note: This budget is only a guide and is not intended to be an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed.
Based on 500 Ewes - Marketing 902 LambsLamb Production Cost Summary - April, 2016
Profitability and Breakeven Analysis
Guidelines: Lamb Production Costs 3
Manitoba Agriculture
Per Ewe Per LambA. Operating Costs $274.01 $151.89B. Fixed Costs $27.09 $15.01C. Labour $35.00 $19.40Total Costs $336.10 $186.30
Estimated FarmgateLamb Price ($ per cwt) $180Lamb Crop % 200Lamb Market Weight (shrunk lbs) 90
Up DownPercent Lamb Price Variation 5% 15%Percent Lamb Crop Variation 20% 20%
Percent Lamb Weight Variation 5% 0%
Higher Price ($ per cwt) $189.00Lower Price ($ per cwt) $153.00
Higher Lamb Crop % 220 = 992 Lambs MarketedLower Lamb Crop % 180 = 811 Lambs MarketedHigher Lamb Weight 94.5Lower Lamb Weight 90.0
Higher Margin Scenario - Price Up 5%, Lamb Crop Up 20% and Lamb Weight Up 5%Per Ewe Per Lamb
Gross Revenue $358.20 $180.54Marginal Returns Over Operating Costs $84.19 $42.44 Over Operating & Labour Costs $49.19 $24.79 Over Operating & Fixed Costs $57.10 $28.78 Over Total Costs (Net Profit) $22.10 $11.14Operating Expense Ratio 76.5%
Lower Margin Scenario - Price Down 15%, Lamb Crop Down 20% and Lamb Weight Down 0%Per Ewe Per Lamb
Gross Revenue $227.20 $140.07Marginal Returns Over Operating Costs ($46.81) ($28.86) Over Operating & Labour Costs ($81.81) ($50.44) Over Operating & Fixed Costs ($73.90) ($45.56) Over Total Costs (Net Profit) ($108.90) ($67.14)Operating Expense Ratio 120.6%
Risk & Sensitivity Analysis
Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.
Guidelines: Lamb Production Costs 4
Manitoba Agriculture
1. This budget outlines the cost of production for a sheep enterprise.2. Buildings and equipment are valued at new cost.3. All feed is valued at fair market value.4. Replacements are purchased at fair market value.
Flock Profile TotalNumber of Ewes (Avg 150 lbs) 500Number of Rams (Avg 200 lbs) 13Lamb Crop (born alive) % 200Ewe and Ram Mortality Rate (%) 2Ewe Cull Rate (%) 15Lamb Mortality Rate - Pre-Weaning % 8Lamb Mortality Rate - Post-Weaning % 2Lambs Marketed 902Lambs per Ewe to Market 1.80Average Lamb Market Weight (lbs) 100Shrink 10%Shrunk Weight (lbs) 90.00Average Lamb Market Price ($ per cwt) $180Average Wool Production per animal (lbs) 5Average Value of Wool ($/lb) $0.75
Amount CostEwe Feeding Period Feed type lbs/day $/tonneOctober 1-November 1 (off pasture and flushed for breeding)Days 30 Alfalfa 5 $120.00
Barley 0.5 $195.00November 1-March 1 (early to mid gestation)Days 115 Alfalfa 6 $120.00
115 Barley 0 $195.00March 1-April 1 (late gestation)Days 30 Alfalfa 5 $120.00
Barley 1 $195.00April 1-June 1 (lactation)Days 60 Alfalfa 5 $120.00
Barley 1.5 $195.00
Amount CostRam Feeding Period Feed type lbs/day $/tonneOctober 1- June 1Days 240 Barley 0.75 $195.00
240 Alfalfa 6 $110.00
Feed Requirements and Costs
Lamb Production Costs - Input
Guidelines: Lamb Production Costs 5
Manitoba Agriculture
Amount CostLamb lbs/day $/tonnePre-weaningDays 50 Creep 0.5 $245.00
Hay 0.5 $120.00WeaningDays 30 Creep/grower 1 $195.00
Hay 1 $120.00FinishingDays 100 Finisher 2 $150.00
Hay 1.5 $110.00
