mab presentation3 pcarrd - .: map-agribusiness and ... · how can we help juan maximize profit from...

ANNA MARIE P. ALO Goat ISP Manager and

Supervising Science Research Specialist

PCAARRD-DOST

Alternative livelihood for JUAN

Goat-based

Enterprises

Goat Industry Situationer Goat Industry Situationer

�Sunrise industry slowly gaining favour with investors

�Total inventory: 3.72M goat (BAS, 2012) 98% backyard, 2% commercial

�Provides livelihood to 1.34M

Filipinos (BAS 2010)

Contents Contents

Where is the goat industry now?

Why are goats important?

How can Juan profit from goat raising?

4

1

2

3

How can we help Juan start his goat biz?

Economic Importance Economic Importance

• Lower in saturated fat than chicken,

pork or beef

• Low in cholesterol, high in protein

• Demand & extraction rate greater than

production

Chevon is a

healthy meat

Chevon is a

healthy meat

Great market

potentials

Great market

potentials

Slaughter Goat

Economic Importance Economic Importance

• Closer to human milk, easier to digest and

assimilate in the human body

• With 3.8 times more calcium than a

mother's milk

• Goat milk soap rejuvenates, protects,

moisturizers and exfoliates human skin

Healthier

milk than

cow’s milk

Healthier

milk than

cow’s milk

Dairy Goat

Other Advantages Other Advantages

Fits smallhold farm conditions

Can be raised by any member

of the family

Requires little initial capital

Integral to Filipino festivities


Financially rewarding

• NPV for a 25-doe enterprise

is P197k; IRR, 38.5%

• Good return for P264k total

investment, recovered over

a period of 3 years

(PCAARRD, 2012)


Reproduces fast

JanJanJanJan FebFebFebFeb MarMarMarMar AprAprAprApr MayMayMayMay JunJunJunJun JulJulJulJul AugAugAugAug SepSepSepSep OctOctOctOct NovNovNovNov DecDecDecDec

IIII B1B1B1B1

K1K1K1K1

1111:1:1:1:1

B2B2B2B2

W1W1W1W1

K2K2K2K2

1111:1:1:1:1

IIIIIIII B3B3B3B3

W2W2W2W2

K3K3K3K3

1111:1:1:1:1

B4B4B4B4

W3W3W3W3

IIII Kd1Kd1Kd1Kd1

IIIIIIII B1B1B1B1

K1K1K1K1

1111:1:1:1:1

B2B2B2B2W1W1W1W1

K1K1K1K1

1111:1:1:1:1

IIII Kd2Kd2Kd2Kd2

IIIIIIII B1B1B1B1

K1K1K1K1

1111:1:1:1:1

• Doe-3 kiddings per 2 years = 6 kids

• First Offspring – 2 kiddings = 4 kids

• Second offspring – 1 kidding = 2 kids

Ave. kids in 2 years = 12 kids

Reproduction Rate Reproduction Rate

PRODUCTION ASPECTS GOAT CATTLE CARABAO

Cost of Female Breeder P 4, 000 16, 000 20, 000

Gestation/Pregnancy (Months/Days) 5 (150) 9 (280-290) 11 (320-330)

Marketable Age (Months) 6-7 9-12 10-12

Period from Gestation to Marketable Age (Months) 12 21 23

Kidding /Calving Rate (2 Years) 2 1 1

Number of kids/kidding or calf/calving 2-3 1 1

Price/head of breeder offspring produced 4, 000 16, 000 20, 000

Total income per head of female breeder 8,000-12, 000 16, 000 20, 000

Total income at equal amount of money invested* 40, 000-60,000 16, 000 20, 000

Goat raising generates higher income…Goat raising generates higher income…Goat raising generates higher income…Goat raising generates higher income… * Using P20,000, the price of carabao, as initial investment

Investment Investment How much initial How much initial is needed?

