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Cost and Return Analysis for Goat Raising

By pinoyfarmer | July 9, 2007
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Economics

Goat raising offers a good source of income among rural enterprisers. The following cost and return analyses from goat production of 10- and 25-doe levels under semi-intensive system, and for 50- and 100-doe levels under pure confinement system indicate profitability (Tables 18-22). The technical and financial assumptions were based on industry standard and from long years of experience in goat raising of the Small Ruminant Center of the Central Luzon State University.

Positive net income and return on investment (ROI) are realized for 25-, 50- and 100- doe levels even at the first year of operation but not for 10- doe levels. The lower investment cost, except for the stocks, and better utilization of labor in the 25-doe level operation account for the highest computed ROI. ROI for five-year operation is about 67% for 25-doe level and 60% for 50 – and 100 – doe levels. However, there is a negative net income and ROI during the first-year operation of the 10-doe level. Nonetheless, positive net ncome and ROI could be realized starting from the second year of operation. In five years, ROI for 10- doe level is about 50%. Thus, goat raising is highly profitable.

Table 18. Technical and financial assumptions for goat production.

A. Technical assumptions

Production System Pure confinement for 50 – and 100-doe levels,
semi-intensive for 10 and 25 levels
Stocks  

Does

 Native

Bucks

 Upgraded Anglo Nubian/ Boer
Buck to Doe ratio 1:25
Carrying Capacity 50 animals/ha
Housing (m2)  

Does

 1.5 /head

Bucks

 2.0 /head

Growing

 1.0 /head
Type of housing and fencing materials Permanent/semipermanent
Male to Female Ratio 1:1
Conception Rate 80%
Kid Size 1.5
Kidding per year 1.5/year
Culling Rate 20%
Concentrate Consumption 100g/day/head x 180 days
Forage Consumption 5 kg/day
Kinds of Forage napier and leguminous species
Mortality Rate  

Matured

 5%

Growing

 10%

Kids

 20%

B. Financial assumption

Housing P 200/head for 10 – doe level and
P500/head for other levels
Fencing P 40,000/ha
Land rent computed based on rent for rainfed rice land of
15 cavans/year at 46 kg/cavan at P10/kg
Cost of Stocks  

Does (upgraded: 50 N:50 AN)
 P 1,750/head

Buck
 P 6,000/head
Buck Service P 50/service
Labor 1 laborer per 50 – doe level at 8 hours/day at
P150/day
Concentrate feed 100g/day/180days/P 10/kg
Veterinary drugs and supplies P 50/head/year
Forage and pasture development P 10,000 /ha
Forage and pasture maintenance P 4,000/ha
Price of fattener P2,000/head
Price of breeder P4,000/head
Average marketable weight 20 kg
Life span of housing, equipment and fencing Ten years
Rate of interest on capital 18%/annum
Contingencies 10% of Operating Expenses

 

Table 19a. Capital outlay for 10 - doe level.

Table 19b. Projected production schedule by type and year, 10-doe level.

Table 19c. Projected value of sales by type and year, 10-doe level.

Table 19d. Projected income statement for 10-doe level under semi-intensive

Table 20a. Capital outlay for 25-doe level.

Table 20b. Projected production schedule by type and year, 25-doe level.

Table 20c. Projected value of sales by type and year, 25- doe level.

Table 20d. Projected income statement for 25- doe level under semi-intensive system.

Table 21a. Capital outlay for 50- doe level.

Table 21b. Projected production schedule by type and year, 50- doe level.

Table 21c. Projected value of sales by type and year, 50- doe level.

Table 21d. Projected income statement for 50- doe level under pure confinement system.

Table 22a. Capital outlay for 100- doe level.

Table 22b. Projected production schedule by type and year, 100- doe level.

Table 22c. Projected value of sales by type and year, 100- doe level.

Table 22d. Projected income statement for 100- doe level under pure confinement system.

 

Source: Philippine Recommends for Goat Farming, 2004.

 

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