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Starting a Dairy Goat Business










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A Guide for Farmers



STARTING A DAIRY GOAT
BUSINESS

A GUIDE FOR FARMERS
A Publication by the

Wisconsin Department of Agriculture, Trade and Consumer

Protection




August, 2008



281 1 Agriculture Drive PO Box 891 1 Madison, WI 53708-891 1 608-224-5012 wisconsin.gov



The Wisconsin Department of Agriculture, Trade and Consumer Protection gratefully
acknowledges the efforts of the writers of this publication, all of whom donated their time
to assist in the on-going development of the dairy goat industry in Wisconsin and the
region.



TABLE OF CONTENTS



Page



Introduction 1

Brad Harrison, Ag Consultant; Retired Farm Business and Production
Management Instructor, Blackhawk Technical College

Personal Assessment 3

Kathy Schmitt, Job Counselor, Department of Agriculture, Trade and
Consumer Protection

Goal Setting 6

Laura Paine, Grazing and Organic Agriculture Specialist, Department of

Agriculture, Trade and Consumer Protection
Researching the Industry and Determining Feasibility 13

Brad Harrison, Ag Consultant; Retired Farm Business and Production

Management Instructor, Blackhawk Technical College
Identifying Your Support Team 18

Brad Harrison, Ag Consultant; Retired Farm Business and Production

Management Instructor, Blackhawk Technical College
Keeping a Healthy Herd 24

Dr. Chris Duemler, DVM, Brodhead, WI Veterinary Clinic
Assessing Farm Land 28

Frank Friar, Beginning Farmer Program, Department of Agriculture,

Trade and Consumer Protection
Determining Labor Needs 32

Frank Friar, Beginning Farmer Program, Department of Agriculture,

Trade and Consumer Protection
Practical Facilities 37

David W. Kammel, Professor, Biological Systems Engineering, University of

Wisconsin-Madison

Financing Your Farm 42

Laurie Makos, Farm Loan Manager, USDA Farm Service Agency
Writing a Business Plan 50

Brad Harrison, Farm Business and Production Management Instructor,

(Retired), Blackhawk Technical College
Culls, Kids, and Breeding Stock 60

Judy Moses, Shepherd Song Farm
Producing High Quality Goat Milk 68

Dr. Pamela Ruegg, DVM, MDVM, University of Wisconsin-Madison
Marketing Milk 75

Larry Hedrich, Producer and President, Quality Dairy Goat Producers

Cooperative of Wisconsin



Working with Your Processor 79

Joanne Mac Neill, Corporate Director of Quality Assurance and Government
Affairs, Woolwich Dairy, Inc.

Exit Strategies 82

Laurie Makos, Farm Loan Manager, USDA Farm Service Agency

Appendices

Checklist to Start a Goat Dairy — Appendix A 85

Words of Wisdom from the Field — Appendix B 91

Suggested Do's and Don'ts — Appendix C 95

Employment Application — Appendix D 96

At-Will Agreement — Appendix E 98

Performance Evaluation — Appendix F 100

Wisconsin Dairy Goat Resource Guide — Appendix G 101

Balance Sheet — Appendix H 102

Cash Flow Worksheet — Appendix I 103

Goat Milk Producer Quick Reference — Appendix J 104



Introduction

One of the biggest problems facing someone
getting into the dairy or meat goat business
is recognizing that it is not a quick easy
business to get into and operate. Too many
people see goats as nice, easy to manage
animals that take little in the way of
facilities, land, or labor.

While some of this may be true in
comparison to a bovine dairy, much is just
blue sky speculation based on wants, not
realities. We must determine what our
dreams and desires are in the context of the
sober realities of the real business world. A
lack of knowledge and planning has caused
the short-term run of more than one goat
operation, in particular new dairy goat start-
ups.

Anyone interested in goats needs to spend
some time with several people in the
business. You need to be knowledgeable
about the business needs, husbandry needs,
markets, and do a careful assessment of
financial needs.

Attitude is critical. You must ask yourself:
"Am I willing to work long days 7 days a
week all year?" Yes, after the main kidding
season is over, labor goes way down but the
industry movement is to year-round
production, or at least a spreading out of
breeding and kidding seasons to even cash



flow and the labor needs of taking care of
hundreds of kids over a short period of time.

