SMEDA Intensive Goat Breeding Farm

Pre-Feasibility Study
Intensive Goat Breeding Farm
Small and Medium Enterprise Development Authority

Government of Pakistan
www.smeda.org.pk
HEAD OFFICE 6th Floor, LDA Plaza, Egerton Road, Lahore. Tel: (042) 111-111-456, Fax: (042) , 6304926, 6304927 Helpdesk@smeda.org.pk
REGIONAL OFFICE PUNJAB 8th Floor, LDA Plaza, Egerton Road, Lahore. Tel: (042) 111-111-456 Fax: (042) 6304926, 6304927 helpdesk@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 Helpdesk-khi@smeda.org.pk REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 2831623, 2831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk
Dec, 2009
Pre-feasibility Study
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. Prepared by Issue Date Issued by PREF-20 SMEDA-Balochistan Dec, 2009 SMEDA-Balochistan
II BAL-PREF-10/June, 2008
Table of Contents 1 2 Purpose of the document............................................................................... 2 Project Profile................................................................................................ 2

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 Project Brief ................................................................................................................2 Opportunity Rationale..................................................................................................2 Market Entry Timing ...................................................................................................3 Proposed Business Legal Status ...................................................................................3 Proposed Product Mix .................................................................................................3 Production Capacity.....................................................................................................4 Project Investment .......................................................................................................4 Recommended Project Parameters ...............................................................................4 Suitable Location.........................................................................................................4 Key Success Factors/Practical Tips for Success ...........................................................4 Strategic Recommendations.........................................................................................5
CURRENT INDUSTRY STRUCTURE ...................................................... 5

3.1 World ..........................................................................................................................5 3.2 Asia .............................................................................................................................7 3.3 Pakistan .......................................................................................................................7 3.3.1 Province-wise distribution of breeds...................................................................10 3.3.2 Important Goat Breeds of Pakistan. ....................................................................11 3.4 Balochistan................................................................................................................12 3.4.1 Prevalent system of Livestock production in Balochistan ...................................13 3.4.2 Characteristics of Some Breeds Recommended for Goat Farming: .....................13 3.4.3 Feed Resources ..................................................................................................14 3.4.4 Problems and Issues faced by the Livestock Sector of Balochistan .....................15 3.4.5 Balochistans Contribution to the Sector ............................................................17
Market analysis ............................................................................................20

4.1 Marketing Channels...................................................................................................20 4.2 Wholesale Market Locations......................................................................................23 4.2.1 Mode of Transportation:.....................................................................................23 4.2.2 Special occasions of marketing: .........................................................................24
FARM PRODUCTION SYSTEM...............................................................24

5.1 Fodder Farm ..............................................................................................................24 5.1.1 Farm Inputs........................................................................................................24 5.2 Goat Breeding............................................................................................................25 5.2.1 Area required for goat breeding farm .................................................................25 5.2.2 Human Resource required for goat breeding farm ..............................................25 5.2.3 Proposed Goat breeding practice ........................................................................25 5.2.4 Routine for feeding and milking .........................................................................26
III
BAL-PREF-10/June, 2008
5.2.5
Diseases and Treatments ....................................................................................27
6 7 8
MACHINERY AND EQUIPMENT REQUIREMENTS...........................28 LAND AND BUILDING REQUIREMENT ...............................................28

7.1 Recommended Mode .................................................................................................29
PROJECT ECONOMICS ...........................................................................30

8.1 8.2 Project Cost ...............................................................................................................30 Project Returns ..........................................................................................................30
FINANCIALANALYSIS .............................................................................31
9.1 9.2 9.3 Projected Income Statement.......................................................................................31 Projected Balance Sheet.............................................................................................32 Projected Cash Flow Statement..................................................................................33
10
10.1 10.2 10.3
Key Assumptions ......................................................................................34

Breed Plan .................................................................................................................34 Revenue Assumption Rs. .........................................................................................35 COGS........................................................................................................................35
IV BAL-PREF-10/June, 2008
Introduction to SMEDA
The 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 SMEDAs 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 wellinformed investment decisions.
For more information on services offered by SMEDA, please visit our website: www.smeda.org.pk
1 BAL-PREF-20/Dec, 2009
PURPOSE OF THE DOCUMENT
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.
PROJECT PROFILE
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. 2. 1 Project Brief 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) of 28 %. The total project investment would be paid back in approximately 4.15 years. 2. 2 Opportunity Rationale 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. 2. 3 Market Entry Timing 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. 2. 4 Proposed Business Legal Status 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. 2. 5 Proposed Product Mix 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.
2. 6
Production Capacity
The farm will start production with 110 adult females for production which will increase to 146 adult 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 adult breeding females has been kept limited because very large herd would be difficult to manage. 2. 7 Project Investment 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. 2. 8 Recommended Project Parameters
Table No. 1 Human Resource 3
Max Capacity 146 Adult breeding Females
Technology/Machinery Local Made
Location Central and Southern Districts of Balochistan
Financial Summary
Total Cost IRR NPV Pay Back Period Cost Of Capital (WACC)
Rs. 4.78 M
28 %
3,175,236
4.15 Years
16%
2. 9
Suitable Location
The suitable areas to establish sheep farm are northern, Southern and central Balochistan. 2. 10 Key Success Factors/Practical Tips for Success
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
2. 11
Strategic Recommendations
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.
CURRENT INDUSTRY STRUCTURE