Amount PriceSalt-Mineral Mix Fed (lbs) $/lbEwes (365 days @ 0.06lb/hd/day) 22 $0.65Rams (365 days@ 0.06lb/hd/day) 22 $0.65Lambs (included in pre-mixed rations) 0 $0.00
Straw Bedding tonnes/ ewe 0.20 tonnes/lamb 0.10 tonnes/ ram 0.25 cost/tonne $30.00
Veterinary Medicine & SuppliesMedication Lamb
clostridial (two shots @ $.26/shot) $0.53internal parasiticide (1x) $0.53injectable vitamins $0.10RFID tag $3.00miscellaneous $0.50
Eweclostridial (annually @ $.26/shot) $0.26Caseous Lymphadenitis (annually@$.26/shot) $0.26internal parasiticide (2x) $1.06injected vitamins $0.20miscellaneous $0.50
Ramclostridial (annually @ $.26/shot) $0.26Caseous Lymphadenitis (annually@$.26/shot) $0.26internal parasiticide (2x) $1.06injected vitamins $0.20miscellaneous $0.50
Other Operating Costs
Guidelines: Lamb Production Costs 6
Manitoba Agriculture
Professional ServicesTotal Yearly Hours 2Charge per Hour $150.00Total Kilometers (round trip) 80Charge per km $0.80Number of yearly visits 1
Fuel, Maintenance & Repairs Tractor $1,000 Truck $1,200 Buildings,Fences etc. $2,000
Utilities Hydro $425 Water $0 Telephone $800
Marketing & TransportationCustom Trucking per lamb $12.50Marketing Charges
Commission 6.00$ Check off 1.80$ Insurance - Manitoba 1.00$ Feed on arrival/day 0.50$
per lamb $9.30
Replacement Costs $/cwt Ewe replacement rate 15.0% Ewe replacement cost $220.00 Ewe cull value 150 lbs $60 $90.00 Ram replacement rate 25.0% Ram replacement cost $400.00 Ram cull value 200 lbs $90 $180.00
Predator Control Stock dog $200.00 Guard dog $250.00 Years 7 Annual maintenance costs (feed, vet, etc.) $2,000.00
Manure Removal Annual cost for Removal $1,500.00
Insurance Cost per $100 Capital Invested in a). Livestock $0.45 b). Building & Equipment $0.40 Add'l Coverage for liability ($/year) $49.00
Guidelines: Lamb Production Costs 7
Manitoba Agriculture
Shearing Costs Ewe shearing cost ($/head) $5.00 Ram shearing cost ($/head) $10.00
Miscellaneous Total yearly office expenses $500.00
Interest Investment Rate (%) 2.50% Operating Loan (%) 5.50%
Useful SalvageBuildings Value Life Value
Pole Barn (36' x 144') withLambing/Shearing room (24' x 36') $39,530 20 10.0%Wintering Lots $5,700 20 0.0%Well $8,000 20 0.0%
Total Building Cost $53,230Equipment & Improvements
Water System (2 waterers & installation) $3,000 10 10.0%Miscellaneous Machinery & Equipment: $5,000 10 20.0%Tractor & Loader -allocated to sheep $36,000 10 20.0%Truck - allocated to sheep $15,000 10 10.0%
Total Equipment & Improvements $59,000Total Buildings & Equipment Investment $112,230Breeding Flock
Value of Ewes $110,000Value of Rams $5,200
Total Breeding Flock Investment $115,200Land Investment Acres required 80 Value per acre (Marginal pasture land) $450 Total Land Investment $36,000 Useful Salvage Land Taxes (per acre) $2.00 Life Value Fence 7 strand electric (miles) 2 20 0.0% Fence cost (per mile) $5,280 Total Fence Cost $10,560Total Land & Fence Investment $46,560
Total Capital Investment $273,990
Labour Hours per ewe 1.75Rate per hour $20.00
CAPITAL INVESTMENT
Guidelines: Lamb Production Costs 8
Manitoba Agriculture
1. This budget outlines the cost of production for a sheep enterprise.2. Buildings and equipment are valued at new cost.3. All feed is valued at fair market value.4. Replacements are purchased at fair market value.
