How many sheep to start a business. Sheep breeding as a business for beginners. Making a profit from sheep breeding

Breeding and rearing sheep in agriculture in most countries is the most popular type of animal husbandry. Profitability is in the range of ~ 10-25% with a return on investment of ~ 15-20 months. Sheep farming is suitable for starting a business in the village from scratch, as does not require large financial costs and special knowledge on animal care. In the article, we will analyze how to organize sheep breeding as a business from scratch.

Breeding sheep as a business: advantages and disadvantages

The key point is the choice of the direction of the business, which depends on the breed of sheep. Sheep breeding can be for meat products (meat and meat-bearing sheep breeds) or wool (wool-meat breeds). An additional direction may be the sale of sheep’s milk. Consider the main advantages and disadvantages of the sheep farming business.

Benefits disadvantages
Minimum initial investment. Animals are very unpretentious, because are pasture. Tolerate cold well Low profitability of the industry and business ~ 10-15% and a long payback period of ~ 15-20 months.
Animal nutrition has no special requirements. Savings in feed, lack of a specialized diet. The difficulty of selling and selling products. High competition with classic meat industries: pig breeding and cow breeding

This livestock business does not have special requirements for starting. Capital is small, the cost of raising animals is minimal. A significant drawback But there is - profitability. Some domestic experts or "experienced" livestock farmers estimate the profitability of ~ 10-15%. This is often the main criterion by which aspiring entrepreneurs are judged and, unfortunately, they are not quite right. Foreign analysts estimate the profitability of this sector of animal husbandry ~ 25%, proper care of animals and pasture, can increase business efficiency.

Sheep breeding business plan

An important feature of a business plan is the preparation of rough estimates of available resources, distribution channels, staff, costs and revenues. The purpose of a business plan is to visualize a business idea to determine the stages of its implementation or presentation for investors (lenders) to receive investments or subsidies for business development. If you start your business from scratch, then you should not count on receiving money from investors. Investors, with the exception of venture capital or business angels, invest in an existing business that shows its effectiveness through an assessment of its income and expenses. To attract funds for business development from scratch, you can get government support or subsidies, but as a rule their size is very small.

Investors will not invest in a “bare” idea, they will invest in an existing business with financial indicators!

The advantage of sheep breeding is the ability to start a business from scratch on their own without major financial investments.

Sheep Breeding Business Registration

For the registration of a business, one of the following legal forms is suitable: LPH (private subsidiary farming), individual entrepreneur (sole proprietorship), LLC or peasant farm (peasant farm). For a novice entrepreneur, the best option would be LPH. If you plan to expand the herd, you will need to switch to IP. For this, it is necessary to register the type of activity according to the OKVED code: 01.22.1 - “Breeding of sheep and goats” in the tax inspection.

Legal form of business Features
LPH (personal subsidiary plots) +) the ability to not pay taxes;
  +) a simple form of registration of activities. It is necessary to obtain a certificate from the local administration ;-) restrictions on the plot of up to 2 hectares., Not the possibility of hiring personnel .-) the products are not certified, so there is no possibility of selling to stores and wholesale stores.
SP (individual entrepreneur) +) the possibility of expanding pasture for sheep breeding;
  +) the ability to choose a special taxation regime: USHN or STS ;-) payment of tax payments.
LLC (limited liability company) +) the ability to attract borrowed capital, investments for scaling;
  +) the ability to choose a special tax regime: USHN or STS ;-) bookkeeping and reporting.
KFH (peasant farm) +) suitable for partner business (analogue of limited liability partnership - limited liability partnership).
+) the ability to choose a special tax regime: USHN or STS;

When registering an individual entrepreneur, LLC or peasant farm, you must immediately submit an application for the transition to a special taxation regime: STS or USKhN (single agricultural tax). Otherwise, there will be a tax regime OCCI, with a higher interest rate! The opportunity to apply for the transition to a preferential regime will appear only at the end of the calendar year. For livestock farming, the best choice would be CES.

The use of unified agricultural tax is possible if the share of livestock production is more than 70%!

If a loss was incurred during the UST in the previous reporting period, then it can be taken into account in the tax base in expenses. This will reduce tax payments.

The interest rate for the USCH is 6% of income minus expenses.

For a simplified tax system (STS), the interest rate will depend on the type of regime:

  • 15% for income minus expenses;
  • 6% of gross income.

The difference between the simplified tax system and the unified data storage system in loss accounting. If (under the regime of 15% income minus expenses) for the reporting period a loss was received, then it is still necessary to pay a tax of 1% of the profit.

Pasture organization and creation of a place for sheep and sheep breeding

The first thing is, for breeding a herd of sheep, a pasture is necessary. The size of the pasture will directly depend on the number of sheep bred. You need to choose a place with a small rental or purchase cost, as well as a good amount of potential feed growing on the territory. A pasture plot should be sown with a combination of perennial and annual plants.  As annual plants, such crops as winter rye, moghar, sorghum; and for perennials: alfalfa, clover, fescue. Do not forget about the place where your herd will be kept. Often for pasture use the land left the north-turn.

For the summer, a corral made of wood or an abandoned barn is suitable. In the winter, you should not worry much about heating or warming places of detention. Sheep are not very whimsical to frost due to their warm coat. When the temperature reaches more than -15 degrees, you will need equipment for the stove stove for temporary heating.

One animal has a pasture area of \u200b\u200b~ 0.1-0.2 ha.

Acquisition of the future stock and its maintenance

Sheep and sheep should be purchased best from farms that can document the quality of their livestock. Inquiries, certificates and reviews - this is what the future buyer should pay attention to. For beginner sheep breeders, sheep breeds such as Romanovskys are suitable - excellent meat quality, medium wool; Russian long-haired - excellent quality of wool, average quality of meat. In order to be successful in your field, it is better to have both types of breeds available. To maintain the herd, you will need the following small staff:

  • A shepherd (shepherd) is an important member of any livestock business, controls animals, one is needed per 200-300 heads;
  • Veterinarian - may be part-time in case of problems with animals;
  • A specialist in grooming - shears animals;
  • The supply manager is the person responsible for feed and animal nutrition.

