Sheep breeding: business plan. Sheep breeding as a business from "A" to "Z"

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

It is not uncommon for start-up entrepreneurs living in rural areas, when choosing the direction of their activity, prefer to engage in sheep breeding. Raising sheep is traditionally considered a popular business, and there are several reasons for this. First of all, the business attracts because of its relatively low labor intensity. This is explained by the fact that sheep are quite unpretentious animals.

The second reason for the popularity of these animals for breeding is their relatively low mortality. It is also attractive that you can start such a business from the smallest herd. The entrepreneur will not have problems with feed, because sheep are grazing animals.

Business Outlook

According to statistics, the demand for food is constantly growing among the population of our planet. Lamb is no exception. The share of annual consumption of this meat is about eight and a half million tons. As for Russia, sheep breeding is experiencing a period of deep crisis.

Confirmation of this fact -rapid decline in animal populations. There are only 1 million sheep on farms, 4.4 million heads in the herds of agricultural enterprises, and 9 million of these animals are raised in private households.

Starting a business

If in order to receive income, you have chosen such an activity as sheep breeding, a business plan, as in any other business, must be drawn up by all means. In this document, which reflects the main stages in the development of a farm, such an item as the registration of a company must be indicated without fail. Only in this case, your activity will be considered legal.

The legal form of the company is KFH (peasant farm). Registering a sheep breeding business is similar to registering an IP. The organization of a legal entity in this case is not required.

Whoever draws up a sheep breeding business plan must necessarily study the list of those documents that must be collected for submission to the registration authority. This list includes:

• FH registration application;
• power of attorney at the MFC;
• receipt confirming the payment of the state duty for registering the farm;
• original, as well as a copy of the passport of the head of the peasant farm;
• document confirming the Russian citizenship of the person who registers the farm;
• original and copy of birth certificate.

Another document that a business plan for sheep breeding should provide for is the permission of the SES. Without it, it will be impossible to openfarms.

Pasture selection

A business plan for a farm with sheep as its main activity should address animal nutrition. To provide forage, you will need to find a suitable pasture option.

When planning such a business as sheep breeding, make sure to draw up a business plan taking into account the fact that one animal (with offspring) will need 1 hectare of pasture during the year. This should be taken into account when calculating the planned number of sheep.

Choose a room

Where can sheep and rams be bred? The business plan should mention the options for choosing the necessary premises for the farm. They can become an ordinary wooden corral. Today it will not be difficult to find one of the abandoned farms, which are many in villages and villages.

It is not necessary to provide for any system of premises, because sheep tolerate frosts very well. In case of severe cold weather, it is enough to install only a potbelly stove.

Purchase of breeding stock

What kind of animals should be in the herd in order to make such a business as sheep breeding as profitable as possible? The business plan must have an article that provides for the cost of purchasing breeding stock. It is necessary to negotiate the supply of animals only with proven, certified farms. This condition will protect the newly created economy from possible problems with offspring. And in order to prevent intergenerationalcrossing animals, it is desirable to purchase individuals from different sellers.

What breeds of livestock will prevail in the peasant farm should also describe the business plan. Many entrepreneurs raise sheep for meat. That is why they buy the Romanov breed of sheep. She is meat. However, it should be borne in mind that in practice the advantage of the Romanov breed over the rest has not been confirmed. You can buy a long-haired Russian, prekos, etc. But if the business plan sets the main task of entrepreneurship is the sale of meat, then the Romanov breed should still be preferred.

Recruitment

After registering the KFH, resolving questions about the placement and purchase of livestock, you will need to hire workers on the farm. It will be impossible to organize sheep breeding on your own, without additional staff. The business plan should have a section that lists the professions and the number of people that will be needed to run the business properly. For every three hundred heads of livestock, four workers must be hired. These will include:

• shepherd (shepherd);
• veterinarian;
• milkmaid;
• hair cutter (available on a temporary basis).

When creating a small-scale sheep farm, members of the same family will be able to cope with work on it.

If you properly organize the daily routine and plan the necessary activities for the whole year, then forentrepreneur sheep farming is a profitable business. Breeding these animals, which requires little money and time, may not be the only direction for the farm.

Product sales

Wool, meat and milk - this is what will bring income to the entrepreneur. The amount of possible profit is also preliminarily calculated by the business plan (sheep breeding). The finished product in the form of wool today does not have a particularly high price. That is why it is not worth making special bets on it. It is also problematic to sell large volumes of sheep's milk. Only meat can give a decent profit. It can be offered to restaurants, cafes, barbecue houses, and also sold on the market. Of course, the demand for mutton is much lower than for pork, but the conclusion of contracts with regular buyers will make a business based on sheep breeding as profitable as possible.

Calculation of costs and profits

The business plan for sheep breeding should also include financial issues for the future project. Below are approximate calculations of the costs of organizing, as well as generating income for a farm with three hundred animals.

So, in order to open your farm, a novice businessman will need:

• for renting pastures and premises - 100 thousand rubles each;
• for the issuance of wages to employees (per year) - 600 thousand rubles;
• for overhead costs (per year) - 50 thousand rubles.

All these expenses will total 850 thousand rubles. A novice entrepreneur will need to invest in the purchase of animals. What is the priceone sheep? The price of the animal will depend on the purity of the species. Consider the most popular Romanov breed. The cost of one sheep will be 250-300 rubles. per 1 kg of live weight. In general, it will be 8000-12000 rubles. Fat-tailed lambs are somewhat cheaper. Each of them will cost 5500-8000 rubles.

What is the profitability of such a business? If you sell whole sheep, you can earn five hundred thousand rubles a year. On the sale of wool, the entrepreneur will receive one hundred thousand rubles. Half a million can be obtained by selling the meat of fifty heads. Thus, the annual income of the peasant farm will be 1,100,000 rubles.

All the above figures are approximate, of course. Much will depend on the region of business and on the existing average market prices for the final product. However, even the most modest estimates allow us to talk about the payback of sheep breeding within one year. This is a pretty good indicator, which in the current economic situation is clearly in favor of this business.

Fattening and further resale of lambs will increase profits from sheep breeding. Young growth can be bought in the spring for little money - 120 rubles. per 1 kg of live weight. By autumn, animals reach 60-65 kilograms. During this period, they can be sold profitably.