Commercial Dairy Goat Farm in Vermont Focusing on the Numbers

Commercial Dairy Goat Farm in Vermont
Focusing on the Numbers
Authors
Jordan Le Roux, Vermont Butter and Cheese Company
Glenn Rogers, UVM Extension
Copyright 2005 - 2006
Acknowledgements
The authors acknowledge help from the following persons who are involved with the goat farm
business in Vermont at varying levels.
The authors would like to thank Carol Delaney who participated in bringing her knowledge on
Vermont dairy goat business and beyond Vermont.
Thanks to Daniel. L. Scruton from the Vermont Agency of Agriculture and John Porter from
University of New Hampshire Cooperative Extension.
The authors would like to thank the local producers who have shared their financial information,
and to local builders, suppliers and other professionals who assisted with background
information.
Disclaimer:
This document was completed in 2006, prior to the increased price of fuel, electricity, supplies and
other items that have occurred in 2007 and later years. Thus, one MUST not use these numbers
for budgeting purposes. The method and process should be reviewed for correctness under new
regulations, programs, production methods, etc., and the financial numbers in this document are
outdated once printed. In addition, always check with agencies, processors and educators, and
others when getting into any business. Rules and prices do change and, to be accurate, all budgets
must reflect those changes.
Glenn Rogers
Uvm Extension
278 So. Main St.
St. Albans, VT 05478
08/01/2008
University of Vermont Extension, and U.S. Department of Agriculture, cooperating, offer education and
employment to everyone without regard to race, color, national origin, gender, religion, age, disability,
political beliefs, sexual orientation, and marital or familialstatus.
Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation
with the United States Department of Agriculture. University of VermontExtension, Burlington, Vermont.
2
Table of Contents
I
ABSTRACT.............................................................................................................. 1
II
INTRODUCTION ...................................................................................................... 2
III
ASSUMPTIONS ....................................................................................................... 3
1.
Size Operations.......................................................................................................................3
2.
A Few Numbers- Herd Management ...................................................................................3
3.
Example...................................................................................................................................5
4.
A.
B.
C.
D.
E.
Herd Management..................................................................................................................5
General .................................................................................................................................5
Breeding period ....................................................................................................................6
Kids ......................................................................................................................................6
Out of Season .......................................................................................................................6
Summary ..............................................................................................................................7
5.
Assets .......................................................................................................................................7
A. Land......................................................................................................................................7
B. Buildings ..............................................................................................................................7
C. Equipment ............................................................................................................................9
D. Milking Parlor & Equipment................................................................................................9
E. Livestock ............................................................................................................................10
F. Summary ............................................................................................................................10
IV
INCOME SOURCES .............................................................................................. 12
1.
Milk Sales ..............................................................................................................................12
A. Vermont Butter and Cheese Company Milk Price.............................................................12
B. Assumptions .......................................................................................................................12
C. Milk Income .......................................................................................................................13
2.
Animal Sales..........................................................................................................................13
3.
A.
B.
V
Other Sources of Incomes....................................................................................................14
Directly from the goat operation ........................................................................................14
Other Income......................................................................................................................14
EXPENSES CATEGORIES ................................................................................... 16
1.
A.
Feeding Program and Costs ................................................................................................16
Presentation ........................................................................................................................16
3
B.
C.
D.
E.
F.
The French System.............................................................................................................16
Feed rations ........................................................................................................................17
Feedstock............................................................................................................................20
Feed costs ...........................................................................................................................21
Summary ............................................................................................................................23
2.
Bedding..................................................................................................................................23
3.
Vaccination and Health Care ..............................................................................................24
4.
Dairy Herd Improvement Association (DHIA) .................................................................26
A. General ...............................................................................................................................26
B. DHIA Monthly Cost...........................................................................................................26
5.
Hauling Costs........................................................................................................................26
6.
Hired labor............................................................................................................................27
7.
Supplies and Miscellaneous .................................................................................................27
8.
Diesel, Fuels and Lube .........................................................................................................28
9.
Utilities...................................................................................................................................28
10.
Repairs and Maintenance................................................................................................29
11.
Taxes..................................................................................................................................29
12.
Interest and Principal ......................................................................................................29
VI
CASH FLOW SHEETS .......................................................................................... 31
VII
DISCUSSION ..................................................................................................... 35
VIII
CONCLUSION.................................................................................................... 37
4
I Abstract
The Vermont dairy goat business is not as important to Vermont Agriculture compared to dairy
cow farms. In fact, with approximately 30 dairy goat farms for more than 1,100 dairy cow farms,
it might seem minuscule. However, it is a growing business and a study has been conducted to
figure out what are the costs to produce and ship goat milk to Vermont Butter and Cheese
Company. Although dairy goat farms data are not numerous but thanks to five farms located in
Vermont and published studies (mainly French), these budgets have been built.
This document contains various assumptions concerning assets and herd management programs
which allows one to approach the cost of production for three different sizes of farm (100, 200
and 400 goats) including three feed ration program variables.
In this study, a 100 goat operation is not sufficient to allow for a living income for a family
without any off farm income. In fact there exists a negative cash flow of $518 and $2,109 for two
regimens and positive cash flow of $1,500 for a 100 goat operation. The variation is largely due
to differing feeding regimens.
200 and 400 goat operations are able to produce a family living. A 200 goat operation will have
$11,763 - $19,535 net cash flow depending on feeding regimens. A 400 goat dairy farm, with
additional outside labor, has $11,068 - $27,718 net family income.
All examples are purchased feed rations and pasture and haying programs may provide cost
savings on individual farms. Moreover, the incomes in those scenarios are performed by milk and
animal sales only, thus it is highly possible that having other farm incomes will enhance net farm
income depending on your situation.
1
II Introduction
Dairy farming is well developed in the State of Vermont with more than 1,100 bovine farms and
145,000 cows. While sheep and goats dairies are small in number (approximately 40-50 in 2005)
the market seems to indicate room for growth. Given the current lack of goat milk supply for
Vermont Butter and Cheese Company, this led to the development of a cost study on dairy goat
farm.
Overall, management is the most important factor to the success of the farm. This includes all
aspects of crop management, goat dairy management, labor management and financial
management. As a part of that management producers should understand the costs and returns of
their operation and enterprise budgeting is helpful for making decisions either in short or/and
long term.
This paper includes the cost of production for three different size and three feeding regimens for
dairy goat farms. Examples of 100, 200 and 400 dairy goat operations have been chosen as
realistic dairy goat farm sizes, each with three different feeding programs. These theoretical
farms are set up with unproductive land (no crop and hay) therefore; in this study, all feed is
purchased. Your operation may be able to utilize pasture or make hay as a more efficient source
of spring, summer and fall feed.
This document allows one to compare current dairy goat farms and/or to help farmers and other
institutions to build dairy goat farm financial budgets.
2
III
Assumptions
The figures presented here are calculated based on average figures on general management from
a wide range of data coming from the field. Thus, the numbers below presume good management
practices but are at the same time realistic for a commercial operation.
1. Size Operations
Three different size operations are chosen to show what income possibilities are but it does not
mean it will be yours. Your choice again depends on your living costs, income goals, available
labor, capital investment, and numerous other factors. Those factors must be calculated in a
completed precise business plan before going into the commercial goat business.
The following assumptions have been applied for each size of farm enclosed in this document.
The sizes chosen are 100, 200 and 400 goats. Given the aim of this document, (to have a glance
of what is the revenue for each farm size), we have considered a 100 dairy goat operation as a
reasonable starting size for commercial dairy farm. The two hundred goat farm has been taken
because a couple can manage 200 goats. However, beyond this limit often requires additional
outside labor. Thus, we have included a 400 goat dairy to evaluate the profitability of that size
goat dairy managed by a couple plus one employee. Although many factors utilize data from one
size operation to another, individual size variations are expected. For example: to go from 100 to
200 goats the number of bucks double but freight & trucking, bedding & real estate tax costs do
not double. Other costs may more than double due to added building size and added debt vs.
utilization of older existing facilities.
2. A Few Numbers- Herd Management
All female goats in a herd are not productive for the entire year due to disease problems, nonfertility, dry periods, and other factors. In this paper, we assume that 92% of goats give birth at a
1.7 kidding rate per goat. Moreover, even though a goat generally gives birth to two kids, a ratio
of 1.7 kid per goat is realistic over the life of the operation. A french study used a 1.7 conception
rate for an adult goat and 92% conception rate (S’Installer en Elevage Caprin, Institut de
l’Elevage Poitou-Charentes, February 2001). For the whole herd including the unproductive
goats, the conception rate goes down to 1.56 kids per goat [(92 X 1.7) /100]. However, it is
important to note that not all mature goats will kid as some just will not conceive, will not kid
properly, or will have other metabolic and disease issues. Thus, do not expect 100 goats to kid
each year.
A replacement rate of 25% is used to improve the genetics’ herd potential and to avoid health
issues linked to old goats. That would mean the herd is entirely replaced every 4 years. However,
french studies show that the replacement rate varies from 10% to more than 40% of the herd. The
average rate in France for the farms that ship fluid milk is about 38%. (Institut de l’élevage,
February
2005.
http://www.inst-elevage.asso.fr/html1/IMG/pdf/1369-Result_techneco_atel_capr_lait_et_from.pdf). Although we could use a 30 – 35% replacement rate it would
3
not significantly affect cash flow however, it could affect expansion, or genetic improvement
rate.
Replacement kids are chosen by her mother’s history (milk production and quality, diseases,
behaviour…) in this case, choosing from does in their second lactation, at least.
A 10% kid mortality rate is assumed which includes birth difficulties, infection, and other kid
weaknesses. A wide range is likely possible as care at the birth date and the first hours are
critical. (S’Installer en Elevage Caprin, Institut de l’Elevage Poitou-Charentes, February 2001).
A ratio of one buck for twenty goats is assumed and no artificial insemination is used. However,
by doing out of season breeding, a french study shows that the total buck population should 1.5 to
2 bucks per 20 goats. (Pour une installation réussie en élevage caprin, March 2005).
Summary
Assumptions
Goats
Goats (G)
Productive Goats (PG) (92%)
Milk Production (1,700 lbs per PG)
Unit
Head
Head
Lbs
100
92
156,400
200
184
312,800
400
368
625,600
Kids
Prolificity (1.7 Kid/PG)
Replacement (25%)
Kid mortality (10%)
Head
Head
Head
156
25
15
312
50
31
625
100
62
Total Kids
Head
141
281
563
Bucks
Bucks (B) (Ratio 1:20 (B/G))
Bucks Added (Out of Season)
Total Bucks
Head
Head
Head
5
5
10
10
10
20
20
20
40
Cull Animals
Cull Goats (25%)
Cull Bucks (32%)
Male Kids Sold yearly
Female Kids sold (not needed to maintain herd)
Head
Head
Head
Head
25
4
70
46
50
7
140
90
100
13
280
180
4
Herd size
3. Example
Here an example of a 400 goat operation
40 Bucks
13 Cull Bucks
400 Does
368 Productive Goats
100 Cull Does
Annual Sales
13 Cull Bucks
560 Kids
460 Kids Sold
626,500 lbs Milk
100 Cull Does
100 Replacement
Kids
460 Kids Sold
(180 female, 280
male)
4. Herd Management
A. General
The natural breeding season for does is August to December (stimulated by decreasing daylight)
thus most kidding is from January to June. Artificially increasing daylight during December thru
March-April will simulate the goats and breeding will take place during the spring therefore
kidding period will be off-season (fall-winter) thus allowing the farm to produce milk year
around at consistent levels. Does are bred in-season (August-December) and out of season
(March to June) primarily because of a better repartition of work and an advantageous milk price
during off-season. Kids are born five months after breeding. An estimated 10% kid loss is
assumed. Does are bred at an optimal size at 7 – 9 months of age, thus kidding at 12 – 14 months
of age. However, this depends on the growth and health of the kids to doeling breeding and
kidding age. Female kids are generally weaned at two and half months of age, however this again
depends on the growth and health of the kids.
Breeding management is essential to predict kidding days and to maintain milk production for
extended periods of time.
In this paper, it is assumed that the dairy goat farm sells all milk to Vermont Butter and Cheese.
5
B. Breeding period
The bucks replacement rate is 32% meaning that buck’s life on the farm would be 3 years. It is
better to have quick turnover in bucks to increase herd genetics and consequently milk protein,
and butterfat rates. Bucks replacement rate can be as high as every 2 years and artificial
insemination can also be used to increase the genetic potential of the herd. Doelings are bred if
and only if when they reach 65-75 lbs weight as well as having excellent growth and having high
dairy characteristics. The 8 months of age is used as a reference to reach the 65-75 lbs weight
(PEP Caprin, L’élevage des chevrettes).
C. Kids
Goats to be bred are chosen by the future of their babies, they choose the babies in term of the
milk productivity and the goat’s history (difficulty to kid, hoof problems, milk quality…)
The kids unsuitable for replacement are sold early to avoid increased rearing costs. However,
raising kids for breeding stock can be an alternative as an additional source of income.
D. Out of Season
Out of season breeding, for fall kidding, allows one to benefit from the higher winter milk price.
This technique is further described in the “Out of Season Breeding” (Available at Vermont Butter
and Cheese Company)
6
E. Summary
Operation
Duration
Period
Feeding program
12
Year around
months
Breeding
6 months Aug – Dec
Breeding out of season
4 months March – Jun
12
Year around
months
12
Year around
months
12
Year around
months
Kidding
Weaning
Milk production
5. Assets
Assets are an important part on your farm and including land (including fields and pastures),
buildings, equipment, livestock and other depreciable items with useable life over one year.
In this paper, the assets contain land (including small outdoor exercise lots), buildings, milking
and milk house equipment, livestock and one medium sized tractor (50 – 60 HP).
