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Pre-Feasibility Study
Intensive Goat Breeding Farm
Small and Medium Enterprise Development AuthorityGovernment of Pakistan
2.1 Project Brief ................................................................................................................22.2 Opportunity Rationale..................................................................................................22.3 Market Entry Timing ...................................................................................................32.4 Proposed Business Legal Status ...................................................................................32.5 Proposed Product Mix .................................................................................................32.6 Production Capacity.....................................................................................................42.7 Project Investment .......................................................................................................42.8 Recommended Project Parameters ...............................................................................42.9 Suitable Location.........................................................................................................42.10 Key Success Factors/Practical Tips for Success ...........................................................42.11 Strategic Recommendations.........................................................................................5
3 CURRENT INDUSTRY STRUCTURE ...................................................... 5
3.1 World ..........................................................................................................................53.2 Asia .............................................................................................................................73.3 Pakistan .......................................................................................................................7
3.3.1 Province-wise distribution of breeds...................................................................103.3.2 Important Goat Breeds of Pakistan. ....................................................................11
3.4 Balochistan................................................................................................................123.4.1 Prevalent system of Livestock production in Balochistan ...................................133.4.2 Characteristics of Some Breeds Recommended for Goat Farming: .....................133.4.3 Feed Resources ..................................................................................................143.4.4 Problems and Issues faced by the Livestock Sector of Balochistan .....................153.4.5 Balochistan’s Contribution to the Sector ............................................................17
4.2.1 Mode of Transportation:.....................................................................................234.2.2 Special occasions of marketing: .........................................................................24
5 FARM PRODUCTION SYSTEM...............................................................24
5.2 Goat Breeding............................................................................................................255.2.1 Area required for goat breeding farm .................................................................255.2.2 Human Resource required for goat breeding farm ..............................................255.2.3 Proposed Goat breeding practice ........................................................................255.2.4 Routine for feeding and milking.........................................................................26
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IV
5.2.5 Diseases and Treatments ....................................................................................27
6 MACHINERY AND EQUIPMENT REQUIREMENTS...........................28
7 LAND AND BUILDING REQUIREMENT ...............................................28
10.1 Breed Plan .................................................................................................................3410.2 Revenue Assumption Rs. .........................................................................................3510.3 COGS........................................................................................................................35
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Introduction to SMEDAThe Small and Medium Enterprise Development Authority (SMEDA) was established with the
objective to provide fresh impetus to the economy through the launch of an aggressive SME
support program.1
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including financial aspects, niche marketing, technology
upgradation and human resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and vegetables,
marble and granite, gems and jewelry, marine fisheries, leather and footwear, textiles, surgical
instruments, urban transport and dairy. Whereas the task of SME development at a broader scale
still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation.
Along with the sectoral focus a broad spectrum of business development services is also offered
to the SMEs by SMEDA. These services include identification of viable business opportunities
for potential SME investors. In order to facilitate these investors, SMEDA provides business
guidance through its help desk services as well as development of project specific documents.
These documents consist of information required to make well-researched investment decisions.
Pre-feasibility studies and business plan development are some of the services provided to
enhance the capacity of individual SMEs to exploit viable business opportunities in a better way.
This document is in the continuation of this effort to enable potential investors to make well-
informed investment decisions.
1 For more information on services offered by SMEDA, please visit our website: www.smeda.org.pk
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11 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and production, finance and business management.
22 PPRROOJJEECCTT PPRROOFFIILLEE
The project is related to setting up a Fully Intensive Goat Breeding Farm in promising areas of Balochistan. The document highlights all the marketing, management, and financial aspects required for the establishment and successful running of the project.
22..11 PPrroojjeecctt BBrriieeff
The farm will serve as breeding and rearing farm for goats. The project can be established in promising areas for goat breeding where abundance of fresh water is available. The proposed farm will ensure the breeding of disease free animal as it will overcome the disadvantage of bringing the diseases from the animal markets (Mandi).
The project will attain a completely new breed through the cross of the female local goats with the crossed male goats, like Kamori etc. By this, after two breeding cycles the project will develop its own breed that is most suitable to the local environment.
The total project investment is Rs. 4.78 million with a Project Internal Rate of Return (IRR) of28 %. The total project investment would be paid back in approximately 4.15 years.
22..22 OOppppoorrttuunniittyy RRaattiioonnaallee
The widening demand and supply gap makes the goat farming to be a profitable venture. The livestock owners having some fixed land base should be encouraged to undertake intensive farming which in the beginning would be little expensive but with the current lucrative price structure of meat throughout the country coupled with its developing exports potentials, would prove profitable enterprise. With the switching over to fully-intensive farming which would warrant availability of quality breed, stall/ supplementary feeding, non-conventional and economical feeding techniques and improved genetic material, the livestock farming can become a cost effective enterprise with its down stream positive effects in the farming community. The country can thus also be benefited with increased productivity of animal protein.
The selection and development of proper breed is most suitable as per the environment of the area whereas the nutrition is the most important factor to be considered. Though the people are aware of the best breeds but still the conventional farm practices put constraints to the same. Instead of looking for a best cross breed via continuous cycles, they do not give much attention to utilizing only those animals for breeding that can provide the best results. Also nutrition is a serous limiting factor in the livestock industry of Balochistan with the result that many animals arrive at the market in less than optimal body condition with body weight on the lower end. There is a dire need to ensure feed availability round the year with proper protein contents for
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increasing livestock productivity rather then its numbers. Such a situation directs to adopt non–conventional feed preparation and feeding techniques like treatment of wheat/ rice straws and other crop residues with urea or ammonia, molasses bocks, silage making ,concentrate mixtures with low cost formulae, feed lots, semi – intensive farming and ewe flushing etc. such techniques have already been tested and demonstrated to the farmers under different projects.
