smeda intensive goat breeding farm

Pre-Feasibility Study

Intensive Goat Breeding Farm

Small and Medium Enterprise Development AuthorityGovernment of Pakistan

www.smeda.org.pk

HEAD OFFICE

6th Floor, LDA Plaza, Egerton Road, Lahore.Tel: (042) 111-111-456, Fax: (042) , 6304926, 6304927

[email protected]

REGIONAL OFFICE PUNJAB

REGIONAL OFFICE SINDH

REGIONAL OFFICE NWFP

REGIONAL OFFICE BALOCHISTAN

8th Floor, LDA Plaza, Egerton Road, Lahore.

Tel: (042) 111-111-456Fax: (042) 6304926, 6304927

[email protected]

5TH Floor, BahriaComplex II, M.T. Khan Road,

Karachi.Tel: (021) 111-111-456

Fax: (021) [email protected]

Ground FloorState Life Building

The Mall, Peshawar.Tel: (091) 9213046-47


Bungalow No. 15-AChaman Housing Scheme

Airport Road, Quetta.Tel: (081) 2831623, 2831702


Dec, 2009

Pre-feasibility Study Intensive Goat Breeding Farm

BAL-PREF-10/June, 2008

II

DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject matter and

provide a general idea and information on the said area. All the material included in this

document is based on data/information gathered from various sources and is based on certain

assumptions. Although, due care and diligence has been taken to compile this document, the

contained information may vary due to any change in any of the concerned factors, and the

actual results may differ substantially from the presented information. SMEDA does not assume

any liability for any financial or other loss resulting from this memorandum in consequence of

undertaking this activity. Therefore, the content of this memorandum should not be relied upon

for making any decision, investment or otherwise. The prospective user of this memorandum is

encouraged to carry out his/her own due diligence and gather any information he/she considers

necessary for making an informed decision. The content of the information memorandum does

not bind SMEDA in any legal or other form.

DOCUMENT CONTROL

Document No. PREF-20

Prepared by SMEDA-Balochistan

Issue Date Dec, 2009

Issued by SMEDA-Balochistan



III

Table of Contents

1 Purpose of the document............................................................................... 2

2 Project Profile................................................................................................ 2

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 Market analysis ............................................................................................20

4.1 Marketing Channels...................................................................................................204.2 Wholesale Market Locations......................................................................................23

4.2.1 Mode of Transportation:.....................................................................................234.2.2 Special occasions of marketing: .........................................................................24

5 FARM PRODUCTION SYSTEM...............................................................24

5.1 Fodder Farm..............................................................................................................245.1.1 Farm Inputs........................................................................................................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



IV

5.2.5 Diseases and Treatments ....................................................................................27

6 MACHINERY AND EQUIPMENT REQUIREMENTS...........................28

7 LAND AND BUILDING REQUIREMENT ...............................................28

7.1 Recommended Mode .................................................................................................29

8 PROJECT ECONOMICS ...........................................................................30

8.1 Project Cost ...............................................................................................................308.2 Project Returns ..........................................................................................................30

9 FINANCIALANALYSIS .............................................................................31

9.1 Projected Income Statement.......................................................................................319.2 Projected Balance Sheet.............................................................................................329.3 Projected Cash Flow Statement..................................................................................33

10 Key Assumptions ......................................................................................34

10.1 Breed Plan .................................................................................................................3410.2 Revenue Assumption Rs. .........................................................................................3510.3 COGS........................................................................................................................35


1BAL-PREF-20/Dec, 2009

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



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



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.

22..44 PPrrooppoosseedd BBuussiinneessss LLeeggaall SSttaattuuss

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.



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.

22..88 RReeccoommmmeennddeedd PPrroojjeecctt PPaarraammeetteerrss

Table No. 1

Max CapacityHuman

Resource Technology/Machinery Location

146 Adult breeding Females 3 Local Made

Central and Southern Districts of

Balochistan

Financial Summary

Total Cost IRR NPV Pay Back PeriodCost Of Capital

(WACC)

Rs. 4.78 M 28 % 3,175,236 4.15 Years 16%

22..99 SSuuiittaabbllee LLooccaattiioonn

The suitable areas to establish sheep farm are northern, Southern and central Balochistan.

22..1100 KKeeyy SSuucccceessss FFaaccttoorrss//PPrraaccttiiccaall TTiippss ffoorr SSuucccceessss

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



22..1111 SSttrraatteeggiicc RReeccoommmmeennddaattiioonnss

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.

