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Goat Farming Business PlanManualCommunity Goat Farming through Cooperative2017-20222017 202250% Boer Crossed Breed Goat Farming Businessin Barpak, GorkhaCommercial Goat Farming throughCooperative Is the Way Out ment of the Local EconomyDistrict Livestock Service Office,Gorkha

Goat Farming Business PlanManualDistrict Livestock Service Office,Gorkha

AcknowledgementThere is highly potentiality for livestock development due to climate and bio-diversityin Nepal. In the country, there is availability of 64 liter milk, 11 kilogram meat and 32 eggs.There shall be increased in the production of 35% milk, 25% meat and 45% eggs in thepresent production, to meet the minimum annual consumption of livestock production as 91liter milk, 14 kilo meat and 48 eggs in the developed country.In this way, there is important contribution of buffalo, goat, sheep, pig, poultry etc. forespecially meat production in livestock production.Likewise, Gorkha district is veryimportant from point of view of goat farming. There are more than 200 thousand goats, andestablishment of nearly 250 commercial goat farms in the district at present. Especially,Jamunapari crossed, Khari crossed, Barbari crossed breeds goats are available here. In therecent time, it has also been started of importing Boer crossed goats in this district. DistrictLivestock Development Office (DLSO) has already developed former Bakrang VillageDevelopment Committee (VDC) and Dhawa VDC as a resource center of Boer goat; whereas,rearing of Boer goat have also been started through Women’s Cooperative in former BarpakVDC (Sulikot Rural Municipality- RM, Ward-1 & 2) from the support of Japan InternationalCooperation Agency (JICA) Nepal from this year.In this way, “Goat Farming Business Plan Manual” which is suitable andapplicable for the Boer goat farming as well as other goat breeds, is going to be published byJICA Nepal, and this hand book shall be very useful to goat farmers in the future. This handbook has analytically covered goat production plan, cost plan, income plan, cost-benefitsanalysis etc. based on contemporary circumstance of Barpak. In this way, it is hoped that thisupcoming publishing Business plan shall be helpful for the development and extension ofgoat farming business in the district, as it is useful as reference to farmers and stakeholders ofthis business to set up own business.In addition to, it is very thankful to JICA Nepal for supporting to goat farmingbusiness by publishing “Goat Farming Business Plan Manual”. Dr. Jagat Bandhu NepaliSenior Livestock Development Officer

Table of Contents1Introduction . 12Production Plan . 232.1Preconditions of this plan . 22.2Production and breeding plan . 2Financial Plan . 73.13.1.1Fixed cost requirement . 73.1.2Depreciation and Interest of fixed cost . 73.1.3Variable cost . 93.245Cost headings . 7Income headings . 103.2.1Sales and Income plan . 103.2.2Inventory of Assets . 11Analysis . 124.1Cost benefit analysis. 124.2Break Even Point . 174.3Loan Payment . 19Conclusions . 22

1 IntroductionJICA has implemented the Project on Rehabilitation and Recovery from NepalEarthquake (RRNE Project) in Barpak, Gorkha- epicentre of devastating earthquake in 2015.One hundred sixty four Boer crossed goats as a revolving fund, and 11 buck of same breedhave been distributed to Barpak Women Multipurpose Cooperative Ltd. for the sustainablerecovery and development of local economy of Barpak through goat farming under livelihoodprogram of this project. The beneficiary people are 78 women there at initial phase, and theyhave received the goat by borrowing a loan from the cooperative. The women need to pay theloan within 2 years, and to do so, they need to breed she-goat appropriately, produce qualitykids and sell them.Even after finishing the loan payback, there are still necessary costs for thecontinuation of goat farming. So, for the continuation of goat farming as a business,respective goat farmers have to recognize appropriate plan, and it is necessary to prepareincome-expenditure plan accordingly. That’s why, this “Goat Farming Business Plan” hasdemonstrated with different models for the goat farming business management, and it shall behelpful to farmers to apply any one suitable plan or formulate additional new plans.Finally, this business plan shall be supportive to contribute for the establishment ofthe model women cooperative regarding goat farming, as well as for the sustainable recoveryand development of local economy of Barpak through well-managed goat farming.1

