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