Based on the above facts, this pre-feasibility for goat farm consisting of 377 goats using stall feeding with intensive animal health coverage has been prepared for interested entrepreneurs as a guidance tool.
22..33 MMaarrkkeett EEnnttrryy TTiimmiinngg
Demand and supply fluctuates during the year depending upon Eid-ul Azha and winter season. If the farmer is targeting Eid for sale of its young stock, It is suggested that female stock ready for breeding is purchased at least 12 to 14 Months before the next Eid. Normally best time for the impregnation of a goat is during the months of March, April, May and October. As it takes around 5 Months for giving birth, therefore kids born have sufficient feed, and prove to be a healthy stock.
Peak Season: supply and demand for goats and sheep are at peak before Eid-ul Azha, due to mass slaughter for Qurbani. A large Number of middlemen come to markets from Punjab, Quetta, Sindh and other areas to buy stocks and transport them to their areas.
Another season with higher supply and demand is the months of November and December. In these months lambs and kids become adult, gain weight and no more depend on their mothers, and producers bring them to market for sale. Thirdly, Nomad and other livestock breeders want to sell their surplus stock because it is very difficult to breed them in winter.
Off-peak Season: June and July is off-peak season for livestock supply and demand because February, March and April are reproductive season for goats and sheep and newly born lambs and kids depend on mother. Moreover, consumption of meat decreases during summer. In this season, goats and sheep are also used for milking purpose.
The business can be started as sole proprietorship or partnership because of great potential involved. Furthermore, comparatively fewer complications are involved in forming, administering and running the sole proprietorship or partnership businesses.
22..55 PPrrooppoosseedd PPrroodduucctt MMiixx
The farm would focus on the breeding and rearing of young male stock for marketing to the goat fattening farms. The kids after attaining the age of 7 Months, will be sold to the farm owners and domestic buyers interested in the fattening of goats. Additionally the raw materials produced would be extra green fodder which would be sold in local markets to other livestock farmers. Once the farm has been established surplus female stock of breeding age i.e after ten months could also be sold in market since it brings a better price as compared to young females of non breeding age.
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22..66 PPrroodduuccttiioonn CCaappaacciittyy
The farm will start production with 110 adult females for production which will increase to 146adult females. The over all farm size at this capacity would be around 377 animals including Young Male and Female Progeny and Female stock of breeding age. The number of adultbreeding females has been kept limited because very large herd would be difficult to manage.
22..77 PPrroojjeecctt IInnvveessttmmeenntt
The total project investment is Rs 4.78 Million which includes working capital of Rs. 0.17 and capital cost of Rs 4.6 Million. It is assumed that the project would be totally equity financed.
Livestock is one of the Major Strength of Balochistan. It is an integral part of the rural Traditional Farming is in practice in the province for Centuries. There is a great demand of livestock especially in Middle Eastern countries. Northern and central Balochistan have the ideal climate for razing our local species of Goat
and Sheep. Fully intensive farming is relatively economical with better results. Fully intensive breeding farm has lesser chances of diseases in the animal, as only the
parent breed is purchased one time at the start of project. Availability of Trained Labour for Farming Local Availability of Raw material and own green fodder at almost 1/3 of the market rate
Pre-feasibility Study Intensive Goat Breeding Farm
Establishment of the farms in areas where cheap land is available, but still not very far from the animal markets.
The farming should be done on scientific grounds taking care of Vaccination, Medicine etc. Healthy and attractive local female without horn should be selected, as it has better
characteristics compatible with the local environment. Healthy and quality male stock should be selected for breeding. New feeding techniques including concentrate feeding and preparation of urea molasses
blocks, wheat straw treatment should be used for better results. Well-trained/experienced staff adding in the efficiency of the farm.
The income of people, meat prices, health consciousness, culture, and religious beliefs are the factors that may shape the demand of meat within a specific country. Through out the world ethnic groups mainly contribute to the demand of meat. For example a country with higher number of immigrants will exhibit a society of mixed and diversified ethnic groups. Many of these groups have some festivals during which the demand of meat is enormously affected. The world average per capita consumption of meat is around 2.5 pounds. The following describes information used by New Zealand in describing the types of products that they attempt to deliver to international markets (M. Miller 1999, Pinkerton 1995):
Taiwan. Taiwanese consumers prefer skin-on carcasses with dress weights between 22 to 35 pounds. Goat meat in this market must be extremely lean with strong flavor. Demand in Taiwan peaks between June and the Chinese new year when most religious celebrations are held (the Chinese new year changes from year to year).
Malaysia. Consumers in Malaysia desire both skin-on and skin-off carcasses. Skin-on carcasses must weigh between 30 and 35 pounds. Skin-off carcasses should weigh between 30 and 44 pounds. Malaysian consumers also require a lean meat. Skin-off product is used in wet dishes, curries, and stews. Skin-on product is used in traditional Chinese recipes. Malaysian consumers prefer intact male carcasses and prefer to slaughter their own animals.
Italy and Greece. The Italian and Greek markets prefer younger goats with carcass weights between 15 and 20 pounds (kids between 8 and 16 weeks old). Depending on the time of season, consumers may be more flexible in their weight preferences. Consumers from these areas buying for Easter and Christmas prefer even lighter kids (In terms of liveweight the animal should weigh between 18 to 28 pounds (carcass weight 9 to 14 pounds). Kids fitting this weight range will normally be somewhere between 4 and 12 weeks of age).
Singapore. Consumers in Singapore prefer skin-off carcasses with heavier dressing weights (up to 55 pounds). A lean product is preferred for use in wet dishes and curries.
