Goat-based Enterprises: Alternative LIvelihood Options for Juan

Goat-based
Enterprises
Alternative livelihood for JUAN
ANNA MARIE P. ALO
Goat ISP Manager and
Supervising Science Research Specialist
PCAARRD-DOST
Goat Industry Situationer
Sunrise industry
slowly gaining favour with investors
Total inventory: 3.72M goat (BAS, 2012)
98% backyard, 2% commercial
Provides livelihood to 1.34M
Filipinos (BAS 2010)
Contents
1
Where is the goat industry now?
2
Why are goats important?
3
How can Juan profit from goat raising?
4
How can we help Juan start his goat biz?
Economic Importance
Slaughter Goat
Chevon is a
healthy meat
Great market
potentials
• Lower in saturated fat than chicken,
pork or beef
• Low in cholesterol, high in protein
• Demand & extraction rate greater than
production
Economic Importance
Dairy Goat
• Closer to human milk, easier to digest and
assimilate in the human body
Healthier
milk than
cow’s milk
• With 3.8 times more calcium than a
mother's milk
• Goat milk soap rejuvenates, protects,
moisturizers and exfoliates human skin
Other Advantages
Fits smallhold farm conditions
Can be raised by any member
of the family
Requires little initial capital
Integral to Filipino festivities
Other Advantages
Financially rewarding
• NPV for a 25-doe enterprise
is P197k; IRR, 38.5%
• Good return for P264k total
investment, recovered over
a period of 3 years
(PCAARRD, 2012)
Other Advantages
Reproduces fast
Jan
I
Feb Mar Apr May Jun
B1
II
Jul
K1
1:1
B3
W2
Aug Sep Oct Nov Dec
B2
W1
K3
1:1
I
Kd1
II B1
K1
1:1
B4
W3
B2
W1
K1
1:1
Kd2
I
II
K2
1:1
B1
K1
1:1
Reproduction Rate
• Doe-3 kiddings per 2 years
= 6 kids
• First Offspring – 2 kiddings
= 4 kids
• Second offspring – 1 kidding = 2 kids
Ave. kids in 2 years
= 12 kids
PRODUCTION ASPECTS
GOAT
CATTLE
CARABAO
Cost of Female Breeder
P 4, 000
16, 000
20, 000
Gestation/Pregnancy (Months/Days)
5 (150)
9 (280-290)
11 (320-330)
Marketable Age (Months)
6-7
9-12
10-12
Period from Gestation to Marketable Age (Months)
12
21
23
Kidding /Calving Rate (2 Years)
2
1
1
2-3
1
1
4, 000
16, 000
20, 000
Total income per head of female breeder
8,000-12, 000
16, 000
20, 000
Total income at equal amount of money invested*
40, 000-60,000
16, 000
20, 000
Number of kids/kidding or calf/calving
Price/head of breeder offspring produced
* Using P20,000, the price of carabao, as initial investment
Goat raising generates higher income…
How much initial
Investment is needed?
5-doe
Level
Capital expenditures
Working capital
Herd development expenditures
TOTAL INVESTMENT COST, P
1515-doe
Level
2525-doe
Level
43,200
8,040
36,184
88,800
15,969
76,407
134,600
13,898
115,370
87,424
181,176
263,868
Ave. annual net cash flow
(5-yr cash flow projection), P
25,617
79,430
134,956
Net present value
(15% cost of capital), P
8,661
96,982
197,707
Internal rate of return
18.93%
33.10%
38.52%
Payback period
4 yrs
3.23yrs
3yrs
Source: PCAARRD. Profitability Analysis: 25-doe-level goat production. Los Baños, Laguna: PCAARRD, 2012.
for
How can we help JUAN maximize profit from goat raising?
How can we help JUAN maximize profit from goat raising?
1. Change his perspective from
“Pang-pulutan”
“Goat Negosyo”
How can we help JUAN maximize profit from goat raising?
