PROJECT REPORT ON

GOAT FARM

SUBMITTED BY

Mr. Sandeep Dinesh Sonawane S/o Dinesh Sonawane

F.no 11 Aditiya tower,
Dist Nasik, (MAHARASHTRA) Pincode
422005 Mobile No: - 9756935894

SUBMITTED UNDER

National Livestock Mission

SPONSORED BY

Department of Animal Husbandry & Dairying, Government of India

www.mm.udyamimitra.in

2023-24

Project Report by Mr. Sandeep dinesh sonawane under National Livestock Mission’
 C0 NTENTS

I. HIGHLIGHTS OF THE PROJECT REPORT

A. About the Applicant 3

B. Project Profile 4

II. PROJECT DESCRIPTION 5

III. MARKET POTENTIAL 6

IV. EXTENSION ACTIVITIES 7

V. SWOT ANALYSIS 8

VI. ECONOMICS OF THE PROJECT

A. Basis & Presumptions 9

B. Total Cost of Project 10

C. Means of Finance 11

D. Projected Performance & Profitability

Flock Production Chart 12

Projected Profitability 13

E. Financial Analysis 14
F. Term Loan Repayment 15
 CHAPTER - l

HIGHLIGHTS OF THE PROJECT REPORT

A.ABOUT THE APPLICANT

S. No. PARTICULARS

1 Name Mr. Sandeep Dinesh Sonawane

Flat no. 11 aditya tower,

2 Permanent Address Nasik- Maharashtra

3 Contact Number 9850147491

4 Education 12th Pass

5 PAN Card CPTPS4472Q

6 Aadhar Card 209426178104

Kadaknath Agro world GUT no. 1117/1/2, Malode vasti, old

7 Project Location Pazar Talav, Adgaon, Nashik-422003

8 Constitution Proprietorship

9 Product Kids, Manure etc.

 Project Report On: Goat Farming

A. Project Profile (Financial)

Sr. No. Parameters Value

1 Breed Barbari

2 Unit Size

Doe 500

Buck 25

3 Product Kids, Manure etc.

4 Cost of the project (Rs.) 12,606,719

5 Bank loan (Rs.) 6,346,047

6 Margin money (Rs.) 1,260,672

7 Subsidy 5,000,000

8 Financial Indicators

BCR at 15% DF 1.55 :1

N P W at 15% DF (Rs.) 12,728,085

IRR% 38.24

Average DSCR 3.5

9 Interest Rate (% per annum) 10

10 Repayment Period 6 years including

one year grace period

 CHAPTER - II

PROJECT DESCRIPTION

Introduction

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 can efficiently survive on available shrubs and
trees in adverse harsh environment in low fertility lands where no other crops can be grown. In
pastoral and agricultural subsistence societies in India, goat is kept as a source of additional income
and as an insurance against disaster.
Goats are among the main meat-producing animals in India, whose meat is one of the choicest
meats and has huge domestic demand. The emerging favorable market conditions and easy
accessibility to improved goat technologies are also catching the attention of entrepreneurs. Due
to its good economic prospects, 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.
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 labors are available.
Veterinary Aid:
Veterinary aid/breeding centers facilities are availability near the goat farm.
 CHAPTER-III

MARKET POTENTIAL

In India all prefer goat meat. Indians' love for goat meat has led to the commodity's price increasing
at 20% per annum. The demand for goat meat is increasing faster than the growth in goat population.

The goat meat is a high protein diet with high nutritional value. The goat meats are widely used in
various hotels and restaurants. It is also used at special occasions like parties and marriages.

Direct marketing of animals is highly profitable. Involvement of middleman can reduce the price of
animals. There is also scope for exporting Frozen Goat Meat.

There is always good opportunity for goat owners during Bakri Id festival. There is a mad rush of
customers looking for goats during this festive period, which they would sacrifice on Bakri Id day. The
prices goat goes high varying between Rs 10,000 and Rs 50,000 per goat.

As the demand far exceeds supply, goat meat prices have been increasing steadily. This increased
price has created a need and opportunity for a large scale organized and scientific method of goat
rearing in controlled conditions (Stall-Fed method).
 CHAPTER - IV

EXTENSION ACTIVITIES

1. Starting a goat farming business requires planning and preparation. Before starting a goat farm the
entrepreneurs/ farmers are generally advised to undergo training. They can contact Local Animal
Husbandry Department staffs/Veterinary College/agriculture University etc. for the purpose.
However availability of training facilities & resources are inadequate. Hence I will provide training on
goat farming to farmers both onsite and off-site. During training program special thrust health
management (medications and vaccinations used), fodder management, kids' management & kind
of records to be kept in the farm will be also given.

