Rationale

Why invest in goats? Raising goats in the Philippines is one of the lucrative businesses
for our small and big farmers. Goats are very popular among Filipinos because they require low
initial capital investment, fit the smallhold farm conditions, and multiply fast. Culturally, goats are
integral to every special occasion such as birthdays, baptisms, weddings and fiestas. Hence,
they command a higher price compared with other meats in the market.
Goats require low maintenance because they eat tree leaves, weeds, grasses and
agricultural by-products they eat not only a source of protein for Filipinos, but they also provide
the much needed income. In fact, goats provide livelihood to about 15 million Filipinos across
the country today.
As gpat production requires low initial investment and small risks compared to other
livestock species, it iis thus an attractive undertaking among resource-poor families. Moreover,
women and children can raise the species making it sound option to augment the country’s
programs on livelihood.
At the moment there is an increase in demand for goats. Although total goat inventory in
the country is steadily increasing at 2% per year, still there is not enough supply to meet current
demands. It is expected that this increased demand will last to the future years, the year when
supply is projected to meet demand.
Davao is an ideal place to raise goats due to its warm climate and sloping terrains. In
fact, a number of farmers are presently involved in backyard goat raising activities. However,
goat farmers have their own share of problems in goat raising that hindered them to
commercialize. Common constraints encountered include high mortality rate at marketing, and
limited skills and knowledge on latest technologies. With these problems being adequately
addressed as one of the objectives of the goat development farm, productivity of Davao
backyard goat raisers will be enhanced thus increasing their income.

A. Marketing Aspect

1. Product Description and Market Potential

There is a big demand for goat and its products in the Philippine Market today. In fact,
chevon (goat meat) is the most expensive livestock meat in the market ranging from P 120- P
180 per kg. live weight.
Goat raising is the most progressive sector in the livestock industry as shown by the
proliferating commercial goat production farms. Though Davao Region in Mindanao ranks 5th in
the 2016 PSA Survey in goat population, goat farmers, private and government agencies still
import breeder stocks outside the country. Thus, a great potential awaits breeder farms that can
supply breeder stocks that can demand a bigger price. To date, goat industry in the country is
thriving to produce adequate supply to meet the growing demand for breeder stocks.
Another great potential are the value-added products derived from goats specifically
goat’s meat. Canned goat meat products such as goat kaldereta, papaitan, paklay, etc. are now
becoming very popular. It has become a popular choice especially for health conscious
individuals because of its low cholesterol content.
Initial goat products to be marketed are breeder stocks and culled/slaughtered animals.

2. Promotional Activities

Promotional activities include participation in local, provincial, and regional agro-trade

fairs showcasing purebred and upgraded goats produced by the farm.
 The farm can also be open to allow visitors and educational tour groups to visit the goat
farm that are using income generating technologies in goat production.

3. Pricing

Farm produce such as the pure or upgraded breeders and live animal for slaughter are
priced according to the prevailing market price. Pure and upgraded breeders can be sold for
Php 10,000 –Php 15,000 per head. On the other hand, live animals can be sold for Php 120 –
Php 180 per kilo.

4. Buyer and Place of Distribution

The prospect buyers for the breeder animals are the private multiplier farms and
government institutions within Davao region or any other neighboring regions in Mindanao.
Meanwhile, live animals buyers are the meat vendors in the wet markets and institutional buyers
such as “Kambingan” restaurant or “carenderia” and hotels in the nearby cities and
municipalities.

B. Technical Aspect

1. Production Site Selection

The production proposed site will be the mountainous area of Davao del Norte which
meet the criteria for an ideal site for goat production. The following are the most ideal criteria for
choosing a good site for goat raising:
a. Sloping terrain of land is highly recommended for goat production.
b. Suitable weather and environment for the animal
c. Ample area that could cater at least 150 heads of goat and a suitable area for
establishing pasture forages.
d. Adequate forages supply.
e. Local political support is present.
f. Accessibility
g. Agricultural potential

After identifying the prospect site for production, establishing pasture area, constructing
goat house and buying of production inputs will follow, this will include:

Stocks
a. Breeding bucks
b. Breeding does

Operating Expenses
a. Veterinarian medicines, drugs and vaccines
b. Feed supplements and goat rations
c. Labor
d. Repair and Maintenance of goat house, fence, equipment and pasture.
2. Field and Building lay-out

The total land area of the farm is 8.43 ha.. An assumption is that there is an area allotted
for pasture, cut and carry forage grasses and goat houses that could cater 104 heads of adult
goats and their expected 183 offsprings.

