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

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.

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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.

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. Herd Management..................................................................................................................5 A. General .................................................................................................................................5 B. Breeding period ....................................................................................................................6 C. Kids ......................................................................................................................................6 D. Out of Season .......................................................................................................................6 E. 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. Other Sources of Incomes....................................................................................................14 A. Directly from the goat operation ........................................................................................14 B. Other Income......................................................................................................................14

V EXPENSES CATEGORIES ................................................................................... 16

1. Feeding Program and Costs ................................................................................................16 A. Presentation ........................................................................................................................16

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B. The French System.............................................................................................................16 C. Feed rations ........................................................................................................................17 D. Feedstock............................................................................................................................20 E. Feed costs ...........................................................................................................................21 F. 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

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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.

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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.

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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, non-fertility, 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_techn-eco_atel_capr_lait_et_from.pdf). Although we could use a 30 – 35% replacement rate it would

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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 Unit Herd size Goats Goats (G) Head 100 200 400Productive Goats (PG) (92%) Head 92 184 368Milk Production (1,700 lbs per PG) Lbs 156,400 312,800 625,600 Kids Prolificity (1.7 Kid/PG) Head 156 312 625Replacement (25%) Head 25 50 100Kid mortality (10%) Head 15 31 62Total Kids Head 141 281 563Bucks Bucks (B) (Ratio 1:20 (B/G)) Head 5 10 20Bucks Added (Out of Season) Head 5 10 20Total Bucks Head 10 20 40 Cull Animals Cull Goats (25%) Head 25 50 100Cull Bucks (32%) Head 4 7 13Male Kids Sold yearly Head 70 140 280Female Kids sold (not needed to maintain herd) Head 46 90 180

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3. Example

Here an example of a 400 goat operation

4.

s s

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The naturalthus most kMarch-Aprkidding pearound at (March to Jduring off-assumed. Dof age. Hokidding agedepends onBreeding mextended peIn this pape

40 Buck

Herd Management

s

0 Replacement Kids

A. General

breeding season for does is Auidding is from January to June. il will simulate the goats and riod will be off-season (fall-wconsistent levels. Does are breune) primarily because of a bettseason. Kids are born five mooes are bred at an optimal size awever, this depends on the gro. Female kids are generally wea the growth and health of the kidanagement is essential to prediriods of time. r, it is assumed that the dairy go

13 Cull Buck

s

gust to December (stimulated by decreasinArtificially increasing daylight during Debreeding will take place during the sprininter) thus allowing the farm to produced in-season (August-December) and ouer repartition of work and an advantageounths after breeding. An estimated 10% t 7 – 9 months of age, thus kidding at 12 –wth and health of the kids to doeling brned at two and half months of age, howeves. ct kidding days and to maintain milk pro

at farm sells all milk to Vermont Butter an

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13 Cull Bucks

400 Doe

560 Kids

368 Productive Goats

100 Cull Doe

s

c

t

100 Cull Doe

460 Kids Sold
626,500 lbs Milk
Annual Sales

460 Kids Sold (180 female, 280

male)

g daylight) ember thru g therefore milk year of season

s milk price kid loss is 14 months eeding and r this again

duction for

d Cheese.

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)

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E. Summary

Operation Duration Period

Feeding program 12 months Year around

Breeding 6 months Aug – Dec

Breeding out of season 4 months March – Jun

Kidding 12 months Year around

Weaning 12 months Year around

Milk production 12 months Year around

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

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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

he goat requirements used in this paper are:

Housing R ents

to adapt them for goats. T

equirem Doeling Unit 1

Space per Doeling Square foot 10.7 Bunkline Space per Doeling 0.25 Meter Alley Way Meter 2

Kids Space per Kid Square foot 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

ey

nd feed alley. Values of

. For more details on how to assess the building size for your erd, go onto the appendix section.

of the

nd

under estimate how critical this factor is to the overall health of the animal and to the operator.

Housing R ments Example equireGoat Unit 100

Animals Added (20%) Head 120 Air per Goat Cubic Foot 247 Space per Goat Square Foot 20 Bunkline Space per Goat Foot 1.1 Alley Space per Goat Foot 6.56

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 all(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 athe 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 sectionh

A note to the reader about buildings: Ventilation is keenly important to the healthdoe, 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, aother issues. Thus you need to evaluate this closely when modifying old buildings or when putting in new buildings. Do not

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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.

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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.

100 200 400 Double 4 or single 8 hot dipped galvanized goat parlor

$ 2,600 Double 8 hot dipped galvanized goat parlor $ 5,200

Double 12 hot dipped galvanized goat parlor

$ 7,900

500 gallon used bulk tank $ 3,500 1 000 gallons used bulk tank $ 7,000 2 000 gallon used

bulk tank $ 14,000

Other milking equipment $ 6,810 Other milking equipment $ 10 400 Other milking

equipment $ 12,440

Total Cost $ 14,210 $ 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

Unit Farm 1 Farm 2 Farm 3 Land Acre 15 20 30 $ $65,000 $90,000 $165,000 Buildings $ $85,500 $118,000 $199,000 Equipment $ $24,910 $34,600 $84,300 Livestock $ $19,500 $39,000 $78,000 Total Assets $ $194,910 $281,600 $526,300

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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.

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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.

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C. Milk Income

Milk income Unit Herd size 100 200 400

Milk production Lbs 156,400 312,800 625,600 Incomes $ $ 54,866 $ 109,733 $ 219,466 Bonus $ $ 6,261 $ 12,523 $ 25,046

Total Incomes $ $ 61,128 $ 122,256 $ 244,512 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:

100 200 400 Animal Rate Quantity Income Quantity Income Quantity Income

Kids $8.00 116 $ 928 230 $ 1,840 460 $ 3,680Cull animals $64.00 25 $ 1,600 50 $ 3,200 100 $ 6,400Bucks $100.00 3 $ 300 7 $ 700 13 $ 1,300Total Incomes $ 2,828 $ 5,740 $ 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.

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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

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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.

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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.

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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.

