Escolar Documentos
Profissional Documentos
Cultura Documentos
(Goat Fattening)
helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab
REGIONAL OFFICE
Sindh
REGIONAL OFFICE
Khyber Pakhtunkhwa
REGIONAL OFFICE
Balochistan
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
December, 2013
Table of Contents
1
2
3
4
5
6
7
8
9
10
11
12
DISCLAIMER .................................................................................................2
PURPOSE OF THE DOCUMENT ..............................................................3
INTRODUCTION TO SMEDA .....................................................................3
INTRODUCTION TO SCHEME ..................................................................3
EXECUTIVE SUMMARY ..............................................................................4
BRIEF DESCRIPTION OF PROJECT & PRODUCT ..............................4
CRITICAL FACTORS ...................................................................................5
INSTALLED & OPERATIONAL CAPACITIES ........................................5
GEOGRAPHICAL POTENTIAL FOR INVESTMENT .............................5
POTENTIAL TARGET MARKETS / CITIES.............................................5
GOAT FATTENING PROCESS ..................................................................6
PROJECT COST SUMMARY .....................................................................7
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
12.9
13
14
14.1
14.2
14.3
14.4
14.5
15
Pre-Feasibility Study
DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said matter. Although, the material included in this
document is based on data / information gathered from various reliable sources;
however, it is based upon certain assumptions which may differ from case to case. The
information has been provided on an as is where is basis without any warranties or
assertions as to the correctness or soundness thereof. Although, due care and diligence
has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ
substantially from the presented information. SMEDA, its employees or agents do not
assume any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. The contained information does not preclude
any further professional advice. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information which is
necessary for making an informed decision; including taking professional advice from a
qualified consultant / technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
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Pre-Feasibility Study
INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs" , SMEDA has carried out sectoral research to identify
policy, access to finance, business development services, strategic initiatives and
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification of
experts and consultants and delivery of need based capacity building programs of
different types in addition to business guidance through help desk services.
4
INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loan Scheme, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
Pre-Feasibility Study
EXECUTIVE SUMMARY
The project is related to setting up goat fattening farm in which, young goats preferably
males are raised on nutritionally balanced feed or Total Mixed Ration (TMR) to get the
targeted weight gain of greater value. These goats are grown in groups and each batch
stays on farm for a period of 120 days. The expected live body weight gain ranges
between 125 - 140 grams/day. Higher yields are achievable with better farm
management and better quality breeds such as Teddy for meat production.
Goats are raised in rural and semi-urban areas where there is abundance of fresh
water, fodder and natural vegetation. The fattened goats are sold primarily in livestock
markets (mandies). A farm of maximum capacity for 528 goats per annum is suggested
in this pre-feasibility study as a viable economic size to enter this business. Total
estimated investment of Rs. 1.55 million is required with fixed investment of Rs. 0.26
million and working capital of Rs. 1.29 million. This project is proposed to be started on
90% debt and 10% equity basis. The Internal Rate of Return (IRR), Net Present Value
(NPV) & payback period of the project are 35%, Rs. 4.02 million and 3.6 years
respectively. The proposed project is a sole-proprietorship.
6
The proposed project is based on raising 528 goats per year in a farm in three
production batches, each having 176 goats. The goats (preferably males, however,
females may also be used in case of unavailability of males) of 6-8 months of age are
fed on nutritionally balanced concentrate ration or Total Mixed Ration (TMR) as major
source of energy and protein in addition to green fodder for a period of 120 days to get
higher body weight gain. Initial live body weight of goats is around 10 kg. If these goats
are fed properly on formulated fattening feed, an additional weight, up to 15 kg can be
achieved. The daily weight gain varies between 125 to 140 grams depending on the
quality of feed given to them. This project will provide direct employment to four people.
The proposed business may be established in rural and peri-urban areas of major cities
such as Pattoki, Sahiwal, Bahawalnagar, Rahim Yar Khan, Jehlum, Mandi Bahauddin,
Bahawalpur, Karachi, Sakkar, Dadu, Hyderabad, Peshawar, Charsadda, D.I. Khan,
Lasbela, Qila Saifullah, Quetta etc. The farm should be located in a place where there
is abundant availability of fodder, natural vegetation and water. Although, there is year-
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Pre-Feasibility Study
round market, however the demand increases especially before occasions like Eid-ulAzha, where well fed animals are sold at a higher price than usual weight based price.
