Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Philippine Council for Agriculture, Aquatic and Natural Resources Research and DevelopmentDepartment of Science and Technology
Providing science solutions for the agriculture, aquatic and natural resources sectors
Profitability Analysis:
25-Doe Level Slaughter Goat Production
Profitability Analysis No. 13/2013
The Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) is one of the sectoral councils under the Department of Science and Technology (DOST). PCAARRD was established on June 22, 2011 through the consolidation of
the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD) and the Philippine Council for Aquatic and Marine Research and Development (PCAMRD). The Council formulates policies, plans, and programs for science and technology-based research and development in the different sectors under its concern. It coordinates, evaluates, and monitors the national research and development (R&D) efforts in the agriculture, aquatic, and natural resources (AANR) sectors. It also allocates government and external funds for R&D and generates resources to support its program.
PCAARRD 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.
It also supports the National Agriculture, Aquatic and Resources Research and Development Network (NAARRDN) composed of national multi- and single-commodity and regional R&D centers, cooperating stations, and specialized agencies.
As such PCAARRD has been a potent arm in catalyzing the Philippine AANR sectors toward self-sufficiency and global competitiveness.
MAILING ADDRESS PHILIPPINE COUNCIL FOR AGRICULTURE, AQUATIC AND NATURAL RESOURCES RESEARCH AND DEVELOPMENT Los Baños, LagunaTELEPHONES Los Baños - (63) (049) 536-0014; 1956; 2305; 2330; 2383; 5907FAX Los Baños - (63) (049) 536-0016/536-7922 Manila - (63) (02) 837-1651E-MAIL [email protected] http://www.pcaarrd.dost.gov.ph
About PCAARRD
Profitability Analysis:
25-Doe Level Slaughter Goat Production
Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD)
Department of Science and Technology (DOST)
Los Baños, Laguna2013
Profitability Analysis No. 13/2013
iii
First Edition 2012Second Edition 2013
ISSN 1908-8043
Bibliographic Citation:Philippine Council for Agriculture, Aquatic and Natural Resources Research and
Development. Profitability analysis: 25-doe level slaughter goat production. Los Baños, Laguna: PCAARRD-DOST, 2013. 37p. –(Profitability Analysis No. 13/2013: Reprint)
The Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) offers this handy but useful technology publication, the Profitability Analysis
(PA). This publication 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 find the technical and financial 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 profitability analysis and other information, we at PCAARRD, hope to contribute substantially in providing livelihood options for Filipinos, especially those in rural communities.
Also, it contains the standard production system and information on stocks, management and breeding practices, feeds, nutrition, and marketing.
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 slaughter goat and seal its importance in our national economy.
PATRICIO S. FAYLONExecutive DirectorPCAARRD
Fore
wor
d
Foreword iii
Introduction 1
Technical and financial assumptions 1Goat herd projections 1Investment costs 8Projected income statement and cash flow 10Sensitivity analysis 13Market 14Value adding activities 14
Package of Technology 16Production system 16Stocks 16Housing 17Management practices for breeding bucks 19Care of the doe and newborn kids 20Care of the kids 22Care of the weaner/grower 23Breeding practices for the does 25Breeding practices for the bucks 26Practical feeding 27Suggested pointers on herd health management 29Marketing tips 31Possible loan sources 33
Appendices 35
Cont
ents
Intr
oduc
tion
Slaughter goat production in the Philippines is considered a sunrise industry, dominated by backyard goat raisers. Demand for goat meat
has been increasing over the years despite being one of the highest priced meats in the retail market. Hence, a few commercial goat raisers have started to emerge over the years because of the low investment requirement and high rate of return. This publication assesses the profitability of a 25-doe level farm. The analysis shows that the venture will yield a Net Present Value (NPV) of P196,707 and an Internal Rate of Return (IRR) of 38.52%. This is a very good return for the P263,868 total investment which can be recovered over a period of three years (Table 1).
Technical and Financial Assumptions
The technical assumptions used were based on field experiments and industry practices, which used the PCAARRD-developed technology on slaughter goat production (Table 2). It is important to note that the basket of technological options (BOTO) on
slaughter goat production led to a significant reduction in mortality and increase in market weight. The costs used for the financial analysis are based on 2011 prices (Table 3).
Goat Herd Projections
To estimate the revenues and costs for a 25-doe level slaughter goat farm, the herd structure was projected for five years. The projection includes the
Table 1. Financial analysis (before financing).