Start of

Lactation Ration

Core of LactationRation

End of Lactation

Ration

4th month of Gestation

Ration

End of Gestation

Ration

Months 2 6 2 1 1 Dairy Goat Pellet 1.54 1.32 1.10 0.88 1.32 Corn Silage 3.08 2.64 2.20 0.00 0.00 Hay (grass) 2.20 2.20 2.20 3.96 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. Start of

La n Ration


End of La n

Ration

4th month of Gestation

Ration

End of Gestation

Ration ctatio ctatio

Months 2 6 2 1 1 Dairy Goat Pellet 1.10 1.10 0.88 0.44 0.66 Barley 0.66 0.66 0.66 0.66 0.66 Corn 0.88 0.88 0.66 0.00 0.22 Haylage (Grass) 1.54 1.54 1.10 0.00 0.00 Ha .86 3.96 3.96 y (grass) 2.86 2.86 2

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 ra lfalfa and Grass Hay

Milk P oduction 1700 lbs pe per YeStart of

La n Ration


End of La n

Ration

4th Month of Gestation

Ration

End of Gestation

Ration

tion”: A .

r r Goat ar.

ctatio ctatio

Months 2 6 2 1 1 Alfalfa Hay 2.75 2.75 2.42 2 2 Hay 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

Q Grass Hays on as fed daily basis. Barley and Soybean can be substituted by a commercial feed.

he kids and re m nt milk replacer feeding University pro ially milk replacer. Their

moun ee ing ule

s a day

uantity in lbs per day. Alfalfa and

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. T place e programs vary widely in the field. Thus Langston

vides e endations on kids management espec on the quantity of r comm recommendations below are:

Age A t of Fluid/F d Feeding Sched1 to 3 days 4 ounces 5 times a day 3 days to 2 weeks 8 to 12 ounces 4 time2 weeks to 3 months 16 ounces 3 times a day 3 to 4 months 16 ounces 2 times a day

Source:Dr. Lionel Dawson, 2006, http://www2.luresext.edu/goats/library/field/dawson06.pdf

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Weaning time advised by Langston University is at 4 months of age whereas, In France, an eight-week weaning (P.E.P Caprin, L’élevage des chevrettes) can be performed under certain weight

e keys to early weaning is to have high quality water, hay and concentrate available at

rowth is important and a good quality feed should be

r optimum consumption. Moreover, at this particular age, the risk of xcess 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.

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 ththe 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 gavailable. By 4 months of age, replacement kids should be grouped by the bodyweight and is a good way to provide feed foe

Feeding program

Animal Stage Number of Day Weight

CQuantity

(O )

Milk Replacer Fed

(

Feed per day (Lbs) Hay s)

olostrum

z Oz) (Lb

All kids 20 oz From one to three daysold 3

All kids From 3 to 7 days old 4 40 From 1 week to 2 week old 7 40 0.4 1.8

From two week to two month old 45 1month = 20

lbs 48 0.4 1.8

From 2 to 2.5 month 15 32 0.4 1.8 From weaning to 4 month old 45 At least 26 lbs 0 0.9 2.4

From 4 to 7 month old 90 0 1.1 2.9

Kids replacement

7 - 8 month old (breeding period) 30 At least 65-75

lbs 0 1.3 3.1

For ease of calculations, we assumed that kids are fed only milk replacer. Farmers use half milk

the first three

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.

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 duringdays of life can be stored in the freezer and given after a heat treatment (CAEV disease). Remark: In France, goat’s milk within

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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

Feedstock (US Ton) Total

Consumption (Lbs/goat/year)

100 200 400 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

ii. Ration 2


Consumption (lbs/goat/year) 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

iii. Ration 3


Consumption (Lbs/goat/year)

100 200 400 Alfalfa Hay 950 54.6 109.3 218.6 Hay 803 46.2 92.4 167.9 Barley 576 28.8 57.6 104.6 Soybean 94 4.7 9.4 17.0 Total 2423 134.3 268.6 508.2

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E. Feed costs

Below are the prices per ton for feeds in Vermont and the surrounding states.

Feed Price ($ / US Ton)

Forages and Silages Haylage (Grass) $50.00 Hay (grass) $150.00 Alfalfa Hay $175.00 Corn Silage $30.00

Grains Barley $150.00 Corn $110.00 Dairy Goat Pellet $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.

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i. Goats

(1) Ration 1

Total Consumption (Lbs/goat/year)

Price ($) / US Ton Cost ($) per year

Dairy Goat Pellet 468 $235.00 $55.04 Corn Silage 2,510 $30.00 $37.64 Hay (grass) 910 $150.00 $68.26 Total 3,888 $160.95

(2) Ration 2



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 Hay (grass) 1,111 $150.00 $83.32 Total 2,409 $168.46

(3) Ration



Alfalfa Hay 950 $175.00 $83.15 Hay 803 $150.00 $60.23 Barley 576 $150.00 $43.17 Soybean 94 $300.00 $14.05 Total 2,423 $ 200.60

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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.

100 200 400 Feed Price ($) /US Ton Quantity

(US Ton) Costs

($) Quantity (US Ton)

Costs ($)

Quantity (US Ton)

Costs ($)

Milk replacer $3,170.00 0.37 $1,161.67 0.73 $2,323.35 1.47 $4,646.70Hay $150.00 7.20 $1,079.48 14.39 $2,158.95 28.79 $4,317.90Concentrate $74.43 2.60 $193.22 5.19 $386.44 10.38 $772.88Total cost $2,434.37 $4,868.74 $9,737.48

F. Summary

100 200 400 Total Per goat Per cwt Total Per goat Per cwt Total Per goat Per cwt

Ration 1 + kids $19,930 $199 $12.74 $39,860 $199 $12.74 $79,720 $199 $12.74Ration 2 + kids $23,055 $231 $14.74 $46,109 $231 $14.74 $92,218 $231 $14.74Ration 3 + kids $24,646 $246 $15.76 $49,291 $246 $15.76 $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.

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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.

Dairy Goat Farm Goat Herd (Head) 100 200 400 Quantity (US Ton) 37 75 148 Bedding Cost ($) $ 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.

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Unit Dairy Goat Farm

Head 100 200 400 Goats

$ $ 950 $ 1,900 $ 3,800 Head 25 50 100

Replacement Kids $ $ 125 $ 250 $ 500

Others (hoof trimming/dehorning) $ $ 108 $ 215 $ 430

Total Cost $ $ 1,183 $ 2,365 $ 4,730 Cost per Animal $/Goat $ 11.8 $ 11.8 $ 11.8

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.