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Caribbean (West Africa). The Caribbean market is a sensitive market requiring skin-off, frozen carcass between 24 and 40 pounds. Other products used include 4 to 6 pound packages of cubed, bone-in pieces from older less conditioned goats. Given acceptable prices, there also seems to be some demand for 6 way cuts (carcass divided into two legs, two loins, and two forequarters). Specific information about position of cuts can be found in Miller’s “The NSW Goat Meat Industry” (1999). Jamaicans are a main buyer of mature bucks.
Korea. Goat meat consumption in Korea is based on religious and medicinal beliefs concerning the meat. Korean customers require a skin-on carcass, but specific characteristics (weight, leanness, etc.) vary depending on the final purpose.
Latino. Latino consumers use larger goats with less condition throughout the year. Consumption is extremely sensitive to price for these animals. In addition, Latino consumers demand Cabrito (milk fed kids between the age of 4 and 10 weeks weighing between 15 and 25 pounds). Cabrito is used for special occasions and as such is less sensitive to pricing.
Table 3. Religious Holidays, Significance and Meat Preferences Holiday Religious Significance Meat Specification
Christian
Christmas
Easter
Palm Sunday
Good Friday
Celeberate the birth of Hazrat Issa (Al.S.)
Celeberate the Resurrection of Hazrat Issa (Al.S.)
The Sunday preceding Easter Sunday. Palm Sunday is a day that many christian churches commemorate Jesus entry into Jerosalem
Also known as Easter Friday. A day Christians remember as to be the crucification (as per their point of view) of Jesus
Milk fed kids, but hard to get because it required out of season breeding. Quality control not as important as is the case with Easter Milk fed kids with relatively light colored meat, 3 months old or younger. Kids weighing less than 20 lbs are disappointing to buyers due to low meat to bone ratios and high carcass drying losses. Slight price penalties for kids weighing over 40 lbs. acceptable weights generally range from 20 to 50 lbs with 25 lbs considered optimum by buyers
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Jews
Passover
Hanukkah
Rosh Hashanah
An 8 day observance or celeberation commemorating the freedom of the Israelites from Egypt. It is considered a time of family gathering and lavish meals called Seders
Commemorates the rededication of the Jerussalem temple by Judah Maccabee in 165 B.C
The Jewish new year. Rosh Hashanah begins the 10 day period known as the High Holy Days
Milk fed kids, but hard to get because it required out of season breeding. Quality control not as important as is the case with Easter
Islamic
RamadanEid al Fitr
Eid al Adha
The ninth Month of Lunar Calender. Muslims fast during the daylight hours of the this holy month. Celeberation at the end of Ramadan.
The commemoration of Hazrat Abrahim's Willingness to sacrifice everything, even his son for God.
Male and female kids with all of their milk teeth. Males can be whole or castrated. Optimum liveweight is about 60 lbs. Properly slaughtered/Halal Yearling animals with one set of teeth. Yearling animals with one set of teeth.
Source: www.auri.org
33..22 AAssiiaa
Asia and Pacific have a goat population of about 271 million, representing 58% of the total world population. These contribute 62% meat, 49% milk and 62% skin. There are 22 goat indigenous breeds are found in various parts of the world. Animal products contribute over 56 million tons of edible protein and over 1 billion mega calories of energy annually. This protein is equivalent to more than 50% of protein produced from all cereals. The heaviest concentrations are found in China, India, Pakistan, Indonesia and Bangladesh, which is together 78% of the total population in Asia.
33..33 PPaakkiissttaann
Livestock is one of the Major Strength of Pakistan. It is an integral part of the rural economy and contributed 51.8 percent of the Agricultural Value added, amounting to 11.3 percent in the national GDP during the year 2008-2009. Gross Value addition of Livestock at current cost factor has increased from Rs. 1,052 billion (2007-08) to Rs. 1,287 billion (2008-090, showing an increase of 22.3%. the value of livestock is 6.1% more than the combined value of major and minor crops. As per the statistics released by the Federal Bureau of Statistics, the exports of
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meat and meat preparations increased to 2,824 Metric Ton with a value of $ 6.9 million in 2009, as compared to 1,855 Metric Ton with a value of $ 4.5 million.
While involving a number of government and trade organizations, private enterprises, producers and consumers as stakeholders, the sector provides precious components of foreign exchange earnings through export of wool, carpets and leather products.
There are a number of systems for (sheep) and goat raising in Pakistan. These include nomadic, transhumant and sedentary flocks and househeld goats. Nomadic flocks are constantly moving in search of grazing, whereas transhumant flocks have a fixed base to which they return during specific season of the year Grazing available to both types is usually set by tribal/local customs. There are well-established migration routes usually based on water availability and grazing land. Most kids are born during early spring when flocks are in the milder climates. All female progeny are kept for flock replacement or build-up, but nearly all males are sold before one year of age. Most of the feed for nomadic flocks is derived from rangelands, which is generally free. Transhumant flocks have access to grazing of crop stubbles in their permanent bases, thus making feed supply more reliable. Goats are generally milked for subsistence needs as goat milk is rarely sold in the markets. Sedentary flocks derive most of their feed from grazing wasteland, crop stubbles and nearby rangelands and return to the village/base each night Performance may be similar to transhumant flocks. Female offsprings are kept as replacements and all males are sold before the age of one year after weaning. Small units, of 4-5 animals, are kept by many rural householders. They are kept in confinement near the house and fed on scraps and weeds althoughsome offspring are sold, most is kept for family consumption, especially for ceremonial sacrifice.
The population of goats in 2005-06 was 55.2 Million which increased to 58.3 Million in 2008-09.