Key Questions

What are your goals ?

• Is this a supplemental income or
intended as a family support activity?

• Do you plan on all family labor to be
concentrated in the business or will you
expect outside income for the short term
or long term?

• How much money do you need for
family living?

What is your market?

Identify if a market exists for goat milk or
its products. Is there a market for kids,
and/or meat goat sales for dairies and/or
meat goat operations? Be careful in
determining the future stability of breeding
stock revenue when considering long-term
revenue. The meat animal market is very
unique compared with other meat markets
due to the demographic make-up of meat
goat consumers, as well as infrastructure
immaturity.

What are your capital needs?
Identify capital needs. This includes facility
needs along with all related equipment
needed to handle the animals, as well as
meet government regulations. In addition, if
breeding stock is to be purchased, the cost of
all purchases should be projected out over
the time needed to meet the desired herd



1



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
its stable phase.

What financial resources do you have to
put into the startup of the business?
In order to take stock of your current
financial situation, you will want to
complete a balance sheet as well as assess
income sources. In evaluating your
financial resources, be sure also to take
stock of non-cash support, such things as
family or friends' labor and shared
equipment use. Do a multi-year budget
including start-up, a transition phase (2 nd to
5 th year as needed), and a long term typical
annual financial plan.

What support resources are available?

There are many resources available to you
including: UW-Extension Services, the
Wisconsin Technical College System FBPM
program, your field representative from your
milk plant or marketing co-ops, veterinary
expertise, financial experts, fellow producers
and other producer-based support groups

Husbandry Issues

Below are a few husbandry-related items to
keep in mind as you build your herd.
1. Genetics (or lack thereof)

• Care must be taken in buying stock try to
get performance-based stock.

• Genetic progress by A.I. is possible but
industry support is sporadic and many



products available to other species are
not always available.

2. Health information is growing in
quantity and quality but still awaits
standard protocols. Few veterinarians
have extensive knowledge and many
producers state opinions based on beliefs
rather than sound science.

3. Nutrition is hurt by a lack of skilled
industry support and lack of local
nutritional trials specific to dairy goats.

4. Facility needs and options are being
developed on the fly by many producers.

There is a need for information to be
collected, verified, and disseminated to other
producers if the industry is to develop to its
potential. Too many new startups fail due to
poor information and unfounded
expectations.

The bottom line is that this is an emerging
industry, with much potential, but many
unanswered questions at this time. The
ability of this industry to develop will
depend on the emergence of key support
structures, and markets, with top performing
individuals involved in each of the key areas
identified here.

This manual should help you as you begin to
research the viability of launching a dairy
goat enterprise on your farm.



2



Starting a Dairy Goat Business



Personal Assessment

Will a dairy goat operation fit your personal
and family lifestyle? Answering this
question is one of the first and perhaps most
important question you need to consider
before entering into this enterprise. How
well this type of operation meets your
personal and family values plays heavily
into your job satisfaction. Assessing your
skills, attributes, and resources will help you
identify your strengths and limitations and
lay the groundwork for setting goals, finding
resources, and acquiring new skills.



Values Inventory

Values are the basic principles you hold that
give meaning and purpose to your life.
They are essential to your happiness and
satisfaction so it is vital that they be a part of
your job choice. Below are some values that
could play a part in your satisfaction as a
dairy goat farmer. Consider them in terms
of how important each of these values is to
you.

• Approval: have others think favorably
about what you do

• Autonomy: self-government

• Creativity: be innovative, imaginative,
create something new

• Family: being with family members

• Independence: do things on your own
without a lot of orders and direction
from others



• Learning: gaining knowledge,
comprehension or mastery through
experience or study

• Material Status: possessing financial or
material possessions

• Security: assured of keeping job, free
from concern of loss of resources

• Skill: proficiency; expertness

• Variety: having a number of different
things to do

• Wealth: accumulation of money,
possessions, property

When you think of what's involved in dairy
goat farming, how closely does that match
your values? Your satisfaction in this
enterprise will have a lot to do with how
closely you are able to incorporate your
most important values into your lifestyle.



