ISO 9001:2000

Philippine Council for Agriculture, Forestry and Natural Resources Research and Development
Department of Science and Technology
Providing science solutions for a vibrant agriculture and sustainable environment
Protability Analysis:
25-doe-level
Goat Production
Protability Analysis No. 01/2007
T
he Philippine Council for Agriculture, Forestry and Natural Resources Research and Development
(PCARRD) is one of the sectoral councils under the Department of Science and Technology (DOST).
Established in 1972, PCARRD formulates policies, plans, and programs for science and technology-
based development in the agriculture, forestry, and natural resources (AFNR) sectors. It coordinates,
evaluates, and monitors the national research and development (R&D) efforts in AFNR. It also allocates
government and external funds for R&D and generates resources to support its programs.
The rst DOST council to earn an ISO 9001:2000 certication for its quality management system,
PCARRD is engaged in active partnerships with international, regional, and national organizations
and funding institutions for joint R&D, human resource development and training, technical
assistance, and exchange of scientists, information, and technologies.
The Council supports the National Agriculture and Resources Research and Development Network
(NARRDN), composed of national multi- and single-commodity and regional R&D centers, cooperating
stations, and specialized agencies. As such, PCARRD has been a potent arm in catalyzing the Philippine
AFNR sectors toward self-sufciency and global competitiveness.
MAILING ADDRESS PHILIPPINE COUNCIL FOR AGRICULTURE,
FORESTRY AND NATURAL RESOURCES
RESEARCH AND DEVELOPMENT
Los Baos, Laguna
TELEPHONES Los Baos - (63) (049) 536-0014 to 536-0015/
536-0017 to 536-0020 & 536-0024
FAX Los Baos - (63) (049) 536-0016/536-0132
DOST Bicutan, Tagig, Metro Manila
(63) (02) 837-1651
E-MAIL pcarrd@pcarrd.dost.gov.ph
WEBSITE http://www.pcarrd.dost.gov.ph
About PCARRD
Protability Analysis:
25-doe-level Goat Production
Philippine Council for Agriculture, Forestry and Natural Resources
Research and Development (PCARRD)
Department of Science and Technology (DOST)
Los Baos, Laguna
2007
First Edition 2007
ISSN: 1908-8043
Bibliographic Citation:
Philippine Council for Agriculture, Forestry and Natural Resources Research and
Development. Protability analysis: 25-doe-level goat production. Los Baos, Laguna:
PCARRD, 2007. 26p. -(Protability Analysis No.01/2007)
iii
I
congratulate PCARRD-DOST for coming up with this Protability Analysis, which
is not just a publication, but more importantly, a science and technology (S&T)-
based solution. PCARRD has put together the necessary information that would
make agribusiness venture more technically and nancially viable.
The tested package of technology (POT) that PCARRD and its research and
development (R&D) partners have developed and included in this publication,
together with the encouraging nancial projections, highlights the role of S&T in
achieving our national development goals.
I am optimistic that with the dissemination of the Protability Analysis, which
PCARRD has prepared for a signicant number of priority commodities
and products, our people will develop greater appreciation of S&T-based
entrepreneurship in agriculture and natural resources sectors.
Hon. ESTRELLA F. ALABASTRO
Secretary
Department of Science and Technology
Republic of the Philippines
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A
gribusiness is among the ourishing enterprise in the country today. However,
many of our people, particularly the small and medium entrepreneurs could
not easily engage in agribusiness due to constraints in the establishment process.
This publication, the Protability Analysis, is a very laudable initiative by PCARRD-
DOST having put together a set of solutions addressing startup constraints.
Specically, this publication contains key technical and nancial information
necessary to start, operate, and prot from a science and technology (S&T)-based
agribusiness enterprise.
I commend PCARRD for pursuing the development of this publication. This very
important contribution will denitely help boost entrepreneurship, especially in
the rural sector; create additional income and job opportunities; and promote then
production of high quality agribusiness products.