7
CRITICAL FACTORS
The project will operate at 75% of its capacity in its first year of operations; hence, the
farm will start its operations with fattening of 495 goats. The farm will achieve maximum
production capacity of 528 goats (80% of installed capacity) in the fifth year of
operations.
9
This project is intended to setup in a rural and peri-urban areas of all the major cities
like Lahore, Faisalabad, Sargodha, Bahawalpur, Islamabad, Karachi, Hyderabad,
Sukkar, Quetta, Lasbela, Peshawar and D.I. Khan, as these are major markets of meat.
Farm land and rural areas with abundant water, good soil for fodder and natural
vegetation for goats make it a better choice for goat farming; provided there is access to
livestock mandies and veterinary services.
10 POTENTIAL TARGET MARKETS / CITIES
Apart from major cities, livestock markets in all the cities and peri-urban locations
across the country are the primary markets in addition to specially arranged locations in
larger cities during Eid festival in the urban markets. The price of fattened goats varies
according to health of animals and market conditions. Normally animals are sold on
Live Body Weight basis. In this feasibility, Rs. 350 per kg of live body weight is
assumed as selling price. Following are some of the target clients for goat fattening
farmers;
Livestock traders
Butchers
Contractors
Slaughter house owners
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Selection of good goat breed: There are 37 breeds of goats reported in Pakistan,
among which, good breeds are considered to be; Beetal, Dera Din Panah and
Teddy in Punjab, Barbari and Kamori in Sindh, Kaghani and Jatal in Khyber
Pakhtunkhawa,
and Khurassani, Lehri and Pahari in Balochistan. The
availability of young stock is not a problem as twinning, triplet kidding and early
maturity are common features of goats.
Teddy is a meat type, small sized breed, kept for good meat production and
conformation with 52-55% dressing percentage. After fattening, the fat to muscle
composition is also acceptable. Beetal goat is more desirable for Eid-ul-Azha as
it has higher weights and more marbling with higher dressing percentage.
Selection of animals with excellent body score and conditions: initial live body
weight should be around 10-12 kg at 6-8 months of age. Small andemaciated
animals may also be accepted for fattening as research shows that these
animals respond positively in terms of feed efficiency.
Housing: should be dry, comfortable and airy with proper and frequent removal
of droppings, urine and waste material (droppings can be used as bio fertilizer
for growing crops/ fodder).Farm should be established on scientific lines with
adequate space allocation according to the number of goats. It should be built
east-west length wise to permit maximum day light and sun for natural
disinfection.
A dipping bath pit of approximately 15-20 sq.ft is necessary for giving the dip of
medicines mixed water to young stock for removing external parasites.
Feeding: Adequate weight gain can be achieved through use of balanced feed
purchased from well reputed companies or it can be formulated accordingly.
Animal should be fed TMR @ 3 % of live body weight. Additionally, salt blocks
can help in better daily weight gains. Green fodder is offered at 5% of body
weight (wet basis) to every animal.
Watering: Daily supply of clean drinking water in clean troughs i.e. 5 to 10 liters
of water consumption/animal/day maintains the production capacity of the
animal. Due to TMR and salt offered, animal tends to consume more water.
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FMD Vaccine
Start of spring
Duration of
Immunity
4 months
CPD vaccine
April-October
4 months
March-April
March-September
January- July
October-November
One year
4 months
Six months
4 months
Disease
Foot and Mouth
Disease (FMD)
Contagious Pustular
Dermatitis (CPD)
Anthrax
Goat Pox
Entero-toxaemia
Pleuro-pneumonia
Vaccine
Vaccination time
Record keeping for each batch: The animals should be ear-tagged on arrival at
the farm. The information to be recorded includes breed of animal, initial live
weight, age, date of purchase etc. The records for regular weight gain,
medication and de-worming etc. are also important.
Details
35%
3.60
Rs. 4,017,903
Rs. 218,721
7
Pre-Feasibility Study
Rs. 1,968,458
8%
Amount (Rs.)
162,500
15,000
Pre-operating costs
80,616
258,116
Working Capital
Equipment spare part inventory
4,748
856,779
88,648
Cash
340,385
1,290,560
Total Investment
1,548,676
Store
240
Attendants room
136
Dipping bath
50
Open paddock
5,280
Total Infrastructure
8,496
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The monthly rent of the building and infrastructure is estimated to be approximately Rs.
22,000 per month.
12.5 Machinery, Equipment & Furniture
Following table provides list of machinery and equipment required for Goat Fattening
Farm.
