Wool Production
Wool was the first commodity to be traded internationally and is the product the public most commonly associates with sheep. However, the importance of wool (as a product) relative to meat has declined dramatically. In the early 1900's, the majority of income from a sheep enterprise was from the sale of wool. Today, it is the other way around. While wool is still important on many sheep farms, lambs almost always contribute the majority of income to the sheep farm. Fine wool brings the most money in the commodity market.
Selling wool in the commercial wool market has limited profit potential for most producers, but the niche marketing of wool can pay big dividends. For example, while wool sold commercially may bring only 50 cents per pound, fleeces sold to hand spinners could bring as much as $15-$20 per pound. Many producers have their wool processed into yarn, roving, blankets, or crafts and market value-added products. There are several cooperative ventures in the US that will add value to a producer's clip.
Fleeces sold to hand spinners need to be of high quality. Feeding, housing, health care, handling, and harvesting are all critical to the production of high quality wool. It goes without saying that fleeces should be skirted. Skirting is when the undesirable parts of the fleece are removed: belly wool, top knots, leg clippings, tags, stained wool, cotted wool, and short wool.
Some producers put covers on their sheep to prevent the fleeces from getting dirty and guard against the sun's ultraviolet rays, which may cause fading at the tips of colored fleeces. Since wool grows more under covers, covers have to be changed repeatedly as the fleece grows.
The marketing of fine wools is also becoming more of a niche market, as farmers and ranchers are finding ways to add value to their wool clips.
Hair Sheep
The declining value of wool relative to meat, along with the decreasing number of sheep shearers, has contributed to the expansion of hair sheep, not only in the United States, but other countries as well. It is estimated that approximately 10 percent of the world's sheep population is hair sheep. According to a 2011 NAHMS study, 21.5 percent of sheep operations in the U.S. raised hair sheep breeds. Over 90 percent of the lambs that are marketed through the sale barn in San Angelo, Texas are now hair sheep.
Hair sheep naturally shed their coats (mixtures of hair and wool fibers) and typically do not require shearing, crutching, or tail docking. Hair sheep (of tropical origin) tend to be more resistant to internal parasites (gastro-intestinal worms) and other pests than wooled sheep. In addition, hair sheep breeds possess many desirable reproductive characteristics, such as early puberty, out-of-season breeding, and prolificacy.
Hair sheep are usually promoted as an "easy-care" alternative to wooled sheep and traditional high-cost production systems. Hair sheep ewes are often lambed on pasture. Lambs are commonly grass-finished. Hair sheep lambs are usually better suited to the ethnic markets than the commodity markets, which tend to prefer heavy with more finish (fat cover). At the same time, hair sheep will also work in more intensive production systems.
Because hair sheep production continues to grow, there may be a good market for hair sheep breeding stock. Many hair sheep producers sell their ewe lambs as breeding stock and their male lambs for meat.
Lamb Feeding
Commercial lamb feeding is a traditional sheep enterprise in the US and is becoming more popular in other countries. In some parts of the US, lamb feeding is a seasonal enterprise, occurring primarily in the fall and winter, after pastures have stopped growing and crop residues are available for grazing. In other areas (e.g. Texas, Colorado, and the Corn Belt), lamb feed lots operate year-round. Many farmers feed their own lambs out.
In a lamb feeding enterprise, feeder lambs (50 to 100 lbs.) are purchased and fed to finish weights of 100 lbs. or more. Besides the purchase price of the lambs, the major cost of finishing lambs is obviously feed. Lambs can be finished on a variety of diets: complete pelleted rations, whole grain rations, or high-forage diets. Cheap gains can often be put on lambs on pasture or crop aftermaths. Lambs can also be finished on various by-products feeds. Distiller's grains and other co-products have been used to feed out lambs.
Meat sheep producers sell either slaughter lambs or feeder lambs. Slaughter lambs are usually purchased for immediate slaughter. In the United States, the average slaughter weight for a lamb processed in a federally-inspected plant is about 136 lbs. Lambs sold into ethnic markets tend to be much lighter, usually less than 100 lbs. and often less than 80 lbs. Increasingly, there is a market for slaughter lambs of any weight.
Feeder lambs are lambs that are usually fed or grazed to heavier weights before being harvested. Feeder lambs vary in weight, usually from 50 to 100 lbs., with the demand usually being the highest for 60 to 90 lb. lambs. Increasingly, lamb feeders are having to compete with the ethnic markets for these light weight lambs.
In a meat sheep enterprise, the primary factors which determine profitability are percent lamb crop, lamb growth rates, and market prices. Unless forage resources are abundant or feed costs are very low, it is difficult to make a profit from a ewe that weans only one lamb, especially in areas where predation is high.
Sheep are multi-purpose animals, raised for their meat, milk, wool, and skins. While they have been used to control unwanted vegetation for centuries, grazing as a fee-based service is a relatively new opportunity for US sheep producers. Sheep are also a popular research model and some producers have developed businesses supplying animals or other products (e.g. blood) to bio-science.
One of the first and most important decisions a shepherd must make is to decide which aspect(s) of sheep production to focus on. While most sheep breeds are multi-purpose, most are best suited to either meat, milk, or wool production -- seldom all three. Production and marketing practices usually vary according to the purpose of the flock.