Video lesson: “Breeding sheep”

The video tutorial details the breeding of the Romanovskaya, Edilbayevsky sheep breeds and their crossbreeds in the Tereshat farm.

Sale of future products

The main raw material that you get as a result is wool and meat. Wool brings a more tangible income, as it has a higher profitability and is grown without loss of sheep. But the meat is in higher demand and, due to the possible volumes, can be sold all year round. This is the bulk of your business’s revenue potential. Potential clients of your household may be: chains of restaurants, cafes, bars and barbecue (especially in the summer), as well as trade organizations: markets, supermarkets, butchers. Collaboration with even half of the potential customers can lead to the prosperity of your business for many years, bringing you a stable income and thereby increasing the profitability of your business from year to year.

Initial investment for the development of the sheep business

For a novice entrepreneur, you can consider this financial plan to create a farm of 300 sheep. It reflects all the basic investments that you will need for your goal.

  • 10 000 000 rub. - purchase of the main livestock (300 sheep * average cost of 3,500 rubles per individual);
  • 100,000 rub. - pasture rental;
  • 100,000 rub. - possible acquisition of premises for keeping sheep and staff;
  • 600,000 rub. - annual salary of future staff and the purchase of feed;
  • 50,000 rub. - amount for small expenses (inventory, workwear, other expenses).

The total amount will be about 1,900,000 rubles. to start the development of the sheep business. Revenues by the end of the first year will be as follows:

  • 500,000 rub. - sale of meat products.
  • 500,000 rub. - sale of 100 well-fed sheep at an average price of 5000 rubles.
  • 100,000 rub. - sale of wool.

As a result, we get an approximate income for the first year of your business in the region of 1,100,000 rubles. This amount will pay back the invested money in two years and will begin to generate net profit after this time.

These financial and business plans clearly show that sheep breeding and the business associated with this type of animal husbandry are ready to bring you income, even with a small profitability. The success of the business is the creation of a wide distribution network of livestock production.

Assessment of the attractiveness of a business magazine site

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A sheep breeding business can be started from scratch and at the lowest cost in the village. Profitability is relatively low and amounts to ~ 15-25% with a payback period of ~ 15-20 months. Sheep care is not expensive. A business can be registered as a private household on a herd of up to 20 goals (up to 2 hectares), which does not require taxes. The success of this business will be the creation of a wide distribution network.

Before considering sheep breeding as an independent business, you need to think carefully about whether there is enough determination and perseverance to raise the subsidiary farm to a good level, and whether it is profitable to breed sheep and sheep. Such an event involves constant perseverance in work and the management of assistants, only under such conditions, the profitability of sheep breeding can reach a fairly high level.

Such an event involves constant perseverance in work and management assistants

According to statistics gathered, a small private sheep farm pays off only 25%. Indeed, the initial return will be small, but if you devote all your time to raising sheep as a business, referring to statistics and not ignoring the experience and recommendations of famous sheep farmers, the sheep farm will bring considerable and stable income.

Sheep are the most unpretentious animals, so even with minimal care they will breed well and gain weight. They are not afraid of the cold, which means that during the construction of pens you can not deal with the heating system.

Popular for breeding breeds

Breeding sheep as a business involves the selection of breeds so that the bulk of the income will come from the sale of meat. You can choose a breed based on your own preferences, if the owner has a sheep farm and some experience. If you are interested in sheep breeding at home, it is better to purchase breeds that have managed to gain popularity:

  1. Romanovskaya. A well-known breed, distinguished by the quality of the coat and excellent fertility. In some cases, the offspring is so large that the sheep does not produce enough milk to feed offspring. To feed the lambs, several goats are bred, and their milk is used for additional feeding. Breeding sheep of this breed at home as a private business with the proper organization and marketing of production products can bring good profit.
  2. Gissar. Representatives of this breed are quite large. Breeding sheep can gain weight up to 170 kg, and females - about 120 kg. The breed is considered to be profitable, because lambs quickly gain weight even under normal growing conditions.
  3. Karachevskaya. The breed quickly adapts to any climate, it is characterized by a stable immunity, thanks to which the breeding sheep have excellent coat, which lends itself well to working out.
  4. Texel. It perfectly survives in the climate of the middle strip and has high endurance. The meat of this breed is characterized by the absence of a specific smell, which stimulates the breeding of sheep for subsequent sale.
  5. Edilbaevskaya. Fat tail sheep of this breed are bred in climatic conditions with warm winters. Although they belong to the infertile type, their meat is very tasty, and also healthy. Under appropriate conditions, Edilbayev sheep can be released to pasture all year round.

Regardless of the breed choice, it is best to consult a veterinarian before starting to breed sheep. This will avoid the purchase of rejected individuals. To purchase animals, it is advisable to visit a sheep farm or livestock market, which have permission to sell livestock.


  According to statistics gathered, a small private sheep farm pays off only 25%

Product Marketing Prospects

The main benefit that sheep breeding promises as a business is the sale of meat. Prepared meat carcasses can be sold in various places, including:

  • snack bars;
  • restaurants
  • meat processing plants;
  • supermarkets or market.

You can register your own point of sale of mutton. Quality meat is always in demand, and if there is a product and a responsible attitude to work, there will be no end to customers. It is much more difficult to sell wool and milk, of which there will be a lot. To sell them, you have to work hard in search of places of implementation. Perhaps in the future it will be possible to open an additional business related to the processing of wool, but at first it is necessary to find a private enterprise engaged in the processing of wool.

Sheep farming as a profitable business (video)

First stage

Sheep breeding as a business always begins with the cost of acquiring everything necessary. It is necessary not only to acquire sheep and rams, but also to create all the conditions for the active development of the business. At first, you should prepare:

  • a small truck or a car with a trailer;
  • feed and fertilizer to improve green pasture feed;
  • drinkers;
  • mower and tractor;
  • hair clipper.