Table 6: List of Machinery, Equipment and Furniture
Description
Units
Chopper
30,000
30,000
30,000
30,000
Feeding mangers
15
3,000
45,000
Tubs
1,500
7,500
Hand carts
5,000
10,000
25,000
25,000
15,000
15,000
15,000
15,000
Miscellaneous
Total furniture
Lump sum
Total
177,500
12.6
Unit
Rate (Rs.)
No.
Total Rs.
Cost of goats
Per goat
3,500
495
1,732,500
Per goat
1,542.6
495
763,587
Vaccination/ Medication
Per goat
150
495
74,250
Total Cost
Note: Figures have been rounded off to the nearest decimal place
2,570,337
No. of
Employees
Monthly Salary
(Rs.)
15,000
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180,000
Pre-Feasibility Study
Attendants
10,000
360,000
Total Staff
4
540,000
Total of four employees including owner of the farm would be required for effective
management of the farm.
12.8 Revenue Generation
Table 9: Revenue Generation
Description
Unit
Sale Price
Rs./Unit
Per goat
8,540
First Year
Production
(Units)
470*
Revenue in
Year 1 (Rs.)
Total Revenue
4,013,800
4,013,800
* Out of total 495 goats, 25 are lost due to mortality @3% per annum
12.9 Other Costs
An essential cost to be borne is vaccination & medication cost which is assumed to be
Rs. 150 per animal. The transportation cost required for freight of goats is estimated to
be Rs. 120,000 per annum. The communication charges are estimated to be 24,000 per
annum.
13 CONTACTS OF SUPPLIERS AND CONSULTANTS
Table 10: Table of Suppliers and Consultants
Feed Suppliers
Hi-Tech Feeds (Pvt.) Ltd.
1-A, Shadman Chowk Jail Road, Lahore
Phone : +92-42-37564503
Fax : +92-42-37564508
Anmol Vanda
c/o Livestock and Dairy Development
Department, Govt. of Punjab, 16-Cooper
Road, Lahore
Ph: 042-99239819
Consultants
Prof. Dr. Muhammad Younas
Department of Livestock Management,
Faculty of Animal Husbandry, University
of Agriculture, Faisalabad, Pakistan
Ph: +92-41-9200161-170
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10
Pre-Feasibility Study
Dr. M. Abdullah
Dean, Faculty of Animal Production and
Technology, University of Veterinary and
Animal Sciences, Lahore
Ph: 042-9211398
Livestock Mandies
The animals may be procured from local goat breeders and livestock mandies located in
different districts such as Pattoki, Okara, Bahawalnagar, Lodhran, Vehari, Khanewal,
Arifwala, Pakpattan etc. as scheduled by Livestock and Dairy Development Department,
Govt. of The Punjab Lahore. Free Landline: 0800-78685, 0800-78686
Meat Contractors/ Processors
Mr. Younas Qureshi
Chairman
Red Cow Meat Products of Pakistan
125/ 13-B-1, Township, Lahore
Ph: 042-35112603
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11
Pre-Feasibility Study
14 ANNEXURE
14.1 Profit & Loss Statement
Income Statement
Year 1
4,013,800
Year 2
4,509,120
Year 3
5,053,033
Year 4
5,672,003
Year 5
6,276,714
Year 6
6,904,385
Year 7
7,594,824
Year 8
8,354,306
Year 9
9,189,737
Year 10
10,108,710
837,837
1,732,500
360,000
120,000
14,242
56,970
921,621
1,905,750
396,000
132,000
16,000
64,000
1,013,783
2,096,325
435,600
145,200
17,930
71,720
1,115,161
2,305,958
479,160
159,720
20,126
80,505
1,226,677
2,536,553
527,076
175,692
22,272
89,088
1,349,345
2,790,209
579,784
193,261
24,499
97,997
1,484,279
3,069,229
637,762
212,587
26,949
107,797
1,632,707
3,376,152
701,538
233,846
29,644
118,576
1,795,978
3,713,768
771,692
257,231
32,609
130,434
1,975,576
4,085,144
848,861
282,954
35,869
143,478
3,121,549
892,251
3,435,371
1,073,749
3,780,558
1,272,475
4,160,630
1,511,373
4,577,359
1,699,355
5,035,095
1,869,291
5,538,604
2,056,220
6,092,464
2,261,842
6,701,711
2,488,026
7,371,882
2,736,828
180,000
265,944
198,000
292,538
217,800
321,792