Number of Ewes 500Number of Rams 13Lamb Crop (born alive) % 190Ewe Mortality Rate (%) 2Lamb Mortality Rate - Pre-Weaning % 8Lamb Mortality Rate - Post-Weaning % 2Lambs Marketed 902Average Lamb Market Weight (lb) 90Average Wool Production per animal (lb) 5Average Value of Wool ($/lb) $0.75
Amount CostEwe Feeding Period Feed type lbs/day $/tonneOctober 1-November 1(off pasture and flushed for breeding)Days 30 Alfalfa/grass hay 5 $120.00
Barley 0.5 $195.00November 1-March 1(early to mid gestation)Days 115 Alfalfa/grass hay 6 $120.00
115 Barley 0 $195.00March 1-April 1(late gestation)Days 30 Alfalfa hay 5 $120.00
Barley 1 $195.00April 1-June 1(lactation)Days 60 Alfalfa hay 5 $120.00
Barley 1.5 $195.00
Amount CostRam Feeding Period Feed type lbs/day $/tonneOctober 1- June 1Days 240 Barley 0.75 $195.00
240 Forage 6 $110.00
LambPre-weaningDays 50 Creep 0.5 $245
Hay 0.5 $120WeaningDays 30 Creep/grower 1 $195
Hay 1 $120FinishingDays 100 Finisher 2 $150
Hay 1.5 $110
Lamb Production Costs Worksheet
Flock Profile
Assumptions
Feed Requirements and Costs
Guidelines: Lamb Production Costs 9
Manitoba Agriculture
Amount PriceSalt-Mineral Mix Fed (lbs) $/lbEwes 22 $0.65Rams 22 $0.65Lambs (included in ration) 0 $0.00
A. OPERATING COSTS Your Cost1. Feed Costs1.01 Ewe Flushing RationGrain
30 days per yearx 0.5 lbs barley/dayx $195.00 /tonne barley÷ 2205 lbs/tonne= $1.33 /ewe
Forage30 days/year
x 5 lbs alfalfa/dayx $120.00 /tonne alfalfa brome hay÷ 2205 lbs/tonne= $8.16 /ewe
1.02 Ewe Early to Mid Gestation Ration
Barley115 days/year
x 0 lbs barley/dayx $195.00 /tonne barley÷ 2205 lbs/tonne= $0.00 /ewe
Forage115 days/year
x 6 lbs alfalfa/grass hay/dayx $120.00 /tonne of alfalfa hay÷ 2205 lbs/tonne= $37.56 /ewe
1.03 Ewe Late Gestation Ration Barley 30 days/year
x 1 lbs barley/dayx $195.00 /tonne barley÷ 2205 lbs/tonne= $2.65 /ewe
Forage 30 days/yearx 5 lbs alfalfa hay/dayx $120.00 /tonne of alfalfa hay÷ 2205 lbs/tonne= $8.16 /ewe
1.04 Ewe Lactation RationBarley 60 days/year
x 1.5 lbs barley/dayx $195.00 /tonne barley
Guidelines: Lamb Production Costs 10
Manitoba Agriculture
÷ 2205 lbs/tonne= $7.96 /ewe
Forage 60 days/yearx 5 lbs alfalfa hay/dayx $120.00 /tonne of alfalfa hay÷ 2205 lbs/tonne= $16.33 /ewe
Total = $82.15 /ewe
1.05 Ram RationGrain
240 days/yearx 0.75 lbs barley/ram/dayx $195.00 /tonne barley÷ 2205 lbs/tonne= $15.92 /ramx 13 rams÷ 500 ewes= $0.41 /ewe
Forage240 days/year
x 6 lbs alfalfa brome/ram/dayx $110.00 /tonne alfalfa brome ÷ 2205 lbs/tonne= $71.85 /ramx 13 rams÷ 500 ewes= $1.87 /ewe
Total = $2.28 /ewe
1.06 Lamb RationPre Weaning Ration 50 days/year
0.5 lbs creep feed/lamb/dayx 920 lambs weanedx $245.00 / tonne commercial feed cost÷ 2205 lbs/tonne÷ 500 ewes= $5.11 /ewe
Pre Weaning Forage 50 days/year0.5 lbs alfalfa hay/day
x 920 lambs weanedx $120.00 /tonne of alfalfa hay÷ 2205 lbs/tonne÷ 500 ewes= $2.50 /ewe
Weaning Ration 30 days/year1 lbs creep feed/lamb/day
x 920 lambs weanedx $195.00 / tonne commercial feed cost
Guidelines: Lamb Production Costs 11
Manitoba Agriculture
÷ 2205 lbs/tonne÷ 500 ewes= $4.88 /ewe
Weaning Forage 30 days/year1 lbs alfalfa hay/day
x 920 lambs weanedx $120.00 /tonne of alfalfa hay÷ 2205 lbs/tonne÷ 500 ewes= $3.00 /ewe
Finishing Ration 100 days/year2 lbs creep feed/lamb/day