The recommended floor space area for goats at different ages.

Category Floor Space (m2)
Breeding female 1.5
Breeding buck 2.0
Young Stock (up to one year old) 1.0

For a 100-doe level

Breeder female (doe)

100 does x 1. 5 m2 / doe = 150 m2

Breeder male (buck)

4 bucks x 2.0 m2 / buck = 8 m2

Young stocks
100 does x 90% conception rate
x 1.5 kids/kidding x 1.5 kidding/year
x 90% livability rate
= 182.25 offspring/year x 1.0 m2 182.25 m2
--------------------
Total floor area = 341 m2

Total number of goats = 287

Total DM demand: 4 bucks x 60 kg x 0.03 = 7.2 kg DM/day

100 does x 40 kg x 0.03 = 120 kg DM/day
183 youngs x 25 kg x 0.04 = 183 kg DM/day
----------------------
310.2 kg DM/day

Total DM demand in 45 days rest period: 310.2 kg x 45 days = 13,959 kg DM

Area of Guinea pasture: 13,959 kg DM ÷ 2,450 kg DM/ha = 5.6 ha.

Area of Napier forage (cut-n-carry): 13,959 kg DM ÷ 5,000 kg DM/ha = 2.8 ha.

--------------
Total land area of the farm: = 8.43 ha
4. Technical Assumption

Production system Semi intensive for 100 – doe level

Pure confinement for young stocks
Stocks
Doe Native
Buck Upgraded Anglo Nubian/Boer
Buck to Doe ratio 1:25
Type of housing and fencing
Materials Permanent
Conception rate 90%
Kid size 1.5
Kidding per year 1.5/year
Culling rate 20%
Concentrate consumption 100g / day / head x 180 days
Forage consumption 310.2 kg DM/day
Kinds of forage Napier and Guinea grass
Mortality rate
Matured 5%
Growing 10%
Kid 10%
C. Organizational Aspect

The proposed Goat Development Farm will be managed by the owner which is a retired
manager of a big commercial bank. Therefore, the form of ownership of the farm would be a
single proprietorship.

1. Organizational Structure

Farm manager

Owner

Laborer

2. Personnel Function

Owner
The owner will provide the guidance and super vision in the conduct of the project. He
ensured that the guideline formulated will be followed and objective will be met. He is the one
who will take charge of the financial aspects of the business and take care of personal matters
together with his farm manager.

Farm manager
The farm supervisor will be the manager of the business. He sees to it that the
enterprise runs in accordance with the guidelines formulated. He coordinates with the owner in
order to run the business based on the plan activities. He will make frequent consultation with
the owner for the overall management of the business.

Laborer
Laborer will be hired by the farm manager during establishing of pasture area,
construction the goat houses and animal management. They perform the farm activity in the
whole production that requires strength and skills.
D. Financial Aspect

Financial Assumptions:

Housing ₱500 / head for 100-doe level

Fencing ₱20,000/ha
Land cost ₱180 / sq.m.

Cost of Stocks
*Doe (upgraded: 50 N:50 AN) ₱1,750 / head
*Buck (purebred Boer) ₱6,000 / head
Buck Service ₱50.00 / service
Labor 2 laborers per 100-doe level at 8 hours / day
at ₱300 / day
Concentrate feed 100 g/day X 180 days / ₱10 / kg
Veterinary Drug and Supply ₱50 / head / yr
Forage and pasture development ₱5,000 / ha
Forage and pasture maintenance ₱3,000 / ha
Price of Fattener ₱2,000 / head
Breeder ₱6,000 / head
Average marketable weight 30 kg
Life span of housing, equipment and fencing 10 years
Contingency 10 % of operating expense (OE)

Capital outlay for 100-doe level

Amount of Capital Investment (₱)
Year 1 Year 2 Year 3 Year 4 TOTAL
Housing 50,000 0 0 0 50,000
Fencing 168,600 0 0 0 168,600
Forage
42,150 0 0 0 42,150
development
Stocks
Doe (100) 175,000 0 0 0 175,000
Buck (4) 24, 000 0 0 0 24, 000
TOTAL 459, 750 0 0 0 459, 750

Projected Production schedule by type and year, 100-doe level

No. of Head
Year 1 Year 2 Year 3 Year 4 TOTAL
Breeder 46 92 46 92 322
For slaughter 68 136 68 136 476
TOTAL 114 228 114 228 798