3. 1 World
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 Millers 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 Christian Christmas Celeberate the birth of Hazrat Issa (Al.S.) 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 Religious Significance Meat Specification
Easter
Celeberate the Resurrection Hazrat Issa (Al.S.)
of
Palm Sunday
The Sunday preceding Easter Sunday. Palm Sunday is a day that many christian churches commemorate Jesus entry into Jerosalem
Good Friday
Also known as Easter Friday. A day Christians remember as to be the crucification (as per their point of view) of Jesus
Jews Passover 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 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
Hanukkah
Rosh Hashanah
The Jewish new year. Rosh Hashanah begins the 10 day period known as the High Holy Days
Islamic Ramadan Eid al Fitr The ninth Month of Lunar Calender. Muslims fast during the daylight hours of the this holy month. Celeberation at the end of Ramadan. 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.
Eid al Adha
The commemoration of Hazrat Abrahim's Willingness to sacrifice everything, even his son for God.
Source: www.auri.org
3. 2
Asia
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. 3. 3 Pakistan
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 although some 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 200809.
Figure No. 1
Goat Population in Pakistan

59 58.5 58
Population(Million)
58.3
57.5 57 56.5 56 55.5 55 54.5 54 53.5 2006-07 2007-08 Year 2008-2009 55.2 Series1 56.7
Source: Economic Survey of Pakistan 2008-2009
Figure No 2
Mutton Prodution in Pakistan

595,000 590,000 590,000 585,000
Prouction (Tons)
580,000 575,000
578,000 Series1
570,000 565,000 560,000 555,000 550,000
566,000
2006-07
2007-08 Year
2008-09
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
3.3.1 Province-wise distribution of breeds. Balochistan NWFP Punjab Sindh (3): (3): (4): (11): Kajli, Khurrasani and Lehri. Damani, Gaddi and Kaghani. Beetal, Dera Din Panah, Nachi and Teddy. Barbari, Bugri, Chapper, Jattan, Kamori, Kurri, Lohri, Pateri, Sindh Desi, Tapri and Tharki. NAs AJK (5): (7): Baltistani, Jarakheil, Kohai Ghizer, Labri and Piamiri. Beiari, Buchi, Jattal, Kail, Kooti, Pothohari and Shurri.
3.3.2 Important Goat Breeds of Pakistan.

Milk Breeds Meat Mohair Skin
Beetal Dera Din Panah Kamori
Barbari Chapper Teddy
Pak Angora Bilkaneri Kaghani Khurasani
Beetal Dera Din Panah Nachi
Main Characteristics of Goat Breeds of Pakistan