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Figure No. 1
Goat Population in Pakistan
55.2
56.7
58.3
53.5
54
54.5
55
55.5
56
56.5
57
57.5
58
58.5
59
2006-07 2007-08 2008-2009
Year
Po
pu
lati
on
(Mil
lio
n)
Series1
Source: Economic Survey of Pakistan 2008-2009
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Figure No 2
Mutton Prodution in Pakistan
566,000
578,000
590,000
550,000
555,000
560,000
565,000
570,000
575,000
580,000
585,000
590,000
595,000
2006-07 2007-08 2008-09
Year
Pro
uct
ion
(T
on
s)
Series1
Note : The production is calculated by applying production paramaters to the projected population of 2006-2009 based on the inter-census growth rate of livestock census growth rate of livestock census 1996-2006. Source: Economic Survey of Pakistan 2008-2009
Main Characteristics of Goat Breeds of Pakistan Goat Breed Principal
ProductGeographic Areas of Concentration
Adult WeightKg
Max Min
Daily Milk Yield (L)
Baltistani Milk and Meat Baltistan in Northern Areas 28.8 25.6 1.1Barbari/Bari Milk and Meat Dadu, Sukkur, Nawabshah,
and Mirpurkhas in Sindh. Sahiwal, Lahore, Jhang, Faisalabad, & Sargodha in Punjab
40 25 1.00
Beetal Milk and Meat Multan, Sahiwal, Lahore, Faisalabad, Sargodha, Jhang, Okara, Jhelum, Gujranwala, Gujrat and Sialkot
55 45 1.8-2.7
Beiari Meat Kotli and Mirpur 25 20 0.9Buchi Meat and Hair Neelam Valley and
Muzzafarabad30 22 0.6
Bugi Toori Meat, and Hair Eastern Parts of Hyderabad and Tando Allah Yar
33 25 0.5-0.75
Bujri Milk, Meat and Hair
Badin and Thatta 45 35.5 1-1.25
Chappar/Kohistani/Jabli
Meat Dadu, Jacobabad, Nawabshah, Tharparker, Karachi, and Lasbela
27 23 0.65-9
Damani Milk, Meat, and Hair
Dera Ismail Khan and Peshawer
35 30 1.1-1.4
Dera Din Panah Milk, Meat And Hair
Muzzaffargarh, Leiah, and Multan
55 50 1.3-2.2
Gaddi Milk, Meat and Hair
Kaghan Valley 50 41 0.4-0.7
Jarakheil Milk and Meat Chilas in Diamir 51.5 42 1.39Jattal Milk, Meat and Kotli and Mirpur 23 19 0.53
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HairJattan Milk and Meat mirpurkhas 78 50 1.5-3Kachan/Kachiani Milk and Meat Hyderbad and Parts of
Badin. Also in Lasbela68 45 2-3
Kail Meat and Hair Azad Kashmir 28.12 23.58 0.62Kajli (Pahari) Meat, Hair and
MilkLoralai in Balochistan, and DG Khan in Punjab
30 25 0.9-1.3
Kaghani Hair and Meat Kaghan Valey (Abbottabad, mansehra, Kohistan and Swat)
37 32 0.4-0.7
Kamori Milk and Meat Hyderabad,Nawabshah, Larkana
60 50 1.8-2.2
Khurassani Milk and Meat Quetta, Loralai, Zhob, Chagi
30 25 0.9-1.3
Koh-I-Ghizer Meat Strip along Kohi-Ghizer 41 35.6 0.97Kooti Milk and Meat Neelam Valley 20 15 0.71Kurri Milk and Meat Kandhkot, Jacobabad,
Sukur, Nawabshah and Kashmore
50 35 1
Labri Milk and Meat Muzzaffargarh and Poonch 45 35 1.12Lehri Hair and Meat Lehri Town in Kachi area of
Sibi33 30 0.9
Lohri Meat Kacha area of River Indus, Dadu, Larkana, Khaipur, Sukkur
58 45 0.75
Nachi Milk and Meat Bhawalpur, Multan, Sahiwal 38 32 0.6-0.9Pamiri Meat Hunza near Khunjrab and
adjoining Pamir region40.5 36 0.8
Potohari Meat Potohar area in Punjab and Poonch
28 22 0.73
Shurri Meat and Hair Muzafarabad and Poonch 38 30 0.9Sindh Desi Milk and Meat Dadu, Shikarpur, Sukkur,
Nawabshah27.2 22.2 0.9-1.8
Tapri or Lappi Milk and Meat Khipro and Khairpur District
33 25 0.5-1.0
Tharki or Tharri Meat Semi arid and arid parts of Thar
32 24 0.5-0.75
Teddy Meat Gujrat, Jhelum, Sargodha, and Rawalpindi
34 23
33..44 BBaalloocchhiissttaann
Balochistan area wise is the largest province of Pakistan with a total land mass of 348,189 sq.km. it has a variety of geographic features including mountains, deserts, rangelands, forests and coastal line. Due to the low rainfall extensive crop culture operations are not possible in all the
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areas. It is estimated that about 15 per cent of the rangeland are located in areas having more than 250 mm annual rainfall, which can support perennial grasses and shrubs. Hence, barring some portions of Loralai and Zhob districts, rest of the land surface does not even support rearing of livestock throughout the year thus necessitating seasonal migration of nomadic and transhumant grazers to find feed for their livestock, which include mostly sheep, goats and lesser number of cattle and camels. In spite of difficult conditions for livestock industry, it occupies apivotal place in the economy of Balochistan due to being the mainstay of more than 75% of the people inhabiting the countryside in the relative absence of other means of subsistence. Due to recent drought particularly in Balochistan province which continued for almost 7 to 8 years the livestock population dropped considerably. It also reduced the resistance of the remaining livestock against diseases and other parasites.