The value of assets on the five interviewed farms were not entirely available. However, we did
approximate the land, buildings, equipment, and livestock that reflected actual Vermont values.
A. Land
This study utilized all purchased feed as Vermont dairy goat farms are mostly confined (goats
stay mainly in the barn) and secondly, it is easier to predict total feed cost.
However, one may use partial budgets to determine the profitability of raising and harvesting the
feed on your farm as well as utilizing pasture to reduce feed costs.
In this paper, we assumed that one hundred goats operation is on 15 acres with five additional
acres per 100 additional goats. Thus 20 acres for 200 goats and 30 acres for 400 animals. We
used this as often the farmer’s house and surrounding buildings are part of the farm property. We
used the farmstead site as two acres. Consequently, for each farm, two acres are deducted for the
farmstead area. Only the house is taxed at full value. All other property is assumed to be in the
“Vermont Use Value/Current Use Program and taxed accordingly.
B. Buildings
There are many types of barns and housing for goats. Barns for goats can be adapted from old
cow barns, or can be a new construction or a rental operation. Therefore, the value of buildings
has been done by consulting companies that build housing for livestock. We started by taking
7
into consideration goat requirements (square footage, air and feeder space) and estimated the cost
for a new barn. Obviously, you may be in a different position, have already barns and may need
to adapt them for goats.
The goat requirements used in this paper are:
Housing Requirements
Goat
Unit
Animals Added (20%)
Head
Air per Goat
Cubic Foot
Space per Goat
Square Foot
Bunkline Space per Goat
Foot
Alley Space per Goat
Foot
Housing Requirements
Doeling
Unit
Space per Doeling
Square foot
Bunkline Space per Doeling
Meter
Alley Way
Meter
Kids
Space per Kid
Square foot
Example
100
120
247
20
1.1
6.56
1
10.7
0.25
2
2.7 to 3.6
The total animal space is 20% higher because of the animal flows. In fact, during the year, certain
periods are much more intense than others. For example, kidding periods create additional space
for short periods of time.
Minimum feed alley width in this case is 2 meters wide, (6.56 feet). The size of the feed alley
depends on the type of feeding mechanism. (tractor or by hand), additional use of the alley
(storing equipment), and the type of feed (round bale, small square bale, or large square bale).
Generally, the cost per square foot for building a barn goes from $15 to $40. John Porter,
University of New Hampshire Extension, gives a cost at $20 to $25 per square foot for a pole
barn. A goat needs from 15 to 40 square feet including space exercise and feed alley. Values of
the buildings assume a 20% Lost Capital and a useable life of 20 years.
For each farm, we assume three buildings that house lactating and dry does; yearlings and kids;
and one for bucks. For the 400 goat operation, we assumed four barns with two barns for
lactating and dry does. Barn sizes and the explanations on how the barn size has been calculated
are presented in the appendix section. For more details on how to assess the building size for your
herd, go onto the appendix section.
A note to the reader about buildings: Ventilation is keenly important to the health of the
doe, the buck and the kids in a dairy goat operation. Proper ventilation can lead to high
production levels, decreased sickness, and excellent growth and high vigor rates. However, the
opposite is true and can lead to higher vet costs, slower kid growth, lower milk production, and
other issues. Thus you need to evaluate this closely when modifying old buildings or when
putting in new buildings. Do not under estimate how critical this factor is to the overall health of
the animal and to the operator.
8
The main elements to take into consideration related to ventilation are: temperature, moisture and
the amount of ammonia in the air.
Temperature
Goats will survive in cold weather but only when it is introduced over a period of time. Abrupt
variations will change humidity levels, leading to condensation on the buildings, as well as
Building optimum temperatures are 10-12°C (50-53.6 °F), by avoiding sudden differences.
Maximum temperature is about 27°C (80.6°F) as possible as you can and a minimum would be
simply to avoid frozen water and goats need to eat more.
Moisture
A goat lost 1.2 to 1.5 liter per day (40-50 Oz) and adding the urine from the bedding. It is
recommended to do not pass the 80% of moisture. The optimum hygrometric measure would be
70 to 75%.
Ventilation
A goat needs at least 5 to 6 cubic meter of air (177 to 212 cubic foot).
Air should be renewed during winters about 30 m3 per hour per goat (1060 cubic foot) and
during summers about 120 to 150 m3 per hour and per goat (4238 to 5298 cubic foot). Given
these recommendations come from France, Vermont winters are colder and the air renew would
be less. However, an air renew still have to be performed in order to avoid respiratory issues.
Those recommendations have to be adapted at each situation because building layout and
ventilation system (static or dynamic) play significant roles on in-house ventilation.
C. Equipment
Minimal equipment is needed on a dairy goat farm with no use of the land. Equipment needed is
milking machine and a tractor with bucket loader. The tractor with a bucket loader is used to haul
hay, haylage, feed and/or corn silage, move manure and other activities. The used small tractor on
the 100 and 200 goat operation has a $12,000 value for the first two example farms while the 400
goat operation has a tractor valued at $50,000. (It is important to remember that you must wash
the tractor and especially the bucket between moving manure and then using the tractor for
feeding purposes).
D. Milking Parlor & Equipment
According to the herd size, we assume each has a different size of milking parlor.
The value of the milking center depends on several factors, including the bulk tank size, type of
milking parlor (Herringbone, Straight-through, Parallel, Rotary), number of stanchions and
others.
The type of the milking parlors has to be chosen according to the housing layouts, herd size, labor
availability, time of milking (goats/hour), capital investment and expansions planned, distribution
of feed or not and animals flows. These factors have to be taken into consideration without losing
sight of the main targets of high quality milk and a milking parlor adapted to the milk handler.
9
The milking equipment contains bulk tank, milking machine with the claws, vacuum pumps,
stainless steel pipelines, hot dipped galvanized parlors along with the associated milk house sink,
hot water tank and miscellaneous items. The size of the milking parlor changes relative to the
herd size. Therefore, we assumed that for 100 goats, a double four or single 8 goat parlor; for 200
goats, a double 8 parlor, and for 400 goats, a double 12 is necessary. For more details, go onto
appendix and find the explanations for the “Other Equipment” line. When planning a goat
operation it is wise to consider potential expansion to a larger size even though you may not
expand to that size. This consideration will allow one to evaluate the practicality and profitability
of various pieces of milking parlors and equipment.
100
Double 4 or single 8 hot
dipped galvanized goat
parlor
200
$ 2,600
Double 8 hot dipped
galvanized goat parlor
$ 5,200
500 gallon used bulk tank
$ 3,500
1 000 gallons used bulk
tank
$ 7,000
Other milking equipment
$ 6,810
Other milking
equipment
$ 14,210
Total Cost
$ 10 400
400
Double 12 hot
dipped galvanized
goat parlor
$ 7,900
2 000 gallon used
bulk tank
$ 14,000
Other milking
equipment
$ 12,440
$ 25,300
$ 34,300
Bulk tank size varies by the number of goats milked each day, goat milk production and milk
storage time 2 – 4 days. The milk room size must meet Vermont state inspection standards
although it is recommended at least 200 square feet unless you are “bulkheading” the tank to the
outside.
E. Livestock
In this paper, a goat has a value of $150, a yearling of $100 and a buck of $200. Consequently, a
100 goat farm will have 100 goats at $150 each, 10 bucks at $200 each and 25 yearlings at $100
each, with a total herd value of $19,500. Thus, the 200 goat farm has a $39,000 livestock capital
and the 400 goat farm has $78,000 invested in livestock. Unfortunately, only two farmers in our
study had this critical information and we had to rely on averages. The value of each category of
animals must be assessed by the individual performance, data and genetics.
F. Summary
Land
Buildings
Equipment
Livestock
Total Assets
Unit
Acre
$
$
$
$
Farm 1
15
$65,000
$85,500
$24,910
$19,500
Farm 2
20
$90,000
$118,000
$34,600
$39,000
Farm 3
30
$165,000
$199,000
$84,300
$78,000
$
$194,910
$281,600
$526,300
10
The assumptions above are very important and further explanations will allow you to understand
how and where we came to our numbers. The above assumptions are references that a dairy goat
farmer should reach; it does not mean that it is the ideal farm. Assumptions come from french
studies whereas the actual numbers are from Vermont dairy goat farms and applied to the three
sample farms.
Again, this document should be used as a guideline to compare your current existing farm or give
you an idea on what numbers must be taking into consideration. You need to apply your situation
to the sample farms to improve your operation.
11
IV
Income Sources
1. Milk Sales
A. Vermont Butter and Cheese Company Milk Price
In the Vermont Butter and Cheese Company agreement signed between VBCC and the “sample
farmers” in this study the milk pricing is calculated as:
“Payment to the Producer for milk purchased by Vermont Butter and Cheese Company will be
bi-weekly with the applicable quality bonuses being paid after the end of each month. Current
pricing formula recognizes two payment periods: 1. Quota and 2. Over Quota periods. The
Quota Milk is considered as the total of all pound of milk protein lbs. per week with pickups
made between October 1st through January 31st (17 weeks) or November 1st through February
28th (16 weeks) or November 1st through March 31st (22 weeks) whichever is the highest weekly
average number. Milk purchased during this period is rated in 2006 at $11.50 per pound of
protein up to the limit set by the Quota Period, and $9.00 per pound of protein beyond the Quota
limit.”
Please note that there are 17 weeks between October and January and 16 weeks between
November and February but 22 weeks between November and March. Thus, the weekly
production must be calculated to determine the highest weekly average milk protein lbs.
production for the quota period. These prices are subject to change as the goat milk market
changes.
B. Assumptions
In these farms, the milking goats produce 1,700 lbs of milk per year. This means a 5.6 lb/day
average for a lactating goat producing for 300-day or 6.8 lbs/day for 250-day lactation. We
assumed that the average protein level is 3.34% for all the year within a range of 2.9% to 3.7%
and the butterfat level is 3.64% within a range from 3.3% to 4.25%. These calculations are based
on an average of all the farms that shipped their milk, in 2005, to Vermont Butter and Cheese
Company. The over-quota protein level has been calculated by taking a year similar to 2006.
A bonus is paid for milk quality, depending on raw bacteria count, somatic cells count,
preliminary incubation count and laboratory pasteurized count.
In this scenario, we assumed that each month the quality milk reached “Level Two” meaning
$3.45 per hundredweight, which corresponds to about 10% of the milk income. For the current
dairy goat farms, some reach $5.00 per hundredweight, some have no income and few get
penalties since they are beyond the regulation limits (Grade “A” Pasteurized Milk Ordinance).
Moreover, a winter premium is given at $0.50 per hundredweight from October through January.
This winter premium is included in the bonus.
For more details, go to the appendix section.
12
C. Milk Income
Milk income
Unit
Herd size
100
Milk production
Incomes
200
400
Lbs
$
156,400
$ 54,866
312,800
$ 109,733
625,600
$ 219,466
$
$ 6,261
$ 12,523
$ 25,046
$
$ 61,128
$ 122,256
$ 244,512
Bonus
Total Incomes
The total income per goat is $611 and per hundredweight is $39.10 for any farm size.
2. Animal Sales
In Vermont, dairy goat farmers sell their cull does, bucks, and goat kids to different locations.
Goats can be sold to a cooperative that raise kids until 2 or 3 months old, to another dairy goat
farm which wants to increase its herd, to an auction broker or other coop, or to a retailer. The
meat goat market fluctuates every season depending mainly on the ethnic events thus we utilized
a lower than average price to take into consideration the range in prices that may occur with the
seasonal fluctuation.
Typically, goat kids are sold at one week old, and cull animals are sold as needed, thus income
from selling animals is not significant compared to milk income and are not the aim of a dairy
goat farm. In this paper, we used the following prices: $8 per kid, $64 per doe culled and $100
per buck. These prices have been reported from farms which sell goats to others and animal
buyers in Vermont.
Selling animals income:
Animal
Kids
Cull animals
Bucks
Total Incomes
Rate
$8.00
$64.00
$100.00
100
Quantity
116
25
3
200
Income
$ 928
$ 1,600
$ 300
$ 2,828
Quantity
230
50
7
400
Income
$ 1,840
$ 3,200
$ 700
$ 5,740
Quantity
460
100
13
Income
$ 3,680
$ 6,400
$ 1,300
$ 11,380
These numbers may be underestimated because of the market trend. In fact, during the ethnic and
/or religious events (Eastern, Christmas, Aid al Fitr…), the meat market is much stronger and the
incomes may be more important.
Note that by breeding out of season fall kids can be good candidates for Christmas holidays when
prices are stronger. Both of these goat dairy animal markets should be considered when planning
a goat dairy operation.
For more information on the goat meat market www.sheepgoatmarketing.info is a USDA-funded
project to improve the marketing infrastructure for goat and sheep producers.
However, if you already know someone who is ready to pay more or less, in the appendix section
a table shows different levels of income depending on the market price.
13
Raising breeding stock is a possible way to increase income. A partial budget might be useful to
show the profitability or not of raising. Selling breeding stock can be cost-effective and
consequently a good source of income if records and goats are excellent. Breeding stock can be
sold at $400 or more each. This can be significant if kids are available for sale. At a 25% cull rate
and a 1.56 kidding rate per doe per year there will be excess kids for sale or “internal growth” of
the goat herd. However, during some years one may find that the culling rate on the goat herd
may increase to 30% or 35% for a variety of reasons. Unlike the bovine industry, this increase in
cull rate may not significantly affect the net cash flow on the small goat herd as this percentage
income change on cull goat income and kid income is not significant compared to the overall
operational income and costs. It should be remembered that keeping cull rates low allows one to
sell more high quality replacement kids and increase the goat herd but the genetic and production
potential of the herd may not increase as rapidly as with a high cull rate herd.
3. Other Sources of Incomes
Depending on your current or future situation, other related or diversified activities can increase
your gross income.