Resource Inventory

In addition to considering your values, there
are a number of questions you can ask
yourself and your family members to help
you determine if a dairy goat operation will
fit your lifestyle.

ATTRA (Appropriate Technology Transfer
for Rural Areas), National Sustainable
Agriculture Information Services, lists a
good set of questions to help you evaluate
your resources in their "Evaluating a Rural
Enterprise" Marketing and Resource Guide
(May 2002) available on the web at
http://attra.ncat.org/ .



3



• Do I have time to devote to dairy goat
farming?

• Does the workload correspond with the
time of year I want to work?

• Will a dairy goat enterprise complement
my current enterprises?

• Do I have the skills and experience
necessary to do this?

• Have I managed a business before?

• Do I like to supervise people (if my
operation will require it)?

• Do I have enough personal energy to do
this?

• Can I count on my family members for
support?

• Do I care what the neighbors think about
dairy goats?

• Why do I want this enterprise?



• Am I willing to spend as much effort in
marketing as in production?

• Will I have to do the major part of
marketing?

• Will it require a lot of effort to prepare
the product for the market?

• Is this something I will enjoy doing?

• Is there enough variety in the production
and marketing activity to keep this
interesting?

• Is a dairy goat enterprise adaptable to
my area?

• What are the sources of risk in this
enterprise (production, financial,
marketing)?

• Am I willing to work with those risks?
Is my family?



More excellent resource questions come
from PRIMER for Selecting New
Enterprises for your Farm, by Tim Woods
and Steve Isaacs, Agricultural Economics
Extension, No. 00-13 August 2000.
University of Kentucky Cooperative
Extension.

• Do I have the "know how" to produce
and sell this product?

• If I don't "know how", do I know who to
ask?

• Am I willing and able to approach
different people for advice?

• Does market research and development
appeal to me?



Consider all of these questions and your
personal and family values. Then, list 3
good reasons for getting into a dairy goat
enterprise.

1.

2.

3.



4



Does this still look like a good fit for you?
Okay, now list 3 good reasons for getting
out of (or not getting into) a dairy goat
enterprise.

1.

2.

3.

Use this analysis to help you make the
decision to move forward with your plans or
to shift directions. If you do move forward
with a dairy goat operation, keep the reasons
for getting out somewhere handy. The
information and exercises in this section
should be reviewed from time to time to
help you plan much more effectively for
continuing your operation or to plan for an
orderly exit.



Goal Setting

"When a man does not know what harbor
he's making for, no wind is the right wind. "

— Seneca

As you looked through the table of contents
of this start-up guide, I'll bet 'goal setting'
wasn't the first place you turned. Most of us
are 'do-ers' and would prefer to jump right
to the part where the goats are in the barn
and you're ready to milk. We can easily
visualize that end point, but the process of
transforming your dream into a reality starts
with some thoughtful introspection and
planning. Making sure your aptitudes and
values are a good fit with the requirements
of this enterprise will not only make it more
likely that you'll reach that dream, but it will
make the journey there more fun.

Setting goals and mapping out a plan will
enhance your chances of success. Just as
important as setting goals are the decisions
you make every day that will lead you either
toward or away from those goals. Most
successful farmers are quite deliberate about
setting goals and making decisions. The
development of their farm enterprise begins
with a vision, but is accomplished through
the more mundane steps of business
planning and farm 'staff meetings' to
monitor progress and make adjustments.

Good communication is key to the whole
process. Establishing a new farm enterprise



can involve significant changes in your
financial status and your quality of life, and
it may require changes in relationships
among decision-makers. When my husband
Bill and I started farming in our mid-forties,
we suddenly found ourselves needing to
communicate in a whole new way. Before
then, with our separate careers, we'd never
worked together on a project so large and
complicated as running a farm and a
business. We expected to learn a lot about
pasture management and animal husbandry,
and have been surprised at how much we've
learned about each other. It's been fun and
challenging.

Three Keys to Success

According to author and business professor
Jim Collins, a successful business happens
when you bring together:



1. What you are deeply
passionate about.

2. What you can be the
best in the world at.

3. What drives your
economic engine.



What your farm actually produces is less
important to your success than aligning
these three things.



