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Starting a Dairy Goat BusinessA Guide for Farmers
STARTING A DAIRY GOATBUSINESS----A GUIDE FOR FARMERSA Publication by theWisconsin Department of Agriculture, Trade and ConsumerProtectionAugust, 20082811 Agriculture Drive PO Box 8911 Madison, WI 53708-8911 608-224-5012 wisconsin.gov
The Wisconsin Department of Agriculture, Trade and Consumer Protection gratefullyacknowledges the efforts of the writers of this publication, all of whom donated their timeto assist in the on-going development of the dairy goat industry in Wisconsin and theregion.
TABLE OF CONTENTSPageIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Brad Harrison, Ag Consultant; Retired Farm Business and ProductionManagement Instructor, Blackhawk Technical CollegePersonal Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Kathy Schmitt, Job Counselor, Department of Agriculture, Trade andConsumer ProtectionGoal Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Laura Paine, Grazing and Organic Agriculture Specialist, Department ofAgriculture, Trade and Consumer ProtectionResearching the Industry and Determining Feasibility. . . . . . . . . . . . . . . . . . . . . . . 13Brad Harrison, Ag Consultant; Retired Farm Business and ProductionManagement Instructor, Blackhawk Technical CollegeIdentifying Your Support Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Brad Harrison, Ag Consultant; Retired Farm Business and ProductionManagement Instructor, Blackhawk Technical CollegeKeeping a Healthy Herd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Dr. Chris Duemler, DVM, Brodhead, WI Veterinary ClinicAssessing Farm Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Frank Friar, Beginning Farmer Program, Department of Agriculture,Trade and Consumer ProtectionDetermining Labor Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Frank Friar, Beginning Farmer Program, Department of Agriculture,Trade and Consumer ProtectionPractical Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37David W. Kammel, Professor, Biological Systems Engineering, University ofWisconsin-MadisonFinancing Your Farm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Laurie Makos, Farm Loan Manager, USDA Farm Service AgencyWriting a Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Brad Harrison, Farm Business and Production Management Instructor,(Retired), Blackhawk Technical CollegeCulls, Kids, and Breeding Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Judy Moses, Shepherd Song FarmProducing High Quality Goat Milk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Dr. Pamela Ruegg, DVM, MDVM, University of Wisconsin-MadisonMarketing Milk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Larry Hedrich, Producer and President, Quality Dairy Goat ProducersCooperative of Wisconsin
Working with Your Processor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Joanne Mac Neill, Corporate Director of Quality Assurance and GovernmentAffairs, Woolwich Dairy, Inc.Exit Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82Laurie Makos, Farm Loan Manager, USDA Farm Service AgencyAppendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Checklist to Start a Goat Dairy—Appendix A . . . . . . . . . . . . . . . . . . . . . . . 85Words of Wisdom from the Field—Appendix B . . . . . . . . . . . . . . . . . . . . . . 91Suggested Do’s and Don’ts—Appendix C . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Employment Application—Appendix D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96At-Will Agreement—Appendix E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98Performance Evaluation—Appendix F . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100Wisconsin Dairy Goat Resource Guide—Appendix G . . . . . . . . . . . . . . . . 101Balance Sheet—Appendix H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102Cash Flow Worksheet—Appendix I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Goat Milk Producer Quick Reference—Appendix J . . . . . . . . . . . . . . . . . 104
Starting a Dairy Goat BusinessIntroductionOne of the biggest problems facing someonegetting into the dairy or meat goat businessis recognizing that it is not a quick easybusiness to get into and operate. Too manypeople see goats as nice, easy to manageanimals that take little in the way offacilities, land, or labor.While some of this may be true incomparison to a bovine dairy, much is justblue sky speculation based on wants, notrealities. We must determine what ourdreams and desires are in the context of thesober realities of the real business world. Alack of knowledge and planning has causedthe short-term run of more than one goatoperation, in particular new dairy goat startups.Anyone interested in goats needs to spendsome time with several people in thebusiness. You need to be knowledgeableabout the business needs, husbandry needs,markets, and do a careful assessment offinancial needs.Attitude is critical. You must ask yourself:“Am I willing to work long days 7 days aweek all year?” Yes, after the main kiddingseason is over, labor goes way down but theindustry movement is to year-roundproduction, or at least a spreading out ofbreeding and kidding seasons to even cashflow and the labor needs of taking care ofhundreds of kids over a short period of time.Key QuestionsWhat are your goals? Is this a supplemental income orintended as a family support activity? Do you plan on all family labor to beconcentrated in the business or will youexpect