In addition, it is necessary to rent a plot of land on which a sheep farm and a place for slaughter will be located. Without experience in the rational arrangement of a sheep farm, the best option would be to have about 10 sheep and several rams for their fertilization. Further, everything will develop as it should without any losses in case of failure.


  It is necessary to rent a plot of land on which the sheep farm will be located

The next column of expenses is the services of a veterinarian. Growing sheep as a means to profit involves the timely detection of diseases, vaccination and the addition of vitamin preparations to feed. Only a highly qualified veterinarian can cope with this task.

You can reduce costs by learning to self. Sheep and rams are quite peaceful and calm animals, and the specifics of the haircut does not contain any secrets that are transmitted from one to another. Therefore, if you decide to professionally engage in ram farming, you need to learn how to cut it yourself.

Starting the breeding of sheep for meat as a business, one should not expect a rapid increase in income. At the initial stage of development, this event will not be as profitable as we wanted. The profitability of sheep and sheep breeding, as mentioned above, borders at 25%. The positive side of this matter is that sheep breeding as a type of business is at the initial stage of development, so you can not be afraid of aggressive competition.

Useful tips given by experienced breeders of sheep and sheep:

  1. A sheep breeding business plan should be drawn up that will indicate the exact numbers of future costs. Prepare for the fact that the planned amount of the cost of feed, helpers and other circumstances can be much larger.
  2. It is necessary to fully study the pros and cons of the selected breed, which they decided to breed.
  3. It is necessary to deal with the optimal types of feed so that sheep growing pays off.
  4. It is very important to maintain the condition of the land for sowing in good condition.

Having thoroughly mastered the practice of raising sheep for meat and wool, you can expand your business by gradually increasing the number of animals.

Sheep breeding can be called a universal area of \u200b\u200banimal husbandry. A successfully drawn up business plan, a well-organized economy will allow you to get the maximum benefit from the sale of meat, milk, wool and fat of sheep. In this review, we will consider a business plan and other important aspects of sheep breeding that will bring you closer to a good income.

Breeding sheep as a business is an attractive area for a modern entrepreneur and is a rather profitable area of \u200b\u200bactivity in agriculture. Several factors contribute to this. Sheep are unpretentious animals that adapt easily and have good health. Their main food is pasture feed. With the proper organization of the business, its profitability can reach 25-30%.

That is why this type of animal husbandry is gradually gaining mass character. Making a choice in favor of this type of activity, an entrepreneur can really create a successful business. This is due to the existing shortage of sheep meat and its cost, reaching 180 rubles. per kilogram. Therefore, if you are looking for a suitable direction for honest money making, then you should definitely consider the option of raising sheep.

The basics of a successful economy

To ensure the long existence of the sheep farm, the farm should have 50 queens and more. For meat-wool direction, the number must be increased to 75-100 females.

For the organization of technological processes it is important to provide for such production facilities as a maternity ward, a room for, a canopy for male producers, single queens, repair young animals and rejected individuals. To exclude physical labor associated with the cleaning of the shepherd, all production processes should be mechanized.

Breed selection and activities

There are fine-wool and meat-wool sheep breeds. The former include the Stavropol, Caucasian and Salsk species. Representatives of these breeds are distinguished by endurance and unpretentiousness in leaving. They quickly adapt to climatic conditions, are characterized by decent wool productivity.

At the same time, their meat properties are also well developed. Providing the animals with high-quality fattening, the carcass of an 8-month-old lamb can reach 20 kg, and an adult - up to 25 kg. Fine-fleeced breeds have a large volume of skin folds and long hair, the values \u200b\u200bof which can reach up to 9 cm. Wool is valued for its density. It is used for the manufacture of high quality woolen fabrics.

As for meat and wool breeds, for breeding, you can choose the North Caucasus, as well as a cross between merino and North Caucasus. Unlike fine-wool representatives, they give a coarser, but longer coat (10–13 cm). It is used to create knitwear. In addition, it is perfect for knitting sweaters, blouses and socks.

A distinctive feature of sheep meat-wool direction can be called their early maturity. They are rapidly gaining mass and reaching maximum weight faster. When choosing sheep, you should pay attention to the physique of the animal, its age and health.

The following points should also be considered:

  • in good specimens, parts of the body, powerful skeleton, dense skin are proportionally developed;
  • you should refuse to buy if the animal has a narrow, heavy, rough or too long head;
  • the wide chest is considered the norm;
  • the back with the lower back should be even;
  • a good sheep has strong, widely set legs.

The age of the animal can be determined by evaluating the condition of its teeth. For one-year-olds, a change in two deciduous teeth located in front is inherent. In their place appear wide and large incisors. In animals aged 4 years, cracks form between the teeth, as they gradually wear out. By the age of five, they turn yellow, stagger, fall out. For details on sheep breeding, see the video from the CIA Advertising Agency channel.

The health of the sheep, as well as the level of productivity, depends on the conditions under which the sheep are kept. That is why it is important that the livestock premises comply with existing zoo hygiene requirements. Based on climatic factors and economic conditions, there are two ways of keeping sheep.

  1. Pasture stall. In this case, use natural feed. Animals are transferred to the premises only in winter.
  2. Stall-pasture. This option is common in areas with few pastures and a cool climate.

The site on which the construction of the base canopy or the shepherd is planned should have a sufficiently strong soil and be dry. The premises should be located away from residential buildings, but close to the territory where the feed is produced. They should be dry, light, spacious.

The floor should be raised 20 cm from the ground. It can be earthen, clay, wooden. Straw litter will help prevent dampness in the room. It can also be made from sawdust. Windows should be 1.2 meters above floor level. Still need to take care of the organization of artificial lighting.

Not all shepherds have a ceiling. But if it is included in the project, then it will turn out a wonderful hayloft. It is very important that the doors close tightly. This will keep the room warm. The temperature should not fall below 8 degrees. At the time of lambing, its indicators should not be less than 15 degrees.