6



This chapter will use these keys to provide a
template for setting goals, making decisions,
and monitoring your progress toward
achieving success.

Management Team

Start by deciding who your 'decision-
makers' are going to be. Your decision-
making team should include everyone who
has a stake in the farm enterprise's success
or can contribute to that success. Your
spouse and other family members, business
partners, and, in some cases, hired help
should all be part of the team. Even if
family members aren't directly involved in
the day-to-day operation of the farm, it's
worthwhile to involve them in planning and
management. Having everyone's

wholehearted support for the enterprise can
make the difference between success and
failure. You might consider including
children as well. Being a member of the
farm team can contribute very positively to a
child's growth and education.

Inventory Resources

As you begin setting goals and developing a
business plan, it's helpful to do an inventory
of resources available to you. Call a
meeting of your team and do some
brainstorming. What are the resources you
have at your disposal? List your land,
equipment, animals and other physical



resources, and the labor and money you
have available, including lines of credit.

Now think a little more broadly: What
information resources do you have access
to? Local libraries, Extension offices, crop
consultants, the Dairy Goat Association? Do
you have neighbors that you can trade work
with 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 are
coming to farming from another career, you
have skills that can be of value to your farm
enterprise.

For example, my neighbors, who are
building a farmstead bottling plant for their
cow dairy have matched the unique skills of
individual family members with the
appropriate jobs. James, the outgoing
brother, is in charge of the bottling and retail
store. Rob, who's more reserved, takes care
of the milking herd. Wives Jenny and
Rebecca raise the calves and do the book-
keeping, respectively, and their semi-retired
dad fills in where needed. They pull in a
father-in-law who lives down the road to
help with fieldwork. So, being 'artistic' or
'good with people' or 'mechanically-
inclined' are all resources that may come in
handy as you build your business.



7



Creating a Vision for Your Farm

Think about goal setting like planning a trip.
You start with the end point — where do you
want to travel to? Then you fill in the
details of how you're going to get there.
The goal-setting process should start with
the 'finished product' and work backward to
fill in more concrete timeframes and
objectives.

So, start with that dream — what does it look
like? Where do you want to be in 5 years?
10 years? What will your farm look like
when it's successful and prosperous?

Now... do the rest of your decision-makers
have the same vision? Does a goat dairy
look the same to them as it does to you?
Are they motivated by the same things?
Establishing goals that accommodate
everyone's motivations will ensure that
everyone will give their best toward the
effort.

This 'vision statement' is intentionally
values-based and is not necessarily very
concrete. It embodies the passions you
bring to farming and it should address your
values — how you feel about the land and
animals under your care, the food you
produce, or the consumers you're producing
for.

Once you have a shared vision for your
farm, try to boil it down to a few sentences.
You'll find that working with your partners
and family to verbalize your goals and



committing them to paper fundamentally
changes how you think of them.



Financial Goals

Most new businesses succeed because their
managers are motivated by more than
money and this is probably more true about
farming than about many other types of
businesses. Frankly, farming is hard work
and the likelihood of 'getting rich' is pretty
slim. So financial goals should be balanced
with personal goals. Your farm enterprise
must be profitable to be sustainable, and
setting realistic financial goals are a means
to achieve those other goals.

Money is often a difficult subject to talk
about, but it's essential to have this
discussion with your farm partners and
family before you embark on this enterprise.
Is this enterprise intended to be your
primary or sole source of income? Or will
you operate your goat dairy as a sideline to
another farm enterprise or an off-farm job?
How much will it cost to establish the
business and will you need to borrow money
to do so? At this point, you should focus on
general principles on how financial issues
will be handled. The financial details will
be dealt with during the business planning
process.

For example, when we started farming, Bill
and I both worked off the farm and our goal
was to build a beef enterprise that could



8



generate a modest retirement income of
$15,000 to $20,000 per year. We planned to
develop it slowly, since we had over 10
years to work on it and were determined not
to incur debt in the process. When Bill was
laid off from his job four years ago, we had
to revisit our financial goals and make some
adjustments. We sped up the timeline, but
retained our conviction to avoid borrowing
money.