Cong. LUIS R. VILLAFUERTE
Chair, Committee on Aquaculture and Fisheries
Member, Committee on Science and Technology
Member, Committee on Agriculture
House of Representatives
M
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his year, the Philippine Council for Agriculture, Forestry and Natural Resources
Research and Development (PCARRD) offers a new technology publication that
promises to be fully utilizable and handy.
The Protability Analysis (PA) arose from our yearning to address your needs as
small and micro entrepreneurs, farmers and growers. More than just a handout,
this innovative package of information provides tools to help you gain and secure
a niche in your business enterprise.
The PA series is based on our study of selected commodities. Here you will nd the
technical and nancial data you will need to put up an agricultural enterprise. It
presents analytical tools you can use in project planning and in predicting how
the business would operate under a set of assumptions. Thus, it ensures that your
projects are technically and economically feasible for implementation. Through
the protability analysis and other information, we at PCARRD, hope to contribute
substantially in providing livelihood options for Filipinos, especially those in rural
communities.
Specically, this PA contains the projected income statement and cash ow for a
25-doe-level goat enterprise. Also, it contains the standard production system and
information on stocks, management and breeding practices, feeds, and nutrition.
Feel free to use the information in these pages. Contact us for any further
information you may need or better yet, for any suggestions on how we can make
this publication better. Together, we can improve the production system for goat
and seal its importance in our national economy.
PATRICIO S. FAYLON
Executive Director
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Message from Secretary Estrella F. Alabastro iii
Message from Congressman Luis R. Villafuerte iv
Foreword v
Introduction 1
Package of Technology 21
Protability Analysis
Projected income statement, goat production, 25-doe level 3
Projected cash ow, goat production, 25-doe level (30% equity, 70% loan) 3
Technical assumptions 5
Financial assumptions 5
Initial investment and working capital, 2006 7
Working capital of 25-doe level, 2006 7
Depreciation table (Straight Line Method) 7
Amortization table 7
Herd projection 9
Monthly cost and return, Year 1 11
Monthly cost and return, Year 2 13
Monthly cost and return, Year 3 15
Monthly cost and return, Year 4 17
Monthly cost and return, Year 5 19
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oats, popularly known as poor mans cow, are commonly raised
by small-scale farmers in the Philippines. With its relatively
smaller built compared with large ruminants, goats are easier to raise
and require a small initial investment. These help easily integrate
goat production with existing crop-based farming systems.
Raising goats may contribute additional income to rural farmers
since it provides meat and milk. It is also a source of organic
fertilizer for crops through its manure, hence contributing to soil
improvement. With the increasing demand and limited supply of
goat, particularly in Luzon, raising goats is an attractive investment
for small entrepreneurs.
A 25-doe-level goat production only
requires a small investment of about
P134,000, hence entails a relatively
small risk. Within 4 months of
operation, inow of cash can already
be realized. In a span of 3 years, the
farmer can recover his initial capital
investment.
The additional value added in investing in goat farming is about
P90,679.10 at 19% discount rate. Estimated Internal Rate of Return
(IRR) may be as high as 37% for a 5-year projected cash ow.
