Livestock Project(Goats)

26th April 2023

OVERVIEW
The goat farming project involves raising and managing 220 goats on a 5-acre piece of land with the
objective of establishing a sustainable and profitable goat farming operation. The project aims to produce
high-quality meat, create employment opportunities, promote sustainable agriculture practices, and
contribute to food security. The project will require a significant investment of capital, time, and effort,
and will be measured by its profitability and impact on the local community and the environment.

GOALS
1. Establish a sustainable and profitable goat farming operation by managing the herd of 220 goats
in a healthy and sustainable manner, while minimizing costs and maximizing revenues.
2. Produce high-quality meat products by raising healthy and well-fed goats and adopting good
animal husbandry practices.
3. Create employment opportunities for local people by hiring five employees and two small
farmers, thus contributing to the development of the local economy.
4. Promote sustainable agriculture practices by utilizing natural resources efficiently, minimizing
waste, and reducing the environmental impact of the farm.
5. Contribute to food security by producing high-quality meat products that can be consumed locally
or sold in nearby markets, thus addressing the food insecurity issues that exist in many rural
communities.

PRODUCTION TECHNOLOGY
Project Location
The project location is in a rural area near your village, on a 5-acre piece of land that you own. This could
have a positive impact on the local economy by creating employment opportunities and contributing to
food security in the region. However, it's important to ensure that the project follows all relevant laws and
regulations related to animal husbandry, environmental protection, and land use, to minimize any
negative impact on the surrounding environment and communities.

Feed & Fodder Cultivation

Fertile land with assured irrigation facilities is available so that fodder crops can 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 cleaning, washing, etc. is available.

Labour
Honest, economic and regular supplies of labour are available

Veterinary Aid
Veterinary aid/ breeding centers facilities are available 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).
The availability of Mutton is less than the demand. It requires smaller investments and is not as risky a
business proposition as compared to Dairy. The sale of goats/goat meat is never a problem for the above
reasons. India occupies the first position in terms of goat population and milk production. The demand for
goat meat is increasing faster than the growth in the goat population. Goat plays a significant role in
providing supplementary income and livelihood to millions of resource-poor farmers and landless
labourers in rural India.

SWOT Analysis
Strengths
These are the internal attributes of the project that are positive and give it a competitive advantage over
other similar projects. For example, in the case of the goat farming project, the availability of a large
piece of land for raising goats, the experience, and knowledge of the project team, and the demand for
meat in products in the local market can be considered strengths.

Weaknesses
These internal factors put the project at a disadvantage and make it vulnerable to external threats. For
example, in the case of the goat farming project, a lack of experience in animal husbandry, limited
financial resources, and the possibility of disease outbreaks among the goats can be considered
weaknesses.

Opportunities
These are external factors that can contribute to the success of the project. For example, in the case of the
goat farming project, a growing demand for meat products, availability of government subsidies and
support for agricultural projects, and access to new markets can be considered opportunities.
 Threats
These are external factors that could negatively impact the project. For example, in the case of the goat
farming project, potential competition from other meat producers, changes in government policies related
to agriculture and animal husbandry, and natural disasters or diseases that can affect the health and
productivity of the goats can be considered threats.

SPECIFICATIONS
The goat farming project aims to establish a sustainable and profitable operation by raising and managing
220 goats on a 5-acre piece of land. The project focuses on producing high-quality meat by raising
healthy and well-fed goats, while creating employment opportunities for locals and promoting sustainable
agriculture practices. The project requires a significant investment of capital, time, and effort, but has the
potential to contribute to food security and the development of the local economy. The project will follow
good animal husbandry practices and utilize natural resources efficiently while minimizing waste and
reducing the environmental impact of the farm.