A. Directly from the goat operation
Income coming directly from goats: Goats manure is more a cost than a revenue but processing
this manure into compost and sold to the public may be a profitable venture in an urban or other
niche market. Semen from bucks with high genetic potential can be sold, again that depends on
buck’s performances and long-term dairy production records from the herd are essential to enter
into this market. Processed milk (cheese, bottled milk, and other products) from the farm and into
the retail market has not been taken into consideration because in this paper, all milk production
is sold to Vermont Butter and Cheese Company. Processing milk on the farm is another business
and needs much more investment, knowledge, product storage, and marketing expertise. In
addition, retailing the milk and other products can be advantageous but it requires extensive
business and marketing knowledge and experience.
B. Other Income
There are several other sources of income including: selling crops, maple syrup sales, forestry
sales, and governmental payments among others. Governmental program can come from Natural
Resources Conservation Service (Conservation Security Program, Conservation Reserve
Program…) or other institutions (such as: Farm Service Agency and VT Agency of
Agriculture…) thus allowing you to have income from the federal Government and the state
under certain conditions.
Do not underestimate the value of government programs because participating in government
programs has been shown to help farm income significantly. Federally sponsored programs such
as: EQIP (Environmental Quality Incentive Program), CRP (Conservation Reserve Program),
CSP (Conservation Security Program) and state sponsored programs which help match state
funds with those federal programs are available at some level for nearly all landowners and
agricultural producers in Vermont. There are restrictions, cost share requirements, and limitations
14
for each program. For more information, contact your local Farm Service Agency office and the
Agency of Agriculture to determine which programs you may qualify for.
15
V
Expenses Categories
1. Feeding Program and Costs
A. Presentation
Feed is the largest part of the production cost and different feed rations are proposed based on
300 productive days and a 65 day dry period.
A 150 lb. milk producing goat ingests approximately 1,000 kg (2,200 pds) of dry matter a year
depending on the feeding system. Feed rations presented here are examples but not
recommendations. Each farmer should evaluate the nutritional value of the feed, their goats, their
feeding systems and other variables and then develop their own feeding regimen. For this paper
we adjusted feed possibilities to include corn silage, hay and haylage. We have avoided the use of
dehydrated alfalfa pellets although they are commonly used in France to feed goats. The price of
this feed in Vermont was prohibitive at the time of this paper for the Vermont dairy goat
operation. Unfortunately, the French feed calculation system can not be used in North America
and the methods of calculation and units cannot be used in North America. However, feed
quantities ingested by goats are the same as in France. We also know that there is a wide
variation of feeding regimens thus that is why we propose three different rations. Feed rations
below were made by personnel working at Institut de l’Elevage in France. In addition, there may
be much to be learned from the French system (along with modifications from that system) to
efficiently feed dairy goats which could lead to higher production in your herd.
B. The French System
The French calculation system differentiates, for a yearly production cycle, five stages that are
defined mainly by the lactation and pregnancy stages therefore by the needs in energy and protein
as well as dry matter needs.
These five stages are:
i.
Start of lactation
During this 30 – 60 day period, milk production is high. Energy needs typically cannot be
balanced by only the ration, thus the body reserves are used. However, a high level of energy has
to be provided to goats. Protein needs can typically be met by feeding high quality grains. Dry
Matter Intake (DMI) may not be sufficient as well.
ii.
Core of lactation
From the second – seventh month of lactation, milk production decreases and feed intake
increases thus the rations ingested tend to equal the body and lactation needs. The DMI is highest
during this period.
16
iii.
End of lactation
This consists in preparing for the dry period therefore changing and decreasing slowly the
amount of feed but not the nutrient concentration of the feed.
Pregnant goats are fed with the best quality forage for the following two stages, which are:
iv.
4th Month of Gestation (1st – 30th day of dry period, and one month prior to
kidding)
The 4th month of gestation has to aim to decrease the energy contained in the feed ration because
the milk production is zero and it is preferable to not fatten goats during the dry period.
v.
End of Gestation (30th to 60th day of dry period)
The energy contained in the feed ration is increased to cover the pregnancy’s needs and to
prepare the goat for the following lactation. The first two months of lactation demand a lot of
energy as well as calcium in the goats’ milk.
C. Feed rations
The “Dairy Goat Pellet” is a commercial purchased grain. It typically consists largely of corn,
soybean, and wheat products. This feed typically has 16 - 20% protein and 78 - 84 Mcal/lb of
NEL (Net Energy-Lactation).
i.
Ration 1: “Corn silage ration”
Milk Production: 1,700 lbs per Goat per Year.
Months
Dairy Goat Pellet
Corn Silage
Hay (grass)
4th month of
End of
Gestation Gestation
Ration
Ration
Start of
Lactation
Ration
Core of Lactation
Ration
End of
Lactation
Ration
2
6
2
1
1
1.54
3.08
2.20
1.32
2.64
2.20
1.10
2.20
2.20
0.88
0.00
3.96
1.32
0.00
3.96
Quantity in lbs per day. Corn silage and concentrate in lbs of dry matter whereas Grass hay is on an as fed basis.
17
ii.
Ration 2. “Haylage Ration”.
Milk Production 1700 lbs per Goat per Year.
Months
Dairy Goat Pellet
Barley
Corn
Haylage (Grass)
Start of
Lactation
Ration
Core of Lactation
Ration
End of
Lactation
Ration
2
1.10
0.66
0.88
1.54
6
1.10
0.66
0.88
1.54
2
0.88
0.66
0.66
1.10
4th month of
End of
Gestation Gestation
Ration
Ration
1
0.44
0.66
0.00
0.00
1
0.66
0.66
0.22
0.00
Hay (grass)
2.86
2.86
2.86
3.96
3.96
Quantity in lbs per day. Grass hay in lbs per day as fed whereas the other feeds lbs per day of dry matter.
iii.
Ration 3. “Dry ration”: Alfalfa and Grass Hay.
Milk Production 1700 lbs per Goat per Year.
End of
4th Month of
Gestation Gestation
Ration
Ration
Start of
Lactation
Ration
Core of Lactation
Ration
End of
Lactation
Ration
2
6
2
2.75
2.75
2.42
2
2
2
2
2
2
2
Barley
1.76
1.76
1.54
0.88
0.88
Soybean
0.33
0.33
0. 22
0.00
0.00
Months
Alfalfa Hay
Hay
1
1
Quantity in lbs per day. Alfalfa and Grass Hays on as fed daily basis. Barley and Soybean can be substituted by a
commercial feed.
iv.
Kids and Yearlings
The five interviewed farms typically wean kids from 2 months to 3 months. However, all have
individual variations to that program. The sample farms added hay and concentrate at one or two
weeks after kidding. Breeding age ranges from 8 – 12 months of age depending on size and
weight of doelings.
The kids and replacement milk replacer feeding programs vary widely in the field. Thus Langston
University provides recommendations on kids management especially on the quantity of milk
replacer. Their recommendations below are:
Age
Amount of Fluid/Feeding
1 to 3 days
4 ounces
3 days to 2 weeks
8 to 12 ounces
2 weeks to 3 months
16 ounces
3 to 4 months
16 ounces
Feeding Schedule
5 times a day
4 times a day
3 times a day
2 times a day
Source:Dr. Lionel Dawson, 2006, http://www2.luresext.edu/goats/library/field/dawson06.pdf
18
Weaning time advised by Langston University is at 4 months of age whereas, In France, an eightweek weaning (P.E.P Caprin, L’élevage des chevrettes) can be performed under certain weight
gain conditions. Kids must reach 20 lbs weight by one month of age and 26 lbs. at two months of
age with proper body growth as well. This objective must be reached to breed goats at seven
months old.
One of the keys to early weaning is to have high quality water, hay and concentrate available at
the earliest possible date (1 – 2 weeks of age). However, this balancing act of having high quality
feed at early age must be balanced with providing high quality milk replacer at the amounts
needed.
From weaning to 4 months old, body growth is important and a good quality feed should be
available. By 4 months of age, replacement kids should be grouped by the bodyweight and is a
good way to provide feed for optimum consumption. Moreover, at this particular age, the risk of
excess concentrate ingestion is reduced.
Therefore, we assumed that a 2.5-month-old age is the weaning period and the breeding period
should be at 7 to 8 months.
Feeding program
Animal
All kids
All kids
Stage
From one to three days
old
From 3 to 7 days old
From 1 week to 2 week
old
From two week to two
month old
Kids
From 2 to 2.5 month
replacement From weaning to 4 month
old
From 4 to 7 month old
7 - 8 month old (breeding
period)
Number of
Day
Weight
Colostrum
Milk
Feed per day
Quantity Replacer Fed
(Lbs)
(Oz)
(Oz)
3
Hay (Lbs)
20 oz
4
40
7
40
0.4
1.8
48
0.4
1.8
32
0.4
1.8
0
0.9
2.4
0
1.1
2.9
0
1.3
3.1
45
1month = 20
lbs
15
45
At least 26 lbs
90
30
At least 65-75
lbs
For ease of calculations, we assumed that kids are fed only milk replacer. Farmers use half milk
replacer, half goat milk, to decrease the cost of feeding animals. Goat’s milk that cannot be
shipped to Vermont Butter and Cheese because of the colostrum to be given during the first three
days of life can be stored in the freezer and given after a heat treatment (CAEV disease).
Remark: In France, goat’s milk within the first seven days after kidding is not sold to any
creamery thus colostrum and milk is feed to the new kids up to seven days of age.
In this study, we used a full milk replacer feeding program for the new goat kids on the three
sample farm sizes included in this study.
19
D. Feedstock
To calculate the total feed needed per year per ration type, we need to consider consumption and
feed waste per year. This waste of corn silage and hay is due to quality, feed selection, and other
factors. Forages (grass & alfalfa hay) losses amount to 15%. However, some of this waste can be
re-used as bedding. Corn Silage losses are generally 10% or more. (La Chèvre, 1991). However,
we did not calculate any grain rejection.
i.
Ration 1
Total
Consumption
(Lbs/goat/year)
Feedstock (US Ton)
100
ii.
400
Dairy Goat Pellet
468
23.4
46.8
93.7
Corn Silage
2510
126.6
276.1
552.1
Hay (grass)
910
48.2
104.7
209.3
Total
3888
198.2
427.6
855.2
Ration 2
Total
Consumption
(lbs/goat/year)
iii.
200
Feedstock (US Ton)
100
200
400
Dairy Goat Pellet
355
17.7
35.5
70.9
Barley
241
12.0
24.1
48.2
Corn
261
13.1
26.1
52.2
Haylage (Grass)
442
22.1
44.2
88.3
Hay (grass)
1111
55.5
111.1
222.2
Total
2409
120.5
240.9
481.9
Ration 3
Total
Consumption
(Lbs/goat/year)
Feedstock (US Ton)
100
Alfalfa Hay
950
54.6
200
109.3
Hay
803
46.2
92.4
167.9
Barley
576
28.8
57.6
104.6
Soybean
94
4.7
9.4
17.0
134.3
268.6
508.2
Total
2423
20
400
218.6
E. Feed costs
Below are the prices per ton for feeds in Vermont and the surrounding states.
Price
($ / US Ton)
Feed
Forages and Silages
Haylage (Grass)
Hay (grass)
Alfalfa Hay
Corn Silage
Grains
$50.00
$150.00
$175.00
$30.00
Barley
Corn
Dairy Goat Pellet
$150.00
$110.00
$235.00
Feed prices change often and you need to calculate your own cost accordingly. The prices above
are realistic and we obtained them by consulting UVM professors, feed companies and farmers.
Obviously, your situation may be different depending on the feed availability around your farm,
purchasing in large quantity, type payment plan (prepayment, cash, check, payment upon
delivery, deposit, 30 days, as you can, or bank payment check), season, and market fluctuation.
In general, the more you buy and the closer payment is to “cash” prior to delivery the more
discounts that are available to you.
21
i.
Goats
(1) Ration 1
Total Consumption
(Lbs/goat/year)
Price ($) /
US Ton
468
2,510
910
3,888
$235.00
$30.00
$150.00
Dairy Goat Pellet
Corn Silage
Hay (grass)
Total
Cost ($) per year
$55.04
$37.64
$68.26
$160.95
(2) Ration 2
Total Consumption
(Lbs/goat/year)
Price ($) /
US Ton
Dairy Goat Pellet
355
$235.00
$41.68
Barley
241
$150.00
$18.07
Corn
261
$110.00
$14.36
Haylage (Grass)
442
$50.00
$11.04
1,111
$150.00
$83.32
Hay (grass)
Total
2,409
Cost ($) per year
$168.46
(3) Ration
Alfalfa Hay
Hay
Barley
Soybean
Total
Total Consumption
(Lbs/goat/year)
950
803
576
94
2,423
Price ($) /
US Ton
$175.00
$150.00
$150.00
$300.00
Cost ($) per year
$83.15
$60.23
$43.17
$14.05
$ 200.60
22
ii.
Doelings and Kids
Kids are sold at one week old and that number of kids corresponding to 25 % of the herd size is
kept at the farm for replacement.
The milk replacer and the concentrate is a commercial feed available on Vermont farms.