5555----doe doe doe doe

LevelLevelLevelLevel



Capital expendituresCapital expendituresCapital expendituresCapital expenditures

Working capitalWorking capitalWorking capitalWorking capital

Herd development expendituresHerd development expendituresHerd development expendituresHerd development expenditures

TOTAL INVESTMENT COST, TOTAL INVESTMENT COST, TOTAL INVESTMENT COST, TOTAL INVESTMENT COST, PPPP

43,200

8,040

36,184

87,42487,42487,42487,424

88,800

15,969

76,407

181,176181,176181,176181,176



134,600

13,898

115,370

263,868263,868263,868263,868

Ave. annual net cash flow Ave. annual net cash flow Ave. annual net cash flow Ave. annual net cash flow

(5-yr cash flow projection), PPPP 25,61725,61725,61725,617 79,43079,43079,43079,430 134,956134,956134,956134,956

Net present value Net present value Net present value Net present value

(15% cost of capital), PPPP 8,6618,6618,6618,661 96,98296,98296,98296,982 197,707197,707197,707197,707

Internal rate of returnInternal rate of returnInternal rate of returnInternal rate of return 18.93%18.93%18.93%18.93% 33.10%33.10%33.10%33.10% 38.52%38.52%38.52%38.52%

Payback periodPayback periodPayback periodPayback period 4 yrs4 yrs4 yrs4 yrs 3.23yrs3.23yrs3.23yrs3.23yrs 3yrs3yrs3yrs3yrs

Source: PCAARRD. Profitability Analysis: 25-doe-level goat production. Los Baños, Laguna: PCAARRD, 2012.

for

How can we help JUAN maximize profit from goat raising?

“Pang-pulutan” “Goat Negosyo”

1. Change his perspective from 1. Change his perspective from

How can we help JUAN maximize profit from goat raising?How can we help JUAN maximize profit from goat raising?How can we help JUAN maximize profit from goat raising?How can we help JUAN maximize profit from goat raising?

2. Teach him the appropriate & practical

2. Teach him the appropriate & practical TECHNOLOGICAL

OPTIONS such as…

TECHNOLOGICAL

OPTIONS such as…

How can we help JUAN maximize profit from goat raising?How can we help JUAN maximize profit from goat raising?How can we help JUAN maximize profit from goat raising?How can we help JUAN maximize profit from goat raising?

NATIVE 100% 25% N & 75% AN 50% N & 50% AN

of native stocks of native stocks Upgrading Upgrading

Purebred buck Native doe

F1

(50% Purebred:50% Native)

X

1

Purebred buck F1

F2

(75% Purebred:25% Native)

X

2

Purebred buck F2

F3

(87% Purebred:12.5% Native)

X

3

using purebred bucks using purebred bucks Goat upgrading Goat upgrading

Upgraded buck (40 kg) (75% AN:25% N)

Native doe (20 kg) (100% N)

F1 (30 kg)

(37.5% AN:62.5% N)

X

1

Purebred buck (50 kg) (100% AN)

F1 (30 kg) (37.5% AN:62.5% N)

F2 (40 kg)

(68.75% AN:31.25% N)

X

2

Purebred buck (50 kg) (100% AN)

F2 (40 kg) (68.75% AN:31.25% N)

F3 (50 kg)

(84.37% AN:15.63% N)

X

3

Goat upgrading Goat upgrading using an upgraded buck using an upgraded buck

Purebred

Buck 1 (AN)

(50% AN: 50% Native)

X 1st Breeding

Native

doe

Purebred

Buck 2 (AN)

(75% AN: 25% Native)

X 2nd Breeding

(50% AN: 50%

Native)

Purebred

Buck (BO)

(50% BO: 37.5% AN: 12.5% Native)

X 3rd Breeding

(75% AN: 25%

Native)

through Three-Way

Crossbreeding

through Three-Way

Crossbreeding Goat upgrading Goat upgrading

Birth wt = 2.35 kg

Birth wt = 3.0 kg

Birth wt = 2.30 kg

Growth performance of Native, Upgrades, Anglo-Nubian and Boer

1.49

5.81

20.03

2.39

10.75

32.85

3.23

13.01

49.51

3.27

17.05

60.31

0

10

20

30

40

50

60

70

Birth Weight Weaning Weight Mature Weight

Bodyw

eig

ht

(kg)

Native

Upgrades

Anglo-Nubian

Boer

Production Benefit Mature weight of the animals (kg)

Production Stage I II III

Doe 20 (Native) 30 (F1) 40 (F2)

Buck 40 (Upgraded) 50 (Purebred) 50 (Purebred)

Offspring 30 (F1) 40 (F2) 50 (F3)

Weight Difference 10 20 30

Economic Benefit

Weight Difference 10 20 30

Price/kg P100.00 P150.00 P200.00

Price Difference P1,000.00 P3,000.00 P6,000.00

Added benefit from Added benefit from Goat upgrading … Goat upgrading …

25 does x 1.5 kids born /kidding 38 kids

Mortality (20%) 8 animals

Marketable animals 30 animals

Profit I II III

Marketable

animals

P1,000.00 P1,500.00 P2,000.00

30 animals P30,000.00 P45,000.00 P60,000.00

In a projected scale… In a projected scale…

disease and parasite control/ disease and parasite control/ Effective Effective eradication programs eradication programs