Being a range based livestock production system, it is mostly nomadic and pastoralists migrate according to season, availability of feed for their flocks, opportunities for selling their own labor, to and fro movement from summer and winter quarters adopting fixed migratory routes. Twice a year, in spring and autumn, groups of nomads and transhumant livestock owners follow precise itineraries to and from highlands of Balochistan. Two such itineraries can be distinguished as under:-i) The north-south migratory routes, usually followed by Pushtun nomads and transhumants.ii) The east-west migratory routes, followed by Brahvi transhumants.
Barbari/Bari The Barbari is a meat type breed that is found in Tharparker, Nawabshah, Sukkur, Dadu districts of Sindh, and Gujrat, Jehlum, Sargodha districts of Punjab. They are small sized with small horns and hair. The color is white creamy to golden. Spotted animals also come across. Their meat conformation is considered good. Triple kidding and early maturity are common features of this goat. They give first breed within 14 to 18 Months, and the interval between offspring is 7 to 8 Months. Their hide is of good quality. In 110 days they produce 100 Kg milk.
Chappar/Kohistani/JabalMostly this breed is found in Dadu, Jackobabad, Nawabshah, and Karachi of Sindh, and Lasbela district of Balochistan. As the name reveals, they have the characteristics of Mountainous areas. They are small sized with black body and fairly long hair coat, and small ear. The female gives first offspring with in 15 to 18 Months. Milk period is 120 days with a total of around 91 kg milk. The meat conformation is considered to be medium to good.
Desi/Kachan
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This is a milk and meat breed reared in the Dadu, Shikarpur, Sukkur, and Nawabshah districts of Sindh. This being a cross breed of Kamori and Desi have grayish black color. Their first offspring comes with in 15 to 18 months and an offspring interval of 7-8 months. The single milk period is 95 days with 136 Kg milk. The meat composition is considered to be good.
KamoriThe Kamori is a milk type found in Dadu, Larkana, Hyderabad, and Nawabshah districts of Sindh. They are medium to large size with reddish brown or white and block spotted. They have small horn and long ear. They have and long and developed body, and the udder and teats are fairly developed. Average daily milk production is approximately 1.5 Liters.
33..44..33 FFeeeedd RReessoouurrcceess
The feed can be classified into three types, namely, the Roughages, Green Forages, and Concentrates. Further detail is as under:
Table 3. Classification of Feed Resources
Roughages Green Forages Concentrates
Summer Forages
Winter Forages
Energy Sources
Protein Sources
Wheat Straw Maize Berseem Maize Cotton Seed Cake
Rice Straw Sorghum Lucern Sorghum Rapeseed Cake
Oat Straw Millet Oats Wheat Canola Meal
Pulses Straw Mot Grass Rye Grass Oats Corn Gluten Feed
Maize/Sorghum Stubbles
Sada Bahar Turnips Barley Maize Oil Cake
Sugarcane Baggase Guara Sugarcane Tops
Mamni Soybean Meal
Corn Cobs Rice Polishing Urea
Cotton Seed Hulls Wheat Bran
Rice Bran
Molasses
Pre-feasibility Study Intensive Goat Breeding Farm
Effect of Drought:Drought was long recorded in Balochistan, but due to slow change and non-availability oftechnical facilities drought was not noticed until its full effects were seen on the groundespecially on livestock. Drought has created a very big space in the population of livestock and adversely affected the industry. Major share of local livestock is done by farmers in these areas. This situation created great economic losses to the industry. The remaining Livestock has declining growth, which is venerable to diseases. This situation decreases interest of the breeders and industry is deteriorating slowly.
Issues related to production:The most important issue in production is long-lasting drought that caused feed scarcity, scarcity of feed, effected fertility, weight gain of animals, caused diseases and production losses. It also increased cost of production and decreased breeders’ interest. Most of the local producers are farmers residing in rural areas and drought badly affected their livestock.
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Issues related to Diseases:Like other animals goats also contract diseases and are affected by various viral infections, from which they should be protected, otherwise it would lead to the loss of the production of meat and milk. Therefore it is necessary to give them vaccines at specified times and also provide them with other protective facilities. There are communicable and non-communicable diseases in goats.
2. Non Communicable DiseasesKhansi (Bronchitis), Pneumonia, Impaction of Rumen, Colic, Khuni Ishaal (Dysentry), Thun Sozish (Sore Teat), Rahm Sozish (Matranitis)
Issues related to Selling:Monopoly of the middlemen is the most important issue in the markets; normally end users consumers buy one or two heads and cannot buy whole flock, so sellers are bound to sell their flocks to middlemen. Middlemen buy stocks on very low prices keep them for very few days and sell on higher prices. Most of the sellers are nomads they are bound to sell their stocks to middlemen before going to other area. This results in the low farm prices on the basis of half of the live weight (Currently around Rs.150/Kg).
Another reason for the monopoly of middlemen is Local producer cannot stay in the market for a long period; he is bound to sell his stock to middlemen. Yet another issue in selling is the weakness of animals due to diseases and drought. Weak animals cannot be sold easily and on good price.
Buying and selling activities are very low in the months of June and July which makes it difficult for the small producers to sell their flocks.
Transportation of stock to other areas positively effects the sale and sale price. If local market is not good, people take their flock to other markets nearby or to Punjab or Quetta. Now they are becoming less and less dependent on middlemen. Transportation modes made the breeder concern about their stocks, due to which they normally bring their sick stocks to hospital.
Issues affecting Sale Price:Sale price is mostly affected by demand and supply; during peak season, i.e. Eid-ul- Azha prices are very high due to higher demands. Other factors that affect prices are
Cost of rearing Rainfall Cultivation Number of buyers from Punjab, Sindh and other areas Season Health of the stock
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Issues affecting Meat and milk production:Meat and milk production depends upon breeds. This is also affected by supply of feed, rainfall, nutrition, cultivation and health of the animal.