100
Feed
Price ($) /US Ton
Quantity
(US Ton)
Milk replacer
Hay
Concentrate
$3,170.00
$150.00
$74.43
0.37
7.20
2.60
Total cost
200
Costs
($)
$1,161.67
$1,079.48
$193.22
$2,434.37
400
Quantity
(US Ton)
Costs
($)
Quantity
(US Ton)
0.73
14.39
5.19
$2,323.35
$2,158.95
$386.44
1.47
28.79
10.38
$4,868.74
Costs
($)
$4,646.70
$4,317.90
$772.88
$9,737.48
F. Summary
Ration 1 + kids
Ration 2 + kids
Ration 3 + kids
100
Total
Per goat Per cwt
$19,930
$199 $12.74
$23,055
$231 $14.74
$24,646
$246 $15.76
200
Total
Per goat Per cwt
$39,860
$199 $12.74
$46,109
$231 $14.74
$49,291
$246 $15.76
400
Total
Per goat Per cwt
$79,720
$199 $12.74
$92,218
$231 $14.74
$98,582
$246 $15.76
Feed cost may reach as high as 50% of all expenses. In this paper, we found that it goes from
34% to 46%. However, in 2005 on the five sample farms in this study, the cost went from 18% to
30%. This difference may be explained by accrual adjustments such as inventorying how much
was purchased vs. how much was fed throughout the year. To do the accrual adjustments farmers
need to take a feed inventory at the beginning and at the end of the year as well as amount spent
throughout the year. In addition, there may have been some minimal feeding outside of the barn,
in exercise lots, and pastures. Decreased losses may have also attributed to this variance.
Feed commodities prices fluctuate weekly and amount fed/herd throughout the year fluctuates.
2. Bedding
A goat needs about 300 kg of straw as bedding & litter per year however most Vermont farmers
use wood shavings as bedding. A survey (April 2006) shows that the price, in Vermont, for wood
shavings goes from $200 to $300 per ton and the straw is more than $400 per ton. However,
wood shavings availability is variable and is often an issue. Given the high price of straw as
compared to wood shavings, the latter is used for goats in Vermont and we assume that 450 kg is
needed per goat per year based on Vermont farm data available. Another source of litter is the
hay waste. Wasted hay is roughly 15% of the total quantity distributed or 80 kg and most of it
ends up at bedding. The cost would be $25/goat/year for a 100 dairy goat operation.
23
Typically, larger farms get a 10% discount on bedding costs thus the cost per goat and per year is
$25 for a 100 goat operation, $22.50 for 200 goats and $20.25 for 400 goats.
Goat Herd (Head)
Quantity (US Ton)
Bedding Cost ($)
Dairy Goat Farm
100
200
400
37
75
148
$ 2,500
$ 4,500
$ 8,100
It is interesting to note that older information on bedding in other states show the cost of bedding
much less than in Vermont. In fact, a New Jersey University Extension paper, published in 1996
showed a study mentioning a bedding cost at $7.5 per goat ($50 per ton of straw and 330 lbs per
goat per year). The state of Pennsylvania published in 1998 showed a dairy goat budget giving
the same amount of money per goat per year. Moreover, from $2.00 to 3.00 costs per head are
taken into consideration on goat meat farm budget (University of Kentucky, Maryland
Cooperative Extension). However, it is recognized that shavings cost have more than doubled
since the 1990’s and one should expect these costs to be higher than in previous years. There may
be room for improvement in this cost with proper management.
3. Vaccination and Health Care
Goat health and vaccination programs differ from farm to farm and rely on historical
performance at the farm but we found that a majority of people used the medicine mentioned
below.
No vaccination was required by the state of Vermont during the preparation of this paper, so
procedures here are recommended by veterinarians in Vermont. Although animal identification is
not a law at the time of this writing, it is highly recommended and benefits of animal
identification far outweigh any minor costs for identification.
Vaccination and medicines used include CD-T vaccines (Enterotoxemia and Tetanus), rabies,
foot rot, deworming and mastitis. According to the field practices, kids are vaccinated twice
against Enteroxemia and Tetanus. Against foot rot, kids and goats receive two shots and one shot
respectively against rabies. Goats are also dewormed three times. Total cost for vaccines was
$8.50.
Mastitis, one of the most costly and damaging infections for goats, (as well as cows, and every
other milk producing animal) costs $10.00 per head for treatment. We presume that mastitis will
appear on every farm because of several things including environment (weather, stress, clean
bedding…) and farm practices (pre-and post-dip teats, vacuum levels, changing inflations,
stripping milk, …). Although the level of infection may be minimal or very high, the authors
have set at the level of infection 5 % of the herd during a year when proper sanitation practices
are used. That means, only five goats on 100 goats will have mastitis.
Hoof trimming and dehorning costs are not included in Vet & Medicine cost as they are
completed by the farmer, however not always. Thus, we have included 10% miscellaneous cost to
the veterinary & medicines budget to cover these costs.
More details on the vaccination program are available in the appendix section.
24
Unit
Dairy Goat Farm
Head
$
Head
$
100
$ 950
25
$ 125
200
$ 1,900
50
$ 250
400
$ 3,800
100
$ 500
Others (hoof
trimming/dehorning)
$
$ 108
$ 215
$ 430
Total Cost
Cost per Animal
$
$/Goat
$ 1,183
$ 11.8
$ 2,365
$ 11.8
$ 4,730
$ 11.8
Goats
Replacement Kids
For the purposes of this paper, we assumed a constant cost per farm size. Although travel and
time per goat costs may go down its anticipated that management factors may increase costs as
the farm gets larger thus offsetting per goat savings.
Our costs appear to be higher than other states however, those budgets were completed in the
1990’s and corrected for inflation those budgets may be comparable to ours in 2006. Meat goat
data from University of Kentucky, Rutgers, and The Ohio State University show costs at $4.00 to
$7.00 in the 1990’s.
For a dairy goat operation, the University of Pennsylvania
(http://pubs.cas.psu.edu/FreePubs/pdfs/ua260.pdf), in 1198, shows a $10.00/head cost.
As a conclusion, the cost in this budget is higher than what the other states have taken into
consideration. These disparities can be explained by higher standards of vaccination, care and
2006 pricing.
Source:
http://aede.osu.edu/Programs/FarmManagement/Budgets/AS-14-0211.pdf,
www.sheepandgoat.com/spreadsheets/meatgoatbudget2004.xls
agalternatives.aers.psu.edu/livestock/meatgoat/meat_goat.pdf
www.uky.edu/Ag/AgEcon/pubs/software/GoatBudgets.xls.
25
4. Dairy Herd Improvement Association (DHIA)
A. General
DHIA is used to improve the farmer’s knowledge of individual and overall milk production (milk
weight, protein, butterfat and somatic cells), herd age, breeding and kidding date and other
records. These objectives allow higher profitability margins, animal selection and finally better
management. The Vermont DHIA office has provided this information.
The farmer has a wide range of options with DHIA services. However we assume the following
options are used on the farm:
• Milk weight/butterfat/protein/SCC tests
• Sampling and recording made by a DHIA technician
• Software PCDART (reports of individual animal: production, goats to kid, to dry off, to
breed…)
• Renting milk meters
B. DHIA Monthly Cost
Herd size
Meters
Standard cost (MW)
MW + SCC
MW/BF/Prot
MW/BF/Prot/SCC
MW/BF/Prot/SCC/MUN
100
8
200
16
400
24
$ 188. 24
$ 208. 24
$ 213. 24
$ 228. 24
$ 253. 24
$ 288. 32
$ 328. 32
$ 338. 32
$ 368. 32
$ 418. 32
$ 486. 00
$ 566. 00
$ 586. 00
$ 646. 00
$ 746. 00
MW: Milkweight, BF: ButterFat, Prot: Proteins, SCC: Somatic Cells Count, MUN: Milk Urea Nitrogen
As you can see there are plenty of options but for purposes of this paper we assumed that farmers
chose milkweight/ butterfat/ protein/ somatic cells count as the standard package.
The DHIA cost per year, as an example, for 100 goats, is $2,739($228.24 X 12 months).
DHIA should be considered a long-term investment as well as a standard operating cost. It is also
useful tool to take advantage of animal potential and to cull many undesirable animal traits.
5. Hauling Costs
Hauling is provided by Pouliot & Corriveau for Vermont Butter and Cheese Company. The total
hauling cost is shared between Vermont Butter and Cheese Company and farmers.
Hauling costs are calculated by a stop charge depending on the farm location from Vermont
Butter and Cheese Company and farm location, plus a charge per hundredweight. We also
included the dues and promotion fee. For this paper, we assumed a $50 stop charge (20 miles
from the plant) with a cost at $0.50 per hundredweight (cwt) of milk.
26
The milk promotion fee is a contribution to the Vermont milk industry promotion at 10 cents per
cwt weight of milk. The funds are used to research and promote goat milk and goat milk
products.
Hauling
Herd size
Unit
100
200
400
Stop Charge
$
$5,200
$5,200
$5,200
Charge per Hundredweight
$
$807
$1,615
$3,230
Dairy Promotion Fee
$
$162
$323
$646
$
$/head
$6,169
$61.69
$7,138
$35.69
$9,076
$22.69
$/cwt
$3.82
$2.21
$1.40
Total Hauling Cost
Please note the “economies of scale” available at higher herd sizes.
6. Hired labor
A Labor rate of $10 per hour for a hired person is used. It includes wage, Social Security and
Medicare taxes, FICA, workman’s compensation and FUTA taxes where applicable. This may be
different in your area.
The time spent to milk goats is about 6 hours per day for the herd size listed with the parlors
listed, however, your time may vary depending on number of goats milk, parlor size, procedures
used, age of goats, and other factors. It also takes one hour per milking to clean the milking
parlor, milk house, and milking equipment regardless of goat herd numbers. The second largest
amount of time is spent feeding animals and then the third most time is goat management.
Efficiencies in milking time can be made by increasing parlor size and automation of milking.
Other efficiencies can be made with feeding by sizing the feed storage facility, utilizing mixer
wagons, bucket tractors, and other mechanical means to reduce labor costs. We have seen cases
where 400 goats can be milked in three hours per milking.
The employee on a 400 goat operation typically milks the goats with the farm operator and
provides many tasks such as feeding, breeding, goat management functions, and perhaps some
building and machinery repair. Typically, a farm employee will work 50 – 60 hours a week with
one – 1.5 days off/week. Although labor costs show $26,000/year additional costs may be
“hidden” in benefits such as housing, insurance, produce and other items.
7. Supplies and Miscellaneous
This line item typically contains a variety sort of expenses such as: neck chains - to identify
animals, paper towels, pre & post teat dipping products, nipple buckets, expendables, outdoor
supplies and other items that are used once and thrown away or have a life of less than one year.
The financial data from four farms (excluding one because of the marketing costs included in this
category) give a range from $29 to $49 per head. Chemicals were categorized separately and thus
we used a $30/head average.
27
Milkhouse chemicals were estimated at $639, $735 and $865 for the 100, 200 and 400 goats herd
respectively. These calculations show a price decrease per goat from $6.39 to $2.16.
8. Diesel, Fuels and Lube
It is assumed that each farm has a tractor to distribute feed, clean barns and other activities.
We assumed different horsepower tractors between the three farm sizes, 40, 60 and 80 HP for the
100, 200 and 400 goat dairies, respectively. No costs were associated with growing crops as the
goat herds in the program did not raise crops and had minimal pasture. Typically, corn silage
rations utilize the tractor more than with hay and haylage rations. Costs were one hour per day
with corn silage and half hour per day with dry hay and haylage systems. Lubrication costs were
allocated at 15% of the total fuel costs.
Barn cleaning was performed every two weeks depending on weather, at two hours per cleaning
or 50 hours per year. Additional uses for the tractor were also calculated at 50 hours per year.
Consequently, tractor use may be from 282 hours per year to 467 hours per year depending on
feeding type, size of operation, tractor size, and outside activities. Diesel price considered here is
$3.00 per gallon due to the inflation, the 2005 price were $2.28 per gallon.
The cost calculations have been made by using American Agricultural Economics Association ‘s
method enclosed in the Commodity Costs and Returns Estimation Handbook
(http://www.economics.nrcs.usda.gov/care/Aaea/ p.5-32 - 5-34)
100
200
400
Ration Corn Silage (1)
$ 2,823
$ 4,234
$ 5,645
Ration Hay and Haylage (2 and3)
$ 1,717
$ 2,575
$ 3,433
9. Utilities
For this category, the cost ranged from $20 to $50 per goat and related to size. This category also
includes the cost for electricity and business phone.
28
10. Repairs and Maintenance
In this cost category, livestock buildings and equipment are included to estimate the yearly cost.
Given the data of the five farms surveyed, a range per goat is from $156 to $6,660. Thus with this
wide variation it shows the difficulty to estimate the yearly cost. However, Doane (Farm
Management Guide, 1985) estimates repair and maintenance of buildings at 2-3% of original purchase
or construction cost. Thus, we assumed an estimate for the cost of repairs and maintenance based on
the value of the buildings and equipment rather than utilize the data provided by the sample farms.
Value
Buildings
Milk Equipment
Equipment
Repairs and Maintenance
100
$85 520
$12 910
$12 000
200
$118 000
$22 600
$12 000
400
$199 040
$34 340
$50 000
$3 313
$4 578
$8 501
11. Taxes
Real estate taxes vary from state to state and between towns. There are also Current Use Taxation
Programs that allows the taxation of real estate based on its current agricultural or forestry use
rather than its developmental possibilities. The following table has estimated taxes expense in
this study:
Value
Surface (acre)
100
15
200
20
400
30
House (acre)
2
2
2
Farm (acre)
13
18
28
Acres Value ($)
Buildings Value ($)
$ 65,000
$ 85,520
$ 90,000
$ 118,000
$ 140,000
$ 199,040
Taxes ($)
$ 4,515
$ 6,240
$ 10,171
Taxes are obtained by the following calculation:
Taxes expense = (Acres Value + Buildings Value) * 3%
The three percent value is the Vermont average tax factor in 2005. That means for each $100
building or acre value, $3 will correspond to the tax.
Equipment is not subjected to the real estate taxes.
12. Interest and Principal
The farm business expense interest corresponds to the farm mortgages or/and other obligations
(loans) that you incur in your farm business.
