1 Dr. Sachin Tekade

ECONOMICS OF GOAT FARMING

UNDER STALLFED SYSTEM

DR. SACHIN TEKADE ASSISTANT DIRECTOR

MAHARASHTRA SHEEP AND GOAT

DEVELOPMENT CORPORATION PUNE

PROJECT OF GOAT UNIT

100 DOES + 4 BUCKS

2 Dr. Sachin Tekade

ECONOMICS OF GOAT UNIT

100 DOES + 8 BUCKS

1. BREEDS OF GOAT: Osmanabadi Bucks + Osmanabadi Does Sangamneri Bucks + Sangamaneri Does Osmanabadi / Sangamneri Bucks + Local breed Does

2. AGE : Females: 18 months to 24 months Males: 2 and 2.5 years.

3. ECONOMICAL BREEDING LIFE:

Economical breeding life of Goat is 7 years both in male and females. But buck should be changed after every three yearsto avoid inbreeding in the flock.

4. KIDDING: Three kidding in two years Estimated kidding percentage is 150 % per year as mention below

S N Particulars

Kidding % in the flock. Expected births

1 Twins

50% 100

2 Triplets

2% 6

3 Singles

48% 48

Total

100% 154 i. e.150

A kid per doe per year kids in the flock of 100 does

5.MALE AND FEMALE RATIO:

Male and female ratio is 1:1 i.e. 50% males and females 50%.

1.5 kidding X 1.5 Kid

= 2.25 kids

100 does X 2.25 kids

= 225 Kids

3 Dr. Sachin Tekade

6. MORTALITY: Adult: 5% Kids: 10%

7. CULLING:

Average productive life of female is considered to be 7 years. All male kids to be sold after winning at the age of about 6 to 7 months. Out of female kids surplus kids available after retaining the number of required for replacement would

be sold at the age of 6 months. Generally females having breeding deficiencies, physical deformities, along with health problems etc. to

be regularly culled, are assumed to be 15% per annum. Approximately 15 % runt kids will be disposed off per annum.

8. SURPLUS STOCK AVAILABLE FOR SALE:

The stock available for sale per year in a unit will be as per enclosed flock projection chart.

9.LAND REQUIREMENT FOR FODDER CULTIVATION:

Each goat requires: 2 gunthas land (having perennial irrigation facilities)

Total land required: 208 gunthas i.e. 5.00 acres.

10.MILK YIELD:

The average milk production of Osmanabadi goat is 180 lit per lactation of 210 days. Average daily milk yield: 0.227 kg per goat.

11.MANURE:

Manure will available for sale: 31.42 MT X Rs.2,000/- per MT Receipt Generate: Rs. 62,840/-

12.SALE OF SKIN OF DEAD ANIMALS

It is assumed that mortalities in adult is 5 % & in kids 10 %. The skin available from dead animals will be sale locally at the rate of Rs.100/- per skin of adult & Rs.50/- per skin of young ones.

210 days – 90 days (up to weaning) = 120 days.

Milk available for sale = 120 days X 227 ml X 100 goats = 2724 Lit.

Manure Available: (as per 700 gm per day from adult and 350 gm from kids)

Adult: 104 Nos X 0.700 kg X 365 days = 26.57 MT – 20 % moisture = 21.25 MT

Kids (deducted 10 % mortality): 202 Nos X 0.350 kg X 180 days = 12.72 MT – 20 % moisture =10.17 MT

4 Dr. Sachin Tekade

13.FEED AND FODDER REQUIREMENT:

Does: 100

Bucks: 4

Kids: 225

Requirement as per 4% Dry Matter: (per day)

GREEN FODDER DRY FODDER CONCENTRATE

Does:

Bucks:

Kids:

Annual Requirement: (In MT)

Total Cost: (For Year)

4.00 kg 0.500 kg 0.250 kg

4.00 kg

2.00 kg

0.500 kg

0.200 kg

0.300 kg

0.100 kg

Cost: Green Fodder: Rs. 1,000/- per MT (Production Cost) Dry Fodder: Rs. 1,000/- per MT (Production Cost) Concentrate Feed: Rs. 15,000/- per MT (Purchase Cost)

Green Fodder Dry Fodder Concentrate

Does 100 x 4 x 365

= 146 MT

Kids 225 x 2 x 180 days

= 81 MT

Bucks 4 x 4 x 365 = 5.8 MT

Kids 225 x 0.200 x 120 days

= 5.4 MT

Bucks 4 x 0.500 x 365

= 0.73 MT

Does 100 x 0.500 x 365

= 18.25 MT

Kids 225 x 0.100 x 90 days

= 2.02 MT

Does 100 x 0.250 x 120

= 3 MT

Bucks 4 x 0.300 x 365

= 0.43 MT

GREEN 232.8 MT x Rs. 1000/-

Rs. 2, 32,800/-

DRY 24.38 MT x Rs. 1000/-

Rs. 24,380/-

CONCENTRATE 5.45 MT x Rs. 15000/-

Rs. 81,750/-

5 Dr. Sachin Tekade

14. CONSTRUCTION OF SHED:

Space Requirement

Doe: 10.00 Sq Ft (Covered Space) + 20.00 Sq Ft (Open Space)

