Sheep Farming Feasibility Study in Algeria (in Dinars)

A sheep farming feasibility study in Algeria has five parts: capital (ewes, rams, shed and equipment), yearly running costs led by feed (barley, bran, straw) and the shepherd, revenue (lambs × survival × sale price, best before Eid al-Adha), the break-even point and a sensitivity analysis. The project can be profitable, but the margin is narrow and very sensitive to barley prices and drought.

Many young entrepreneurs and breeders look for a ready-made study to launch a sheep project. Yet the numbers in Djelfa are not those of Tiaret, Setif or the South. It is better to understand the method and fill it with prices from the livestock market in your own wilaya (province). For the general method in more detail, see our sheep project feasibility study.

Cost items in an Algerian sheep project

Capital (paid once):

• The flock: ewes and rams, plus transport, a vet check and quarantine on arrival. Value varies a lot between Ouled Djellal, Rembi and Hamra, and between a young ewe and an old one.
• The shed: a roof against the cold of the high plateaus and the summer sun, with pens for pregnant ewes, mothers with lambs, rams, fattening and isolation.
• Equipment: feeders, drinkers, a water tank, a scale and identification tools.
• Land: if rented, count the rent as a yearly cost.

Running costs (per year):

• Feed: barley, bran, straw, alfalfa, compound feed and minerals, the biggest item, especially when grazing is short.
• Shepherd: wage and food.
• Vet care: vaccinations on the schedule set by your vet and the veterinary services, treatments and checks.
• Water, electricity, fuel and maintenance.
• Transport and market fees.
• Depreciation: a yearly share of the cost of the shed and equipment.

The revenue formula

1. Lambs born = number of ewes × lambs per ewe per year.
2. Lambs to sale = lambs born × survival rate.
3. Lambs sold = lambs to sale − ewe lambs kept for replacement.
4. Lamb revenue = lambs sold × price per head.
5. Add the sale of cull ewes.

Ewe gestation is about 147 days, then the lamb needs several months of growth and fattening, so real income arrives about a year after the ram goes in. Your study must include enough cash to run the farm through that period.

Illustrative example: 80 Ouled Djellal ewes and 3 rams

Illustrative example — replace every figure with prices from your area. These prices and rates are teaching assumptions, not Algerian market prices.

Net profit in this example is about 657,550 DZD a year, close to 9.3% of capital, before land and the owner's own time.

Break-even and sensitivity

Break-even: lambs must bring in 5,282,450 − 480,000 = 4,802,450 DZD. Over 78 head, the break-even price is about 61,570 DZD per lamb, or about 69 head sold at 70,000 DZD.

Then change one factor at a time:

The lesson: feed is the first risk; a one-fifth rise is enough to turn profit into loss. Combine two improvements, feed 10% cheaper and 1.5 lambs per ewe, and profit rises to about 2.19 million DZD, with capital paid back in about 3.2 years instead of roughly 10.7.

What drives sheep prices and margins in Algeria

We do not quote prices: they change week to week and from one wilaya to another. These are the factors that move them:

• Rain and the state of steppe grazing: a good year lightens the feed bill; a dry year raises it and pushes breeders to sell.
• Barley and bran prices: the largest running cost; watch them, buy at the right time and store dry. See how to reduce feed costs.
• Eid al-Adha: demand for rams rises sharply in the weeks before, and a well-finished Ouled Djellal is the most sought-after.
• Lambing rate and losses: feed ewes before mating and care for lambs in their first weeks.
• Age and presentation: teeth, conformation, horns and cleanliness all shape the offers you get.

For any support, facilities or approvals, ask the agricultural and veterinary services of your wilaya before buying, and do not build your study on unwritten promises.

From study to real management

A study is an estimate; good management means comparing it with reality every month. On the Throf platform you record expenses and sales to see net profit and cost per head, track feed stock in kilos, and log births, twins and losses, so you know whether you really reach 1.25 lambs per ewe. See the Throf Algeria page (in French), and if you are just starting, read our guide to a sheep farming project in Algeria. For breeds, see sheep farming in Algeria and Tunisia.