33 CCUURRRREENNTT IINNDDUUSSTTRRYY SSTTRRUUCCTTUURREE

33..11 WWoorrlldd

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.



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



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



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.



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



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

33..33..11 PPrroovviinnccee--wwiissee ddiissttrriibbuuttiioonn ooff bbrreeeeddss..

Balochistan (3): Kajli, Khurrasani and Lehri.

NWFP (3): Damani, Gaddi and Kaghani.

Punjab (4): Beetal, Dera Din Panah, Nachi and Teddy.

Sindh (11): Barbari, Bugri, Chapper, Jattan, Kamori, Kurri, Lohri, Pateri, Sindh

Desi, Tapri and Tharki.

NAs (5): Baltistani, Jarakheil, Kohai Ghizer, Labri and Piamiri.

AJK (7): Beiari, Buchi, Jattal, Kail, Kooti, Pothohari and Shurri.



33..33..22 IImmppoorrttaanntt GGooaatt BBrreeeeddss ooff PPaakkiissttaann..

Milk Breeds Meat Mohair Skin

Beetal Barbari Pak Angora Beetal

Dera Din Panah Chapper Bilkaneri Dera Din Panah

Kamori Teddy Kaghani Nachi

Khurasani

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



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



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.

33..44..11 PPrreevvaalleenntt ssyysstteemm ooff LLiivveessttoocckk pprroodduuccttiioonn iinn BBaalloocchhiissttaann

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.

33..44..22 CChhaarraacctteerriissttiiccss ooff SSoommee BBrreeeeddss RReeccoommmmeennddeedd ffoorr GGooaatt FFaarrmmiinngg::

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



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



Table 5. Production Brief of Some Feed Resources

Crops Seed rate Kg/ha

Sowing time Method of sowing

Green fodder yield (t/ha)

Berseem 20-25 21st Sept- end of Oct.

Broadcast in standing water.

125-150

Lucerne 10-12 Mid Oct.- mid Nov.

45 cm apart in lines.

110-125

Oats 75-100 21st Sept.- 30 cm apart in lines.

60-80

Sorghum 75-80 March-Aug. -do- 50-60

S.S. hybrid 25-30 Mid Feb.- mid Mar.

45 cm apart lines in good

moisture

120-130

Millet 12-15 April-Aug. 30 cm apart in lines

40-60

Guar 40-50 April-July -do- 30-40

Cowpeas 30-35 March-July 45 cm apart 30-40

Source: Pakkissan

33..44..44 PPrroobblleemmss aanndd IIssssuueess ffaacceedd bbyy tthhee LLiivveessttoocckk SSeeccttoorr ooff BBaalloocchhiissttaann

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.



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.

1. Communicable DiseasesGul Ghoto (H.S.), Phurki, Sozish Huwana (Mastitis), Entrotoxaemia, Foot Rot, BlueTong, Thuri (Contagious Ecthyma), Contagious Caprine Pleuropneumonia

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



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.

33..44..55 BBaalloocchhiissttaann’’ss CCoonnttrriibbuuttiioonn ttoo tthhee SSeeccttoorr

Table 4. Goats population Balochistan by Herd, Age, and Sex

Total Goats No of Goats One Year and Above Young Stock Below One

Year

Size of Herd

Household Reporting

No of Goats Total Male Female

001 to 005 Goats 60,440.00 204,323.00 130,750.00 32,785.00 97,968.00 73,572.00

006 to 015 Goats 104,275.00 1,027,602.00 695,438.00 167,384.00 528,052.00 332,169.00

016 to 030 Goats 75,284.00 1,667,741.00 1,151,588.00 267,073.00 884,520.00 516,152.00

031 to 050 Goats 39,038.00 1,533,571.00 1,080,883.00 247,155.00 833,721.00 452,694.00

051 to 075 Goats 20,135.00 1,235,118.00 871,674.00 175,363.00 696,314.00 363,440.00

076 to 100 Goats 9,959.00 872,778.00 638,026.00 115,147.00 522,882.00 234,754.00

101 to 150 Goats 10,328.00 1,263,452.00 920,414.00 177,747.00 742,664.00 343,038.00

151 to 200 Goats 4,743.00 826,501.00 621,179.00 146,274.00 474,902.00 205,319.00

201 to 350 Goats 4,199.00 1,111,427.00 802,578.00 185,223.00 617,356.00 308,851.00