Buck: 20.00 Sq Ft (Covered Space) + 40.00 Sq Ft (Open Space)

Kid: 5.00 Sq Ft (Covered Space) + 10.00 Sq Ft (Open Space)

Total space is shown as under

Type Numbers of Animal Covered Floor Space Requirement (Sq Ft)

Total area required (Sq Ft)

Buck Does Kids

4 100 225

20 10 5

80 1000 1125

Total Covered Space Required: 2200 Sq. Ft.

15. PURCHASE COST OF LIVESTOCK:

16. INSURANCE COST OF LIVESTOCK:

Construction Cost: Rs. 200/- per Sq Ft

Total Covered Area: 2200 Sq Ft

Total Construction Cost: Rs.200/- x 2200 Sq Ft

Rs. 4, 40,000/-

Doe (Female): Rs. 6,000/- per animal

Buck (Male): Rs. 7,000/- per animal

Cost:

Doe: Rs. 6000/- x 100 = Rs. 6, 00,000/-

Buck: Rs. 7000/- x 4 = Rs. 28,000/-

Rs.6, 28,000/-

Premium: 4 % on cost of livestock Rs. 25,120/- Service Tax: 14 % on premium amount Rs. 3,516/-

Rs.28, 636/-

6 Dr. Sachin Tekade

17. EXPENDITURE ON MEDICATION: It includes cost of Dewormer (anthelmentics), De-ticking, Screening, Preventive Vaccination

and General Medication etc.

18. LABOR EXPENDITURE:

Total two labors will sufficient for daily management work of goat and cultivation of fodder. Rs. 7,184 /- per month as per cost norm of Maharashtra Minimum Wages.

Rs. 50/- per adult animal x 100 animals = Rs. 5,000/-

Rs. 25/- per kid x 225 kids = Rs. 5, 625/-

Rs. 10,625/-

Rs. 7,184/- per month per labor

Rs. 7,184/- x 2 labor x 12 month = Rs. 1, 72,416/-

Rs. 1, 72,416/-

7 Dr. Sachin Tekade

19. SALE PRICE: (Source of Income)

Item Sale price (In Rs )

Sale of Buckling for mutton (Male Kids up to age of 30 kg.) 6500/- per animal

Sale of Doeling for mutton (Female Kids up to age of 30 kg) 6000/- per animal

Sale of culled Buck (unproductive male ) 4000/- per animal

Sale of Culled Doe (unproductive female) 3500/- per animal

Sale of Culled buckling (Unproductive male kids) 3000/- per animal

Sale of Culled doeling (Unproductive female kids) 2500/- per animal

Insurance Claims of dead animals

a) Buck (80% on cost)

b) Doe (80% on cost)

5600/- per animal

4800/- per animal

Milk 20/- per liter

Manure 2000/- per MT

Sale of skin of dead animals

a) Adult

b) Kids

100/- per animal

50/- per animal

Fact considered while assuming sale price of livestock

Age of male and female: 8 months

Weight of male and female: 30 kg

Daily Weight Gain: 120 gm per day

Carcass yield: 50 %

Mutton Rate: Rs. 400/- per kg

Additional increase on sale price of male animals: 10 % (Approx.)

8 Dr. Sachin Tekade

ECONOMICS

100 + 4 GOAT UNIT UNDR STALLFED SYSTEM

Investment Items Quantity Cost Norm Total Cost

Capital

Investment

Livestock Purchase Male: 04

Female: 100

Rs. 7,000/-

Rs. 6,000/-

Rs. 6,28,000/-

Construction of

Shed

Construction

Area: 2200 Sq Ft

Rs. 200/- Rs. 4,40,000/-

Capital Investment: Rs. 10,68,000/-

Working

Capital

Green Fodder 232.8 MT Rs. 1000/- Rs. 2,32,800/-

Dry Fodder 24.38 MT Rs. 1000/- Rs. 24,380/-

Concentrate Feed 5.45 MT Rs. 15000/- Rs. 81,750/-

Insurance of

Livestock

Livestock

Purchase cost

Rs. 6,28,000/-

4% on cost of livestock +

14 % on premium amount

Rs. 28,636/-

Medication

Expenditure

Adult: 104

Kid: 225

Rs. 50/- per adult animal

Rs. 25/- per kid

Rs. 10,625/-

Labor 2 Rs. 7,184/- per month per labor Rs.1,72,416/-

Working Capital : Rs. 5,50,607/-

+ =

Total Project Cost

CAPITAL INVESTMENT

Rs. 10, 68,000/-

WORKING CAPITAL

Rs. 5, 50,607/- Rs. 16, 18,607/-

9 Dr. Sachin Tekade

FLOCK PROJECTION CHART :

