Prashiddha Bakhra Palan Firm, Thali Kathmandu

Proposal for Goat Farming

How to Sustain Goat Farming

Agriculture in its entirety doesnt focus only on the growth and sale of farm crops. Animals are also reared,
and this sector of agriculture is referred to as animal husbandry. This proposal is going to focus on how to
start, run and grow a successful goat farming business.

In almost every street except the highly regulated residential areas of Kathmandu, Nepal, theres always at
least a goat roaming about. People see these animals everyday and wonder why their owners let them move
about recklessly. Though their numbers may be small, these animals serve as a means of lively hood to the
people rearing them.

Just as poultry farming, fish farming and a host of other agribusinesses turn in high revenues when executed at
the right scale, goat farming doesnt just also generate a substantial income for investors, but is also a large
business opportunity, especially for people who depend agriculture for livelihood.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu

What Is Goat Farming About?

Goat farming is the commercial rearing of various breeds of goats (or a single goat breed) in a confined
environment or an expanse of land. It involves raising goats for various purposes like; dairy production, meat,
fiber, and multiple other purposes.

Business Opportunities in Goat Farming In Nepal

1). Goat Meat Production:
In many countries, billions of people consume goat meat. This extremely high demand has got supermarkets
and abattoirs (slaughterhouse) in Nepal, and many others stocking goat meat for sale on their shelves.

The abundance of goats in Nepal is so high that the country hasnt just become self-sustain of live goats and
goat products worldwide, but has also created a high business opportunity for goat farmers in the country.
Despite the extreme number of goats and goat products produced yearly, the demand for goat meat remains
insatiable.

In Nepal, the level of goat meat consumption is so extreme that many workers look forward to their closing
hours, so they can rush off to a bar for a goat meat with a drink. This demand has made the goat meat business
flourish in the country.

People eat goat meat at home, work, restaurants, parties, and in many other places. When theyre asked for an
option of meat, many choose goat meat ahead of chicken meat.

The Nepalese Dwarf goat is one of the most common goat breeds raised for household consumption in Nepal.
Many homes in the south-south and south-eastern part of the country rear them both for their personal family
consumption and for sale at local markets.

With Nepals population sitting at over 30 million and over 2 million people consuming goat meat every day,
goat farming continues to be an extremely valuable business opportunity for new and existing farmers to
venture into.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu

2). Dairy Production:

Dairy products like yoghurt, milk, cheese, butter, and more, can be processed from the milk gotten from dairy
goats. This locally unpopular business opportunity in goat farming generates high revenue for many goat
farmers around the world.

In many countries, goat milk is wildly produced for household consumption, but in Nepal, hardly any home
consumes goat milk, and so the milks commercial value is extremely low. Irrespective of this, goat milk is
easy to digest than cow milk because of small fat globules and is naturally homogenized. It also helps
in improving an individuals appetite and digestive efficiency.

While dairy production from farm goats milk may not be a major buzz in Nepal, in several other countries
around the world, dairy goats are used immensely to fuel their dairy needs.

Benefits of Goat Farming

1. Its easier to raise goats than to rear chickens.

2. A good source of employment at the right scale.

3. A great source of food.

4. The startup capital can be modest.

5. Required labour is low.

6. Good source of manure.

7. Goat farming can be practiced in most weathers.

8. All goat breeds can share the same environment and feed with cattle.

9. Goats can serve as a major export product.

10. Great source of protein!

 Prashiddha Bakhra Palan Firm, Thali Kathmandu
The Types of Goat Breeds
1). Nepalese Dwarf(v/L) Goat:

These are the most common goats in Nepal, and are used for several purposes. Ideally, the Nepalese Dwarf
Goat is best used for dairy purposes, but people in Nepal prefer to use them to prepare meals ranging from
meat curries to soups.

Irrespective of their small sizes, the Nepalese Dwarf Goats can produce 3-4 pounds of milk per day. They are
the best dairy goats and contain 6.1% butterfat. Milking them is usually very difficult, but they can be raised
all-year round.

Although the Nepalese Dwarf Goats are the best goats for milk production, their maintenance and up-keep cost
can skyrocket sometimes.

2). Nubian Goats:

 Prashiddha Bakhra Palan Firm, Thali Kathmandu
These goats are big, graceful, and also known as anglo-nubian. They are always said to be proud of their body
structure, because of their Roman nose and long pendulum-like ears.

The Nubian goats are a cross breed of Indian and African bucks, and were raised in England. Their milk
contains about 4.6% butterfat and so are not considered as heavy producers.

They breed seasonally and can be raised all year round.

3). Lamancha Goats:

These goats are usually found in the United States, but are of Spanish origin, are friendly, sturdy, and healthy
goats. They provide rich dairy produce because they have the best dairy temperament.