Projected value of sales by type and year, 100-doe level

Values of Sales (₱)
Year 1 Year 2 Year 3 Year 4 TOTAL
Breeder 276,000 552,000 276,000 552,000 1,656,000
For slaughter 136,000 272,000 136,000 272,000 816,000
TOTAL 412,000 824,000 412,000 824,000 2,472,000
Projected income statement for 100-doe level

Year 1 Year 2 Year 3 Year 4 TOTAL

A. Income
Sales of stocks 412,000 824,000 412,000 824,000 2,472,000
Inventory value
of stocks 199,000 199,000
TOTAL INCOME 412,000 824,000 412,000 1,023,000 2,671,000

B. Expenses

Operating Expenses

Labor 219,000 219,000 219,000 219,000 876,000

Cost
of concentrates 38,520 59,040 38,520 59,040 195,120
Veterinary drug
and supply 10,700 16,400 10,700 16,400 54,200
Forage and
Pasture
Maintenance 0 4,000 4,000 4,000 12,000
Light and water 6,000 6,000 6,000 6,000 24,000
Transportation 5,000 5,000 5,000 5,000 20,000
Repair and
maintenance 0 10,000 10,000 10,000 30,000
Contingency
(10% OE) 27,922 31,944 29,322 31,944 121,132

TOTAL OE 307,142 351,384 322,542 351,384 1,332,452

Overhead expenses

Depreciation of
housing and
fence 13,000 13,000 13,000 13,000 52,000

Total overhead
expenses 13,000 13,000 13,000 13,000 52,000

TOTAL EXPENSES 320,142 364,384 335,542 364,384 1,384,452

NET INCOME 91,858 459,616 747,542 459,616 1,087,548

ROI (%) 28.7 126.1 222.8 126.1 78.5

Return on investment (ROI) measures the percentage return of the owner’s investment
or the amount earned per 100 peso invested. ROI acceptable value is equal or greater than the
lending rate of the banks. If the average lending rate of banks 24% per month, then ROI should
be equal or greater than this value in 1 year period. It means that the higher the ROI the better.
 Reference

BAS (Bureau of Agricultural Statistics) 2003a. Report on performance of agriculture.

Department of Agriculture. Diliman, Quezon City, available on
http://bas.da.gov.ph/about/performance/2002/tab1_value.html.

Peliano, E.G., 2014. Sample Agricultural Business Plan. University of Southeastern Philippines,
Mabini, Compostela Valley Province.

PCARRD 2000. The goat industry situation. available on www.pcarrd.dost.gov.ph.

PCARRD 1991. Philippine recommends for goat raising. Series No. 22-A, Los Baños, Laguna.

Philippine Statistic Authority 2016. Goat Industry Performance Report. Quezon City, Philippines.
ISSN: 2012-0664.
 LABORATORY EXERCISE NO. 6

DESIGNING AND DEVELOPING A GOAT DEVEOPMENT FARM

Ritsmond Zemry Pelaez Ubod

Master of Science in Animal Science - 1

A Project Proposal presented to

Dr. Oscar B. Posas

Course subject professor

In Partial Fulfillment of Requirements in finals

for the subject Advanced Ruminant Production (AnSc 231)

December 2016
Questions to Answer:

1. If based on the quality of the proposal you have submitted you’re declared as the winner,
would you be willing to implement the project yourself? Explain why?

Yes, and I’m so grateful if that would really be the output. If given an opportunity and has
a financial capability to have a business I would be willing to implement my proposed
project. Why? Because I know how that proposal was crafted and done and all the
assumptions of this proposals are came from reliable sources and literature. A feasibility
study was done to supplement what are the areas aspects needed to come up with this
kind of proposal. And the ROI of the proposal is significantly increasing as the project
reach 3 years.

2. How sufficient is your knowledge in crafting a proposal of this nature? Explain.

During college we made some project proposals in our entrepreneurial and extension
subjects and some of it was presented in our department. Through these I can assure
that I have enough knowledge in crafting such proposals that I had learned in my
instructors in agribusiness and economics and attending seminars in relation to
agricultural production.

3. Is 10 days sufficiently long of short in crafting a proposal of this kind?

Ten days is sufficiently long if this proposal is the only work that you will do for the whole
ten days, but if it’s not, maybe an additional days are required to produce a full blown
proposal.