SHEEP FARMING IDEA

Raising sheep is indeed a profitable business. With small capital investment, any individual can start
raising sheep even with other livestock. Generally, sheep farming comes under the animal husbandry
segment.

Globally, this is a traditional livestock business. Sheep provide meat, milk, and wool. Even, you can earn
money from selling skin and manure also. Apart from the domestic market, the products have good
international demand. So, the business has the potential of earning foreign currency also.

8 Reasons You can Earn Profit from Sheep Farming

1. First, you can start the business with a small investment and space. The business doesn’t
demand huge capital in starting.

2. The business requires less labor for daily maintenance and care. Thus, you can run the farm with
less working capital investment.

3. Sheep give birth to kids frequently. So, you can create a large size herd within a short period of
time.

4. Sheep require less space for living. Even you can raise sheep with your other livestock animals.

5. Additionally, you don’t need to build expensive housing for the sheep. So, it allows you to
maintain your cost early.

6. Sheep eat different kinds of plants. So, you don’t need to provide high-quality feeds all the time.

7. Basically, sheep are very hardy animals. They can adapt to almost all types of environments. So,
you can raise sheep in a wide range of temperate climates, including arid zones.

8. Finally, the products you get from sheep-like meat, wool, and milk have high demand in the
market. So, sheep farming is a commercially lucrative business for entrepreneurs who want to
start a livestock business.

Economic Importance of Sheep Farming – Market Potential

Basically, sheep are an important livestock species. They contribute greatly to the agrarian economy,
especially in the arid/semi-arid and mountainous areas where crop and /or dairy farming are not
economical.

Sheep farming plays an important role in the livelihood of a large percentage of small and marginal
farmers and landless laborers. Several rural-based industries use wool and sheepskins as raw materials.
Sheep manure is an important source of soil fertility too. Additionally, the production of wool, meat, and
manure provide three different sources of income per year.

While lamb dominates, especially in developed economies, mutton that comes from adult sheep also
generally enjoys a strong demand led by Muslim groups and other consumers with more limited
purchasing power.

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Basically, China inevitably dominates the global market, accounting for 27% of the total. There are then
several smaller markets with a market share of 3-4% of the global total. Sudan is the second largest
followed by the UK. The EU accounts for an estimated 12% of global consumption. Furthermore, the
Middle East/North Africa (MENA) caters to around 19% of the total global sheep meat market.

How to Start Sheep Farming Business

Step 1: Business Plan

Regardless of the size of your sheep farm, you must craft a business plan. And your sheep farming
business plan must consist of the financial analysis, marketing strategy, and income revenue
calculations. Here, we have provided a sample business plan for your ready reference. However, the
costs may differ from the current market rates.

The project size is 200 ewes and 10 rams.

Basis & Presumptions

1. Lambing interval of 12 months and lambing percentage is 70 during the 1st year of operation
with a sex ratio of 50:50.

2. Total lamb production is considered 140 numbers and with a mortality rate of approx. 5%
conservatively, total lamb production shall be as 130. Female lambs are retained, and male
lambs are sold at 8 to 9 months of age.

3. Shearing of wool is done twice a year.

4. The yield of wool is as follows:

Adults 1.2 Kg per animal

Lambs 0.6 Kg per animal

Working capital (for 30 days) once a year

Concentrated feed during lactation period: 210 x 0.25 Kg. /Day x 30 days @ Rs.4.00/kg L.S = 6,300.00
Misc. expenses = 200.00.

So, the total expenses = 6,500.00

The main source of feed is by way of grazing. During the lactation period, you will need to provide
concentrated feed.