Investment Requirement P263,868
Net Present Value (NPV) P196,707
Internal Rate of Return (IRR) 38.52%
Payback Period 3 years
2 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 3
number of fatteners, breeder does, and breeder bucks every month (Table 4). It was assumed that not all 25 does will be purchased in the first month of operation. Instead, five does will be purchased every month until the 25-doe level is reached. This is consistent with the industry practice. Culled does will be replaced by better quality does produced by the farm. To prevent inbreeding, the buck will be swapped with bucks from other farms. In some instances, the buck will be sold and the proceeds will be used to buy a replacement buck.
Table 2. Technical assumptions.
Parameter Assumption
Production system Full Confinement
Stocks
Doe Upgraded
Buck Purebred Boer
Buck-to-doe ratio 1:25
Male-to-female ratio 1:1
Land area for pasture (ha for 25-doe level) 0.5
Number of laborers per 50-doe level 1
Number of days of labor per year 183
Housing (m2 per head)
Doe 1.5
Buck 2
Fattener 1
Type of housing Semipermanent
Useful life of housing (in years) 5
Conception rate
First two months of breeding 90%
Succeeding breedings 95%
Kidding size
First kidding 1.5
Succeeding kiddings 1.75
Parameter Assumption
Kidding per year 1.5
Culling rate 20%
Mortality rate
Matured
First year 5%
Succeeding years 3%
Growing
First batch 7%
Succeeding batches 5%
Kid
First batch 10%
Succeeding batches 7%
Forage consumption (kg/day) 5
Kinds of forage Napier and Legumes
Concentrate feeds consumption
Kid (g/head/day for 60 days) 20
Growing (g/head/day for 150 days) 50
Breeder doe (g/head/day for 60 days per year) 200
Breeder buck (g/head/day for 60 days per year) 250
Urea molasses mineral block (UMMB) consumption (g/head/day for March and April)
Breeder does and bucks 65
Average liveweight at marketing (kg)
Fattener
Year 2 25
Year 3 27
Succeeding years 30
Culled breeder doe 35
Culled breeder buck 50
4 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 5
Table 3. Financial assumptions.
Items Amount (P)
Farm establishment costs
Cost of permits and registration of business 10,000
Cost of one purebreed boer buck 20,000
Cost of one upgraded doe 3,000
Cost per m2 of housing 200
Cost per ha of fencing 20,000
Cost of pasture establishment per ha 5,000
Direct production costs
Cost of concentrate feeds per kg 17
Cost of UMMB per kg 20
Cost of veterinary drugs and supplies/animal per month:
Kid 5
Growing 7
Breeder doe 15
Breeder buck 7
Labor cost/day 200
Cost of pasture maintenance/ha per year 1,000
Overhead costs
Land rent/year (based on the net income from a hectare rainfed rice farm)
15,000
Transportation cost to the market per animal 50
Cost of electricity/month 75
Maintenance cost of housing/m2 per year 25
Selling price/kg liveweight
Fattener 150
Culled breeder does and buck 120
Items Amount (P)
Taxes, inflation, and cost of capital
Depreciation method Straight line
Tax rate 20.00%
Cost of debt 14.00%
Cost of equity 18.00%
Weighted average cost of capital (WACC) 15.55%
Inflation rate 4.10%
Table 4. Goat herd projections (Years 1–5).Year 1
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Fatteners
Kid (0–3 months) 0 0 0 0 0 0 4 10 16 18 18 14
Growing (3–8 months) 0 0 0 0 0 0 0 0 0 3 8 13
Mature (8 months up) - For selling 0 0 0 0 0 0 0 0 0 0 0 0
Does (breeder)
Productive does 5 10 15 20 25 25 25 25 25 25 25 25
Culled does 0 0 0 0 0 0 0 0 1 1 1 1
Buck (breeder):
Productive buck 1 1 1 1 1 1 1 1 1 1 1 1
Culled buck 0 0 0 0 0 0 0 0 0 0 0 0
Total 6 11 16 21 26 26 30 36 43 48 53 54
6 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 7
Year 2
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Fatteners
Kid (0–3 months) 8 2 4 12 20 23 23 19 11 3 4 13