Initial Capital P133,936
Net Present Value (based
on a 5-year cash ow
projection at 19% discount rate) P90,679.77
Internal Rate of Return (based
on a 5-year cash ow projection) 37%
Payback Period 3 years
2 Profitability Analysis of 25-doe-level Goat Production
Year 1 Year 2 Year 3 Year 4 Year 5
Income from Sales of Fattener 15,000 75,000 63,075 75,000 60,000
Income from Sales of Replacement 16,000 80,000 92,920 80,000 64,000
Income from Sales of Culled Does 0 15,000 15,000 15,000 75,000
Income from Sales of Culled Buck 0 0 0 0 7,500
Income from Buck Servce 7,200 10,800 7,200 10,800 7,200
Gross Sales 38,200 180,800 178,195 180,800 213,700
Less: Production Cost
- Labor 30,195 31,578.94 30,195 30,195 30,195
- Concentrate 6,000 6,750 6,000 6,750 6,300
- Veterinary Drug and Supply 2,750 1,500 1,500 1,500 1,500
- UMMB - Feed Supplement 3,656 3,778 3,656 3,656 3,656
Total Production Cost 42,601 43,607 41,351 42,101 41,651
Gross Income from Sales (4,401) 137,193 136,844 138,699 172,049
Less: Overhead Expenses
- Utilities (Water and Electricity) 2,000 2,000 2,000 2,000 2,000
- Transportation 1,440 1,440 1,440 1,440 1,440
- Repair of Facilities (10% of
depreciating assets) 1,960 1,960 1,960 1,960 1,960
- Forage and Pasture
Maintenance 0 8,000 8,000 8,000 8,000
- Land Rent 13,800 13,800 13,800 13,800 13,800
- Depreciation 2,300 2,300 2,300 2,300 2,300
Total Overhead Expenses 21,500 29,500 29,500 29,500 29,500
Net prot (before amortization) (25,901) 107,693 107,344 109,199 142,549
Less: Interest and Service Fee 17,814 15,223 12,219 8,733 4,690
Net Prot (before tax) (43,715) 92,470 95,125 100,466 137,859
Inventory Adjustments
Beginning Inventory 0 155,000 120,000 80,000 120,000
Ending Inventory 155,000 120,000 80,000 120,000 0
Net Inventory 155,000 (35,000) (40,000) 40,000 (120,000)
Adjusted Net Prot 111,285 57,470 55,125 140,466 17,859
Projected income statement, goat production, 25-doe level. Projected cash ow, goat production, 25-doe level (30% equity, 70% loan).
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Before Financing:
Inows
Gross Income from Sales 0 38,200 180,800 178,195 180,800 213,700
Residual Value
Housing 6,500
Fence 1,600
Total Cash Inows (before nancing) 0 38,200 180,800 178,195 180,800 221,800
Outows
Capital Investment 133,936 0 10,000 10,000 10,000 0
Production Costs 42,601 43,607 41,351 42,101 41,651
Overhead Expenses (less:
Depreciation) 19,200 27,200 27,200 27,200 27,200
Total Outows (before nancing) 133,936 61,801 80,807 78,551 79,301 68,851
Net Cash Flow (before nancing ) (136,936) (23,601) 99,993 99,644 101,499 152,949
After Financing:
Inows
Loan Recevied 93,755
Total Cash Inows (after nancing) 93,755 38,200 180,800 178,195 180,800 221,800
Outows
Loan Amortization
- principal 13,633 15,814 18,344 21,280 24,684
- interest 15,001 12,820 10,289 7,354 3,949
- service fee 2,813 2,404 1,929 1,379 741
Total Outows (after nancing) 133,936 93,248 111,845 109,114 109,314 98,226
Net Cash Flow (after nancing ) (40,181) (55,048) 68,955 69,081 71,486 123,574
NPV (before nancing) 90,679.77
Payback (before nancing) 3 years
IRR (before nancing) 37%
Note: NPV. Payback, and IRR before nancing are the preferred indicators of protability.
Production system Semi-intensive
Stocks
Doe Native
Buck Purebreed
Buck to Doe Ratio 1:25
Buck productivity 100 services/year for 5 years
Carrying Capacity 15 animals/ha
Housing (sq.m.)
Doe 1.5/head
Buck 2.0/head
Growing 1.0/head
Land Area 2 ha for 25-doe level
Type of Housing and Fencing Materials Permanent/semipermanent
Male-to-Female Ratio 1:1
Conception Rate 80%
Kid Size 1.5
Kidding per Year 3 times in 2 years
Culling Rate 20%
Concentrate Consumption 100g/day per head x 180 days
Forage Consumption 5kg/day
Kinds of Forage Napier and Leguminous species
Mortality Rates (per year)
Matured 5%
Growing 10%
10%
Kid
Urea-molasses-mineral-block (UMMB) 65g/day per head for 3 months (dry season March-May)
Concentrate Feed 100g/day per head for 180 days
Technical assumptions. Financial assumptions.