2. Teach him the appropriate &
practical TECHNOLOGICAL
OPTIONS such as…
NATIVE 100%
50% N & 50% AN
25% N & 75% AN
Upgrading of native stocks
Goat upgrading using purebred bucks
Purebred buck
X
Native doe
1
F1
(50% Purebred:50% Native)
Purebred buck
X
F1
2
F2
(75% Purebred:25% Native)
Purebred buck
X
3
F3
(87% Purebred:12.5% Native)
F2
Goat upgrading using an upgraded buck
Upgraded buck (40 kg)
(75% AN:25% N)
X
Native doe (20 kg)
(100% N)
1
F1 (30 kg)
(37.5% AN:62.5% N)
Purebred buck (50 kg)
(100% AN)
X
F1 (30 kg)
(37.5% AN:62.5% N)
2
F2 (40 kg)
(68.75% AN:31.25% N)
Purebred buck (50 kg)
(100% AN)
X
3
F3 (50 kg)
(84.37% AN:15.63% N)
F2 (40 kg)
(68.75% AN:31.25% N)
Goat upgrading
through Three-Way
Crossbreeding
Purebred
Buck 1 (AN)
Native
doe
X
1st
(50%
Breeding
AN: 50% Native)
Purebred
Buck 2 (AN)
(50% AN: 50%
Native)
X
2nd
(75%
Breeding
AN: 25% Native)
Purebred
Buck (BO)
(75% AN: 25%
Native)
X
3rd Breeding
(50%
BO: 37.5% AN: 12.5% Native)
Birth wt = 3.0 kg
Birth wt = 2.30 kg
Birth wt = 2.35 kg
70
Native
Upgrades
60
60.31
Anglo-Nubian
Bodyweight (kg)
Boer
49.51
50
40
32.85
30
20.03
20
17.05
10.75
10
13.01
5.81
3.23 3.27
1.49 2.39
0
Birth Weight
Weaning Weight
Mature Weight
Growth performance of Native, Upgrades, Anglo-Nubian and Boer
Added benefit from
Goat upgrading …
Production Benefit
Mature weight of the animals (kg)
Production Stage
I
II
III
Doe
20 (Native)
30 (F1)
40 (F2)
Buck
40 (Upgraded)
50 (Purebred)
50 (Purebred)
30 (F1)
40 (F2)
50 (F3)
10
20
30
10
20
30
P100.00
P150.00
P200.00
P1,000.00
P3,000.00
P6,000.00
Offspring
Weight Difference
Economic Benefit
Weight Difference
Price/kg
Price Difference
In a projected scale…
25 does x 1.5 kids born /kidding
38 kids
Mortality (20%)
8 animals
Marketable animals
30 animals
Profit
I
II
III
Marketable
animals
P1,000.00
P1,500.00
P2,000.00
30 animals
P30,000.00
P45,000.00
P60,000.00
Effective
disease and parasite control/
eradication programs
Stall Feeding
Supplementation of MPTS
Supplementation of UTRS
Adoption of
Supplementation of UMMB
feeding technologies
Proper housing and
of animals
complete confinement
Legume Production
in Strata
Grass-Legume
combination
Food-feed system
Sustainable organic production of
improved forage
grasses and legumes
Growth performance of kids from does fed with tree legumes
Artificial
Insemination
Application of
Multiple Ovulation and
Embryo transfer
reproductive biotechnolgy
3. Focus on the right
Production of
SLAUGHTER
Goats
Enterprise
BUCK
for hire
Live
Slaughtered
Production of
BREEDERS
meat goats
dairy goats
Production of
chevonchevon-based
products
fresh meat
processed
Marketing of
FORAGE;
UMMB;
UMMB;
Manure
Production of
dairydairy-based
products
milk, yogurt
soap, lotions
Source: PCAARRD. Invest in goat farming. Los Baños, Laguna: PCAARRD, 2012.
How can we help JUAN
1. Seek technical
assistance
start
his goat business?
Join the Farmer Livestock School
on Goat Enterprise Management
Enroll in the online courses on goat @
www.e-extension.gov.ph/elearning
Course 1 – Establishing feed
resources for your goats
Course 2 – Starting a slaughter goat
enterprise
Course 3 – Alternatives to
traditional feeding
management
How can we help JUAN
1. Seek technical
assistance
start
his goat business?
Undergo training in any goat center
such as:
Small Ruminant Center
Central Luzon State University
Science City of Munoz, Nueva Ecija
Cagayan Valley Small Ruminant
Research and Training Center
Isabela State University
Echague, Isabela
How can we help JUAN
1. Seek technical
assistance
2. Prepare
production
inputs
start
his goat business?
Secure initial capital
Establish the pasture and feed
resources
Construct a goat house
Purchase the stocks
Thank You!