Goat Breed Principal Product Geographic Areas of Concentration Adult Weight Kg Max 28.8 40 Min 25.6 25 Daily Milk Yield (L) 1.1 1.00
Baltistani Barbari/Bari
Milk and Meat Milk and Meat
Beetal
Milk and Meat
Beiari Buchi Bugi Toori Bujri Chappar/Kohistani/Jab li Damani Dera Din Panah Gaddi Jarakheil Jattal
Meat Meat and Hair Meat, and Hair Milk, Meat and Hair Meat
Baltistan in Northern Areas Dadu, Sukkur, Nawabshah, and Mirpurkhas in Sindh. Sahiwal, Lahore, Jhang, Faisalabad, & Sargodha in Punjab Multan, Sahiwal, Lahore, Faisalabad, Sargodha, Jhang, Okara, Jhelum, Gujranwala, Gujrat and Sialkot Kotli and Mirpur Neelam Valley and Muzzafarabad Eastern Parts of Hyderabad and Tando Allah Yar Badin and Thatta Dadu, Jacobabad, Nawabshah, Tharparker, Karachi, and Lasbela Dera Ismail Khan and Peshawer Muzzaffargarh, Leiah, and Multan Kaghan Valley Chilas in Diamir Kotli and Mirpur
55
45
1.8-2.7
25 30 33 45 27
20 22 25 35.5 23
0.9 0.6 0.5-0.75 1-1.25 0.65-9
Milk, Meat, and Hair Milk, Meat And Hair Milk, Meat and Hair Milk and Meat Milk, Meat and
35 55 50 51.5 23
30 50 41 42 19
1.1-1.4 1.3-2.2 0.4-0.7 1.39 0.53
Jattan Kachan/Kachiani Kail Kajli (Pahari) Kaghani
Hair Milk and Meat Milk and Meat Meat and Hair Meat, Hair and Milk Hair and Meat
Kamori Khurassani Koh-I-Ghizer Kooti Kurri
Milk and Meat Milk and Meat Meat Milk and Meat Milk and Meat
Labri Lehri Lohri
Milk and Meat Hair and Meat Meat
Nachi Pamiri Potohari Shurri Sindh Desi Tapri or Lappi Tharki or Tharri Teddy
Milk and Meat Meat Meat Meat and Hair Milk and Meat Milk and Meat Meat Meat
mirpurkhas Hyderbad and Parts of Badin. Also in Lasbela Azad Kashmir Loralai in Balochistan, and DG Khan in Punjab Kaghan Valey (Abbottabad, mansehra, Kohistan and Swat) Hyderabad,Nawabshah, Larkana Quetta, Loralai, Zhob, Chagi Strip along Kohi-Ghizer Neelam Valley Kandhkot, Jacobabad, Sukur, Nawabshah and Kashmore Muzzaffargarh and Poonch Lehri Town in Kachi area of Sibi Kacha area of River Indus, Dadu, Larkana, Khaipur, Sukkur Bhawalpur, Multan, Sahiwal Hunza near Khunjrab and adjoining Pamir region Potohar area in Punjab and Poonch Muzafarabad and Poonch Dadu, Shikarpur, Sukkur, Nawabshah Khipro and Khairpur District Semi arid and arid parts of Thar Gujrat, Jhelum, Sargodha, and Rawalpindi
78 68 28.12 30 37
50 45 23.58 25 32
1.5-3 2-3 0.62 0.9-1.3 0.4-0.7
60 30 41 20 50
50 25 35.6 15 35
1.8-2.2 0.9-1.3 0.97 0.71 1
45 33 58
35 30 45
1.12 0.9 0.75
38 40.5 28 38 27.2 33 32 34
32 36 22 30 22.2 25 24 23
0.6-0.9 0.8 0.73 0.9 0.9-1.8 0.5-1.0 0.5-0.75
3. 4
Balochistan
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 a pivotal 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. 3.4.1 Prevalent system of Livestock production in Balochistan 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.
3. 4. 2
Characteristics of Some Breeds Recommended for Goat Farming:
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/Jabal Mostly 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. Kamori The 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. 3.4.3 Feed Resources 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 Summer Forages Wheat Straw Rice Straw Oat Straw Pulses Straw Maize/Sorghum Stubbles Sugarcane Baggase Maize Sorghum Millet Mot Grass Sada Bahar Winter Forages Berseem Lucern Oats Rye Grass Turnips Energy Sources Maize Sorghum Wheat Oats Barley Concentrates Protein Sources
Cotton Seed Cake Rapeseed Cake Canola Meal Corn Gluten Feed Maize Oil Cake
Guara
Sugarcane Tops
Mamni
Soybean Meal
Corn Cobs Cotton Seed Hulls
Rice Polishing Wheat Bran Rice Bran Molasses
Urea
Table 5. Production Brief of Some Feed Resources

Crops Seed rate Kg/ha 20-25 Sowing time 21st Sept- end of Oct. Mid Oct.- mid Nov. 21st Sept.Method of sowing Broadcast in standing water. 45 cm apart in lines. 30 cm apart in lines. -do45 cm apart lines in good moisture 30 cm apart in lines -do45 cm apart Green fodder yield (t/ha) 125-150
Berseem
Lucerne
10-12
110-125
Oats
75-100
60-80
Sorghum S.S. hybrid
75-80 25-30
March-Aug. Mid Feb.- mid Mar.
50-60 120-130
Millet
12-15
April-Aug.
40-60
Guar Cowpeas
Source: Pakkissan
40-50 30-35
April-July March-July
30-40 30-40
3.4.4 Problems and Issues faced by the Livestock Sector of Balochistan Effect of Drought: Drought was long recorded in Balochistan, but due to slow change and non-availability of technical facilities drought was not noticed until its full effects were seen on the ground especially 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 Diseases Gul Ghoto (H.S.), Phurki, Sozish Huwana (Mastitis), Entrotoxaemia, Foot Rot, Blue Tong, Thuri (Contagious Ecthyma), Contagious Caprine Pleuropneumonia 2. Non Communicable Diseases Khansi (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. 3.4.5 Balochistans Contribution to the Sector Table 4. Goats population Balochistan by Herd, Age, and Sex
Size of Herd Total Goats No of Goats One Year and Above Young Stock Below One Year
Household Reporting 001 to 005 Goats 006 to 015 Goats 016 to 030 Goats 031 to 050 Goats 051 to 075 Goats 076 to 100 Goats 101 to 150 Goats 151 to 200 Goats 201 to 350 Goats 351 Goats and Above Total 60,440.00 104,275.00 75,284.00 39,038.00 20,135.00 9,959.00 10,328.00 4,743.00 4,199.00 3,391.00 331,789.00
No of Goats 204,323.00 1,027,602.00 1,667,741.00 1,533,571.00 1,235,118.00 872,778.00 1,263,452.00 826,501.00 1,111,427.00 2,042,193.00 11,784,711.00
Total 130,750.00 695,438.00 1,151,588.00 1,080,883.00 871,674.00 638,026.00 920,414.00 621,179.00 802,578.00 1,355,970.00 8,268,497.00
Male 32,785.00 167,384.00 267,073.00 247,155.00 175,363.00 115,147.00 177,747.00 146,274.00 185,223.00 260,282.00 1,774,431.00
Female 97,968.00 528,052.00 884,520.00 833,721.00 696,314.00 522,882.00 742,664.00 474,902.00 617,356.00 1,095,689.00 6,494,065.00 73,572.00 332,169.00 516,152.00 452,694.00 363,440.00 234,754.00 343,038.00 205,319.00 308,851.00 686,219.00 3,516,213.00
http://www.statpak.gov.pk/depts/aco/publications/agricultural_census2006
Table 5. Goats population Balochistan by Breed, Age, and Sex