x 902 lambs weanedx $150.00 / tonne commercial feed cost÷ 2205 lbs/tonne÷ 500 ewes= $24.55 /ewe
Finishing Forage 100 days/year1.5 lbs alfalfa hay/day
x 902 lambs weanedx $110.00 /tonne of alfalfa hay÷ 2205 lbs/tonne÷ 500 ewes= $13.50 /ewe
Total = $53.54 /ewe
1.07 Salt-Mineral MixEwes 22 lbs salt-mineral/ewe/year
x $0.65 /lb= $14.30 /ewe
Lambs 0 lbs salt-mineral/lamb/year(incl. in ration) x $0.00 /lb
x 902 lambs marketed÷ 500 ewes= $0.00 /ewe
Rams 22 lbs salt-mineral/ram/yearx $0.65 /lbx 13 rams÷ 500 ewes= $0.37 /ewe
Total = $14.67 /ewe
2. Other Operating Costs:2.01 StrawEwes
0.20 tonnes/ewe/yearx $30.00 /tonne
Guidelines: Lamb Production Costs 12
Manitoba Agriculture
= $6.00 /eweLambs
0.10 tonnes/lamb/yearx $30.00 /tonnex 902 lambs÷ 500 ewes= $5.41 /ewe
Rams0.25 tonnes/ram/year
x $30.00 /tonnex 13 rams÷ 500 ewes= $0.20 /ewe
Total = $11.61 /ewe
2.02 Veterinary Medicine & SuppliesLamb Medication
$0.53 /lamb clostridial vaccine+ $0.53 /lamb internal parasiticide+ $0.10 /lamb injected vitamins+ $3.00 /RFID tag+ $0.50 /lamb miscellaneous medicine= $4.66 /lambx 902 lambs÷ 500 ewes= $8.41 /ewe
Ewe Medication$0.26 clostridial. vaccine
+ $0.26 caseous lymphadenitis+ $1.06 internal parasiticide+ $0.20 injected vitamins+ $0.50 miscellaneous medicine= $2.28 /ewe
Ram Medication$0.26 clostridial. vaccine
+ $0.26 caseous lymphadenitis+ $1.06 internal parasiticide+ $0.20 injected vitamins+ $0.50 miscellaneous medicine= $2.28 /ramx 13 rams= $29.64 total medication÷ 500 ewes= $0.06 /ewe
Total = $10.75 /ewe
2.03 Maintenance & Repairs$1,000 tractor
+ $1,200 truck+ $2,000 building, fence, etc.
Guidelines: Lamb Production Costs 13
Manitoba Agriculture
= $4,200 total÷ 500 ewes= $8.40 /ewe
2.04 Hydro, Water and Telephone$425 hydro
+ $0 water+ $800 telephone= $1,225÷ 500 ewes= $2.45 /ewe
2.05 Death LossEwe $220.00 /ewe
x 2 death loss %= $4.40 /ewe
Ram $400.00 /ramx 2 death loss %÷ 38 ewes/ram= $0.21 /ewe
Total = $4.61 /ewe
2.06 InsuranceBuilding and Equipment
$112,230 bldg. & equipment investmentx $0.40 /$100 capital÷ 100 100÷ 500 ewes= $0.90 /ewe
Breeding Flock $115,200 herd investment
x $0.45 /$100 capital÷ 100 100÷ 500 ewes= $1.04 /ewe
Additional Coverage$49.00 additional coverage for liability
÷ 500 ewes= $0.10 /ewe
Total = $2.04 /ewe
2.07 Flock ReplacementEwe Replacement
500 ewesx 0.15 replacement rate= 75 number replaced/year
$220 /replacement ewe- $90 /cull ewex 75 number replaced/year÷ 500 ewes
Guidelines: Lamb Production Costs 14
Manitoba Agriculture
= $19.50 /ewe
Ram Replacement13 rams
x 0.25 replacement rate= 3 rams replaced/year
$400 replacement ram value- $180 cull ram valuex 3 rams replaced/year÷ 500 ewes= $1.32 /ewe
Total = $20.82 /ewe
2.08 Marketing & TransportationTrucking $12.50 trucking per lamb
x 1.80 lambs marketed/ewe= $22.50 /ewe
Commission, fees, etc. $9.30 cost per lambx 1.80 lambs marketed/ewe= 16.74 /ewe
Total = $39.24 /ewe
2.09 Shearing Costs$10.00 $/ram
÷ 38.46 ewes/ram+ $5.00 $/ewe= $5.26 /ewe
2.10 Predator Control$200 stock dog
+ $250 guard dog÷ 7 years + $2,000 annual maintenance÷ 500 ewes= $4.13 /ewe
2.11 Professional FeesHerd Veterinarian $2 Total Yearly hours
x $150 charge per hour= $300 Vet Fees÷ 500 ewes= $0.60 /ewe
Mileage 80 Total Kilometers (round trip)x $0.80 Charge per kmx 1 Number of yearly visits= $64 Mileage charges÷ 500 ewes= $0.13 /ewe