Housing P500/head
Fence P6600 for 2 ha (Barb wire at 1,200/30kg)
Land Rent P6900/ha based on rent of rainfed rice land of 15 cavans/
year at 46kg/cavan at P10/kg
Cost of Stocks
Doe (native) P2000/head
Buck (Purebreed ) P30000/head
Buck Service P150/service
Labor P165/day at 183 days/year
Concentrate Feed P10/kg
Urea-molasses-mineral-block (UMMB) P20/kg
Veterinary Drug and Supply P50/head per year
Transportation 2 market trips per month at P60/trip
Forage and Pasture Development P10000/ha
Forage and Pasture Maintenance P4000/ha
Selling Price:
Fattener P2500/head
Replacement P4000/head
Culled Does P3000/head
Culled Buck P7500/head
Average Marketable Weight 25 kg (8 months minimum)
Life Span of Housing and Equipment, and Fencing 10 years
Rate Interest on Capital 16%
Source of Loan Quedancor at 16% interest and 3% service charge payable
in 5 years
Investment Cost* P133,936.25
70% Loan P93,755.38
30% Equity P40,180.88
Depreciation Method Straight line, salvage value = 0
NPV Discounting Rate 19%
Particulars Total Costs
Housing 13000
Fence 6600
Forage/Hedgerow Development 20000
Stock Doe 50000
Buck 30000
Pasture Maintenance 1000
Labor 7548.75
Concentrate 2430
Urea-molasses-mineral-block
(UMMB)
1822.5
Veterinary Supply 675
Light and Water 500
Transportation 360
Total 133936.25
*Working capital for 3 months
Initial investment and working capital*, 2006.
Particulars Price per Month For 3 Months Total per Year
Pasture Maintenance 333.333 1,000 4,000
Labor 2,516.25 7,548.75 30,195
Concentrate 810 2,430 9,720
Urea-molasses-mineral-
block (UMMB)
607.5 1,822.5 7,290
Veterinary Supply 225 675 2,700
Light and Water 166.666 500 2,000
Transportation 120 360 1,440
Working capital of 25-doe level, 2006.
Particulars Cost (P) Life Span
Year
1 2 3 4 5 6 7 8 9 10
Housing 13,000 10 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300
Fence 10,000 10 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Depreciation table (Straight Line Method).
Year
1 2 3 4 5 Totals
Balance 93,755 80,122.46 64,308.29 45,963.84 24,684.29 0.00
Rate 1.00 1.16 1.35 1.56 1.81 6.88
Principal 13,632.91 15,814.18 18,344.45 21,279.56 24,684.29 93,755.38
Interest (16%) 15,000.86 12,819.59 10,289.33 7,354.21 3,949.49 49,413.48
Amortization 28,633.77 28,633.77 28,633.77 28,633.77 28,633.77 143,168.86
Service Charge (3%) 2,812.66 2,403.67 1,929.25 1,378.92 740.53
Total Amortization 31,446.43 31,037.45 30,563.02 30,012.69 29,374.30
Amortization table.
Activity Year 1 Year 2 Year 3 Year 4 Year 5
Initial Stock 25 30, born in Feb-April 30, born in February to April
Bred 25 Does January to March May to July January to March May to July January to March
Born (10% kid , 10% growing,
5% matured moratlity rates
June to August October to December June to August October to December June to August
30, born on June to August 30, born in October to December 30, born on June to August 30, born in October to December 30, born on June to August
Sold December (born in June) January (born in July previous year) June (born October previous year) January (born in July previous year) June (born October previous year)
6 fattener 6 fattener 6 fattener 6 fattener 6 fattener
4 breeder 4 breeder 4 breeder 4 breeder 4 breeder
February (born in August
previous year)
July (born November
previous year)
February (born in August
previous year)
July (born November
previous year)
6 fattener 6 fattener 6 fattener 6 fattener
4 breeder 4 breeder 4 breeder 4 breeder
October (born in February) August (born December
previous year)
October (born in February) August (born December
previous year)
6 fattener 6 fattener 6 fattener 6 fattener
4 breeder 4 breeder 4 breeder 4 breeder
November (born March) December (born in June) November (born March) December (born in June)
6 fattener 6 fattener 6 fattener 6 fattener
4 breeder 4 breeder 4 breeder 4 breeder
December (born April) December, 5 culled does December (born April) 25 culled does (stock does)
6 fattener 6 fattener 1 breeding buck
4 breeder 4 breeder
May, 5 culled does May, 5 culled does
Bred 25 Does September to November (to be
born in February to April the
next year)
September to November (to be
born in February to April the
next year)
Beginning Inventory 25does 25 does 25 does 25 does
1 buck 1 buck 1 buck 1 buck
20, 45 months old 30, 02 months old 20, 45 months old 30, 02 months old
Ending Inventory 25 does 25 does 25 does 25 does 0
1 buck 1 buck 1 buck 1 buck
20, 45 months old 30, 02 months old 20, 45 months old 30, 02 months old
Herd projection.