In Vermont, the interest rate is about 7% of the total loan value. We caution the reader to
understand that the different assets are financed over a different period of time. Most of the time,
loans on land and buildings assets are paid off over 20 years while equipment loans are on 7
29
years payback periods and livestock are financed over 5 years. Livestock can be financed over 3
or 7 years depending on the replacement rate. However, it is advisable to pay off the livestock
mortgage at the same rate as animals are culled from the herd. Thus, a culling rate of 30% means
that animals should be financed over 3 years whereas a cull rate of 20% means financing over 5
years. Generally, the greater the number of animals, the higher the debt, as financing becomes
more a part of the overall business strategy. The smaller operations tend to have loans against the
real estate but not against the goat herd itself. (Or at least not to the same level per goat as at the
larger goat herds). Thus for the purposes of this paper we assumed that the 200 and 400 goat size
herds are financed at the 50% level by the bank whereas the ownership of the small 100 goat
operation is 100% by the owner and the land and equipment is financed at the 50% level.
100
200
400
Personally Owned Value Personally Owned Value Personally Owned Value
Land + Buildings
50% $150,500
50% $208,000
50% $364,000
Equipments
50% $24,910
50% $34,600
50% $84,300
Livestock
100% $19,500
50% $39,000
50% $78,000
$194,910
$281,600
$526,000
Total Value
In this case, the interest rate chosen is 7%.
Assets
Years
Land + Buildings
Equipments
20
7
Livestock
5
100
200
400
Interest per Year Interest per Year Interest per Year
$5,210
$827
Total
$6,037
$7,202
$1,148
$12,603
$2,797
$1,258
$2,516
$9,608
$17,916
Principal
Assets
Years
Land + Buildings
Equipments
20
7
Livestock
5
Total
100
200
400
Principal per Year Principal per Year Principal per Year
$1,790
$1,429
$3,219
30
$2,474
$1,985
$4,330
$4,837
$3,375
$6,751
$7,835
$15,917
VI
Cash Flow Sheets
The following sheets show sample cash flows for the three example herd sizes taking into
consideration the explanations provided above and factors provided throughout the paper. All
aspects of the cash flow sheets are critical but it is especially important to see the variation shown
between the feeding regimens outlined on page 22 and utilized in the cash flow sheets listed on
page 32.
We have found that its also useful to look at the goat operation on a per goat and per
hundredweight (cwt) basis as no operation has exactly 100, 200, or 400 goats and no operation
has goats producing exactly 1,700 lbs per goat. Thus by doing it on a per goat and per cwt. basis
we allow the reader to look at comparisons that may more closely compare their operation to the
scenario in this paper.
31
Item
Farm 1
Number of goats
Pounds of Milk Sold
Milk Price
Farm 2
Farm 3
100
156400
$35.08
200
312800
$35.08
400
625600
$35.08
CASH RECEIPTS
Milk Sales
Bonuses
Goat Sales
Kids, bucks, and other Livestock
$ 54,867
$ 6,262
$ 1,600
$ 1,328
$ 109,733
$ 12,523
$ 3,200
$ 2,540
$ 219,466
$ 25,046
$ 6,400
$ 4,980
Total Cash Receipts
$ 64,056
$ 127,996
$ 255,893
$ 2,500
$ 639
$ 2,739
$ 17,496
$ 20,620
$ 22,211
$ 2,434
$ 6,008
$ 2,823
$ 1,717
$ 2,533
$ 6,037
$ 4,500
$ 735
$ 4,420
$ 34,991
$ 41,240
$ 44,422
$ 4,869
$ 6,816
$ 8,100
$ 863
$ 7,752
$ 69,982
$ 82,481
$ 88,845
$ 9,737
$ 8,328
CASH EXPENSES
Bedding
Chemicals
DHIA
Ration 1 (Corn Silage)
Ration 2 (Haylage)
Ration 3 (Hay)
Feeding Kids and replacement
Freight and trucking
Gasoline, fuel and oil
Ration 1
Ration 2 – 3
Insurance (other than health)
Interest
Labor hired, pension and profit sharing
Repairs and maintenance
Taxes
Utilities
Veterinary fees and medicine
Animal Purchased
Supplies & Miscellaneous
$
$
$
$
$
$
3,313
4,516
3,000
1,300
1,000
3,000
$
$
$
$
4,234
2,575
3,286
9,608
$
$
$
$
$
$
4,578
6,240
6,000
2,600
1,750
6,000
$ 5,645
$ 3,433
$ 7,000
$ 17,916
$ 26,000
$ 8,311
$ 10,171
$ 12,000
$ 5,200
$ 3,250
$ 12,000
Total Cash Expenses
Ration 1
$ 59,337
$ 100,627
$ 212,257
Ration 2
$ 61,355
$ 105,217
$ 222,543
Ration 3
$ 62,946
$ 108,399
$ 228,907
Ration 1
$ 4,720
$ 27,370
$ 43,636
Ration 2
$ 2,701
$ 22,779
$ 33,349
Ration 3
$ 1,110
$ 19,597
$ 26,985
Principal
$ 3,219
$ 7,835
$ 15,917
Net For Family Fiving Ration 1
$ 1,500
$ 19,535
$ 27,718
Net For Family Fiving Ration 2
$ (518)
$ 14,945
$ 17,432
Net For Family Fiving Ration 3
$ (2,109)
$ 11,763
$ 11,068
Net Cash Flow
32
Per Goat Basis
Number of goats
Pounds of Milk Sold
Milk Price
Farm 1
Farm 2
Farm 3
100
1564
$ 35.08
200
1564
$ 35.08
400
1564
$ 35.08
CASH RECEIPTS
Milk Sales
Bonuses
Goat Sales
Kids, bucks, and other Livestock
$ 549
$ 63
$ 16
$ 13
$ 549
$ 63
$ 16
$ 13
$ 549
$ 63
$ 16
$ 12
Total Cash Receipts
$ 641
$ 640
$ 640
$ 25
$ 6
$ 27
$ 175
$ 206
$ 222
$ 24
$ 60
$ 23
$ 4
$ 22
$ 175
$ 206
$ 222
$ 24
$ 34
$ 20
$ 2
$ 19
$ 175
$ 206
$ 222
$ 24
$ 21
CASH EXPENSES
Bedding
Chemicals
DHIA
Ration 1 (Corn Silage)
Ration 2 (Haylage)
Ration 3 (Hay)
Feeding Kids and replacement
Freight and trucking
Gasoline, fuel and oil
Ration 1
Ration 2 – 3
Insurance (other than health)
Interest
Labor hired, pension and profit sharing
Repairs and maintenance
Taxes
Utilities
Veterinary fees and medicine
Animal Purchased
Supplies & Miscellaneous
$
$
$
$
28
17
25
60
$
$
$
$
21
13
16
48
$
$
$
$
$
$
33
45
30
13
10
30
$ 23
$ 31
$ 30
$ 13
$ 9
$ 30
$ 14
$ 9
$ 18
$ 45
$ 65
$ 21
$ 25
$ 30
$ 13
$ 8
$ 30
Ration 1
$ 593
$ 503
$ 531
Ration 2
$ 614
$ 526
$ 556
Ration 3
$ 629
$ 542
$ 572
Ration 1
$ 47
$ 137
$ 109
Ration 2
$ 27
$ 114
$ 83
Ration 3
$ 11
$ 98
$ 67
Principal
$ 32
$ 39
$ 40
Net for family living ration 1
$ 15
$ 98
$ 69
Net for family living ration 2
$ (5)
$ 75
$ 44
Net for family living ration 3
$ (21)
$ 59
$ 28
Total Cash Expenses
Net Cash Flow
33
Per CWT Basis
Number of goats
Pounds of Milk Sold
Milk Price
Farm 1
100
Farm 2
200
Farm 4
400
$ 35.08
$ 35.08
$ 35.08
CASH RECEIPTS
Milk Sales
Bonuses
Goat Sales
Kids, bucks, and other Livestock
$ 35.08
$ 4.00
$ 1.02
$ 0.85
$ 35.08
$ 4.00
$ 1.02
$ 0.81
$ 35.08
$ 4.00
$ 1.02
$ 0.80
Total Cash Receipts
$ 40.96
$ 40.92
$ 40.90
CASH EXPENSES
Bedding
Chemicals
DHIA
Ration 1 (Corn Silage)
Ration 2 (Haylage)
Ration 3 (Hay)
Feeding Kids and replacement
Freight and trucking
Gasoline, fuel and oil
Ration 1
Ration 2 – 3
Insurance (other than health)
Interest
Labor hired, pension and profit sharing
Repairs and maintenance
Taxes
Utilities
Veterinary fees and medicine
Animal Purchased
Supplies & Miscellaneous
X
Total Cash Expenses
$ 1.60
$ 0.41
$ 1.75
$ 11.19
$ 13.18
$ 14.20
$ 1.56
$ 3.84
$ 0.00
$ 1.80
$ 1.10
$ 1.62
$ 3.86
$ 0.00
$ 2.12
$ 2.89
$ 1.92
$ 0.83
$ 0.64
$ 1.92
$ 1.44
$ 0.23
$ 1.41
$ 11.19
$ 13.18
$ 14.20
$ 1.56
$ 2.18
$ 0.00
$ 1.35
$ 0.82
$ 1.05
$ 3.07
$ 0.00
$ 1.46
$ 1.99
$ 1.92
$ 0.83
$ 0.56
$ 1.92
$ 1.29
$ 0.14
$ 1.24
$ 11.19
$ 13.18
$ 14.20
$ 1.56
$ 1.33
$ 0.00
$ 0.90
$ 0.55
$ 1.12
$ 2.86
$ 4.16
$ 1.33
$ 1.63
$ 1.92
$ 0.83
$ 0.52
$ 1.92
Ration 1
$ 37.94
$ 32.17
$ 33.93
Ration 2
$ 39.23
$ 33.64
$ 35.57
Ration 3
$ 40.25
$ 34.65
$ 36.59
Ration 1
$ 3.02
$ 8.75
$ 6.97
Ration 2
$ 1.73
$ 7.28
$ 5.33
Ration 3
$ 0.71
$ 6.27
$ 4.31
$ 2.06
$ 2.50
$ 2.54
Net Cash Flow
Principal
Net for family living ration 1
$ 0.96
$ 6.69
$ 4.92
Net for family living ration 2
( 0.33 )
$ 5.22
$ 3.27
Net for family living ration 3
( 1.35 )
$ 4.21
$ 2.26
34
VII Discussion
People interested in milking goats for sale to Vermont Butter and Cheese Company or doing
something else, need to understand the crucial aspect of building a business plan and have a
financial approach before proceeding with the operation.
This document has been written as a guideline highlighting some areas that someone interested in
goat has to think about. Our choice of building different operation sizes is to illustrate and
demonstrate the possibilities of “economies of scale”. This does not mean that this will in fact
include all the income and costs associated with each size nor are the authors pretentious enough
to say that one size is better than another nor is goat farming always profitable or not. Moreover,
this document does not say what is going to happen in your particular case. Every case is
different and a business plan is needed to provide guidance, find Strengths, Weaknesses,
Opportunities, Threats, (SWOT) to your business and to provide you with a road map to success.
The assumptions made in this study are numerous and theoretically bring some errors. However,
the assumptions have been made from published studies from France and U.S. as well as
collected data from the sample farms. Unfortunately, there was a lack of statistically significant
data from the field that explains the use of studies to expand on the data from the field. The
absence of records on Vermont dairy goat farms is important to realize and thus in many cases we
did not have actual data to back up the published data from France and U.S.
There are unique financial data taken into consideration with this survey on Vermont Goat farms
which are different or similar to other studies. For instance, goats in France are fed Alfalfa
pellets, which is not done here, and Current Use Taxation is unique to Vermont. In addition, there
are many other areas that are different. However, there are some areas of similarities including
that: goats are productive (92%), 10% loss on kids, a 1.7 kidding rate per goat and a 1,700 lbs
milk production per goat (which is reachable).
The milk fluid income is based on the milk price from Vermont Butter and Cheese Company and
shows that milk income represents 95% of the total farm income. By comparison, to the five
farms, the milk receipts in this study are higher. It does not inevitably mean that the milk income
is higher, it can be the animal sale income that would be underestimated or other sources of
income are not utilized, for example: government payments for conservation practices.
All the commercial dairy farms presented here, have the same level of production with an
average payprice of $ 35.08 per hundredweight (cwt) and the same amount of total income per
cwt at $ 40.79.
Consequently, the biggest differences appear to be on the expense side and this study shows some
economies of scale in the following costs: bedding, fuel, freight and trucking and chemicals. Not
all dairy goat farm sizes have positive cash flows. In fact, the 100 dairy goat operation shows
negative cash flow with two regimens while this with corn silage give a positive one’s. A 100
goat operation, in this study, shows a loss from $ 518 to $ 2,109 and at the same a profitability of
$1,500 which is not sufficient to provide family living.
The two other farm sizes appear more viable. Farmers may have enough net cash flow to pay
their own wages either with 200 or 400 goats. At the maximum in the 200 goat case, the amount
available for reinvestment, principal payments and owners draw (or salary) is $ 19,535 and for
400 goats, it is $ 27,718.
35
In comparing these theoretical farms by goat or per hundredweight basis, the 200 goat operation
seems the most profitable one with $ 4.21 to $ 6.69 per hundredweight income translating $
59 to $ 98 income per goat basis.
Generally, the 200 and 400 goat operations are more profitable than the 100 dairy goat operation.
Incomes can be increased by many different ways:
1.
2.
3.
4.
5.
6.
Improving the milk quality and quantity production levels
Raising breeding stocks
Selling semen surplus animals to others
Other sources of incomes (governmental payment, dividends…)
Synergistic effects can be had by combining 1-4 above
Diversification of the operation to fully utilize resources
Expenses can be decreased in many different ways as well:
Expenses can be improved by utilizing advantages surrounding your farm such as near a feed
company, ease to find good quality and price for feed (hay, haylage…), possibilities to produce
your own feed which cost less than to buy it, be close to Vermont Butter and Cheese Company
(freight and trucking), and other expenses related to the assets. Expenses can also vary according
to feed availability, quality forage land base, and management styles.