Particulars Year

Ist IInd IIIrd IVth Vth VIth

Opening Balance

a) Bucks

b) Does

c) Bucking

d) Doeling

-

-

-

-

4

80+20

-

-

4

80+20

-

-

4

80+20

-

-

4

80+20

-

-

4

80+20

-

-

Purchases

a) Bucks

b) Does

4

100

-

-

-

-

4

-

-

-

-

-

Births

a) Bucklings

b) Doelings

113

112

113

112

113

112

113

112

113

112

113

112

Mortalities

a) Bucks 5%

b) Does 5%

c) Buckings10%

d) Doelings10%

-

5

11

11

-

5

11

11

-

5

11

11

-

5

11

11

-

5

11

11

-

5

11

11

Culling

a) Bucks 15%

b) Does 15%

c) Buckings15%

d) Doelings15%

-

15

17

17

-

15

17

17

-

15

17

17

4

15

17

17

-

15

17

17

-

15

17

17

Sale for Mutton

a) Bucklings

b) Doelings

85

64

85

64

85

64

85

64

85

64

85

64

Closing Balance

a) Bucks

b) Does

c) Buckings

d) Doelings

4

80

-

20

4

80

-

20

4

80

-

20

4

80

-

20

4

80

-

20

4

80

-

20

ANNUAL AVERAGES: Mortalities Sale for Culling Sale of Mutton

Bucks - - - Does 5 15 -

Buckings 11 17 85 Doelings 11 17 64

10 Dr. Sachin Tekade

REQUIREMENT OF FUNDS:

Particulars Contribution Percentage Amount ( In Rs.)

Total Project cost - Rs.16,18,607/-

Own Contribution 10% Rs. 1,61,860/-

Institutional finance 90% Rs. 14,56,747/-

REPAYMENT OF LOAN & INTEREST:

Bank Loan Rs. 14,56,747/-

Interest per Annum 12 %

Repayment of Loan. 1st year will consider grace period & repayment will be made in five equal

installments.

Total years of repayment : 6

REPAYMENT OF LOAN AMOUNT:

Year Annual Installment Annual Interest Total (In. Rs.) Balance Amount

(In Rs.)

1st -- 174810.00 174810.00 1456747.00

2nd 291349.00 174810.00 466159.00 1165398.00

3rd 291349.00 139848.00 431197.00 874049.00

4th 291349.00 104886.00 396235.00 582699.00

5th 291350.00 69924.00 361274.00 291349.00

6th 291349.00 34962.00 326312.00 --

Total 1456747.00 699240.00 2155987.00 --

Average Annual Installment of Loan (Principal and interest amount):

Rs. 2155987 /- 6 years

= Rs. 3, 59,331/-

11 Dr. Sachin Tekade

ANNUAL RECEIPTS:

Details Sale Price Expected Sale Amount (In Rs)

Sale of Buckling for Mutton

(Male Kids up to age of 30 kg.)

6500/- per animal 85 552500.00

Sale of Doeling for Mutton

(Female Kids up to age of 30 kg)

6000/- per animal 64 384000.00

Sale of Culled Buck (Unproductive male ) 4000/- per animal - -

Sale of Culled Doe (Unproductive female) 3500/- per animal 15 52500.00

Sale of Culled Buckling (Unproductive male kids) 3000/- per animal 17 51000.00

Sale of Culled Doeling

(Unproductive female kids)

2500/- per animal 17 42500.00

Insurance Claims of Dead Animals

Buck (80% on cost)

Doe (80% on cost)

5600/- per animal

4800/- per animal

-

5

24000.00

Milk 20/- per liter 2724 54480.00

Manure 2000/- per MT 31.42 62840.00

Sale of Skin of Dead Animals

Adult

Kids

100/- per animal

50/- per animal

5

22

500.00

1100.00

Total (In Rs.) 1225420.00

AVERAGE PROFIT

Particulars Amount (In Rs.)

Total Annual Receipts 1225420.00

Total Annual Working Capital 550607.00

Gross Profit 674813.00

Repayment of Annual installment of principle amount & interest 359331 .00

Net Profit 315482.00

Net Profit per goat (on 104 Goats) 3033.00 i.e. 3000.00

Profit percentage on total project cost Rs. 1618607/- 19.48 %

Profit per month 26290.00

Thank You