Small-scale livestock production of sheep and goats provides unique opportunities but requires consideration of several factors. Producers should evaluate certification programs to access new markets while accounting for costs. Good stewardship through practices like manure management and stormwater runoff protection benefits both the environment and business relationships. Licenses and zoning regulations vary by location and products sold. With the right planning and practices, small-scale livestock can be profitable.

1. Small-Scale Livestock Production
This program was funded by the USDA National
Institute for Food and Agriculture (NIFA) Beginning
Farmer and Rancher Development Program (BFRDP)
under award #2009-49400-05871.

2. There are unique
production and
marketing
opportunities
available to
smaller-scale
sheep and goat
producers;
however, before
you get started,
you need to
consider…

3. New marketing opportunities
Environmental stewardship
Production practices
Safe practices
Business licensing
Zoning restrictions

4. New marketing opportunities
• Leveraging your
herd
management
• Overview of
certification
programs
• Evaluating
program cost &
benefits

5. Certification and Marketing
• Consumers are interested in how livestock are
raised, handled & processed
• Certification may allow you to secure a
premium for product or expand market reach
– Such as specialty food stores and restaurants that
require that their animal products be sourced
from humanely raised animals
• How you manage your animals (your
stewardship practices) can influence your
marketing opportunities

6. Animal Welfare Certification
Programs
Animal American Certified HFAC
USDA Food
Welfare Humane Naturally Certified
Organic Alliance Grown
Approved Certified Humane
• Distinguish livestock products as coming
from humanely treated animals
• Certified production systems often are more
expensive than non-certified
• Be sure to keep in mind the production costs
and marketing benefits of following a
certification program

7. Possible Program Specifications
for Herd Management
Indoor air quality & Minimum bedded
Outdoor access
ammonia levels space; floor space
Castration, tail docking
on Transport time for
sheep, dehorning, ear slaughter
marking

8. Evaluating Certification Programs
Goals • Make sure program goals align with yours
• Understand the certification process & animals
Certification covered
Fees • Understand the program’s fee structure
• Calculate the time required to achieve and
Time Commitment maintain certification
• Estimate how your production costs may
Production Costs change under certification

9. Evaluating Certification Benefits
Ability to connect
Access to new Possibility of
with customers
markets that seek charging higher
based on their
certified products prices for products
values
Access to marketing Certifier may help
materials and support grower improve safe
from certifying production and
organization handling techniques

10. Evaluating Certification Costs
More pasture area may be required for each animal enrolled in the
certification program  You may need more land
Changes to animal health care  You may need to remove from
your program sick animals that you vaccinate or medically treat
Changes to animal feeding  You may need to use feed from
specific sources or follow certain ingredient guidelines
Changes to animal housing  You may need to build additional
facilities to allow more space per animal
More detailed record-keeping on animal health and raising  You
may need to allow more time or hire someone to do this

11. Linking Production & Marketing
Decisions
• Choose a breed that is appropriate for the markets
you will serve (meat, fleece, milk)
• If you are producing meat animals, do you have a
slaughter and processing facility that will work
with your level of production and cuts you desire?
• Know who will buy your product before you
produce it
• Take a course in Good Agricultural Practices (GAPs)
– To understand how to prevent or reduce contamination of your
products throughout production, processing and sales
– Obtaining GAPs certification is also a good marketing strategy

12. Environmental stewardship
To be a good neighbor
and food producer:
• Manage manure
properly
• Monitor storm water
runoff
• Dispose of mortalities
safely

13. Good Stewardship Leads to Better
Business Management
Minimizing: Using best Leads to a:
•Animal and management •Cleaner
manure odors practices to: production
•Dust •Dispose of operation
•Insects & dead animals •Healthier herd
predators •Mitigate runoff •Good neighbor
relationships

14. Manage Manure Properly
Control unpleasant odors and dust
Know the nutrient content of your manure, apply
based on nutrient/fertilizer value, and keep records
Spread manure away from wells, springs, and
watercourses
When possible, till in fall-applied manure
Keep piles of manure, spent bedding and spoiled feed
away from watercourses

15. Monitor Storm Water Runoff
Conduct annual tests for bacteria and nitrates in well
water
Locate livestock operations away from wellheads;
protect wellheads in pastures (consult local/state
wellhead protection laws)
Use buffers and setbacks to protect surface waters
from direct contact with animal waste and process
waste water
Divert clean water (run-on) around production and
waste storage areas using berms, ditches grassy
swales, roof gutters