Here, assets include buildings, milking equipments, livestock and one tractor of varying size with
a bucket loader. The assets may be more or less different depending on what you own.
36
VIII Conclusion
This study shows the farm possibilities to produce and ship milk to Vermont Butter and Cheese
Company in Websterville, Vermont. As this study shows a 100 goat operation is not profitable
enough to provide a farm living income while bigger operations seem adequate to provide it.
However, a small herd can be an interesting hobby to have another income and perhaps grow into
a full time dairy goat operation.
Nevertheless, a goat business, however as small as it is, must be assessed thanks to a business
plan and a financial approach taking into consideration technical numbers, management styles,
goals, and long-term vision of the owners.
37
References
Books:
BOSWORTH. S, 2006. Corn Silage Forage Quality in Vermont for 2005.
http://pss.uvm.edu/vtcrops/articles/ForTestLab/HaylageSum1105.pdf
BOSWORTH. S, 2006. Haycrop Silage Quality in Vermont 2005.
http://pss.uvm.edu/vtcrops/articles/ForTestLab/CornSilageQuality05.pdf, 2005 Corn Silage
COFFEY L., HALE M., WILLIAMS P., 2004. Dairy goats: Sustainable production. ATTRANational Sustainable Agriculture Information Service. p32. http://www.attra.org/attrapub/PDF/dairygoats.pdf
COFFEY L., HALE M., WILLIAMS P., 2004. Dairy goats: Sustainable production overview.
ATTRA-National Sustainable Agriculture Information Service. p24. http://www.attra.org/attrapub/PDF/goatoverview.pdf
COFFEY L., REYNOLDS J., HALE M., 2004. Small ruminant sustainability checksheet.
ATTRA-National Sustainable Agriculture Information Service. p44. http://www.attra.org/attrapub/PDF/ruminantcheck.pdf
CORCY J-C., 1991. La Chèvre. Paris : La maison rustique, 255 p.
DAWSON. L, 2006, Basic Goat Husbandry, 6 p.
http://www2.luresext.edu/goats/library/field/dawson06.pdf
DOANE. 1985. Farm Management Guide. “Farm Building Economics.”St. Louis, MO:
EIDMAN. V , HALLAM. A , MOREHART. M , KLONSKY. K , 2000. Commodity Costs and
Returns Estimation Handbook. http://www.economics.nrcs.usda.gov/care/Aaea/
FARM FINANCIAL STANDARDS COUNCIL. 1997. Financial Guidelines for Agricultural
Producers. 90p.
GIRAUD D., KLONSKY K M., LIVINGSTON P., 2005. Sample costs for a 500 dairy goat
operation. University of California Cooperative Extension. p14.
http://coststudies.ucdavis.edu/uploads/new_cost_returns/dairygoatsnc05.pdf
GUINAMARD. C, CARAMELLE-HOLTZ. E, BOSSIS. N, ANICAP, 2005. Pour une
installation réussie en élevage caprin. Institut de l’élevage. P 124. ISBN n° 2-84148-132-8
INSTITUT DE L’ELEVAGE, February 2001. S’installer en élevage caprin. Repères pour une
réussite. Institut de l’Elevage. P62.
38
KNAPP. J, 2003. Formulating and Evaluating Rations based on Metabilzable Energy and
Metabolizable Protein Requirements for Lactating Goats. SARE Project: Implementing Goat
Nutrition Programs for Improvement of Farm Sustainability. 6 p.
Nutrient Requirement Calculators. http://www2.luresext.edu/goats/research/nutr_calc.htm
REVEAU. A, FOUILLAND. C, LETOURNEAU. P, GUILLON. M.-P, BOSSIS. N,
LARGEAU. C, CHERBONNIER. J, JENOT.F , LAURET. A, POUPIN. B. 1998. Les
Batiments d’Elevage Caprin. L’éleveur de Chèvres. N°5.
http://www.itplc.asso.fr/pdf/ELEVEUR_5-1.pdf
VERMONT DAIRY GOAT PROMOTION BOARD and THE VERMONT
DEPARTMENT OF AGRICULTURE, FOOD and MARKETS., 1995. Vermont Dairy Goat
Manual. 18p.
ZEISS. C, 2000. Vaccination in Goat Herds. 3p.
Contacts :
AMERICAN DAIRY GOAT ASSOCIATION. [email protected].
SMITH. J. A&B Barns. [email protected]. http://www.abbarns.com
PORTER. J. Dairy Specialist, University of New Hampshire Extension, Retired.
[email protected].
DELANEY. C. Small ruminant Dairy Specialist. UVM University extension.
[email protected].
BOSSIS. N. Regional Project Manager. Institut de l’Elevage. [email protected].
VIENS. .P. Nutrionist and Consulting. Quebec, Canada.
Dr. MURPHY K. A.; Derby, VT.
Dr. ROSSITER-BURHANS C, Newport, VT.
Dr. MORASKA A. Charlotte, VT.
Co-operative Insurance Company of Middlebury. 99 Washington. St Barre, VT 05641.
Dairy Herd Improvement Association:
NAULT. M. VT DHIA General Manager. DHIA. [email protected].
SCRUTON. D. Dairy Systems Coordinator, Milk Quality Enhancement, Dairy Management,
Small Ruminent Dairying, Stray Voltage, Anaerobic Digesters. Vermont Agency of Agriculture.
[email protected].
39
Appendix Tables and Explanations
Table of Contents
I
Milk Income ______________________________________________________________1
1.
Milk Production Calculation ______________________________________________1
2.
Over Quota Protein Level Calculation ______________________________________2
3.
Milk Payment___________________________________________________________3
4.
Bonus Payment _________________________________________________________3
II
Milk Income Summary______________________________________________________4
1.
100 Dairy Goat Operation ________________________________________________4
2.
200 Dairy Goat Operation ________________________________________________5
3.
400 Dairy Goat Operation ________________________________________________6
III
Milk Composition ________________________________________________________7
1.
Test Results on Protein Level (%) __________________________________________7
2.
Test Results on Butterfat Level (%) ________________________________________8
IV
V
Milk MailBox Price ______________________________________________________9
DHIA Cost ______________________________________________________________10
VI
Animals Sales __________________________________________________________10
VII
Chemical Cost__________________________________________________________11
VIII
Vaccination Program ____________________________________________________12
IX
Kids and Yearling Feed Program __________________________________________13
1.
A.
B.
100 Dairy Goat Farm Operation __________________________________________13
Feed Quantity Used per Year ____________________________________________13
Yearly Cost for Raising Kids and Yearling _________________________________13
2.
200 Dairy Goat Farm Operation __________________________________________13
A. Feed Quantity Used per Year ____________________________________________13
B. Yearly Cost for Raising Kids and Yearlings_________________________________14
3.
400 Dairy Goat FarmOoperation__________________________________________14
A. Feed Quantity Used per Year ____________________________________________14
B. Yearly Cost for Raising Kids and Yearlings_________________________________14
X
Fuel, Diesel and Lube _____________________________________________________15
XI
Buildings Budget _______________________________________________________16
1.
Goats Requirements ____________________________________________________16
2.
Buildings Size and Budget _______________________________________________18
2
I
Milk Income
1. Milk Production Calculation
It is assumed that the 92% of the goats produce in average of 1,700 lbs milk per year. With this
starting assumption, we calculated the yearly milk production expected (Total). For example: a
100 goat operation normally has 92 goats in production at any one time. For a total yearly
production of 170,000 lbs. However, one cannot say that the production will be 14167 lbs per
month to get monthly production (170,000/12). In fact the monthly production will vary
tremendously due to the seasonality effect of breeding and kidding. To make this clearer, we have
outlined an example of the goat milk produced on a “real dairy goat farm”. The numbers below
represent one producer who shipped milk year round from the study. You will note a large
variation from an average monthly amount produced throughout the year.
The total milk production for the year was 107,028, however 9,102 lbs. were shipped in January
as opposed the calculated amount of 8,919 lbs (107,028/12). This variance becomes even more
evident during the months of February, March, and December as outlined below.
Month
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Total
Milk Production
(lbs)
9102
5160
6203
8811
11209
10913
10100
9625
10367
9721
10402
5415
107028
% of
production
8.50%
4.82%
5.80%
8.23%
10.47%
10.20%
9.44%
8.99%
9.69%
9.08%
9.72%
5.06%
100%
We also used averages for protein and butterfat levels based on production levels from each farm
in the study. Vermont Butter and Cheese Company pays the dairy goat farms by protein but does
vary payments based on milk quality. We did use their payment schedule and Vermont Butter
and Cheese Company does test the milk for protein, butterfat, somatic cell counts (SCC),
laboratory pasteurized count and PI counts from each shipment.
1
2. Over Quota Protein Level Calculation
As it is mentioned in the VBCC Agreement, “the Quota Milk is considered as the total of all milk
pickups made between 1. October 1st through January 31st or 2. November 1st through February
28th or 3. November 1st through March 31st whichever is the highest number. Milk purchased
during this period is rated at $11.50 per pound of protein up to the limit set by the Quota Period,
and $9.00 per pound of protein beyond the Quota limit.” Consequently it would be advantageous
to the producer to increase the production of milk during those prices setting months and to
match production to nearly meet quota during non-price setting months.
Note: the price setting months have a different number of weeks in the period 17 – 15 - 22 weeks
thus use the appropriate when calculating the quota lbs per month.
Month
Total Protein
Shipped
(lbs)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
380.2
295.9
385.9
460.7
534.4
548.8
474.6
495.8
414.8
484.7
551.1
307.7
Quota
Protein
(lbs)
430.9
430.9
430.9
430.9
430.9
430.9
430.9
430.9
In the above scenario, we assumed that the previous year (2005) milk production was exactly
same as the year 2006. Although that never happens it does provide a good example.
Consequently, this farm shipped from October 1st 2005 to January 31st 2006, 1,723.70 lbs of
protein for the 4 continuous months for a monthly quota of 430.93 lbs of protein.
(484.7+551.1+307.7+380.2 = 1,723.7/4= 430.9
This number is higher than the monthly quota founded from 1st November through 31st March
which is 386.16 lbs of protein (551.1+307.7+380.2+295.9+385.9) =1930.80/5 = 386.2) and the
calculated number for November through February which is (551.1+307.7+380.2+295.9)
=1930.80/4 = 482.7)
2
3. Milk Payment
After this calculation, the quotas applied from 1st February to 31st September (or 1 April – 31 Oct.
whichever is higher). The protein produced until the 432.9 lbs/month is reached would be paid at
$11.50 per lbs of protein and beyond this limit of 432.9 lbs of protein /month is paid $9.00/lb of
protein.
Example:
Jan
Feb
Mar
Apr
8.05
5.60
6.26
8.10
Milk
Total Protein Quota protein
production % Protein % Butterfat
shipped
(lbs)
(lbs)
12,587
3.58
4.29
450.2
8,763
3.39
4.18
297.4
432.9
9,792
3.74
3.83
366.5
432.9
12,664
3.46
3.53
438.5
432.9
Incomes Bonuses
$ 5,177.7
$ 3,419.7
$ 4,214.4
$ 4,928.0
$ 659.4
$ 302.3
$ 337.8
$ 436.9
Price per
Cwt
$ 46.37
$ 42.47
$ 46.49
$ 42.36
For the month of January, 450.2 lbs of protein have been shipped, given the milk production is in
the quota period, the milk income is $11.5 X 450.2 = $5,177.70.
For the month of April, non-quota period, 438.5 lbs of protein have been produced, with an over
quota level of 5.6 lbs, we come up with (432.9 lbs X $11.5/lb) + (5.6 lbs X $9.00) = $ 4,928.
4. Bonus Payment
The bonus rate is $3.45 per cwt of milk; therefore for 100 goats which produce 156,400, the farm
earns a total of $6,162.6. Moreover, a winter premium is paid for the quota period (October 1st
through January 31st) at $0.50 per pound of protein.