239,580
353,971
263,538
389,369
289,892
428,305
318,881
471,136
350,769
518,250
385,846
570,075
424,431
627,082
24,000
17,750
16,123
503,817
388,434
26,400
17,750
16,123
550,812
522,938
29,040
17,750
16,123
602,505
669,969
31,944
17,750
16,123
659,369
852,004
35,138
17,750
16,123
721,918
977,437
38,652
17,750
774,600
1,094,691
42,517
17,750
850,284
1,205,935
46,769
17,750
933,538
1,328,304
51,446
17,750
1,025,117
1,462,909
56,591
17,750
1,125,853
1,610,975
388,434
522,938
669,969
852,004
977,437
1,094,691
1,205,935
1,328,304
1,462,909
1,610,975
115,685
115,685
272,748
105,911
105,911
417,027
93,065
93,065
576,905
79,152
79,152
772,853
64,084
64,084
913,353
47,766
47,766
1,046,925
30,093
30,093
1,175,842
10,954
10,954
1,317,350
1,462,909
1,610,975
Tax
NET PROFIT/(LOSS) AFTER TAX
272,748
1,703
415,324
17,690
559,214
38,428
734,425
59,503
853,850
79,539
967,387
98,876
1,076,966
120,102
1,197,248
141,936
1,320,973
169,695
1,441,280
272,748
272,748
272,748
688,072
688,072
688,072
1,247,287
1,247,287
1,247,287
1,981,712
1,981,712
1,981,712
2,835,562
2,835,562
2,835,562
3,802,948
3,802,948
3,802,948
4,879,914
4,879,914
4,879,914
6,077,162
6,077,162
6,077,162
7,398,135
7,398,135
7,398,135
8,839,415
8,839,415
Revenue
Cost of Sales
Feed & Vaccination Cost
Cost of Goat
Direct Labor
Inward Transportation Cost of Goats
Repair & Maintenance
Utilities
Water Cost
Total cost of sales
Gross Profit
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12
Pre-Feasibility Study
14.2
Balance Sheet
Statement Summaries
SMEDA
Balance Sheet
Assets
Current assets
Cash & Bank
Accounts receivable
Finished goods inventory
Equipment spare part inventory
Raw material inventory
Pre-paid annual land lease
Pre-paid building rent
Pre-paid lease interest
Pre-paid insurance
Total Current Assets
Fixed assets
Land
Building/Infrastructure
Machinery & equipment
Furniture & fixtures
Office vehicles
Office equipment
Total Fixed Assets
Intangible assets
Pre-operation costs
Legal, licensing, & training costs
Total Intangible Assets
TOTAL ASSETS
Liabilities & Shareholders' Equity
Current liabilities
Accounts payable
Export re-finance facility
Short term debt
Other liabilities
Total Current Liabilities
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals
Year 10
406,871
4,747
856,779
22,162
1,290,560
679,550
5,600
1,036,703
24,378
1,746,231
774,159
6,589
1,254,410
26,816
2,061,975
972,600
7,766
1,517,836
29,498
2,527,700
1,300,856
9,024
1,836,582
32,447
3,178,909
1,691,205
10,423
2,222,264
35,692
3,959,584
2,105,898
12,038
2,688,940
39,261
4,846,137
2,538,818
13,904
3,253,617
43,187
5,849,527
2,981,440
16,059
3,936,876
47,506
6,981,882
3,682,899
18,548
4,763,620
52,257
8,517,325
9,972,299
9,972,299
162,500
15,000
177,500
146,250
13,500
159,750
130,000
12,000
142,000
113,750
10,500
124,250
97,500
9,000
106,500
81,250
7,500
88,750
65,000
6,000
71,000
48,750
4,500
53,250
32,500
3,000
35,500
16,250
1,500
17,750
80,616
80,616
1,548,676
64,493
64,493
1,970,474
48,369
48,369
2,252,344
32,246
32,246
2,684,196
16,123
16,123
3,301,533
4,048,334
4,917,137
5,902,777
7,017,382
8,535,075
9,972,299
149,050
149,050
168,673
168,673
191,245
191,245
217,268
217,268
247,323
247,323
282,125
282,125
322,520
322,520
369,511
369,511
424,295
424,295
250,545
250,545
Other liabilities
Lease payable
Deferred tax
Long term debt
Total Long Term Liabilities
1,393,808
1,393,808
1,393,808
1,393,808
1,703
1,239,029
1,240,732
19,393
1,071,403
1,090,796
57,821
889,864
947,685
117,324
693,258
810,582
196,862
480,334
677,196
295,739
249,737
545,475
415,841
415,841
557,777
557,777
727,472
727,472
Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES
154,868
154,868
1,548,676
154,868
272,748
427,616
1,970,474
154,868
688,072
842,940
2,252,344
154,868
1,247,287
1,402,154
2,684,196
154,868
1,981,712
2,136,579
3,301,533
154,868
2,835,562
2,990,429
4,048,334
154,868
3,802,948
3,957,816
4,917,137
154,868
4,879,914
5,034,782
5,902,777
154,868
6,077,162
6,232,030
7,017,382
154,868
7,398,135
7,553,002
8,535,075
154,868
8,839,415
8,994,283
9,972,299
Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
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13
Pre-Feasibility Study
14.3
Statement Summaries
SMEDA
Operating activities
Net profit
Add: depreciation expense
amortization expense
Deferred income tax
Accounts receivable
Finished good inventory
Equipment inventory
Raw material inventory
Pre-paid building rent
Pre-paid lease interest
Advance insurance premium
Accounts payable
Other liabilities
Cash provided by operations
Financing activities
Change in long term debt
Change in short term debt
Issuance of shares
Purchase of (treasury) shares
Cash provided by / (used for) financing act
Investing activities
Capital expenditure
Acquisitions
Cash (used for) / provided by investing acti
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
(4,747)
(856,779)
(22,162)
(883,688)
272,748
17,750
16,123
(853)
(179,924)
(2,216)
149,050
272,679
415,324
17,750
16,123
1,703
(989)
(217,708)
(2,438)
19,623
249,388
559,214
17,750
16,123
17,690
(1,177)
(263,426)
(2,682)
22,573
366,066
734,425
17,750
16,123
38,428
(1,258)
(318,746)
(2,950)
26,022
509,795
853,850
17,750
16,123
59,503
(1,399)
(385,682)
(3,245)
30,055
586,955
967,387
17,750
79,539
(1,616)
(466,675)
(3,569)
34,802
627,617
1,076,966
17,750
98,876
(1,866)
(564,677)
(3,926)
40,395
663,518
1,197,248
17,750
120,102
(2,155)
(683,260)
(4,319)
46,992
692,358
(154,779)
(154,779)
(167,626)
(167,626)
(181,539)
(181,539)
(196,606)
(196,606)
(212,924)
(212,924)
(230,597)
(230,597)
(249,737)
(249,737)
1,393,808
154,868
1,548,676
(258,116)
(258,116)
Year 7
Year 8
Year 9
1,320,973
17,750
141,936
(2,489)
(826,744)
(4,751)
54,784
701,460
Rs. in actuals
Year 10
1,441,280
17,750
169,695
18,548
4,763,620
52,257
(173,751)
6,289,400
NET CASH
406,871
272,679
94,609
198,440
328,257
390,349
414,692
432,921
442,622
701,460
6,289,400
406,871
406,871
406,871
679,550
679,550
679,550
774,159
774,159
774,159
972,600
972,600
972,600
1,300,856
1,300,856
1,300,856
1,691,205
1,691,205
1,691,205
2,105,898
2,105,898
2,105,898
2,538,818
2,538,818
2,538,818
2,981,440
2,981,440
2,981,440
3,682,899
3,682,899
3,682,899
9,972,299
9,972,299
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
14
Pre-Feasibility Study
14.4
Technology
Animal Selection:
Selection of disease free animals with good breed
characteristics, body conditions and health.
Machinery Suppliers: Should be asked for after sales services under the
contract with the machinery suppliers
Human Resources
Useful Links
Prime Ministers Office, www.pmo.gov.pk
Government of Pakistan, www.pakistan.gov.pk
Ministry of Industries & Production, www.moip.gov.pk
Ministry of National Food Security & Research, www.mnfsr.gov.pk
Ministry of Education, Training & Standards in Higher Education,
www.moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
15
Pre-Feasibility Study
15 KEY ASSUMPTIONS
Table 11: Project Assumptions
Installed Capacity (No. of goats per batch)
220
3
660
75
495
90
528
2%
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
16
Pre-Feasibility Study
10
350
120
Feeding Days
120
23
5 % of live body weight
2
25
350
3,500
8,540
15
30
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
17