351 Goats and Above

3,391.00 2,042,193.00 1,355,970.00 260,282.00 1,095,689.00 686,219.00

Total 331,789.00 11,784,711.00 8,268,497.00 1,774,431.00 6,494,065.00 3,516,213.00

http://www.statpak.gov.pk/depts/aco/publications/agricultural_census2006



Table 5. Goats population Balochistan by Breed, Age, and Sex

No of Goats One Year and AboveBreed Total Goats

Total Male Female

Young Stock One year and Above

Teddy 359,301.00 232,736.00 57,609.00 175,131.00 126,565.00

Beetal 210,324.00 176,924.00 53,060.00 123,865.00 33,399.00

Kamori 1,300,161.00 893,733.00 184,244.00 709,492.00 406,426.00

Kaghani 35,310.00 22,628.00 2,896.00 19,731.00 12,684.00

Damani 334,146.00 222,451.00 37,072.00 185,379.00 111,694.00

Daira Din Panah 6,769.00 5,012.00 696.00 4,317.00 1,757.00

Nachi 35,572.00 27,779.00 6,789.00 20,988.00 7,795.00

Jatan 42,189.00 28,231.00 4,101.00 24,132.00 13,956.00

Barbary 956,388.00 666,011.00 141,560.00 524,453.00 290,375.00

Pateri 20,027.00 14,229.00 6,326.00 7,904.00 5,801.00

Lehri 807,192.00 568,554.00 111,751.00 456,805.00 238,640.00

Chappar 36,432.00 28,450.00 4,120.00 24,329.00 7,983.00

Others 7,640,900.00 5,381,758.00 1,164,214.00 4,217,546.00 2,259,142.00

Total 11,784,711.00 8,268,497.00 1,774,431.00 6,494,065.00 3,516,213.00http://www.statpak.gov.pk/depts/aco/publications/agricultural_census2006



Table 6. District wise Animal population in Balochistan

S. No. District Cattle Buffalos Sheep Goats Camel Poultry

1 Quetta 11,244 25,547 163,799 120,384 1,377 128,311

2 Pishin 91,433 994 837,233 504,510 745 5,310,751

3 Killa Abdullah 53,111 479 325,020 115,405 359 291,710

4 Chagi 6,576 20 205,725 299,363 17,543 92,931

5 Sibi 54,709 6,133 200,946 208,133 1,866 254,604

6 Kohlu 174,167 1,469 1,306,734 813,575 58,318 172,462

7 Dera Bugti 144,860 6,795 506,095 775,361 35,753 185,429

8 Ziarat 1,929 12 120,054 138,440 34 50,399

9 Loralai 131,806 4,628 784,961 331,737 716 252,903

10 Musa Kheil 197,318 1,650 977,748 464,126 17,639 227,770

11 Barkhan 117,286 2,005 413,840 155,581 3,930 155,917

12 Killa Saifullah 69,361 151 1,066,690 783,624 21,751 274,313

13 Zhob 178,658 5,524 1,174,735 875,922 1,010 229,782

14 Jafferabad 268,721 156,427 241,444 283,922 8,252 507,275

15 Nassirabad 165,765 84,226 148,501 213,294 1,871 292,209

16 Bolan 151,736 4,151 124,569 766,109 34,401 352,580

17 Jhal Magsi 78,294 4,275 61,295 298,687 3,898 157,762

18 Lasbela 101,084 7,980 367,262 794,296 32,202 226,710

19 Mastung 8,628 456 466,894 334,906 2,802 218,682

20 Kalat 31,896 592 1,239,499 807,608 10,264 331,891

21 Khuzdar 103,375 5,782 1,105,410 1,036,004 28,006 336,416

22 Awaran 18,485 40 125,772 344,318 5,335 111,486

23 Kharan 14,854 118 665,903 635,731 76,069 202,230

24 Kech (Turbat) 43,433 306 64,693 455,391 6,061 208,746

25 Gawadar 12,344 51 18,363 88,901 1,432 52,893

26 Panjgur 22,508 49 91,032 139,383 8,074 64,032

Total 2,253,581 319,854 12,804,217 11,784,711 379,528 5,911,304



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



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.



Market Mechanism

Village Mandi

Producer

Butcher

Village Dealers

Consumer

Wholesalers

Main City/Town

Market

Consumer Slaughter Houses

Butcher

Commission Agents

Corporate Consumers

Exporters



44..22 WWhhoolleessaallee MMaarrkkeett LLooccaattiioonnss

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

Source: SMEDA Survey

44..22..11 MMooddee ooff TTrraannssppoorrttaattiioonn::

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.