16. Dispose of Dead Animals Safely
Abide by state/local laws
Render within 48 hours, where service is available (dead
animals used to create a new, usable product)
Compost in pile or bin, at high temperature (130o-150oF)
Bury on farm, at least 300 feet away from a watercourse
and 3-ft deep, above the wet season high watertable
Bury/dispose at a licensed landfill

17. Production practices
• Maintaining a
healthy herd
• Managing sick
animals

18. Managing for Healthy Animals
Includes Providing…
• Housing that is clean, ventilated and predator proof
• Adequate enclosure and fence height, especially for
goats
• Access to clean water at all times
• Nutritionally complete food, including forage, salt &
minerals
• Appropriate parasite control
• Protection from extreme temperatures, including
water heaters for winter, and shade during hot
months

19. As a Good Herd Manager, You Should:
Observe your animals and learn what behaviors are normal, so you
recognize unusual behaviors indicating a possible health issue
Check your animals regularly-twice daily is best for monitoring
health and behavior
Become familiar with common small ruminant health issues and
diseases
For the breed you are raising, know the lambing/kidding age and
years of reproductive capability

20. As a Good Herd Manager, You Should:
Meet the nutritional needs of your animals at their current state
(during gestation, lactation, maintenance, etc.)
Provide some mental stimulation and an enriching environment
for your animals
Keep breeding records, as well as animal health records
Have a plan for surplus animals (beyond your breeding, meat or
milk animal needs since the extra feed is a cost to you)

21. Taking Care of Sick Animals
Work with a local veterinarian with small ruminant experience (if you
live in a remote area, you may need to learn basic care practices)
Have a herd health plan & vaccination schedule
Develop a quarantine procedure for sick animals; watch for news
alerts from your state veterinarian’s office
In case of disease outbreak, have a plan for cleaning and disinfecting
vehicles & equipment, and protecting your employees
Develop a disposal plan for dead animals
Keep detailed records of your animals’ health

22. Safe practices
• Worker safety
• Good
Agricultural
Practices (GAPs)
• Milk and meat
products

23. Safe Handling: Worker Safety
• Sheep and goats can carry organisms that may
cause infection and disease in humans
When handling animals or their wastes, wear
protective clothing, wash your hands afterward, &
treat all cuts and abrasions immediately
• Both species can jump, bite, kick or run into
their handlers, causing injury
Learn proper handling techniques and never turn
your back on animals in a pen
Be aware of potential injuries from contact with
gates, chutes, wire pens, and electrical sockets

24. Safe Handling: Good Agricultural
Practices (GAPs)
• On mixed crop/livestock farms, keep livestock out
of food production and handling areas to prevent
contamination of food products
• Ensure that animal wastes do not directly or
indirectly contaminate drinking or irrigation water
• If you produce compost from your livestock
manure:
1. keep records of composting dates and production
process,
2. separate raw and finished compost, and
3. store compost on high ground, away from fields and
water sources to prevent run-on

25. Safe Handling on Farms with Crop
& Livestock: GAPs
• Wash and sanitize vehicles and equipment
used for handling or transporting livestock
before transporting food for human
consumption
• Make sure workers change clothes and wash
their hands after handling livestock and
before handling food crops

26. Safe Handling of Milk and Milk
Products
• Refrigeration is most important factor in
maintaining safety of milk (Grade A milk must
be maintained at 45 °F or below), as well as
butter, cream, whipped topping, sour
cream, yogurt, cheeses, etc.
• Temperatures must be maintained through
distribution, delivery and storage
• Note that safe refrigerator storage times differ
depending on the product, and only butter, ice
cream and pasteurized fresh whole or skimmed
milk may be frozen

27. Safe Handling of Meats
• Remember to have quality control over your
product from harvest through
processing, storage and distribution
• How you handle the product affects:
– how safe it is for your consumers
– your product’s quality
– your product’s shelf life

28. Business licensing
Which licenses you need
depends on:
– Whether you are selling milk
or meat
– Where you plan to sell your
product

