Great Lakes Dairy Sheep Symposium - the Department of Animal ...

While it is true that sheep milk is worth more than either cow or goat milk, in general,
these animals can make up for the price difference by generating more milk per animal, per unit
feed, or per hour of labor. Especially, if you are comparing the economics of sheep dairying to
organic cow dairying or to other dairies with value-added products, the net returns can be
comparable. The main reason to choose to milk sheep instead of (or addition to) other dairy
animals is because you like sheep; you have the disposition to handle sheep; you like sheep milk
and other sheep milk products; or you are trying to figure out how to make your existing sheep
operation more profitable.
Principle Two: A sheep dairy is a sheep farm first, with a dairy component.
As mentioned in principal one, if someone wants to concentrate solely on milk or dairy
product production, they probably will find it easier to milk cows or goats because the volume of
milk that those animals are able to produce makes up for the fact that their milk and finished
products are worth less per pound (push the pencil for awhile). But, additionally, a sheep dairy
will put a fair amount of money and work into lambs and wool, which have the potential for
significant returns, and should not be ignored. Karl and Jane North in New York as well as
Karen Weinberg also of New York are two examples of people who made this approach
successful.
Further, if you can’t run your lamb/wool operation at least at break-even, then you are
necessitating that the sale of milk will cover the losses of this aspect of your operation as well as
the extra capital, operating, and labor expenses of milking, cooling, and transporting milk. This
cuts into overall profitability, and makes profitability more elusive, especially if milk production
levels are low. Further, if you decide to value-add your product and your farm is losing money
at the lamb/wool and milking enterprises, then you are requiring the cheese (or yogurt, etc.) to be
your sole profit center and carry the losses of the other two aspects of the sheep business as well
as the additional costs of processing, curing, storing, marketing, and distribution. If that is the
case, the question I ask is, “Why not forget about the livestock operation”? Just set up a dairy
plant, and buy milk from farmers who focus on milk production.
Principle Three: It takes 3-4 years or more to establish a sheep dairy.
Creating a sheep dairy from scratch/nothing is extremely difficult and very costly.
Sheep farms, which are already established and have good markets for their meat, wool, and
pelts, are in the best position to convert to successful sheep dairies since they already have most
of the facilities, expertise, markets, and perhaps animals to get started. This reduces their upfront
costs, their learning curve, and the energy and effort needed to address the meat and wool part of
the business. A sheep farm that is already somewhat profitable in this area will have the best
chance at success.
The upfront costs and time commitment of investing in milking equipment, and a milk
parlor, let alone processing equipment, curing facilities, and transportation systems is usually
greater than anyone expects. This will produce personal, physical, and cash-flow stress, unless
there is an outside capital source subsidizing the business. This is where established cow and
goat producers can have a significant edge over sheep dairies when deciding to value-add. They
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