3
II
Milk Income Summary
1. 100 Dairy Goat Operation
%
Milk Production (lbs)
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.05
5.60
6.26
8.10
10.07
10.72
10.07
9.14
8.43
7.99
10.12
5.45
12,587
8,763
9,792
12,664
15,755
16,761
15,742
14,295
13,179
12,498
15,835
8,527
Total
100.00
156,400
Number of Goats
Goats Productive (92%)
Average Milk Production (lbs/day)*
Total Production per Goat (lbs)
Total Production (lbs)
* On 300 days lactation basis
% Protein
100
92
5.67
1,700
156,400
% ButterFat Total Protein Shipped
3.58
3.39
3.74
3.46
3.20
3.09
2.98
2.89
2.93
3.68
3.37
3.37
4.29
4.18
3.83
3.53
3.70
3.54
3.42
3.35
3.53
3.47
3.41
3.57
Quota Protein
(lbs)
450.2
297.4
366.5
438.5
503.5
518.5
468.6
413.0
385.7
459.8
534.0
287.5
432.9
432.9
432.9
432.9
432.9
432.9
432.9
432.9
$ 5,177.7
$ 3,419.7
$ 4,214.4
$ 4,928.0
$ 4,342.4
$ 4,207.6
$ 4,656.6
$ 4,749.0
$ 4,435.9
$ 5,288.0
$ 6,140.7
$ 3,306.6
$ 659.4
$ 302.3
$ 337.8
$ 436.9
$ 543.6
$ 578.3
$ 543.1
$ 493.2
$ 454.7
$ 661.1
$ 813.3
$ 437.9
Price per
Cwt
$ 46.37
$ 42.47
$ 46.49
$ 42.36
$ 31.01
$ 28.55
$ 33.03
$ 36.67
$ 37.11
$ 47.60
$ 43.91
$ 43.91
$ 54,866.6
$ 6,261.6
$ 39.96
Income
Bonuses
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.05
5.60
6.26
8.10
10.07
10.72
10.07
9.14
8.43
7.99
10.12
5.45
12,587
8,763
9,792
12,664
15,755
16,761
15,742
14,295
13,179
12,498
15,835
8,527
$ 450
$ 400
$ 400
$ 450
$ 450
$ 450
$ 450
$ 450
$ 450
$ 400
$ 450
$ 400
$ 62.94
$ 43.82
$ 48.96
$ 63.32
$ 78.78
$ 83.81
$ 78.71
$ 71.47
$ 65.89
$ 62.49
$ 79.18
$ 42.63
$ 4.075
$ 5.064
$ 4.585
$ 4.053
$ 3.356
$ 3.185
$ 3.359
$ 3.648
$ 3.915
$ 3.700
$ 3.342
$ 5.191
Promotion
Fees
$ 13
$9
$ 10
$ 13
$ 16
$ 17
$ 16
$ 14
$ 13
$ 12
$ 16
$9
Total
100.00
156,400
$ 5200
$ 782.00
$ 3.956
$ 156
%
Milk Production (lbs) Stop Charge Charge per cwt Hauling Cost/Cwt
4
2. 200 Dairy Goat Operation
%
Milk Production (lbs)
% Protein
% ButterFat Total Protein Shipped Quota Protein (lbs)
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.05
5.60
6.26
8.10
10.07
10.72
10.07
9.14
8.43
7.99
10.12
5.45
25,175
17,527
19,584
25,329
31,511
33,522
31,484
28,590
26,357
24,997
31,670
17,054
3.58
3.39
3.74
3.46
3.20
3.09
2.98
2.89
2.93
3.68
3.37
3.37
4.29
4.18
3.83
3.53
3.70
3.54
3.42
3.35
3.53
3.47
3.41
3.57
Total
100.00
312,800
3.31
3.65
Number of Goats
Goats Productive (92%)
Average Milk Production (lbs/day)*
Total Production per goat (lbs)
Total Production (lbs)
* On 300 days lactation basis
200
184
5.67
1,700
312,800
900.5
594.7
732.9
877.0
1,007.1
1,037.0
937.3
825.9
771.5
919.7
1,067.9
575.1
865.8
865.8
865.8
865.8
865.8
865.8
865.8
865.8
$ 10,355.4
$ 6,839.4
$ 8,428.9
$ 9,855.9
$ 8,684.7
$ 8,415.2
$ 9,313.2
$ 9,498.0
$ 8,871.8
$ 10,576.0
$ 12,281.4
$ 6,613.2
$ 1,318.8
$ 604.7
$ 675.7
$ 873.8
$ 1,087.1
$ 1,156.5
$ 1,086.2
$ 986.3
$ 909.3
$ 1,322.2
$ 1,626.6
$ 875.9
Price per
Cwt
$ 46.37
$ 42.47
$ 46.49
$ 42.36
$ 31.01
$ 28.55
$ 33.03
$ 36.67
$ 37.11
$ 47.60
$ 43.91
$ 43.91
$ 109,733.1
$ 12,523.2
$ 39.96
Income
Bonuses
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.05
5.60
6.26
8.10
10.07
10.72
10.07
9.14
8.43
7.99
10.12
5.45
25,175
17,527
19,584
25,329
31,511
33,522
31,484
28,590
26,357
24,997
31,670
17,054
$ 450
$ 400
$ 400
$ 450
$ 450
$ 450
$ 450
$ 450
$ 450
$ 400
$ 450
$ 400
$ 125.87
$ 87.63
$ 97.92
$ 126.64
$ 157.55
$ 167.61
$ 157.42
$ 142.95
$ 131.79
$ 124.98
$ 158.35
$ 85.27
$ 2.288
$ 2.782
$ 2.542
$ 2.277
$ 1.928
$ 1.842
$ 1.929
$ 2.074
$ 2.207
$ 2.100
$ 1.921
$ 2.846
Promotion
Fees
$ 25
$ 18
$ 20
$ 25
$ 32
$ 34
$ 31
$ 29
$ 26
$ 25
$ 32
$ 17
Total
100.00
312,800
$ 5,200
$ 1,564.00
$ 2.228
$ 313
%
Milk Production (lbs) Stop Charge Charge per cwt Hauling cost/cwt
5
3. 400 Dairy Goat Operation
%
Milk Production (lbs)
% Protein
% ButterFat Total Protein Shipped Quota Protein (lbs)
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.05
5.60
6.26
8.10
10.07
10.72
10.07
9.14
8.43
7.99
10.12
5.45
50,350
35,054
39,169
50,657
63,022
67,044
62,968
57,179
52,715
49,994
63,341
34,108
3.58
3.39
3.74
3.46
3.20
3.09
2.98
2.89
2.93
3.68
3.37
3.37
4.29
4.18
3.83
3.53
3.70
3.54
3.42
3.35
3.53
3.47
3.41
3.57
Total
100.00
625,600
3.31
3.65
1,800.9
1,189.5
1,465.9
1,753.9
2,014.2
2,074.1
1,874.5
1,651.8
1,542.9
1,839.3
2,135.9
1,150.1
* On 300 days lactation basis
400
368
5.67
1,700
625,600
Bonuses
Price per cwt
$ 20,710.8
$ 13,678.8
$ 16,857.8
$ 19,711.8
$ 17,369.5
$ 16,830.4
$ 18,626.3
$ 18,996.0
$ 17,743.6
$ 21,152.0
$ 24,562.7
$ 13,226.5
$ 2,637.5
$ 1,209.4
$ 1,351.3
$ 1,747.7
$ 2,174.3
$ 2,313.0
$ 2,172.4
$ 1,972.7
$ 1,818.7
$ 2,644.4
$ 3,253.2
$ 1,751.8
$ 46.37
$ 42.47
$ 46.49
$ 42.36
$ 31.01
$ 28.55
$ 33.03
$ 36.67
$ 37.11
$ 47.60
$ 43.91
$ 43.91
$ 219,466.3
$ 25,046.3
$ 39.96
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.05
5.60
6.26
8.10
10.07
10.72
10.07
9.14
8.43
7.99
10.12
5.45
50,350
35,054
39,169
50,657
63,022
67,044
62,968
57,179
52,715
49,994
63,341
34,108
$ 450
$ 400
$ 400
$ 450
$ 450
$ 450
$ 450
$ 450
$ 450
$ 400
$ 450
$ 400
$ 251.75
$ 175.27
$ 195.84
$ 253.29
$ 315.11
$ 335.22
$ 314.84
$ 285.90
$ 263.57
$ 249.97
$ 316.70
$ 170.54
$ 1.394
$ 1.641
$ 1.521
$ 1.388
$ 1.214
$ 1.171
$ 1.215
$ 1.287
$ 1.354
$ 1.300
$ 1.210
$ 1.673
Promotion
Fees
$ 50
$ 35
$ 39
$ 51
$ 63
$ 67
$ 63
$ 57
$ 53
$ 50
$ 63
$ 34
Total
100.00
625,600
$ 5,200
$ 3,128.00
$ 1.364
$ 626
%
Number of Goats
Goats Productive (92%)
Average Milk Production (lbs/day)*
Total Production per Goat (lbs)
Total Production (lbs)
1,731.6
1,731.6
1,731.6
1,731.6
1,731.6
1,731.6
1,731.6
1,731.6
Income
Milk Production (lbs) Stop Charge Charge per cwt Hauling cost/cwt
6
III
Milk Composition
1. Test Results on Protein Level (%)
Below are listed the protein test results of milk shipped to VBCC in 2005. The protein rate is not true protein, but crude protein. Farms are
randomized by number to protect individual farms. Vermont Butter and Cheese Company pays the producers by the pounds of protein produced.
Obviously, the milk production is also a crucial factor since total lbs. of protein produced is related to total milk produced.
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Average
Jan
3.31
3.35
3.29
3.51
2.82
3.43
3.39
3.42
3.41
3.53
3.84
4.25
3.40
3.35
3.44
3.21
3.92
3.26
3.62
3.89
3.58
Feb
3.59
3.27
3.04
3.74
3.53
2.63
3.37
3.37
3.12
3.33
3.37
3.34
Mar
3.59
3.95
3.45
3.53
3.98
3.04
4.37
4.01
3.41
3.68
4.07
3.48
4.37
3.45
2.77
3.37
3.37
3.41
3.42
3.37
3.32
3.37
3.39
May
3.03
3.13
2.87
3.01
3.28
3.47
4.37
3.03
3.12
3.09
3.09
3.11
3.03
3.20
3.17
3.19
2.98
3.64
3.11
3.19
3.25
3.11
Jun
2.87
2.94
2.85
2.94
3.22
3.14
4.37
2.87
3.02
3.22
3.03
3.03
Jul
2.82
2.68
2.71
2.91
3.11
3.03
4.37
2.82
2.94
2.84
2.92
2.97
4.03
3.83
2.80
3.66
4.00
3.75
3.36
3.74
3.68
Apr
2.99
3.69
3.25
3.25
3.78
3.36
4.37
3.58
3.36
3.44
3.35
3.43
3.57
3.67
2.88
3.04
3.94
3.40
3.67
3.53
3.42
3.12
2.96
2.87
2.95
2.85
3.60
3.03
2.96
3.20
3.09
2.81
2.78
2.83
2.81
3.51
2.99
2.86
3.12
2.94
3.47
3.47
3.68
2.96
2.83
3.74
3.46
3.20
3.09
2.98
7
Aug
2.99
2.72
2.79
2.98
3.10
Sep
2.92
2.74
2.73
2.96
3.11
Oct
2.92
4.01
3.46
Nov
3.29
3.39
2.91
3.37
3.38
3.51
3.08
3.28
Dec
3.29
3.39
2.91
3.37
3.38
3.51
3.08
3.28
2.68
2.89
2.95
2.80
2.97
3.10
2.70
2.82
3.01
2.96
3.08
3.23
4.23
2.97
4.37
3.83
3.77
2.39
4.56
3.00
3.50
3.91
3.50
3.91
2.79
2.83
2.99
2.81
3.66
3.00
2.89
3.13
2.82
2.79
2.86
2.93
2.82
2.93
3.77
3.02
3.00
3.33
2.87
2.99
4.32
4.00
3.57
4.18
3.23
4.65
3.84
4.64
4.35
3.82
3.73
3.47
2.93
3.69
3.73
3.47
2.93
3.69
3.79
3.39
3.72
3.57
3.47
3.79
3.39
3.72
3.57
3.47
2.81
2.89
2.93
2.93
2.93
3.68
3.69
3.37
3.83
3.37
Average
3.13
3.27
3.02
3.21
3.47
3.15
3.71
3.26
3.21
3.18
3.48
3.25
3.61
3.49
3.25
3.02
3.34
3.61
3.45
3.29
3.54
3.31
3.32
3.28
3.24
3.31
2. Test Results on Butterfat Level (%)
Below are the butterfat results from producers shipping to VBCC in 2005. Even though Vermont Butter and Cheese Company does not pay by the
butterfat rate it can be interesting to know its evolution which can help to figure out a problem.
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Average
Jan
3.69
4.18
4.22
4.38
3.57
4.43
4.35
4.65
4.19
4.38
4.77
4.38
4.38
3.93
4.75
3.18
4.25
5.13
4.27
Feb
4.04
3.84
3.74
5.20
4.71
2.98
4.19
4.34
3.84
4.10
4.19
3.97
Mar
4.04
3.74
3.50
3.63
4.01
2.99
5.44
4.01
3.48
3.75
4.23
3.39
5.44
4.41
3.25
4.19
4.19
4.59
4.29
4.19
4.15
4.19
4.18
May
3.53
3.88
3.20
3.63
4.24
3.45
5.44
3.83
3.59
3.55
3.52
3.56
3.07
3.50
3.66
3.59
3.63
4.27
3.58
4.06
3.78
3.60
Jun
3.31
3.41
3.10
3.36
4.16
3.63
5.44
3.71
3.53
3.33
3.55
3.27
Jul
3.06
3.18
2.95
3.37
3.92
3.48
5.44
3.55
3.35
3.67
3.19
3.25
4.26
3.88
2.59
3.64
4.17
3.80
4.35
3.93
3.78
Apr
3.32
3.75
3.27
3.41
3.87
3.80
5.44
3.65
3.38
3.35
3.36
3.47
3.64
3.85
3.45
2.87
3.98
3.46
3.69
3.67
3.45
1.51
3.27
3.33
2.90
3.28
4.07
3.37
3.71
3.58
3.59
3.18
3.00
2.86
3.27
4.08
3.38
3.37
3.44
3.54
3.60
3.60
2.98
3.05
2.81
3.83
3.53
3.70
3.54
3.42
8
Aug
3.04
3.03
3.22
3.46
3.85
Sep
3.14
3.11
3.29
3.75
3.96
Oct
3.14
3.39
2.99
3.49
3.27
3.42
3.50
3.24
3.26
3.56
3.37
3.58
3.79
3.74
3.60
3.31
3.57
5.44
3.23
4.41
2.02
3.82
3.52
3.20
3.18
3.09
3.40
4.06
3.42
3.24
3.54
3.46
2.94
3.50
3.38
3.40
3.34
4.41
3.55
3.52
3.81
3.85
3.12
3.63
3.36
3.11
3.61
3.60
3.80
3.25
3.73
3.45
3.30
3.35
2.85
3.53
2.85
3.48
Nov
3.14
3.31
3.51
4.19
4.41
3.80
3.63
3.11
Dec
3.14
3.31
3.51
4.19
4.41
3.80
3.63
3.11
3.39
2.02
3.39
2.02
3.73
3.82
2.99
3.61
3.73
3.82
2.99
3.45
3.61
3.30
3.23
3.36
3.45
3.61
3.30
3.23
3.77
2.85
3.42
4.81
3.54
Average
3.38
3.51
3.37
3.82
4.10
3.51
4.63
3.63
3.72
3.50
3.44
3.48
3.35
3.84
3.64
3.17
3.62
4.11
3.60
3.74
3.76
3.40
3.45
3.21
3.34
3.65
IV
Milk MailBox Price
Lbs
$
$
Herd size
100
200
400
156,400
312,800
625,600
$ 54,866.6 $ 109,733.1 $ 219,466.3
$ 6,261.6 $ 12,523.2 $ 25,046.3
Total Incomes
$
$/Head
$/cwt
$ 61,128.2 $ 122,256.3 $ 244,512.6
$ 611.3
$ 611.3
$ 611.3
$ 39.1
$ 39.1
$ 39.1
Hauling
Unit
Milk incomes
Milk production
Incomes
Bonus
Unit
Herd size
100
200
$ 5,200
$ 5,200
400
$ 5,200
Stop Charge
$
Charge per cwt
$
$ 782
$ 1,564
$ 3,128
Milk promotion fee
$
$ 156
$ 313
$ 469
$ 6,138
$ 61.38
$ 3.92
$ 7,077
$ 35.38
$ 2.26
$ 8,797
$ 21.99
$ 1.41
Total Hauling cost
$
$/Head
$/cwt
Milk Box
Unit
Milk Production
Incomes (Sales + Bonus)
Hauling
Lbs
$
$
Herd size
100
200
400
156,400
312,800
625,600
$ 61,128.2 $ 122,256.3 $ 244,512.6
$ 6,138
$ 7,077
$ 8,797
$
$/Head
$/cwt
$ 54,989.8 $ 115,179.5 $2 35,715.4
$ 549.9
$ 575.9
$ 589.3
$ 35.2
$ 36.8
$ 37.7
Total
Those numbers show incomes from $35.2 to $37.7 per hundredweight. Those numbers have been
forecasted and by comparison, to the data on the field, we found that milk mailbox price is from
$27 to $32 (2005 milk price). The milk price in 2005 was not the same as used in this study. In
this study the milk price used is $11.50 per pound of protein and $9.00 while in 2005, it was
$10.50 and $8.00.
