PROJECT REPORT ON

GOAT FARMING

SUBMITTED BY

Name
Vill.:, post:
District:
Mobile No.:

SUBMITTED UNDER
National Livestock Mission

Sponsored by-
Ministry of Agriculture & Farmers Welfare, Government of India

PREPARED BY

2023-2024
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CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

I. HIGHLIGHTS OF THE PROJECT REPORT

A. About the Promoter 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
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CHAPTER - I

HIGHLIGHTS OF THE PROJECT REPORT

A. ABOUT THE PROMOTER

PARTICULARS ABOUT THE PROMOTER

1. Name :

2. Address :

3. Contact number

4. Date of birth :

5. Educational qualification :

6. Project location :

7. Professional Experience

8. Constitution :
 Page 4 of 15

B. PROJECT PROFILE (FINANCIAL)

PARAMETERS VALUES

1. Breed Sirohi

2. Unit Size

Doe 20

Buck 1

3. Product Kids, Manure etc

4. Cost of the project 592,970

5. Bank loan 504,024

6. Margin money 88,946

7. Financial Indicators

BCR at 15% DF 1.43:1

NPW 15% DF(Rs.) 505,299

IRR (%) 55.54

DSCR 2.5

8. Interest rate (% per annum) 10.00

6 years including moratorium

9. Repayment period
for the 1st year
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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.

Housing:

Low cost housing will be constructed in such a way in a raised platform (about 1 meter height from ground level) by
using bamboo/wooden poles or ‘pakka’ building by establishing concrete pillars. Floor and side walls will be made of
wooden material. Roof will be thatched with coconut leaves, grass or asbestos sheets. Average floor space per kid is
0.75 to 1 sq. meter. Floor should have at least 1 cm space between bamboos/wooden planks to allow passage of
dung and urine down to the ground.

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 labours are available.

Veterinary Aid:

Veterinary aid/breeding centers facilities is availability near the goat farm.

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CHAPTER - III

MARKET POTENTIAL

In India goat meat is preferred by all. 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).
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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 so as 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
gota 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.
 Page 8 of 15

CHAPTER - V

SWOT ANALYSIS

Strengths:

• 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 where
no 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 twins 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 extremely
low 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 big
challenge to the industry.
 Page 9 of 15

CHAPTER - VI
ECONOMICS OF THE PROJECT
A. BASIS & PRESUMPTIONS
PARTICULARS UNIT QUANTITY
I. Techno-economic parameters
Breed of goat Sirohi
System of rearing Semi Intensive
No. of does 20
No. of bucks 1
Age of 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, twinning, triplet, quadruplet) 2
Sex ratio 1.1
Mortality of kids % 20
Saleable age of kids Months 11
Payback period: 6 years including moratorium for the 1st year
II. Expenditure norms
Space requirement per head for buck Sq.ft 15
Space requirement per head for doe Sq.ft 15
Space requrement per head for kid Sq.ft 4
Cost of construction of shed for buck,doe & kid Rs./sq.ft 160
Cost of one doe (Female) Rs. 5,000
Cost of one buck (Male) Rs. 5,000
No. of unskilled labour Nos. 1
Cost of one semiskilled labour/annum Rs. 84,000
Cost of chaff cutter - 1 nos. Rs. 10,000
Requirement of concentrate feed (adult animal/month) Kg. 10.5
Requirement of concentrate feed (kid/month) Kg. 4.5
Rate of concentrate per Kg Rs. 20
Misc. expenditure i.e. Vaccine medicine and Veterenery aid per animal per
Rs. 250
year
Electricity and Water supply per month Rs. 2,000
Rate of interest for bank loan % 10.00
Own contribution in project cost % 15
III. Income norms
Sale price of Buck (at the age 11 months) Rs. 12,000
Sale price of Doe (at the age 11 months) Rs. 10,000
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B. TOTAL COST OF PROJECT

PARTICULARS UNIT UNIT RATE QUANTITY AMOUNT

Rs. Rs.

I.Capital Cost

1.Land Own

2.Site development Ls. 120,000

3.Cost of does Nos. 5,000 20 100,000

4.Cost of bucks Nos. 5,000 1 4,000

5.Shed for does Sq.ft. 160 300 48,000

6.Shed for bucks Sq.ft. 160 12 1,920

7.Shed for kids Sq.ft. 160 300 48,000

8.Equipment for feeding-ghemale & other Nos. 100 21 2,080

9.Chaff cutter Nos. 10,000 1 10,000

10.Rope,chains Ls. 5,000

11.Water storage and distribution Ls. 10,000

12.Contengencies % 5 17,450

TOTAL-A 366,450

II.Working Capital (Ist Year requirement)

1.Concentrate feeds Rs./Kg. 20 2,520 50,400

2.Concentrate feeds for kids Rs./Kg. 20 1,296 25,920

3.Fodder cultivation Acre/year 5,000 2 10,000

4.Unskilled workers Nos. 84,000 1 84,000

5.Misc expenditure i.e.vaccine, medicine animals 250 68 17,000

6.Insurance % 5 5,200

7.Electricity and Water supply Rs./month 2,000 12 24,000

8.Transport charges Ls. 10,000

TOTAL-B 226,520

TOTAL COST OF PROJECT TOTAL (A+B) 592,970

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C. MEANS OF FINANCE

PARTICULARS UNIT UNIT RATE AMOUNT Rs.

