Detailed Cost and Income Calculation for 100 Leased Ewes from IntelliFarm to pay for the Lamb & Feed Block Factory
Introduction
The goal of the Feed Block Factory and our urease process is to convert low-value material into high-value feed at a fraction of the cost. The advantage for the farmer is that his weaning percentage will be much closer to his lambing percentage. Furthermore, the Lamb Factory serves as a protection mechanism against predators, as lambs are most vulnerable during the first 30 days of their lives.
IntelliFarm™ offers an extensive Lamb and Feed Block Factory which is basically free to the farmer as the ewes we supply will generate the income to finance the rent of the Lamb and Feed Block Factory. We also supply Meatmaster rams at no charge. The minimum requirement for a farmer to benefit from this system is to have at least 1000 existing ewes as well as access to low value forage. The ewes we supply will fit within the farm’s grazing capacity for three reasons:
- If the farmer currently has wool sheep that are selective eaters, the remaining feed left behind by the wool sheep is sufficient for Meatmasters, no more than 15% of the wool sheep quantity.
See also: THE COST OF SELECTIVE GRAZERS - Since the ewes are now lambing in the Lamb Factory and they spend 30 days there before going back to the field (lambs are strong enough and maternal bonding is established), an additional grazing capacity of 10% is created.
- The Lamb Factory is for all ewes, both the Meatmasters and the existing flock, which means that the benefits apply to all the sheep on the farm. The Lamb Factory is an open camp or kraal and not within a structure, and is specifically used to compliment an extensive farming operation.
Given Data
| Annual rental costs for the factory: | R66,666.72 |
| Annual rental costs for the feeders: | R60,000 |
| Total annual cost for the feeding system: | R126,666.72 |
| Value of each lamb weaned at 100 days: | R1200 |
| Lamb production per ewe per year: | 1.41 lams |
| Proportion of ewe lambs required to cover ewe rent: | 0.3125 ewe lambs per ewe |
| The amount of feeders can feed 400 ewes. | 400 ewes |
Calculation
| Total Lambs Produced Annually by 100 Ewes: | 100 x 1.41 = 141 ewes |
| Distribution of Lambs (50% Ewes and 50% Rams): | |
| Number of ewe lambs: | 0.50 x 141 = 70.5 (≈71) |
| Number of ram lambs: | 0.50 x 141 = 70.5 (≈70) |
| Ewe Lambs Needed to Cover the Ewe Rent: | |
| Annual rental cost per ewe: | R375 |
| Number of ewe lambs required to cover the annual rental costs per ewe: | R375 / R1200 = 0.3125 |
| Total ewe lambs required to cover the annual rental costs for 100 ewes: | 100 x 0.3125 = 31.25 (≈32) |
| Remaining Lambs after Covering Ewe Hire: | |
| Total lambs produced: | 141 |
| Ewe lambs needed to cover rental costs: | 32 |
| Remaining lambs (ewes and rams): | 141 – 32 = 109 |
| Total Value of Remaining Lambs: | |
| Value of each lamb weaned at 100 days: | R1200 |
| Total value of remaining lambs: | 109 x R1200 = R130,800 |
| Total Annual Cost for Feed System: | |
| Factory rent: | R66,666.72 |
| Feeder hire: | R60,000 |
| Total annual cost (R66,666.72 + R60,000) | R126,666.72 |
Comparison of Value and Cost
| Total value of remaining lambs: | R130,800 |
| Total annual feed system rental cost: | R126,666.72 |
Conclusion
The value of the remaining lambs (R130,800) is higher than the total annual feeding system rental cost (R126,666.72). This suggests that renting 100 ewes will generate sufficient income to cover the feeding system rental costs and make a small profit.
Key Points for the Presentation:
- Total Annual Costs for Nutrition System: R126,666.72
- Total Value of Remaining Lambs with 100 Ewes: R130,800
- Number of Ewes Needed: 100 ewes
- Total Lambs Produced Annually: 141 lambs
- Remaining Lambs after Covering Ewe Hire: 109 lambs
- The amount of feeders can feed 400 ewes: The feeders that are rented can feed up to 400 ewes, enabling scalability and efficiency for the farmer.
- Additional Grazing Capacity: The ewes lamb in the Lamb Factory and spend 30 days there, creating additional grazing capacity of 10%.
- Feed Block Factory and Urease Process: This process converts low-value material into high-value feed at a fraction of the cost.
- Improved Weaning Percentage: The farmer’s weaning percentage will be closer to his lambing percentage, improving overall production.
- Protection Against Predators: The Lamb Factory serves as a protection mechanism against predators, as lambs are most vulnerable during the first 30 days of their lives.
- Meatmaster rams provided at no cost: IntelliFarm™ also provides the Meatmaster rams to the farmer at no additional cost.
- Access to Low Value Forage: The farmer must have access to low value forage to benefit from this system.
- Ewe Rent Paid with Ewe Lambs: The rent for the ewes is paid by giving the calculated amount of ewe lambs to IntelliFarm™. The farmer therefore does not have to pay cash, but instead gives 32 ewe lambs per 100 hired ewes.
The farmer’s big win is to increase his existing flock’s production at no extra cost by weaning more lambs and also finishing his lambs himself with IntelliFarm™ Feed Blocks inside the comfort of the Lamb Factory and feeders while the ewes are in the field. IntelliFarm’s 5-year research and development now makes this possible.
Feed Block Factory and Mixing Instructions
IntelliFarm™ will provide the urease catalyst. Our system will provide the exact mixing instructions and quantities. The farmer will add the following to produce a feed block:
- Low-value forage
- Urea
- Molasses syrup
- Soya flour
- Cornmeal
- IntelliFarm™ Urease Catalyst which includes all the necessary vitamins and trace elements, as well as coccidiosis and mold blockers.
By adding only 8% soybean meal with a protein content of 45% to the feed block mixture, this only contributes to a 3.6% increase in total protein. Through the urease process, the urea binds with the plant material and is converted into amino acids, which leads to a direct increase of the plant protein to between 14% to 19%, depending on the amount of moisture, temperature and forage used. These tests were done with wheat straw consisting of 4% protein. See also: FEED COSTS
This detailed analysis and description provides a comprehensive overview for the prospective farmer and demonstrates that renting 100 ewes can cover the cost of the feeding system and generate profit, while presenting the system as an effective solution for the farm.
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