Meat vs Dairy Goats
analagoatcompany.com

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Mary Michele can stay down on the farm and make an inside-the-loop income from the sale of raw dairy products because they have been prohibited for the past five generations. www.realmilk.com

Assumptions
25 does
1 buck
95% Conception
180% Kidding
5 Forage acres
15% Doe culls
5% Doe mortality
10% Kid mortality
25% breeding bucks
75% breeding stock does
43 Kids born
38 Kids weaned
13 Kids sold for meat
14 Doe Kids sold for breeding
3 Buck Kids sold for breeding
2 Buck Kids sold as Show Wethers
5 Kids for replacement does

1 Replacement buck

 

 

 

 

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Kit Kat & Krew

Revenue:

Unit

Quantity

Unit Price

Total

Avg$/Doe

Market animals for meat

Head

13

$112

$1456

$58

Cull bucks

Head

1

$150

$150

$6

Cull does

Head

4

$125

$500

$20

Breeding bucks sold

Head

3

$200

$600

$24

Breeding does sold

Head

14

$100

$1,400

$56

Show Wethers

Head

2

$100

$200

$8

Meat Revenue

$4,306

$172

Operating Costs

Head

25

$2,450

$98

Meat Goat Net Income

$1,856

$74

Market animals for meat

Head

13

$80 $1,040

$42

Cull bucks

Head

1

$150 $150

$6

Cull does

Head

4

$50 $200

$8

Breeding bucks sold

Head

3

$150 $450

$18

Breeding does sold

Head

14

$125 $1,750

$70

Dairy Calves

Head

3

$150

$450

$150

 Grade 'A' Raw Milk

Gallon

6,000

$10.00

$60,000

$2,400

Dairy Revenue

$64,040

$2,562

Operating Costs

Head

25

$22,925

$917

Dairy Goat Net Income

$41,115

$1,645

 

The adult dairy nanny is going to cost $801 a year in capital (cost of capital 3.75% x $400 purchase price over 60 months = $8/month or $96/yr), feed (3 pounds a day x 10 cents/lb = $12/mth or $144/yr), medicine/vet (CDT, Worming, 'Today', 'Tomorrow', balm, teat spray, etc). Our Vet bills seem to stay north of $250 a month for the seven years we been doing this with an average herd size of 100. Lets make it $2.50 a month for med/vet. Abundio and his wife Carmela milk and feed in the morning for $21 and Carmela milks only in the evening for $14. Tommy our neighbor has a ten stall milking parlor and pipeline system. He milks 70 goats in three hours single handed. Using $35/day x 30days divided by 50 nannies gives us $21/mth labor just for the milking operation. We currently only milk half that number but Abundio and Carmela milk four days a week and we share the pain on Friday, Sunday and Monday. Our labor cost doubles to $42/mth and if we pay ourselves $6/hour we can uncover an infinity of chores to drive us out-of-business sooner. Langston University and an Arkansas study came up with $1.78/gal cost of production. If I use $21 for monthly labor my per gallon cost is $537/300gals = $1.79. $663/300gals = $2.21. What is really scary is divide your cost of living (goats, people, mortgage, utilities, truck payment) by the number of milking nannies. Our breakeven experience: $120,000/yr/50 nannies/300gal/each = $4.80. Again we currently milk only 25 nannies, making our fully loaded per gallon cost $9.60.

 Each adult doe or nanny is going to cost us at least $537 and most probably $663/year. You can sell the raw milk as a grade 'B' dairy to "Lone Star Cheese" for $3/gal. Raw milk that Lone Star will sell as Ultra-Pasteurized fluid milk in the store, requires a Grade 'A' license and brings $3.40/gal. Raw goat's milk sold for 'Pet Use Only" to dog, horse, exotic animal breeders and adventurous health food consumers goes for $5/gal. Because we live in Texas we can get a grade 'A' raw dairy license and legally sell raw fluid milk to the consumer only on our farm - not in the store or off premises. White Egret www.whiteegretfarm.com in Austin, TX, got on www.realmilk.com before us and sell raw goat's milk for $3.75/quart and $7.50/half gallon, which equates to $15/gal. Before we had our grade 'A' raw license we sold to the brave and adventurous for $8/gal. Now after $2,000 (an annual charge) we sell fluid on the farm for $10 and frozen in town for $12/gal. The following chart illustrates operation expense and revenue for 25 Saanen nannies producing 300 gallons each.  

Gross Raw Milk Sales

Unit

Quantity
300/gal/ea

Price Gross Revenue

$$/Doe

Net $$/Doe

Raw Milk @ $3.40/gal

25 Does

7,500

$3.40

$25,500

$1,020

$357

Raw Milk @ $5.00/gal

25 Does

7,500

$5.00 $37,500

$1,500

$837

Raw Milk @ $10.00/gal

25 Does

7,500

$10.00 $75,000

$3,000

$2,337

Raw Milk @ $15.00/gal

25 Does

7,500

$15.00. $112,500

$4,500

$3,837

Fifty Saanen Nannies

Raw Milk @ $10.00/gal

50 Does

15,000

$10.00 $150,000

$3,000

$2,337