2. For the farmers of nearby locality, visits will be arranged on my goat farm & they will be educated
on scientific lines regarding various aspects of goat management. It will help them to improve their
knowledge and skill regarding scientific practices to enable them to adopt the same.

3. Farmers will be motivated to adopt improved breeds of goat.

4. I will take Initiatives to strengthen linkages between State Departments, Dairy Development
agencies, NGO's and farmers.

5. For farmers who have decided to avail loan from bank for goat farming, assistance will be provided
to prepare their bankable project report.

6. For the marketing of animals, farmers will be provided necessary support & guidance.

7. Visits of farmers will be arranged to exhibitions with the prime objective of exposing them the
technological innovations.

8. Nowadays internet has become important tool to get latest information. There are various websites
available on goat farm, which provides useful content. This information will be shared to farmers.

9. Necessary assistance will be given to farmers for setting up model sheds and goat farm units

10. Field visits of goat farmers will be arranged to progressive farmers & research stations, which
will motivate them to adapt good husbandry practices.
 CHAPTER - V

SWOT ANALYSIS

Strenqths:

• 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
whereno 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 labor.
• 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 to 6 months. The probability of producing Mins 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
extremelylow 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 bigchallenge to the industry.
 CHAPTER -VI
ECONOMICS OF THE PROJECT

Project Report On: Goat Farming

A. BASIS & PRESUMPTIONS

Sr. Particular Unit Quantity

No.
I. Techno-economic parameters
Breed of Goat Barbari
Semi
System of rearing
Intensive
No. of Does 500
No. of Bucks 25
Age at Maturity Months 10 to 12
Kidding interval Months 8
No of kidding per year 1.5
Kidding percentage % 80
Average litter size (average of single, Winning,
1
Triplet, quadruplet)
Sex ratio 1.1
Mortality(%) Kids % 20
Saleable age of kids months 11

6 years including
Payback period moratorium for the
1st year
II. Expenditure norms
Space requirement per head for Buck & Doe sq ft. 5,500
Space requirement per head for kid sq ft. 3,500
Cost of construction of sheds for buck, doe & kid sq ft. 285
Cost of one Doe (Female) Rs. 12,000
Cost of one Buck (Male) Rs. 20,000
No of unskilled labour Nos. 3
Cost of one unskilled labour per annum Rs. 120,000
Cost of Chaff of cutter- 1 nos. Rs. 22,000
Rate of concentrate per kg Rs. 20
Misc, expenditure i.e. vaccine medicine and veterinary aid etc Rs. 300
Electricity and Water supply per month Rs. 3,000
Rate of interest for bank loan (%) 10
Own contribution in project cost (%) 10
Ill. Income norms
Sale price of Buck/(11 month) Rs. 18,000
Sale price of Doe/(11 month) Rs. 12,000
 Project Report On: Goat Farming

B. TOTAL COST OF PROJECT

Sr. Unit
No. Particular Unit Quantity Amount in Rs.
rate
Capital Cost
I Land & Site development
1 Land Leased Deed
2 Site development Ls 0

II. Cost of Animals

1 Cost of Does Nos. 12,000 500 6,000,000
2 Cost of Bucks Nos. 20,000 25 500,000
6,500,000
III. Cost of Buildings
1 Shed for animals ( Sheds of 285 5,500 1,567,500
Sq.ft..
each size 55' * 100')
2 Shed for Kids (Size 100 *35) Sq.ft.. 285 3,500 997,500
2,565,000
IV Machineries & Equipments
1 Chaff cutter Nos. 22,000 2 44,000
2 Integrated Silage Machine Nos. 160,000 1 160,000
204,000
V Miscellaneous expenses
1 Fodder Cultivation Rs./Acre 20000 5 100,000
2 Insurance % 7.5 487,500
3 Transport Charges Ls 200 525 105,000
4 Other expenses Approx 50,000
742,500

TOTAL (A) 10,011,500

B. Working Capital for one production cycle

Concentrate feeds of Parent Rs./kg
1 47,906 20 958,125
stocks
2 Concentrate feeds for Kids Rs./kg 18,250 20 365,000
3 Dry Fodder Rs./Kg 143,719 5 718,594
Rs./per
4 Unskilled workers 120,000 3 360,000
annum
5 Electricity and Water supply per month 3,000 12 36,000
Misc, expenditure i.e. vaccine Per
6 300 525 157,500
medicine and veterinary aid etc Animal/Year
TOTAL (B) 2,595,219
TOTAL
(A+B) 12,606,719
 Project Report On: Goat Farming

C. MEANS OF FINANCE

Sr.
Particular Unit Quantity Amount in Rs.
No.