Breed Teddy Beetal Kamori Kaghani Damani Daira Din Panah Nachi Jatan Barbary Pateri Lehri Chappar Others Total Total Goats 359,301.00 210,324.00 1,300,161.00 35,310.00 334,146.00 6,769.00 35,572.00 42,189.00 956,388.00 20,027.00 807,192.00 36,432.00 7,640,900.00 11,784,711.00 No of Goats One Year and Above Total Male Female 232,736.00 57,609.00 175,131.00 176,924.00 53,060.00 123,865.00 893,733.00 184,244.00 709,492.00 22,628.00 2,896.00 19,731.00 222,451.00 37,072.00 185,379.00 5,012.00 696.00 4,317.00 27,779.00 6,789.00 20,988.00 28,231.00 4,101.00 24,132.00 666,011.00 141,560.00 524,453.00 14,229.00 6,326.00 7,904.00 568,554.00 111,751.00 456,805.00 28,450.00 4,120.00 24,329.00 5,381,758.00 1,164,214.00 4,217,546.00 8,268,497.00 1,774,431.00 6,494,065.00 Young Stock One year and Above 126,565.00 33,399.00 406,426.00 12,684.00 111,694.00 1,757.00 7,795.00 13,956.00 290,375.00 5,801.00 238,640.00 7,983.00 2,259,142.00 3,516,213.00
http://www.statpak.gov.pk/depts/aco/publications/agricultural_census2006
Table 6. District wise Animal population in Balochistan