The lamancha goats are medium sized, and have small tiny ears that are either gopher ears (sweet rolls) or elf
ears (hooked ears).
 Prashiddha Bakhra Palan Firm, Thali Kathmandu

4). Alpine Goats:

These goats are also known as the French Alpines because they first originated in the Alps. They are one of
the most common goats that can be found in the United States. They adapt to any environment easily, because
of their medium to large sizes. Their physical attributes makes raising them trouble-free.

The Alpine goats are one of the best used for dairy farming, as their milk contains approximately 3.5% of
butterfat. They usually come in different colours and patterns, but a little disadvantage of rearing these goats is
that they are seasonal breeders.

5). Oberhasli Goat:

These medium-sized built goats are also known as the swiss alpine. They are bay in colour with a lot of
black spotting all around their body. The downside of these goats is they cannot be raised all year round and
their milk contains 3.6% butterfat.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
6). Boer Goat:

The boer goat is a unique breed of goat with a long hanging ear, roman nose, and are majorly reared in South
Africa. They have backward curved horns, a white body and coloured head. They are also strong, vigorous,
and have a gentle build. The downside of this goat breed is they only breed in September and towards the end
of January.

What And How Do Goats Feed?

Goats pay very close attention to the kind of food they eat. They focus on the accuracy and details of their
meals. Because of their mobile upper lips and very prehensile tongues, they are easily able to browse on very
short grass, and to feed on foliage not usually eaten by other domestic livestock. Goats have very good feeding
habits. They can feed on a wide variety of animal food, but would refuse any feed that has been soiled by them
or by any other animal.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
How to Setup a Goat Farm

1). Acquire A Large Pasture:

Getting a good pasture to rear your goats is important to the overall success of your goat farm. Its important
the landmass used for your goat farming business is not just in a remote area not too far from a city, but is also
large enough to accommodate your grazing needs. Here are a few points to take note of when determining the
kind of pasture to use for your goat farm:

Select a pasture not too far away from a city.

The land mass must be large enough (maybe 50 to 100 acres, depending on the number of goats you
want to rear) for your goats to graze freely.

Make sure veterinary services can be easily accessed close to your farm.

There must be an adequate and efficient source of both clean and fresh water close to the farm.

There should be a market close to your farm for easy purchase of any farm tool and goat needs.

A good road network and transportation service must be available within a short distance from your
goat farm.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
2). Fence The environment:

Construct a fence around the pasture to keep the goats inside. The fence should usually be a short perimeter
fence coated with barbwires. This will ensure that the goats cannot just wander off without control. The fence
can also ward off dangerous animals like wolves, foxes, and coyotes (one of the most common predator in the
Nepal). You can also purchase guard dogs to ward off wild animals from preying on the goats.

If the goats are always fond of trying to break through the fence, electric fences could then be used. A
shocking experience from this fence would keep almost all the goats away from it for good. Another strategy is
to create play areas for the goats to mostly hang around. Since goats like climbing structures and more,
creating a play zone will keep them preoccupied and far away from damaging farm products or structures.

3). Build Goat Barns:

 Prashiddha Bakhra Palan Firm, Thali Kathmandu
You have to build an adequate barn for the goats to stay in when its dark or when their graze time is over.
Goats also need to stay under shelter when the weather is cold, rainy or generally unfavorable. When the
weather is in a perfect condition, goats prefer to be outside grazing and climbing various objects.

Its important that the barns built are segmented for various groups of goats. Since they like their privacy, the
separation in the barn must be wide enough to accommodate each number of goats put into it. In the case of
owning thousands of goats, multiple separate goat barns may be required.

Place guard dogs to protect each barn containing the goats from predators, and also know that goats love to
chew on something, preferably grass, while they are at rest. So its important you put in some for them.

4). Acquire the Right Goat Breeds:

Deciding on the right type of goat breeds to rear is highly dependent on what is available and is highly
demanded in your country. While there are various types of goat breeds ranging from the Nepalese Dwarf
goats to nubian goats, lamancha goats, alpine goats, oberhasli goats, boer goats, and a lot more, picking the
right goat breed to suit your needs is very important.

You can choose to either rear goats for dairy production, meat, fiber, or many other purposes. After making a
decision, purchase healthy kids (baby goats) that are in good shape and have no signs of diseases. Make sure
they undergo proper vaccination before they start grazing, to improve their chances of longevity.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
5). Keep A Regular Appointment with The Veterinary Doctor:

Never skip an appointment with the veterinary doctor. Staying up to date with constant check-ups and
vaccination from the doctor will increase the lifespan of your goats, thereby making their mortality rate very
low.

If the required veterinary service you require for your goat farm is far away, make sure you stock enough
vaccines and medications on your farm to cater for your goats.

A Short Feasibility Study on Goat Farming

Since an average goat weighs 45KG, and the cost of a KG is about Rs.550, then an average goat could cost a
minimum of Rs.24750. If your farm rears, grows, and sells 500 goats in a year, that would mean a minimum of
Rs.1,23,75,000 in revenue generated for the year. Separating the cost of acquiring and breeding the goats as
production costs, you could be left with almost half the value of Rs.61,87,500.