outside income for the short termor long term? How much money do you need forfamily living?What is your market?Identify if a market exists for goat milk orits products. Is there a market for kids,and/or meat goat sales for dairies and/ormeat goat operations?Be careful indetermining the future stability of breedingstock revenue when considering long-termrevenue. The meat animal market is veryunique compared with other meat marketsdue to the demographic make-up of meatgoat consumers, as well as infrastructureimmaturity.What are your capital needs?Identify capital needs. This includes facilityneeds along with all related equipmentneeded to handle the animals, as well asmeet government regulations. In addition, ifbreeding stock is to be purchased, the cost ofall purchases should be projected out overthe time needed to meet the desired herd1
Starting a Dairy Goat Businesssize. It would be less than prudent to assumea startup phase of less than 4 to 6 yearsbefore a business can be considered enteringits stable phase.What financial resources do you have toput into the startup of the business?In order to take stock of your currentfinancial situation, you will want tocomplete a balance sheet as well as assessincome sources.In evaluating yourfinancial resources, be sure also to takestock of non-cash support, such things asfamily or friends’ labor and sharedequipment use. Do a multi-year budgetincluding start-up, a transition phase (2nd to5th year as needed), and a long term typicalannual financial plan.What support resources are available?There are many resources available to youincluding: UW-Extension Services, theWisconsin Technical College System FBPMprogram, your field representative from yourmilk plant or marketing co-ops, veterinaryexpertise, financial experts, fellow producersand other producer-based support groupsHusbandry IssuesBelow are a few husbandry-related items tokeep in mind as you build your herd.1. Genetics (or lack thereof) Care must be taken in buying stock try toget performance-based stock. Genetic progress by A.I. is possible butindustry support is sporadic and manyproducts available to other species arenot always available.2. Health information is growing inquantity and quality but still awaitsstandard protocols. Few veterinarianshave extensive knowledge and manyproducers state opinions based on beliefsrather than sound science.3. Nutrition is hurt by a lack of skilledindustry support and lack of localnutritional trials specific to dairy goats.4. Facility needs and options are beingdeveloped on the fly by many producers.There is a need for information to becollected, verified, and disseminated to otherproducers if the industry is to develop to itspotential. Too many new startups fail due topoorinformationandunfoundedexpectations.The bottom line is that this is an emergingindustry, with much potential, but manyunanswered questions at this time. Theability of this industry to develop willdepend on the emergence of key supportstructures, and markets, with top performingindividuals involved in each of the key areasidentified here.This manual should help you as you begin toresearch the viability of launching a dairygoat enterprise on your farm.2
Starting a Dairy Goat BusinessPersonal AssessmentWill a dairy goat operation fit your personaland family lifestyle?Answering thisquestion is one of the first and perhaps mostimportant question you need to considerbefore entering into this enterprise. Howwell this type of operation meets yourpersonal and family values plays heavilyinto your job satisfaction. Assessing yourskills, attributes, and resources will help youidentify your strengths and limitations andlay the groundwork for setting goals, findingresources, and acquiring new skills.Values InventoryValues are the basic principles you hold thatgive meaning and purpose to your life.They are essential to your happiness andsatisfaction so it is vital that they be a part ofyour job choice. Below are some values thatcould play a part in your satisfaction as adairy goat farmer. Consider them in termsof how important each of these values is toyou. Approval: have others think favorablyabout what you do Autonomy: self-government Creativity: be innovative, imaginative,create something new Family: being with family members Independence: do things on your ownwithout a lot of orders and directionfrom others Learning:gainingknowledge,comprehension or mastery throughexperience or study Material Status: possessing financial ormaterial possessions Security: assured of keeping job, freefrom concern of loss of resources Skill: proficiency; expertness Variety: having a number of differentthings to do Wealth: accumulationpossessions, propertyofmoney,When you think of what’s involved in dairygoat farming, how closely does that matchyour values? Your satisfaction in thisenterprise will have a lot to do with howclosely you are able to incorporate yourmost important values into your lifestyle.Resource InventoryIn addition to considering your values, thereare a number of questions you can askyourself and your family members to helpyou determine if a dairy goat operation willfit your lifestyle.ATTRA (Appropriate Technology Transferfor Rural Areas), National SustainableAgriculture Information Services, lists agood set of questions to help you evaluateyour resources in their “Evaluating a RuralEnterprise” Marketing and Resource Guide(May 2002) available on the web athttp://attra.ncat.org/.3
