Saraswati Goat Farm and Breeding Centre

Sakhuwa, Mahendranagar

Kshireshwornath Nagarpalika -05

Background

Goat is a multi-use animal which is commonly reared for its meat (chevon). In many parts of the
world, goat is raised for the meat, milk, wool and leather. As per the data source of Department
of livestock services, Fiscal year 2073/74, there are 10,986,114 goats in Nepal that accounts for
45.3% of the national ruminant population and the population has increased by 3.52% per
annum. Similarly 65,583 metric tons of goat meat is produced which is 20% of the total meat
produced in our country which ranks second after buffalo meat. Also, it has share of 12% in
total livestock GDP.

Distribution of goat population is highest for province No.1 (2.28 million -20.8%) with lowest
for province No.6 (9.2%). However, the density of goats per unit area is found highest for
province No.2 (146 goats/km^2). In context of our province 5, distribution of goat population is
found to be 1.96 million -17.8%.

Goat is also called the Poor’s man cow. In Nepal, Goat can be raised in different parts so it is
becoming a growing enterprise and a living bank account for farmers. Goat and sheep belong to
the different species, but their management is similar. Goat meat is accepted by all the caste and
ethnic people; day by day; goat farming has become a popular business. Livestock farming
consist of one third share of total agricultural gross domestic product (GDP) in Nepal thus it
contributes a major share in agricultural system. Similarly, the amount of feed and feeder
necessary for one cow can is similar as rearing of 5-6 goats and farmers having less and easily
raise 2-4 goats. Many farmers are using indigenous breed of goats while some of the young
entrepreneurs have started to have cross hybrid of boar goat and the indigenous breed (I.e.
native breed according to the climate of that farm area).

Terai goats are found in the Terai region and inner valleys (tropical and subtropical climate) of
the country and are reared as the meat-type animals. They are heavily crossed with Indian
breeds including Jamunapari, Barbari, Ajmeri/Sirohi, and Beetal; and thus, population of pure
Terai goat is at risk from the conservation point of view. This breed constitutes 27% or less than
that of the total goat population of the country. Body color of Terai goats varies from pure white
to pure black with mixed patches of different colors. Its compact body weight is around 30 kg
with 60 cm body length, 65 cm chest girth, and 58 cm wither height. Body weight varies from
30 to 35 kg for male and 25–30 kg for female.

Jamunapari is a breed of goat originating from the Indian subcontinent. It is a dual-purpose

breed kept for both milk and meat. Jamunapari goats were mainly introduced in Nepal to
upgrade and improve body weight of local Khari and Terai goats. Adult Jamunapari goat has a
body weight of 45 kg for bucks and 38 kg for does along with wither height between 75 and 78
cm, body lengths of 75–77 cm, and heart girth of 76–79.5 cm (Table 6). Yearling weight of
these goats in research stations was about 21 kg. The average age at first kidding and kidding
interval in Jamunapari goat is 770 and 428 days, respectively.
Objectives:
-To generate income and employment opportunity.

-To make easy access of quality Goat meat to the people of this area.

-To make this farm a good breeding center through which the farmers can get improved breeds
of kids.

-To become a site of observation to the young entrepreneurs and the farmers as well as students.

Rationale of study
Goat is a multifunctional animal and plays a significant role in economy and nutrition of
landless, small and marginal farmers in country. Goat can efficiently survive in available shrubs
and trees in adverse harsh environment in low fertility lands. Also goat has religious and
ritualistic importance. They are prolific breeders and attain sexual maturity at the age of 10-12
months. Gestation period in goat is short and twinning is much commanded small body size and
docile nature, housing requirements and management problems with goats are less. Goat meat
contributes about 20.4%to the total meat production and ranks after buffalo.

The goat meat is more lean (low cholesterol) and relatively good for people who prefer low
energy diet especially in summer. It has higher level of iron, high potassium content and low
sodium content when compared to the similar serving size of beef, pork, lamb and chicken. So,
the meat is more preferable for anemic patient. It is also packed with proteins and vitamin B12,
which is prior to get healthy skin.

Despite all the religious and nutritional importance of goat and its product, Nepal seriously
lacks proper technology in rearing housing and processing, whereas on the other hand there isn’t
enough storage facility, clean slaughter houses and proper distribution center. Also, there is
inadequate scientific research on breeding, feeding, management and disease control. To meet
demand, there are high imports of live goat’s form India. According to NLTA (Nepal livestock
Traders Association), two lakhs live goats enter Nepal every year through checkpoint at
Nepalgunj, krishnagar and Bhairahawa.

There is a serious urgency of upgrade in technology to gear up the commercial production

process. Therefore, our commercial goat farm and breeding center will definitely play a positive
role towards the improvement of our lacking in goat farming sector. It will set an example for
other provinces too in the near future.

