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News, Updates & More!

Breeding Rabbits - The difference between a hobby & a business

8/14/2014

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​Recently in a House Rabbit Society Facebook Group, I was accused of breeding my rabbits for the sake of making a profit. In an effort to come to the defense of each and every one of us seasoned breeders who breed to improve upon an individual breed standard for the sake of showing the animal at local or national ARBA shows, and to explain to those who are new coming into this hobby, I thought I would clarify the difference between a hobby and a business and what it will take to make a profit from raising rabbits.


Of course, just like in any animal hobby, there are "backyard breeders". These are people who do not take into account a standard of quality. These breeders do NOT know their breed standard, and if they do, they really dont care about it. Most BYB often do not show their animals, or count their fair wins as top quality. In the rabbit industry, the American Rabbit Breeders Association is the ONLY rabbit club in the US that recgonizes rabbit wins, championships, etc. A rabbit is not a true Champion unless awarded by ARBA.


I can only speak for myself, in regards to my own breeding and sales policies. This may be different for each rabbit breeder.


I breed my does once a year, usually between shows. Here in Montana we have a couple of months in which there are no shows, between June and September. There are occasions where I will have a couple does bred twice during this time. Usually to repeat a litter, or because I plan on moving that doe on, and want just one more kit from her. Also as a policy in my barn, when I breed, each litter has been planned out way before the breeding takes place. I compare judges comments, and each individual animal to be able to correct faults, and improve. Sometimes I will plan for months ahead before any breeding takes place. Additionally, each breeding is done with the soul intent of keeping at least one (sometimes two) from each litter. No breeding is done here without purpose.


To get into the nitty gritty of it all in regards to costs, expenses vs income....I feed my rabbits Purina Show Feed. Each bag costs me $22.99. Having a large barn, and many occupants, on average I go through two 50# bags of feed a week. This number increases during the summer months when we have litters. So in general my cost of feed is:


35 weeks of buying 2 bags of feed a week: Total Cost - $1069.30
17 weeks of buying 3 bags of feed a week: Total Cost - $1172.49


Now Purina offers, if you are a member, by saving the UPC Proof of Purchase points on each bag, you can send in for a coupon for one free bag after you earn 84 points. This can be done after purchasing twelve 50# bags.


An average number of bags I purchase each year : 121 bags of feed.
This would give me an average of 10 free bags of food a year.


So, with that said, my average feed bill per year is a whooping $2011.49!!! (This cost does not include the purchase of ingredients I get to create my own special blend of conditioning mix for the show year. If you wanted to be technical, you can add $80.00 to the above feed costs for the conditioning mix.)


In order for me to break even with feed costs, going on a recent tirade posted in the House Rabbit Society claiming that I am selling my rabbits for profit in regards to an ad I placed for a pet rabbit costing $15 each, I would have to sell 134 pet rabbits, just to make even on feed cost alone.


On average, year round I keep a total of 36 head. Currently 19 Mini Lops, 3 Harlequins, 5 Mini Rex and 9 Polish. Out of these 36 animals, 25 are does. For my does, if each doe, bred only once, produces an average litter of 6, I would have 150 kits to sell for pets at $15 each. That is only 16 over the number I would need to break even, and this is only breeding each doe once.


To be fair, since from each litter produced we keep one. So, that would bring it down to 125 potential kits for sale. And to further be fair, on occasion some kits are sold to other breeders with the kits pedigree papers on an average price of $75 per kit. So to give it a fair estimate, should I sell each kit prodcued, keeping one from each litter. I have come to the figure of, potentially $3,375.00 in sales should I sell 25 rabbits at $75 each to other breeders, keep 25 rabbits for myself, and sell 100 rabbits as pets. So that will give me a large profit margin should this actually occur. Finally, because I do keep one out of each litter (potentially), I do have to move on some seniors to make room. So let say I am to move on 25 seniors for an average cost of $50 each.


Bottom line: In the event I am able to sell 25 seniors at $50 to make room for upcoming juniors, 100 Juniors at pet price of $15, and 25 juniors with pedigree at show quality price of $75 each my total profit from the sales of rabbits would be: $4625.00!


Now we add in my show costs:


For most years we try to attend each show in our state, Montana. There are potentially 7-8 shows a year. Two of these shows, one in spring, and one in fall are close to home. The rest of the shows I have to drive an average of 200 miles one way to get there. So lets say I potentially attend 7 shows. My fuel costs to the two close to home shows would be about $50 collectively. The other five shows far from home would be about $100. Totalling, about $550 in fuel to attend shows.


Now my show entries for myself and my three girls usually run about $150 per show. Then additionally we need to include about $20 each child for raffle to support these clubs. So that is $60 spent. Now we need to look at food for ourselves. This usually includes two meals, sometimes three if we stay the night. So there goes another $75. For most shows I am lucky enough to have friends in the area so I dont have to worry about motel costs.


What is my total show expenses? Well one show is an average of $285. Now multiply that by 7 and we have $1995. Dont forget to add the fuel cost of $550....and now my total showing expenses for one year is: $2545


Oh, but dont think we are done with expenses! Feed and showing, those are the major ones. We gotta add in a bit for cage repairs, new equiptment (from Water Bottles, J clips, feeders, carriers, cages, etc) So lets just say I spend and average of $200 a year on repairs & replacements. And we cannot forget medications to have on hand so lets add another $75. Additionally, we like to keep a 100% registered herd. So we need to add the costs of registration for those 25 kits we kept, $150. What about new stock? This year I purchased a trio of Mini Lops from Wisconsin, total cost with Transport $515 (this does not include my costs of fuel to pick up the rabbits from the transporter. What about our club membership year dues? We are members of ARBA, MLRCA, AMLRC, NMRRC, AHRC, NPRC, WMRCF, & GFRB. These dues for all four of us usally run about $200 collectively for one year.


So lets look at the break down of expenses once again:


Feed: $2011.49 (W/O Show Conditioning Mix)
Shows: $2545.00
Repairs & Replacements: $200
Medications: $75
Registrations: $150
New Stock: $515
Club memberships: $200
Total Average Yearly Expenses: $5696.49!


Now in a perfect world, each and every bunny and older senior has been sold! That would give me the income, as stated above of: $4625.00


With these figures, my rabbit "business" isnt really a business. It is a hobby. A true business generates a profit. With the expenses described above, and 100% sales in every bunny made available will still put me $1071 in the HOLE. Each and every seasoned rabbit breeder can and will tell you there is NO PROFIT in raising rabbits, if you are doing them correctly. Of course, as I stated earlier, there are those BYB who will breed anything and they somehow manage to sell each and everyone of their offspring at a price equal to a good show quality animal. They dont show, and they dont have club memberships, or care about any upkeep. Their basic expenses is only feed. So they are able to make a profit. Therefore, they are a business.


I guess one way you can look at it....if you see a person at a show, and they are taking the time to get there, spending the money on entries....they are not a business, they are a hobbist. There is a big difference. So before looking at a breeder and running off at the mouth saying they are in it for the money....perhaps take into consideration what all they have put in, and what little money they can make back towards their investment, and their HOBBY!














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