CVTIA IA, Inc.

Goat Farm and Breeding Centre

Background

The goat is a multi-use animal that is commonly reared for its meat (chevon). In many parts of the

world, goat is raised for meat, milk, wool, and leather. As per the data source of Department

of livestock services, Fiscal year 2073/74, there are 10,986,114 goats in Nepal that accounts for

45.3% of the national ruminant population and the population has increased by 3.52% per

annum. Similarly 65,583 metric tons of goat meat is produced which is 20% of the total meat

produced in our country which ranks second after buffalo meat. Also, it has share of 12% in

total livestock GDP.

Distribution of goat population is highest for province No.1 (2.28 million -20.8%) with lowest

for province No.6 (9.2%). However, the density of goats per unit area is found highest for

province No.2 (146 goats/km^2). In context of our province 5, distribution of goat population is

found to be 1.96 million -17.8%.

Goat is also called the Poor’s man cow. In Nepal, Goat can be raised in different parts so it is

becoming a growing enterprise and a living bank account for farmers. Goat and sheep belong to

the different species, but their management is similar. Goat meat is accepted by all the caste and

ethnic people; day by day; goat farming has become a popular business. Livestock farming

consist of one third share of total agricultural gross domestic product (GDP) in Nepal thus it

contributes a major share in agricultural system. Similarly, the amount of feed and feeder

necessary for one cow can is similar as rearing of 5-6 goats and farmers having less and easily

raise 2-4 goats. Many farmers are using indigenous breed of goats while some of the young

entrepreneurs have started to have cross hybrid of boar goat and the indigenous breed (I.e.

native breed according to the climate of that farm area).

Terai goats are found in the Terai region and inner valleys (tropical and subtropical climate) of

the country and are reared as the meat-type animals. They are heavily crossed with Indian

breeds including Jamunapari, Barbari, Ajmeri/Sirohi, and Beetal; and thus, population of pure

Terai goat is at risk from the conservation point of view. This breed constitutes 27% or less than

that of the total goat population of the country. Body color of Terai goats varies from pure white

to pure black with mixed patches of different colors. Its compact body weight is around 30 kg
with 60 cm body length, 65 cm chest girth, and 58 cm wither height. Body weight varies from

30 to 35 kg for male and 25–30 kg for female.

Jamunapari is a breed of goat originating from the Indian subcontinent. It is a dual-purpose

breed kept for both milk and meat. Jamunapari goats were mainly introduced in Nepal to

upgrade and improve body weight of local Khari and Terai goats. Adult Jamunapari goat has a

body weight of 45 kg for bucks and 38 kg for does along with wither height between 75 and 78

cm, body lengths of 75–77 cm, and heart girth of 76–79.5 cm (Table 6). Yearling weight of these

goats in research stations was about 21 kg. The average age at first kidding and kidding interval

in Jamunapari goat is 770 and 428 days, respectively.

Objectives:

-To generate income and employment opportunity.

-To make easy access of quality Goat meat to the people of this area.

-To make this farm a good breeding center through which the farmers can get improved breeds

of kids.

-To become a site of observation to the young entrepreneurs and the farmers as well as students.

Rationale of study

Goat is a multifunctional animal and plays a significant role in economy and nutrition of

landless, small and marginal farmers in country. Goat can efficiently survive in available shrubs

and trees in adverse harsh environment in low fertility lands. Also goat has religious and

ritualistic importance. They are prolific breeders and attain sexual maturity at the age of 10-12

months. Gestation period in goat is short and twinning is much commanded small body size and

docile nature, housing requirements and management problems with goats are less. Goat meat

contributes about 20.4%to the total meat production and ranks after buffalo.

The goat meat is more lean (low cholesterol) and relatively good for people who prefer low

energy diet especially in summer. It has higher level of iron, high potassium content and low

sodium content when compared to the similar serving size of beef, pork, lamb and chicken. So,

the meat is more preferable for anemic patient. It is also packed with proteins and vitamin B12,

which is prior to get healthy skin.

Despite all the religious and nutritional importance of goat and its product, Nepal seriously
lacks proper technology in rearing housing and processing, whereas on the other hand there isn’t

enough storage facility, clean slaughter houses and proper distribution center. Also, there is

inadequate scientific research on breeding, feeding, management and disease control. To meet

demand, there are high imports of live goat’s form India. According to NLTA (Nepal livestock

Traders Association), two lakhs live goats enter Nepal every year through checkpoint at

Nepalgunj, krishnagar and Bhairahawa.

There is a serious urgency of upgrade in technology to gear up the commercial production

process. Therefore, our commercial goat farm and breeding center will definitely play a positive

role towards the improvement of our lacking in goat farming sector. It will set an example for

other provinces too in the near future.