29. Getting Permission to do Business
• County, municipal & Homeowners Association or
Neighborhood/Unincorporated Community Covenants
• Business registration (typically from your state’s
Secretary of State, although some cities & counties also
require business registration)
• IRS Employer Identification Number (EIN, if you have
employees)
• State taxes (sales tax, income tax, workers’
compensation, unemployment insurance)
• City/County sales tax license
• Business licenses (depending on your sales outlet and
products(s) offered for sale)
To check on your state’s tax and licensing requirements:
http://www.sba.gov/content/learn-about-your-state-and-local-tax-obligations

30. Licensing for Milk Sales
• Federal regulations define milk and milk
products by their ingredients.
– This is important for grading and labeling, and for
knowing which license you need for your business.
• For goat and sheep milk production and
sales, all states have different licensing
requirements and permit costs.
• In many states, raw milk sales are illegal and all
milk & milk products sold must be pasteurized.
– Contact your state department of public health to
learn about regulations in your state
– Educate yourself on the food safety issues
surrounding raw milk production

31. Regulations for Pasteurized Milk
Grading • Use FDA/USDA guidelines
• All bottles, containers & packages with milk or milk
Labeling products must be labeled, indicating the common name
of the hooved animal. See FDA guidelines.
Refrigerating • Store between 33°F and 41°F
• Keep clean and sanitary
Transporting • Maintain refrigeration

32. Licensing for Retail & Wholesale
Meat Sales
To sell packaged • Animals must slaughtered & processed
meat direct to the under continuous inspection (either
consumer Federal or State inspection systems)1
To sell packaged • Must use Federal or State inspected
facility
meat to retail
• Required: Labeling – i.e., Net Weight
buyers, wholesale using Standard Weights and Measures2
or farmers’ market • Optional: Grading
1- Only Federally inspected and certain state facilities are approved for out of-state sales.
2- Your processor can help guide you through the packaging and labeling process.

33. Custom Exemption to USDA Slaughter
and Processing Requirements, for
Direct Sales
Sold before
Labeled
slaughter to new
NOT FOR SALE
owner AND
OR
Processed for Processed for non-
household use AND paying guests

34. One More Thing About Meat and
Milk Sales…
Many farmers’ markets
require vendors to carry
their own liability
insurance policy for
product sales
For more info on licensing and regulations,
check with your local Extension office
or state Department of Agriculture

35. Zoning restrictions
• Zoning is a restriction on
the way land can be
used
• Zoning regulations may
include where you can
(or can’t) raise animals

36. County & Municipal Zoning
Regulations
• Present your plans early―your local planning
and zoning board may have ideas to make
your business more viable or to protect your
resource base
• Once you are in operation, remember to
consult local officials before making any
changes to your business (to structures or to
products you sell)

37. County & Municipal Zoning
Regulations
• Larger livestock (including sheep and
goats) typically prohibited in non-
agriculturally zoned county & Always verify the
municipal districts
types & numbers
• Your Homeowners’ Association may of animals
also have restrictions on livestock legally allowed
• Many counties & municipalities allow
on your property
private ownership/production of a before starting
small number of sheep and goats in your business
agricultural districts.
However, animal slaughter may be
prohibited.

38. Regulations in districts where commercial
livestock production is permitted may
include:
Size and type of
Commercial or
animal
agricultural Permit fee often
structures;
permit required
location on your
requirements
property
Limited number
of animals Limited or no
allowed; Standards for allowable
pasture odor, noise, dust slaughter on
specifications premises

39. Building a Profitable Business
Involves
Building Building Building Business
Customers Community Processes
through through through
Good resource Research &
Marketing & animal compliance
stewardship with
regulations
Good and
Safe handling certifications
neighbor
practices
relations
that lead to a sustainable business!

40. Questions?

41. Acknowledgements
• Blake Angelo, Colorado State University Extension, Urban
Agriculture
• Thomas Bass, Montana State University Extension, Livestock
Environment
• Dr. Marisa Bunning, CSU Food Science and Human Nutrition
• Emily Lockard, CSU Extension, Livestock
• Dea Sloan, CSU Agricultural and Resource Economics
• Martha Sullins, CSU Extension, Agriculture and Business
Management
• Dr. Dawn Thilmany, CSU Agricultural and Resource Economics
• Heather Watts, CSU Agricultural and Resource Economics
• Wendy White, Colorado Department of Agriculture
• David Weiss, CSU Agricultural and Resource Economics

42. Photo Credits – flickr.com
All photos used under the Creative Commons License
A Roger Davies BryanAlexander ynskjen
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Kkirugi
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