The four principles to success in the meat goat ranch industry have identified by Dr. Rick Machen, Ph. D., Associate Professor and Livestock Specialist.
#1. Must have a VIABLE MARKET for your product.
#2. Market price must exceed COST OF PRODUCTION.
#3. The goal for REPRODUCTIVE PERFORMANCE is at least one merchantable unit per exposed female.
#4. Match GENETIC POTENTIAL FOR GROWTH with productivity of the environment.
What is a good price?
A.: It depends. In this discussion, it is assumed good and profitable are synonymous. If so, a good price is an amount greater than the cost of production on an equal unit basis (i.e. $/cwt, ยข/lb, $/head).
B. It differs across operations. Seldom could one find two meat goat operations with an identical cost of production. Therefore, neighbors discussing the market across the fence is a little ambiguous without inclusion of costs of production.
C. It is relative to the current cost of production not historical or projected market data. Most of the costs associated with producing a commercial kid are incurred by its dam: major categories include land, labor, feed and vet/health. Land and labor tend to be fixed costs while feed (including hay and cultivated forage production) and vet/health costs are more variable. The cost of doing business goes up a little each year and with each subsequent kid crop. Characterization of the price received (good or bad) implies consideration of the expense incurred to produce the product marketed.
Parallel to Ponder: It matters not that gross income from a group of 40 lb kids is $40 per head IF it cost $45 per head to produce and market them. Subsequent experiences of similar magnitude will jeopardize long-term enterprise profitability/success.