Personal Goals

So if we're motivated to farm by more than
the lucrative financial benefits, what are
those motivations? It's human nature to try
to separate personal goals from business
goals, but I would argue that it is important
to bring those personal goals out and make
them a part of your business goals. Here's
why: few people pursue financial success for
its own sake. People earn money to support
their quality of life. In some professions,
it' s relatively easy to separate your work and
financial life from your personal life. In
farming, that's almost impossible. On a
dairy farm, farm work and quality of life are
inexorably entangled. Building personal
goals and needs into your business plan
makes sure the farm will be sustainable.

Most people are happiest when they're
meeting some fundamental personal needs
that we all share. In addition to financial
security, these include: personal growth
(challenging yourself to learn new skills,



gain new knowledge), contribution (giving
something of yourself to your community),
relationships (could be with customers,
family, community). Think and talk about
these things with your family and partners.

For example, most dairy farms milk twice a
day, seven days a week. Will those evening
milkings allow you the time to go to your
kids' band concerts and soccer games? Will
you be able to continue with your church
activities or other charitable work? Make
sure your new farm operation is flexible
enough to allow you to meet those important
needs.

Putting it Together and Making a Plan

Finally, put your financial and personal or
family goals together into a description of
where you want your operation to end up.
Developing a farm business will take time
and it's important to 'keep your eyes on the
prize' as you move forward.

For Bill and I, this statement sums up our
goal: To establish a direct market beef
enterprise generating about $15,000 a year
in net income and providing us with an
opportunity to work together, enjoy the
health benefits of farm work, and
sustainably produce good tasting, healthy
beef for local customers.



9



Objectives and Timetable

Next, you need to create a realistic timetable
for achieving your goal. This will depend
primarily on money and time. Where will
the money come from? Are you going to
borrow or do you need to generate funds to
establish the business from on-farm or off-
farm income? How much time do you have
to devote to building the business? Do you
work off-farm? What are your other time
commitments?

Once you have a timeline in mind, you need
to determine the steps needed to get to that
goal. These are more concrete, specific
objectives. For each step, establish a
deadline for completion and make someone
accountable for completing the task. Plan to
have periodic check-ins to make sure the
plan is on track. Monitoring your progress
and correcting course are important to the
ultimate success of the project. The length
of the timeline will be dependent on the
character of your enterprise and how you
intend to finance it. The length of the
timeline determines how often you need to
'check-in'.

The timeline Bill and I established for
ourselves related directly to our goal of
generating a retirement income. We had
plenty of time (about 10 years) and were not
interested in borrowing money, so we
planned to grow our business slowly on a
'pay-as-you-go' basis. It made sense to us
for our plan to have three 'phases', each



covering 2 to 3 years. Here's what it looked
like:

Phase 1 (2002-2005):
Fence in first 30 acres.

Establish pasture.
Buy 12 bred cows.

Buy heavy steers to finish on pasture (to

build a customer base).

Rent out the rest of the farm (50 acres).

Phase 2 (2005-2007):

Fence and seed down field across the road
for pasture (about 15 acres).
Continue renting out other 35 acres.
Save heifer calves to grow herd.
Begin selling own bull calves for meat.
Phase out buying steers.

Phase 3 (2008-2010):
Phase out renter.

Fence and seed down remaining 35 acres.
Continue growing herd with our own
heifers.

Continue selling our own bull calves for
meat.

Each year, we'd sit down and assess what
we'd accomplished and whether we needed
to modify the plan. We made changes, and
you can expect to as well. The plan is a
guideline, to keep you on track, but reality is
always different from what we imagine and
adjustments are always necessary. But if
you're deliberate in your planning and



10



deliberate in your monitoring, you won't
lose sight of your ultimate goal.

Decision Making

The final piece in the goal setting process is
decision-making. Each of us makes
hundreds of decisions each day, and while
most of them are trivial (what should I have
for lunch?), a few thoughts about how we
make decisions might help you make the
important decisions more wisely.