44..22..22 SSppeecciiaall ooccccaassiioonnss ooff mmaarrkkeettiinngg::

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



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.

55..22..11 AArreeaa rreeqquuiirreedd ffoorr ggooaatt bbrreeeeddiinngg ffaarrmm

Table 9. Area required and costs associatedDescription Area/Goat

(Sq.Ft)No of Goats

Total Area Required (Sq.Ft)

Shed 12 377 + 40 4,521 + 480

Open Space 40 377 + 40 15,071 + 1600

55..22..22 HHuummaann RReessoouurrccee rreeqquuiirreedd ffoorr ggooaatt bbrreeeeddiinngg ffaarrmm

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

(Rs.)No of

MonthsTotal (Rs.)

1 7,500 12 90,000

Total Annual Cost 90,000

55..22..33 PPrrooppoosseedd GGooaatt bbrreeeeddiinngg pprraaccttiiccee

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



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.

55..22..44 RRoouuttiinnee ffoorr ffeeeeddiinngg aanndd mmiillkkiinngg

It is described as under:

06.45 a.m. feed, water and milking. 12.00 noon; Hay, roots or any seasonal crop. 6.00 p.m: Feed and water. 7.00 p.m: Milking.



55..22..55 DDiisseeaasseess aanndd TTrreeaattmmeennttss

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



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

66 MMAACCHHIINNEERRYY AANNDD EEQQUUIIPPMMEENNTT RREEQQUUIIRREEMMEENNTTSS

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)

4 200 800

Wheel Barrow 1 4,000 4,000Weight scale 1 6,000 6,000Chalf Cutter 1 18,000 18,000

Total Rs. 59,300

Table 14. Farm Infrastructure Description No Total Cost (Rs.)Tube Well 01 800,000

77 LLAANNDD AANNDD BBUUIILLDDIINNGG RREEQQUUIIRREEMMEENNTT

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.



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.



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



99 FFIINNAANNCCIIAALLAANNAALLYYSSIISS

99..11 PPrroojjeecctteedd IInnccoommee SSttaatteemmeenntt

Statement Summaries SMEDAIncome Statement

Rs. in actualsYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Revenue 701,744 1,387,983 1,526,782 1,679,460 1,847,406 2,032,146 2,235,361 2,458,897 2,704,787 2,975,265 Cost of goods sold 783,704 1,175,591 1,288,209 1,411,245 1,546,182 1,694,183 1,856,522 2,034,603 2,229,964 2,444,298

Gross Profit (81,961) 212,392 238,573 268,215 301,223 337,964 378,839 424,294 474,822 530,967

General administration & selling expensesAdministration expense 94,500 101,115 108,193 115,767 123,870 132,541 141,819 151,746 162,369 173,734 Rental expense - - - - - - - - - - Utilities expense 60,000 64,200 68,694 73,503 78,648 84,153 90,044 96,347 103,091 110,308 Travelling & Comm. expense (phone, fax, etc.) 18,000 19,260 20,608 22,051 23,594 25,246 27,013 28,904 30,927 33,092 Office expenses (stationary, etc.) 4,500 4,815 5,152 5,513 5,899 6,311 6,753 7,226 7,732 8,273 Professional fees (veterinary) - - - - - - - - - - Depreciation expense 182,857 182,857 185,243 187,628 190,014 192,400 194,785 197,171 199,557 201,943 Amortization expense 3,300 3,300 3,300 3,300 3,300 - - - - - Property tax expense - - - - - - - - - - Miscellaneous expense - - - - - - - - - -

Subtotal 363,157 375,547 391,190 407,761 425,325 440,651 460,415 481,394 503,676 527,350 Operating Income (445,118) (163,155) (152,617) (139,546) (124,102) (102,688) (81,576) (57,100) (28,854) 3,617

Other income (Sale of extra fodder) 1,086,069 1,081,771 1,221,244 1,373,496 1,540,358 1,722,836 1,922,532 2,141,213 2,380,819 2,646,887 Gain / (loss) on sale of assets - - - - - - - - - - Earnings Before Interest & Taxes 640,952 918,616 1,068,627 1,233,950 1,416,256 1,620,148 1,840,956 2,084,112 2,351,966 2,650,504

Interest expense 3,084 - - - - - - - - - Earnings Before Tax 637,868 918,616 1,068,627 1,233,950 1,416,256 1,620,148 1,840,956 2,084,112 2,351,966 2,650,504