Beneficiaries
The main propose of this project is to produced milk and meat but also to start a breeding center
for goats. This farm can be a center for production of improved breeds and kids are ultimately
provided to the farmers which will be livelihood opportunity to them to create subsidiary
income and employment in lower capital. Besides, New integrated technologies on rearing,
housing and processing can be built up by this farm. This farm will be opened for farmers and
students for internship and extension visit.
Location and facilities
This farm will be established at Kshireshwornath Municipality-5 Mahendranagar (paper mills
road). Our farm is 1km west from Sakhuwa chowk.

The farm is equipped with proper road, electricity, pure drinking water and proper drainage
system with enough space for establishment of farm.

There will be 2 Jamunapari male and 40 Terai female goats in our farm. Our facilities are goat
meat and milk production plus breeding.

Risks and uncertainty of project

1. Disease outbreak: Goats are susceptible to some parasites and common goat viral diseases
and initially diagnosing them is very difficult. Viral diseases like Pest des petit Ruminant (PPR)
and Foot and Mouth disease (FMD) are common, acute, highly contagious and infectious
epidemic disease in Nepal.

2. Predator and robbery problem: Coyotes, dogs and some other wild animals are the major
predators of goats.

3. Market problem: No easy access to market information on price, volume traded, market
context of live goat/meat to farmers and traders.

Business plan:
BUSINESS NAME: Saraswati goat farm and breeding center.

EXECUTIVE SUMMARY OF FARM

Saraswati goat farm will be a registered livestock Farming business which will be located in
Kshireshwornath Municipality-5 Mahendranagar. The livestock business will be concerned with
the rearing and selling of goats, processing and packaging of goat meat as well as production
and sales of kids and other goat products.

Our business will offer its products and services to customers in province no2 as well as to the
neighboring province. Also, as our business expands, we will offer our products and services to
customers all over the country as well as to the UP of India too.

FARM DESCRIPTION
OUR PRODUCTS OFFERING

This goat farming business will be concerned with goat farming, goat meat processing as as well
as packaging in Rupandehi. As part of complimentary business to our goat farming, we will
also run a food processing plant the following are the products and services we will be offering:
  Breeding services
 Boarding services
 Dairy support services
 Sales of cotton wool
 Livestock health services
 Shearing services
 Sales of processed goat meat

VISION STATEMENT
Our vision is to become a leading farm in the livestock farming industry all over Rupandehi and
the province no. 5. Our hope is also to be among leading livestock farming brands in country
before our 10th anniversary.

MISSION STATEMENT
Our mission is to provide quality products and services to all our customers where ever they
may be. We want to make assure we sell in commercial quantities our goats processed goat’s
meat and several other goats’ byproducts to our customers in province 5 in subsequent years.

Business profile:
Farm name Sarswati goat farm and breeding centre

Business owner Suryanath Yadav , Amrit Adhikari

Address Dhanusha Mahendranagar

Contact -9809638202 , 9807697519

Business structure
In order to establish our business and to be able to achieve our business goals and mission: we
must be able to fully establish our business structure on to a well –founded business foundation.

In the course of raising the right business structures for our goat farming business we will make
sure we hire only the right and skilled employees to fill the required positions. We will make
sure hardworking, honest and ready to join hand with us to build our goat farming business in to
where we want it to be. The following positions are required to be filled:

 General Farm Manager

 Branch Supervisor
 Accountants/Administrators
 Sales and marketing officers
 Goat Farm field employees
  Receptionists

SWOT ANALYSIS

Strength:
Our strength as a livestock farming business is the fact that we have healthy relationships with
load of major players (agriculture merchants) in the livestock farming industry; both suppliers
and buyers within and outside of the area.

We have some of the latest livestock farming machines’ tools and equipments that will help us
breed goat and other livestock in commercial quantities with lesser stress. Aside from that we
can confidently boast that we have some of the most experience hand in livestock farming
industry our pay roll.

Weakness:
Weakness of this farm is its financial part because our goals are very high and advance and
there may be the shortage of budget in the long run if the proper return is not gained from our
product.

Opportunities:
The opportunities are that area available to us can’t be quantified. We know that the area there
are loads of homeowners and industries that will source for goats, goat meat and milk and also
industries that will source for the raw materials from our livestock farm both in the of area and
other parts of the Nepal.

Threat:
Some of the threats and challenges that we are likely to face when we start our own livestock
farm are global economic down turn that can impact negatively on household spending, bad
weather cum natural disaster (draught, epidemics), unfavorable government polices and the
arrival of competitors that raise same livestock near the location of our farm. There are hardly
anything that we can do as regards this threat and challenges other than to be optimistic that
things will continue to work for our good.

MARKETANALYSIS
One of the common trends in the commercial livestock farming line of business is that most
players in the industry are concentrating on only on farming a particular species of livestock or
just livestock/ goat farming. They now find it easier. Some even go ahead to include meat
processing and packaging business alongside their product offering. It helps maximizing profit
in the agriculture industry. Commercial goat farm is exploring new technology to continue goat
farming process and also meat preservation and packaging process. The fact that there is always
a ready market for commercial goat farming makes the business evergreen.