Facilities in livestock markets:There is none of the facility of water shelter, feed stores in any of the market of Loralai, Duki, Nana sahib, Rakni, Muslim Bagh, Killa Saifullah and other markets in Balochistan. Only the adjoining markets of Yusuf Goth and Sohrab Goth at Karachi are with relatively better sheds. Some private shelters charge the seller Rs. 10 to 15 per head per day for keeping their animals. However, feed houses are available there that sell feed of animal to seller or buyers. Veterinary medical facilities are strongly needed, as sick animals come to these markets with out any check up, causes diseases to other healthy animals.
Total 2,253,581 319,854 12,804,217 11,784,711 379,528 5,911,304
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44 MMAARRKKEETT AANNAALLYYSSIISS
44..11 MMaarrkkeettiinngg CChhaannnneellss
Historically animals have not been marketed on a regular basis for income as a commercial endeavor but sold in times of need. Old females were sold in the spring to pay for supplies, and adult males in the fall for the production of LANDHI, dried mutton, a winter staple food. When purchases of clothing, tea, sugar, grain, animal feed, seed, fertilizer or other market items are required, animals are sold to generate sufficient funds. However, around population centers i.e. big towns and cities, producers have started to consider animal commercial ventures and targets specific markets.
Annual Horse and Cattle Show held at Sibi also provides farmers an opportunity to market their livestock within province as well as to other provinces; to Sindh and Punjab. Although livestock marketing is not well established in Balochistan, however there are livestock markets usually called "Pirri" scattered through out the province; but having very limited basic facilities both for farmers and animals. Marketing; and distribution involves many stakeholders; producers (Agro pastoralists), dealers (usually from villages or adjoining areas), wholesalers, butchers, and consumers. It is difficult to be precise about their exact numbers and their role in the marketing process. The marketing takes place on individual animal as well as on lot basis. The different agents involved are described below:-
ProducersLivestock producers are widely dispersed and only very rarely coordinate with each other. They sell their livestock principally at the village level. Since they sell small ruminants to meet urgent cash demand, the producers are not in a position to bargain very effectively. In a few cases, producers attempt to time the sale of animals to take advantage of seasonal fluctuation, but, in general, the expected price is not a determinant of the decision to sell.
Village DealersVillage dealers purchase animals from surrounding areas and sell them to wholesalers in town markets. They pay the animal transportation costs, feeding costs and their own transportation and food costs.
Wholesalers and Commission AgentsWholesalers buy from village dealers in small towns and transport the livestock to Quetta and the major consumption centers in other provinces such as Karachi and Lahore. Wholesalers also sell livestock through commission agents in the consumption centers. These agents are considered as an essential link with the buyers, and undertake the bargaining and arrangements of livestock sales.
ButchersMutton, goat meat and beef are sold fresh and now even after refrigeration particularly in Quetta and other warmer areas, in small shops after 8-10 hours of slaughtering in traditional type
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slaughter houses which lack proper hygienic facilities. Little, if any, meat is carried over to the following day. Most of the gross income returns to butchers come from meat sales, but a substantial portion is received from by-products such a skin, head, trotters, stomach, lung and liver.
ConsumersNon-graded meat is sold by the butchers in their shops where poor hygienic conditions do exist. The Government regulates consumer prices of essential commodities, one of which is meat, but does not guarantee minimum meat quality standards.
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Market Mechanism
Village Mandi
Producer
Butcher
Village Dealers
Consumer
Wholesalers
Main City/Town
Market
Consumer Slaughter Houses
Butcher
Commission Agents
Corporate Consumers
Exporters
Pre-feasibility Study Intensive Goat Breeding Farm
Sheep and goats belonging to nomadic and transhumant graziers of Balochi and Brahvi tribes are marketed, besides Quetta, in Sibi and Jacobabad. They come down from their summer pastures in the highlands of Quetta, Mastung, Nushki, Kalat and Khuzdar districts to spend the winter in the lower plains of Kachhi and Nasirabad. Graziers of the Bugti and Marri tribes also market their surplus animals next to the local markets in Jacobabad and Sibi, alongside flock owners from the Bolan, Sibi, Jaffarabad and Nasirabad districts.
Sheep and goats belonging to the sedentary and transhumant graziers of the Khetran tribes of Barkhan, the Marri tribes of Kohlu agency and the Duki tehsil, the Pathan tribes of Musakhel district, and the Bugti tribes of Dera Bugti agency (Baker and Phailawag) are marketed in Rakhni (Barkhan district) a border check-post located on road to Punjab for further transport and consumption in various towns of Punjab.
Table 7. Main Exit Markets wit Destination and Species of LivestockExit MarketLocation
Destination Mode ofTransport
Species Source of supply
South-EastSibi andJacobabad(Sindh)
Karachi,Hyderabad, Sukkurand Parts of Punjab
Rail, Road Sheep and goats,Cattle and camels,Horses, Donkeys
Balochi TribesBrahvi TribesMarri Tribes
South-WestBella, Doreji,Kanraj.
Karachi (Sindh) Road,on hoof
Sheep and goats,Cattle
Transhumantgrazier fromKhuzdar, Awaranand Lasbela
North-EastRakhni
Lahore (Punjab)Faisalabad (Punjab)Multan (Punjab)
Road,on hoof
Sheep and goats
Khetran TribeBugti and MarritribesPathan tribesMusa Khel
Earlier the flocks used to move on hoof to and fro from the markets. Due to expansion of cities and increase of vehicular traffic all around it is no longer possible to bring the animals to markets on hoofs. Animals are usually transported on small trucks carrying about 70 sheep and goats or 8 to 10 beef animals.