Starting a Dairy Goat Business Do I have time to devote to dairy goatfarming? Am I willing to spend as much effort inmarketing as in production? Does the workload correspond with thetime of year I want to work? Will a dairy goat enterprise complementmy current enterprises?Will I have to do the major part ofmarketing? Do I have the skills and experiencenecessary to do this?Will it require a lot of effort to preparethe product for the market? Is this something I will enjoy doing? Have I managed a business before? Do I like to supervise people (if myoperation will require it)?Is there enough variety in the productionand marketing activity to keep thisinteresting? Do I have enough personal energy to dothis? Is a dairy goat enterprise adaptable tomy area? Can I count on my family members forsupport? Do I care what the neighbors think aboutdairy goats?What are the sources of risk in thisenterprise(production,financial,marketing)? Am I willing to work with those risks?Is my family? Why do I want this enterprise?More excellent resource questions comefrom PRIMER for Selecting NewEnterprises for your Farm, by Tim Woodsand Steve Isaacs, Agricultural EconomicsExtension, No. 00-13 August 2000.University of Kentucky CooperativeExtension.Consider all of these questions and yourpersonal and family values. Then, list 3good reasons for getting into a dairy goatenterprise. Do I have the “know how” to produceand sell this product?2. If I don’t “know how”, do I know who toask?3. Am I willing and able to approachdifferent people for advice? Does market research and developmentappeal to me?1.4
Starting a Dairy Goat BusinessDoes this still look like a good fit for you?Okay, now list 3 good reasons for gettingout of (or not getting into) a dairy goatenterprise.1.2.3.Use this analysis to help you make thedecision to move forward with your plans orto shift directions. If you do move forwardwith a dairy goat operation, keep the reasonsfor getting out somewhere handy. Theinformation and exercises in this sectionshould be reviewed from time to time tohelp you plan much more effectively forcontinuing your operation or to plan for anorderly exit.5
Starting a Dairy Goat BusinessGoal Setting“When a man does not know what harborhe’s making for, no wind is the right wind.”—SenecaAs you looked through the table of contentsof this start-up guide, I’ll bet ‘goal setting’wasn’t the first place you turned. Most of usare ‘do-ers’ and would prefer to jump rightto the part where the goats are in the barnand you’re ready to milk. We can easilyvisualize that end point, but the process oftransforming your dream into a reality startswith some thoughtful introspection andplanning. Making sure your aptitudes andvalues are a good fit with the requirementsof this enterprise will not only make it morelikely that you’ll reach that dream, but it willmake the journey there more fun.Setting goals and mapping out a plan willenhance your chances of success. Just asimportant as setting goals are the decisionsyou make every day that will lead you eithertoward or away from those goals. Mostsuccessful farmers are quite deliberate aboutsetting goals and making decisions. Thedevelopment of their farm enterprise beginswith a vision, but is accomplished throughthe more mundane steps of businessplanning and farm ‘staff meetings’ tomonitor progress and make adjustments.Good communication is key to the wholeprocess. Establishing a new farm enterprisecan involve significant changes in yourfinancial status and your quality of life, andit may require changes in relationshipsamong decision-makers. When my husbandBill and I started farming in our mid-forties,we suddenly found ourselves needing tocommunicate in a whole new way. Beforethen, with our separate careers, we’d neverworked together on a project so large andcomplicated as running a farm and abusiness. We expected to learn a lot aboutpasture management and animal husbandry,and have been surprised at how much we’velearned about each other. It’s been fun andchallenging.Three Keys to SuccessAccording to author and business professorJim Collins, a successful business happenswhen you bring together:1. What you are deeplypassionate about.2. What you can be thebest in the world at.3. What drives youreconomic engine.What your farm actually produces is lessimportant to your success than aligningthese three things.6
Starting a Dairy Goat BusinessThis chapter will use these keys to provide atemplate for setting goals, making decisions,and monitoring your progress towardachieving success.Management TeamStart by deciding who your ‘decisionmakers’ are going to be. Your decisionmaking team should include everyone whohas a stake in the farm enterprise's successor can contribute to that success. Yourspouse and other family members, businesspartners, and, in some cases, hired helpshould all be part of the team. Even iffamily members aren’t directly involved inthe day-to-day operation of the farm, it’sworthwhile to involve them in planning andmanagement.Havingeveryone’swholehearted support for the enterprise canmake the difference between success andfailure.You might consider includingchildren as well. Being a member of thefarm team can contribute very positively to achild’s growth and education.Inventory ResourcesAs you begin setting goals and developing abusiness plan, it’s helpful to do an inventoryof resources available to you. Call ameeting of your team and do somebrainstorming. What are the resources youhave at your disposal? List your land,equipment, animals and other physicalresources, and