The room must be equipped with the following equipment:

  • drinkers;
  • feeding troughs;
  • shields for dividing the shepherd into cells and pens.

Particular attention should be paid to the organization of watering. The fact is that sheep suffer a lack of water harder than fasting.

Still need to provide for the presence of a walking yard, where animals can be driven out in winter in good weather. There should also be feeders on its territory. Walking in the fresh air enhances appetite, activates the metabolism, improves the body's resistance to disease.

Would you like to have your own shepherd?

Sales and sales of products

When production has already been established, it will be necessary to determine how to market the products received. On the market you can sell meat, skin, wool of sheep. If the company specializes in the production of meat, then meat processing plants can serve as sales channels. And well, if they are located nearby. To avoid problems in terms of marketing products, you should set reasonable prices, which at the end of the season will definitely make your business profitable.

Unclogged wool taken from sheep can be passed for 9 rubles per kilogram. Receiving 5 kg per sheep, you can not only cover the perfect costs, but also get a decent profit. Providing animals with high-quality food and arranging conditions comfortable for them, you can get about 10 kilos of wool from fine-fleeced sheep.

Business plan

We bring to your attention a business plan for raising sheep for 300 goals.

  1. First you need to arrange land lease, which can cost 120-150 thousand rubles. in year.
  2. If a place for an animal stall is not provided, then its construction will be required, which will require approximately the same costs.
  3. An important point of expenditure is the wages of farm workers. According to minimal estimates, it is at least 500 thousand rubles. in year.
  4. Overhead - this is about 70-80 thousand rubles.
  5. Buying sheep and feed. It is worth noting here that the price of sheep depends on their breed. So, a fat tail lamb up to 40 kg can cost 5000-8000 rubles, and an adult individual 10-12 thousand.

Many people wonder whether it is profitable to breed sheep. Profit from the sale of meat at a minimum price of 100 rubles. per kg will amount to 500 thousand. You can earn the same amount on the sale of live weight sheep and their wool. If you refer to these indicators, the sheep farm will pay off within 1.5-2 years.

If it is planned to organize a farm for 1000 heads, then 8 million rubles will be needed for the purchase of sheep, 1.5-2 million for equipment and documentation. At least 10 million rubles are needed for the construction of the complex and the meat processing enterprise. It is also important to have large pastures of 4-5 thousand ha and up to 100 ha of grassland. The payback period of such an enterprise is about 5 years.

If it was decided to breed sheep as a business, you need to follow the drawn up business plan. In sheep breeding, group maintenance is most often practiced. In order to build a shepherd, even ordinary adobe is used - one of the available materials. It is very important to consider the unacceptability of dampness and the absence of drafts.

The room where the sheep are kept should be spacious as well as dry. Within 8 months, animals should be kept in the pasture, where they can receive good nutrition, represented by grass, fallen grains, stunted plants. In winter, feeding is carried out by hay, straw, root crops. Due to this, the cost of the resulting meat is reduced in price.

In addition, you should always remember that the key to success is not only a competent approach to business organization. It is still important to love the business that was chosen.

Video “Sheep conditions”

This video (the FARMER.RU main farmer portal channel) will allow you to understand how the shepherd should look and what devices are relevant for this room.

Sheep breeding is traditionally considered one of the distinguished orientations of entrepreneurs who start their activities living in rural areas.

This popularity of doing this type of business is due to several reasons. Firstly, sheep animals are unpretentious and their raising is not as labor intensive as other types of activities. Secondly, the percentage of mortality of sheep is much less than that of any other animals. Thirdly, since the sheep are animals that feed on the pasture, there are obviously no issues with feed. And finally, fourthly, in order to start raising sheep it is not necessary to start on a large scale, even with a small number of goals.

Despite the diversity of advantages, this line of activity also has drawbacks - low profitability from sheep production leaves much to be desired. At this time, it is possible to declare figures at 10-15 percent. This, you see, is not the kind of profit that will give an incentive to a new one, and what he ardently expected to have. However, with the exact approach of sheep occupation, it may be possible to deliver insignificant, but steady income, which later can be left to untwist other directions.

As a professional businessman, you must be aware that starting any business without having an approximate business plan in your pocket is impossible. And the occupation of types of earnings in the agricultural sector is no exception.
  And so we will consider a question, and with what to begin the organization of sheep husbandry?
  First you need to choose a place for pasture. With this planning, keep in mind that to feed one sheep with children, one hectare of meadow for pasture per year is needed. Accordingly, for raising sheep, you first need to own a certain area with so many hectares equal to the number of sheep in your herd.

A room for raising sheep needs the most common, even a wooden cattle shelter or abandoned farms, of which a large number can possibly be found in any village, are suitable. In the winter season, heating for the sheep is not required, since the sheep tolerate low temperatures delightfully. Well, if you are already so worried, then in extreme cases you can build a stove-potbelly stove if unexpected abnormal colds suddenly strike.

Where can I get sheep?
Sheep is best bought from proven professional farms. In the future, this will help to avoid problems. With a significant estimated livestock, it is much better to buy from various farms in order to avoid inter-clan mating.
   Lamb of the Romanov breed is especially famous among beginner farmers; to be honest, their advantage over other breeds is practically unjustified. You can completely and completely buy sheep of other breeds. Nevertheless, the sheep of the Romanov breed itself are glorious for breeding them for meat. It is necessary to remember this.

What staff will be required for raising sheep?
   In the wake of how the premises for the maintenance were found, and the sheep for the start were purchased, I think that the time will come for you to hire staff. You will need one shepherd for every three hundred heads of herd. Another of the workers will need a milkmaid, a veterinarian in order for the sheep to be vaccinated on time and an expert in sheep shearing. To summarize - for our start we need at least four employees.

The main products that you can rely on when raising sheep are meat, wool and milk. Selling milk in significant quantities is quite problematic. The cost of wool today is not as significant as the old days, so it makes no sense to set big plans for this direction. But the most profitable type of profit is probably selling meat.