Tax - - - - - - - - - - NET PROFIT/(LOSS) AFTER TAX 637,868 918,616 1,068,627 1,233,950 1,416,256 1,620,148 1,840,956 2,084,112 2,351,966 2,650,504

Balance brought forward 574,081 1,343,428 2,170,849 3,064,319 4,032,517 5,087,398 6,235,519 7,487,668 8,855,670 Total profit available for appropriation 637,868 1,492,697 2,412,054 3,404,799 4,480,575 5,652,665 6,928,354 8,319,631 9,839,634 11,506,175Dividend 63,787 149,270 241,205 340,480 448,057 565,266 692,835 831,963 983,963 1,150,617 Balance carried forward 574,081 1,343,428 2,170,849 3,064,319 4,032,517 5,087,398 6,235,519 7,487,668 8,855,670 10,355,557



99..22 PPrroojjeecctteedd BBaallaannccee SShheeeett

Statement Summaries SMEDABalance Sheet

Rs. in actualsYear 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

AssetsCurrent assets

Cash & Bank - 895,384 1,794,668 2,729,153 3,753,451 4,853,013 6,036,208 7,312,560 8,692,476 10,187,335 11,979,740Accounts receivable - 57,678 85,879 119,785 131,763 144,940 159,434 175,377 192,915 212,206 233,427 Finished goods inventory - - - - - - - - - - - Equipment spare part inventory 1,667 2,107 2,578 2,896 3,254 3,656 4,108 4,616 5,187 5,828 - Raw material inventory 277,988 44,055 51,369 59,896 69,839 81,432 94,949 110,711 129,089 150,518 - Pre-paid lease interest - - - - - - - - - - -

Total Current Assets 279,654 999,224 1,934,493 2,911,730 3,958,307 5,083,041 6,294,699 7,603,264 9,019,666 10,555,886 12,213,167

Fixed assetsLand 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 Building/Infrastructure 1,908,542 1,813,115 1,765,401 1,715,302 1,662,817 1,607,947 1,550,690 1,491,048 1,429,021 1,364,608 1,297,809 Machinery & equipment 859,300 773,370 687,440 601,510 515,580 429,650 343,720 257,790 171,860 85,930 - Furniture & fixturesLivestock 495,000 495,000 495,000 495,000 495,000 495,000 495,000 495,000 495,000 495,000 495,000 Office equipment 30,000 28,500 27,000 25,500 24,000 22,500 21,000 19,500 18,000 16,500 15,000

Total Fixed Assets 4,592,842 4,409,985 4,274,841 4,137,312 3,997,397 3,855,097 3,710,410 3,563,338 3,413,881 3,262,038 3,107,809

Intangible assetsPre-operation costs 16,500 13,200 9,900 6,600 3,300 - - - - - -

Total Intangible Assets 16,500 13,200 9,900 6,600 3,300 - - - - - - TOTAL ASSETS 4,888,996 5,422,409 6,219,235 7,055,642 7,959,004 8,938,137 10,005,109 11,166,602 12,433,547 13,817,924 15,320,975

Liabilities & Shareholders' EquityCurrent liabilities

Accounts payable - 59,332 86,811 95,797 105,689 116,624 128,715 142,087 156,883 173,257 176,422 Short term debt 100,000 - - - - - - - - - -

Total Current Liabilities 100,000 59,332 86,811 95,797 105,689 116,624 128,715 142,087 156,883 173,257 176,422

Other liabilitiesTotal Long Term Liabilities - - - - - - - - - - -

Shareholders' equityPaid-up capital 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 4,788,996 Retained earnings - 574,081 1,343,428 2,170,849 3,064,319 4,032,517 5,087,398 6,235,519 7,487,668 8,855,670 10,355,557

Total Equity 4,788,996 5,363,077 6,132,424 6,959,845 7,853,315 8,821,513 9,876,395 11,024,515 12,276,664 13,644,666 15,144,553TOTAL CAPITAL AND LIABILITIES 4,888,996 5,422,409 6,219,235 7,055,642 7,959,004 8,938,137 10,005,109 11,166,602 12,433,547 13,817,924 15,320,975

Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0- - - - - - - (0) (0) (0) (0)



99..33 PPrroojjeecctteedd CCaasshh FFllooww SSttaatteemmeenntt- - - - - - - (0) (0) (0) (0)