Cost of Project

Land: own

Site Development fencing, and roofing 500 sq. ft. = 12,000.00

Cost of animals
(a) 200 ewes × Rs.550/- per ewe. = 1,10,000.00
(b) 10 rams × Rs.650/- per ram = 6,500.00

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Equipment and insurance, veterinary expenses, cost escalation, contingencies, etc. (LS) = 15,000.00

Working Capital 6,500.00

So, the total expenses = 1,50,000.00

Project Economics

From the sale of wool

Adult sheep 210 × 1.2 Kg× 2 cycles × Rs.60 per Kg. = 30,240.00
Lambs 70 × 0.6 kg× 2 cycles × Rs.60 per Kg. = 5,040.00
(ii) Sale of lambs 100 × Rs.500 each = 50,000.00
(iii) Penning charges 200 × 6 months × Rs.7 per animal per month= 8,400.00
So, the total amount = 93,680.00 Rounded over = 94,000.00

Cost of Production

Concentrate = 6,300.00
Veterinary expenses/insurance @ Rs.10 animal = 5,600.00
Shearing charges = 1,100.00
Interest charges (if any) = 9,000.00
Sustenance allowance = 18,000.00
Misc. expenses = 1,000.00

TOTAL = 41,000.00

So, the cash profit: (94000 – 41000) = 53,000.00

Depreciation/amortization of expenses @ 10% 14,350.00

Net Profit = 38,650.00

No manpower on wages is considered since the entrepreneur himself & his family members can manage
the operational activity. The cost of the project may vary in different States & Regions.

Step 2: Identify a Location

If you already have a location of your own, then it’s good. Otherwise, you will need to identify and select
a location for setting up the farm. Basically, the area required depends on the size of the farm and the
population of the livestock you want to keep on your farm.

Generally, location plays an important role in the overall success of your sheep farm. Ensure that the
space is clean enough and has a clean water resource. Additionally, check the availability of an adequate
number of greens and easy transport facilities. Also, don’t establish the farm in a location that is very far
from the local market.

Step 3: Procure Quality Breeds

Procure the quality breeds either trusted breeders or responsible farmers. Generally, you can find
numerous sheep breeds throughout the world. However, all those breeds are not suitable for farming in

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all areas. So, you will need to procure the breeds according to the agroclimatic condition of your
location.

Additionally, you will need to select the breed according to the specific demand. Basically, some breeds
are suitable for commercial meat production and some breeds are suitable for wool production. So,
choose suitable breeds according to your desired production purpose. Some of the most popular sheep
breeds are

1. Bannur

2. Bellary

3. Dorset

4. Suffolk,

5. Cheviot

6. Deccani

7. Cordially

8. Montadale

9. Hassan

10. Merino

11. Rambouillet

12. South Down

Step 4: Build the Housing

Building the right housing is one of the most important aspects of establishing the sheep farm. Basically,
you must provide housing that can protect the sheep from adverse climatic situations. You can provide a
simple shade to house the sheep.

However, you must construct the shade in an elevated area to prevent water stagnation. Additionally,
you can grow the fodder trees around the shades and use the space as grazing land. Finally, the entire
house must have a sufficient ventilation facility.

For a comfortable house east-west orientation with generous provision for ventilation /air movement to
dry the floor is suitable. However, the most suitable is a thatched roof due to its cheaper cost and
durability.
However, you can also use corrugated asbestos sheets for organized farms to minimize the recurring
costs and to have longer durability.

Generally, an adult sheep requires about 20 square feet of floor space. For example, if you intend to
raise 10 sheep, then you must make a house 10 feet long and 20 feet wide. Keep the roof at least 6 feet
high from the floor.

Different Shades of Organized Sheep Farm

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  General flock shed (Ewe / Doe shed)

 Ram or buck shed

 Lambing or kidding shed

 Lamb or kid shed

 Sick animal shed

 Shearing and storeroom

 Attendant’s room

Step 5: Feeding

You must provide proper feeding for the best result. Additionally, you will need to provide the food
according to gender and age. Good-quality hay or stored forage is a highly productive feed for your
sheep farm.

The period from weaning to the breeding of ewes is critical if a high twinning rate is desired. Ewes
should not be allowed to become excessively fat but should make daily gains from weaning to
breeding. During the last 6–8 wks. of pregnancy, the growth of the fetus is rapid. This is a critical period
nutritionally, particularly for ewes carrying more than one fetus.