The most significant consumers are city bazaars, as well as cafes, barbecue, and restaurants. As a result, the demand is not as significant as, for example, pig meat, but it is present and if you manage to find stable buyers, you will be able to make your business the most profitable.

It is time to consider a rough Business Plan!

In this part of our business plan for the production of sheep, we will analyze the financial components of the analyzed business project. I remind you that we are calculating this business plan with a herd of sheep farm of 300 heads.

Let's start by considering the costs that affect such points: Renting land will be approximately 100 thousand rubles per year, renting a room for their maintenance another 100 thousand rubles, the average salary for staff will be about 600 thousand rubles per year, we will add about 50 thousand to everyday expenses rubles per year. Total, according to our conservative estimates, we get 850 thousand rubles a year.

Well, the time has come to calculate the profit from sheep breeding:
The sale of meat will amount to 500 thousand rubles (50 heads of 100 rubles / kg), where, in turn, the sale of the livestock of sheep will total 500 thousand rubles. Profit from the sale of wool, we can get approximately the same as 100 thousand rubles. In total, our earnings will amount to: 1,100 thousand rubles per year.

As representative of the calculation, the payback of this project under suitable conditions of detention will be about one year, which to date, these calculations show that this is a positive indicator.




Dear visitors of the portal!

Every week we receive requests to help with the preparation of a business plan for the development of a sheep farm. As an introduction, we publish the 2012 business plan.

IP “XXX”

“----------------------”

Feasibility study (business plan)

investment project

“Production and processing of livestock products.

Creation of a sheep farm ”

General manager

applicant company

______________________________________________________

“___” ________ 2012

_______________________ (signature)

vladimir

  1. Project Overview.
  2. Initiator of the project.
  3. Industry Analysis
  4. Sheep breeds
  5. Project Market Performance
  6. Production technology
  7. Key financial indicators of the project and loan repayment schedule
  8. Calculation of the need for borrowed funds and loan repayment schedule
  1. Project Overview

The name of the project is the creation of a sheep farm in the XXX district of Vladimir Region.

The initiator of the project is IE “XXX”.

The project will be implemented in the XXX district of Vladimir region.

The aim of this project is to create a sheep-breeding complex for 900 sheep and rams of the Edilbayev breed.

In the first year of operation of the farm, it is planned to achieve a sales volume of mutton in carcasses, skins and wool at 2,832,000 rubles.,

In the second year of work: 8 327 040 rubles.

In the third year: 12,885,040 rubles.

Implementation of the project will create a complex for the feeding of sheep with a closed production cycle. Those. from the moment of insemination of the uterus with their subsequent lambing until the lambs reach marketable weight (slaughter weight of a sheep or sheep is 50-60 kg.). The project also provides for the sale of skins and wool of lambs, sheep and rams.

The target sales segment of the complex's products are: slaughterhouses; meat processing enterprises of various kinds, HoReCa segment, manufacturers of fur and wool products.

There are no restrictions on the implementation of the project, as there are:

Supply contracts for animals, equipment and technologies;

Contracts for enterprises consuming products;

Availability of own transport, water supply, communication, guarantees of compliance with environmental safety standards.

  1. Initiator of the project

The initiator of the project is IP “XXX”

  1. The essence of the proposed project

It is planned that the farm will be located in the Vladimir region. This area has favorable climatic conditions for raising sheep and sheep in the summer on an open pasture, and in the winter indoors. Natural conditions and the presence of meadows will allow you to create your own feed base. In the Vladimir region there are many vacant lands suitable for grazing sheep and harvesting hay for the winter. This will increase production and reduce raw material costs. The location is chosen taking into account convenient traffic and infrastructure.

Implementation of the project is planned in the XXX district of Vladimir region. In the Vladimir region there are no large sheep farms. Basically, this industry is represented by small farms with a population of up to 300 heads.

For the implementation of the project FE ”XXX” leases a building of a barn with an area of \u200b\u200b1200 m2 in the settlement XXXX of the XXX district.

  1. Industry Analysis

One of the promising areas in the field of animal husbandry is sheep farming. This is due to five factors.

The first factor is the maintenance and breeding of sheep and rams, which do not require significant costs, in comparison with other animals.

The second factor is the relatively low risk of sheep and sheep diseases with infectious diseases in comparison with other animal species.

The third factor is the possibility of selling not only lamb meat, but also lamb skins and sheep wool. This significantly increases the market for final products and makes production almost waste-free.

The fourth factor is the high consumer loyalty to dishes of lamb meat and their rare purchase of other types of meat (beef, pork, poultry, etc.). Separately, it is worth noting that there has been a steady trend towards an increase in the segment of mutton buyers, and, as a result, the opening of a large number of restaurants and cafes offering mutton dishes and an increase in demand from retail operators for this type of product. When choosing a breed of sheep, we chose a tail fat breed of meat - sebaceous direction. Such meat is in greatest demand with us.

The fifth factor is government support. The industry development plan is the “Sheep and goat development program for 2012 - 2014”. and for the period until 2020 ”, which was approved by the Ministry of Agriculture of the Russian Federation on September 2, 2011, protocol No. 294. Purpose of the program: to increase the efficiency and competitiveness of sheep products based on a fuller use of the potential of their wool and meat productivity, preservation and improvement of existing stock potential, adaptability to local natural and technological conditions, improving the social status of workers in the industry, creating new jobs. According to the forecast, the number of sheep in all categories of farms in 2012 should be 26.5 million heads. The program includes subsidies for the maintenance of breeding stock for 2012 in the amount of 400 million rubles. Subsidies for the ewe, goat, brightly older than a year in the amount of 670 million rubles. Plus 30% - co-financing of regions.

It is also worth noting the one emerging in 2010-2012, the trend in animal husbandry. One of the leading branches of animal husbandry, pig breeding, is undergoing serious changes due to restrictions on the import of pigs from the European Union; the epidemic of African swine fever and Russia's entry into the WTO. The last factor involves the import of inexpensive European pork into the Russian Federation. This will lead to increased price competition between Russian and European pork producers. As a result, the profitability of the pig industry in Russia will decrease and the payback period of investment projects will increase. Against the background of these changes, most livestock farms are forced to develop new areas, including sheep breeding.