Growing (3–8 months) 18 23 22 18 13 12 14 19 25 32 32 26
Mature (8 months up) - For selling 0 0 1 3 3 3 3 2 0 0 3 5
Does (breeder)
Productive does 25 25 25 25 25 25 25 25 25 25 25 25
Culled does 1 0 0 0 1 1 1 1 1 0 0 0
Buck (breeder)
Productive buck 1 1 1 1 1 1 1 1 1 1 1 1
Culled buck 0 0 0 0 0 0 0 0 0 0 0 0
Total 53 51 53 59 63 65 67 67 63 61 65 70
Year 3
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Fatteners
Kid (0–3 months) 22 26 26 22 13 4 4 11 18 21 21 17
Growing (3–8 months) 19 17 19 24 32 41 40 32 23 17 14 16
Mature (8 months up) - for selling 7 7 7 4 1 0 4 7 7 7 7 2
Does (breeder)
Productive does 25 25 25 25 25 25 25 25 25 25 25 25
Culled does 0 0 0 0 0 0 0 0 1 1 1 1
Buck (breeder)
Productive buck 1 1 1 1 1 1 1 1 1 1 1 1
Culled buck 0 0 0 0 0 0 0 0 0 0 0 0
Total 74 76 78 76 72 71 74 76 75 72 69 62
Year 4
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Fatteners
Kid (0–3 months) 10 3 4 13 22 26 26 22 13 4 4 13
Growing (3–8 months) 21 27 28 23 17 16 19 24 32 41 40 32
Mature (8 months up) - For selling 0 0 2 5 5 5 5 3 0 0 4 7
Does (breeder)
Productive does 25 25 25 25 25 25 25 25 25 25 25 25
Culled does 1 0 0 0 1 1 1 1 1 0 0 0
Buck (breeder)
Productive buck 1 1 1 1 1 1 1 1 1 1 1 1
Culled buck 0 0 0 0 0 0 0 0 0 0 0 0
Total 58 56 60 67 71 74 77 76 72 71 74 78
Year 5
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Fatteners
Kid (0–3 months) 22 26 26 22 13 4 4 12 20 23 23 19
Growing (3–8 months) 23 19 18 22 29 37 36 29 21 17 16 19
Mature (8 months up) - For selling 9 9 9 5 1 0 3 6 6 6 6 2
Does (breeder)
Productive does 25 25 25 25 25 25 25 25 25 25 25 25
Culled does 0 0 0 0 0 0 0 0 1 1 1 1
Buck (breeder)
Productive buck 1 1 1 1 1 1 1 1 1 1 1 0
Culled buck 0 0 0 0 0 0 0 0 0 0 0 1
Total 80 80 79 75 69 67 69 73 74 73 72 67
8 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 9
Investment CostsThe investment requirement is composed of capital expenditures, working capital, and development costs (Table 5). Capital expenditures are items that provide benefit to the enterprise for a period greater than one year. Hence, depreciation costs for these items are charged in the income statement. Working capital, on the other hand, transforms from one form to another. It starts as cash used for purchasing inventory that will produce marketable fatteners. These fatteners, when sold, transforms into cash again. The length of this cycle is called the cash conversion cycle. For the 25-doe level farm, a 2-month cash conversion cycle is used in determining the amount of working capital needed to sustain the business.
Finally, development costs include the pre-operating expenses and all other expenses in the first 14 months when revenue is not yet realized. To finance the total investment costs, proceeds from a loan will be used to purchase the breeder does and buck (Table 6). The loan is payable in 5 years with an interest rate of 14% per annum (Table 7). The rest of the investment is assumed to be financed by the owner.
Table 5. Total investment costs (P).Capital expenditures
Housing 17,100.00
Fencing 20,000.00
Stocks:
Does 75,000.00
Buck 20,000.00
Pasture development 2,500.00
Working capital (based on an 2-month cash conversion cycle)
Labor 6,100.00
Concentrate feeds 2,021.30
Veterinary drugs and supplies 1,124.00
UMMB 2,028.00
Forage and pasture maintenance 166.67
Transportation 350.00
Housing maintenance 356.25
Land rent 1,271.38
Utilities 150.00
Contingencies 330.71
Development expenses
Permits and registrations 10,000.00
Herd development (first 14 months of operation) 105,369.71
Total investment 263,868.02
Table 6. Financing structure (P).Source of financing
Equity 168,868.02
Debt 95,000.00
Total 263,868.02
Table 7. Loan amortization schedule (P).
