Economics of Goat Rearing

START

TECHNO ECONOMIC ASSUMPTIONS

DETAILS OF INVESTMENT Developed by
PRODUCTION DETAILS
INCOME - EXPENDITURE STATEMENT Dr.A.Mohamed Safiullah
Associate Professor and Head
PROFIT AND LOSS STATEMENT Dept. of Animal Husbandry Economics,
REPAYMENT SCHEDULE Veterinary College and Research Institute
CASH FLOW STATEMENT Namakkal - 637 001.
FINANCIAL ANALYSIS OF THE PROJECT
 FINANCIAL ANALYSIS OF THE PROJECT

Particulars I year II year III year IV year V year VI year

Capital Investment 104000
Working Capital 4636 4636 4636 4636 4636 4636
Total Cost 108636 4636 4636 4636 4636 4636
Total Benefit 400 93600 217999 101116 99673 297999
Net Cash Flow -108236 88964 213362 96479 95036 293362
DCF at 20% 0.833 0.694 0.579 0.482 0.402 0.335
Disc. Benefit 333 65000 126157 48763 40056 99799
Disc.cost 90530 3220 2683 2236 1863 1553
NPV at 20% DCF -90197 61780 123474 46527 38193 98246
DCF at 25% 0.800 0.640 0.512 0.410 0.328 0.262
Disc. Benefit 320 59904 111615 41417 32661 78119
Disc.cost 86909 2967 2374 1899 1519 1215
NVP at 25% DCV -86589 56937 109242 39518 31142 76903

NPV at 20% 278024 B:C ratio at 20% 3.723

NPV at 25% 227152 B:C ratio at 25% 3.345

IRR 115%

Dr. A. md. Safiullah & Dr. N.Prema Dept. of AH Economics, VC & RI, Namakkal.
 CASH FLOW STATEMENT

Particulars I year II year III year IV year V year VI year

Cash Inflow
From Sale of Male Lambs 0 48000 110070 51750 51030 110070
From sale of Female Lambs 0 30000 92070 33750 33030 92070
From sale of culled Ewes 0 15000 15000 15000 15000 15000
From sale of manures 400 600 859 616 613 859
From Residual value 80000
Total Cash Inflow 400 93600 217999 101116 99673 297999

Outflow
Cost of feeding
a.Ewes 0 0 0 0 0 0
b.Ram 0 0 0 0 0 0
c. Lambs 0 0 0 0 0 0
Insurance cost 4000 4000 4000 4000 4000 4000
Veterinary aid 636 636 636 636 636 636
Total Outflow 4636 4636 4636 4636 4636 4636
Net Cash Inflow -4236 88964 213362 96479 95036 293362

Dr. A. Md. Safiullah & Dr. N.Prema Dept. of AH Economics, VC & RI, Namakkal.
 GOAT FARMING
TECHNO-ECONOMIC ASSUMPTIONS
1 Type of animal Jamunabari/Tellicherry
Buck Doe Kids
2 Initial Capacity 1 15
3 Cost of animals (Rs./animal) 10000 6000
4 Feed consumption (Kg/day) 0.25 0.25 0.1
5 No. of days of Feeding/Cycle 120 120 100
6 Cost of Feed
7 Floor space requirement (Sq.ft/animal) 15 10 4
8 Cost of construction (Rs./Sq.ft) (Thatched)
9 Cost of equipment (Rs./animal) 10
10 Insurance premium/animal (%) 4
11 Rate of Interest (%) 11.5
12 Depreciation on building (%) 10
13 Depreciation on feeding equipment (%) 10
15 Margin money requirement(%) 5
16 Repayment period 5
17 Veterinary aid/animal/year (Rs.) 25
18 Conception Rate (%) 90
19 Kidding %
I year 140
II year 160
20 Mortality Rate in Lambs % 10
21 Culling % 20
22 Inter kidding period (months) 9
Returns
23 Sale price of male kids at 7-8mts (Rs./animal) 6000
24 Sale price of female kids (Rs./animal) 4500
25 Sale price of culled does (Rs./animal) 5000
26 Income from manure (Rs./animal/year) 25
27 Net income towards repayment(%) 50
 DETAILS OF BANKABLE INVESTMENT

S.No. Particulars Value in Rs.

A Fixed Investment
1 Cost of Animals 100000
2 Cost of Shed 0
3 Cost of Equipment 160

Total Fixed Investment 100160

B Working Capital ( For 6 Months)

1 Insurance Charges for Animals 4000
2 Cost of Feed 0
3 Veterinary Aid 436
Total Working Capital 4436

Total Cost of the Project 104596

Cost of the Project

Loan from Bank 98000
Margin amount from entrepreneur 6000
Total Cost of the Project 104000
Home
 PRODUCTION CHART