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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 100 200 400 Meters 8 16 24 Standard cost (MW) $ 188. 24 $ 288. 32 $ 486. 00

MW + SCC $ 208. 24 $ 328. 32 $ 566. 00 MW/BF/Prot $ 213. 24 $ 338. 32 $ 586. 00 MW/BF/Prot/SCC $ 228. 24 $ 368. 32 $ 646. 00 MW/BF/Prot/SCC/MUN $ 253. 24 $ 418. 32 $ 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.

Herd size Hauling 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

$ $6,169 $7,138 $9,076 $/head $61.69 $35.69 $22.69 Total Hauling Cost $/cwt $3.82 $2.21 $1.40

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.

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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 100 200 400 Buildings $85 520 $118 000 $199 040 Milk Equipment $12 910 $22 600 $34 340 Equipment $12 000 $12 000 $50 000 Repairs and Maintenance $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 100 200 400 Surface (acre) 15 20 30 House (acre) 2 2 2 Farm (acre) 13 18 28 Acres Value ($) $ 65,000 $ 90,000 $ 140,000 Buildings Value ($) $ 85,520 $ 118,000 $ 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% $364,000Equipments 50% $24,910 50% $34,600 50% $84,300Livestock 100% $19,500 50% $39,000 50% $78,000Total Value $194,910 $281,600 $526,000 In this case, the interest rate chosen is 7%.

100 200 400 Assets Years

Interest per Year Interest per Year Interest per YearLand + Buildings 20 $5,210 $7,202 $12,603Equipments 7 $827 $1,148 $2,797Livestock 5 $1,258 $2,516Total $6,037 $9,608 $17,916

Principal

100 200 400 Assets Years

Principal per Year Principal per Year Principal per YearLand + Buildings 20 $1,790 $2,474 $4,330Equipments 7 $1,429 $1,985 $4,837Livestock 5 $3,375 $6,751Total $3,219 $7,835 $15,917

30

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

32

Item Farm 1 Farm 2 Farm 3Number of goats 100 200 400Pounds of Milk Sold 156400 312800 625600Milk Price $35.08 $35.08 $35.08

CASH RECEIPTS Milk Sales $ 54,867 $ 109,733 $ 219,466Bonuses $ 6,262 $ 12,523 $ 25,046Goat Sales $ 1,600 $ 3,200 $ 6,400Kids, bucks, and other Livestock $ 1,328 $ 2,540 $ 4,980

Total Cash Receipts $ 64,056 $ 127,996 $ 255,893 CASH EXPENSES Bedding $ 2,500 $ 4,500 $ 8,100Chemicals $ 639 $ 735 $ 863DHIA $ 2,739 $ 4,420 $ 7,752

Ration 1 (Corn Silage) $ 17,496 $ 34,991 $ 69,982Ration 2 (Haylage) $ 20,620 $ 41,240 $ 82,481Ration 3 (Hay) $ 22,211 $ 44,422 $ 88,845

Feeding Kids and replacement $ 2,434 $ 4,869 $ 9,737Freight and trucking $ 6,008 $ 6,816 $ 8,328Gasoline, fuel and oil -

Ration 1 $ 2,823 $ 4,234 $ 5,645Ration 2 – 3 $ 1,717 $ 2,575 $ 3,433

Insurance (other than health) $ 2,533 $ 3,286 $ 7,000Interest $ 6,037 $ 9,608 $ 17,916Labor hired, pension and profit sharing $ 26,000Repairs and maintenance $ 3,313 $ 4,578 $ 8,311Taxes $ 4,516 $ 6,240 $ 10,171Utilities $ 3,000 $ 6,000 $ 12,000Veterinary fees and medicine $ 1,300 $ 2,600 $ 5,200Animal Purchased $ 1,000 $ 1,750 $ 3,250Supplies & Miscellaneous $ 3,000 $ 6,000 $ 12,000

Total Cash Expenses Ration 1 $ 59,337 $ 100,627 $ 212,257Ration 2 $ 61,355 $ 105,217 $ 222,543Ration 3 $ 62,946 $ 108,399 $ 228,907

Net Cash Flow Ration 1 $ 4,720 $ 27,370 $ 43,636Ration 2 $ 2,701 $ 22,779 $ 33,349Ration 3 $ 1,110 $ 19,597 $ 26,985

Principal $ 3,219 $ 7,835 $ 15,917

Net For Family Fiving Ration 1 $ 1,500 $ 19,535 $ 27,718Net For Family Fiving Ration 2 $ (518) $ 14,945 $ 17,432Net For Family Fiving Ration 3 $ (2,109) $ 11,763 $ 11,068

33

Per Goat Basis Farm 1 Farm 2 Farm 3Number of goats 100 200 400Pounds of Milk Sold 1564 1564 1564Milk Price $ 35.08 $ 35.08 $ 35.08

CASH RECEIPTS Milk Sales $ 549 $ 549 $ 549Bonuses $ 63 $ 63 $ 63Goat Sales $ 16 $ 16 $ 16Kids, bucks, and other Livestock $ 13 $ 13 $ 12

Total Cash Receipts $ 641 $ 640 $ 640 CASH EXPENSES Bedding $ 25 $ 23 $ 20Chemicals $ 6 $ 4 $ 2DHIA $ 27 $ 22 $ 19

Ration 1 (Corn Silage) $ 175 $ 175 $ 175Ration 2 (Haylage) $ 206 $ 206 $ 206Ration 3 (Hay) $ 222 $ 222 $ 222

Feeding Kids and replacement $ 24 $ 24 $ 24Freight and trucking $ 60 $ 34 $ 21Gasoline, fuel and oil

Ration 1 $ 28 $ 21 $ 14Ration 2 – 3 $ 17 $ 13 $ 9

Insurance (other than health) $ 25 $ 16 $ 18Interest $ 60 $ 48 $ 45Labor hired, pension and profit sharing $ 65Repairs and maintenance $ 33 $ 23 $ 21Taxes $ 45 $ 31 $ 25Utilities $ 30 $ 30 $ 30Veterinary fees and medicine $ 13 $ 13 $ 13Animal Purchased $ 10 $ 9 $ 8Supplies & Miscellaneous $ 30 $ 30 $ 30

Total Cash Expenses Ration 1 $ 593 $ 503 $ 531Ration 2 $ 614 $ 526 $ 556Ration 3 $ 629 $ 542 $ 572