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 District Quetta Pishin Killa Abdullah Chagi Sibi Kohlu Dera Bugti Ziarat Loralai Musa Kheil Barkhan Killa Saifullah Zhob Jafferabad Nassirabad Bolan Jhal Magsi Lasbela Mastung Kalat Khuzdar Awaran Kharan Kech (Turbat) Gawadar Panjgur Total Cattle 11,244 91,433 53,111 6,576 54,709 174,167 144,860 1,929 131,806 197,318 117,286 69,361 178,658 268,721 165,765 151,736 78,294 101,084 8,628 31,896 103,375 18,485 14,854 43,433 12,344 22,508 2,253,581 Buffalos 25,547 994 479 20 6,133 1,469 6,795 12 4,628 1,650 2,005 151 5,524 156,427 84,226 4,151 4,275 7,980 456 592 5,782 40 118 306 51 49 319,854 Sheep 163,799 837,233 325,020 205,725 200,946 1,306,734 506,095 120,054 784,961 977,748 413,840 1,066,690 1,174,735 241,444 148,501 124,569 61,295 367,262 466,894 1,239,499 1,105,410 125,772 665,903 64,693 18,363 91,032 12,804,217 Goats 120,384 504,510 115,405 299,363 208,133 813,575 775,361 138,440 331,737 464,126 155,581 783,624 875,922 283,922 213,294 766,109 298,687 794,296 334,906 807,608 1,036,004 344,318 635,731 455,391 88,901 139,383 11,784,711 Camel 1,377 745 359 17,543 1,866 58,318 35,753 34 716 17,639 3,930 21,751 1,010 8,252 1,871 34,401 3,898 32,202 2,802 10,264 28,006 5,335 76,069 6,061 1,432 8,074 379,528 Poultry 128,311 5,310,751 291,710 92,931 254,604 172,462 185,429 50,399 252,903 227,770 155,917 274,313 229,782 507,275 292,209 352,580 157,762 226,710 218,682 331,891 336,416 111,486 202,230 208,746 52,893 64,032 5,911,304
MARKET ANALYSIS
4. 1 Marketing Channels
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:Producers Livestock 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 Dealers Village 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 Agents Wholesalers 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. Butchers Mutton, 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. Consumers Non-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
Consumer
Butcher
Producer
Village Dealers
Village Mandi
Wholesalers
Main City/Town Market
Commission Agents Consumer Butcher Slaughter Houses Corporate Consumers
Exporters
4. 2
Wholesale Market Locations
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 Livestock Exit Market Destination Mode of Species Location Transport South-East Sibi and Jacobabad (Sindh) Karachi, Hyderabad, Sukkur and Parts of Punjab Rail, Road Sheep goats, Cattle camels, Horses, Donkeys Sheep goats, Cattle
Source supply
of
and Balochi Tribes Brahvi Tribes and Marri Tribes
South-West Bella, Doreji, Kanraj.
Karachi (Sindh)
Road, on hoof
North-East Rakhni
Lahore (Punjab) Faisalabad (Punjab) Multan (Punjab)
Road, on hoof
Sheep goats
and Transhumant grazier from Khuzdar, Awaran and Lasbela and Khetran Tribe Bugti and Marri tribes Pathan tribes Musa Khel
Source: SMEDA Survey
4. 2. 1
Mode of Transportation:
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.
4. 2. 2
Special occasions of marketing:
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.
FARM PRODUCTION SYSTEM
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: 5. 1 Fodder Farm
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. 5.1.1 Farm Inputs Table 8. Farm Inputs Description
Cost/Unit (Rs.)
Land Development Seed Fertilizer Labor Irrigation Miscellaneous
5,000/Crop/Acre 2,000/Crop/Acre 1,600/Crop/Acre 4,500/Person 4000/Month Total Cost
No of Crops Cycle 4.56 Crops 4.56 Crops 4.56 Crops
No. of Labor 4 Person -
No of Acre 25 25 25 -
No of Month 12 12 -
Total Cost (Rs.) 570,000 228,000 182,400 216,000 48,000 60,000
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 doesnt need to be included in the financials, so that to avoid double entry
5. 2
Goat Breeding
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. 5.2.1 Area required for goat breeding farm Table 9. Area required and costs associated Description Area/Goat No of (Sq.Ft) Goats Shed 12 377 + 40 Open Space 40 377 + 40
Total Area Required (Sq.Ft) 4,521 + 480 15,071 + 1600
5.2.2 Human Resource required for goat breeding farm 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 Labor No of Labors Salary/Person/Month (Rs.) 02 4,500 Total Annual Cost Table 11 Farm Supervisor No of Labor Salary/Person/Month (Rs.) 1 7,500 Total Annual Cost 5.2.3 Proposed Goat breeding practice 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
No of Months 12
Total (Rs.) 108,000 108,000
No of Months 12
Total (Rs.) 90,000 90,000
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. 5.2.4 Routine for feeding and milking 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.
5.2.5 Diseases and Treatments

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 Treatments Disease Vaccine Foot Rot
Qty of Time for Time for Vaccine Vaccination Immunity Foot & Mouth 5 ml Start of 4 Months Vaccine Spring
Anthrax
Anthrax vaccine
spore 0.5 ml
March or One Year April or Monsoon season
Bowla Pun
Anti vaccine
Rebek 10 ml
According to One Year need In October 4 months, but if the injection is given again after 4 months then its effects remains up to 1 Year Two months, but if the injection is given again after 2 weeks then effect
Goat Pox
Tep Pox vaccine
0.1 ml
Protective Measures Should be given 4 months prior to the symptoms of disease. 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 Vaccine should be used right after preparation Dont give vaccine in pregnancy period. Prepared vaccine should be given with in 2 hours
Enterotoxaemia
Introta Casimia 3 ml vaccine
January
Thorough examination is required for the identification of this disease. Inject should not be given prior to the age of 3
Virus Dirmititus
Tep Virus 5 ml Dirmititus Vaccine
According need
Caprine Caprine 1 ml Pleuropneumonia Pleuropneumonia vaccine
May, June November, December
remains up Months to 1 year to Up to 4 Where the months disease is occurred injection should be given their & Up to 4 Great care should Months be needed for the identification of this disease
MACHINERY AND EQUIPMENT REQUIREMENTS
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 Hand Pump or Motor Pump Tubs for Water Feed Mangers Balti (Small Water Drum) Wheel Barrow Weight scale Chalf Cutter Qty 1 6 50 4 1 1 1 Total Rs. Price/Unit 2,500 500 500 200 4,000 6,000 18,000 Total Cost (Rs.) 2,500 3,000 25,000 800 4,000 6,000 18,000 59,300
Table 14. Farm Infrastructure Description Tube Well
No 01
Total Cost (Rs.) 800,000
LAND AND BUILDING REQUIREMENT
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 Cost Description Land Year 1.
Cost/Acre 50,000
Area in Acre 26
Total Cost (Rs.) 1,300,000
Table 16. Building / Shed Construction Cost