Beginning 6–8 wks. before lambing, you must increase the plane of nutrition should be gradually and
continue without interruption until after lambing. The amount offered depends on the condition or fat
covering of the eyes and the quality of the forage.

If ewes are in fair to good condition, 0.5–0.75 lbs. (225–350 g) daily is usually sufficient. The roughage
content of the ration should provide all the protein required for all nonlactating ewes. If necessary, you
can classify the ewes according to age, condition, and number of fetuses and divide them into groups for
different treatments.

Step 6: Care & Management

Basically, you will need to provide good care and management to get the maximum profitability of your
farm. You will need to procure quality breeds and provide good housing and food. Additionally, maintain
the cleanliness of your farm. In addition to that, provide the right vaccination to your sheep. If you
notice any sick sheep, separate the animal promptly, and provide proper treatment.

To obtain the optimum profit, always tap the local market of the products. It helps to keep the
transportation costs minimum. Additionally, always think about the other marketing avenues to get the
maximum profits from your sheep farming business.

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How to Create a Business Plan for Sheep Farming

If you plan to raise sheep for profit or at least try to break even while raising sheep, one of the most
important steps you can take to set yourself up for success is to develop a business plan for sheep
farming. A well-considered business plan is an essential part of operating any business, and sheep
production is no different.

Your sheep farm plan should include a clear set of goals, a firm grasp of flock management
fundamentals, and the marketplace in which you plan to sell your breeding stock, meat, wool, and (if
applicable) dairy products.

In this article, we’ll cover the basics to help you develop a successful business plan for sheep farming.

Sheep Farm Business Plan Preparation

Putting together a business plan for your sheep farming operation isn’t so different from putting
together a plan to launch any other business.

A business plan can help, even if you already have sheep on your property. Even if you have been raising
stock for a few years. If you want to start running your farm like a business, creating an organized and
informed plan can help. Not only can you get your farm out of the red, but planning will also help you
focus on your primary goals.

The basic components of a business plan for sheep farming may include the following 6 items:

Cover Sheet

Your cover sheet will include the name of your business, your farm’s contact information, and the date
the plan was prepared. Even if you don’t plan to apply for a business loan, this is a good way to organize
your sheep farm plan and help you take your efforts more seriously.

Executive Summary

This is a top-level summary of your sheep farm business plan, including a short description of your
business, your mission statement, and the goals you hope to achieve as you execute your business plan.

Business Description

Your business description should be a simple and accurate description of the main components of your
business. This includes a short business overview, details about your business location and facilities,
ownership of your business, and a short history of your farm.

Production Plan

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Your sheep farm production plan will document the products that you will produce, how you will
produce those products, and how much you expect to produce. This section should also detail any
permits and regulations which may impact your production plan.

Marketing Plan

The marketing plan for your sheep farm should include a short summary of recent market trends, any
marketing alliances you have or wish to build, an overview of your primary and secondary marketing
strategies, and any competitive advantage your business has.

Financial Plan

Your sheep farm’s financial plan may be the most critical part of your overall business plan. Items you
should plan to include in your financial plan are a balance sheet, an income statement, a cash flow
statement, and your overall farm enterprise budget.

Online Sheep Farming Business Plan Generators

We can also recommend the following online options if you need some assistance.

The University of Minnesota Center for Farm Financial Management has terrific online business planning
software called AgPlan which is available for free!

Using this software allows you to not only view your business plan online, but can also review examples
of other people’s business plans created with AgPlan and share your business plan with advisors to
receive feedback and support.

Purdue University has an online business planner portal called INVenture, which uses a simple question-
and-answer format to help you write a cohesive sheep farming business plan.

We feel that either the University of Minnesota platform or Purdue’s platform can work if you’re having
a hard time getting started on your own or finding local support.

