What are the costs and profits of raising sheep in confinement?
At present, sheep farming is being vigorously promoted nationwide, especially in impoverished areas. Stable market returns and other factors have led everyone to be very optimistic about the market prospects and the scale of development of breeding. How should the profits of raising sheep in confinement be analyzed? Below, the editor will take 500 foundation ewes as an example to analyze with everyone how the profits of raising sheep in confinement should actually be analyzed!
Breeding costs of raising sheep in confinement
1. Total infrastructure cost
Sheep shed cost: 500 foundation ewes, net sheep shed 500 sq m. rotational sheep shed (lambs, growing sheep) 1000 sq m. 25 rams, 50 sq m ram shed. Total: 1525 sq m × cost (unit: yuan/sq m) = total sheep shed cost.
Total silage pit cost: 400 sq m × cost (unit: yuan/sq m).
Total cost of hay storage and feed processing workshop: 400 sq m × cost (unit: yuan/sq m).
Total cost of office and dormitory: 300 sq m × (unit: yuan/sq m).
2. Investment in equipment, machinery and transport vehicles
Total cost of silage machines, cost of veterinary medicines and equipment, cost of electromechanical equipment such as transformers, and cost of transport vehicles, totaling the total cost of equipment, machinery and transport vehicles.
Total annual amortization of fixed assets = (total infrastructure cost + total cost of equipment, machinery and transport vehicles) ÷ 10 years.
3. Investment price of breeding sheep
Investment in foundation ewes: 500 ewes × price (yuan/head).
Investment in breeding rams: 25 rams × price (yuan/head).
Total annual amortization of breeding sheep = total investment in breeding sheep / 5 years.
4. Feed investment cost
(1) Feed investment cost for breeding sheep
Hay: 525 breeding sheep × hay amount/(day/head) × 365 days × price/kg hay = annual hay consumption cost of adult sheep
Concentrate: 525 breeding sheep × concentrate amount/(day/head) × 365 days × price/kg concentrate = annual concentrate consumption cost of adult sheep
Silage: 525 breeding sheep × silage amount/(day/head) × 365 days × price/kg silage = annual silage consumption cost of adult sheep
(2) Investment cost of growing sheep (sold at 5 months, 3-month feeding period)
Hay: total number of lambs × hay amount/(day/head) × 90 days × price/kg hay.
Silage: total number of lambs × silage amount/(day/head) × 90 days × price/kg.
Concentrate: total number of lambs × concentrate amount/(day/head) × 90 days × price/kg.
Total: total feeding cost of growing sheep, total feeding cost = total feeding cost of breeding sheep + total feeding cost of growing sheep.
5. Total annual amortization of medicine, water and electricity, transport, and business management: 6 yuan/(lamb/year) × total number of lambs.
6. Annual worker wages.
Total annual investment in raising sheep in confinement = total infrastructure cost/10 years (10 years refers to the normal service life of the farm being 10 years) + total annual amortization of fixed assets + total annual amortization of breeding sheep + total annual feeding cost + total annual amortization of medicine, water and electricity, transport, and business management + annual worker wages.
Income from raising sheep in confinement
1. Annual sales of commercial sheep: total number of growing sheep × slaughter weight/head × price/kg live sheep
2. Sheep manure income: total number of lambs × manure production (head/year). Sheep manure income = total manure volume × price/cubic meter.
3. Wool income: 525 breeding sheep × wool production/head × price/kg wool, the total of the above three items is total income.
Total annual income from raising sheep in confinement: annual sales of commercial sheep + annual sheep manure income + annual wool income.
Analysis of breeding profits of raising sheep in confinement
To build a commercial sheep farm with 500 foundation ewes, the total annual profit is: total annual income - total annual investment cost.