Adoption of Adoption of feeding technologies feeding technologies

Supplementation of UTRS Supplementation of UMMB

Supplementation of MPTS

Stall Feeding

Proper housing and Proper housing and complete confinement complete confinement of animals of animals

Sustainable organic production of Sustainable organic production of improved forage improved forage grasses and legumes grasses and legumes

Legume Production in Strata

Grass-Legume combination

Food-feed system

Growth performance of kids from does fed with tree legumes

Application of Application of reproductive biotechnolgy reproductive biotechnolgy

Artificial Insemination

Multiple Ovulation and Embryo transfer

Enterprise Enterprise 3. Focus on the right 3. Focus on the right

Production of Production of Production of Production of

BREEDERSBREEDERSBREEDERSBREEDERS

meat goatsmeat goatsmeat goatsmeat goats

dairy goatsdairy goatsdairy goatsdairy goats


SLAUGHTERSLAUGHTERSLAUGHTERSLAUGHTER

GoatsGoatsGoatsGoats LiveLiveLiveLive

SlaughteredSlaughteredSlaughteredSlaughtered

BUCK

for hire

Marketing of Marketing of Marketing of Marketing of

FORAGE; FORAGE; FORAGE; FORAGE;

UMMBUMMBUMMBUMMB;;;;

ManureManureManureManure


chevonchevonchevonchevon----basedbasedbasedbased

productsproductsproductsproducts

fresh meatfresh meatfresh meatfresh meat

processedprocessedprocessedprocessed


dairydairydairydairy----basedbasedbasedbased

productsproductsproductsproducts

milk, yogurtmilk, yogurtmilk, yogurtmilk, yogurt

soap, lotionssoap, lotionssoap, lotionssoap, lotions

Source: PCAARRD. Invest in goat farming. Los Baños, Laguna: PCAARRD, 2012.

start start How can we help JUAN How can we help JUAN his goat business?

1. Seek technical

assistance

Join the Farmer Livestock School

on Goat Enterprise Management

Enroll in the online courses on goat @

www.e-extension.gov.ph/elearning

� Course 1 – Establishing feed

resources for your goats

� Course 2 – Starting a slaughter goat

enterprise

� Course 3 – Alternatives to

traditional feeding

management

1. Seek technical

assistance Undergo training in any goat center

such as:

Small Ruminant Center

Central Luzon State University

Science City of Munoz, Nueva Ecija

Cagayan Valley Small Ruminant

Research and Training Center

Isabela State University

Echague, Isabela


1. Seek technical

assistance

2. Prepare

production

inputs

Secure initial capital

Establish the pasture and feed

resources

Construct a goat house

Purchase the stocks


ANNA MARIE P. ALO Goat ISP Manager and

Supervising Science Research Specialist

PCAARRD-DOST

Thank You!

Slaughter goat production enterprise

Cost and return analysis, 5 does initial stock, 2 year period

Items Value (Pesos)

Income

Sale of Stocks, 23 hd at P3750/hd 86,250

Manure Does (5 does at 1kg/doe/d *730days*P1/kg) Kids (23 kids at 0.5kg/kid*150days*P1/kg)

5,375

Total Income 91,625

Expenses

Depreciation Does * Housing

7,000 3,000

Feed Concentrates 5,751

Buck Service 2,250

Vet Drugs and Supplies 1,118

Labor 36,500

Total Expenses 55,619

Net Income 36,006

* Does were treated as fixed investment with 5 year lifespan

Buck-for-hire enterprise

Cost and return analysis, 7 bucks, 8-month period*

Items Value (Pesos)

Income from buck service, 448 services*P150/service

Total Income 67,200

Expenses

Depreciation Bucks Housing

7,000 1,400

Feeds 9,072

Labor 6,000

Biologics 700

Transportation 13,540


Net Income 29,688

* Period of analysis is 8mos to coincide with 1st production cycle of the main enterprise on goat raising

UMMB production enterprise

Cost and return analysis, first 8 months of operation*

Items Value (Pesos)