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3 Things Which Can Make or Break Your Sheep Farm Plan

While there are many variables involved when planning and operating a business, some matter more
than others. The 3 primary variables you should pay special attention to when creating and executing a
sheep farming business plan are:

 feed costs,

 market prices, and the

 percent lamb crop.

1. Cost of Feeding Your Flock

As you probably know if you’re considering raising sheep for profit, the cost of feeding your flock will be
your primary expense. This is particularly true for the cost of feeding your ewes.

While there are many strategies for determining your annual feed cost, including determining in
advance how many sheep per acre your farmland can support, there is no one-size-fits-all solution when
it comes to feeding a flock of sheep.

Early on you may have to estimate your annual feed costs. After a few years, you will be able to average
your historical spending to obtain an accurate cost projection.

2. Prevailing Market Prices

Market prices for your meat, wool and dairy products can change annually, seasonally, and even week
to week. Higher market prices will increase your profitability, but it’s important to compare “net”
market prices.

If you must sell through a livestock auction there will be an extra cost. These businesses often charge a
flat fee or a percentage of the sale. So, a higher price may not net you as much as if you sold directly to a
consumer at a lower price.

In general, if you can sell directly from your farm to commercial buyers or consumers, you can net more
per sale. Cutting out the middleman is usually good business.

It’s important to be aware of this when you develop the marketing plan for your sheep farm.

3. Percent Lamb Crop

Finally, the Percent Lamb Crop in any given year will have a major impact on your profitability. We
define this data point as the number of lambs marketed (or retained for breeding) produced by each
ewe exposed for breeding.

In general, producing more lambs will net you more profit, as it will typically cost the same amount of
money (or close to it) to maintain a ewe, regardless of how many lambs she produces in a year.

A flock of prolific ewes that raise numerous healthy lambs will improve your percent lamb crop and can
help make your sheep business more profitable. A ewe’s age, weight, nutrition, and genetics can all
impact her ability to deliver multiple lambs per year. Most ewes reach their peak productivity between 3
and 6 years of age; something to be aware of as you monitor the age of your flock.

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For most shepherds, 200% is a realistic goal to set, and most sheep breeds can produce a 200% lamb
crop each year if fed and managed properly.

Introduction To Sheep Farming Business

Sheep farming business is one of the oldest professions and traditions in most parts of the world.
Primarily sheep farming is mainly carried out for its meat and wool. However, the milk of sheep does not
have much demand. Sheep farming is a more profitable business than goat farming as sheep can attain
good weight within a short period of time. Sheep can be raised on a small scale or large scale for
commercial purposes. As sheep meat has excellent demand, especially in India, many people are
showing interest to start profitable sheep farming. To become a successful sheep farmer, you must have
time to dedicate to the farm. Apart from this proper sheep farming business plan, hard work is essential.
There are many indigenous sheep breeds, cross-bread sheep, and exotic sheep available to raise.
However, you must ensure that these sheep are suitable for your local climatic conditions. Let us discuss
the sheep farming business in upcoming sections.

Advantages

• Multi-Purpose: Sheep can be raised for multipurpose such as producing meat, wool, and milk. Sheep
can be raised along with other livestock without any problems. • Low Investment: If you want to start a
sheep farming business, you should not worry about investment as you start with low capital. • Cheap
Infrastructure: Well, to establish a sheep farm, it is not required to have heavy and expensive sheds or
infrastructure.

• Less Labor cost: The sheep farming business does not require skilled labor. Even women and old
people can manage this business. You may need seasonal labor and permanent labor depending upon
the number of sheep in the shed.

• Fast Growth of Herd: Usually, sheep gain weight in a short duration and the reproduction of sheep is
very high. Hence, the sheep herd can be grown at a faster rate. This is possible because sheep can give
birth to more than one kid.

• Less Feed / Fodder Requirement and Cost: Sheep always look at the ground to feed on. They can
consume various grasses and plants, and shrubs and convert them into quality meat and wool. You no
need to give any specific fodder, hence feed cost would be less compared to other livestock businesses
such as dairy and poultry.