2Production Plan2.1 Preconditions of this planSome model cases of goat farming business management have been presentedin this plan. The period of this simulation is for 5 years, and the number of initialshe-goat is 1 or 2 head. The cases of keeping the first female kid as a new she-goatfor breeding purpose have also been presented here. The farmers can utilizereferring among the models presented here identifying own appropriateness. (SeeAppendix-1 for the other preconditions)2.2Production and breeding planThe number of kids born is changed depending on the number of she-goat infarm. In addition to, the number of kid production is also largely changed accordingto your decision whether the new born female kid is kept for breeding purpose ornot. Of cause, if farmer keeps many female kids as she-goats, the number of kidproduction is increased, but the feeding cost and labor cost shall also be increased atthe same time. So, it is important for farmer to make appropriate plan suited to farmconditions such as the financial situation and scale of the goat shed. On the otherhand, if farmer afford to increase the she-goat, it is better to keep new female kids atthe early stage such as 1st year or 2nd year, because it would very helpful to farmersto increase the income effectively.2

MODEL CASES (1) Initially 1 head of she-goat1) Sell all born kids (CASE (1)-1) The number of she-goat is 1 head throughout 5 years Maximum 15 kids can be produced in 5 years.Table 1: Breeding and production plan of keeping she-goats (A), and sell all born kidMonthJanFebAprBirth A (2)2 kids2nd yrMayBirth A (4)2 kidsSell A (4)2 goats5th yrBirth A (7)2 kidsJulAugOctNovBirth A(3)2 kidsSell A(3)2 goatsBreed A(5)Sell A(5)2 goatsBirth A(8)2 kidsBreed A (8)KidsbornSales ofgoatTotal remainingNos. of goats afterselling2102Sell A(2)2 goats1433Birth A(5)2 kids242522432443915133DecBreedA (2)Breed A(3)Birth A(6)2 kidsBreed A(6)Sell A (6)2 goatsSepBirth A (1)1 kidSell A (1)1 goatBreedA (4)4th yrJunBreed A(1)Dist.1st yr3rd yrMarTimesofbreedBreed A(7)Sell A(7)2goatsBreedA (9)Total3

2) Keep first female kid for breeding purpose, and sell all other born kids (CASE (1)-2) The number of she-goat is 1 head initially, and then become 2 heads from the middle of 1st year. Maximum of 26 kids can be produced in 5 years.Table 2: Breeding and production of keeping she-goat (A), and keeping 1st female kid (Z)MonthJanFebMarBirth A (2)2 kids2nd yrMayJunBreedA (4)Breed Z(1)BreedA (3)Birth Z (2)2 kidsBreedZ (3)Sell Z (1)1 goat4th yrBreedZ (4)Sell A (4)2 goatsBirth A (7)2 kidsBreed Z (6)5th yrSell Z (4)2 goatsBirth Z (4)2 kidsBreed A (6)Sell A(6)2 goatsAugSepOctBirth A (1)1 femalekid ZBirth A (4)2 kids3rd yrJulBreed A(1)Dist.1st yrAprBreed A (8)KidsbornSalesofgoatTotal remainingNos. of goatsafter selling210235253858Birth Z (5)2 kids4668Breed A (9)4686Total1626216DecBreedA (2)Birth Z (1)1 kidSell A(3)2 goatsNovTimesofbreedBirth A (3)2 kidsBreedZ (2)Sell A (2)2 goatsBirth A (5)2 kidsBirth Z (3)2 kidsBreed A (5)Sell Z (2)2 goatsBirth A(6)2 kidsBreed Z (5)Sell Z(3)2 goatsSell A(5)2 goatsBreed A (7)Birth A(8)2 kidsBirth Z(6)2 kidsBreed Z (7)Sell Z(5)2 goats4Sell A(7)2goats