Year Beginning of Year Balance
End of Year Balance Principal Interest Annual
Payment
1 95,000.00 80,628.06 14,371.94 13,300.00 27,671.942 80,628.06 64,244.05 16,384.01 11,287.93 27,671.943 64,244.05 45,566.29 18,677.77 8,994.17 27,671.944 45,566.29 24,273.63 21,292.66 6,379.28 27,671.945 24,273.63 - 24,273.63 3,398.31 27,671.94
Total 95,000.01 43,359.69 138,359.70
10 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 11
Projected Income Statement and Cash FlowThe revenues and costs of operating a 25-doe level slaughter goat farm were projected for five years. Prices were assumed to increase at an annual inflation rate of 4.1%. Year 1 of operation shows a net operating loss which could be used to offset future tax payments as provided for in the National Internal Revenue Code. Hence, a negative tax payment (or tax benefit) was recorded. The average Return on Investment (ROI) for the five-year period is 27.24% (Table 8). To complement the income statement, projected cash flows were also estimated. Unlike the income statement, it emphasizes the magnitude and timing of cash received and paid by the enterprise. It does not include non-cash items such as depreciation. The financial viability indicators used are NPV, IRR, and the payback period. As a rule of thumb, an investment creates value to the investor when NPV is greater than zero and the IRR is greater than the Weighted Average Cost of Capital (WACC).
The financial analysis (before financing) on the 25-doe level farm shows that the venture is acceptable. It translates to an NPV of P196,707 and an IRR of 38.52%. The investment costs could be recovered in 3 years (Table 9). The analysis also reported the financial indicators after financing. The cost of equity was used to discount the cash flows after financing.
Table 8. Projected income statement, Years 1–5 (P).
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues
Sale of fattener - 89,786.25 263,334.48 182,754.13 327,647.70
Sale of culled does 16,800.00 26,233.20 18,205.84 28,428.42 19,729.32
Sale of culled buck - - - - 7,046.19
Total revenues 16,800.00 116,019.45 281,540.32 211,182.55 354,423.21
Less: Direct Production Costs
Labor 36,600.00 38,100.60 39,662.72 41,288.90 42,981.74
Year 1 Year 2 Year 3 Year 4 Year 5
Concentrate feeds 5,661.00 13,322.30 15,438.12 16,473.82 16,537.34
Veterinary drugs and supplies
4,402.00 7,361.95 8,308.58 8,600.73 8,982.71
UMMB 2,028.00 2,111.15 2,197.71 2,287.81 2,335.81
Forage and pasture maintenance
1,000.00 1,041.00 1,083.68 1,128.11 1,174.36
Total direct production costs
49,691.00 61,937.00 66,690.81 69,779.36 72,011.97
Gross Profit (32,891.00) 54,082.45 214,849.51 141,403.19 282,411.24
Less: Overhead costs
Transportation 200.00 1,457.40 2,763.39 3,215.12 2,055.14
Housing maintenance
2,137.50 2,225.14 2,316.37 2,411.34 2,510.20
Land rent 7,628.25 7,941.01 8,266.59 8,605.52 8,958.35
Utilities (water and electricity)
900.00 936.90 975.31 1,015.30 1,056.93
Depreciation 26,920.00 26,920.00 26,920.00 26,920.00 26,920.00
Contingencies (5% of overhead costs)
1,889.29 2,029.21 2,174.72 2,280.80 2,309.73
Total overhead costs 39,675.04 41,509.65 43,416.37 44,448.08 43,810.34
Operating Profit (72,566.04) 12,572.79 171,433.14 96,955.11 238,600.89
Less: Interest 13,300.00 11,287.93 8,994.17 6,379.28 3,398.31
Taxable profit (85,866.04) 1,284.87 162,438.97 90,575.83 235,202.59
Less: Tax (17,173.21)* 256.97 32,487.79 18,115.17 47,040.52
Net Profit (68,692.83) 1,027.89 129,951.18 72,460.66 188,162.07
Average ROI 27.24%
* Tax loss carry-forward due to net operating loss.
12 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 13
Table 9. Projected Cash Flow, Years 0 – 5 (P).