Monthly cost and return, Year 1.
Year 1 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Income
Sales
Fattener 15,000 15,000
Replacement 16,000 16,000
Culled Does 0
Culled Buck 0
Buck Service 1,200 1200 1,200 1,200 1,200 1,200 7,200
Total Sales 0 0 0 1,200 1,200 1,200 1,200 1,200 0 0 0 32,200 38,200
Costs
Labor 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 30,195
Concentrate
25 Does 375 375 375 375 375 375 375 375 375 375 375 375 4,500
Kid 900 600 1,500
Vet Supply
25 Does 1,250 1,250
Kid 500 500 500 1,500
UMMB 1,218.75 1,218.75 1,218.75 3,656.25
Light and Water 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000
Transportation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Repair and Maintenance
Housing 1,960
Forage and Pasture 0
Land Rent 13800 13,800
Amortization
Principal 13,632.91 13,632.911
Interest 15,000.86 15,000.86
Service Charge 2,812.66 2,812.661
Total Costs before Amortization 61,801.25
Year 2 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Income
Sales
Fattener 15,000 15,000 15,000 15,000 15,000 75,000
Replacement 16,000 16,000 16,000 16,000 16,000 80,000
Culled Does 15,000 15,000
Culled Buck
Buck Service 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 10,800
Total sales 32,200 32,200 1,200 1,200 15,000 0 0 1,200 1,200 32,200 32,200 32,200 180,800
Costs
Labor 2,516.25 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 2,642.06 31,578.94
Concentrate
25 Does 375 375 375 375 375 375 375 375 375 375 375 375 4,500.00
Kid 300 150 150 300 450 450 300 150 2,250.00
Vet Supply
25 Does 0.00
Kid 500 500 500 1,500.00
UMMB 1,218.75 1,279.69 1,279.69 3,778.13
Replacement Doe 10,000.00 10,000.00
Light and Water 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 2,000.00
Transportation 120 120 120 120 120 120 120 120 120 120 120 120 1,440.00
Repair and Maintenance
Housing 1,960.00
Forage and Pasture 8,000.00
Land Rent 13800 13,800.00
Amortization
Principal 15,814.18 15,814.18
Interest 12,819.59 12,819.59
Service Charge 2,403.67 2,403.67
Total Costs before Amortization 80,807.06
Monthly cost and return, Year 2.
Year 3 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Income
Sales
Fattener 15,000 15,000 16,537.5 16,537.5 63,075
Replacement 16,000 24,000 26,460 26,460 92,920
Culled Does 15,000 15,000
Culled Buck
Buck Service 1,200 1,200 1,200 1,200 1,200 1,200 7,200
Total Sales 0 0 0 1,200 1,200 32,200 40,200 44,197.5 0 0 0 59,197.5 178,195
Costs
Labor 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 30,195
Concentrate
25 Does 375 375 375 375 375 375 375 375 375 375 375 375 4,500
Kid 900 600 1,500
Vet Supply
25 Does 0
Kid 500 500 500 1500
UMMB 1,218.75 1,218.75 1,218.75 3656.25
Replacement Doe 10,000 10,000
Light and Water 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000
Transportation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Repair and Maintenance
Housing 1,960
Forage and Pasture 8,000
Land Rent 13,800 13,800
Amortization
Principal 18,344.45 18,344.445
Interest 10,289.33 10,289.325
Service Charge 1,929.25 1,929.248
Total Costs before Amortization 78,551.25
Monthly cost and return, Year 3.