Year Opening stock Lambs born Mortality in Lambs Lambs Sold Culled Transfer Closing Stock
Adult Lamb Adult of Lambs Adults Lambs
Male Female Male Female Male Female Male Female Male Female Female to Adults Male Female Male Female
1 1 15 0 0 9 9 1 1 0 0 0 0 1 15 8 8
2 1 15 8 8 11 11 1 1 8 5 3 3 1 15 10 10
3 1 15 10 10 20 20 3 3 18 15 3 3 1 15 9 9
4 1 15 9 9 9 9 1 1 9 6 3 3 1 15 9 9
5 1 15 9 9 11 11 1 1 9 6 3 3 1 15 10 10
6 1 15 10 10 20 20 3 3 18 15 3 3 1 15 9 9
 PROFIT AND LOSS STATEMENT

Particulars I year II year III year IV year V year VI year

Expenditure
Total Expenditure 15941 16425 11635 -2288 4659 4657
Net Expenditure (TE- Dep &Int) 4636 4636 4636 4636 4636 4636

Income
Total Income (TI) 400 93600 217999 101116 99673 297999
Net Income (TI-NE) -4236 88964 213362 96479 95036 293362

REPAYMENT SCHEDULE

Year Open Balance Interest Net profit Repayment of Total

Principal Interest Repayment Net surplus
I 98000 11270 -4236 -4236 11270 0 -4236
II 102236 11757 88964 41621 11757 53378 35586
III 60615 6971 213362 121047 6971 128017 85345
IV -60432 -6950 96479 64837 -6950 57888 38592
V 0 0 95036 0 0 0 95036
VI 0 0 293362 0 0 0 293362
 REPAYMENT SCHEDULE

Loan Amount 98000

Rate of Interest per annum 11.50 0.96 per month
Term of loan in Years 5 60 months
Payment due per year 26850.21
Payment due per month 2155.00
MONTH PAYMENT DUE PRINCIPAL INTEREST BALANCE
98000
1 2155 1216 939 96784
2 2155 1227 928 95557
3 2155 1239 916 94317
4 2155 1251 904 93066
5 2155 1263 892 91803
6 2155 1275 880 90528
7 2155 1287 868 89241
8 2155 1300 855 87941
9 2155 1312 843 86629
10 2155 1325 830 85304
11 2155 1338 817 83966
12 2155 1350 805 82616
13 2155 1363 792 81253
14 2155 1376 779 79876
15 2155 1390 765 78487
16 2155 1403 752 77084
17 2155 1416 739 75668
18 2155 1430 725 74238
19 2155 1444 711 72794
20 2155 1457 698 71337
21 2155 1471 684 69866
22 2155 1485 670 68380
23 2155 1500 655 66880
24 2155 1514 641 65366
25 2155 1529 626 63838
26 2155 1543 612 62295
27 2155 1558 597 60737
28 2155 1573 582 59164
29 2155 1588 567 57576
30 2155 1603 552 55972
31 2155 1619 536 54354
32 2155 1634 521 52720
33 2155 1650 505 51070
34 2155 1666 489 49404
35 2155 1682 473 47723
36 2155 1698 457 46025
37 2155 1714 441 44311
38 2155 1730 425 42581
39 2155 1747 408 40834
40 2155 1764 391 39070
41 2155 1781 374 37290
42 2155 1798 357 35492
43 2155 1815 340 33677
44 2155 1832 323 31845
45 2155 1850 305 29995
46 2155 1868 287 28127
47 2155 1885 270 26242
48 2155 1904 251 24338
49 2155 1922 233 22417
50 2155 1940 215 20477
51 2155 1959 196 18518
52 2155 1978 177 16540
53 2155 1996 159 14544
54 2155 2016 139 12528
55 2155 2035 120 10493
56 2155 2054 101 8439
57 2155 2074 81 6365
58 2155 2094 61 4271
59 2155 2114 41 2157
60 2177 2157 21 0
Home
 INCOME-EXPENDITURE STATEMENT

Particulars I year II year III year IV year V year VI year

Income
From Sale of Male Lambs 0 48000 110070 51750 51030 110070
From sale of Female Lambs 0 30000 92070 33750 33030 92070
From sale of culled Ewes 0 15000 15000 15000 15000 15000
From sale of manures 400 600 859 616 613 859
From Residual value 80000
Total Income 400 93600 217999 101116 99673 297999

Expenditure
Cost of feeding
a.Ewes 0 0 0 0 0 0
b.Ram 0 0 0 0 0 0
c. kids 0 0 0 0 0 0
Insurance cost 4000 4000 4000 4000 4000 4000
Veterinary aid 636 636 636 636 636 636
On depreciation
-Building 0 0 0 0 0 0
-Equipment 35 31 28 25 23 21
On interest 11270 11757 6971 -6950 0 0
Total Expenditure 15941 16425 11635 -2288 4659 4657
 DETAILS OF INVESTMENT
Sl.No Particulars (Rs.)

A FIXED INVESTMENT
1 Cost of animals
a. Ram 10000
b.Ewes 90000
2 Cost of shed 0
3 Cost of equipment 349

Total Fixed Investment 100349

B FIXED COST
1 Insurance cost 4000

Total Fixed Cost 4000

C VARIABLE COST
1 Cost of feeding 0
2 Veterinary aid 872.5
Total Variable Cost 873

GRAND TOTAL 105222