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash Inflow
Revenue
Fatteners - 89,786.25 263,334.48 182,754.13 327,647.70
Culled does 16,800.00 26,233.20 18,205.84 28,428.42 19,729.32
Culled buck - - - - 7,046.19
Residual value
Fatteners 49,649.33
Breeder does 128,363.91
Working capital 13,898.31
Total cash inflow - 16,800.00 116,019.45 281,540.32 211,182.55 546,334.76
Cash outflow
Capital expenditures 134,600.00
Working capital 13,898.31
Permits and registration
10,000.00
Replacement does 18,000.00
Production costs 49,691.00 61,937.00 66,690.81 69,779.36 72,011.97
Overhead costs (less depreciation)
12,755.04 14,589.65 16,496.37 17,528.08 16,890.34
Taxes (17,173.21) 256.97 32,487.79 18,115.17 47,040.52
Total cash outflow 158,498.31 63,272.83 76,783.63 115,674.98 105,422.61 135,942.83
Net cash flow (before financing)
(158,498.31) (46,472.83) 39,235.82 165,865.34 105,759.94 410,391.92
Less: Interest 13,300.00 11,287.93 8,994.17 6,379.28 3,398.31
Principal amortization (95,000.00) 14,371.94 16,384.01 18,677.77 21,292.66 24,273.63
Net cash flow (after financing)
(63,498.31) (74,144.77) 11,563.88 138,193.41 78,088.01 382,719.99
Before Financing After Financing
Net Present Value (NPV) P196,706.57 P173,648.28
Internal Rate of Return (IRR) 38.52% 49.62%
Payback Period 3 years 2.9 years
Sensitivity AnalysisA sensitivity analysis shows the effects of unfavourable scenarios on the financial viability of the enterprise. Most investors are interested to know what events will make the enterprise not feasible. The analysis shows that the enterprise will no longer be financially viable if market weight drops by 36%, mortality increases by three marketable goats per month, market price decreases by 37%, and production cost increases by 112%.
Table 10. Sensitivity analysis.NPV IRR Payback Period
Base Scenario P 196,707 38.52% 3 years
Scenario 1 – Weight at market age decreased by 36%
P 0 15.55% 4.3 years
Scenario 2 – Three marketable goats die every month
(P 31,913) 11.24% 4.5 years
Scenario 3 – Market price per kg of live goat decreased by 37%
(P 4,607) 14.98% 4.3 years
Scenario 4 – Direct production cost increased by 112%
P 0 16.12% 4.4 years
14 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 15
MarketGoat meat or chevon used to be consumed only during special occasions. However, increasing consumers’ awareness on its health benefits has expanded the chevon market. Goat meat is now available in some supermarkets, grocery stores, wet markets, and meat shops in the country. Restaurants and small roadside canteens (carinderias) are big buyers of goat meat. Countries such as Saudi Arabia and U.A.E are potential export market, due to their religious customs, which makes goat meat preferable to pork.
Value Adding ActivitiesThis publication focused only on the production of live goats for meat purposes. However, live goats may be processed to further create value. These value-adding activities include slaughtering, vacuum-packing, cooking, and canning. Table 11 shows how a simple process of slaughtering will create more income to the farmer. The farmer may also opt to vacuum-pack the goat carcass to further increase its value. There are also allied enterprises that can be created from a slaughter goat farm. For example, the farm may provide buck services to nearby goat farms. There are also markets for goat manure, forage, and UMMB.
Table 11. Additional value from slaughtering one mature goat.Weight (kg) Price (P/kg) Total
Revenue from Selling:
Prime cuts (e.g., breast, loin, foreshank, etc.) 19.5 270.00 5,265.00
Head and feet 4.7 220.00 1,026.30
Internal organs 4.0 150.00 599.85
Total revenue 6,891.15
Less: Direct Costs
Cost of live animal for slaughter 4,500.00
Cost of slaughtering 300.00
Total cost 4,800.00
Value added from Slaughtering 2,091.15
16 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 17
Production System • Complete confinement is recommended wherein goats are fully confined in a good pen if not throughout the year, at least throughout the rainy season. In this system goats are also stall-fed with cut- and-carry forages.
StocksDoe • Use upgraded Anglo Nubian does.Buck • Use purebred Boer bucks.
Selection of Foundation Stocks • Breeders should be in good health with no physical deformities.
• In choosing the stocks, consider not just the physical features but also the productive and reproductive performance of the animals. Ifperformance data are available, choose does that have produced not less than 1.5 kids per kidding without any major physical defects.
• Get foundation stocks from reliable and reputable sources (See Appendix 1 for the list)
Pack
age
of T
echn
olog
y
HousingFloor Space Area
Buck • Provide not less than 2 m2 of space per buck.Doe • Provide not less than 1.5 m2 of space per doe.Young Stocks (up to 1 year old)
• Allocate at least 1 m2 per animal.
Type of Housing • Construct a semi-permanent pen with GI roofing, locally available materials such as bamboo or coco-wood for walls and hard wood for posts.