The big decision to enter into this endeavor
is built on hundreds of smaller decisions,
each of which has the potential to move you
toward or away from your goal. Will you
retrofit an existing building for your milking
parlor or build a new one? Will you
produce your own feed or buy it? Who will
you buy it from? What breed of goat will
you use? Where will you sell your milk?

Most people make decisions like these
primarily on a financial basis, but many of
these decisions have the potential to
influence not only how well this new
enterprise performs financially, but can have
a profound effect on your quality of life and
family needs. As you consider these
decisions, keeping in mind the overarching
goals you have set will help you stay on the
right track.

Here again, sometimes a more formal
process can help you consistently get good



results with your decision-making. Rely on
your management team to help. Ask
yourself: what are my options in making this
decision? Which of these options will move
me farther toward my ultimate goal? Which
is more affordable financially? Which one
will is more efficient in terms of time and/or
money? Which options do my family
members and/or partners prefer? Which one
best reflects the values and mission of our
farm?

As with goal setting and monitoring,
decision-making is best done with family
and partners involved. Good
communication and a clear vision will keep
you on track to your goals, and will go a
long way toward making your new
enterprise not only financially successful,
but also a rewarding endeavor for all
involved.

Summary

Goal setting is a means of establishing a
deliberate, effective process for building
your farm business. It involves the steps of
identifying decision-makers and resources,
establishing a shared vision, setting long-
term goals, developing a timeline and short-
term objectives, and monitoring your
progress through sound decision-making.
Throughout the process, communication is
critical among your family members and
partners. Successful businesses are founded
by people who are both passionate and



11



deliberate about what they're doing. And
don't forget — part of the fun is getting there !



To Build Your Dream

• Establish a plan to build
your business

• Identify decision-makers

• Identify resources

• Establish a shared vision

• Set long-term goals

• Develop a timeline

• List short-term objectives

• Monitor your progress

• Practice good
communication with
decision makers and
resources



"The greater part of all the mischief in the
world arises from the fact that men do not
sufficiently understand their own aims. "

— Goethe



Researching the Industry and
Determining Feasibility

If you want to get into the goat business, the
question you must ask yourself is "why?" Is
it to make use of resources you already
own? To make use of extra time? As a
hobby or as a way to make a living? These
questions lead to the ultimate questions of:

• What are the possible products to sell?
(Meat, milk, cheese, soap etc.)

• What support is out there in production
supplies, technical support, markets?

• What is the potential profitability?

What is the State of the Industry

At the present time the meat and milk goat
sector is the fastest growing segment of the
animal agriculture industry. In Wisconsin,
as of late 2006, there were 165 dairy goat
herds, with 79 percent of those planning to
expand in the future. In addition, recent
goat industry events have drawn large
numbers of existing and potentially new
producers. While goats were one of the first
domesticated animals, the goat industry
must be viewed as a young, developing
market segment. If current trends continue,
the goat industry may continue to grow and
provide opportunities to many farms.

One of the first reasons for growth in the
goat industry is a desire by modest to small
farm owners and operators to make use of
their properties. Goats fit this niche for



many reasons including the lower cost of
facilities and infrastructure needed for goat
enterprises versus most other livestock
enterprises.

Many view raising goats as a return to the
land as part of a new-age back-to-the-earth
concept. Others see this as a profitable
business move to supplement or become
their primary income. Regardless of the
motive, the result is a strong interest by
many to get into the business or expand
already existing operations. But this begs
the question of what is driving the demand
in the market.

Who Consumes Goat Products?

The majority of Americans have not been
active consumers of goat products. This is
primarily due to the fact that most
Americans come from culinary and ethnic
backgrounds that include little or no
consumption of goat meat or goat dairy
products.

However, this is slowly changing. Many
young Americans are looking for a broader
range of foods. This may be due to exposure
from growing ethnic diversity and expansion
of offerings on the grocery shelf and in
restaurants, or for health reasons. In
addition, many Americans are looking for
food from what is perceived to be smaller
family farms. In general goat production fits
this perception.



13



Probably the most significant factor in
growth of demand at this time is the
dramatic increase in ethnic populations and
their cultural familiarity and desire for goat
products. Not only are the numbers of these
groups growing but their purchasing power
is increasing. These factors create a
significant demand increase that appears
will be sustained for some time to come.
The largest goat-consuming ethnic
populations in the United States are the
Hispanic, Muslim, and Caribbean Island
populations.

