Alternative use of Karakul sheep for pelt and lamb production in Botswana. III. Economic evaluation

Abstract

The comparative advantage of Karakul pelt production over lamb production in a traditional small-holder sheep production system in the Kalahari desert of southern Botswana was investigated. An average flock of 100 ewes produced either 115 Karakul pelts or 92 lambs for sale per annum. Based on average prices for 1987, Karakul pelt production achieved higher returns than lamb production when lamb prices were less than 1.25-times the pelt price (farm gate prices). One-hundred pelt-producing ewes need the same amount of nutrients as 65 lamb-producing ewes with their offspring. On the basis of equal nutrient requirements, pelt production is superior to lamb production as long as the lamb price accounts for less than 1.92-times the pelt price. In addition to prices, the decision to pelt or rear lambs will depend on pelt quality and pasture conditions.