Model project report for goat farming

with 100 female & 5 male goats

India has a very large and diverse genetic resource of goats. Goat plays a significant role in economic upliftment of
rural poor . Consumption of goat meat (chevon) is increasing rapidly due to its social acceptability. This sector has
tremendous potential in employment generation & poverty reduction. Before starting a Goat farm the
entrepreneurs/ farmers are advised to undergo training on goat farming. They can contact Local Animal
Husbandry Department staffs/Veterinary College/agriculture University etc. for the purpose. They should also visit
progressive Goat farmers and government/ agricultural university goat farm in the locality. They must check the
following points before starting a goat farm.

1. Availability of good quality Parent stock in the locality

2. Marketing facility for goat & goat meat

3. Nearness of farm to veterinary hospital/Livestock Aid center

4. Availability of concentrates ,fodder& medicine in that locality.

This project report is based on following assumption:-

1- Adult healthy Does& bucks of black Bengal breed within 2 years of age will be purchased

2- Manure produced in the farm will be utilized for fodder cultivation

3- In case of death of adult goats new animal will be purchased from insurance claim money

4- The above project will be economically viable under proper care & attention of the
entrepreneur.

Techno-economic parameters
Breed of Goat Black Bengal
System of rearing Semi intensive
No. of Bucks 5
No. of Does 100
Age at Maturity (Months) 10-12
Kidding/ interval (Months) 8
No of kidding/year 1.5
Kidding percentage 90
Average litter size (average of single, twinning, Triplet, quadruplet) 2
Sex ratio 1:1
Mortality(%) Kids 15
Saleable age of kids (months) 11
Expenditure norms
Space requirement sqft.per head for Buck 15 ,
Space requirement sqft.per head for doe 10
Space requirement sqft.per head/kid 4
Cost of construction (Rs.persft) Doe, Bucks ,Kids 200
Cost of equipment (Rs.per adult animal) 20
Cost of green fodder cultivation (Rs./acre/season) 6000
Concentrate feed : Adult does
6.75 kg per month
(one month before breeding and one month after kidding i.e. per kidding)
Concentrate feed for Bucks (two months per breeding season) 7.5 kg per month
Concentrate feed for Kids (for 30 days) 3.75 kg per kid
Cost of conc. feed (Rs./kg) 18
Labour (No.) 1
Labour wages (Rs.per month) 6000
Purchase price of buck 7000/buck
Purchase price of doe 4500/doe
Insurance (as percentage of the cost of breeding stock) 4
Veterinary aid (Rs./adult/year) 50
Income norms :
Sale price of Buck/(11month) 3200
Sale price of Doe/(11month) 3000
Income from manure is not assumed as it is used on the own farm for
fodder cultivation.
Sale of Gunny bags (Rs./bag) 10
Repayment norms:
Repayment period (years) 6
Grace Period (years) 1
Interest rate(%) 12
 Flock projection chat for Black Bengal Breed Goats

Year 1st 2nd 3rd 4th 5th 6th

No. of does purchased 100

No. of bucks
5
purchased

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

No. of kids born male 135 135 135 135 135 135

No. of kids born

135 135 135 135 135 135
female

No of kids died male

20 20 20 20 20 20
15%

No of kids died female

20 20 20 20 20 20
15%

Kids
produced in
No. of male kids first year
115 115 115 115 115
available for sale will be sold
in second
year & so on

No. of female kids

115 115 115 115 115
available for sale
A-Capital cost (Amount in Rs.)
Construction low cost Shed for 100does @ 10sq.ft/adult
200000
Doe(Rs.200/sq.ft
Construction of Shed for 5 [email protected]/buck
15000
(Rs.200sq.ft buck shed )
Construction of Shed for230 kids @4 sq.ft./ kids
184000
(920sq.ft)@(Rs200./-sqft
Equipment feeding trough buckets etc 20000
Cost of 100 does@ 4500/doe 450000
Cost of 5 bucks@7000/buck 35000
Bore well with pump set 800000
949000
TOTAL CAPITAL COST

Working Capital
Wages for one labour @6000/month for 1 year 72000
Cost of insurance 4% of animal cost 19400
Cost of concentrate feed for 100 does @6.75kg/month/doe for two
24750
months i.e kg@18/kg
Cost of concentrate feed for 5bucks @7.5kg/adult animal for two
1350
months @ 18/kg
Cost of concentrate feed for 230 [email protected] kg/kid /month i.e 900kg
16200
for one month @18/kg
Fodder cultivation in 4 acres of land@6000/acre/season 24000
Misc, expenditure
20000
i.e. vaccine medicine and veterinary aid and electricity
Contingency 9650
186000
Total Working Capital