1 Term loan % 50.34 6,346,047

2 Own contribution % 10.00 1,260,672

3 Capital Subsidy entitlement under % 39.66 5,000,000

National Livestock Mission Schemes

Maximum Subsidy Amount 50 lakh or 50%

TOTAL 12,606,719
 Project Report On: Goat Farming

E. PROJECTION OF PERFORMANCE & PROFITABILITY

1. Flock Production Chart

Particular Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

No. of kidding/year 1.5 1.5 1.5 1.5 1.5 1.5

No. of kids born male 375 375 375 375 375 375

No. of kids born female 375 375 375 375 375 375

No of kids died male 20% 75 75 75 75 75 75

No of kids died female 20% 75 75 75 75 75 75

Kids produced in first

No. of male kids available for sale year will be sold in 300 300 300 300 300
second year & so on

No. of female kids available for sale 300 300 300 300 300
II. Projected Profitability
Unit Unit rate
Sr. Particular in Rs. Quantity I year II year III year IV year V year VI year
No.
1. Income

A From sale of male goats Buck 18000 300 5,953,500 6,563,734

5,400,000 5,670,000 6,251,175

From sale of female

B Doe 12000 300 3,969,000 4,375,823
goats 3,600,000 3,780,000 4,167,450

C Manure Tone 1000 105 105,000 115,763 127,628

105,000 110,250 121,551
D Subsidy 5,000,000

TOTAL (A) 5,105,000 9,105,000 9,560,250 10,038,263 10,540,176 11,067,184

11. Expenditure
A Fodder Cultivation
Rs./acre 20,000 5 100,000 110,000 121,000 133,100 146,410 161,051
B Dry Fodder
Rs./Kg 143,719 5 718,594 790,453 869,498 956,448 1,052,093 1,157,302
Concentrate feeds of
Parent stocks
Rs./kg 47,906 20 958,125 1,053,938 1,159,331 1,275,264 1,402,791 1,543,070
Concentrate feeds for
D Rs./kg 18,250 20 365,000 401,500 441,650 485,815 534,397 587,836
Kids
Rs./per 120,000 3 360,000 396,000 435,600 479,160 527,076 579,784
E Unskilled workers
annum
F Insurance % 7.50 487,500 487,500 487,500 487,500 487,500 487,500
Electricity and Water
G supply per month 3,000 36,000 39,600 43,560 47,916 52,708 57,978
Misc, expenditure
Per
H i.e. vaccine medicine 300 525 157,500 173,250 190,575 209,633 230,596 253,655
Animal/Year
and veterinary aid etc
Transport Charges Ls 105,000 115,500 127,050 139,755 153,731 169,104
TOTAL (B) 3,287,719 3,567,741 3,875,765 4,214,591 4,587,300 4,997,280
III. Net Income TOTAL (A-B) 1,817,281 5,537,259 5,684,485 5,823,671 5,952,875 6,069,904
 Project Report On: Goat Farming

E. Financial Analysis
Particulars I year II year III year IV year V year VI year

Capital Costs 9,269,000

Recurring cost 3,287,719 3,567,741 3,875,765 4,214,591 4,587,300 4,997,280

Total Cost 12,556,719 3,567,741 3,875,765 4,214,591 4,587,300 4,997,280

Benefit 5,105,000 9,105,000 9,560,250 10,038,263 10,540,176 11,067,184

Depreciated value of buildings, fencing,
1,501,808
borewell etc. @ 10%
Depreciated value of equipments @ 15% 87,414

Closing stock value ( adults & kids) 3,864,300

Total Benefit 5,105,000 9,105,000 9,560,250 10,038,263 10,540,176 16,520,706

Net Benefit -7,451,719 5,537,259 5,684,485 5,823,671 5,952,875 11,523,426

Discounting Factor@ 15% 0.87 0.76 0.66 0.57 0.50 0.43

NPV cost at 15% DF 10,924,345 2,711,483 2,558,005 2,402,317 2,293,650 2,148,831

NPV benefits at 15% DF 4,441,350 6,919,800 6,309,765 5,721,810 5,270,088 7,103,904

NPW at 15% DF 12,728,085

BCR at 15% DF 1.55 :1

IRR % 38.24
 Project Report On: Goat Farming

G. Term Loan Repayment

Rate of interest - % per annum : 10.00

Opening balance of term loan : 6,346,047

Year Loan Outstanding Gross Surplus Principal Interest Total Repayment Net Surplus DSCR

1 6,346,047 634,605

2 6,346,047 5,537,259 1,269,209 634,605 1,903,814 3,633,445 2.9

3 5,076,838 5,684,485 1,269,209 507,684 1,776,893 3,907,592 3.2

4 3,807,628 5,823,671 1,269,209 380,763 1,649,972 4,173,699 3.5

5 2,538,419 5,952,875 1,269,209 253,842 1,523,051 4,429,824 3.9

6 1,269,209 6,069,904 1,269,209 126,921 1,396,130 4,673,774 4.3

Avg DSCR 3.5