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 Beetel coat
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, 2
twinning, triplet, quadruplet)
10 Sex ratio 1.1
11 Mortality of kids % 20
12 Saleable age of kids Months 11
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, Rs./sq.ft 120
doe & kid
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 Kg. 10.5
(adult animal/month)
11 Requirement of concentrate feed Kg. 4.5
(kid/month)
12 Rate of concentrate per Kg Rs. 17
13 Misc. expenditure i.e. Vaccine
medicine and Veterinary aid per Rs. 100
animal per year
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 Rs. 8,500
months)
2 Sale price of Doe (at the age 11 Rs. 7,500
months)
B.TOTAL COST OF PROJECT
Sl. AMOUNT
PARTICULARS UNIT UNIT/Rs QUANTITY
N (Rs)
o
I. Capital Cost
1 Land Own
2 Site development Ls. 25,000
3 Cost of does Nos. 10,000 50 500,000
4 Cost of bucks Nos. 12,000 3 30,000
5 Shed of does Sq.ft. 120 750 90,000
6 Shed of bucks Sq.ft. 120 30 3,600
7 Shed for kids Sq.ft. 120 750 90,000
Equipment for feeding
8 Nos. 100 53 5,250
ghemale & other
9 Chaff cutter Nos. 10,000 1 10,000
10 Rope, chains Ls. 5,000
Water storage and
11 Ls. 10,000
distribution
12 Contingencies % 5 38,443
TOTAL-A 807,293
II. Working Capital (Ist Year requirement)
1 Fodder cultivation Acre/season 5,000 2 10,000
Concentrate feeds
2 Kg. 17 780 13,260
 for two months @ 7.5
kg

/animal/month
Cost of concentrate
feed for kids @ 4.5
3
kg month/kid for one Kg. 17 270 4,590
months
Wages of labour per
4 Per labour 72,000 1 72,000
annum
5 Insurance % 5 26,500
Misc expenditure
6 /Animal/ 100 52 5,200
i.e.vaccine,
year
medicine
Electricity and water
7 /month 1,000 52 52,000
supply
8 Transport charges Ls. 5,000
TOTAL-B 188,550
TOTAL COST OF PROJECT TOTAL (A+B) 995,842
C. Means of finance
Particulars Unit Unit Rate Amou
nt Rs
(1) Term Loan % 75 746882
(2) Own Contribution % 25 248960
Total 995842
(3) Subsidy entitlement @ from NABARD under Scheme

D. PROJECTED PERFORMANCE & PROFITABILITY

I. FLOCK PRODUCTION CHART
Sl. Particulars I Year II III IV V VI
No Year Year Year Year 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
Nos. of kids died male
4 15 15 15 15 15 15
20%
Nos. of kids died female
5 15 15 15 15 15 15
20%
Nos. of male kids
6 * 60 60 60 60 60
available for sale
* Kids produced in first year will be sold in second year &
so on.
Nos. of female kids
7 60 60 60 60 60
available for sale -
II. PROJECTED PROFITABILITY (Value in Rs.)
Sl.
Unit
N Particulars Unit Quantity I Year II Year III Year IV Year V Year VI Year
o rate
A. Income
From sale
1 of male Buckling 8,500 60 - 510,000 510,000 510,000 510,000 510,000
goats
From sale
2 of female Doeling 7,500 60 - 450,000 450,000 450,000 450,000 450,000
goats
3 Mannure Tonne 5,000 10 50,000 50,000 50,000 50,000 50,000 50,000
Interest
4 on -
subsidy
@

5 Subsidy
TOTAL (A)

B. Expenditure
Concentr
Rs./kg 17 6,300 107,100 117,810 117,810 117,810 117,810 117,810
at e
feeds
Concentr
at e Rs./kg 17 3,240 55,080 60,588 60,588 60,588 60,588 60,588
feeds for
kids
Fodder
acre/year 5,000 1 5,000 5,000 5,000 5,000 5,000 5,000
cultivation
Unskilled 72,00
Nos. 0 1 72,000 79,200 79,200 79,200 79,200 79,200
workers
Misc
expenditure
Per animal 100 170 17,000 17,000 17,000 17,000 17,000 17,000
i.e
vaccine,
medicine
Insuranc
% 5 26,500 26,500 26,500 26,500 26,500 26,500
e of
animals
Electricit
Animal/
y and 1,000 52,000 57,200 62,920 69,212 76,133 83,747
yea
Water
r
supply
Transpo
Ls. 5,000 5,500 6,050 6,655 7,321 8,053
rt
charges
TOTAL (B) 339,680 368,798 375,068 381,965 389,552 397,898
TOTAL(A
III. Net Income -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 107,498
building @10%
Depreciated value of 8,677
machinery &
equipment’s
@15%
Closing stock value 363,010
(adult & kids)
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 0.87 0.76 0.66 0.57 0.5 0.43
@15%
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