• Ensure an elevation of at least 1.5 m to allow proper ventilation and ease in cleaning the area underneath.
• The area underneath must at least be compacted earth to prevent mud from forming when urine drains from the floor above.
Big upgraded Anglo Nubian does can be used with purebred Boer bucks.
18 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 19
Management Practices for Breeding Bucks
• Starting from 3 months, keep uncastrated male kids and female kids in separate rooms to avoid premature breeding.
• Examine their hooves at least once a month to detect hooves that need trimming. Hoof trimming ensures not only a normal gait and efficient walking but also prevents increased risk of hoof rot and deformities. Trim hooves carefully.
• Clip buck’s hair and wash face with soap and water to reduce odor and control lice.
• Groom the buck regularly and bathe occasionally to remove too much dirt.
• Record breeding dates to prevent the doe from kidding unexpectedly.
A good pen is well-ventilated with compacted earth underneath Careful trimming of hooves can prevent hoof rot.
20 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 21
Care for the Doe and Newborn Kids
• Separate expectant does from the rest of the herd about 1 week prior to delivery. Keep them in separate paddock/pen for closer observation.
• With the signs of approaching kidding, place the doe in a bedded dry stall (1 m x 2 m).
• Check the doe every 30 minutes but allow it to kid without assistance, if no problem is detected.
• As soon as the kid is born, wipe and dry the kid’s body immediately. Remove any mucus that may be clogging the nose to enable it to breathe freely. Tie a string around the umbilical cord 2–3 cm from the base of the navel. Cut the cord after the knot and dip the navel in tincture of iodine to avoid infection. Place the kid in a specially prepared kidding box and keep it from draft. If possible, expose it to sunshine to dry off and gain strength.
• Call a veterinarian if the placenta (afterbirth) is not expelled within 12 hours after delivery of the last kid to prevent complications like uterine infection.
• After kidding is over and the stall has been cleaned, offer the doe with water supplemented with vitamins and electrolytes, quality forage, and concentrate feed.
Allow the doe to kid by itself if no problem is detected.
22 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 23
Care of the Kids • Ensure that the kid receives the first milk or colostrum, as it contains high amounts of carbohydrates, antibodies, and protein needed to keep the new born strong and healthy.
• If for any reason the kid cannot suckle the colostrum, give it a liberal dose (about a teaspoonful to a tablespoonful) of any vegetable oil or a small amount of milk with fresh egg white. These materials are highly digestible to a newborn kid and will provide the needed protein (from the milk and egg white) and energy (from oil). Guard against wet bedding in the kid’s pen, as moisture buildup breeds harmful bacteria and harmful gases that can lead to health problems. Change beddings of kids 2–3 times daily.
• Install curtains along the sides of the pen to protect the kids from cold temperature. Sacks fitted along the side of the pen may serve this purpose. Also place brooder boxes inside the shed to protect the kids from draft especially during the early hours of the morning.
• Remove the horn buds when the kid is about 3 weeks old using hot-iron cautery as horns are dangerous as they become mature. An improvised dehorner made from iron rod with wooden/bamboo handle can be used for this purpose.
• Castrate male kids not intended for breeding when they are 2–4 weeks old. Allow the kids to run with their mothers in a clean pen after castration. Avoid exciting them in any way.
Care of the Weaner/Grower • Separate male weanlings from the breeding herd to prevent premature breeding of female weanlings. Provide separate paddocks for each set of weanlings or growers.
• Excess males can either be sold as breeders if of high quality or grown as slaughter animals.
• Document the growth performance and health condition of the animals. Important growth parameters to note include weight at birth, 1 month, 3 months or upon weaning, and at slaughter/market age of 8–9 months old.
When needed, guide the newborn kid to its mother’s teats so it can suckle the colostrum.
24 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 25
• Practice culling to ensure that only the best are retained in the farm as replacement breeders.
• Allow the 8–10 month-old doelings to mingle with the buck as they are now ready for breeding.
Breeding Practices for Does • Breed does when they start to show signs of estrus at 8 months.
• Cues to watch out for include: Mounting other animals in the herd; swelling and reddening of the vulva, mucus discharge from the vulva; uneasiness/restlessness.
• Before breeding, make sure they are in good health and weigh not less than 25 kg for upgraded animals.
• For maiden does, two services are recommended. When hand mating is being practiced, breed the doe upon observation of heat and repeat 12 hours after. Does with estrus 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 a proven buck for two cycles can be culled from the herd.