Net Cash Flow Ration 1 $ 47 $ 137 $ 109Ration 2 $ 27 $ 114 $ 83Ration 3 $ 11 $ 98 $ 67

Principal $ 32 $ 39 $ 40

Net for family living ration 1 $ 15 $ 98 $ 69Net for family living ration 2 $ (5) $ 75 $ 44Net for family living ration 3 $ (21) $ 59 $ 28

34

Per CWT Basis Farm 1 Farm 2 Farm 4Number of goats 100 200 400 Pounds of Milk Sold Milk Price $ 35.08 $ 35.08 $ 35.08

CASH RECEIPTS Milk Sales $ 35.08 $ 35.08 $ 35.08Bonuses $ 4.00 $ 4.00 $ 4.00Goat Sales $ 1.02 $ 1.02 $ 1.02Kids, bucks, and other Livestock $ 0.85 $ 0.81 $ 0.80

Total Cash Receipts $ 40.96 $ 40.92 $ 40.90

CASH EXPENSES Bedding $ 1.60 $ 1.44 $ 1.29Chemicals $ 0.41 $ 0.23 $ 0.14DHIA $ 1.75 $ 1.41 $ 1.24

Ration 1 (Corn Silage) $ 11.19 $ 11.19 $ 11.19Ration 2 (Haylage) $ 13.18 $ 13.18 $ 13.18Ration 3 (Hay) $ 14.20 $ 14.20 $ 14.20

Feeding Kids and replacement $ 1.56 $ 1.56 $ 1.56Freight and trucking $ 3.84 $ 2.18 $ 1.33Gasoline, fuel and oil $ 0.00 $ 0.00 $ 0.00

Ration 1 $ 1.80 $ 1.35 $ 0.90Ration 2 – 3 $ 1.10 $ 0.82 $ 0.55

Insurance (other than health) $ 1.62 $ 1.05 $ 1.12Interest $ 3.86 $ 3.07 $ 2.86Labor hired, pension and profit sharing $ 0.00 $ 0.00 $ 4.16Repairs and maintenance $ 2.12 $ 1.46 $ 1.33Taxes $ 2.89 $ 1.99 $ 1.63Utilities $ 1.92 $ 1.92 $ 1.92Veterinary fees and medicine $ 0.83 $ 0.83 $ 0.83Animal Purchased $ 0.64 $ 0.56 $ 0.52Supplies & Miscellaneous $ 1.92 $ 1.92 $ 1.92X

Total Cash Expenses Ration 1 $ 37.94 $ 32.17 $ 33.93Ration 2 $ 39.23 $ 33.64 $ 35.57Ration 3 $ 40.25 $ 34.65 $ 36.59

Net Cash Flow Ration 1 $ 3.02 $ 8.75 $ 6.97Ration 2 $ 1.73 $ 7.28 $ 5.33Ration 3 $ 0.71 $ 6.27 $ 4.31

Principal $ 2.06 $ 2.50 $ 2.54

Net for family living ration 1 $ 0.96 $ 6.69 $ 4.92Net for family living ration 2 ( 0.33 ) $ 5.22 $ 3.27Net for family living ration 3 ( 1.35 ) $ 4.21 $ 2.26

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. Improving the milk quality and quantity production levels 2. Raising breeding stocks 3. Selling semen surplus animals to others 4. Other sources of incomes (governmental payment, dividends…) 5. Synergistic effects can be had by combining 1-4 above 6. 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. ATTRA-National Sustainable Agriculture Information Service. p32. http://www.attra.org/attra-pub/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/attra-pub/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/attra-pub/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.

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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



III Milk Composition ________________________________________________________7

1. Test Results on Protein Level (%) __________________________________________7

2. Test Results on Butterfat Level (%) ________________________________________8

IV Milk MailBox Price ______________________________________________________9

V DHIA Cost ______________________________________________________________10

VI Animals Sales __________________________________________________________10

VII Chemical Cost__________________________________________________________11

VIII Vaccination Program ____________________________________________________12

IX Kids and Yearling Feed Program __________________________________________13

1. 100 Dairy Goat Farm Operation __________________________________________13 A. Feed Quantity Used per Year ____________________________________________13 B. 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 Milk Production (lbs)

% of production

Jan 9102 8.50% Feb 5160 4.82% Mar 6203 5.80% Apr 8811 8.23% May 11209 10.47% June 10913 10.20% July 10100 9.44% Aug 9625 8.99% Sept 10367 9.69% Oct 9721 9.08% Nov 10402 9.72% Dec 5415 5.06% Total 107028 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)

Quota Protein

(lbs) Jan 380.2 Feb 295.9 430.9 Mar 385.9 430.9 Apr 460.7 430.9 May 534.4 430.9 Jun 548.8 430.9 Jul 474.6 430.9 Aug 495.8 430.9 Sept 414.8 430.9 Oct 484.7 Nov 551.1 Dec 307.7

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:

Milk

production (lbs)

% Protein % Butterfat Total Protein shipped

Quota protein (lbs) Incomes Bonuses Price per

Cwt

Jan 8.05 12,587 3.58 4.29 450.2 $ 5,177.7 $ 659.4 $ 46.37Feb 5.60 8,763 3.39 4.18 297.4 432.9 $ 3,419.7 $ 302.3 $ 42.47Mar 6.26 9,792 3.74 3.83 366.5 432.9 $ 4,214.4 $ 337.8 $ 46.49Apr 8.10 12,664 3.46 3.53 438.5 432.9 $ 4,928.0 $ 436.9 $ 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

4

% Milk Production (lbs) % Protein % ButterFat Total Protein Shipped Quota Protein (lbs) Income Bonuses Price per