Year 4 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Income
Sales
Fattener 15,000 15,000 15,000 15,000 15,000 75,000
Replacement 16,000 16,000 16,000 16,000 16,000 80,000
Culled Does 15,000 15,000
Culled Buck
Buck Service 1,200 1,200 1,200 1,200 1,200 1,200 1200 1,200 1,200 10,800
Total Sales 32,200 32,200 1,200 1,200 15,000 0 0 1,200 1,200 32200 32,200 32,200 180,800
Costs
Labor 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 30,195.00
Concentrate
25 Does 375 375 375 375 375 375 375 375 375 375 375 375 4,500.00
Kid 300 150 150 300 450 450 300 150 2,250.00
Vet Supply
25 Does 0.00
Kid 500 500 500 1,500.00
UMMB 1,218.75 1,218.75 1,218.75 3,656.25
Replacement Doe 10,000.00 10,000.00
Light and Water 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 166.666 2,000.00
Transportation 120 120 120 120 120 120 120 120 120 120 120 120 1,440.00
Repair and Maintenance
Housing 1,960.00
Forage and Pasture 8,000.00
Land Rent 13800 13,800.00
Amortization
Principal 21,279.56 21,279.56
Interest 7,354.21 7,354.21
Service Charge 1,378.92 1,378.92
Total Costs before Amortization 79,301.25
Monthly cost and return, Year 4.
Year 5 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Income
Sales
Fattener 15,000 15,000 15000 15,000 60,000
Replacement 16,000 16,000 16000 16,000 64,000
Culled Does 75,000 75,000
Culled Buck 7,500 7,500
Buck Service 1,200 1,200 1,200 1,200 1200 1,200 7,200
Total Sales 0 0 0 1,200 1,200 32,200 32,200 32200 0 0 0 114,700 213,700
Costs
Labor 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 2,516.25 30,195
Concentrate
25 Does 375.00 375 375 375 375 375 375 375 375 375 375 375 4,500
Kid 900 900 1,800
Vet Supply
25 Does 0
Kid 500 500 500 1,500
UMMB 1,218.75 1,218.75 1,218.75 3,656.25
Replacement Doe 0 0
Light and Water 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000
Transportation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Repair and Maintenace
Housing 1,960
Forage and Pasture 8,000
Land Rent 13800 13,800
Amortization
Principal 24,684.29 24,684.285
Interest 3,949.49 3,949.485
Service Charge 740.53 740.528
Total Costs before Amortization 68,851.25
Monthly cost and return, Year 5.
Profitability Analysis of 25-doe-level Goat Production 21
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Production System Full connement
Semi-intensive
Stocks
Doe Native (mature weight of 20 kg);
crossbreeds
Buck Purebreed (Anglo Nubian/Boer)
or 75% of either exotic breeds
Selection of
foundation Stocks Consider both the physical features
and the productive and reproductive
performance of the animals. If
performance data are available,
choose stocks based on the number
of offspring weaned per year per doe
exposed to buck, mortality, length
of production life for each sex, and
incidence of major defects
Get the foundation stocks from reliable
and reputable sources
Impose strict selection on breeder
bucks
Housing
Floor space area
Doe 1.5 m
2
/head
Buck 2.0 m
2
/head
Growing 1.0 m
2
/head
Type of housing Permanent/semipermanent; well-
ventilated, elevated, well-drained and
easy to clean
Materials Must be suitable to local conditions
and depend upon the availability of
the materials in the locality and the
nancial capability of the raisers
22 Profitability Analysis of 25-doe-level Goat Production
Management Practices
Breeding buck Starting at weaning (3 months), separate uncastrated buck
kids from the doe kids to avoid premature breeding
Provide higher energy ration and sizeable space for exercise
Trim hooves of buck carefully
Doe and newborn kids
Clip bucks hair and wash face with soap and water as a
sanitary measure to reduce odor and control lice
Groom the buck regularly and give an occasional bath
Allow nonpregnant females to run with the buck
Record breeding dates to prevent the doe from kidding
unexpectedly
Separate expectant females from the rest of the herd about
1 week prior to delivery. Keep these animals in a separate
paddock/pen for closer observation
With the signs of approaching kidding, place the doe in a
bedded dry stall (1 m x 1.5 m)
Check the doe at half-hour interval and give her every
chance to kid without assistance
As soon as the kid is born, wipe the body to dry immediately.