Its important you know that it takes 2 to 3 years for an average goat to reach full maturity. So for your goat
farming business to mature and start generating any real returns, you would have to wait a long while.

Selling 500 goats in a year is a big win for any small scale farmer. But with startup capital constraints, starting
with a target of 500 sales by the 3rd year of full maturity is a good boost for any new farmer. At a very large
scale, 2,000 or more goats could be sold in a year.
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
How to Sell Your Farm Goats
Selling your farm goats, goat milk, meat, and more, can be slightly different. Its important to identify hotspots
where they use goat meats a lot; like pepper soup joints, abattoirs, and more, to market your goats to them.
Claiming some of these prospects as customers, may cost you a little more, like lowering your prices and
offering them better incentives and bonuses than other goat farmers would offer. When you make your
customers feel great about partnering with you, theyll never stop making you money.

Conclusion
While there are many other animal husbandry farming sectors like grasscutter farming, cattle rearing, and
more, goat farming is highly lucrative, because of its high demand and attractive value. As a goat farmer
selling hundreds or even thousands of goats yearly, you could overtime build an agribusiness conglomerate
starting with just these animals.

Proposal of Rs.2500k for Prashiddha Bakhra Palan Firm

 Prashiddha Bakhra Palan Firm, Thali Kathmandu
Prashiddha Bakhra Palan Firm is located at Thali, at the outskirt of Kathmandu Valley. Mr. Pradip Shimkhada
is the sole proprietor of the firm. The firm is registered under Cottage and Small Scale Industry as on
=========. The firm is running well since its inception and is operating as per its registration and paying
their taxes regularly.

Current capacity of the firm

The current capacity of the firm is of 100 goats. The firm has built-in sheds to accommodate 100goats.
The firm is currently rearing about 30 goats only (running below its capacity).
Current Breed of being reared:

The current breed of goat being reared in

the firm is the Nepalese Dwarf (v/L).

Prashiddha Bakhra Palan Firm, Thali Kathmandu
Prashiddha Bakhra Palan Firm, Thali Kathmandu
Prashiddha Bakhra Palan Firm, Thali Kathmandu
Prashiddha Bakhra Palan Firm, Thali Kathmandu
 Prashiddha Bakhra Palan Firm, Thali Kathmandu

Future Plan of the Firm

The future of the firm is to run in full capacity and sell 500 goats in a year. The firm is planning to rear Bore
Breed of goat.

Cost Estimation and Revenue Model of the firm

Cost of Stock
No. of Goat Wt. of 1 No. of Bucks Wt. of 1 Buck Total Price Price of
Goat Weight per KG Stock
100 25 5 35 2675 350+800 1015000
Note: - The male buck of Bore Breed Cost around Rs.800 per KG, and other goat cost around
Rs.350 per KG.

Cost of Feed
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
Food No of Wt. to achieve Total Feed Price of Total Feed Total
consume by Kids Consume per lot Feed per price of Transport Cost of
kids per Born Kg feed Cost Feed
KG. Wt.
Gain
4 90 16 5760 250 1440000 3600 1443600

Miscellaneous Cost
Space Cost of Total Shed Medicine Total
Required shed per cost +Vaccination/Per Medicine
in Sq. Feet sq. feet Annum and
Vaccination
5131 1500000 1500000 100000 100000
Labour 3 Labour Total Cost of green
/month / 1 year Labour
Cost
12000 432000 432000 15000

Cost Segregation for the proposed Project of 100 goats

Rearing
Fixed Cost Amount Variable Amount
Cost
Total Shed 1500000 Total Cost 1443600
cost of Feed
Price of 1015000 Total 100000
Stock Medicine
and
Vaccination
Total Fixed 2515000 Total 432000
Cost Labour
Cost
Cost of 15000
green
Total 1990600
Variable
Cost

Bank Loan Requirement for the

proposed project
Cost Total Equity Bank Loan
Segregation Cost
Amount % Amount %
Fixed 2515000 1383250 55 1131750 45
Capital
 Prashiddha Bakhra Palan Firm, Thali Kathmandu
Working 1990600 597180 30 1393420 70
Capital
TOTAL 1980430 2525170

Revenue Model per Batch

No. of Wt. Total Wt. Price per KG Total price Running Profit
Kids per Gain Gain Cost
batch By each
90 20 1800 500 900000 663000 237000
(Note : Such batches of Three can be sold during a year)
Conclusion
The project seems viable provided sufficient financing for the project. The demand for goat meat is
increasing and the supply is not meeting the demand of the market. The way forward for these type
of Agribusiness is to move ahead with the project and not to look back. The revenue model of one
batch shows handsome profit for the firm and such batches of 3 can be sold during a year. This type
of business has long perpetual life and sustainability. Therefore we request the bank to provide us
with necessary financing to go-head with the project.