Project Report on Got Farming

Project Report On

Goat Farming

SUBMITTED BY:

Promoter Name:
Xxxxxxxxxxxxxxxxxxxx
Project Location:
xxxxxxxxxxxxxxxxxxxxxxxx

Prepared by:
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1187/67, Ground Floor, Gruhalaxmi,
J.M. Road, near Balgandharva Chowk,
Pune, Maharashtra 411005.
 Project Report on Got Farming

CONTENTS

CHAPTER PARTICULARS
NOS.

I. ABOUT THE PROMOTER

II. PROJECT DESCRIPTION

III. MARKET POTENTIAL

IV. SWOT ANALYSIS

V. ECONOMICS OF THE PROJECT

A. Project Profile

B. Basis & Presumptions

C. Total Cost of Project

I. Capital Cost
II. Working Capital

D. Means of Finance

E. Projected Profitability
I. Flock Production Chart
II. Projected Profitability

F. Financial Analysis

G. Term Loan Repayment

 Project Report on Got Farming

CHAPTER – I

ABOUT THE PROMOTER

1. Name : xxxxxxxxxxxxxxx

2. Address : xxxxxxxxxxxx

3. Contact number : xxxxxxxxxxxx

4. Date of birth : xxxxxxxxxxxx

5 Adhar No : xxxxxxxxxxx

6. Educational Qualification: xxxxxxxx

7. Project Location : xxxxxxxxxxxxxx

8. Constitution : xxxxxxxxxxxx

9. Experience : 2 year
 Project Report on Got Farming

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.
 Project Report on Got Farming

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 3,000 and Rs 40,000 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).
 Project Report on Got Farming

CHAPTER – IV

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.

WEAKNESS:

 Large-scale, organized goat farming has not yet become a successful venture in the
country.
 High mortality rate of goat kids

OPPORTUNITY:

 High and ready market of goat meat

 Confirmed ever increasing Market price.

THREATS:

 The goat population is increasing & according to the government census, declining
grazing land poses a big challenge to the industry.
 Project Report On Goat Farming

CHAPTER- VI
ECONOMICS OF THE PROJECT

A. Project Profile (Financial)

Sr. No. Paramaters Value

1 Breed Osmanabadi Semi

Intensiv
2 Unit Size

Doe 25

Buck 3

3 Product Kids, Mannur etc .

4 Cost of the project (Rs.) 7,95,040

5 Bank loan (Rs.) 5,96,280

6 Margin money (Rs.) 1,98,760

7 Financial Indicators

BCR at 15% DF 1.16 :1

N P W at 15% DF (Rs.) 2,46,575

IRR% 22.14

Average DSCR 2.4

8 Interest Rate (% per annum) 12.00

9 Repayment Period 7years including

Two year grace period

 Project Report On Goat Farming

B. BASIS & PRESUMPTIONS

Sr. No. Particular Unit Quantity

I. Techno-economic parameters
Breed of Goat Osmanabadi
System of rearing Semi
intensive
No. of Does 25
No. of Bucks 3
Age at Maturity Months 10 to12
Kidding interval Months 8
No of kidding per year 1.5
Kidding percentage % 80
Average litter size (average of single, twinning, 2
Triplet, quadruplet)
Sex ratio 1.1
Mortality(%) Kids % 20
Saleable age of kids months 11
Payback period 7 years including
II. Expenditure norms
Space requirement per head for Buck sq ft. 15
Space requirement per head for doe sq ft. 15
Space requirement per head for kid sq ft. 4
Cost of construction of sheds for buck, doe & kid Rs. Per sq. ft. 160

Cost of one Doe (Female) Rs. 8,000

Cost of one Buck (Male) Rs. 10,000
No of unskilled labour Nos. 1
Cost of one unskilled labour per annum Rs. 70,000
Electric Motor Rs. 15,000
Weighing Machine Rs. 10,000
Chaff Cutter Rs. 25,000
Requirement of concentrate feed per adult animal Kg. 10.5
per month
Requirement of concentrate feed per kid per Kg. 4.5
month
Rate of concentrate per kg Rs. 17
Misc, expenditure i.e. vaccine medicine and Rs. 28,000
veterinary aid per animal per year
Electricity and Water supply per month Rs. 2,000
Transport charges Rs. 20,000
Rate of interst for bank loan (%) 12.00
Own contribution in project cost (%) 25
III. Income norms
Sale price of Buck/(11month) Rs. 10,000
Sale price of Doe/(11month) Rs. 9,000
 Project Report On Goat Farming

C. TOTAL COST OF PROJECT

Amount in
Sr. No.Particular Unit Unit rate Quantity
Rs.
I. Capital Cost
1 Land Own
2 Site development Ls 50,000
3 Cost of Does Nos. 8,000 25 2,00,000
4 Cost of Bucks Nos. 10,000 3 30,000
5 Transport cost for Goats Ls. 150 28 4,200
6 Shed for Does Sq.ft.. 200 375 75,000
7 Shed for Bucks Sq.ft.. 250 45 11,250
8 Shed for Kids Sq.ft.. 200 375 75,000
9 Store Room Sq.ft.. 200 150 30,000
10 Electric Motor Nos. 15,000 1 15,000
11 Water Tank (10*10Sq ft) Sq.ft.. 150 100 15000
12 Chaff cutter Ls. 25000
13 Weighing Machine Nos. 10,000 1 10000
5,40,450
II. Working Capital (for one year)
1 Fodder cultivation acre/ 20,000 1 20,000
year
2 Concentrate feeds for adult animals kg 17 3,150 53,550
3 Cost of concentrate feed for kids kg 17 1,620 27,540
4 Wages for labour One year 70,000 1 70,000
5 Insurance % 5 11,500
6 Misc, expenditure i.e. vaccine Ls. 1,000 28 28,000
medicine and veterinary aid
7 Electricity and Water supply per 2,000 12 24,000
month
8 Transport charges 20,000
2,54,590

TOTAL 7,95,040
 Project Report On Goat Farming

D. MEANS OF FINANCE

Sr. No. Particular Unit Quantity Amount in Rs.

