Sheep Farming in the past and at present: An economic alternative for grassland farmers in Austria?

• Authors: Josef Hambrush

Abstracts

EN

The present study was unable to definitively clarify whether the production of sheep milk or lamb meat is profitable or not. But, as is the case for other types of agricultural activities, the study showed that profitability in these branches depends primarily on the economic framework (e.g. price of milk, costs), production conditions and production levels. Therefore, a variation in the results should not seem surprising. Importantly, above-average milk yields and numbers of reared lambs were both proven to be crucial factors for achieving a satisfying economic performance. For example, the farm type LM-2.3 (2.3 born lambs per ewe per year, 20% sold breeding lambs) obtained an agricultural income of more than 11,700 Euros. Conversely, with only 2 born lambs per ewe per year and 10% sold breeding lambs the agricultural income of the same farm decreased by almost 5,300 Euros. In addition, a similar pattern emerged for milk sheep farming based on the calculations performed for the study. Thus, the results indicate that even small differences in gross margins have a huge effect on agricultural income within these farming branches. Despite the variation in results, several general tendencies can be unequivocally derived from the calculations. Above all, the selected farm activity (meat or milk) determines the economic potential. Milk sheep farming exhibits a high productivity of land far exceeding that of farms which focus on lamb meat production. Hence, sheep milk production can be recommended to farmers who operate their farms full time, have a relative shortage of land and have enough labour resources. Entering into the production of sheep milk could also be an interesting option for cow milk producers confronted with larger investments over the next few years. On the other hand, the production of sheep milk is very labour intensive and the economic figures per labour unit do not always yield a better performance than other agricultural activities. Lamb meat production is quite different to sheep milk production: The demand for labour is much lower, but so is productivity per ha grassland. Generally speaking, this farm activity is less intensive and could represent an interesting alternative for part-time farms. The effects of further processing the raw products and conducting direct marketing activities were not analysed separately. However, according to the interviewed farmers, direct marketing could enormously increase the profitability of these farms, including profitability per labour unit. In this case, many considerations would need to be taken into account (e.g. additional labour and investment, as well as new market opportunities). The results of the study are based on a number of assumptions and hence only general conclusions can be drawn, to mean conclusions related to individual farms would necessitate knowing and applying the actual farm-specific data. In general, however, lower investment costs for buildings or due to already depreciated but still used assets would certainly contribute to a more positive farm income. Furthermore, alternative marketing strategies (e.g. direct marketing), farm management (e.g. organic farming) or methods of production (e.g. feeding strategies like the use of feed concentrate) could all have a significant impact on agricultural income. Importantly, the productivity of both activities – sheep milk production and lamb meat production – is strongly influenced by the gross margin per ewe. Even minor deviations in this key figure can result in huge differences in farm income. Thus, continuous monitoring and improvement of the farm-specific production situation is indispensable for the future success of sheep farming.

• Publisher: Wydawnictwo Adam Marszałek
• Journal: Krakowskie Studia Małopolskie
• Year: 2011
• Volume: 16
• Pages: 266-285

Dates

published

2011

Contributors

author

Josef Hambrush

References

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Identifiers

DOI

10.15804/ksm201147

Biblioteka Nauki

2037593