This month, we're going to revisit some of the economics of raising dairy goats. If you wish to read more about this topic, just click on the "Archive" button, above. There reside several more articles discussing the profitable operation of a goat farm. Most of this article comes from an letter I pilfered (with permission) from Paul Hamby off the goatslite list.

Many people have difficulty setting fair market prices on their animals, so it helps to have a few guidelines. Most importantly, the farmer must know the customer base he/she is trying to reach. Some possibilities include the homesteader (family milker), the commercial dairyman, the ADGA showperson, the 4H youngster, and the ethnic meat market. The type of animal you raise will depend largely upon the individual to whom you wish to sell. I'll tell you right now that you don't get as much money selling your animals for meat as you will selling the stock as milkers or show stock. And I'm assuming you want to make a reasonable return on all your effort. So lets make a list of the factors which add value to your product.

• Healthy Animals - No CAE, no abscesses, no sore mouth, etc.
• Productive Animals - Keep records of the milk production.
• Multiple Births - The family line produces triplets and quads with some regularity.
• Papered Animals - It is well woth the effort to keep all recordations up-to-date. Purebred animals command larger prices. Americans show in purebred classes. Grades can be fine animals, but generally sell for less than the aforementioned goats. However, a papered grade will add some value to your product. Basically, papers give the customer some idea of the family lines, which leads directly to the ability to better predict how their newly purchased kid will perform.
• Independant Evaluation - Either linear evaluation or HES tends to give the customer an idea of the overall quality of the animal.
• Show Records - The show records do not guarantee a good animal, but they fall into the category of another method of independant evaluation.

So, from this last bit, you can tell that you need to add value to your product in order to get a good return on your labor. Of course, there are outside market forces that also help to determine the prices you get for your products. Always, the Laws of Supply and Demand will affect your entire operation. And right now, there is good news on both these fronts.

• Supply is Reduced - In the past 3 years, many dairy goats (particularly Nubians) were bred to Boer goat bucks. This has reduced the supply of good dairy goats, and of course, less supply means higher prices.
• Export Market is Up - American brood stock is in demand across the border and abroad. This further reduces the domestic supply, and hence the prices you can command are up.
• Demand is Increased - The Y2K scare and the move towards self-sufficiency are increasing the demands for good milking does. These things go in cycles. The homesteading movement which peaked in the late 70's and then waned is again starting on the upward trend. People are wanting a simpler life. This simpler life includes a small farm and some small measure of self-sufficiency. The market will probably continue up and peak in maybe 5-10 years.
• Commercial goat dairying is increasing, which drives up the price for good milkers. The retail market for goat milk products is wide open for the innovative entrepreneur.
• Demand for meat goats is up - The meat market will continue to look to the dairy goat industry for foundation stock to breed a meat goat with more milk. A meat goat with more milk raises her kids faster with better flavored meat. And they'll be able to adequately raise more of those meat kids. Multiple births from some purebred meat goats have to be raised on replacer (bottle fed) or sold off. This has long been the case in the dairy cattle industry, and today, a dairy/beef cross will bring more money than a straight dairy calf. The ethnic market still can't get enough meat to satify the demand. And increased demand means higher prices.

So all of this is pretty good news for the dairy goat producer. The supply is down and the market is up. And he has many ways to increase the value of his/her product in order to command premium prices. Of course, none of this comes without effort, and any farmer will put in a LOT of blood, sweat, and probably tears. But the rewards are really worth it. The lifestyle is wholesome, and its is a fiscally sound venture. Lots of work and a modicum of common sense work wonders. Next month, we'll cover a few observations on commercial goat dairying.

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