No. of Animals Shed for animals Open paddock for lambs Quarantine Pen for lambs open paddock for lambs Stores for Raw Material Attendants Room Office Total cost 377 377 40 40 Space Animal Sqft. / Total Sqft. Area Cost/sqft Total cost. Rs.
12 40 12 40
4,521 15,071 480 1,600 224 224 168
250 20 250 20 500 500 600
1,130,323 301,419 120,000 32,000 112,000 112,000 100,800 1,908,542
7. 1
Recommended Mode
It is recommended to acquire/buy the total land required while the building would be expanded as the need arises in future.
PROJECT ECONOMICS
8. 1 Project Cost
Capital Investment Rs. in actual 1,300,000
Land Building/Infrastructure Machinery & equipment Farm Animals Office equipment Pre-operating costs Total Capital Costs Working Capital Equipment spare part inventory Raw material inventory Cash Total Working Capital Total Investment 1,908,542 859,300 495,000 30,000 16,500 4,609,342 Rs. in actual 1,667 27,988 150,000 179,654 4,705,641
8. 2
Project Returns
Equity 28% 17% 4.16 3,186,371
Description IRR MIRR Payback Period (yrs) Net Present Value (NPV) 9.3 Project Financing Description Debt Financing Equity Financing Total
Percentage 100%
Amount in Rs 4,705,641 4,705,641
9
9. 1
FINANCIALANALYSIS
Projected Income Statement
SMEDA
Year 1 Revenue Cost of goods sold Gross Profit General administration & selling expenses Administration expense Rental expense Utilities expense Travelling & Comm. expense (phone, fax, etc.) Office expenses (stationary, etc.) Professional fees (veterinary) Depreciation expense Amortization expense Property tax expense Miscellaneous expense Subtotal Operating Income Other income (Sale of extra fodder) Gain / (loss) on sale of assets Earnings Before Interest & Taxes Interest expense Earnings Before Tax Tax NET PROFIT/(LOSS) AFTER TAX Balance brought forward Total profit available for appropriation Dividend Balance carried forward 701,744 783,704 (81,961) Year 2 1,387,983 1,175,591 212,392 Year 3 1,526,782 1,288,209 238,573 Year 4 1,679,460 1,411,245 268,215 Year 5 1,847,406 1,546,182 301,223 Year 6 2,032,146 1,694,183 337,964 Year 7 2,235,361 1,856,522 378,839 Year 8 2,458,897 2,034,603 424,294 Year 9 2,704,787 2,229,964 474,822 Rs. in actuals Year 10 2,975,265 2,444,298 530,967
Statement Summaries
Income Statement
94,500 60,000 18,000 4,500 182,857 3,300 363,157 (445,118) 1,086,069 640,952 3,084 637,868 637,868
101,115 64,200 19,260 4,815 182,857 3,300 375,547 (163,155) 1,081,771 918,616 918,616 918,616 574,081 1,492,697 149,270 1,343,428
108,193 68,694 20,608 5,152 185,243 3,300 391,190 (152,617) 1,221,244 1,068,627 1,068,627 1,068,627 1,343,428 2,412,054 241,205 2,170,849
115,767 73,503 22,051 5,513 187,628 3,300 407,761 (139,546) 1,373,496 1,233,950 1,233,950 1,233,950 2,170,849 3,404,799 340,480 3,064,319
123,870 78,648 23,594 5,899 190,014 3,300 425,325 (124,102) 1,540,358 1,416,256 1,416,256 1,416,256 3,064,319 4,480,575 448,057 4,032,517
132,541 84,153 25,246 6,311 192,400 440,651 (102,688) 1,722,836 1,620,148 1,620,148 1,620,148 4,032,517 5,652,665 565,266 5,087,398
141,819 90,044 27,013 6,753 194,785 460,415 (81,576) 1,922,532 1,840,956 1,840,956 1,840,956 5,087,398 6,928,354 692,835 6,235,519
151,746 96,347 28,904 7,226 197,171 481,394 (57,100) 2,141,213 2,084,112 2,084,112 2,084,112 6,235,519 8,319,631 831,963 7,487,668
162,369 103,091 30,927 7,732 199,557 503,676 (28,854) 2,380,819 2,351,966 2,351,966 2,351,966 7,487,668 9,839,634 983,963 8,855,670
173,734 110,308 33,092 8,273 201,943 527,350 3,617 2,646,887 2,650,504 2,650,504 2,650,504 8,855,670 11,506,175 1,150,617 10,355,557
637,868 63,787 574,081
9. 2
Projected Balance Sheet