Statement Summaries SMEDACash Flow Statement

Rs. in actualsYear 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Operating activitiesNet profit - 637,868 918,616 1,068,627 1,233,950 1,416,256 1,620,148 1,840,956 2,084,112 2,351,966 2,650,504 Add: depreciation expense - 182,857 182,857 185,243 187,628 190,014 192,400 194,785 197,171 199,557 201,943 amortization expense - 3,300 3,300 3,300 3,300 3,300 - - - - - Deferred income tax - - - - - - - - - - - Accounts receivable - (57,678) (28,202) (33,906) (11,978) (13,176) (14,494) (15,943) (17,538) (19,291) (21,221) Finished good inventory - - - - - - - - - - - Equipment inventory (1,667) (440) (471) (319) (358) (402) (452) (508) (571) (641) 5,828 Raw material inventory (277,988) 233,932 (7,313) (8,527) (9,943) (11,593) (13,518) (15,762) (18,378) (21,429) 150,518 Pre-paid lease interest - - - - - - - - - - - Accounts payable - 59,332 27,479 8,986 9,892 10,935 12,091 13,373 14,795 16,374 3,165 Other liabilities - - - - - - - - - - -

Cash provided by operations (279,654) 1,059,171 1,096,267 1,223,404 1,412,491 1,595,333 1,796,175 2,016,901 2,259,593 2,526,536 2,990,736

Financing activitiesChange in long term debt - - - - - - - - - - - Change in short term debt 100,000 (100,000) - - - - - - - - - Issuance of shares 4,788,996 - - - - - - - - - -

Cash provided by / (used for) financing activities4,888,996 (100,000) - - - - - - - - -

Investing activitiesCapital expenditure (4,609,342) - (47,714) (47,714) (47,714) (47,714) (47,714) (47,714) (47,714) (47,714) (47,714)

Cash (used for) / provided by investing activities(4,609,342) - (47,714) (47,714) (47,714) (47,714) (47,714) (47,714) (47,714) (47,714) (47,714)

NET CASH - 959,171 1,048,554 1,175,690 1,364,778 1,547,620 1,748,461 1,969,188 2,211,879 2,478,822 2,943,023

Cash balance brought forward - 895,384 1,794,668 2,729,153 3,753,451 4,853,013 6,036,208 7,312,560 8,692,476 10,187,335Cash available for appropriation - 959,171 1,943,938 2,970,358 4,093,931 5,301,070 6,601,474 8,005,395 9,524,439 11,171,298 13,130,358Dividend - 63,787 149,270 241,205 340,480 448,057 565,266 692,835 831,963 983,963 1,150,617 Cash carried forward - 895,384 1,794,668 2,729,153 3,753,451 4,853,013 6,036,208 7,312,560 8,692,476 10,187,335 11,979,740



1100 KKEEYY AASSSSUUMMPPTTIIOONNSS

1100..11 BBrreeeedd PPllaann

Year 1 2 3 4 5 6 7 8

Total Adult Female 110 110 192 259 259 259 259 259 259Extra Females sold 0 43 110 110 110 110 110 110

Adult Females retained at farm 110 110 149 149 149 149 149 149 149Adult Mortality 2% 2 3 3 3 3 3 3 3

Female Population after mortalitiy 108 146 146 146 146 146 146 146Adult Male Required 3% 3 4 4 4 4 4 4 4

166% 183 247 247 247 247 247 247 247Progeny Mortality 8% 15 20 20 20 20 20 20 20

Progeny after Mortality 168 227 227 227 227 227 227 227Female Progeny 50% 84 113 113 113 113 113 113 113

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



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



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



Annexure

Kamori



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.

c) Fresh legumes: Alfalfa (Lucerene), alsike, beans, clove, kidney vetch, peas, sainfoin, trefoil.

d) Flowering, cereals and grasses: Barley, back wheat, maize, millet, oats, rye, rye-grass, timothy, pasture grass and rotationally grasses.

e) Roots: Artichokes, carrot, fodder beet, kohlrabi, mangold, parsnips, potatoes, swedes and turnip.

f) Silage: Grass, lucrene, maize, oat, pea haulms and pods, rye, vetch and oats.

g) Natural roughage: Brush wood, gorse, heather-tip, treebark, and sweet chestnut.

h) Hays: Barley, clover, couch grass, lucrerne, meadow, oat, rye, rye grass, clover, vetches, oat, wheat.

i) Dried leaves: Artichoke, beech, chicory, elm, grasses, horse-chestnut, lucerne, oak, poplar, willow.

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.



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.

smeda intensive goat breeding farm

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