(2) Initially 2 heads of she-goat1) Sell all born kids (CASE (2)-1) The number of she-goat is 2 heads throughout 5 years. Maximum of 30 kids can be produced in 5 years.Table 3: Breeding and production plan of keeping she-goats (A,B), and sell all born kidsMonthJanFebAprBirth A,B(2)4 kids2nd yrMayBirth A,B (4)4 kidsSellA,B(4)4 goats5th yrBirthA,B (7)4 kidsJulAugOctNovBirthA,B (3)4 kidsSell A,B(3)4 goatsBreedA,B (5)Sell A,B(5)4 goatsBirthA,B (8)4 kidsBreed A,B (8)KidsbornSalesofgoatTotal remainingNos. of goatsafter selling4204Sell A,B (2)4 goats2866Birth A,B (5)4 kids48410448648861830265DecBreedA,B (2)BreedA,B(3)Birth A,B(6)4 kidsBreed A,B(6)Sell A,B(6)4 goatsSepBirthA,B (1)2 kidsSell A,B (1)2 goatsBreedA,B (4)4th yrJunBreedA,B (1)Dist.1st yr3rd yrMarTimesofbreedBreedA,B (7)Sell A,B(7)4 goatsBreed A,B(9)Total5

2) Keep first female kid for breeding purpose, and sell all other born kids (CASE (2)-2) The number of she-goat is 2 heads initially, and then become 3 heads from the middle of 1st year. Maximum of 41 kids can be produced in 5 years.Table 4: Breeding and production plan of keeping she-goats (A,B), and keeping 1st female kid (Z)MonthJanFebBirth A(2)4 kids2nd yr4th yr5th yrBreed Z(1)Sell A,B(4)4 goatsBirth A,B(7)4 kidsSell Z (4)2 goatsMayJunJulBreedZ (6)Sell A,B (1)1 goatBreedA,B (3)Breed Z(3)Sell Z(1)1 goatBreedA,B(6)AugBirth Z (4)2 kidsOctSell A,B(3)4 goatsBirth A,B(6)4 kidsBreed A,B(8)BirthA,B (3)4 kidsSell A,B(5)4 goatsBirth A,B(8)4 kidsBirth Z (6)2 kidsSell Z (5)2 goats6Breed Z(2)Salesof goatTotal remainingNos. of Goatsafter selling42044958512713Birth Z(5)2 kids681011BreedA,B (9)610129Total2541348DecSell Z(2)2 goatsBreedA,B (7)BreedZ (7)SellA,B (2)4 goatsBirthA,B (5)4 kidsBirth Z(3)2 kidsBreed A,B (5)Breed Z (5)NovKidsbornBreedA,B (2)Birth Z (1)1 kidSell Z (3)2 goatsSellA,B (6)4 goatsSepBirth A,B (1)1 female kid Z& 1 kidBirth A,B (4)4 kidsBirth Z(2)2 kidsBreedA,B (4)BreedZ (4)AprBreedA,B (1)Dist.1st yr3rd yrMarTimes ofbreedSell A,B(7)4 goats

3 Financial Plan3.1 Cost headings3.1.1 Fixed cost requirementFixed cost is the cost that is required to operate the business in every year, butit not directly inter-connection with production amount and sales of kids. The majorfixed cost is such as Goat shed construction cost and She-goat procurement cost thatare to be needed at the commencement of the goat farming business. According tothis simulation, NPR 43,172/- is needed if farmer starts with 1 she-goat and NPR60,664/- is needed if start with 2 she-goats. However, farmer shall not count thesecosts on the accounting book because the Goat shed cost should be depreciated in 5years and the loan for goat would be paid after 2 years. It will be explained asfollowings:Table 5: Fixed cost for goat farming businessParticularsUnitQuantityRateTotal AmountRemarksBamboo 6-6.5 m longno5025012,500wall &pillarCGI sheet 2 m.no87506,000roofNailskg81501,200Curved hooks and nut boltsset.50301,500Stall feeding constructionno12,0002,000Labor for shed constructionno55002,500Construction of Goat Shed1Sub Total25,700Particulars2QuantityRateTotal AmountRemarks117,47217,472217,47234,94421kg @NPR 832She-goat Purchasing3.1.2 Depreciation and Interest of fixed costAs goat farmer has introduced goat shed and she-goat as the initial investmentfor goat farming business, it is shall be recorded these costs as depreciation and7