These facts point to a great deal of potential
for prospective goat producers, processors,
and consumers. Still, much needs to be
done for this young and growing industry to
progress. The following list of advantages
and disadvantages of goat production are
adapted from an excellent study by West
Virginia University called, "Feasibility of
Goat Production in West Virginia" by
Doolarie Singh-Knights and Marlon
Knights.

Advantages for Goat Production Systems
1. Increasing demand

Demand for goat meat has been expanding
in the US since 1994. There has been an
increase in goat meat imports of 30% per
year. In addition, domestic meat production
has doubled since 1980. In 1991 the US was
using 2,000 to 3,000 liters of goats' milk
weekly for cheese making and was
importing 500,000 kg of cheeses worth $15



million annually from France alone. At the
same time, four million liters was being
turned into dry and powder milk and 2.5
million liters was used as fluid milk.

In 2006 Wisconsin dairy farmers sold
271,250 CWT of milk. This shows the
tremendous milk production increase for the
dairy state, with demand continuing to
increase. The demand for goat products such
as fine cheese, soaps, and other products has
seen growth that opens opportunities for
new entrants.

2. Rising prices

The annual price paid per pound of goat
meat increased in the period of 1999 to
2004, increasing $0.15 per pound in 2003
and 2004. Milk prices in Wisconsin
averaged $27.90 in 2006. With management
changes to extend the milking season year
around and concentration on high quality,
this price can be improved upon. In
addition, diversification through farm
produced artisan products such as soap,
yogurt, ice cream, and cheese offer unique
opportunities for some.

3. Reduced competition

Sheep production is decreasing, thus
reducing competition, but putting some
small farms in a financial bind. With the
increase in goat meat demand, these farms
have a new option. Many small bovine
dairy operations have closed or are in the
process of closing. They provide Wisconsin



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farmers a chance to use these facilities
suited for dairy but too small to expand in
the dairy cow business.

4. Relatively low capital investment

Goat production requires relatively lower
inputs or capital and physical resources than
other livestock systems. This is beneficial
for smaller and part-time farmers. In
addition, it allows for expansion to
commercial size operation with a lower buy-
in cost. Obviously, the type of product you
wish to market will influence the costs.
Meat goat finishing requires less investment.
A meat goat breeding herd requires more
investment. A dairy operation is even
costlier. Adding processing equipment for
cheese or other products makes for even
more inputs than a regular dairy operation.
You will need to assess the options open to
you based on your interests and resources.

5. Efficient eaters

Goats are efficient converters of food intake
to make meat, milk, hide, and other
products. Goats can forage on a wider range
of plants than other species, thus making
good use of land that is marginal for other
uses. However, low quality forages will
limit milk production, thus lowering return
on your investment.

6. Decreased geographic disparity

We are seeing reduced geographic disparity
in markets for goat products such as meat,
and goat milk as ethnic consumer



populations become more widely
distributed. In addition, the marketing
efforts of various individuals, producer
groups, and companies, while still limited in
scope are widening the market. This should
increase demand while holding costs of
marketing products down.

7. Year-round breeding potential

Effective reproduction management can
allow for year-round production whether it
is for meat, milk and dairy products, hide
and fiber or other products. This will reduce
seasonal price impacts, and greatly improve
the efficient use of resources.

Disadvantages of Meat Goat Production

1. Overall low demand

Overall consumer demand for goat meat,
milk and dairy products in the US is
relatively low and tends to be geographically
concentrated. Thus, increases in production
must be balanced with consumer demand
and the ability to get the product from the
producer to the consumer in an economical
manner.

2. Seasonality

Seasonality of production, due to seasonal
breeding, leads to several important issues.
Production of market age animals and milk
is not evenly distributed throughout the year.
For most major grocery chains, this limits
shelf space as they demand a consistent
reliable supply year-round.



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For meat goats, the traditional production
cycle often does not meet the holiday and
special events needs of ethnic groups. For
dairy producers and plants, it leads to
inefficient use of facilities and thus pricing
systems that reward out-of-season
production and negative prices during the
seasonal flood of milk.