1. Term loan % 85 504,024

2. Own contribution % 15 88,946

TOTAL 592,970
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D. PROJECTED PERFORMANCE & PROFITABILITY

I. FLOCK PRODUCTION CHART

PARTICULARS IYEAR IIYEAR IIIYEAR IVYEAR VYEAR VIYEAR

Nos. of kidding/year 1.5 1.5 1.5 1.5 1.5 1.5

Nos. of kids born male 30 30 30 30 30 30

Nos. of kids born female 30 30 30 30 30 30

Nos. of kids died male 20% 6 6 6 6 6 6

Nos. of kids died female 20% 6 6 6 6 6 6

Nos. of male kids available for sale * 24 24 24 24 24

* Kids produced in first year will be sold in second year & so on.

Nos. of female kids available for sale - 24 24 24 24 24

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II. PROJECTED PROFITABILITY

(Value in Rs.)

PARTICULARS UNIT UNIT RATE QUANTITY I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR

I. Income

1.From sale of male goats Buckling 12,000 24 - 288,000 288,000 288,000 288,000 288,000

2.From sale of female goats Doeling 10,000 24 - 240,000 240,000 240,000 240,000 240,000

3.Mannure Tonne 5,000 4 20,000 20,000 20,000 20,000 20,000 20,000

TOTAL (A) 20,000 548,000 548,000 548,000 548,000 548,000

II. Expenditure

1.Concentrate feeds Rs./kg 20 2,520 50,400 50,400 50,400 50,400 50,400 50,400

2.Concentrate feeds for kids Rs./kg 20 1,296 25,920 25,920 25,920 25,920 25,920 25,920

3.Fodder cultivation Acre/year 5,000 2 10,000 10,000 10,000 10,000 10,000 10,000

4.Unskilled workers Nos. 84,000 1 84,000 84,000 84,000 84,000 84,000 84,000

5.Misc expenditure i.e vaccine,

Per animal 250 68 17,000 17,000 17,000 17,000 17,000 17,000
medicine

6.Insurance of animals % 5 5,200 5,200 5,200 5,200 5,200 5,200

7.Electricity and Water supply / month 2,000 12 24,000 24,000 24,000 24,000 24,000 24,000

8.Transport charges Ls. 10,000 10,000 10,000 10,000 10,000 10,000

TOTAL (B) 226,520 226,520 226,520 226,520 226,520 226,520

III. Net Income TOTAL(A-B) -206,520 321,480 321,480 321,480 321,480 321,480
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E. FINANCIAL ANALYSIS

(Value in Rs.)

PARTICULAR I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR TOTAL

Capital costs 366,450

Recurring costs 129,116 113,260 226,520 226,520 226,520 226,520

TOTAL COST 592,970 113,260 226,520 226,520 226,520 226,520

Benefit 20,000 548,000 548,000 548,000 548,000 548,000

Depreciated value of building @10% 57,332

Depreciated value of machinery &

7,319
equipments @15%

Closing stock value (adults & kids) @

86,654
10% Depreciation

TOTAL BENEFIT 20,000 548,000 548,000 548,000 548,000 699,305

NET BENEFIT -572,970 321,480 321,480 321,480 321,480 472,785

Discounting factor @15% 0.87 0.76 0.66 0.57 0.5 0.43

NPV cost at 15% DF 515,884 172,155 149,503 129,116 113,260 97,404 1,177,322

NPV benefits at 15% DF 17,400 416,480 361,680 312,360 274,000 300,701 1,682,621

NPW at 15% DF 505,299

BCR at 15% DF 1.43:1

IRR% 55.54
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F. TERM LOAN REPAYMENT

Rate of interst - % per annum : 10.00

Opening balance of term loan : 504,024

(Value in Rs.)

Loan Total
Year Net Income Principal Interest Net Surplus DSCR
Outstanding Repayment
1 504,024 - - 50,402 - - -

2 504,024 321,480 100,805 50,402 151,207 170,273 2.1

3 403,219 321,480 100,805 40,322 141,127 180,353 2.3

4 302,414 321,480 100,805 30,241 131,046 190,434 2.5

5 201,610 321,480 100,805 20,161 120,966 200,514 2.7

6 100,805 321,480 100,805 10,080 110,885 210,595 2.9

Average DSCR 2.5