Economic impacts of lamb rearing systems on sheep milking profitability

Abstract

In New Zealand, increasing attention is being given to sheep dairying as a potentially profitable land use option, however, there is very little published New Zealand-centric research into sheep dairy system economics, and farm management practices to inform farmer practice and investor decision making. This research originated from the author’s need to compare lamb rearing options to identify the most profitable system for their high fecundity East Friesian-cross ewe flock commencing milking in Canterbury in Spring 2016, however findings have direct applicability New Zealand wide. Dairy sheep provide three potential income streams; milk, meat from cull ewes, wool and surplus lambs. International studies e.g. (McCusick, Thomas and Berger, 2001) indicate that ewe fecundity and lamb rearing success have a significant effect on both commercial milk production and lamb growth potential and therefore the profitability of the sheep dairy farm enterprise but there is a dearth of available information relating to lamb rearing management and its weaning and lamb rearing system economics in the New Zealand context. A desktop analysis was conducted of three different lamb rearing treatments to determine their impact on whole system economics. Key outputs measured were net farm profitability, milk production available for sale and sheep numbers. Given the parameters used, a mixed milking and lamb rearing model was the most profitable, however system uptake choices can reflect farmer’s attitudes to a range of considerations - animal welfare, farm management expertise and experience, access to labour and infrastructural options as well as economic considerations. As a result, a range of issues impacting on systems choices have also been canvassed.