Comprehensive Analysis of Sheep Farming Costs and Profits
The method for calculating the costs and profits of sheep farming varies depending on the scale of farming, and is mainly divided into three forms: free-range farming, specialized households, and large-scale sheep farms. Below we will introduce the cost and profit calculation methods for these three farming approaches respectively.
Cost and Profit Calculation for Free-Range Farming
Taking the raising of 2 breeding ewes as an example, concentrate feed is calculated at 80%, grass is not calculated, infrastructure and equipment are not calculated, and labor costs and manure fees offset each other.
1. Costs
(1) Purchase of breeding ewes.
2 ewes × cost per ewe = cost of purchasing breeding sheep.
Cost of purchasing breeding sheep ÷ 5 years (service life) = annual amortization of breeding sheep purchase.
(2) Feeding costs (feed calculated at 80%, grass not calculated).
2 breeding ewes × concentrate feed amount/(day·ewe) × price/kg concentrate feed = daily concentrate feed consumption for 2 ewes.
Daily concentrate feed consumption for 2 ewes × 365 days = annual concentrate feed cost for 2 breeding ewes.
Total number of lambs (marketed at 7 months of age, 5-month feeding period) × concentrate feed consumption/(day·lamb) × 150 days × price/kg concentrate feed = concentrate feed cost for growing sheep.
Total feeding cost = annual concentrate feed cost for 2 breeding ewes + concentrate feed cost for growing sheep.
(3) Total amortized medical cost: 10 yuan/(lamb·year) × total number of lambs.
Total cost = annual amortization of breeding sheep purchase + total feeding cost + total amortized medical cost.
2. Income
Annual sales of growing sheep: 2 ewes × number of growing sheep/ewe per year = total number of growing sheep.
Total number of growing sheep × market weight per sheep × selling price/kg live sheep = total income.
3. Economic benefit analysis
Annual profit of a farming household raising 2 ewes = total income - total cost = total profit.
Profit per growing sheep sold = total profit ÷ total number of growing sheep.