PROJECT REPORT ON GOAT FARMING
Project description
Goat is a multi-functional animal and plays a significant role in the economy and
nutrition of landless, small and marginal farmers in the country. Goat rearing is an
enterprise which has been practiced by a large section of population in rural area.
Goats are among the main meat-producing animals in India and has huge domestic
demand. Goat rearing under intensive and semi-intensive system for commercial
production has been gaining momentum. A number of commercial goat farms have
been established in different regions of the country.
Production Technology
Project Location
Goat farm is located in the area where assured market round the year is available. It
is easily accessible to the main road.
Housing
Low cost housing will be constructed on a raised platform (about 1 meter height from
ground level) by using bamboo/wooden poles or ‘pakka’ building by establishing
concrete pillars. Floor and side walls will be made of wooden material. Roof will be
thatched with coconut leaves, grass or asbestos sheets. Average floor space per kid
is 0.75 to 1 sq. meter. Floor should have at least 1 cm space between
bamboos/wooden planks to allow passage of dung and urine down to the ground.
Feed & Fodder cultivation
Fertile land with assured irrigation facilities is available so that fodder crops could be
successfully raised and abundant good quality green fodders will be made available
for animal feeding throughout the year.
Water
Good quality fresh water for animal drinking and for the cleaning, washing etc. is
available.
Labour
Honest, economic and regular supplies of labours are available.
Veterinary Aid
Veterinary aid/ breeding centres facilities are availability near the proposed goat farm.
Market potential
More than 80 percent of the Indian Population are meat eaters. Purchasing power of
the people is on the rise and there is a distinct shift in consumption patterns, Non-Veg
now becoming almost an essential part of the diet. Mutton is relished by people more
than chicken or beef /pork (Consumed by a select section). Availability of Mutton is
less than the demand. It requires smaller investments and is not as risky a business
proposition as compared to Dairy. Sale of goats/goat meat is never a problem for the
above mentioned reasons. India occupies first position in terms of goat population and
milk production. The demand for goat meat is increasing faster than the growth in goat
population. Goat plays a significant role in providing supplementary income and
livelihood to millions of resource poor farmers and landless labourers of rural India.
Export Potential
The scope for exports too is huge, however for selling goat meat abroad one has to
adhere to strict phytosanitary conditions and standards of the respective nations.
SWOT Analysis
Strengths:
▪ Low labour requirement.
▪ Goat is a multi-functional animal and plays a significant role in the economy
and nutrition of landless, small and marginal farmers in the country.
▪ Goats can efficiently survive on available shrubs and trees in adverse harsh
environment in low fertility lands where no other crop can be grown.
▪ The initial investment needed for Goat farming is low.
▪ No religious taboo against goat slaughter and meat consumption prevalent in
the country.
▪ Goat milk is easy to digest.
▪ Goat creates employment to the rural poor besides effectively utilizing unpaid
family labour.
▪ Goats are strong creatures that are able to resist various diseases.
▪ Since goats are relatively small in size, the facilities and amenities to support
them are also minimal.
▪ Goats generally love being with humans and they are extremely docile.
▪ They have a high fertility rate achieving maturity with just 5 - 6 months. The
probability of producing twins is high.
▪ Risk associated with drought is less in commercial goat farming compared to
other livestock breeds.
▪ Goats are good instruments to enhance the health of the grazing land and
minimize encroachment of bushes.
▪ Goat meat is a great appeal to the public because of the health benefits it
provides to its consumers. It is extremely low in fat, cholesterol and calories.
This is good for people who have low energy diet scheme.
Opportunities:
▪ High and ready market of goat meat.
▪ Confirmed ever increasing Market price.
Weakness
▪ Large-scale, organized goat farming has not yet become a successful venture
in the country.
▪ High mortality rate of goat kids
Threats
▪ The goat population is increasing & according to the government census,
declining grazing land poses a big challenge to the industry.
Economics of the Project
A. BASIS & PRESUMPTIONS
I. Techno-economic parameters
Particulars
Unit
Quantity
1
Bread of Goat
Osmanabadi
2
System of rearing
Semi Intensive
3
No. of does
50
4
No. of bucks
2
5
Age of maturity
10-12
6
Kidding interval
Months
8
7
No. of kidding
Per month
1.5
8
Kidding percentage
%
80
9
Average litter size (average of single,
twinning, triplet, quadruplet)
2
10
Sex ratio
1.1
11
Mortality of kids
%
20
12
Saleable age of kids
Months
11
13
Payback period: 6 years including
moratorium for the 1st year
II. Expenditure norms
1
Space requirement per head for buck
Sq.ft
15
2
Space requirement per head for doe
Sq.ft
15
3
Space requirement per head for kid
Sq.ft
4
4
Cost of construction of shed for buck, doe
& kid
Rs./sq.ft
120
5
Cost of one doe (Female)
Rs.
10,000
6
Cost of one buck (Male)
Rs.
12,000
7
No. of unskilled labour
Nos.
1
8
Cost of one semiskilled labour/annum
Rs.
72,000
9
Cost of Chaff of cutter- 1 nos.
Rs.
10,000
10
Requirement of concentrate feed (adult
animal/month)
Kg.
10.5
11
Requirement of concentrate feed
(kid/month)
Kg.
4.5
12
Rate of concentrate per Kg
Rs.
17
13
Misc. expenditure i.e. Vaccine medicine
and Veterinary aid per animal per year
Rs.
100
14
Electricity and Water supply
per month
1,000
15
Rate of interest for bank loan
%
12
16
Own contribution in project cost
%
25
III. Income norms
1
Sale price of Buck (at the age 11 months)
Rs.