Separate bucklings from female growers to avoid early breeding.
26 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 27
Breeding Practices for Bucks • A buck must be at least 1 year old at first breeding.
• In the complete confinement system wherein hand mating is being practiced, limit the mature buck to four services weekly.
Practical Feeding • Provide goats with unlimited access to fresh grass and legume. Give 2–3 kg of fresh tree leaves such as ‘ipil-ipil’ and ‘kakawate’, and shrubs like flemingia, sesbania, desmanthus, and rensonii.
• Provide 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. Roughages are
feeds high in fiber but low in energy content. These include grasses, legumes, and crop by-products.
• Supplement with concentrate at 30% of the dry matter intake to further improve performance. Concentrates are feeds low in fiber but high in energy content, such as rice bran, copra meal, and cane molasses.
• When available and accessible, feed productive goats with basal feeds (agro-industrial by-products like brewer’s spent grains, pineapple pulps, molasses, and banana rejects).
Feeding Guides • See Appendix 2 for a practical guide in feeding goats at different growth and production stages.
One buck can service 25 does.
28 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 29
Suggested Pointers on Herd Health Management
• When buying or selecting breeder stocks, examine the animals for the presence of superficial lumps/abscesses by running your hands on the neck, abdominal, and pelvic regions. The presence of lumps/abscesses indicates caseous lymphadenitis, which mayeventually infect the herd. Also, check for the presence of scabby lesions in the mouth, which may be a sign of orf, a highly contagious, viral disease that can easily spread in the herd. Deworm newly bought animals with an effective dewormer (e.g., Vermisantel, Ivermectin, Levamisole) upon arrival in the farm and isolate them from the existing herd for 30 days.
• Deworm animals when signs of parasitism (diarrhea, loss of weight, ruffled hair coat, pot-belly, etc.) are observed. For pregnant does, deworming is done 2 weeks before expected kidding.
Provide a mixture of fresh grass and legume forages everyday.
30 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 31
• Provide rehydration fluids (oresol) to sick and weak animals. In regions where foot and mouth disease is prevalent, vaccinate the animals with FMD vaccine.
• If vaccine for hemorrhagic septicemia is available, vaccinate them as well.
A parasitized goat usually has ruffled and coarse coat as exhibited by the brown goat.
• Check for the presence of lice. A practical way to do this is to observe the haircoat of the animals. If the haircoat is always ruffled and the animals are always scratching their body against the wall or using their head, horns, it could mean that they have lice. Delouse the animals with an effective insecticide (e.g., asuntol, amitraz, and neguvon powder, and follow the instruction for application).
Marketing Tips • Know the prevailing market price for specific qualities of goats in your locality to ensure you get the right price for your goats.
• 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 profits. Upgraded animals have bigger body conformation and grow faster than native animals, hence, turnover of capital is faster.
• Dispose all marketable animals readily, as keeping them will just add to your expenses.
32 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 33
• Do not market diseased or pregnant animals.• Know and address the buyer’s preference in
terms of weight, sex, breed, and age.• If possible, sell animals based on weight rather
than on a per head basis.• Bring your produce to auction markets such as
in:- Urdaneta, Pangasinan- Calasiao, Pangasinan- Padre Garcia, Lipa City, Batangas
Possible loan sources You can access loans from the: • Land Bank of the Philippines
Countryside Loan Fund – Credit Support for the Environment, Agribusiness and Small & Medium Enterprise (CLF-CREAM)- Loan amount is P100,000–P300,000 payable
in 10 years for fixed asset loans and 5 years for working capital loan
- Interest based on prevailing market rate may be variable or fixed
- Sole proprietorships, partnerships, corporations, cooperatives, and associations are the eligible sub-borrowers
Medial view of slaughtered goats showing smallness of the native goat (L-R: crossbred Anglo Nubian, crossbred Boer, purebred Anglo Nubian, purebred Boer, and native).
34 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 35
• Department of AgricultureAgriculture Credit and Policy CouncilAgri-Fishery and Microfinance Program- Loan amount is up to P 50,000
- Terms and interest depends on the conduit
- Small farmers are eligible to borrow
Appendix 1. Directory of nucleus and multiplier farms for goats under the Small Ruminant Genetic Improvement Program (SRGIP).