Cwt Jan 8.05 12,587 3.58 4.29 450.2 $ 5,177.7 $ 659.4 $ 46.37Feb 5.60 8,763 3.39 4.18 297.4 432.9 $ 3,419.7 $ 302.3 $ 42.47Mar 6.26 9,792 3.74 3.83 366.5 432.9 $ 4,214.4 $ 337.8 $ 46.49Apr 8.10 12,664 3.46 3.53 438.5 432.9 $ 4,928.0 $ 436.9 $ 42.36May 10.07 15,755 3.20 3.70 503.5 432.9 $ 4,342.4 $ 543.6 $ 31.01June 10.72 16,761 3.09 3.54 518.5 432.9 $ 4,207.6 $ 578.3 $ 28.55July 10.07 15,742 2.98 3.42 468.6 432.9 $ 4,656.6 $ 543.1 $ 33.03Aug 9.14 14,295 2.89 3.35 413.0 432.9 $ 4,749.0 $ 493.2 $ 36.67Sept 8.43 13,179 2.93 3.53 385.7 432.9 $ 4,435.9 $ 454.7 $ 37.11Oct 7.99 12,498 3.68 3.47 459.8 $ 5,288.0 $ 661.1 $ 47.60Nov 10.12 15,835 3.37 3.41 534.0 $ 6,140.7 $ 813.3 $ 43.91Dec 5.45 8,527 3.37 3.57 287.5 $ 3,306.6 $ 437.9 $ 43.91Total 100.00 156,400 $ 54,866.6 $ 6,261.6 $ 39.96

Number of Goats 100 Goats Productive (92%) 92 Average Milk Production (lbs/day)* 5.67 Total Production per Goat (lbs) 1,700 Total Production (lbs) 156,400

% Milk Production (lbs) Stop Charge Charge per cwt Hauling Cost/Cwt Promotion Fees

Jan 8.05 12,587 $ 450 $ 62.94 $ 4.075 $ 13 Feb 5.60 8,763 $ 400 $ 43.82 $ 5.064 $ 9 Mar 6.26 9,792 $ 400 $ 48.96 $ 4.585 $ 10 Apr 8.10 12,664 $ 450 $ 63.32 $ 4.053 $ 13 May 10.07 15,755 $ 450 $ 78.78 $ 3.356 $ 16 June 10.72 16,761 $ 450 $ 83.81 $ 3.185 $ 17 July 10.07 15,742 $ 450 $ 78.71 $ 3.359 $ 16 Aug 9.14 14,295 $ 450 $ 71.47 $ 3.648 $ 14 Sept 8.43 13,179 $ 450 $ 65.89 $ 3.915 $ 13 Oct 7.99 12,498 $ 400 $ 62.49 $ 3.700 $ 12 Nov 10.12 15,835 $ 450 $ 79.18 $ 3.342 $ 16 Dec 5.45 8,527 $ 400 $ 42.63 $ 5.191 $ 9 Total 100.00 156,400 $ 5200 $ 782.00 $ 3.956 $ 156

* On 300 days lactation basis


% Milk Production (lbs) % Protein % ButterFat Total Protein Shipped Quota Protein (lbs) Income Bonuses Price per Cwt

Jan 8.05 25,175 3.58 4.29 900.5 $ 10,355.4 $ 1,318.8 $ 46.37 Feb 5.60 17,527 3.39 4.18 594.7 865.8 $ 6,839.4 $ 604.7 $ 42.47 Mar 6.26 19,584 3.74 3.83 732.9 865.8 $ 8,428.9 $ 675.7 $ 46.49 Apr 8.10 25,329 3.46 3.53 877.0 865.8 $ 9,855.9 $ 873.8 $ 42.36 May 10.07 31,511 3.20 3.70 1,007.1 865.8 $ 8,684.7 $ 1,087.1 $ 31.01 June 10.72 33,522 3.09 3.54 1,037.0 865.8 $ 8,415.2 $ 1,156.5 $ 28.55 July 10.07 31,484 2.98 3.42 937.3 865.8 $ 9,313.2 $ 1,086.2 $ 33.03 Aug 9.14 28,590 2.89 3.35 825.9 865.8 $ 9,498.0 $ 986.3 $ 36.67 Sept 8.43 26,357 2.93 3.53 771.5 865.8 $ 8,871.8 $ 909.3 $ 37.11 Oct 7.99 24,997 3.68 3.47 919.7 $ 10,576.0 $ 1,322.2 $ 47.60 Nov 10.12 31,670 3.37 3.41 1,067.9 $ 12,281.4 $ 1,626.6 $ 43.91 Dec 5.45 17,054 3.37 3.57 575.1 $ 6,613.2 $ 875.9 $ 43.91 Total 100.00 312,800 3.31 3.65 $ 109,733.1 $ 12,523.2 $ 39.96

5

Number of Goats 200Goats Productive (92%) 184Average Milk Production (lbs/day)* 5.67Total Production per goat (lbs) 1,700Total Production (lbs) 312,800

% Milk Production (lbs) Stop Charge Charge per cwt Hauling cost/cwt Promotion Fees

Jan 8.05 25,175 $ 450 $ 125.87 $ 2.288 $ 25 Feb 5.60 17,527 $ 400 $ 87.63 $ 2.782 $ 18 Mar 6.26 19,584 $ 400 $ 97.92 $ 2.542 $ 20 Apr 8.10 25,329 $ 450 $ 126.64 $ 2.277 $ 25 May 10.07 31,511 $ 450 $ 157.55 $ 1.928 $ 32 June 10.72 33,522 $ 450 $ 167.61 $ 1.842 $ 34 July 10.07 31,484 $ 450 $ 157.42 $ 1.929 $ 31 Aug 9.14 28,590 $ 450 $ 142.95 $ 2.074 $ 29 Sept 8.43 26,357 $ 450 $ 131.79 $ 2.207 $ 26 Oct 7.99 24,997 $ 400 $ 124.98 $ 2.100 $ 25 Nov 10.12 31,670 $ 450 $ 158.35 $ 1.921 $ 32 Dec 5.45 17,054 $ 400 $ 85.27 $ 2.846 $ 17 Total 100.00 312,800 $ 5,200 $ 1,564.00 $ 2.228 $ 313