ECONOMICS OF THE PROJECT

Basics and Presumptions

1. Techno-economic Parameters

S. No Particulars Unit Quantity

1 Breed of goat Macherla

2 System of rearing Semi Intensive

3 No. of male goats 10

4 No. of female goats 210

5 Kidding interval Months 8

6 No. of kidding Per month 6

7 Kidding percentage % 80

8 Sex ratio 4.7

9 Mortality of kids % 10

10 Saleable age of kids Months 11

 2. Expenditure Norms

S. No Particulars Unit Quantity

1 Space requirement per head of male goat Sq. ft 15

2 Space requirement per head of female goat Sq. ft 15

3 Space requirement per head of kid Sq. ft 5

4 Cost of construction of shed per goat ₹ / Sq. ft 150

5 Cost of one Male goat ₹ 20,000

6 Cost of one Female goat ₹ 15,000

7 No. of unskilled labour Nos. 2

8 Cost of one unskilled labour per annum ₹ 72,000

9 Requirement of concentrate feed (adult per month) Kg 12

10 Requirement of concentrate feed (kid per month) Kg 5

11 Rate of concentrate food per Kg ₹ 20

12 Misc. expenditure (medicines and veterinary) ₹ 30,000

13 Electricity and water supply Per month 3,000

14 Rate of interest for bank loan % 12

15 Own contribution in project cost % 25

3. Income Norms

S. No Particulars Unit Quantity

1 Sale price of male goat ₹ 20,000

2 Sale price of female goat ₹ 15,000

 Total Cost of Project
Amount
S. No Particulars Unit Quantity ₹ / Unit
(₹)

1. Capital Cost

1 Land Own

2 Site development 2,10,000

3 Cost of male goat Nos. 10 25,000 2,50,000

4 Cost of female goat Nos. 210 15,000 31,50,000

5 Shed Sq. ft. 6,60,000

6 Water storage and distribution 75,000

7 Chaff cutter Nos. 2 25,000 50,000

8 Ropes and chains 25,000

9 Contingencies % 22,000 22,000

Total(1) 4442000

2. Working Capital(1st year requirement)

1 Fodder cultivation Acre/season 2 20,000 40,000

Concentrate feeds for 2 months @7.5Kg /

2 Kg 75,000
adult gaot per month

Concentrate feeds for kids

3 Kg 36,000
@4.5kg / kid per month

4 Wages of labour per annum Per labour 2 1,12,000 224000

5 Misc. Expenditure (Meds) 1,00,000

6 Electricity and water supply Per month 3,000 3,000

7 Transport Charges 30,000 30,000

Total(2) 508000

Total Cost Total (1+2) 4950000

 Means of Finance
S. No Particulars Unit Quantity

1 Bank Loan ₹ 20,00,000

2 Capital ₹ 5,00,000

3 Subsidy ₹ 25,00,000

Total ₹ 50,00,000

Projected Performance & Profitabilty

1. Flock Production Chart

S. No Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year-6

1 No. of kiddings / year

2 Nos. of kids born male

3 Nos. of kids born female

4 Nos. of kids died male 20%

5 Nos. of kids died female 20%

Nos. of male kids available for

6
sale

Nos. of female kids available

7
for sale
 2. Projected Profitability

Quantit
S. No Particulars ₹/Unit Year-1 Year-2 Year-3 Year-4 Year-5 Year-6
y

A. Annual Income

From sale of
1 male goats

From sale of
2 female goats

3 Mannure

Interest on
4 subsidy @ 6%

5 Subsidy

Total (A)

B. Expenditure

Concentrate
6 feeds

Concentrate
7 feeds for kids

Fodder
8 cultivation

Unskilled
9 workers

Misc
10 expenditure

Insurance of
11 animals

Electricity and
12 Water supply

Transport
13 charges

Total (B)

Total
C. Expenditure
(B-A)
 Financial Analysis
3. Flock Production Chart

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Total

Capital Cost

Recurring Costs

Total Cost

Benifit

Depreciated value of
machinery & equipment
@ 15%

Closing stock value

(Adult & Kid)

Total Benefit

Net Benefit

Discounting factor @
15%

NPV cost @ 15% DF

NPV benefits @ 15% DF

NPW at 15 % off

BCR at 15% off

IRRR %