Beneficiaries

The main propose of this project is to produced milk and meat but also to start a breeding center

for goats. This farm can be a center for production of improved breeds and kids are ultimately

provided to the farmers which will be livelihood opportunity to them to create subsidiary

income and employment in lower capital. Besides, New integrated technologies on rearing,

housing and processing can be built up by this farm. This farm will be opened for farmers and

students for internship and extension visit.

Location and facilities

This farm will be established at Tillotama Municipality-6 Manigram. Our farm is 1 km west

from Manigram chowk.

The farm is equipped with proper road, electricity, pure drinking water and proper drainage

system with enough space for establishment of farm.

There will be 2 Jamunapari male and 40 Terai female goats in our farm. Our facilities are goat

meat and milk production plus breeding.

Risks and uncertainty of project

1. Disease outbreak: Goats are susceptible to some parasites and common goat viral diseases

and initially diagnosing them is very difficult. Viral diseases like Pest des petit Ruminant (PPR)

and Foot and Mouth disease (FMD) are common, acute, highly contagious and infectious

epidemic disease in Nepal.

predators of goats.

3. Market problem: No easy access to market information on price, volume traded, market

context of live goat/meat to farmers and traders.

Business plan:

BUSINESS NAME: Lumbini goat farm and breeding center.

EXECUTIVE SUMMARY OF FARM

Lumbini goat farm will be a registered livestock Farming business which will be located in

Tilotama 6-Manigram.The livestock business will be concerned with the rearing and selling of

goats, processing and packaging of goat meat as well as production and sales of kids and other

goat products.

Our business will offer its products and services to customers in province no5 as well as to the

neighboring province. Also, as our business expands, we will offer our products and services to

customers all over the country as well as to the UP of India too.

FARM DESCRIPTION

OUR PRODUCTS OFFERING

This goat farming business will be concerned with goat farming, goat meat processing as as

well as packaging in Rupandehi. As part of complimentary business to our goat farming, we

will also run a food processing plant the following are the products and services we will be

offering:

Breeding services

Boarding services

Dairy support services

Sales of cotton wool

Livestock health services

Shearing services

Sales of processed goat meat

VISION STATEMENT

Our vision is to become a leading farm in the livestock farming industry all over Rupandehi and
the province no. 5. Our hope is also to be among leading livestock farming brands in country

before our 10th anniversary.

MISSION STATEMENT

Our mission is to provide quality products and services to all our customers where ever they

may be. We want to make assure we sell in commercial quantities our goats processed goat’s

meat and several other goats’ byproducts to our customers in province 5 in subsequent years.

Business profile:

Farm name Lumbini goat farm and breeding centre

Business owner Lalit bc & Akrit Rijal

Address Tilotama – 6 Manigram

Contact -

Business structure

In order to establish our business and to be able to achieve our business goals and mission: we

must be able to fully establish our business structure on to a well –founded business foundation.

In the course of raising the right business structures for our goat farming business we will make

sure we hire only the right and skilled employees to fill the required positions. We will make

sure hardworking, honest and ready to join hand with us to build our goat farming business in to

where we want it to be. The following positions are required to be filled:

General Farm Manager

Branch Supervisor

Accountants/Administrators

Sales and marketing officers

Goat Farm field employees

Receptionists

SWOT ANALYSIS

Strength:

Our strength as a livestock farming business is the fact that we have healthy relationships with

load of major players (agriculture merchants) in the livestock farming industry; both suppliers

and buyers within and outside of the area.

breed goat and other livestock in commercial quantities with lesser stress. Aside from that we

can confidently boast that we have some of the most experience hand in livestock farming

industry our pay roll.

Weakness:

Weakness of this farm is its financial part because our goals are very high and advance and there

may be the shortage of budget in the long run if the proper return is not gained from our

product.

Opportunities:

The opportunities are that area available to us can’t be quantified. We know that the area there

are loads of homeowners and industries that will source for goats, goat meat and milk and also

industries that will source for the raw materials from our livestock farm both in the of area and

other parts of the Nepal.

Threat:

Some of the threats and challenges that we are likely to face when we start our own livestock

farm are global economic down turn that can impact negatively on household spending, bad

weather cum natural disaster (draught, epidemics), unfavorable government polices and the

arrival of competitors that raise same livestock near the location of our farm. There are hardly

anything that we can do as regards this threat and challenges other than to be optimistic that

things will continue to work for our good.

MARKETANALYSIS

One of the common trends in the commercial livestock farming line of business is that most

players in the industry are concentrating on only on farming a particular species of livestock or

just livestock/ goat farming. They now find it easier. Some even go ahead to include meat

processing and packaging business alongside their product offering. It helps maximizing profit

in the agriculture industry. Commercial goat farm is exploring new technology to continue goat

farming process and also meat preservation and packaging process. The fact that there is always

a ready market for commercial goat farming makes the business evergreen.