As a matter of fact one of the new trends in livestock farming industry is that with the recent
advancement in technology livestock farm can now improve the various breeds of the animals
they are breeding. It is now easier for livestock farm to comfortably import the kind of breed of
domestic animal they want to breed from many country of their choice and also advancement in
technology has made it easier to cross-breed different animal.

Our Target Market

Naturally, the target market of those who are the end consumer of livestock Farm produce and
also those who benefits from the business value chain of the agriculture industry is all
encompassing ;it is far–reaching.

Every household consumes produce from livestock Farms be it goat meat, goat milk, and the
skin (leather) used for bags, belts and shoes production. Sold to the large chunk of
manufacturing companies depends on livestock Farms for some of their raw materials. In
essence a goat Farm should be able to sell his or her Farm produce to as many people as
possible. We will ensure that we position our business to attract consumers of agriculture
produce not just in the of Area alone but also or her parts of the Nepal which is why we will be
exporting some of our Farm produce either in raw form or processed form to other countries of
the world.

Our Competitive Advantage

It is easier to find entrepreneur flocking towards an industry that is known to generate consistent
income which is why there are more commercial Farms in the Area and of course in most parts
of the Nepal.

Fixed cost for goat farming business

S.N. PARTICULARS UNIT QUANTITYAmount TOTAL COST

1. Shed construction

Roof construction No. 80 600 Rs. 48,000

Nails Kg 8 150 Rs. 1,200

Hook and bolts Set 100 50 Rs. 5,000

Stall construction No 1 2000 Rs. 2,000

Wood requirement No 1000 150 Rs. 150,000

 Labor No 5 (15 days) 1000 Rs. 75,000

2. Sub total Rs. 281,200

3. Goat purchase Unit

He goats 2 5000 Rs. 10,000

She goats 40 5000 Rs. 200,000

4. Total fixed cost Rs. 491,200

Variable costs

C Variables Un Quantity 1st year 2nd year 3rd year 4th year 5th year
it

1 Fodder and - Rs. 750 Rs. 0 0 0 0

forage 3000
plantation

2 Labor 42 Rs. Rs. Rs. Rs. Rs. 5,76,000

5,76,00 5,76,000 5,76,000 5,76,000
0

3 42 Rs. Rs. Rs. Rs. 85,600 Rs. Rs. 85,600

75600/y 75,600 85,600 85,600
r

4 Mating 42 400, 2 Rs. 0 0 0 0

cost Nrs. times 16000
200/ goat per yr

5 Insurance + 42 500/yr Rs. Rs. Rs. Rs. Rs.

2 he goat 21000
purchase. 21000 21000 21000 21000

6 Feed 42 390/ Rs. Rs. Rs. Rs. Rs. 1,96,560

13kg/mont 1,96,56 1,96,560 1,96,560 1,96,560
h Month 0

Total Rs. Rs. Rs. Rs. Rs.

8,88,16 8,79,16 8,79,16 8,79,1 8,79,160
0 0 0 60

Variable cost during 5 year = Rs. 44, 04,800

 Total cost incurred = Total fixed cost + Total variable cost

= 44, 04, 800 + 4, 91, 200

= Rs. 48, 96, 000

Total cost incurred in 1st year of production = Rs. 13, 79, 360

Calculation of income
S.N. Year 1 2 3 4 5
1 Meat 1200 kg 1800 kg 2000 kg 2200 kg 2400 kg
production
2 Kids 40 units 60 80 80 100
production
3 Manure 100 kg 100 kg 150 kg 150 kg 200 kg
Price/kg Rs. 850
meat
Kids price Rs. 5000
for 2
months
old
Manure/kg Rs. 100
Income- Rs. Rs. Rs. Rs. Rs.
meat 10,20,000 15,30,000 17,00,000 18,70,000 20,40,000
Kids Rs. Rs. Rs. Rs. Rs.
2,00,000 3,00,000 4,00,000 4,00,000 5,00,000
Manure Rs. Rs. Rs. Rs. Rs.
10,000 10,000 10,000 10,000 10,000
Total Rs. Rs. Rs. Rs. Rs.
income 12,30,000 18,40,000 21,15,000 22,85,000 22,55,000

Total income during the period of 5 year = Rs. 97, 25, 000

Net profit of the Lumbini Goat farm and breeding center = Total income- Expenditure (cost
incurred) = 97, 25, 000 - 48, 96, 000

= NPR. 48, 29, 000/-

Conclusion
From the above calculation of income and cost it can be seen that this business is profitable and
can be taken ahead in the field. We have studied and analyze the ground level possibilities and
condition hence we can conclude that this business is fruitful and profitable.