It’s inevitable. The first question out of someone’s mouth when they hear that we raise goats is: “Do you milk them for cheese?” Nope. Then they look at me with a puzzled expression: “Then, um, what do you dooo with them?” The implication is, of course, do you make any money with them. I am here to say, without a doubt, NO. At least not the way we “doooo” it.
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| Every Goat in the USA, ca. 2007 |
According to the USDA, there are a lot of goats in the country. In 2007, there were over 3 million of the critters. I’ll leave it at that. There are lots of reports out there – goat censuses and the like – but it’s pretty dry reading and I have two antsy toddlers nipping at my heels right now. So, onward.
Most of them are actually meat goats. With the rise of certain religious and ethnic groups in the USA, the demand for goat meat has skyrocketed. At the local farmers markets we routinely see “goat” booths, promoting their local, sustainably raised, lean GOAT meats. (On a side note, I wonder what wine goes with goats? A thought for another day).
But still most people think of dairy goats. The dairy section of every major grocery chain around here has at least one kind of goat milk. And I’m not even going to try to talk about the variety of goat cheeses.
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| This is about as close to milking a goat as we get. Cherry here is getting a little extra hit of her mom's milk from a syringe. |
So, I guess it’s not out of the question to think that we would do dairy goats or meat goats even. But we don’t. So what exactly do we dooo?
We breed, show and sell. Which means virtually nothing at all to someone who has not yet had the privilege of witnessing the spectacle of a real live goat show (yee haw). Of those three categories, two are definite money-losers.
On average these days, with the drought and all, a bale of alfalfa hay costs $18-$20, and we go through about a bale a day. Then there’s grain, which runs about $19/bag, averaged out over the wide variety of feeds we use to make our own special mix (sunflower seeds, goat chow, “dominator,” calf manna). Mineral salts are also $20/bag. I’m seeing a theme here…
In a week, we go through about a bag of grain and about 1/3 bag mineral salts. And don’t forget the livestock dogs. I lump them in with the goats for food. We have three of them and they each weight 90-125lbs – they eat a lot. Like 25 lbs. a week.
Next, veterinary expenses. Supplies include syringes, needles, antibiotics, wormers, vaccines, parasite control. Fortunately, Katherine does most of the doctor-y things herself (vaccinating, dis-budding, castrating, drawing blood, worming, etc.), but we still have to call in the professionals sometimes for complicated kiddings, ultrasounds, initial diagnosis of illness, etc. She tests the whole herd annually for the trifecta of goat scourges (CL, CAE, Johnnes), overnighting blood samples up to Washington. Ironically, veterinary expenses are on the low-end of the goat expense scale (who woulda’ thunk?).
Farm expenses, on the other hand, are way up there. This year was particularly rough because we had to buy three livestock dogs, neuter them all, and then patch each of them up after the initial dog fights. Things have settled down with the dogs, so I’ve pulled out their medical expenses from my accounting. Phew.
Supplies need replacing periodically. For example, the other day a livestock dog was fishing for the mosquito fish in the water trough and cracked the rusty trough, so I had to rush out and buy a new trough for $100. At least the automatic waterer survived the attack. And those pesky waterers need replacing all the time (I recommend the metal ones, by the way – well worth the extra $2). Dogs chew on buckets; collars and leashes go missing. Goats need microchips.
Next, goat shows. We go to 6 shows a year, sometimes more, sometimes less. I won’t go through the set-up expenses (i.e. FARM, TRUCK, TRAILER, tack trunk, stanchion, hay bags, blower, clippers, buckets, leashes and collars, grooming supplies).
Let’s just assume that you are up and running. But the recurring costs keep coming: entry fees, goat registrations, hotel, food, gas, spending money, etc. We stay at el-cheapo motels and eat at “low brow” establishments, but, still, the bills accumulate.
Marketing is a drop in the bucket: the website had some initial costs but Katherine maintains it herself. Business cards are virtually free, as are the banners and signs.
Then there’s the part about actually buying and selling goats. Last year, Katherine bought nine goats and sold… 4 goats. Hmmm, that seems backwards now that I see the cold hard numbers (this year is better already, though). The truth comes out! But, to her defense, the goats that Katherine bought were both brood does and show does (and a breeding buck… and a wether) who are already pregnant and kidding out little cash crops as I type.
So, brace yourself, here is the summary with the actual numbers from my Quicken records (yes, I am an anal Capricorn and proud of it):
OK, why in the hell do we do this?? Besides the fact that goats are cute and fun and we really like our goat show friends? It’s a great way to teach kids about real life business management.
Besides learning to drive a trailer and get herself out of bed every two hours to feed a baby goat or check a pregnant mama, Katherine has learned first-hand what it takes to run a business.
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| http://tonyenterprises.com/branding-consultant/ |
She has learned what it means to differentiate her “brand” of goats from all the other goat breeders out there: she breeds for temperament as well as competitive, breed-conforming animals.
She has figured out that good customer service keeps people coming back; for example, if she doesn’t have a specific goat that someone is looking for (color, age, etc.), she will call around to her other breeder pals and find someone who does. Customers appreciate that kind of service and come back to her for more animals. In fact, Katherine has a one-year waiting list of people wanting to buy her goats = supply and demand, customer service.
She contemplates pricing and how to position herself in the marketplace. If she prices her goats too cheaply, people will think they are inferior animals; but if she prices them too high people will balk. So, Katherine walks a fine line, always evaluating the price point of her animals compared to other animals out there.
We talk about the costs of running a business (see table above…) and she calculates how many animals she would have to sell to break even at any given price point: about 53. And if you need 53 goats to sell in a year, how many brood does must you have? Assuming each goat kids twins once a year – because we don’t run a “puppy mill” over here! – then she would need about 26 brood does. I think she needs to raise her prices… I’ll bring it up at dinner tonight.
She even carries business cards on her person at all times, because you never know when someone will want to buy a goat (= sales).
She manages her own bank account and has learned all about tracking her expenses and income (= accounting). She is masterful with spreadsheets.
All of that and she is 16. Yes, goats are a money-losing proposition right now; but by the time Katherine is 26, she will be a Goat Mogul in her own right.
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| www.cbpygmies.com |
