1. Small-Scale Livestock ProductionThis program was funded by the USDA NationalInstitute for Food and Agriculture (NIFA) BeginningFarmer and Rancher Development Program (BFRDP)under award #2009-49400-05871. 2. There are uniqueproduction andmarketingopportunitiesavailable tosmaller-scalesheep and goatproducers;however, beforeyou get started,you need toconsider… 3. New marketing opportunitiesEnvironmental stewardshipProduction practicesSafe practicesBusiness licensingZoning restrictions 4. New marketing opportunities • Leveraging your herd management • Overview of certification programs • Evaluating program cost & benefits 5. Certification and Marketing• Consumers are interested in how livestock areraised, handled & processed• Certification may allow you to secure apremium for product or expand market reach– Such as specialty food stores and restaurants thatrequire that their animal products be sourcedfrom humanely raised animals• How you manage your animals (yourstewardship practices) can influence yourmarketing opportunities 6. Animal Welfare CertificationPrograms AnimalAmerican CertifiedHFACUSDAFood Welfare Humane Naturally Certified Organic AllianceGrownApproved CertifiedHumane• Distinguish livestock products as comingfrom humanely treated animals• Certified production systems often are moreexpensive than non-certified• Be sure to keep in mind the production costsand marketing benefits of following acertification program 7. Possible Program Specificationsfor Herd Management Indoor air quality & Minimum bedded Outdoor access ammonia levels space; floor space Castration, tail docking onTransport time for sheep, dehorning, ear slaughtermarking 8. Evaluating Certification Programs Goals • Make sure program goals align with yours • Understand the certification process & animalsCertificationcoveredFees • Understand the program’s fee structure • Calculate the time required to achieve andTime Commitmentmaintain certification • Estimate how your production costs mayProduction Costs change under certification 9. Evaluating Certification Benefits Ability to connectAccess to new Possibility ofwith customersmarkets that seek charging higherbased on theircertified products prices for products valuesAccess to marketing Certifier may help materials and support grower improve safefrom certifyingproduction andorganization handling techniques 10. Evaluating Certification CostsMore pasture area may be required for each animal enrolled in thecertification program You may need more landChanges to animal health care You may need to remove fromyour program sick animals that you vaccinate or medically treatChanges to animal feeding You may need to use feed fromspecific sources or follow certain ingredient guidelinesChanges to animal housing You may need to build additionalfacilities to allow more space per animalMore detailed record-keeping on animal health and raising Youmay need to allow more time or hire someone to do this 11. Linking Production & Marketing Decisions• Choose a breed that is appropriate for the marketsyou will serve (meat, fleece, milk)• If you are producing meat animals, do you have aslaughter and processing facility that will workwith your level of production and cuts you desire?• Know who will buy your product before youproduce it• Take a course in Good Agricultural Practices (GAPs)– To understand how to prevent or reduce contamination of yourproducts throughout production, processing and sales– Obtaining GAPs certification is also a good marketing strategy 12. Environmental stewardship To be a good neighbor and food producer: • Manage manure properly • Monitor storm water runoff • Dispose of mortalities safely 13. Good Stewardship Leads to Better Business ManagementMinimizing: Using best Leads to a:•Animal and management •Cleaner manure odors practices to: production•Dust •Dispose of operation•Insects & dead animals•Healthier herd predators•Mitigate runoff •Good neighborrelationships 14. Manage Manure ProperlyControl unpleasant odors and dustKnow the nutrient content of your manure, applybased on nutrient/fertilizer value, and keep recordsSpread manure away from wells, springs, andwatercoursesWhen possible, till in fall-applied manureKeep piles of manure, spent bedding and spoiled feedaway from watercourses 15. Monitor Storm Water RunoffConduct annual tests for bacteria and nitrates in wellwaterLocate livestock operations away from wellheads;protect wellheads in pastures (consult local/statewellhead protection laws)Use buffers and setbacks to protect surface watersfrom direct contact with animal waste and processwaste waterDivert clean water (run-on) around production andwaste storage areas using berms, ditches grassyswales, roof gutters 16. Dispose