Pre-feasibility Study Intensive Goat Breeding Farm
Eid-ul-Azha is one special occasion when fattened animals especially goats and bullocks are in heavy demand and find good market in Karachi and other big cities like Lahore, Faisal Abad and Sialkot fetching handsome prices to the owners or middlemen.
55 FFAARRMM PPRROODDUUCCTTIIOONN SSYYSSTTEEMM
This project will mainly focus on goat breeding and on the farm selling on live weight basis. But in future it may expand its operation to the goat fattening, and direct market. For the proposed project it is recommended that the entrepreneur should grow fodder at his own farm. Thus the project is divided into two main activities as under:
55..11 FFooddddeerr FFaarrmm
5 Acre of land grows sufficient green fodder for 100 Goats. So, the minimum feasible land required for this project is, 25 Acre. As this project will include the kids which have lesser feed requirement during initial few months, so some extra fodder will also be available for selling.
55..11..11 FFaarrmm IInnppuuttss
Table 8. Farm InputsDescription Cost/Unit (Rs.) No of
Crop’s Cycle
No. of Labor
No of Acre
No of Month
Total Cost (Rs.)
Land Development
5,000/Crop/Acre 4.56 Crops
- 25 - 570,000
Seed 2,000/Crop/Acre 4.56 Crops
- 25 - 228,000
Fertilizer 1,600/Crop/Acre 4.56 Crops
- 25 - 182,400
Labor 4,500/Person 4 Person
- 12 216,000
Irrigation 4000/Month - - - 12 48,000
Miscellaneous - - - - - 60,000
Total Cost 1,304,400
Note: The costs are given for an idea of the fodder cultivation. The cost of green fodder for this report is calculated on the basis of this and already included in the financials section. Therefore the cost given here doesn’t need to be included in the financials, so that to avoid double entry
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55..22 GGooaatt BBrreeeeddiinngg
Though the total required area for the proposed project is 25,948 Sq. Ft. (Around Half Acre), but the entrepreneur will have to consider 1 Acre. This is because of the fact that agricultural land is sold with standard units of Acres.
Goat farming is not a labour intensive project. Traditionally family is involved in grazing and feeding of Goat. For this particular project Two attendants (Shepard) are required in the first year, which will increase to four attendants in the second year. For a fodder farm spread over 25 Acre, four person can easily manage and handle the fodder growing ,irrigation, and sowing.
Table 10. Farm LaborNo of Labors Salary/Person/Month
(Rs.)No of
MonthsTotal (Rs.)
02 4,500 12 108,000
Total Annual Cost 108,000
Table 11 Farm SupervisorNo of Labor Salary/Person/Month
Before the procurement of animals, it should be ensured that the green fodder is ready, and concentrate is available at farm. The following facts should be considered.
Selection of female/She-goats for reproduction:This is suggested to buy the local female goat, e.g., kachani, khurasani, lehri or jabli goats from the local market. The reason is that, the local breed has the best characteristics to survive in the
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local environment where the project is intended to be established. Goats should be young (approximately 8 months old), and should be of similar breed. Their physical condition should be good, their eyes, jaws, teeth and udder should be in healthy condition.
Selection of male/He- goats:He-goat is the backbone of the herd and the development of coming generation is dependent upon it. It should be healthy and energetic. He-goat should be purchased from the government owned livestock farms. Extra he-goats should be kept in herd so that if one suffers from any kind of disease or accident it should be replaced by another quickly. Normally 1 he goat is enough for cohabitation with 40 she-goats. The mating with good quality male goat will result in the best possible cross breed.
Quarantine system:A system for isolating the newly purchased goats, and treating them to eliminate internal parasites before introduction to the farm should be adopted. There is significant risk of introducing anthelmentic resistant stains of parasites whenever stock are moved between farms so this practice should be applied to all species of livestock farmed. So a separate quarantine place should be available with in the farm.
Mating :The best months for the cohabitation of goats are March, April, May, and October. Pregnancy period is 5 Months or 150 days. Before mating it should be kept in mind that these goats should not give birth at the time of extreme cold. Specially in Pakistan, the best months for mating are September and October are supposed to be the best mating seasons for goats, because heating periods of goats are longer in these months. If mating would be done in these months then the birth of the kids will take place in spring and in these months there will be an ample amount of hay available and they are saved from the cold weather of January and December.
Complete cross breed :The breed after two cycles will be considered to be the completely crossed breed. After the completely crossed breed is available, the local female parent breed will be sold out.
�Separation of Kids from goats :Kids should be separated from goats after a period of 120 days.
The best practice to minimize the losses from diseases is the timely check up and cure of goats and protective measures before the problem arise.
Table 12. Diseases and TreatmentsDisease Vaccine Qty of
VaccineTime for Vaccination
Time for Immunity
Protective Measures
Foot Rot Foot & Mouth Vaccine
5 ml Start of Spring
4 Months Should be given 4 months prior to the symptoms of disease.
Anthrax Anthrax spore vaccine
0.5 ml March or April or Monsoon season
One Year Every year injection should be given but areas where this disease is commonly occurred, injection should be given up to 10 years on yearly basis
Bowla Pun Anti Rebek vaccine
10 ml According to need
One Year Vaccine should be used right after preparation
Goat Pox Tep Pox vaccine 0.1 ml In October 4 months, but if the injection is given again after 4 months then its effects remains up to 1 Year
Don’t give vaccine in pregnancy period. Prepared vaccine should be given with in 2 hours
Enterotoxaemia Introta Casimia vaccine
3 ml January Two months, butif the injection is given again after 2 weeks then effect
Thorough examination is required for the identification of this disease. Inject should not be given prior to the age of 3
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remains up to 1 year
Months
Virus Dirmititus Tep Virus Dirmititus Vaccine
5 ml According to need
Up to 4 months
Where the disease is occurred injection should be given their
Caprine Pleuropneumonia
Caprine Pleuropneumonia vaccine
1 ml May, June & November, December
Up to 4 Months
Great care should be needed for the identification of this disease
Goat Farming is very simple activity and does not require very sophisticated machinery and equipment. Following are the basic requirements for Goat Farm.