  1. Sheep breeds

Of the most common meat and greasy sheep breeds, three breeds can be attributed: Edilbaevskaya, Gissar, Texel. These breeds are most suitable for keeping in climatic conditions of central Russia and have the best characteristics in terms of early maturity, daily gain, and meat quality. The following is a description of them.

Edilbaevskaya breed coarse-fleshed meat-greasy productivity direction was created by folk selection at the end of the 19th century on semi-desert and steppe pastures in the interfluve of the Urals and Volga (Kazakhstan). By crossing Kazakh fat tail sheep with large Astrakhan coarse sheep. In the process of breeding, animals most adapted to the climatic conditions of nomadic sheep breeding were selected for breeding. They tolerate severe winter cold and summer drought well, easily make large transitions, and in their morpho-physiological composition they have the ability to well profit from scarce, thinned pasture forage.

Edilbaevskie sheep are characterized by a strong constitution, proper physique, and a well-developed fat tail. Ram and uterus are hornless. Height at withers 75–84 cm, oblique body length 77–82 cm, chest circumference 97–106 cm. Live weight of sheep is 110–120 kg, the best 150–160 kg; uterus - 65–70 kg, the best 90–100 kg. Sheep are distinguished by greater growth energy and early maturity. The body weight of sheep at birth is 6.0 kg bright - 5.2-5.3 kg, in 1.5 years - 80 and 65 kg.

When slaughtering young animals at the age of 4 months, the carcass weighs 20-24 kg, and the fat tail is 3-4 kg. According to the data of the former Temir experimental station of Kazakhstan, the live weight of the Edilbayev lambs under good pasture conditions for 1 month. will reach 17.7 kg in 2 months. - 28.7 kg, in 3 months. - 35.8 kg, in 4 months. - 42.4 kg and at 6 months. - 59.5 kg. The daily gain for 100 days on average was 195 g, and the maximum - up to 253 g. All these data indicate a very high maturity of sheep of this breed. The mass of carcasses of fattened adult valuh reaches 40–45 kg, fat tail fat - 12–14 kg. Slaughter yield of meat and fat 50-55%.

The Edilbaevsk sheep are notable for their high wool productivity, and by this sign they are superior to other fat tail sheep with a rough coat. The average shear of wool for sheep is 3–3.5 kg, the largest — up to 5.0 kg, and the uterus — 2.3–2.6 kg. The coat is heterogeneous and consists of fluff (52–56%), transitional hair (16–19%) and spine (24–28%). Dead hair is found in wool only in a small part of animals. According to the laboratory, the fluff fineness is 18.0 microns, transitional hair is 33.1 microns, awn is 59.5 microns,

The main suit of the Edilbayev sheep is black and red, as well as brown. Studies have found that animals with different colors are characterized by unequal productivity. For example, it was proved that uterus with a black color has a higher cut of wool by 7.5–11.8%, live weight - by 2.2–6.9% and better slaughter qualities than sheep with a red color. Brown sheep are also characterized by the same high productivity indices. Fertility of uterus is low — 110–120%. The milk yield of sheep is quite high. According to the data of the former Temir experimental station, the uterus of this breed produces an average of 150-155 liters of milk with fluctuations from 124.8 to 184.3 liters. Edilbayev sheep’s marketed milk is used to prepare dairy products: Ayran (sour milk), primrich (cheese), kurt (cheese) and butter. The average fat content of milk is 5.8% with fluctuations from 3 to 9%. Byearly maturity and meat productivity, it can compete with the outstanding precocious English breeds of meat - wool direction.

Hissar breed.   This breed belongs to coarse-haired fat tail sheep with a meat-greasy bias. The birthplace of the Hissar breed of sheep is Tajikistan. As for the physical characteristics, this is: the height of the sheep is from 80 to 85 cm, in sheep from 75 to 80 cm at the withers, on average, the total weight of the animal is from 130 to 140 kg. The maximum weight for sheep is 190 kg, for sheep 150 kg.

A distinctive feature of this breed of sheep is a large head, with long drooping ears. This breed of sheep is also characterized by the absence of horns. Unlike most other sheep breeds, the Hissar breed has a large fat tail on the sacrum, in which, as a rule, fat accumulates. The positive features include their early maturity, and therefore a six-month-old animal, most often, reaches 60 kg. As for the coat, it is coarse, mostly dry and with dead hair. In this regard, the wool of the Hissar breed of sheep, usually goes to the manufacture of felt or nightmares. In general, they are hardy sheep that can be kept in the pasture all year round.

The Hissar breed of sheep is, first of all, bred for meat, so a sufficient part of it accumulates in their fat tail. Interestingly, mainly when breeding Hissar sheep, applies the pure breed method. Those. only breeding animals are taken for breeding, although a small admixture of blood of another breed is sometimes permitted in order to preserve the physical characteristics of the animals. When breeding pure breed, it is necessary to make an individual account of the pedigree of the breeding herd. As for exhibition or elite queens, the selection of individuals for reproduction is also of great importance here.

If the breeding of the Hissar sheep breed is primarily focused on obtaining meat and wool, then it is possible to add someone else's blood in order to improve directly these characteristics of the offspring. Such herds are called custom. But again, it is necessary to make a clear account of the growth of wool and meat-oil part of the animal. It is worth highlighting the fact that uterine fertilization occurs in the fall, so if artificial insemination is performed, then it is best to do this in this period of the year. So, following these rules, you can easily achieve your goal when breeding a Hissar breed of sheep.

Texel breeds  known since the mid-nineteenth century. The Dutch island of Texel was famous for its local ripening sheep with good meat and wool performance. Sheep of this breed began to cross with English sheep of the Lincoln breed, which, in the end, led to typing. Now it is the most common sheep breed in Europe. It is popular in North America, New Zealand and Australia. The early maturity, fecundity and meat-bearing orientation of Texel sheep caused their breeding on a large scale when used in intensive areas of pastures.