• Sheep Manure: Apart from meat and wool, you can get excellent manure from sheep. This can be
used in your own lad for growing crops or fodder. It works as good organic compost for plants.

• Market Demand for Sheep products: Sheep meat is consumed in all religions and has an excellent
demand in the local and export market. Even sheep wool is one of the best products you can market
easily.

• Climate Adaptability: Sheep are hardy animals that can easily adapt to any Agroclimatic conditions.

• Requires Less Space: Sheep require less space and can manage even in backyards. However,
commercial sheep farmers should have a good area shed and grazing area.

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• Creating Local Employment: Sheep farming contributes to the local and national economy. Sheep are
a part of the animal husbandry of the agriculture department. Large-scale sheep farming defiantly
provides rural employment in economically poorer sections.

• Easy Marketing: Well, sheep farming does not require much effort to market its products. Once you
have started, there are many people who will be approaching for sale. It is advised to directly sell to
slaughterhouses or consumers for more profits.

Who Can Start Sheep Farming Business?

• Anyone who has passion can start a sheep farming business. • Unemployed people can start to earn
for their livelihood. • landless/marginal landowners can go for this. • People who want to earn part-time
along with other livestock. • Commercial/Businesspeople can start this on large scale.

Sheep Farming Business Systems

1. Intensive: In this system, sheep are raised in an enclosed shelter. This is also called stall-fed sheep
farming. Feed, fodder, and freshwater are provided in the house itself.

2. Semi-intensive: In this system, sheep are allowed to graze outside for some time, and then
concentrates and nutrients/minerals are fed in the shed.

3. Extensive: This is a completely open grazing system where sheep are only allowed to shed in night
times for resting.

Indigenous sheep breeds of India:

• Deccani. • Coimbatore. • Mandya. • Bellary. • Trichy black. • Mecheri. • Vembur. • Merino. •

Marwari. • Gaddi. • Banner. • Neelagiri. • Hassan. • Nellore Brown. • Madras red/Chennai red. •
Keezhakaraisal. • Ramanadhapuram white.

Exotic Sheep breeds:

• Merino. • Lincoln. • Cheviot. • Rambouillet. • Dorset. • Dorper. • Suffolk. • American Black Bellied. •
Jacob. • East Friesian. • Southdown.

Location For Sheep Farming Business: Location plays a major role in successful sheep rearing. Make
sure to select a site in an elevated and less water-prone area. The site should be secured from all wild
animals, hence avoiding areas close to the forest. It is advised to have the location of the farm close to
veterinary aid. The location should have good road access and transportation.

Sheep Housing / Shed Construction: Depending on animal count, the appropriate shed should be
constructed. You can build the shed with locally available material as well. However, commercial sheep
farmers should build a shed roof with asbestos sheets and with walls of 8 to 10 feet. Sheep flooring can
be done with cement or wood. You can have a paddy husk on the floor for a deep litter system. The
sheep shed should have proper access for sheep hence it is recommended to have two entrances. One is
for entry and the other is for an exit. Build the shed in an east-west direction for proper cross ventilation
and airflow. As part of the shed design, you must consider special pens, waterers, and feed troughs. For
easy access to fodder, a feed room can be built along with the shed or as part of the shed. You must
have fencing around the sheep shed from preventing any predators.

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Feed / Fodder Management in Sheep Farming Business: Feed management is one of the utmost
priorities in commercial sheep rearing. Apart from regular green fodders, you must provide
supplemental nutritious feed (feed concentrate). The feed intake depends on the sheep’s age, and
status (dry or pregnant or lactating or breeding).

Fodder crops for your sheep:

• Arasu. • Vagai. • Karuvel. • Velvel. • Agathi. • Glyricidia. • Kodukapuli. • Seemaikaruvel.

Concentrate feed ingredients for your sheep:

• Sorghum. • Maize. • Broken rice. • Jowar • Soya bean cake. • Groundnut cake.