TOTAL PROJECT COST 1135000

Margin money @25% of project cost 283750
851250
Bank loan@75% of project cost
CASH FLOW Project period (year) Amount in Rs.
i ii iii iv v Vi
Wages for labour 72000 72000 72000 72000 72000 72000
@100/day for 1 year
Cost of insurance 4% of 19400 19400 19400 19400 19400 19400
animal cost
Cost of concentrate feed 40950 40950 40950 40950 40950 40950
for buck does and kids
Fodder cultivation of 48000 48000 48000 48000 48000 48000
land@6000/acre/crop
Misc, expenditure 20000 20000 20000 20000 20000 20000
i.e. vaccine medicine and
veterinary aid
Total expenditure 200350 200350 200350 200350 200350 200350

Sale price of male goats 368000 368000 368000 368000 368000

@3200/buckling
Sale price of female goats - 345000 345000 345000 345000 345000
@3000/doeling
Sale price of gunny bag 460 460 460 460 460 460
Value of closing stock 100 607500
doe, 5buck, @ average
2500/adult

& 230 kids @ 1500/kid

Value of shed 159600

(10% depreciation/year
Value of equipment -

(20% depreciation /year)

Total 460 713460 713460 713460 713460 1480560

Gross profit -199890 513110 513110 513110 513110 1280210

Calculation of BCR and IRR

1 2 3 4 5 6
Capital Costs 949000
200350 200350 200350 200350 200350 200350
Recurring Cost
1149350 200350 200350 200350 200350 200350
Total Costs
460 713460 713460 713460 713460 1480560
Benefit
-1148890 513110 513110 513110 513110 1280210
Net Benefit

Sl no Financial indicators Estimated value Preferred value

Net Present Worth (NPW) 828277.02
1 Should be +ve
@15% DF
2 Benefit Cost Ratio(BCR)@15% DF 1.52:1 >1
3 Internal Rate of return (IRR) 29.57 >15%
4 Debt Service Credit Ratio (DSCR) 2.48 >1.5

Bank loan=851250

Interest =12% Grace period- 1 year

Total loan at the end of grace period =851250+102150

=953400.00

Repayment schedule

Monthly
S.No Installment Interest Principal Balance
0 953400
1 18639 9534 9105 944295
2 18639 9443 9196 935099
3 18639 9351 9288 925810
4 18639 9258 9381 916429
5 18639 9164 9475 906955
6 18639 9070 9570 897385
7 18639 8974 9665 887720
8 18639 8877 9762 877958
9 18639 8780 9860 868098
10 18639 8681 9958 858140
11 18639 8581 10058 848082
12 18639 8481 10158 837924
13 18639 8379 10260 827664
14 18639 8277 10363 817301
15 18639 8173 10466 806835
16 18639 8068 10571 796264
17 18639 7963 10677 785588
18 18639 7856 10783 774805
19 18639 7748 10891 763914
20 18639 7639 11000 752914
21 18639 7529 11110 741804
22 18639 7418 11221 730582
23 18639 7306 11333 719249
24 18639 7192 11447 707802
25 18639 7078 11561 696241
26 18639 6962 11677 684565
27 18639 6846 11794 672771
28 18639 6728 11911 660860
29 18639 6609 12031 648829
30 18639 6488 12151 636678
31 18639 6367 12272 624406
32 18639 6244 12395 612011
33 18639 6120 12519 599492
34 18639 5995 12644 586847
35 18639 5868 12771 574077
36 18639 5741 12898 561178
37 18639 5612 13027 548151
38 18639 5482 13158 534993
39 18639 5350 13289 521704
40 18639 5217 13422 508282
41 18639 5083 13556 494726
42 18639 4947 13692 481034
43 18639 4810 13829 467205
44 18639 4672 13967 453238
45 18639 4532 14107 439131
46 18639 4391 14248 424883
47 18639 4249 14390 410493
48 18639 4105 14534 395959
49 18639 3960 14680 381279
50 18639 3813 14826 366453
51 18639 3665 14975 351478
52 18639 3515 15124 336354
53 18639 3364 15276 321078
54 18639 3211 15428 305650
 55 18639 3056 15583 290067
56 18639 2901 15738 274329
57 18639 2743 15896 258433
58 18639 2584 16055 242378
59 18639 2424 16215 226163
60 18639 2262 16378 209785
61 18639 2098 16541 193244
62 18639 1932 16707 176537
63 18639 1765 16874 159663
64 18639 1597 17043 142621
65 18639 1426 17213 125408
66 18639 1254 17385 108023
67 18639 1080 17559 90464
68 18639 905 17735 72729
69 18639 727 17912 54817
70 18639 548 18091 36726
71 18639 367 18272 18455
72 18639 185 18455 0

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assumes no financial liability for anyone using this project report for any purpose.