Remove any mucus that may be clogging the nose to enable
it to breathe freely. Tie a string around the umbilical cord
23 cm from the base of the navel. Cut the cord after the
knot and dip the navel in tincture of iodine. Place the kid in
a specially prepared kidding box and keep it out of draft. If
possible, place it under sunshine to dry off and strengthen
the kid
After kidding is over and the stall has been cleaned, offer
water to the doe. After a while, offer quality forage and
concentrate
Kids Ensure that the kid receives the rst milk or colostrum
If for any reason the kid cannot take colostrum, give the kid
a liberal dose (from a teaspoonful to a tablespoonful) of any
vegetable oil or a little milk with fresh egg white
Allow the kid to run with the doe for 35 days
Profitability Analysis of 25-doe-level Goat Production 23
Guard against wet bedding in kids pen. Change beddings of
kids two or three times daily
Protect kids from cold temperature by installing curtain
sacks along side the housing or place brooder boxes inside
the shed
Remove the horn buds when the kid is about 3 weeks old
using hot-iron cautery
Castrate 24-week-old buck kids not intended for breeding
Allow the kids to run with their mothers in a clean pasture or
freshly bedded pen after castration. Avoid exciting them in
any way
Weaner/Grower Separate buck weanlings from the breeding herd to prevent
doe weanlings from being bred too young
Allocate a separate paddock for weanlings or growers
Excess number of males can either be sold as breeders or
grown as slaughter animals
Observe and record the growth performance and health
condition of the animals
Practice culling whenever necessary
Allow the doelings, 810 months old, to run with the
breeding herd as these are now ready for breeding
Breeding Practices
Does Breed does for the rst time when these are about
8-month-old, well grown, in good health, and weigh not less
than 15 kg for native and 20 kg for crossbreeds
For maiden does, two services are recommended, although
one service can make a doe pregnant as goats are generally
prolic. When hand mating is being practiced, breed the doe
upon observation of heat and repeat 12 hours after. Does
with estrous period lasting for 3 days may be bred on the
third day
Rebreed does that return to heat in about 21 days. Failure
of the does to conceive after breeding with proven buck for
two cycles can be a good reason for culling them from the
herd
24 Profitability Analysis of 25-doe-level Goat Production
Bucks A buck must be at least 1 year old at rst breeding
In controlled mating/hand mating, do not use a mature buck
in more than four services weekly
In unrestricted breeding, the breeding load should be one
buck for every 25 does or less depending on the size, terrain,
and vegetation of the pasture
Nutrition/Feeds
and Feeding
Nutrients Provide ample amounts of water, carbohydrates, proteins,
fats, minerals, and vitamins
Classes of feeds Roughages: cheapest sources of nutrients that include
grasses, legumes, crop by-products, and tree/shrub leaves
Concentrates: feeds low in ber and high in energy content,
e.g., rice bran, corn bran, copra meal, cane molasses, etc.