Table 13. Machinery and Equipment Requirement
Description Qty Price/Unit Total Cost (Rs.)Hand Pump or Motor Pump
1 2,500 2,500
Tubs for Water 6 500 3,000Feed Mangers 50 500 25,000Balti (Small Water Drum)
A total of around 26 Acre land would be required for the Farm, of which 25 Acre will be utilized for fodder growing and 1 Acre for Goats’ shed. Open Space requirement for goat is 40 Sq.ft./Goat while Shade requirement is 12 Sq.ft./Goat.
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Table 15. Land CostDescription Cost/Acre Area in Acre Total Cost (Rs.)Land 50,000 26 1,300,000
Year 1.
Table 16. Building / Shed Construction Cost
No. of Animals
Space / Animal Sqft.
Total Area Sqft.
Cost/sqft Total cost. Rs.
Shed for animals 377 12 4,521 250 1,130,323
Open paddock for lambs
377 40 15,071 20 301,419
Quarantine Pen for lambs
40 12 480 250 120,000
open paddock for lambs
40 40 1,600 20 32,000
Stores for Raw Material
224 500 112,000
Attendants Room 224 500 112,000
Office 168 600 100,800
Total cost 1,908,542
77..11 RReeccoommmmeennddeedd MMooddee
It is recommended to acquire/buy the total land required while the building would be expanded as the need arises in future.
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88 PPRROOJJEECCTT EECCOONNOOMMIICCSS
88..11 PPrroojjeecctt CCoosstt
Capital Investment Rs. in actual Land
1,300,000 Building/Infrastructure 1,908,542 Machinery & equipment 859,300 Farm Animals 495,000 Office equipment 30,000 Pre-operating costs 16,500 Total Capital Costs 4,609,342
Working Capital Rs. in actual
Equipment spare part inventory 1,667
Raw material inventory 27,988
Cash 150,000
Total Working Capital 179,654
Total Investment 4,705,641
88..22 PPrroojjeecctt RReettuurrnnss
Description Equity
IRR 28%
MIRR 17%
Payback Period (yrs) 4.16
Net Present Value (NPV) 3,186,371
9.3 Project Financing
Description Percentage Amount in RsDebt FinancingEquity Financing 100% 4,705,641Total 4,705,641
Pre-feasibility Study Intensive Goat Breeding Farm
Male Progeny 50% 84 113 113 113 113 113 113 113Young Male sold 7 Months 84 113 113 113 113 113 113 113Extra Females sold 7 Months and Adult 43 110 110 110 110 110 110 110Total Heads (Adults and Progeny at farm) 279 377 377 377 377 377 377 377
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1100..22 RReevveennuuee AAssssuummppttiioonn
RRss..
Pirce / Animal for Young Male (7 months) 4,760Price/animal for extra female (7 Months and adult) 5,500
1100..33 CCOOGGSS
Costs Assumptions Price (Rs.)
Cost of a female Goat 4,500Cost of fodder and Concentrate /Animal/Day 11.25Cost of fodder and Concentrate / Young Animal/Day 8.00Cost of Vaccine/Medicine/Animal/Year 80
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Annexure I
Farm layout
Open Space for She Goats
Note : The doted line represents fencing. The Layout may be changed as per the location or will of the Entrepreneur
Covered Shed for She-Goats Covered Shed for Kids
Covered Shed for He-
Goats
Quarantine Area
Room for Labor with Wash room
Store
Gate
Open Space for He Goats
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Annexure
Kamori
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Goat Feed
It can contain following feed items:
a) Tree leaves: Elm, horse chestnut, mixed leaves, oak, poplar and willow.
b) Leaves of non-legume plants: Artichoke tops, beet-top, mangold-top, nettles, potato haulm, and turnip tops.
j) Fruits: Apples, cleavers, elm fruit dry, and rose hips.
k) Legume seeds: Beans, lupins and peas.
l) Oil cake: Cotton seed, ground nut, linseed, palm kernel, sesamum, soybean and sun flower.
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USEFUL TERMINOLOGY
Buck: preferred term for a male goat (Other acceptable terms include: Ram)
Doe: preferred term for a female goat
Kid: young goat
Halal: religious term used to describe food that is “lawful” or “acceptable” for individuals of the Islamic faith to eat.
Haram: religious term used to describe food that is "unlawful" or "unacceptable" for individuals of the Islamic faith to eat.
Mashbooh: religious term used to describe food that is "questionable" for individuals of the Islamic faith to eat.
Cabrito: Spanish term for gourmet meat derived from young kids.
Goat cheeses: Many cheeses, some of which include: blue caerphilly, camembert, cheddar, chevre, feta, shepherd's tomme, and capriano.
Chevre: French word for goat. Used as a generic term applying to all goat cheeses, but more specifically to mild fresh cheeses.
Capretto: Term used to describe milk fed kids with carcass weights of up to 26.5 pounds.
Kashrut: The body of Jewish law dealing with foods that can and cannot be consumed. In addition the law dictates how the food must be prepared and eaten.
Kosher: Jewish word describing food that meets the standards of the laws of Kashrut.
Glatt Kosher: Kosher without question.
Treyf: Food that is not kosher. Root meaning torn, based on the commandment not to eat animals that have been torn by other animals.