SMEDA
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Rs. in actuals Year 10
Statement Summaries
Balance Sheet
Assets Current assets Cash & Bank Accounts receivable Finished goods inventory Equipment spare part inventory Raw material inventory Pre-paid lease interest Total Current Assets Fixed assets Land Building/Infrastructure Machinery & equipment Furniture & fixtures Livestock Office equipment Total Fixed Assets Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Short term debt Total Current Liabilities Other liabilities Total Long Term Liabilities
1,667 277,988 279,654
895,384 57,678 2,107 44,055 999,224
1,794,668 85,879 2,578 51,369 1,934,493
2,729,153 119,785 2,896 59,896 2,911,730
3,753,451 131,763 3,254 69,839 3,958,307
4,853,013 144,940 3,656 81,432 5,083,041
6,036,208 159,434 4,108 94,949 6,294,699
7,312,560 175,377 4,616 110,711 7,603,264
8,692,476 192,915 5,187 129,089 9,019,666
10,187,335 212,206 5,828 150,518 10,555,886
11,979,740 233,427 12,213,167
1,300,000 1,908,542 859,300 495,000 30,000 4,592,842
1,300,000 1,813,115 773,370 495,000 28,500 4,409,985
1,300,000 1,765,401 687,440 495,000 27,000 4,274,841
1,300,000 1,715,302 601,510 495,000 25,500 4,137,312
1,300,000 1,662,817 515,580 495,000 24,000 3,997,397
1,300,000 1,607,947 429,650 495,000 22,500 3,855,097
1,300,000 1,550,690 343,720 495,000 21,000 3,710,410
1,300,000 1,491,048 257,790 495,000 19,500 3,563,338
1,300,000 1,429,021 171,860 495,000 18,000 3,413,881
1,300,000 1,364,608 85,930 495,000 16,500 3,262,038
1,300,000 1,297,809 495,000 15,000 3,107,809
16,500 16,500 4,888,996
13,200 13,200 5,422,409
9,900 9,900 6,219,235
6,600 6,600 7,055,642
3,300 3,300 7,959,004
8,938,137
10,005,109
11,166,602
12,433,547
13,817,924
15,320,975
100,000 100,000
59,332 59,332
86,811 86,811
95,797 95,797
105,689 105,689
116,624 116,624
128,715 128,715
142,087 142,087
156,883 156,883
173,257 173,257
176,422 176,422
Shareholders' equity Paid-up capital 4,788,996 Retained earnings Total Equity 4,788,996 TOTAL CAPITAL AND LIABILITIES 4,888,996
4,788,996 574,081 5,363,077 5,422,409
4,788,996 1,343,428 6,132,424 6,219,235
4,788,996 2,170,849 6,959,845 7,055,642
4,788,996 3,064,319 7,853,315 7,959,004
4,788,996 4,032,517 8,821,513 8,938,137
4,788,996 5,087,398 9,876,395 10,005,109
4,788,996 6,235,519 11,024,515 11,166,602
4,788,996 7,487,668 12,276,664 12,433,547
4,788,996 8,855,670 13,644,666 13,817,924
4,788,996 10,355,557 15,144,553 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)
9. 3
Projected Cash Flow Statement

(0) (0) (0) (0)
Statement Summaries
Cash Flow Statement
Year 0 Operating activities Net profit Add: depreciation expense amortization expense Deferred income tax Accounts receivable Finished good inventory Equipment inventory Raw material inventory Pre-paid lease interest Accounts payable Other liabilities Cash provided by operations Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
SMEDA
Rs. in actuals Year 10
(1,667) (277,988) (279,654)
637,868 182,857 3,300 (57,678) (440) 233,932 59,332 1,059,171
918,616 182,857 3,300 (28,202) (471) (7,313) 27,479 1,096,267
1,068,627 185,243 3,300 (33,906) (319) (8,527) 8,986 1,223,404
1,233,950 187,628 3,300 (11,978) (358) (9,943) 9,892 1,412,491
1,416,256 190,014 3,300 (13,176) (402) (11,593) 10,935 1,595,333
1,620,148 192,400 (14,494) (452) (13,518) 12,091 1,796,175
1,840,956 194,785 (15,943) (508) (15,762) 13,373 2,016,901
2,084,112 197,171 (17,538) (571) (18,378) 14,795 2,259,593
2,351,966 199,557 (19,291) (641) (21,429) 16,374 2,526,536
2,650,504 201,943 (21,221) 5,828 150,518 3,165 2,990,736
Financing activities Change in long term debt Change in short term debt 100,000 Issuance of shares 4,788,996 Cash provided by / (used for) financing activities 4,888,996 Investing activities Capital expenditure (4,609,342) Cash (used for) / provided by investing activities (4,609,342) NET CASH Cash balance brought forward Cash available for appropriation Dividend Cash carried forward -
(100,000) (100,000)
959,171 959,171 63,787 895,384
(47,714) (47,714) 1,048,554 895,384 1,943,938 149,270 1,794,668
(47,714) (47,714) 1,175,690 1,794,668 2,970,358 241,205 2,729,153
(47,714) (47,714) 1,364,778 2,729,153 4,093,931 340,480 3,753,451
(47,714) (47,714) 1,547,620 3,753,451 5,301,070 448,057 4,853,013
(47,714) (47,714) 1,748,461 4,853,013 6,601,474 565,266 6,036,208
(47,714) (47,714) 1,969,188 6,036,208 8,005,395 692,835 7,312,560
(47,714) (47,714) 2,211,879 7,312,560 9,524,439 831,963 8,692,476
(47,714) (47,714) 2,478,822 8,692,476 11,171,298 983,963 10,187,335
(47,714) (47,714) 2,943,023 10,187,335 13,130,358 1,150,617 11,979,740
10 KEY ASSUMPTIONS
10. 1 Breed Plan
Year Total Adult Female Extra Females sold Adult Females retained at farm Adult Mortality Female Population after mortalitiy Adult Male Required Progeny Mortality Progeny after Mortality Female Progeny Male Progeny Young Male sold 7 Months Extra Females sold 7 Months and Adult Total Heads (Adults and Progeny at farm) 50% 50% 110 110 2% 3% 166% 8% 1 110 0 110 2 108 3 183 15 168 84 84 84 43 279 2 192 43 149 3 146 4 247 20 227 113 113 113 110 377 3 259 110 149 3 146 4 247 20 227 113 113 113 110 377 4 259 110 149 3 146 4 247 20 227 113 113 113 110 377 5 259 110 149 3 146 4 247 20 227 113 113 113 110 377 6 259 110 149 3 146 4 247 20 227 113 113 113 110 377 7 259 110 149 3 146 4 247 20 227 113 113 113 110 377 8 259 110 149 3 146 4 247 20 227 113 113 113 110 377
10. 2
Revenue Assumption Rs.
Pirce / Animal for Young Male (7 months) 4,760 Price/animal for extra female (7 Months and adult) 5,500 10. 3 COGS Price (Rs.) 4,500 11.25 8.00 80
Costs Assumptions Cost of a female Goat Cost of fodder and Concentrate /Animal/Day Cost of fodder and Concentrate / Young Animal/Day Cost of Vaccine/Medicine/Animal/Year
Annexure I
Farm layout Covered Shed for She-Goats Covered Shed for Kids
Open Space for She Goats Store Room for Labor with Wash room
Gate
Covered Shed for HeGoats
Open Space for He Goats
Quarantine Area
Note : The doted line represents fencing. The Layout may be changed as per the location or will of the Entrepreneur
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.