% Milk Production (lbs) % Protein % ButterFat Total Protein Shipped Quota Protein (lbs) Income Bonuses Price per cwt Jan 8.05 50,350 3.58 4.29 1,800.9 $ 20,710.8 $ 2,637.5 $ 46.37 Feb 5.60 35,054 3.39 4.18 1,189.5 1,731.6 $ 13,678.8 $ 1,209.4 $ 42.47 Mar 6.26 39,169 3.74 3.83 1,465.9 1,731.6 $ 16,857.8 $ 1,351.3 $ 46.49 Apr 8.10 50,657 3.46 3.53 1,753.9 1,731.6 $ 19,711.8 $ 1,747.7 $ 42.36 May 10.07 63,022 3.20 3.70 2,014.2 1,731.6 $ 17,369.5 $ 2,174.3 $ 31.01 June 10.72 67,044 3.09 3.54 2,074.1 1,731.6 $ 16,830.4 $ 2,313.0 $ 28.55 July 10.07 62,968 2.98 3.42 1,874.5 1,731.6 $ 18,626.3 $ 2,172.4 $ 33.03 Aug 9.14 57,179 2.89 3.35 1,651.8 1,731.6 $ 18,996.0 $ 1,972.7 $ 36.67 Sept 8.43 52,715 2.93 3.53 1,542.9 1,731.6 $ 17,743.6 $ 1,818.7 $ 37.11 Oct 7.99 49,994 3.68 3.47 1,839.3 $ 21,152.0 $ 2,644.4 $ 47.60 Nov 10.12 63,341 3.37 3.41 2,135.9 $ 24,562.7 $ 3,253.2 $ 43.91 Dec 5.45 34,108 3.37 3.57 1,150.1 $ 13,226.5 $ 1,751.8 $ 43.91 Total 100.00 625,600 3.31 3.65 $ 219,466.3 $ 25,046.3 $ 39.96

% Milk Production (lbs) Stop Charge Charge per cwt Hauling cost/cwt Promotion

Fees Jan 8.05 50,350 $ 450 $ 251.75 $ 1.394 $ 50 Feb 5.60 35,054 $ 400 $ 175.27 $ 1.641 $ 35 Mar 6.26 39,169 $ 400 $ 195.84 $ 1.521 $ 39 Apr 8.10 50,657 $ 450 $ 253.29 $ 1.388 $ 51 May 10.07 63,022 $ 450 $ 315.11 $ 1.214 $ 63 June 10.72 67,044 $ 450 $ 335.22 $ 1.171 $ 67 July 10.07 62,968 $ 450 $ 314.84 $ 1.215 $ 63 Aug 9.14 57,179 $ 450 $ 285.90 $ 1.287 $ 57 Sept 8.43 52,715 $ 450 $ 263.57 $ 1.354 $ 53 Oct 7.99 49,994 $ 400 $ 249.97 $ 1.300 $ 50 Nov 10.12 63,341 $ 450 $ 316.70 $ 1.210 $ 63 Dec 5.45 34,108 $ 400 $ 170.54 $ 1.673 $ 34 Total 100.00 625,600 $ 5,200 $ 3,128.00 $ 1.364 $ 626

Number of Goats 400 Goats Productive (92%) 368 Average Milk Production (lbs/day)* 5.67 Total Production per Goat (lbs) 1,700 Total Production (lbs) 625,600


6

7

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 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average1 3.31 3.59 3.59 2.99 3.03 2.87 2.82 2.99 2.92 2.92 3.29 3.29 3.132 3.35 3.27 3.95 3.69 3.13 2.94 2.68 2.72 2.74 4.01 3.39 3.39 3.273 3.29 3.04 3.45 3.25 2.87 2.85 2.71 2.79 2.73 3.46 2.91 2.91 3.024 3.74 3.53 3.25 3.01 2.94 2.91 2.98 2.96 3.37 3.37 3.215 3.51 3.53 3.98 3.78 3.28 3.22 3.11 3.10 3.11 4.23 3.38 3.38 3.476 2.82 2.63 3.04 3.36 3.47 3.14 3.03 2.97 3.51 3.51 3.15 7 3.43 3.37 4.37 4.37 4.37 4.37 4.37 2.68 2.70 4.37 3.08 3.08 3.718 3.39 3.37 4.01 3.58 3.03 2.87 2.82 2.89 2.82 3.83 3.28 3.28 3.269 3.42 3.12 3.41 3.36 3.12 3.02 2.94 2.95 3.01 3.77 3.21

10 3.41 3.33 3.68 3.44 3.09 3.22 2.84 2.80 2.96 2.39 3.50 3.50 3.1811 3.53 3.37 4.07 3.35 3.09 3.03 2.92 2.97 3.08 4.56 3.91 3.91 3.4812 3.84 3.34 3.48 3.43 3.11 3.03 2.97 3.10 3.23 3.00 3.2513 4.25 3.57 3.03 3.61 14 3.40 4.37 4.03 3.67 3.20 2.96 2.81 2.79 2.86 4.32 3.73 3.73 3.4915 3.35 3.45 3.83 2.88 3.17 2.87 2.78 2.83 2.93 4.00 3.47 3.47 3.2516 3.44 2.77 2.80 3.04 3.19 2.95 2.83 2.99 2.82 3.57 2.93 2.93 3.0217 3.21 3.37 3.66 3.94 2.98 2.85 2.81 2.81 2.93 4.18 3.69 3.69 3.3418 3.92 3.37 4.00 3.40 3.64 3.60 3.51 3.66 3.77 3.23 3.6119 3.26 3.41 3.75 3.67 3.11 3.03 2.99 3.00 3.02 4.65 3.79 3.79 3.4520 3.62 3.42 3.36 3.53 3.19 2.96 2.86 2.89 3.00 3.84 3.39 3.39 3.2921 3.89 3.37 3.74 3.42 3.25 3.20 3.12 3.13 3.33 4.64 3.72 3.72 3.5422 3.32 3.68 3.12 3.11 3.09 2.94 2.82 2.87 4.35 3.57 3.57 3.3123 3.37 2.79 2.99 3.82 3.47 3.47 3.32 24 3.47 3.47 3.68 2.96 2.83 3.28 25 2.81 2.93 2.93 3.69 3.83 3.24

Average 3.58 3.39 3.74 3.46 3.20 3.09 2.98 2.89 2.93 3.68 3.37 3.37 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.