In order to compare the milk mailbox price excluding the milk quality, five dairy goat farms
show us that milk mailbox price goes from $25 to $29 per cwt while in our calculation milk
mailbox price income goes from $31 to $33.7/cwt. This marked difference is due to the level of
milk production and the milk quality. Hauling goat milk is costly, given a stop charge fee, thus an
economy of scale can be expected. In fact, a higher milk production allows having a higher milk
mailbox price income
9
V
DHIA Cost
Monthly Costs
Herd size
Meters
100
8
Total Standard cost (MW)
MW + SCC
MW/BF/Prot
MW/BF/Prot/SCC
MW/BF/Prot/SCC/MUN
$
$
$
$
$
200
16
188.24
208.24
213.24
228.24
253.24
$
$
$
$
$
288.32
328.32
338.32
368.32
418.32
400
24
$
$
$
$
$
486.00
566.00
586.00
646.00
746.00
These costs include Technician fees and overhead costs, CMS fees (Benefit for DHIA), Meter
fees, State fees (membership), DRMS fees and the option (tests performed).
VI
Kids (1week old)
Cull animals (does)
Bucks
Income (400 hs*)
Income (200 hs*)
Income (100 hs*)
$4
$ 48
$ 80
$5
$ 52
$ 85
$ 7,680
$ 3,880
$ 1,904
$ 8,605
$ 4,345
$ 2,135
Animals Sales
$6
$ 56
$ 90
Market Price
$7
$8
$ 60
$ 64
$ 95
$ 100
$9
$ 68
$ 105
$ 10
$ 72
$ 110
$ 11
$ 76
$ 115
$ 12
$ 80
$ 120
$ 9,530 $ 10,455 $ 11,380 $ 12,305 $ 13,230 $ 14,155 $ 15,080
$ 4,810 $ 5,275 $ 5,740 $ 6,205 $ 6,670 $ 7,135 $ 7,600
$ 2,366 $ 2,597 $ 2,828 $ 3,059 $ 3,290 $ 3,521 $ 3,752
*hs = Heads
The calculation for raising breeding stock has not been assessed. It would seem important to raise
breeding stock not only for the farmer who raises them to increase his income but also to provide
goats to people who is interested in buying them. The sale of breeding stocks may be an excellent
source of additional income since finding quality replacement goats are an issue.
10
VII Chemical Cost
These costs have been calculated for the chemical products used to clean and wash the milking
machines, pipelines and other milkhouse & parlor equipment. As we mentioned earlier the
milking parlor size are not always the same, and we assume that 8 stalls, 12 stalls and 24 stalls
are used for 100, 200 and 400 goats respectively. (double 4, 6 and 12 parlor). Consequently, the
quantity of water used to wash and clean the equipment are not the same.
VIII Vaccination Program
Kids
Disease
Enterotoxemia
(overeating disease)
Tetanus
Enterotoxemia
(overeating disease)
Tetanus
Rabies
Age
Doses
2-3 months old
(weaning period)
1
$ 0.50
1
$ 0.50
1
$ 2.00
2
$ 2.00
1
$ 0.50
3
$ 4.50
2
1
$ 2.00
$ 2.00
$ 10.00
4-6 weeks later
After weaning
Foot rot
Goat
Enterotoxemia
(overeating disease)
Tetanus
Deworming
Foot rot
Rabies
Mastitis
12
Price per animal
IX
Kids and Yearling Feed Program
1. 100 Dairy Goat Farm Operation
A. Feed Quantity Used per Year
Animal
Feed
Kids until 1 week
Quantity per day (Oz)
Milk Replacer
Hay
Concentrate
40.00
Replacement kids
Quantity
Quantity per
per Year Quantity per day
Year (lbs)
(lbs)
87
246
14,393
5,192
Year
Quantity (US
Ton)
0.37
7.20
2.60
B. Yearly Cost for Raising Kids and Yearling
100
Feed
Milk replacer
Hay
Concentrate
Price/Ton
$3,170.00
$150.00
$74.43
Total cost
Qty (Ton)
0.37
7.20
2.60
Expenses
(USD)
$1,161.67
$1,079.48
$193.22
$2,434.37
2. 200 Dairy Goat Farm Operation
A. Feed Quantity Used per Year
Animal
Feed
Milk Replacer
Hay
Concentrate
Kids until 1 week
Quantity per day (Oz)
40.00
Replacement kids
Quantity
Quantity per
per Year Quantity per day
Year (lbs)
(lbs)
174
492
28,786
10,384
13
Year
Quantity (ton)
0.73
14.39
5.19
B. Yearly Cost for Raising Kids and Yearlings
200
Feed
Milk replacer
Hay
Concentrate
Price/Ton
Quantity
(US Ton)
$3,170.00
$150.00
$74.43
0.73
14.39
5.19
Cost ($)
$2,323.35
$2,158.95
$386.44
Total cost
$4,868.74
3. 400 Dairy Goat Farm Operation
A. Feed Quantity Used per Year
Animal
Feed
Kids until 1 week
Quantity per day (Oz)
Milk Replacer
Hay
Concentrate
40.00
Replacement kids
Quantity
Quantity per
per Year Quantity per day
Year (lbs)
(lbs)
348
984
57,572
20,768
B. Yearly Cost for Raising Kids and Yearlings
400
Feed
Milk replacer
Hay
Concentrate
Price/Ton
Quantity
(US Ton)
$3,170.00
$150.00
$74.43
1.47
28.79
10.38
Total cost
Cost ($)
$4,646.70
$4,317.90
$772.88
$9,737.48
14
Year
Quantity
(US Ton)
1.47
28.79
10.38
X
Fuel, Diesel and Lube
The cost calculations have been made by American Agricultural Economics Association ‘s
method enclosed in the Commodity Costs and Returns Estimation Handbook
(http://www.economics.nrcs.usda.gov/care/Aaea/ p.5-32 - 5-34).
We assume that with the corn silage ration, tractor is used more than the other rations. Therefore,
concerning the transportation feed, we assume a one-hour use per day for using corn silage while
the others use only half an hour per day.
To clean the barn, farmers clean and remove manure every 2 weeks depending on weather, we
assume here, a 2 hours every 2 weeks spending to clean the barn and a 50 hours per year for other
use.
Consequently, for a farm that uses corn silage tractor runs during 467 hours per year whereas a
farm which uses other feeds spend 282 hours per year.
Example: Ration 1, 100 goats
Diesel (GPH) = 0.06 * (PTO max) * (0.73)
Diesel (GPH) = 1.75 gallon per hour
Consumption per year = Diesel * Total hours (feed, clean and other)
Consumption per year = 1.75 * 467
Consumption per year = 817/25 gallons per year
Price per year 2006 = 300 cts/gallon
Cost fuel tractor per year = $ 2,455
The cost of lubrification is around 15% of the total cost of fuel (for only the cost coming from the
tractor).
We assume that the annual cost is $368 (including filters are changed every other oil change).
100
200
400
Ration Corn
Silage (1)
$ 2,823
$ 4,234
$ 5,645
Ration Hay and
Haylage (2 and3)
$ 1,717
$ 2,575
$ 3,433
15
XI
Buildings Budget
1. Goats Requirements
We budgeted the cost for new buildings but most of the time, the existing barns can be modified
and adjusted for goats without losing sight of the goats housing requirements. This will cut the
cost of the investment.
1 Meter = 3.281 Feet
1 Square Meter = 10.76 Square Feet
Assumptions
Animals
Goats
Bucks
Doelings
Kids
Housing Requirements
Goat
Animals Added
Air per Goat
Space per Goat
Feeder per Goat
Alley Way
Housing Requirements
Doelings
Space per Doeling
Feeder per Doeling
Alley Way
Unit
Head
Head
Head
Head
Unit
Head
Cubic meter
Square foot
Meter
Meter
Unit
Square foot
Meter
Meter
Herd size
200
20
50
312
100
10
25
156
100
120
7
20
0.33
2
Herd size
200
240
7
20
0.33
2
Herd size
100
200
10.7
10.7
0.25
0.25
2
2
400
40
75
625
400
420
7
20
0.33
2
400
10.7
0.25
2
It is recommended having around 1.5 square meter per goat but we assumed a larger space of 2
square meters (20 square feet), 1 square meter (10 square feet) for doeling and 3 kids per square
meter.
For bucks, we assumed that the required space is 30 square feet. No information has been found
on the bucks housing cost and requirements.
The goat flows fluctuate during the year there are more or less animals sometimes therefore to
prevent these periods 20% of all the herd has to be added in order to calculate the total animals
space needed.
For the feed way in the buildings, we assumed that 2 meters allow to unroll hay (for round bales),
to spread easier feeds and to observe animals without needs to enter in the pen.
16
Housing needs
Goats
Air
Space
Feeder
Space for Feeder or Alley Way
Head
Cubic meter
Square foot
Meter
Square Foot
700
2,400
17
355
Herd size
200
1,400
4,800
33
710
400
2,800
7,200
66
1,420
2,755
256
5,510
512
8,620
801
100
Total Space
Square Foot
Square Meter
Bucks
Air
Feeder or Alley Way
Space
Head
Cubic meter
Meter
Square Foot
Square Meter
10
Head
Cubic meter
Square Foot
Meter
Square Foot
25
Doelings
Air
Space
Feeder
Space for feeder
Total Space
Kids
Space
Feeder or alley way
Total Space
Total Surface
20
50
1
300
28
40
100
1
600
56
50
200
1
1,200
112
100
175
323
0.25
67
350
646
0.25
135
700
1,291
0.25
269
390
36
780
73
1,560
145
468
1
936
1
625
1,875
1
Square Foot
Square Meter
468
43
936
87
1,875
174
Square Foot
Square Meter
3,913
364
7,826
727
13,256
1,232
Square Foot
Square Meter
Head
Square foot
Meter
17
165
325
2. Buildings Size and Budget
Buildings
Main Barn (Goats)
Length
Width
Height
Milk House
Length
Width
Cost (Main Barn + Milk House)
Materials
Labor
Total
Unit
Feet
Feet
Feet
100
70
40
12
Herd size
200
90
60
12
400
75 & 90
40 & 60
12
Feet
Feet
30
14
36
14
35
20
$48,000
$34,000
$82,000
$820
$67,000
$38,000
$105,000
$525
$97,000
$65,000
$162,000
$405
40
26
12
50
36
12
70
50
12
$10,500
$7,900
$18,400
$184
$16,500
$12,500
$29,000
$145
$38,500
$29,000
$67,500
$169
20
12
12
24
20
12
40
30
12
$3,600
$2,900
$6,500
$65
$7,700
$5,800
$13,500
$68
$11,000
$8,300
$19,300
$48
$
$
$
$/Goat
Doelings and kids
Length
Width
Height
Cost (Doelings and Kids Barn)
Materials
Labor
Total
Feet
Feet
Feet
$
$
$
$/Goat
Bucks
Length
Width
Height
Cost (Doelings and Kids Barn)
Materials
Labor
Total
Feet
Feet
Feet
$
$
$
$/Goat
Investments
Unit
Goat Barn + Milk House
Doelings + Kids
Bucks
$
$
$
$
$/Goat
$/Square Foot
TOTAL INVESTMENTS
18
100
$82,000
$18,400
$6,500
$106,900
$1,069
$ 23.76
Herd size
200
$105,000
$29,000
$13,500
$147,500
$738
$ 18.02
400
$162,000
$67,500
$19,300
$248,800
$622
$18.03