Project Report On 'Goat Farming' PROJECT REPORT ON GOAT FARMING

C O N T E N T S CHAPTER NO. PARTICULARS I. HIGHLIGHTS OF THE PROJECT REPORT A. About the promoter B. Project Profile II. PROJECT DESCRIPTION III. MARKET POTENTIAL IV. SWOT ANALYSIS V. ECONOMICS OF THE PROJECT A. Basis & Presumptions B. Total Cost of Project Capital Cost Working Capital C. Means of Finance D. Projected Profitability E. Financial Analysis F. Term Loan Repayment Project Report On 'Goat Farming' CHAPTER - I HIGHLIGHTS OF THE PROJECT REPORT A. ABOUT THE PROMOTER PARTICULARS ABOUT THE PROMOTER

  1. Name : Anand Sreekumar
  2. Address(Residence) : 3a , No 77 , 3rd Main road, Kasturbha Nagar , Adyar , Chennai 600020
  3. Contact Number : 9176002392
  4. Date of Birth : 06/21/1972
  5. Educational Qualification : IIM grad
  6. Project Location(Addr.) : Tamilnadu
  7. Constitution : Proprietorship
  8. Experience : Fairly Decent Project Report On 'Goat Farming' B. PROJECT PROFILE (FINANCIAL) PARAMETERS VALUES
  9. Breed Tellissery
  10. Unit Size Doe 50 Buck 2
  11. Product Kids, Mannure etc
  12. Cost of the project 3,712,787
  13. Bank Loan 2,970,230
  14. Margin Money 742,557
  15. Financial Indicators BCR at 15% DF 0.49:1 NPW 15% DF(Rs.) -2,247,989 IRR % -62 DSCR 0.1
  16. Interest Rate(% per annum) 13.5 9.Repayment 6 years including moratorium for the 1st year Project Report On 'Goat 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 'Goat 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 'Goat 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. 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. Project Report On 'Goat Farming' CHAPTER - VI ECONOMICS OF THE PROJECT A. BASIS & PRESUMPTIONS PARTICULARS UNIT QUANTITY I. Techno-economic parameters Breed of Goat Tellissery System of rearing Semi Intensive No. of Does 50 No. of Bucks 2 Age of Maturity Months 10 to 12 Kidding Interval Months 8 No. of kidding per year 1.5 Kidding Percentage % 80 Average litter Size 2 Sex Ratio 1.1 Mortality(%)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 10 Space requrement per head for kid /Sq.Ft 4 Cost of construction of shed for buck,doe & kid Rs./ Sq.ft 85 Cost of one doe (Female) Rs. 7,000 Cost of one buck (Male) Rs. 63,000 No. of unskilled labour RS. 1 Cost of one semiskilled labour/annum /Rs. 54,000 Cost of Chaff of 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. 11 Misc, Expenditure i.e. Vaccine medicine and Veterenery aid Rs. 100 Electricity and Water supply per animal per year Rs. 50 Rate of interest for bank loan % 13.5 Own contribution in project cost % 20 III. Income norms Sale price of Buck/(11 month) Rs./ 3,500 Sale price of Doe/(11 month) Rs. 3,000 Project Report On 'Goat Farming' B. TOTAL COST OF PROJECT PARTICULARS UNIT UNIT RATE Rs. QUANTITY AMOUNT Rs. I.Capital Cost 1.Land Own 2.Site development Ls. 25,000 3.Cost of Does Nos. 63,000 50 3,150,000 4.Cost of Bucks Nos. 7,000 2 14,000 5.Shed of Does Sq.ft. 85 500 42,500 6.Shed of Bucks Sq.Ft. 85 30 2,550 7.Shed for Kids Sq.ft. 85 500 42,500 8.Equipment for feeding-ghemale & other Rs./animal 100 52 5,200 9.Chaff cutter Nos. 1 10,000 10,000 10.Rope,chains Ls. 5,000 11.Water storage and distribution Ls. 10,000 12.Contengencies % 5 165,083 TOTAL-A 3,466,733 II.Working Capital(Ist Year requirement) 1.Fodder cultivation @5000/acre/season Kg. 5,000 2 10,000 2.Concentrate Feeds for two months Kg. 11 8,580 3.Cost of concentrate feed for kids@ Rs.4.50 kg month/kid for one months Kg. 11 2,475 4.Wages of labour one year 54,000 1 54,000 5.Insurance % 5 158,200 