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Number Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average1 3.69 4.04 4.04 3.32 3.53 3.31 3.06 3.04 3.14 3.14 3.14 3.14 3.382 4.18 3.84 3.74 3.75 3.88 3.41 3.18 3.03 3.11 3.39 3.31 3.31 3.513 4.22 3.74 3.50 3.27 3.20 3.10 2.95 3.22 3.29 2.99 3.51 3.51 3.374 5.20 3.63 3.41 3.63 3.36 3.37 3.46 3.75 4.19 4.19 3.825 4.38 4.71 4.01 3.87 4.24 4.16 3.92 3.85 3.96 3.31 4.41 4.41 4.106 3.57 2.98 2.99 3.80 3.45 3.63 3.48 3.57 3.80 3.80 3.51 7 4.43 4.19 5.44 5.44 5.44 5.44 5.44 3.49 3.56 5.44 3.63 3.63 4.638 4.35 4.34 4.01 3.65 3.83 3.71 3.55 3.27 3.37 3.23 3.11 3.11 3.639 4.65 3.84 3.48 3.38 3.59 3.53 3.35 3.42 3.58 4.41 3.72

10 4.19 4.10 3.75 3.35 3.55 3.33 3.67 3.50 3.79 2.02 3.39 3.39 3.5011 4.38 4.19 4.23 3.36 3.52 3.55 3.19 3.24 3.74 3.82 2.02 2.02 3.4412 3.97 3.39 3.47 3.56 3.27 3.25 3.26 3.60 3.52 3.4813 3.64 3.07 3.35 14 4.77 5.44 4.26 3.85 3.50 3.27 3.18 3.20 3.50 3.63 3.73 3.73 3.8415 4.38 4.41 3.88 3.45 3.66 3.33 3.00 3.18 3.38 3.36 3.82 3.82 3.6416 4.38 3.25 2.59 2.87 3.59 2.90 2.86 3.09 3.40 3.11 2.99 2.99 3.1717 3.93 4.19 3.64 3.98 3.63 3.28 3.27 3.40 3.34 3.61 3.61 3.6218 4.75 4.19 4.17 3.46 4.27 4.07 4.08 4.06 4.41 3.60 4.1119 3.18 4.59 3.80 3.69 3.58 3.37 3.38 3.42 3.55 3.80 3.45 3.45 3.6020 4.25 4.29 4.35 3.67 4.06 3.71 3.37 3.24 3.52 3.25 3.61 3.61 3.7421 5.13 4.19 3.93 3.45 3.78 3.58 3.44 3.54 3.81 3.73 3.30 3.30 3.7622 4.15 3.78 1.51 3.60 3.59 3.54 3.46 3.85 3.45 3.23 3.23 3.4023 4.19 2.94 3.12 3.30 3.36 3.77 3.45 24 3.60 3.60 2.98 3.05 2.81 3.21 25 2.85 2.85 2.85 4.81 3.34

Average 4.27 4.18 3.83 3.53 3.70 3.54 3.42 3.35 3.53 3.48 3.42 3.54 3.65

IV Milk MailBox Price

Herd size Milk incomes Unit 100 200 400

Milk production Lbs 156,400 312,800 625,600 Incomes $ $ 54,866.6 $ 109,733.1 $ 219,466.3 Bonus $ $ 6,261.6 $ 12,523.2 $ 25,046.3

$ $ 61,128.2 $ 122,256.3 $ 244,512.6 $/Head $ 611.3 $ 611.3 $ 611.3 Total Incomes $/cwt $ 39.1 $ 39.1 $ 39.1

Herd size Hauling Unit

100 200 400 Stop Charge $ $ 5,200 $ 5,200 $ 5,200 Charge per cwt $ $ 782 $ 1,564 $ 3,128 Milk promotion fee $ $ 156 $ 313 $ 469

$ $ 6,138 $ 7,077 $ 8,797 $/Head $ 61.38 $ 35.38 $ 21.99 Total Hauling cost $/cwt $ 3.92 $ 2.26 $ 1.41

Herd size Milk Box Unit

100 200 400 Milk Production Lbs 156,400 312,800 625,600 Incomes (Sales + Bonus) $ $ 61,128.2 $ 122,256.3 $ 244,512.6 Hauling $ $ 6,138 $ 7,077 $ 8,797 Total $ $ 54,989.8 $ 115,179.5 $2 35,715.4 $/Head $ 549.9 $ 575.9 $ 589.3 $/cwt $ 35.2 $ 36.8 $ 37.7

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

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V DHIA Cost

Monthly Costs

Herd size 100 200 400 Meters 8 16 24 Total Standard cost (MW) $ 188.24 $ 288.32 $ 486.00

MW + SCC $ 208.24 $ 328.32 $ 566.00 MW/BF/Prot $ 213.24 $ 338.32 $ 586.00 MW/BF/Prot/SCC $ 228.24 $ 368.32 $ 646.00 MW/BF/Prot/SCC/MUN $ 253.24 $ 418.32 $ 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 Animals Sales

Market Price Kids (1week old) $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12Cull animals (does) $ 48 $ 52 $ 56 $ 60 $ 64 $ 68 $ 72 $ 76 $ 80Bucks $ 80 $ 85 $ 90 $ 95 $ 100 $ 105 $ 110 $ 115 $ 120 Income (400 hs*) $ 7,680 $ 8,605 $ 9,530 $ 10,455 $ 11,380 $ 12,305 $ 13,230 $ 14,155 $ 15,080Income (200 hs*) $ 3,880 $ 4,345 $ 4,810 $ 5,275 $ 5,740 $ 6,205 $ 6,670 $ 7,135 $ 7,600Income (100 hs*) $ 1,904 $ 2,135 $ 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.

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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.

100 200 400 Products Concentration Price

per oz Water system (Gal) Cost Water

system (Gal) Cost Water system (Gal) Cost

Alkaline 0.25% $ 0.047 20 $ 219.58 23 $ 252.52 27 $ 296.44 Acid wash 0.15% $ 0.116 20 $ 325.17 23 $ 373.95 27 $ 438.98 Sanitizer 0.18% $ 0.028 20 $ 94.19 23 $ 108.32 27 $ 127.15 Cost $ 638.94 $ 734.78 $ 862.57

Example of how we have calculated the quantity of water used. An example calculation for a double 6 parlor with 12 units.