Name of Farm/Address Breeds Available
A. Nucleus Farm
1. Sual Breeding StationSual, Pangasinan
Anglo-Nubian
2. Cagayan Breeding StationMaguirig, Solana, Tuguegarao, Cagayan
Boer
3. Cagayan Valley Hillyland-ROS, Tapaya Baganag, Nueva Vizcaya
Boer, Anglo-Nubian
4. Small Ruminant CenterCentral Luzon State University, Science City of Muñoz, Nueva Ecija
Boer, Anglo-Nubian, Saanen, Toggenburg, Alpine, La Mansha
5. National Artificial Breeding CenterLot 184, Dalwangan, Malaybalay City
Boer, Anglo-Nubian
6. ASEAN Goat & Sheep CenterBagaluba, Labangan, Zamboanga del Sur
Boer, Anglo-Nubian
B. Multiplier Farms
1. Baguio Dairy FarmSto. Tomas, Baguio City
Saanen, Anglo-Nubian
2. Palayan Livestock Production CenterAtate, Palayan, Nueva Ecija
Boer, Anglo-Nubian
3. Central Luzon Integrated Agricultural Research Center (CLIARC)Sto. Niño, Magalang, Pampanga
Anglo-Nubian
4. University of the Philippines Los Baños – Dairy Training and Research Institute (UPLB-DTRI), Los Baños, Laguna
Saanen
36 Profitability Analysis: 25-Doe Level Slaughter Goat Production Profitability Analysis: 25-Doe Level Slaughter Goat Production 37
Name of Farm/Address Breeds Available
5. Masbate Breeding StationAsid, Masbate, Masbate
Anglo-Nubian
6. Himalayan Breeding StationHimalayan City, Negros Occidental
Anglo-Nubian
7. Ubay Stock FarmUbay, Bohol
Anglo-Nubian, Boer
8. University of Southern Mindanao (USM)Kabacan, North Cotabato
Saanen, Anglo-Nubian
9. Basilan Breeding StationSta. Clara, Lamitan, Basilan
Anglo-Nubian
Appendix 2. Suggested feeding guides for goats.Age Feed Amount/Day
Birth–3 days Colostrum Ad libitum(3–5x feeding)
4 days–2 weeks Whole milk (Goat milk)
Vitamin-mineralWater
0.5–1 L/kidDivided into 3x feedingAd libitumAd libitum
2 weeks–16 weeks Whole milk or milk replacera
Grass-legume hay or quality foragesVitamin-mineral mixWaterStarter
0.5–1 L/kid divided into 2x feedingAd libitumAd libitumAd libitumIncreasing amount without causing digestive upset
4 months–kidding Forages, vitamin-mineral mixWaterConcentrates (18%–20% CP)b
Ad libitumAd libitumUp to 0.5 kg/head
Dry, pregnant, bucks
Forages, vitamin-mineral mixWaterConcentrates (16–18% cp)c
Ad libitumAd libitum0.2–0.7 kg/head
Lactating Forages, vitamin-mineral mixWaterConcentrates (16–18% CP)
Ad libitumAd libitum0.3–0.5 kg/L milk produced
a Whole milk can be goat or cow milk. Milk replacer can be used after two weeks.b Formula I. Ground corn (12 kg); rice bran (24 kg); copra meal (40 kg); soybean oil meal (8 kg); meat and bone meal
(10 kg); molasses (5 kg); and salt (1 kg)c Formula II. Copra meal (50 kg); wheat pollard (32 kg); molasses (15 kg); bone meal (2 kg); and salt (1 kg)
Formula III. Copra meal (40 kg); corn (25 kg); soybean oil meal (15 kg); rice bran (10 kg); molasses (8 kg); bone meal
(1 kg); and salt (1 kg).
Credits:
Interagency Working Group:
Analysts: Normito R. Zapata, Jr./College of Economics and Management-University of the
Philippines Los Baños
Emilio M. Cruz/Small Ruminant Cluster (SRC)-Central Luzon State University (CLSU)
Alvin P. Soriano/SRC-CLSU
Anna Marie P. Alo/Livestock Research Division-PCAARRD
Jamaica Angelica P. Deriquito/Socio-economics Research Division (SERD)-PCAARRD
Anita G. Tidon/SERD-PCAARRD
Editor: Joel Eneristo A. Joven/Applied Communication Division (ACD)-PCAARRD
Layout and Design: Paul Jersey G. Leron/ACD-PCAARRD
Production Assistants: Loida Duldulao/SRC-CLSU
Carmelita B. Alamban/ACD-PCAARRD