Texel sheep are distinguished by their proportional composition, a white narrow head with a black nose, and short skinny tails. The neck is short, muscular, the hips are well developed, the legs are strong with good muscles. The average weight of an adult sheep reaches 70 kilograms. The mass of texel ram can reach 160 kilograms. The percentage yield of meat in relation to live weight is 60 percent. The meat has excellent taste, and has excellent sales performance.

Texel sheep wool is semi-thin, thick, crimped. The color of the coat is white, the fiber thickness is 30 microns. The quality of the wool corresponds to class 56. The wool yield is 60 percent. Sheared from sheep - 5.5 kilograms, from sheep - 7 kilograms. A large amount of grease perspiration provides softness to the coat.

Texel sheep are highly fertile. There are 180 offspring per 100 queens, of which 75 percent are twins. Lambs are born weighing up to 5 kilograms. The maturity period before the first mating is 7-8 months.

The disadvantages of Texel sheep include a single lamb per year. Even experiments with hormonal stimulation of the uterus did not give the desired effect. Daily gain can be called intense only up to two months of age. After that, the gain falls and amounts to 300 grams per day, which is quite an average indicator for meat and wool orientation. Due to the popularity and intensive breeding, the purity of the breed decreases - more and more deviations from the line due to uncontrolled crosses. Lambs are born large, with a large head, which often complicates lambing.

However, these shortcomings cannot spoil the reputation and prospects of this breed. therefore texel sheep  demanded by both large and small farms.

Of the listed breeds of sheep from our point of view is Edilbaevskaya. Tekkel sheep must be imported from Holland as in Russia, breeding animals of this breed cannot be found. Therefore, it is necessary to obtain an import permit in the Rosselkhoznadzor. This is today a complex and lengthy procedure. Purebred Hissar sheep in Russia are also not found. They need to be imported from the countries of Central Asia. Sheep of the Edelbaev breed today there is an agreement with two farms from the Astrakhan region who are ready to supply animals in the required volume and with the relevant documents.

  1. Project Market Parameters

6.1. Product

The immediate products of sheep breeding can be called: meat (lamb), wool and skins. It is worth noting separately that the Edilbaevsky breed is of preferable value among fat tail coarse-haired sheep of the meat-greasy direction .

6.2. Price policy

  1. Lamb implementation:The average price in the Vladimir region is from 290 rubles per 1 kg.
  1. Realization of skins:The average price of one skin is 700 rubles.
  1. Realization of wool:The average price of 1 kg. wool is 200 p. for 1 kg.

6.3, Promotion and marketing

At the moment, there is a preliminary agreement on opening a meat sales point on the Vladimir market (retail price from 350 rubles per kg.) And wholesale sales at a price of 290 rubles. per kg It is planned to search for clients for skins and wool through advertising on specialized resources (Internet portals, media, etc.).

  1. Production technology

When planning an investment for a farm, an important issue is the payback period. The technology proposed in the project provides a closed loop. This implies the division of the technological cycle into 3 stages: reproduction, growing, fattening. The use of this technology will reduce the cost of updating the main herd, automate the feeding and watering process, provide favorable conditions for keeping queens, lambs and feed stocks, save feed, fuel, electricity, reduce water consumption, reduce labor costs, solve environmental issues, optimize the investment component .

The project does not provide for the separate placement of production sites (as in pig production), which is due to the specifics of breeding and keeping this type of animal. It is worth noting that in the spring-summer period animals are kept on an open pasture. This reduces the burden of variable costs associated with the payment of electricity and feeding animals.

In this project, special attention is paid to improving product quality. The project provides for the purchase of high-quality breeding stock that has improved genetic characteristics and is adapted for feeding modern types of feed. The production facilities of the complex will allow annually to receive up to 37,000 kg. carcasses of lamb for the third year of operation of the farm.

Technical Section

The technological process consists of several stages:

  • Repair and preparation of premises for sheep and sheep.
  • Fattening and raising animals. In the spring and summer: on an open pasture. In the autumn-winter period: indoors.

The technological solution was selected taking into account the existing arrangements at FE “ХХХы” for renting premises for keeping animals and experience in raising sheep and sheep.

8. Key financial indicators of the project

The main costs associated with the purchase of livestock. The purpose of this business plan is to justify the economic efficiency of the construction and launch of a sheep-breeding complex.

After consultations with experts, we consider the most rational following picking of a herd: 90 sheep, 10 sheep of the Edilbayev breed with pedigree certificates, and 800 three-month-old lambs of the Edilbayev breed or Merino breed. Pure-bred animals are taken in order to obtain the status of a breeding farm and to improve the breed. It is proposed to purchase pure-bred sheep and rams of the Edelbaev breed in the tribe. economy in the Astrakhan region at a price of 7,500 rubles. per sheep and 15,000 rubles. per ram, lambs of the Edilbayev breed at a price of 3000 rubles. behind your head in the Stavropol Territory. Further, an annual purchase of 1,000 lambs is expected in the spring of this year to feed and increase the main herd.

Thus, the cost of purchasing livestock will be: 90 * 7 500 + 10 * 15 000 + 1000 * 3000 \u003d 675 000 +150 000 + 2 400 000 \u003d 3 225 000 rubles. Transportation costs will be about 200,000. Total total costs for the purchase of livestock will be about 3,500,000 rubles.

As mentioned above, the income from the sale of sheep products consists of 3 components: meat, skins and wool. From sheep of the Edilbayev breed or the Merino breed, the main income is obtained from the sale of meat. The income from the sale of skins and wool is additional and amounts to 15-20% of the income from the sale of meat.