Item Gallons of Wash Liters Solution Required

Pipeline, 80 feet, 2” 80’ @ 7’/gal = 11.4 gal 11.4/2 {50%} = 5.7 21.7 Receiver, 15 gal 15/2 {50%} = 7.5 28.5 Trap, 3 gal 3/2 {50%} = 1.5 5.7 Discharge pipe, 50 feet, 1-1/2” 50’ @ 13’/gal = 3.9 gal 3.9 {100%} = 4.0 15.2 Washpipe, 50 feet, 1.5” 50’ @ 13’/gal=3.9 gal 3.9/2 {50%} = 2 7.5 Sub total 20.7 78.6 Add 10% (sink) 2.1 7.9 Total 22.8 86.5

Calculation made by Daniel Scruton at the Vermont Department of Agriculture and Debbie Miller (Vermont Butter and Cheese Company)

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VIII Vaccination Program

Disease Age Doses Price per animalEnterotoxemia (overeating disease) 1 $ 0.50

Tetanus

2-3 months old (weaning period)

Enterotoxemia (overeating disease) 1 $ 0.50

Tetanus 4-6 weeks later

Rabies After weaning 1 $ 2.00

Kids

Foot rot 2 $ 2.00

Enterotoxemia (overeating disease) 1 $ 0.50

Tetanus Deworming 3 $ 4.50 Foot rot 2 $ 2.00 Rabies 1 $ 2.00

Goat

Mastitis $ 10.00

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IX Kids and Yearling Feed Program

1. 100 Dairy Goat Farm Operation

A. Feed Quantity Used per Year

Animal Kids until 1 week Replacement kids Year

Feed Quantity per day (Oz) Quantity per Year

(lbs) Quantity per day Quantity per

Year (lbs) Quantity (US

Ton)

Milk Replacer 40.00 87 246 0.37 Hay 14,393 7.20 Concentrate 5,192 2.60

B. Yearly Cost for Raising Kids and Yearling

100

Feed Price/Ton Qty (Ton) Expenses

(USD) Milk replacer $3,170.00 0.37 $1,161.67 Hay $150.00 7.20 $1,079.48 Concentrate $74.43 2.60 $193.22 Total cost $2,434.37






Year (lbs) Quantity (ton)


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B. Yearly Cost for Raising Kids and Yearlings

200 Feed Price/Ton Quantity

(US Ton) Cost ($)

Milk replacer $3,170.00 0.73 $2,323.35 Hay $150.00 14.39 $2,158.95 Concentrate $74.43 5.19 $386.44 Total cost $4,868.74






Year (lbs) Quantity (US Ton)


B. Yearly Cost for Raising Kids and Yearlings

400 Feed Price/Ton Quantity

(US Ton) Cost ($)

Milk replacer $3,170.00 1.47 $4,646.70 Hay $150.00 28.79 $4,317.90 Concentrate $74.43 10.38 $772.88 Total cost $9,737.48

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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 ssume here, a 2 hours every 2 weeks spending to clean the barn and a 50 hours per year for other a

use. onsequently, for a farm that uC

farses corn silage tractor runs during 467 hours per year whereas a

m which uses other feed

s per year

he cost of lubrification is around 15% of the total cost of fuel (for only the cost coming from the tor).

We assume that the ann al cost is $368 (in ng filt re chang very other oil change).

2 4

s 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)

onsumption per year = 1.75 * 467 CConsumption per year = 817/25 gallon Price per year 2006 = 300 cts/gallon Cost fuel tractor per year = $ 2,455 Ttrac

u cludi ers a ed e

100 00 00 Ration Corn Silage (1) $ 2,823 $ 4,234 $ 5,645

Ration Hay and Haylage (2 and3) $ 1,717 $ 2,575 $ 3,433

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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 Unit Herd size Goats Head 100 200 400 Bucks Head 10 20 40 Doelings Head 25 50 75 Kids Head 156 312 625 Housing Requirements Herd size Goat Unit 100 200 400 Animals Added Head 120 240 420 Air per Goat Cubic meter 7 7 7 Space per Goat Square foot 20 20 20 Feeder per Goat Meter 0.33 0.33 0.33 Alley Way Meter 2 2 2 Housing Requirements Herd size Doelings Unit 100 200 400 Space per Doeling Square foot 10.7 10.7 10.7 Feeder per Doeling Meter 0.25 0.25 0.25 Alley Way Meter 2 2 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.

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Housing needs Herd size Goats Head 100 200 400 Air Cubic meter 700 1,400 2,800 Space Square foot 2,400 4,800 7,200 Feeder Meter 17 33 66 Space for Feeder or Alley Way Square Foot 355 710 1,420 Total Space Square Foot 2,755 5,510 8,620 Square Meter 256 512 801 Bucks Head 10 20 40 Air Cubic meter 50 100 200 Feeder or Alley Way Meter 1 1 1 Space Square Foot 300 600 1,200 Square Meter 28 56 112 Doelings Head 25 50 100 Air Cubic meter 175 350 700 Space Square Foot 323 646 1,291 Feeder Meter 0.25 0.25 0.25 Space for feeder Square Foot 67 135 269 Total Space Square Foot 390 780 1,560 Square Meter 36 73 145 Kids Head 165 325 625 Space Square foot 468 936 1,875 Feeder or alley way Meter 1 1 1 Total Space Square Foot 468 936 1,875 Square Meter 43 87 174 Square Foot 3,913 7,826 13,256

Total Surface Square Meter 364 727 1,232

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2. Buildings Size and Budget

Buildings Unit Herd size Main Barn (Goats) 100 200 400

Length Feet 70 90 75 & 90Width Feet 40 60 40 & 60Height Feet 12 12 12

Milk House Length Feet 30 36 35Width Feet 14 14 20 Cost (Main Barn + Milk House) Materials $ $48,000 $67,000 $97,000Labor $ $34,000 $38,000 $65,000Total $ $82,000 $105,000 $162,000 $/Goat $820 $525 $405

Doelings and kids Length Feet 40 50 70Width Feet 26 36 50Height Feet 12 12 12Cost (Doelings and Kids Barn) Materials $ $10,500 $16,500 $38,500Labor $ $7,900 $12,500 $29,000Total $ $18,400 $29,000 $67,500 $/Goat $184 $145 $169

Bucks Length Feet 20 24 40Width Feet 12 20 30Height Feet 12 12 12Cost (Doelings and Kids Barn) Materials $ $3,600 $7,700 $11,000Labor $ $2,900 $5,800 $8,300Total $ $6,500 $13,500 $19,300 $/Goat $65 $68 $48

Herd size Investments Unit 100 200 400

Goat Barn + Milk House $ $82,000 $105,000 $162,000Doelings + Kids $ $18,400 $29,000 $67,500

Bucks $ $6,500 $13,500 $19,300$ $106,900 $147,500 $248,800

$/Goat $1,069 $738 $622TOTAL INVESTMENTS $/Square Foot $ 23.76 $ 18.02 $18.03

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Commercial Dairy Goat Farm in Vermont Focusing on the Numbers

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