of Dead Animals SafelyAbide by state/local lawsRender within 48 hours, where service is available (deadanimals used to create a new, usable product)Compost in pile or bin, at high temperature (130o-150oF)Bury on farm, at least 300 feet away from a watercourseand 3-ft deep, above the wet season high watertableBury/dispose at a licensed landfill 17. Production practices • Maintaining a healthy herd • Managing sick animals 18. Managing for Healthy AnimalsIncludes Providing…• Housing that is clean, ventilated and predator proof• Adequate enclosure and fence height, especially forgoats• Access to clean water at all times• Nutritionally complete food, including forage, salt &minerals• Appropriate parasite control• Protection from extreme temperatures, includingwater heaters for winter, and shade during hotmonths 19. As a Good Herd Manager, You Should:Observe your animals and learn what behaviors are normal, so yourecognize unusual behaviors indicating a possible health issueCheck your animals regularly-twice daily is best for monitoringhealth and behaviorBecome familiar with common small ruminant health issues anddiseasesFor the breed you are raising, know the lambing/kidding age andyears of reproductive capability 20. As a Good Herd Manager, You Should: Meet the nutritional needs of your animals at their current state (during gestation, lactation, maintenance, etc.) Provide some mental stimulation and an enriching environment for your animals Keep breeding records, as well as animal health records Have a plan for surplus animals (beyond your breeding, meat or milk animal needs since the extra feed is a cost to you) 21. Taking Care of Sick AnimalsWork with a local veterinarian with small ruminant experience (if youlive in a remote area, you may need to learn basic care practices)Have a herd health plan & vaccination scheduleDevelop a quarantine procedure for sick animals; watch for newsalerts from your state veterinarian’s officeIn case of disease outbreak, have a plan for cleaning and disinfectingvehicles & equipment, and protecting your employeesDevelop a disposal plan for dead animalsKeep detailed records of your animals’ health 22. Safe practices • Worker safety • Good Agricultural Practices (GAPs) • Milk and meat products 23. Safe Handling: Worker Safety• Sheep and goats can carry organisms that maycause infection and disease in humansWhen handling animals or their wastes, wear protective clothing, wash your hands afterward, & treat all cuts and abrasions immediately• Both species can jump, bite, kick or run intotheir handlers, causing injury Learn proper handling techniques and never turnyour back on animals in a pen Be aware of potential injuries from contact withgates, chutes, wire pens, and electrical sockets 24. Safe Handling: Good AgriculturalPractices (GAPs)• On mixed crop/livestock farms, keep livestock outof food production and handling areas to preventcontamination of food products• Ensure that animal wastes do not directly orindirectly contaminate drinking or irrigation water• If you produce compost from your livestockmanure:1. keep records of composting dates and production process,2. separate raw and finished compost, and3. store compost on high ground, away from fields and water sources to prevent run-on 25. Safe Handling on Farms with Crop& Livestock: GAPs• Wash and sanitize vehicles and equipmentused for handling or transporting livestockbefore transporting food for humanconsumption• Make sure workers change clothes and washtheir hands after handling livestock andbefore handling food crops 26. Safe Handling of Milk and MilkProducts• Refrigeration is most important factor inmaintaining safety of milk (Grade A milk mustbe maintained at 45 °F or below), as well asbutter, cream, whipped topping, sourcream, yogurt, cheeses, etc.• Temperatures must be maintained throughdistribution, delivery and storage• Note that safe refrigerator storage times differdepending on the product, and only butter, icecream and pasteurized fresh whole or skimmedmilk may be frozen 27. Safe Handling of Meats• Remember to have quality control over yourproduct from harvest throughprocessing, storage and distribution• How you handle the product affects:– how safe it is for your consumers– your product’s quality– your product’s shelf life 28. Business licensingWhich licenses you needdepends on:– Whether you are selling milkor meat– Where you plan to sell yourproduct 29. Getting Permission to do Business• County, municipal & Homeowners Association orNeighborhood/Unincorporated Community Covenants• Business registration (typically from your state’sSecretary of State, although some cities & counties alsorequire business registration)• IRS Employer Identification Number (EIN, if you haveemployees)• State taxes (sales tax, income tax, workers’compensation, unemployment insurance)• City/County sales tax license• Business licenses (depending on your sales outlet andproducts(s) offered for sale)To check on your state’s tax and licensing requirements:http://www.sba.gov/content/learn-about-your-state-and-local-tax-obligations 30. Licensing for Milk Sales• Federal regulations define milk and milkproducts by their ingredients. – This is important for grading and labeling, and for knowing which license you need for your business.