Economic analysis of intensive sheep production systems in central South Africa

[摘要] English: Small stock production has a few challenges in predation, stock theft, variable rainfall patterns and rising production costs but livestock production is a very important industry in South Africa. There is a growing interest in intensive sheep production systems using irrigated pastures. Wool prices and reasonable meat prices encourage sheep production, especially woolled sheep farming. In this study the profitability and efficiency of different sheep production systems are evaluated and discussed.Simulation models are widely used to simulate farming scenarios because data collection, such as reproductive responses can take long. The Agri Benchmark methodology with the TIPI-CAL simulation model were applied by constructing a typical farm for four different sheep production systems, namely extensive sheep production: rangeland only, semi-extensive sheep production: rangeland supported by irrigated pastures and two intensive sheep production system using irrigated pastures and silage respectively for production.The primary objective of this study was to evaluate the profitability and efficiency of two intensive sheep production system compared to two extensive systems. The aim was also to identify the critical management issues of intensive sheep production systems.Each system was evaluated in terms of its economic situation on a whole farm level. That includes the total income and profit margins of the system expressed as total mutton production per ewe. Market returns and the total live weight sold per ewe were the highest in the irrigated pasture system. Ewe productivity was the highest on the irrigated pastures and the silage system the most effective with the highest lamb growth rates. The cost of producing a lamb in the silage system is R500.50 per lamb. The non-factor costs (feed purchased, seed, and fertiliser) are the greatest contributor to total costs. The capital-, land- and labour costs were in percentage the highest in the extensive systems. Labour costs are high, with the silage system showing the highest labour productivity levels given per kilogram mutton sold per hour of labour input. Wool returns/income is almost the same percentage for all the systems.All four the sheep production systems are profitable over the long term with a positive profit margin. Total returns on capital invested, measuring the efficiency of the sheep production showed, that despite high costs and capital requirements, as with the silage system, it is the second highest in terms of the returns on capital invested. Management is the key word to the successes of any sheep production system and includes critical management issues in terms of fodder planning (pasture management), health management and control of effective feeding.The generated information can be used in future research as part of the national and international Agri Benchmark project. Different irrigated pastures and breakeven stocking rates for these pastures can be researched. The effects of policy changes can also be simulated.

[发布机构] University of the Free State