Composition of ideal creep feed in sheep farming business:

• Maize:40% • Ground nut cake: 30% • Wheat bran: 10% • De-oiled rice bran:13%. • Molasses: 596 •
Mineral mixtures: 2%. • Salts: 1% fortified with vitamins A, B2, D3, and antibiotic feed supplements.

Feeding schedule for a sheep kid from the time of birth to 3 months (90 days)

Age of Sheep Ewe’s milk or Cow’s milk Sheep Creep Feed Forage. greens/day (gr)
1 to 3 days Colostrum: 300 ml, 3 feedings
4 to 14 days 350 ml, 3 feedings
15 to 30 days 350 ml, 3 feedings Little amounts Little amounts
31 to 60 days 400 ml, 2 feedings 100 to 150 grams Free of choice
61 to 90 days 200 ml, 2 feedings 200 to 250 grams Free of choice

Concentrate feed rate/day in Sheep Farming Business:

Sheep body weight (kg) If legume fodder is available Legume fodder is not available
Up to 12 kg 25 to 50 g 200 to 300 g
12 to 15 kg 50 g 300 g
15 to 25 kg 100 g 400 g
25 to 35 kg 150 g 600 g

Sheep Health Care in Sheep Farming Business

Sheep Disease: Timely treatment of sheep will reduce mortality. There are many diseases that can
affect the sheep’s health. The following are common diseases and abnormalities found in sheep.

1. Anthrax. 2. Abortion. 3. Tetanus. 4. Sheep pox. 5. Peste-des-Petits Ruminants (PPR). 6. respiratory

disease (like Bloat/Indigestion). 7. Caseous lymphadenitis (CL, CLA). 8. Foot scald and rot. 9. Bluetongue
(BT). 10. Internal parasites. 11. Mastitis. 12. OPP (Ovine progressive pneumonia). 13. Pregnancy toxemia.
14. Scrapie. 15. Orf.

For symptoms and treatment of the above-said diseases, contact your veterinary doctor.

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Sheep Vaccinations: You need to get the vaccinations for your animals under veterinary guidance. The
following gives you an idea of vaccination for major sheep diseases.

Vaccination Schedule in Sheep Farming Business

Disease Age of sheep and Route Remarks

Booster dose
Foot and mouth 6 to 8 weeks: Repeat s/c or i/m depending
disease (FMD) every 6 to 9 months on the vaccine.
Hemorrhagic 3 to 4 months. Repeat 1 ml s/c May/June
Septicemia annually.
Sheep Pox 90 days. s/c
Tetanus Tetanus toxoid 0.5 to 1 ml s/c or i/m
Anthrax 4 to 6 months: repeat 0.5 ml s/c at the tail In endemic areas only
annually fold
Enterotoxaemia 3 to 4 months: repeat 2.5 ml s/c First two doses before
after 2 weeks and then August
annually

Tips For Sheep Farming Business

• Start with a minimal number of sheep and start expanding the herd as you gain the experience.

• Prepare a perfect sheep business plan as per your budget.

• Visit nearby sheep farms to find out about problems in sheep raising.

• Get sheep basics training at any sheep breeding and training center.

• Watch YouTube videos and order any sheep project report.

• You can also download free sheep farming PDF documents online.

• Always buy good and healthy sheep breeds with a help of a veterinary doctor.

• Avoid buying too young (below 4 months) and too old sheep.

• Get all the animals vaccinated as per schedule.

• Maintain a record-keeping for all sheep in the shed.

• Monitor all the animals and if you find any abnormalities, isolate the sheep until it gets treated.

• Schedule a veterinary doctor to be onsite every week to check all the animals.

• Ear tags should be done for easy identification.

• Do not mix male and female sheep at night times except at the time of breeding.

• Provide clean and fresh water and the shed floor should be kept clean and dry.

• Pregnant ewes and kids should be provided with a proper ration of feed.

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