8,500
2
Sale price of Doe (at the age 11 months)
Rs.
7,500
B. TOTAL COST OF PROJECT
Sl.
No
PARTICULARS
UNIT/Rs
QUANTITY
AMOUNT
(Rs)
I. Capital Cost
1
Land
Own
2
Site development
25,000
3
Cost of does
10,000
50
500,000
4
Cost of bucks
12,000
3
30,000
5
Shed of does
120
750
90,000
6
Shed of bucks
120
30
3,600
7
Shed for kids
120
750
90,000
8
Equipment for feeding
ghemale & other
100
53
5,250
9
Chaff cutter
10,000
1
10,000
10
Rope, chains
5,000
11
Water storage and
distribution
10,000
12
Contingencies
5
38,443
TOTAL-A
807,293
II. Working Capital (I
st
Year requirement)
1
Fodder cultivation
5,000
2
10,000
2
Concentrate feeds for
two months @ 7.5 kg
17
780
13,260
/animal/month
3
Cost of concentrate feed
for kids @ 4.5 kg
month/kid for one
months
17
270
4,590
4
Wages of labour per
annum
72,000
1
72,000
5
Insurance
5
26,500
6
Misc expenditure
i.e.vaccine, medicine
100
52
5,200
7
Electricity and water
supply
1,000
52
52,000
8
Transport charges
5,000
TOTAL-B
188,550
TOTAL COST OF PROJECT
TOTAL (A+B)
995,842
C. Means of finance
Particulars
Unit
Unit Rate
Amount
Rs
(1) Term Loan
%
75
746882
(2) Own Contribution
%
25
248960
Total
995842
(3) Subsidy entitlement @36% from NABARD under ACABC Scheme
358503
D. PROJECTED PERFORMANCE & PROFITABILITY
I. FLOCK PRODUCTION CHART
Sl.
No
Particulars
I Year
II
Year
III
Year
IV
Year
V
Year
VI
Year
1
Nos. of kidding/year
1.5
1.5
1.5
1.5
1.5
1.5
2
Nos. of kids born male
75
75
75
75
75
75
3
Nos. of kids born female
75
75
75
75
75
75
4
Nos. of kids died male
20%
15
15
15
15
15
15
5
Nos. of kids died female
20%
15
15
15
15
15
15
6
Nos. of male kids
available for sale
*
60
60
60
60
60
* Kids produced in first year will be sold in second year & so on.
7
Nos. of female kids
available for sale
-
60
60
60
60
60
II. PROJECTED PROFITABILITY (Value in Rs.)
Sl.
N
o
Particulars
Unit
Unit
rate
Quantity
I Year
II Year
III Year
IV Year
V Year
VI Year
A. Income
1
From sale
of male
goats
Buckling
8,500
60
-
510,000
510,000
510,000
510,000
510,000
2
From sale
of female
goats
Doeling
7,500
60
-
450,000
450,000
450,000
450,000
450,000
3
Mannure
Tonne
5,000
10
50,000
50,000
50,000
50,000
50,000
50,000
4
Interest on
subsidy @
6%
21,510
21,510
21,510
21,510
21,510
-
5
Subsidy
-
-
-
-
-
358,503
TOTAL (A)
1,031,51
0
1,031,51
0
1,031,51
0
1,031,51
0
1,031,51
0
1,368,50
3
B. Expenditure
Concentrat
e feeds
Rs./kg
17
6,300
107,100
117,810
117,810
117,810
117,810
117,810
Concentrat
e feeds for
kids
Rs./kg
17
3,240
55,080
60,588
60,588
60,588
60,588
60,588
Fodder
cultivation
acre/year
5,000
1
5,000
5,000
5,000
5,000
5,000
5,000
Unskilled
workers
Nos.
72,00
0
1
72,000
79,200
79,200
79,200
79,200
79,200
Misc
expenditure
i.e vaccine,
medicine
Per animal
100
170
17,000
17,000
17,000
17,000
17,000
17,000
Insurance
of animals
%
5
26,500
26,500
26,500
26,500
26,500
26,500
Electricity
and Water
supply
Animal/yea
r
1,000
52,000
57,200
62,920
69,212
76,133
83,747
Transport
charges
Ls.
5,000
5,500
6,050
6,655
7,321
8,053
TOTAL (B)
339,680
368,798
375,068
381,965
389,552
397,898
III. Net Income
TOTAL(A
-B)
691,830
662,712
656,442
649,545
641,958
970,605
E. FINANCIAL ANALYSIS
Particular
I Year
II Year
III Year
IV Year
V Year
VI Year
Total
Capital costs
807,293
Recurring costs
217,720
194,776
375,068
381,965
389,552
397,898
Total COST
1,146,972
194,776
375,068
381,965
389,552
397,898
Benefit
1,031,510
1,031,510
1,031,510
1,031,510
1,031,510
1,368,503
Depreciated value of
building @10%
107,498
Depreciated value of
machinery & equipment’s
@15%
8,677
Closing stock value (adult
& kids)
363,010
Total benefit
1,031,510
1,031,510
1,031,510
1,031,510
1,031,510
1,847,688
Net benefit
-115,462
662,712
656,442
649,545
641,958
970,605
Discounting factor @15%
0.87
0.76
0.66
0.57
0.5
0.43
NPV cost at 15% DF
997,866
280,286
247,545
217,720
194,776
171,096
2,109,289
NPV benefits at 15% DF
897,414
783,948
680,797
587,961
515,755
794,506
4,260,380
NPW at 15% DF
2,151,091
BCR at 15% DF
2.02:1
IRR%
69.76