8.1. Income from the sale of mutton

The production cycle from lambing to reaching the lamb slaughter weight is 6-7 months. In the first year, we plan to get 800: 2 \u003d 400 lambs for slaughter, and 400 are going to update and increase the main herd. In the second year of operation of the farm, we plan to get 490 * 1.2 + 500 \u003d 588 + 500 \u003d 1088 lambs for slaughter, and 500 goes to update and increase the main herd. In the third year we get 990 * 1.2 \u003d 1188 lambs from the sheep of the main herd and we buy 1000 lambs. Of these, 1,188 + 500 \u003d 1,688 lambs go to fattening, and 500 to increase the main herd.

The growth dynamics of the main herd will be as follows:

2012 - 90 sheep and 10 rams of the Edilbayev breed, 400 lambs of the Edilbayev breed or the Merino breed (the sheep is ready for insemination at the age of 8 months) to increase the main herd. So towards the end:

In 2012, we will have the main herd of 490 sheep and 20 sheep of the Edilbayev breed;

2013 - 990 sheep and 30 sheep;

2014 - 1,490 sheep and 40 sheep.

Thus, in the first year of operation, 400 sheep will be sent to slaughter, in the second year - 1088, in the third year - 1688.

The total number of animals in one farm should not exceed 5,000 animals in one farm. This is determined by the presence of grazing land located near the farm. Below are the economic calculations of the operation of the economy in the first three years.

The average weight of a carcass of a lamb sent for slaughter is 22 kg. In the first year, 400 sheep are planned to be slaughtered, in the second year, 1088 and in the third year, 1724 goals. Thus, we get 400 * 22 \u003d 8 800 kg of mutton in carcasses in the first, 23 936 kg in the second year and 37 136 kg in the third year of operation of the farm. The wholesale selling price today is 290 rubles. per kg The income from the sale of meat will be:

In the first year: 8 800 * 290 rubles. \u003d 2 552 000 rub.

In the second year: 23 936 * 290 \u003d 6 941 440 rubles.

In the third year: 37 136 * 290 \u003d 10 769 440 rubles.

8.2. Income from the sale of skins

The purchase price of one skin is 700 rubles. The income from the sale of skins in 2012 will be: 400 * 700 \u003d 280,000 rubles, in 2013: 1088 * 700 \u003d 761,600 rubles, in 2014: 1,688 * 700 \u003d 1,181,600 rubles.

8.3. Income from the sale of wool

The purchase price of one kg. Wool is 200 rubles. From sheep we get 5 kg of wool per year, and from a sheep 3 kg. Sheared wool from sheep and sheep of the main herd will be produced from the second year of operation of the farm. In the second year, 990 * 3 + 30 * 5 \u003d 3120 kg will be received., In the third year: 1490 * 3 + 40 * 5 \u003d 4670 kg. Income from the sale of wool in 2013 Will amount to 624,000 rubles., In 2014. - 934 000 rub.

The total farm income in 2012 will be: 2 552 000 + 280 000 \u003d 2 832 000   rubles, in 2013: 6 941 440 + 761 600 + 624 000 \u003d 8 327 040 rubles, in 2014: 10 769 440 + 1 181 600 + 934 000 \u003d 12 885 040 rubles.

Table 1: Structure of income from product sales (in rubles)

Products

Mutton

2 552 000 rub.

6 941 440 rub.

10 769 440 rub.

1 181 600 rub.

Total:

2 832 000 rub.

8 327 040 rub.

12 885 040 rub.

The cost part is:

1) expenses for the maintenance and servicing of sheep farms.

Table 2: Payroll costs (in rubles)

Position

Monthly salary

1. Shepherd zootechnician

2. Veterinarian

3. Shepherds-watchmen (from 3 employees, depending on the season and number of animals)

Total:

2) winter feed

(per day) Feeding sheep and rams of the main herd is 7 rubles. per day. Feeding lasts 4.5 months (135 days).

Table 3: Feed costs (in rubles)

Fattening period

510 animals

1,020 animals

1,530 animals

Total for 135 days:

3) overhead

(10% of the total cost)

in the first year: (516 000 + 481 950) * 10% \u003d 100 000 rubles.,

in the second year: (732,000 + 963,900) * 10% \u003d 170,000 rubles.,

in the third year: (816,000 + 1,445,850) * 10% \u003d 226,000 rubles.

Table 4: Overhead Costs:

The planned profit for 2012 (excluding taxes and loan payments) will be:

2012: 2,832,000 - 1,097,950 \u003d 1,734,050 rubles.,

2013: 8 327 040 - 1 865 000 \u003d 6 462 040 rub.,

2014: 12 885 040 - 2 487 850 \u003d 10 397 190 rubles.

8.4. The financial indicators of the project, including taxes, are as follows:

Table 6:

Indicator

1. Income (total)

2 832 000 rub.

8 327 040 rub.

12 885 040 rub.

1.1. Mutton

2 552 000 rub.

6 941 440 rub.

10 769 440 rub.

1.2. Skins

1 181 600 rub.

1.3. Wool

2. Costs (total)

1 275 970 rub.

2 118 440 rub.

5. Net profit

1 386 110 rub.

5 708 978 rub.

9 342 568 rub.

9. Calculation of the need for borrowed funds for the implementation of the project

The need for credit resources is: 3 500 000 rubles. (acquisition of the main herd) + 1 445 890 (expenses for wages, taxes and feed, taking into account overhead costs in the first year of work) \u003d 4 945 890 rubles. Unforeseen expenses - 54 110 rubles. Thus, for the implementation of the project, credit resources of 5,000,000 rubles are required.

Total need for borrowed funds is 5,000,000 rubles.

Loan repayment terms: 3 years

It is proposed to repay the loan at the end of the year as the main income from the sale of products will be received in November-December of each year.

Table 7: Loan repayment schedule (in rubles)

year 2013

year 2014

2015 year

Amount of credit

Payment for the year

2012: 1,556,030 rubles * 0.15 \u003d 233,404.50 rub.

2013: 6,208,600 rubles * 0.15 \u003d 931,290 rubles.

2014: 10 115 670 rub. * 0.15 \u003d 1,517,350 rubles.

 

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