As a matter of fact one of the new trends in livestock farming industry is that with the recent
advancement in technology livestock farm can now improve the various breeds of the animals

they are breeding. It is now easier for livestock farm to comfortably import the kind of breed of

domestic animal they want to breed from many country of their choice and also advancement in

technology has made it easier to cross-breed different animal.

Our Target Market

Naturally, the target market of those who are the end consumer of livestock Farm produce and

also those who benefits from the business value chain of the agriculture industry is all

encompassing ;it is far–reaching.

Every household consumes produce from livestock Farms be it goat meat, goat milk, and the

skin (leather) used for bags, belts and shoes production. Sold to the large chunk of

manufacturing companies depends on livestock Farms for some of their raw materials. In

essence a goat Farm should be able to sell his or her Farm produce to as many people as

possible. We will ensure that we position our business to attract consumers of agriculture

produce not just in the of Area alone but also or her parts of the Nepal which is why we will be

exporting some of our Farm produce either in raw form or processed form to other countries of

the world.

Our Competitive Advantage

It is easier to find entrepreneur flocking towards an industry that is known to generate consistent

income which is why there are more commercial Farms in the Area and of course in most parts

of the Nepal.

Fixed cost for goat farming business

S.N. PARTICULARS UNIT QUANTITYAmount TOTAL COST

1. Shed construction

Roof construction No. 80 600 Rs. 48,000

Nails Kg 8 150 Rs. 1,200

Hook and bolts Set 100 50 Rs. 5,000

Stall construction No 1 2000 Rs. 2,000

Wood requirement No 1000 150 Rs. 150,000

Labor No 5 (15 days) 1000 Rs. 75,000

3. Goat purchase Unit

He goats 2 5000 Rs. 10,000

She goats 40 5000 Rs. 200,000

4. Total fixed cost Rs. 491,200

Variable costs

C Variables Un

it

Quantit

1st year 2nd year 3rd year 4th year 5th year

1Fodder and

forage

plantation

- Rs. 750 Rs.

3000

0000

2 Labor 42 Rs.

5,76,00

Rs.

5,76,000

Rs.

5,76,000

Rs.

5,76,00

Rs. 5,76,000

3 42 Rs.
75600/y

Rs.

75,600

Rs.

85,600

Rs. 85,600 Rs.

85,600

Rs. 85,600

4 Mating

cost Nrs.

200/ goat

42 400, 2

times

per yr

Rs.

16000

0000

5 Insurance +

2 he goat

purch.

42 500/yr Rs.

21000

Rs.

21000

Rs.

21000

Rs.

21000
Rs.

21000

6 Feed

13kg/mont

42 390/

Month

Rs.

1,96,56

Rs.

1,96,560

Rs.

1,96,560

Rs.

1,96,56

Rs. 1,96,560

Total Rs.

8, 88,16

Rs.

8,79,16

Rs.

8,79,16

Rs.

8,79,1
60

Rs.

8,79,160

Variable cost during 5 year = Rs. 44, 04,800

Total cost incurred = Total fixed cost + Total variable cost

= 44, 04, 800 + 4, 91, 200

= Rs. 48, 96, 000

Total cost incurred in 1st year of production = Rs. 13, 79, 360

Calculation of income

S.N

Year 1 2 3 4 5

1 Meat

production

1200 kg 1800 kg 2000 kg 2200 kg 2400 kg

2 Kids

production

40 units 60 80 80 100

3 Manure 100 kg 100 kg 150 kg 150 kg 200 kg

Price/kg

meat

Rs. 850

Kids price Rs. 5000

for 2

months

old

Manure/kg Rs. 100

Income-

meat
Rs.

10,20,00

Rs.

15,30,00

Rs.

17,00,00

Rs.

18,70,00

Rs.

20,40,00

Kids Rs.

2,00,000

Rs.

3,00,000

Rs.

4,00,000

Rs.

4,00,000

Rs.

5,00,000

Manure Rs.

10,000

Rs.

10,000
Rs.

10,000

Rs.

10,000

Rs.

10,000

Total

income

Rs.

12,30,00

Rs.

18,40,00

Rs.

21,15,00

Rs.

22,85,00

Rs.

22,55,00

Total income during the period of 5 year = Rs. 97, 25, 000

Net profit of the Lumbini Goat farm and breeding center = Total income- Expenditure (cost

incurred) = 97, 25, 000 - 48, 96, 000

= NPR. 48, 29, 000/-

Conclusion

From the above calculation of income and cost it can be seen that this business is profitable and
can be taken ahead in the field. We have studied and analyze the ground level possibilities and

condition hence we can conclude that this business is fruitful and profitable