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Pre-Feasibility Study

Intensive Goat Breeding Farm

Small and Medium Enterprise Development Authority

Intensive Goat Breeding Farm

Intensive Goat Breeding Farm

Table of Contents 1 2 Purpose of the document............................................................................... 2 Project Profile................................................................................................ 2

CURRENT INDUSTRY STRUCTURE ...................................................... 5

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

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

Intensive Goat Breeding Farm

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

MACHINERY AND EQUIPMENT REQUIREMENTS...........................28 LAND AND BUILDING REQUIREMENT ...............................................28

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

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

Intensive Goat Breeding Farm

Intensive Goat Breeding Farm

PURPOSE OF THE DOCUMENT

Intensive Goat Breeding Farm

Intensive Goat Breeding Farm

Table No. 1 Human Resource 3

Max Capacity 146 Adult breeding Females

Technology/Machinery Local Made

Location Central and Southern Districts of Balochistan

Intensive Goat Breeding Farm

CURRENT INDUSTRY STRUCTURE

Intensive Goat Breeding Farm

Celeberate the Resurrection Hazrat Issa (Al.S.)

Intensive Goat Breeding Farm

Intensive Goat Breeding Farm

Intensive Goat Breeding Farm

Goat Population in Pakistan

Source: Economic Survey of Pakistan 2008-2009

Intensive Goat Breeding Farm

Mutton Prodution in Pakistan

570,000 565,000 560,000 555,000 550,000

Intensive Goat Breeding Farm

3.3.2 Important Goat Breeds of Pakistan.

Beetal Dera Din Panah Kamori

Barbari Chapper Teddy

Pak Angora Bilkaneri Kaghani Khurasani

Beetal Dera Din Panah Nachi

Main Characteristics of Goat Breeds of Pakistan

Milk and Meat Milk and Meat

Milk and Meat

0.9 0.6 0.5-0.75 1-1.25 0.65-9

1.1-1.4 1.3-2.2 0.4-0.7 1.39 0.53

Intensive Goat Breeding Farm

Jattan Kachan/Kachiani Kail Kajli (Pahari) Kaghani

Kamori Khurassani Koh-I-Ghizer Kooti Kurri

Labri Lehri Lohri

Milk and Meat Hair and Meat Meat

1.5-3 2-3 0.62 0.9-1.3 0.4-0.7

1.8-2.2 0.9-1.3 0.97 0.71 1

1.12 0.9 0.75

0.6-0.9 0.8 0.73 0.9 0.9-1.8 0.5-1.0 0.5-0.75

Intensive Goat Breeding Farm

Characteristics of Some Breeds Recommended for Goat Farming:

Intensive Goat Breeding Farm

Corn Cobs Cotton Seed Hulls

Rice Polishing Wheat Bran Rice Bran Molasses

Intensive Goat Breeding Farm

Table 5. Production Brief of Some Feed Resources

Sorghum S.S. hybrid