Guidelines: Lamb Production Costs 15
Manitoba Agriculture
Total = $0.73 /ewe
2.12 Manure Removal$1,500.00 total annual cost
÷ 500 ewes= $3.00 /ewe
2.13 Miscellaneous$500.00 total office expenses
÷ 500 ewes= $1.00 /ewe
2.14 Operating Interest$266.68 subtotal operating costs
÷ 2 averagex 5.5% operating interest rate= $7.33 /ewe
B. FIXED COSTS
BuildingsPole Barn (36' x 144') withLambing/Shearing room (24' x 36') $39,530Wintering Lots $5,700Well $8,000
Total Building Cost $53,230Equipment & Improvements
Water System (3 waterers & installation) $3,000Miscellaneous Machinery & Equipment: $5,000Tractor & Loader -allocated to sheep $36,000Truck - allocated to sheep $15,000
Total Equipment & Improvements $59,000Total Buildings & Equipment Investment $112,230Breeding Flock
Value of Ewes $110,000Value of Rams $5,200
Total Breeding Flock Investment $115,200Land Investment Acres required 80 Value per acre 450 Total Land Investment $36,000 Land Taxes (per acre) $2.00 Fence 7 strand electric (miles) 2 Fence cost (per mile) $5,280 Total Fence Cost $10,560Total Land & Fence Investment $46,560
Total Capital Investment $273,990
3. Depreciation:
CAPITAL INVESTMENT
Guidelines: Lamb Production Costs 16
Manitoba Agriculture
3.01 Buildings:$53,230 original value
- $3,953 salvage value÷ 20 years useful life÷ 500 ewes= $4.93 /ewe
3.02 Equipment & Improvements$59,000 original value
- $10,000 salvage value÷ 10 years useful life÷ 500 ewes= $9.80 /ewe
4. Interest on Investment
4.01 Buildings:$53,230 original value
+ $3,953 salvage value÷ 2 averagex 2.5% investment rate÷ 500 ewes= $1.43 /ewe
4.02 Equipment & Improvements$59,000 original value
+ $10,000 salvage value÷ 2 averagex 2.5% investment rate÷ 500 ewes= $1.73 /ewe
4.03 Breeding Stock$115,200 herd investment
x 2.5% investment rate÷ 500 ewes= $5.76 /ewe
5. Pasture CostsLand Investment $36,000 land value
x 2.5% investment rate÷ 500 ewes= $1.80 /ewe
Taxes $160 total taxes÷ 500 ewes= $0.32 /ewe
Fence depreciation $10,560 fence value- 0 salvage value
2
Original Value -Salvage ValueUseful life
Original Value +Salvage Value x Investment Rate
Guidelines: Lamb Production Costs 17
Manitoba Agriculture
÷ 20 useful life÷ 500 ewes= $1.06 /ewe
Fence investment $10,560 fence value+ 0 salvage value÷ 2 averagex 2.5% investment rate÷ 500 ewes= $0.26 /ewe
Total = $3.44 /ewe
C. Labour1.75 hours/ewe
x $20.00 /hour= $35.00 /ewe
Wool Value513 total breeding animals
x 5 average lbs wool productionx $0.75 $/lb÷ 500 ewes= $3.85 /ewe
Profitability and Breakeven Analysis:Gross Revenue per lamb = lamb weight (100lbs) x 10% shrink x $180/cwtOperating Expense Ratio = ($151.89 operating cost / $164.13 gross revenue) x 100Breakeven Price $/cwt = Cost - $2.13 wool value ÷ shrunk lamb market weight (0.9 cwt)
April, 2016Created and maintained by
For more information, contact your local
Mamoon Rashid Benjamin HammBusiness Development Specialist Farm Management Specialist
Roy Arnott Greg FedakFarm Management Specialist Farm Management Specialist
Manitoba Agriculture GO Office or:
Manitoba Agriculture Farm Management
ESR-014719 January 2013
For more information• ContactyourlocalManitobaAgriculture,
GrowingOpportunities(GO)Office.
• Visitusatmanitoba.ca/agriculture.