Model bankable project on goat farming

Financial assistance for Goat farming

Loan from banks with refinance facility from NABARD is available for starting goat farming. For obtaining bank loan, the farmers should apply to the nearest branch of a Commercial, Co-operative or Regional Rural Bank in their area in the prescribed application form which is available in the branches of financing bank. The Technical officer attached to or the Manager of the bank can help /give guidance to the farmers in preparing the project report to obtain bank loan. For goatery projects with very large outlays, detailed reports will have to be prepared. For high value projects, the borrowers can utilise the services of NABARD Consultancy Services (NABCONS) who are having wide experience in preparation of Detailed Project Reports.

Scheme Formulation

A scheme can be prepared by a beneficiary after consulting local technical persons of State Animal Husbandry Department, DRDA, Sheep-Goat Co-operative society / union /federation and commercial farmers. If possible, the beneficiary may visit progressive goat farmers and government / agricultural /Veterinary university goat farms in the vicinity and discuss the profitability of goat farming. A good practical training and experience in goat farming will be highly desirable. The sheep-goat co-operative societies established in the villages as a result of efforts by the Animal Husbandry/ Live stock Development Department of State Government / Goat Development Board would provide all supporting facilities, particularly marketing of live animals and processed meat.

Scheme Area / Preparation of Land/Civil Works

Any area having sufficient irrigation or reasonable grazing facilities is suitable for goat rearing activity. Generally one acre irrigated land can accommodate 25 goats under intensive system. While selecting the site, a compact area near to veterinary dispensary, disease diagnosis facility, technical supervision, power and water arrangements, marketing arrangements, grazing land etc. should be taken into consideration. The shed should be constructed on a elevated land. Direction of shed should preferably East-West. Outside the shed there should be a provision for open land for exercise. For big farm, there should be a provision for quarantine shed for keeping newly bought goat or sick animals.

Land development such as clearance of bushes, shrubs and leveling, live hedge fencing of land for rearing fodder crop, social fencing etc. may be taken into consideration.

Preparation of Floor

For hot-humid climate, slatted floor raised about one meter above the ground provide good ventilation, easy cleaning and collection of dung and urine. There should be a distance of little less than1/2 ” between the planks of platform. Bottom part of the pit can be pucca for easy collection of dung and urine. Wet floor encourage skin infection, deep litter system of floor increase chances of diseases like TB, para tuberculosis and brucellosis. Concrete floors are hard for standing and sitting more over prone to mastitis and pneumonia. The height of the roof at centre in ‘A’ shaped roof should be about 12-14 ft.. Construction of shed having slatted floor by using local material like bamboo is ideal and cheap. Under intensive and semi-intensive system of goat production, sub-division of groups viz., dry does, lactating does, pregnant goat, buck etc. is important. Use of locally available materials and the unskilled and semi-skilled manpower available with goat keepers is an effective means to keep the cost of construction low.

Fodder arrangement / feeding

Under intensive / semi-intensive system of goat rearing, arrangement of fodder is a must. Cost of cultivation of perennial and annual fodder crops (both leguminous and non-leguminous) is included. Types of fodder to be grown varies agro climatically. Hence farmers should grow the fodder under guidance of district agencies.

Adult dry goat on browse normally get enough nutrients from range however, seasonal variations in nutrient availability and subsequent fluctuation of body weight gain is possible. Supplementary feeding either through green fodder or concentrate mixture may be provided depending upon environment and system of rearing. Goat relish leguminous fodder (viz. Lobia, Berseem, Leucern). Therefore, non-leguminous fodder can be fed with leguminous fodder in 1:1 ratio and balance diet for stall-fed goat normally contain concentrate, dry fodder and green fodder in 1:1:1 ratio. It is advisable to use cheap ingredients like agro-forests by product, organic waste etc. while formulating concentrate mixture. Various composition of concentrate mixtures are given below :

Note : In NE States feed ingredients are not readily available therefore Bajra can be replaced by Maize, Barley grain, Wheat bran, damaged wheat gain, and deoiled GNC can be replaced by deoiled Mustard Cake.

Requirements of a Good Project

The project should include the following information on technical, financial and managerial aspects in detail based on type of unit and capacity.

Technical

• Nearness of the selected area to veterinary centres, meat market and the financing bank’s branch
• Availability of good quality animals in nearby livestock markets. ( Under semi intensive system, Bengal goat, Barbari, Beatal, Jamnapari etc. are suitable, Breeds available in their native tracts are most suitable for farming)
• Source of training facilities.
• Availability of grazing field/lands.
• Availability of green/dry fodder, concentrate feed, medicines etc.
• Availability of veterinary aid and marketing facilities near the scheme area.

Financial

1. Unit Cost – The average cost of goat unit.
2. Input cost for feed and fodder, veterinary aid, insurance, etc.
3. Output costs i.e. sale price of live animals etc.
4. Income-expenditure statement and annual gross surplus.
5. Cash flow analysis.
6. Repayment schedule i.e. repayment of principal loan amount and interest.

Appraisal of the project

The project so formulated considering the above mentioned aspects may be submitted to the nearest branch of the bank for availing credit facility for establishment of the goat farm. The bank will then examine the project for its technical feasibility, financial viability and bankability.

Sanction of Bank Loan and its Disbursement

After ensuring technical feasibility and economic viability, the scheme will be sanctioned by the bank. The loan is disbursed in stages against creation of specific assets such as construction of sheds, purchase of equipment and animals. The end use of the loan is verified and continuous follow-up is done by the bank.

Lending Terms – General

Outlay

Outlay of the project depends on the local conditions, unit size and the investment components included in the project. Prevailing market prices / cost may be considered to arrive at the outlay.

Margin Money

Margin depends on the category of the borrowers and may range from 10% to 25%.

Interest Rate

Banks are free to decide the interest rates within overall RBI guidelines. However, for working out financial viability and bankability of model project, the rate of interest is assumed at 13.00% p.a.

Security

Security will be as per RBI / NABARD guidelines issued from time to time.

Repayment of loan

The loan repayment is determined, on the basis of gross surplus generated in the project. Usually the repayment period of loan for goat farming is 5 to 7 years. In this model scheme the repayment schedule is drawn for 6 years with 1 year moratorium period.

Insurance

The animals and other assets (shed, equipment) may be insured.

Financial projections of Goat Farming

A model financial projection for goat farming with a unit size of 10F+1M goat is given below. This is indicative only and the applicable input and output costs and the parameters observed at the field level may be incorporated. While making financial projections, Bengal goat has been taken into consideration. Black Bengal is one of the world famous breed available in the eastern India. The core of the breeding tract is West Bengal and the neighbouring Bangladesh. Among three major coat colour varieties, viz., black, brown and white, prevalence of black is highest. However relative ratio of different coat colours is variable over the breeding tract. Hair coat is thin and shiny. They are short legged with deep body. Ear is short and erect. Horn is present in both sexes but relatively smaller in females. Among different qualitative traits, prolificacy, chevon and skin quality are of highest order. Its legs are short, but the body is deep. Bucks weigh 14.0-15.3 kg and does 8.4-13.5 kg each. The does kid thrice in two year with average kidding size 1.6. The milk yield is, however poor. The breed is highly adapted to low input system possibly by virtue of its small body size and relatively low rate of nutrient utilization.

Project Cost

Techno-economic parameters

Heard Chart

Income Expenditure analysis

Financial Analysis

Source: NABARD