the labor and money youhave available, including lines of credit.Now think a little more broadly: Whatinformation resources do you have accessto? Local libraries, Extension offices, cropconsultants, the Dairy Goat Association? Doyou have neighbors that you can trade workwith or a rich uncle you can borrow from?Write them all down.How about your own skills and aptitudes?Whether you’ve always farmed or arecoming to farming from another career, youhave skills that can be of value to your farmenterprise.For example, my neighbors, who arebuilding a farmstead bottling plant for theircow dairy have matched the unique skills ofindividual family members with theappropriate jobs.James, the outgoingbrother, is in charge of the bottling and retailstore. Rob, who’s more reserved, takes careof the milking herd. Wives Jenny andRebecca raise the calves and do the bookkeeping, respectively, and their semi-retireddad fills in where needed. They pull in afather-in-law who lives down the road tohelp with fieldwork. So, being ‘artistic’ or‘good with people’ or ‘mechanicallyinclined’ are all resources that may come inhandy as you build your business.7
Starting a Dairy Goat BusinessCreating a Vision for Your FarmThink about goal setting like planning a trip.You start with the end point—where do youwant to travel to? Then you fill in thedetails of how you’re going to get there.The goal-setting process should start withthe ‘finished product’ and work backward tofill in more concrete timeframes andobjectives.So, start with that dream—what does it looklike? Where do you want to be in 5 years?10 years? What will your farm look likewhen it’s successful and prosperous?Now do the rest of your decision-makershave the same vision? Does a goat dairylook the same to them as it does to you?Are they motivated by the same things?Establishing goals that accommodateeveryone’s motivations will ensure thateveryone will give their best toward theeffort.This ‘vision statement’ is intentionallyvalues-based and is not necessarily veryconcrete. It embodies the passions youbring to farming and it should address yourvalues—how you feel about the land andanimals under your care, the food youproduce, or the consumers you’re producingfor.Once you have a shared vision for yourfarm, try to boil it down to a few sentences.You’ll find that working with your partnersand family to verbalize your goals andcommitting them to paper fundamentallychanges how you think of them.Financial GoalsMost new businesses succeed because theirmanagers are motivated by
Starting a Dairy Goat Business 2 size. It would be less than prudent to assume a startup phase of less than 4 to 6 years before a business can be considered entering
Non-Market Goat Senior Showmanship (14-18) Non-Market Goat Intermediate Showmanship (11-13) Non-Market Goat Junior Showmanship (8-10) Non-Market Goat Showmanship winners will compete in the Small Animal Round Robin. Non-Market Goat classes include Dairy, Pygmy, Fiber and Utility classes. Market/Market Breeding Goat Senior Showmanship (14-18)
Genetics of a goat plays an important role in determining performance that is growth rate, feed conversion efficiency, carcass quality and yield. 3.1.1 Matabele Goat The Matabele goat is found in the South and Western part of Zimbabwe. The breed is large as compared to the Small East African goat. The Matabele goat is white, black, brown
successful in commercial goat farming, one should have proper goat farming business plan before rearing the goat on large scale. The goat business plan should include goat breed type, basic infrastructure (house/shed), number of animals, feed management, insurance, vaccinations (disease control) and other medical information and marketing.
THE THREE BILLY GOATS GRUFF A Folktale adapted by Megan Joy Parts: Circle your part in the play. Narrator Littlest Billy Goat Middle-Sized Billy Goat Biggest Billy Goat Troll Scene 1 Narrator: Once upon a time, there were three Billy Goats. Littlest Billy Goat: Good morning, big brothers! Middle-Sized Billy Goat: Good morning, Little Billy!
Now the biggest countries for Boer goat production are the U.S., New Zealand, Australia and southeast China. Germany used to have a larger goat production (used mostly for research), and nations like Mexico and Argentina are beginning to farm Boer goats, but on a smaller scale. 3. What is the average lifespan of a Boer goat?
American Dairy Goat Association shows have added a third show; Jr. Doe Show on Saturday 2:00 p.m., Buck Show on Saturday 7:00 p.m. and Senior Doe Show on Sunday following showmanship. The fees associated with the JABGA goat shows have been reduced to 10.00 per animal. The Pygmy Goat Show will have two WCGE shows this year.
3 Definitions Dairy businesses are businesses that develop, produce, market, or distribute dairy products. Dairy plants are any location where milk, cream, dairy products, or trade products are received for the purpose of manufacturing, processing, or packaging (T.C.A. 53-3-106). Dairy products must be derived from the milk of hooved mammals including, but not limited to: cattle,
June 1982 concerning certain products used in animal nutrition(6), should be included as a category of feed additives and therefore transferred from the scope of that Directive to this Regulation. (13) Implementing rules concerning applications for authorisation of feed additives should take into account different documentation requirements for food-producing and other animals. (14) In order .