Practical feeding Provide goats with unlimited access to fresh grass and
legume. Give 23 kg of fresh leaves of trees and shrubs such
as ipil-ipil, kakawate, emingia, sesbania, desmanthus,
rensonii, among others
Provide the animals additional sources of protein, energy,
and other nutrients, e.g., UMMB, when lower quality
roughages like native pasture grasses and mature improved
grasses and legumes are part of the diet
Supplement with concentrate at 30% of the dry matter
intake to further improve performance
When available and accessible, agro-industrial by-products
like brewers spent grains, pineapple pulps, molasses, and
banana rejects are good basal feeds for productive goats
Feeding guides Please see the Philippines Recommends for Goat Farming
page 62, Table 12
Herd Health Management
Suggested pointers When buying or selecting your breeder stocks, examine
the animals for the presence of supercial lumps/abscesses
by running your hands on the neck, abdominal, and pelvic
Profitability Analysis of 25-doe-level Goat Production 25
regions. The presence of lumps/abscesses indicates caseous
lymphadenitis and there is a high possibility that these
could infect the herd. Also check for the presence of wartlike
lesions in the mouth
Provide good housing. It should be elevated, ladderized, and
can be cleaned easily
Deworm newly bought animals with an effective dewormer
(e.g., Vermisantel, Ivermectin, Levamisole) upon arrival in the
farm and isolate these for 30 days
Deworm animals when signs (diarrhea, loss of weight,
rufed hair coat, pot bellied, etc.) of parasitism is observed.
For pregnant does, deworming is done 34 weeks prior to
expected kidding
Provide rehydration uids (oresol) to sick and weak animals
In regions where foot and mouth disease (FMD) is prevalent,
vaccinate the animals with FMD vaccine. Likewise, if
hemosep vaccine is available, vaccinate them as well
Check for the presence of lice. A practical way to do this is
to observe the haircoat of the animals. If haircoat is always
rufed and the animals are always scratching their body
using their head, horns, or against the wall, it could mean
that they have lice. Delouse the animals with an effective
insecticide (e.g., asuntol, ivomec, and neguvon powder, and
follow the instruction for application)
Marketing
Marketing Tips Know the prevailing market price
Sell during periods when prices are most favorable or when
the demand is high
Organize and plan your marketing strategy to do away with
unscrupulous traders
Raise only good-quality animals (e.g., upgraded) to gain
higher prots. Upgraded animals have bigger body
conformation and grow faster than native animals; hence,
turnover of capital is faster
26 Profitability Analysis of 25-doe-level Goat Production
Castrate male kids that are intended for slaughter
Dispose all marketable animals readily. There is no
advantage in keeping disposable animals; these will just add
up to your expenses
Do not market diseased and pregnant animals
Know the buyers preference in terms of weight, sex, breed,
and age
If possible, sell animals based on weight rather than on a per
head basis
Possible Loan Sources QUEDANCOR Program for Agri-Fishery SME (QP-ASME)
16% interest rate with 3% service fee
The borrower must have equity equivalent to 20% of the
project cost. The borrowers equity can be in the form of
agri-shery machinery and equipment, inputs, or labor.
Collateral Requirements:
1. At least 80% Real Estate Mortgage (REM) or 80%
combination of REM, non-interest bearing cash trust
fund, bank/time deposits,
LandBank/government bonds/securities and similar
investments
2. Deed of Assignment of Receivables supported
by a Marketing Contract/Agreement, if
applicable

LANDBANK Easy Pondong Pang-Asenso (EPPA)
Interest rate is based on the prevailing market rate
Up to 80% of the total project cost; borrower has to put up
the remaining 20% as equity, either in cash or in kind
Collateral Requirements:
1. Real Estate/Chattel Mortgage (REM/CM)
2. Hold out on deposits
3. Assignment of receivables and/or inventories
4. JSS Principal Stockholders/Ofcers
5. Guarantee cover from Small Business Guarantee and
Finance Corporation (SB Corporation), if applicable
Credits
Production: PCARRD Secretariat with the support of the livestock research, planning and
development, socio-economics research, and the applied communication divisions
Content Analysts: Elaine F. Lanting and Edwin C. Villar
Investment Analysts: Marilyn M. Elauria with Don Joseph M. Medrana
and Don Thed J. Ramirez
Editor: Joel Eneristo A. Joven
Layout and Design: Paul Jersey G. Leron
Photo Credits: Eric E. Perez and Ana Marie P. Alo
Production Assistant: Carmelita B. Alamban
Special thanks to: Patricio S. Faylon, Leah J. Buendia, Albert P. Aquino,
and Lily Ann D. Lando
ISO 9001:2000