• For goat and sheep milk production andsales, all states have different licensingrequirements and permit costs.• In many states, raw milk sales are illegal and allmilk & milk products sold must be pasteurized. – Contact your state department of public health to learn about regulations in your state – Educate yourself on the food safety issues surrounding raw milk production 31. Regulations for Pasteurized MilkGrading • Use FDA/USDA guidelines• All bottles, containers & packages with milk or milkLabelingproducts must be labeled, indicating the common nameof the hooved animal. See FDA guidelines.Refrigerating • Store between 33°F and 41°F• Keep clean and sanitaryTransporting• Maintain refrigeration 32. Licensing for Retail & WholesaleMeat SalesTo sell packaged • Animals must slaughtered & processedmeat direct to the under continuous inspection (either consumerFederal or State inspection systems)1To sell packaged • Must use Federal or State inspected facilitymeat to retail • Required: Labeling – i.e., Net Weight buyers, wholesale using Standard Weights and Measures2 or farmers’ market• Optional: Grading1- Only Federally inspected and certain state facilities are approved for out of-state sales.2- Your processor can help guide you through the packaging and labeling process. 33. Custom Exemption to USDA Slaughter and Processing Requirements, for Direct Sales Sold before Labeledslaughter to new NOT FOR SALE owner AND OR Processed forProcessed for non- household use AND paying guests 34. One More Thing About Meat andMilk Sales…Many farmers’ marketsrequire vendors to carrytheir own liabilityinsurance policy forproduct salesFor more info on licensing and regulations,check with your local Extension officeor state Department of Agriculture 35. Zoning restrictions • Zoning is a restriction on the way land can be used • Zoning regulations may include where you can (or can’t) raise animals 36. County & Municipal ZoningRegulations• Present your plans early―your local planningand zoning board may have ideas to makeyour business more viable or to protect yourresource base• Once you are in operation, remember toconsult local officials before making anychanges to your business (to structures or toproducts you sell) 37. County & Municipal Zoning Regulations• Larger livestock (including sheep andgoats) typically prohibited in non-agriculturally zoned county & Always verify themunicipal districtstypes & numbers• Your Homeowners’ Association may of animalsalso have restrictions on livestocklegally allowed• Many counties & municipalities allowon your propertyprivate ownership/production of abefore startingsmall number of sheep and goats inyour businessagricultural districts.However, animal slaughter may beprohibited. 38. Regulations in districts where commercial livestock production is permitted mayinclude:Size and type of Commercial or animalagriculturalPermit fee often structures;permit requiredlocation on your requirementspropertyLimited number of animalsLimited or noallowed; Standards for allowablepasture odor, noise, dustslaughter on specificationspremises 39. Building a Profitable Business Involves Building Building Building BusinessCustomersCommunity Processes through throughthroughGood resource Research & Marketing & animal compliance stewardshipwithregulationsGoodandSafe handlingcertificationsneighborpracticesrelationsthat lead to a sustainable business! 40. Questions? 41. Acknowledgements• Blake Angelo, Colorado State University Extension, UrbanAgriculture• Thomas Bass, Montana State University Extension, LivestockEnvironment• Dr. Marisa Bunning, CSU Food Science and Human Nutrition• Emily Lockard, CSU Extension, Livestock• Dea Sloan, CSU Agricultural and Resource Economics• Martha Sullins, CSU Extension, Agriculture and BusinessManagement• Dr. Dawn Thilmany, CSU Agricultural and Resource Economics• Heather Watts, CSU Agricultural and Resource Economics• Wendy White, Colorado Department of Agriculture• David Weiss, CSU Agricultural and Resource Economics 42. Photo Credits – flickr.comAll photos used under the Creative Commons LicenseA Roger Davies BryanAlexanderynskjen4670542941 3348954673423389418Kkirugi4923613664