3. Limited infrastructure

Limited industry infrastructure can be a
factor. There are only a few milk plants that
handle goat milk. Thus, if a plant closes you
may find that there is no alternative
available to switch to. In the case of meat
products marketing to some ethic groups
severely limits where meat goats can be
processed due to religious requirements of
slaughter. Very few slaughter plants are
presently setup to meet these requirements,
which adds to shipping costs, and other
problems.

If you are going to home produce and sell,
you must meet legal requirements,
standards, and facility requirements, in
addition to finding markets on your own or
as part of a cooperating group of producers.

4. Limited support

Limited production and marketing
information is available from Universities,
DATCP, and other industry sources. This is
due in part to the relative youth of the
industry and its recent growth into a more
significant industry. These issues are being



addressed and more support will develop in
time as the industry matures.

5. Increasing costs

Increasing cost will be a major impact. As
we see the cost of land, fuel, and related
inputs increase, this will impact the buy-in
cost and operating costs of goat businesses.
The more it costs to take the raw product to
finished product, the lower the profit margin
will be. New producers will need to
consider this in their planning.

Recommended reading on the industry is a
study done by West Virginia University in
2005 called Feasibility of Goat Production
in West Virginia — A Handbook for
Beginners, bulletin 728, available over the
internet. This publication deals mainly with
meat goats but does an excellent overview
of the industry.

Plan of Action

A plan of action will include an overview of
the state of agriculture as a whole. This will
include the overall economics for the
foreseeable future. This will be influenced
by government policy, the economy as a
whole, and economic trends in costs and
market prices. The USDA statistical
reporting service and other branches of the
USDA along with many agricultural
publications may be of help in assessing the
overall industry.



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Next you will need to narrow your focus to
your areas of interest: meat, milk, or other
products. From here, you can begin your
search for information. You need to identify
the supporting infrastructure, markets, and
technical support. The following should
help guide you.

What Are My Options?

You must determine what area of goat
production you are interested in. From this
you can begin to research that market
segment.

Ask yourself; is there a demand in my area
for this product? If there are no buyers or
processors in your area are there other
potential markets? Just the desire to
produce and sell does not mean anyone will
buy or pay you what you need. The
Wisconsin Department of Agriculture, Trade
and Consumer Protection (DATCP), along
with other producers and professional
support groups, can often give you
information related to the business and
contacts to begin your search. Get as much
information as you can, on the need for new
producers, the prices being paid and the
expectation for the future. Do not check just
one company or buyer.

If you are looking at specialty production of
items ranging from artisan cheese; to soap,
fiber and leather; to any of many goat
products, you may have to develop your
own markets. This can be very rewarding,



but as many have found out, it can be a full-
time job all on its own. Take time to visit
with others who have taken this path. Visit
potential venders to survey their interest.
Carefully assess your time and ability to
handle this area of the business. Often you
will find a group of similar individuals that
have been down this road and can give
valuable information on "do's and don'ts."

Conclusion

The goat industry as a whole is a very young
industry in comparison to the other areas of
main stream agriculture. Because of this,
there are often more questions than answers,
but that should never stop you from asking
and digging for information. It is critical
that you be very focused and attempt to sort
the facts from the chaff. Use the Check List
(Appendix A) to help you through the
feasibility process.



Critical Questions to Research

• Are more producers needed?

• What price can producers expect
to get for their milk?

• Are current producers confident
about the industry and its future?

• Are goat farms profitable?

• Are farmers getting out of the
business? If so, why?

• Is there help out there for new
producers?

• Do I really want to do this?



17



Whenever you start something new,
especially a business, it helps to identify
expertise and available help from more
experienced individuals, or specialists. No
matter who you are you cannot know
everything nor have all the skills necessary
to succeed on your own. With this in mind,
it is important to identify sources of
knowledge, skills, and support to help you
succeed. These resources can come from
many sources which will be discussed in this
section. Each source has its purpose
whether it is education, technical knowledge
and training, professional services, or
general support. A wise individual will
determine needs and make the best use of
these resources to reduce stress and promote
the greatest chance
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