6.Misc expenditure i.e.vaccine, medicine /Animal/year 100 52 5,200 7.Electricity and Water supply /Animal/year 50 52 2,600 8.Transport charges Ls. 5,000 TOTAL-B 246,055 TOTAL COST OF PROJECT Rs. TOTAL(A+B) 3,712,787 Project Report On 'Goat Farming' C. MEANS OF FINANCE PARTICULARS UNIT UNIT RATE AMOUNT Rs. Term loan % 80 2,970,230 Own Contribution % 20 742,557 TOTAL 3,712,787 Project Report On 'Goat Farming' D. PROJECTED PERFORMANCE & PROFITABILITY I. FLOCK PRODUCTION CHART PARTICULARS IYEAR IIYEAR IIIYEAR IVYEAR VYEAR VIYEAR No. of kidding/year 1.5 1.5 1.5 1.5 1.5 1.5 No. of kids born male 75 75 75 75 75 75 No. of kids born female 75 75 75 75 75 75 No. of kids died male 20% 15 15 15 15 15 15 No. of kids died female 20% 15 15 15 15 15 15 No. of male kids available for sale * 60 60 60 60 60
  • Kids produced in first year will be sold in second year & so on. No. of female kids available for sale - 60 60 60 60 60 Project Report On 'Goat Farming' II. PROJECTED PROFITABILITY PARTICULARS UNIT UNIT RATE QUANTIT Y I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR Income From sale of male goats per buck 63,000 210,000 210,000 210,000 210,000 210,000 From sale of female goats per doe 3,000 180,000 180,000 180,000 180,000 180,000 Mannure tonne 5,000 10 50,000 50,000 50,000 50,000 50,000 50,000 TOTAL 50,000 440,000 440,000 440,000 440,000 440,000 Expenditure Concentrate feeds Rs/Kg 11 104,940 76,230 76,230 76,230 76,230 76,230 Concentrate feeds for kids Rs/Kg 11 39,204 43,124 47,437 52,181 57,399 8,053 Fodder cultivation per sq.m. 5,000 1 5,000 5,000 5,000 5,000 5,000 5,000 Unskilled workers Nos. 54,000 1 54,000 59,400 59,400 59,400 59,400 59,400 Misc expenditure i.e vaccine,medicine per animal 100 17,000 17,000 17,000 17,000 17,000 17,000 Insurance % 5 158,200 158,200 158,200 158,200 158,200 158,200 Electricity and Water supply animal/y ear 50 2,600 2,860 3,146 3,461 3,807 4,187 Transport Charges Ls 5,000 5,500 6,050 6,655 7,321 8,053 TOTAL 385,944 367,314 372,463 378,127 384,357 391,208 Net Income -335,944 72,686 67,537 61,873 55,643 48,792 Project Report On 'Goat Farming' E. FINANCIAL ANALYSIS PARTICULAR I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR TOTAL Capital Costs 3,466,733 Recurring Costs 385,944 367,314 367,314 367,314 367,314 367,314 TOTAL COST 3,852,676 367,314 367,314 367,314 367,314 367,314 Benefit 50,000 440,000 440,000 440,000 440,000 440,000 Depreciated Value of Building, 51,261 Fencing, borewell etc 10% Depreciated Value of Machinery@15% 6,470 Closing stock value (adult & kids) 1,914,585 TOTAL BENEFIT 50,000 440,000 440,000 440,000 440,000 2,412,316 NET BENEFIT -3,802,676 72,686 72,686 72,686 72,686 2,021,108 Discounting Factor@15% 0.87 0.76 0.66 0.57 0.5 0.43 NPV Cost at 15% DF 3,351,828 279,159 242,427 209,369 183,657 157,945 4,424,385 NPV Benefits at 15% DF 43,500 334,400 290,400 250,800 220,000 1,037,296 2,176,396 NPW at 15% DF -2,247,989 BCR at 15% DF 0.49:1 IRR% -62.04 Project Report On 'Goat Farming' F. TERM LOAN REPAYMENT Rate of interst - % per annum : 13.5 Opening balance of term loan : 2,970,230 Year Loan Outstanding Gross Surplus Principal Interest Total Repayment Net Surplus DSCR 1 2,970,230 -335,944 - 400,981 - - 2 2,970,230 72,686 594,046 400,981 995,027 -922,341 0.1 3 2,376,184 67,537 594,046 320,785 914,831 -847,294 0.1 4 1,782,138 61,873 594,046 240,589 834,635 -772,762 0.1 5 1,188,092 55,643 594,046 160,392 754,438 -698,795 0.1 6 594,046 48,792 594,046 80,196 674,242 -625,450 0.1 Average DSCR 0.1
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