Data of 69 dairy sheep farms (70% Assaf and 30% Awassi crossbred), located in the Spanish Autonomous Community of Castilla y León and grouped for receiving technical advice, were used to study their structure and performance. Farm surface was 55.4ha, on average. Approximately 25% of the farms did not have cultivation land, and the other 75% had, on average, 73ha (from which 67% were devoted to forage). Farms used 2.1 annual work units (familiar, 90%), 493 ewes, and yielded 147,000 L/yr of milk. Farmers were tenant (84%), younger than 45 yr (70%), had new houses, and were grouped in cooperatives (83%). Sheep were fed indoors (occasional grazing only) in modern loose stalls and had machine milking. Planned mating (summer to fall) was done in 91% of farms (hormonal treatment, 54%) but artificial insemination was scarce (23%). Annual milk sales averaged 309 L/ewe (fat, 6.5%; protein, 5.3%; log(10) somatic cell count, 5.7), and milk was sent to local dairy industries for cheese production, and 1.35 lambs/ewe were harvested as milk-fed lambs (lechazo). Artificial lamb rearing was done in 38% of farms (automatic, 81%; manual, 19%). Total mixed rations were used in 33% of farms, and the rest used rationed concentrate (including self-produced cereals) according to physiological stage of the ewes (0.45 to 1.97 kg/d) and ad libitum forage (dehydrated, 70%; hay, 68%; fresh, 25%; silage, 12%). The concentrate-to-forage ratio ranged between 32 and 61%. In total, 68% of farms bought more than half of the forage, and 87% of them bought more than half of the required concentrates. According to structural, productive, and managerial traits, 4 types of farms were differentiated by using multiple correspondence analysis and cluster analysis. Type groups were: 1) large-surface farms, devoted to cereal and forage production, predominantly with Awassi crossbreed sheep and a high level of self-consumed commodities (12% of the farms); 2) large flocks with intermediate farm surfaces devoted to forage production and predominantly with Assaf sheep (30% of the farms); 3) high-yielding farms, with intermediate sized flocks of Assaf sheep and very intensive management (42% of the farms); and, 4) no-land farms predominantly with Assaf sheep (16% of the farms). In conclusion, the dairy sheep farms studied showed more adoption of intensive production systems than traditional farms, which resulted in higher milk and lamb yields. Despite all of them being based on familiar units, as traditional farms, they were highly dependent on external resources and became more vulnerable, faced with future uncertainties of the market.

Twenty dairy sheep farms of Assaf breed, located in the Spanish autonomous community of Castilla y León and included in a group receiving technical support, were used to study their production cost structure and to assess their economic profitability during 2009. On average, farms had 89.2±38.0 ha (own, 38%), 592±63 ewes, yielded 185.9±21.1×10(3) L/yr (i.e., 316±15 L/ewe), and were attended by 2.3±0.2 annual working units (family, 72%). Total annual income was €194.4±23.0×10(3)/yr (€1.0=$1.3) from milk (78.6%), lamb (13.2%), culled ewes (0.5%), and other sales (0.8%, wool and manure), and completed with the European Union sheep subsidy (6.9%). Total costs were €185.9±19.0×10(3)/yr to attend to feeding (61.6%), labor (18.2%), equipment maintenance and depreciation (7.6%), finances (3.0%), animal health (2.5%), energy, water and milking supplies (2.2%), milk recording (0.5%), and other costs (4.4%; assurances, shearing, association fees, and so on). Mean dairy sheep farm profit was €8.5±5.8×10(3)/yr (€7.4±8.3/ewe) on average, and varied between -€40.6 and €81.1/ewe among farms. Only 60% of farms were able to pay all costs, the rest had negative balances. Nevertheless, net margin was €31.0±6.5×10(3)/yr on average, varying between €0.6 and €108.4×10(3)/yr among farms. In this case, without including the opportunity costs, all farms had positive balances. Total annual cost (TAC; €/ewe) and total annual income (TAI; €/ewe) depended on milk yield (MY; L/ewe) and were TAC=161.6 + 0.502 MY (R(2)=0.50), and TAI=78.13 + 0.790 MY (R(2)=0.88), respectively, with the break-even point being 291 L/ewe. Conversely, farm TAC (€/yr) and farm TAI (€/yr) were also predicted as a function of the number of ewes (NOE) per flock, as TAC=18,401 + 282.8 NOE (R(2)=0.89) and TAI=330.9 NOE (R(2)=0.98), with the break-even point being 383 ewes/flock. Finally, according to the increasing trend expected for agricultural commodity prices, it was calculated that a 10% increase of concentrate price will require 5.2% milk price increase for constant profit. Similarly, a 10% increase of forage price will require 2.0% milk price increase to maintain profitability. Under these scenarios of increasing the commodity prices of key feedstuffs, a change of flock feeding should be expected to compensate the losses in farm profitability. Most Assaf dairy sheep farms studied were economically profitable, with flock size, milk yield, and feeding costs key for their profitability.