ANNA MARIE P. ALO
Goat ISP Manager and
Supervising Science Research Specialist
PCAARRD-DOST
Slaughter goat production enterprise
Cost and return analysis, 5 does initial stock, 2 year period
Items
Value (Pesos)
Income
Sale of Stocks, 23 hd at P3750/hd
Manure
Does (5 does at 1kg/doe/d *730days*P1/kg)
Kids (23 kids at 0.5kg/kid*150days*P1/kg)
Total Income
86,250
5,375
91,625
Expenses
Depreciation
Does *
Housing
7,000
3,000
Feed Concentrates
5,751
Buck Service
2,250
Vet Drugs and Supplies
1,118
Labor
36,500
Total Expenses
55,619
Net Income
36,006
* Does were treated as fixed investment with 5 year lifespan
Buck-for-hire enterprise
Cost and return analysis, 7 bucks, 8-month period*
Items
Value (Pesos)
Income from buck service, 448 services*P150/service
Total Income
67,200
Expenses
Depreciation
Bucks
Housing
7,000
1,400
Feeds
9,072
Labor
6,000
Biologics
Transportation
700
13,540
Total Expenses
37,512
Net Income
29,688
* Period of analysis is 8mos to coincide with 1st production cycle of the main enterprise on goat raising
UMMB production enterprise
Cost and return analysis, first 8 months of operation*
Items
Value (Pesos)
Income
Sales from UMMB, 1200kg*P30/kg
36,000
Sales from seedlings, 3000
seedlings/mo*8mo*P2.50/seedling
60,000
Total Income
96,000
Expenses
UMMB ingredients
15,268
Labor*P200/md
Nursery supplies
200
4,800
Water
Labor@ 1min/cup*12000cups
500
5,000
Total Expenses
25,768
Net Income
70,232
* Period is set at 8 months to coincide with first production cycle of the main enterprise (goat raising)
Manure commercialization
Cost and return analysis, 8 months of operation*
Items
Value (Pesos)
Income
Sales from manure, 50,000kg*P6/kg
300,000
Total Income
Expenses
Procurement cost of manure
83,000
Sack, P6/pc*1250pcs
7,500
Labor, 26days*P200/d
5,200
Transportation (10% of procurement cost)
8,300
Total Expenses
104,000
Net Income
196,000
* Period is set at 8 months to coincide with first production cycle of the main enterprise (goat raising)
Need for flush feeds
for breeders
Limited access of
smallhold to good
breeds
Long kidding interval
Need for halalacceptable heat
induction techniques
High kid
mortality
Low birth to
weaning
weights
No feed
supplements
specifically
for goats
Production Stage
Gaps
Technology Chain
Profile of causes
of mortalities
lacking
Initiated MCM
dewormer; needs
further study
Need to address
hypobiosis
Protocol for
producing halal
goats needs
piloting
Lack of
standards for
slaughtering
& cutting
Need for
product
diversification to
maximize
slaughtering
wastes
Breeding
Kidding
Pre-Weaning
Growing to
Slaughtering
Marketing
S&T Programs
Stage
Breeding
Kidding
Status
S&T Intervention
Results of
Intervention
Imported breeds available Rollout of AI at smallhold
level
at gov’t & private farms but
inaccessible to smallhold
Piloting of AI-DS in other
farms
regions
Semen extender developed Improvement of
AI delivery system tested in
cryopreservation
Reg2
techniques for goat
semen
Access of
smallholders to
quality breeds
Increased goat
inventory by 31% by
2015
Devt of diff. variants of
flush feeds for does
(2015)
Rollout and promo of
PBR and FRS (ongoing)
Roll out FLS-GEM
(ongoing)
Devt of non-invasive heat
induction techniques to
promote off season
breeding (2015)
Improved
conception rates
from 75-79% by
2015; 90% by
2020
Shortened
kidding interval
from 9mos-8mos
Low conception rate (75%)
Long kidding interval (270
days)
PBR for lactating
developed, not yet market
available
Recording system
developed; limited
promotion
S&T Programs
Stage
Status
Preweaning
High preweaning mortality
(25%)
Low birth weight (1.6kg)
No milk substitutes &
transition feeds
No health program for PW
Dev’t of new feed
products for newborn &
preweaners
Dev’t of PWM control
strategies
Decreased
mortality rates from
25% to 21% by
2015; 10% by
2020
Low slaughter weight
(12.6kg)
Higher slaughter than
production
MCM dewormer initiated
Goat-based enterprises
introduced in 4 regions
thru RED and FLS
Halal production and
haram detection protocol
dev’t initiated
Infusion & promotion of
better genetics
Roll out of TMR for
growers
Dev’t of final MCM
manufacturing protocol
Promotion of goat-based
enterprises
Pilot test & roll-out halal
goat production,
processing and haram
detection protocols
(2014)
Higher slaughter
weights
Grounding of more
goat-based
enterprises
Availability of
authentic halal
goats
Growing/
Finishing
S&T Intervention
Results of
Intervention
Stage
Marketing
Milking
Status
S&T Intervention
Results of
Intervention
Limited market share of
chevon products in the
market
No premium price for
prime chevon cuts
Standardization of
slaughtering & cutting
methods initiated
Protocols for canning
chevon-based recipes
developed
Estab. of standard
slaughtering procedures
Dev’t of a uniform
classification of chevon
cuts
New enterprises from
prime cuts and products
from slaughtering waste
Improved
marketing of
chevon & chevonbased products
Limited and fragmented
R&D
Lack of standards on the
production of non-food
goat milk-based products
Marketing of goat’s milk
and milk products in
limited outlets
Supply chain assessment Assurance of
product quality that
& R&D
will translate to
Establishment of
better price and
standards for the
acceptance of
manufacture of milkproducts
based hygiene products
Goat milk-based product
diversification and
enterprise building
New food and nonfood products from
goat