1 Term loan % 75.00 5,96,280

2 Own contribution % 25.00 1,98,760

TOTAL 7,95,040

Subsidy entitlement @ 44 % from NABARD 3,49,818

under AC & ABC Scheme
 Project Report On Goat Farming

E. PROJECTION OF PERFORMANCE & PROFITABILITY

I. Flock Production Chart

Particular Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
No. of kidding/year 1.5 1.5 1.5 1.5 1.5 1.5 1.5
No. of kids born male 38 38 38 38 38 38 38
No. of kids born female 38 38 38 38 38 38 38
No of kids died male 20% 8 8 8 8 8 8 8
No of kids died female 20% 8 8 8 8 8 8 8
No. of male kids available for sale Kids produced in first & - 30 30 30 30 30
second year will be sold
in next year & so on
No. of female kids available for sale - - 30 30 30 30 30

II. Projected Profitability

Sr. Unit rate
Particular Unit Quantity I year II year III year IV year V year VI year VII year
No. in Rs.
I. Income
a From sale of male goats buck 9500 - - - 285000 285000 285000 285000 285000
b From sale of female goats doe 8500 - - - 255000 255000 255000 255000 255000
c Mannure tonne 5000 6 28000 28000 28000 28000 28000 28000 28000
d Interest on Subsidy @ 6% 20989 20989 20989 20989 20989 20989 0
e Subsidy 0 0 0 0 0 0 349818
TOTAL (A) 48,989 48,989 5,88,989 5,88,989 5,88,989 5,88,989 9,17,818
II. Expenditure
Concentrate feeds for Rs./kg 17 3,150 53,550 58,905 58,905 58,905 58,905 58,905 58,905
Concentrate feeds for Rs./kg 17 1,620 27,540 30,294 30,294 30,294 30,294 30,294 30,294
Fodder cultivation acre/ year 20,000 1 20,000 20,000 20,000 22,000 22,000 22,000 22,000
Unskilled workers Nos. 70,000 1 70,000 70,000 70,000 70,000 70,000 70,000 70,000
Misc, expenditure i.e. Ls. 28,000 28,000 28,000 28,000 28,000 28,000 28,000
Insurance of animals % 5 11500 11500 11500 11,500 11,500 11,500 11,500
Electricity and Water supply per month 2,000 12 24,000 24,000 24,000 24,000 24,000 24,000 24,000
Transport charges Ls. 20,000 20,000 20,000 20,000 20,000 20,000 20,000
TOTAL (B) 2,54,590 2,62,699 2,62,699 2,64,699 2,64,699 2,64,699 2,64,699
III. Net Income TOTAL (A-B) -2,05,601 -2,13,710 3,26,290 3,24,290 3,24,290 3,24,290 6,53,119
 Project Report On Goat Farming

E. Financial Analysis

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

Capital Costs 5,40,450

2,54,590 2,62,699 2,62,699 2,64,699 2,64,699 2,64,699 2,64,699
Recurring cost
7,95,040 2,62,699 2,62,699 2,64,699 2,64,699 2,64,699 2,64,699
Total Cost
48,989 48,989 5,88,989 5,88,989 5,88,989 5,88,989 9,17,818
Benefit
Depreciated value of buildings, 1,20,759
fencing, borewell etc. @ 10%
21,425
Depreciated value of equipments @ 15%
1,52,230
Closing stock value ( adults & kids)
48,989 48,989 5,88,989 5,88,989 5,88,989 5,88,989 12,12,232
Total Benefit
-7,46,051 -2,13,710 3,26,290 3,24,290 3,24,290 3,24,290 9,47,533
Net Benefit

Discounting Factor@ 15% 0.87 0.76 0.66 0.57 0.50 0.43 0.38
6,91,685 1,99,651 1,73,381 1,50,878 1,32,350 1,13,821 99,527
NPV cost at 15% DF
42,620 37,232 3,88,733 3,35,724 2,94,495 2,53,265 4,55,799
NPV benefits at 15% DF
2,46,575
NPW at 15% DF

BCR at 15% DF 1.16 :1

IRR % 22.14
 Project Report On Goat Farming

G. Term Loan Repayment

Rate of interst - % per annum : 12.00

Opening balance of term loan : 5,96,280

Total
Loan Gross
Year Principal Interest Repayme Net Surplus DSCR
Outstanding Surplus
nt

1 5,96,280 - - 71554 - - -

2 5,96,280 - 71554 - - -

3 5,96,280 3,26,290 119256 71554 190810 1,35,480 1.7

4 4,77,024 3,24,290 119256 57243 176499 1,47,791 1.8

5 3,57,768 3,24,290 119256 42932 162188 1,62,102 2.0

6 2,38,512 3,24,290 119256 28621 147877 1,76,413 2.2

7 1,19,256 6,53,119 119256 14311 133567 5,19,552 4.9

Avg DSCR 2.4