Income

Sales from UMMB, 1200kg*P30/kg 36,000

Sales from seedlings, 3000 seedlings/mo*8mo*P2.50/seedling

60,000

Total Income 96,000

Expenses

UMMB ingredients 15,268

Labor*P200/md 200

Nursery supplies 4,800

Water 500

Labor@ 1min/cup*12000cups 5,000


Net Income 70,232

* Period is set at 8 months to coincide with first production cycle of the main enterprise (goat raising)

Manure commercialization

Cost and return analysis, 8 months of operation*

Items Value (Pesos)

Income

Sales from manure, 50,000kg*P6/kg 300,000

Total Income

Expenses

Procurement cost of manure 83,000

Sack, P6/pc*1250pcs 7,500

Labor, 26days*P200/d 5,200

Transportation (10% of procurement cost) 8,300


Net Income 196,000

* Period is set at 8 months to coincide with first production cycle of the main enterprise (goat raising)

Breeding Kidding

Pre-Weaning Growing to

Slaughtering Marketing

� High kid

mortality

� Low birth to

weaning

weights

� No feed

supple-

ments

specifically

for goats

� Need for flush feeds

for breeders

� Limited access of

smallhold to good

breeds

� Long kidding interval

� Need for halal-

acceptable heat

induction techniques

� Profile of causes

of mortalities

lacking

� Initiated MCM

dewormer; needs

further study

� Need to address

hypobiosis

� Protocol for

producing halal

goats needs

piloting

� Lack of

standards for

slaughtering

& cutting

� Need for

product

diversifica-

tion to

maximize

slaughtering

wastes

Gap

s

Pro

du

cti

on

Sta

ge

Technology Chain Technology Chain

Stage Status S&T Intervention Results of Intervention

� Imported breeds available

at gov’t & private farms but

inaccessible to smallhold

farms

� Semen extender developed

� AI delivery system tested in

Reg2

� Rollout of AI at smallhold

level

� Piloting of AI-DS in other

regions

� Improvement of

cryopreservation

techniques for goat

semen

� Access of

smallholders to

quality breeds

� Increased goat

inventory by 31% by

2015

� Low conception rate (75%)

� Long kidding interval (270

days)

� PBR for lactating

developed, not yet market

available

� Recording system

developed; limited

promotion

� Devt of diff. variants of

flush feeds for does

(2015)

� Rollout and promo of

PBR and FRS (ongoing)

� Roll out FLS-GEM

(ongoing)

� Devt of non-invasive heat

induction techniques to

promote off season

breeding (2015)

� Improved

conception rates

from 75-79% by

2015; 90% by

2020

� Shortened

kidding interval

from 9mos-8mos

Breeding

Kidding

S&T Programs S&T Programs


� High preweaning mortality

(25%)

� Low birth weight (1.6kg)

� No milk substitutes &

transition feeds

� No health program for PW

� Dev’t of new feed

products for newborn &

preweaners

� Dev’t of PWM control

strategies

� Decreased

mortality rates from

25% to 21% by

2015; 10% by

2020

� Low slaughter weight

(12.6kg)

� Higher slaughter than

production

� MCM dewormer initiated

� Goat-based enterprises

introduced in 4 regions

thru RED and FLS

� Halal production and

haram detection protocol

dev’t initiated

� Infusion & promotion of

better genetics

� Roll out of TMR for

growers

� Dev’t of final MCM

manufacturing protocol

� Promotion of goat-based

enterprises

� Pilot test & roll-out halal

goat production,

processing and haram

detection protocols

(2014)

� Higher slaughter

weights

� Grounding of more

goat-based

enterprises

� Availability of

authentic halal

goats

Pre-weaning

Growing/ Finishing

S&T Programs S&T Programs


� Limited market share of

chevon products in the

market

� No premium price for

prime chevon cuts

� Standardization of

slaughtering & cutting

methods initiated

� Protocols for canning

chevon-based recipes

developed

� Estab. of standard

slaughtering procedures

� Dev’t of a uniform

classification of chevon

cuts

� New enterprises from

prime cuts and products

from slaughtering waste

� Improved

marketing of

chevon & chevon-

based products � New food and non-

food products from

goat

� Limited and fragmented

R&D

� Lack of standards on the

production of non-food

goat milk-based products

� Marketing of goat’s milk

and milk products in

limited outlets

� Supply chain assessment

& R&D

� Establishment of

standards for the

manufacture of milk-

based hygiene products

� Goat milk-based product

diversification and

enterprise building

� Assurance of

product quality that

will translate to

better price and

acceptance of

products

Marketing

Milking

mab presentation3 pcarrd - .: map-agribusiness and ... · how can we help juan maximize profit from...

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