PROPOSAL FOR COMMERCIAL GOAT FARMING PROJECT

INTRODUCTION

Commercial goat farming is an endeavor practiced today by many especially those in the rural
regions. Goats are not only important in the health of the environment but also in the economy.
Goats are strong creatures that are able to resist various diseases and adapt to unfavorable
environments.

Goat farming is one of the initiatives by Seed Africa Foundation for Economic Development. It
is one of the income generating activities to be implemented to empower the believers to get out
of poverty. Others members of the church will learn from the project and duplicate the same on
their personal farms. The profits from the farm will be used for further investments but also will
be used to help widows, orphans and vulnerable children in our school and community.

WHY COMMERCIAL GOAT FARMING?

Goat farming for profit entails a low initial investment. Since goats are relatively small in size,
the facilities and amenities to support them are also minimal. Goats generally love being with
humans and they are extremely docile. They have a high fertility rate achieving maturity with
just 5 to 6 months. The probability of producing twins is high.

Risk associated with drought is less in commercial goat farming compared to other livestock
breeds. Also, both male and female species of goats are of the same value compared to other
animals.

Commercial goat farming is very flexible since it could be modified to include other grazing
species like sheep and cattle. Goats are good instruments to enhance the health of the grazing
land and minimize encroachment of bushes.

Farming goats is a true survivor in the business industry. Goat meat is a great appeal to the
public because of the health benefits it provides to its consumers. It is extremely low in fat,
cholesterol and calories. This is good for people who have low energy diet scheme.

LOCATION

The proposed farm will be established within Uganda, especially around Iganga or Namutumba
district depending on availability of land. However, the parent stock will be established in
Nabitende village in Iganga District. The land is already available.
MISSION

To become the leading producer of best quality goat products in Uganda. The farm will
emphasize value addition through agro processing, coupled with strong market linkages. The
farm will aim at attaining forward and backward linkages in the production process.

OBJECTIVES

1. To produce kids for the farm and for other farmers

2. To slaughter and pack goats for sale
3. To expand the area of operation to new areas
4. To diversify the operations to include sale of goat skin, organic farming and other related
practices

INTERNAL ANALYSIS

In order to gain a competitive advantage, the farm will position itself internally to enable it
survive in the long term. Using the SWOT analysis, the following are worth noting;

STRENGTHS

- The farm owns 3 acres of land to be used for a start

- Labor on the farm is cheap and available
- Pastures are already existent on the farm

WEAKNESSES

- High incidence of diseases

- High cost of feeding especially during dry periods of the year

OPPORTUNITIES

- High and ready market of goat meat

- Good road network
- Opportunity for expansion
- Locally available materials
- Available water and power supply
- Existence of a veterinary doctor in the sub county

THREATS

- Price fluctuations
- Thieves
- Long distance to the market
CORPORATE EXTERNAL ENVIRONMENT

The farm will enjoy a favorable external environment from the perspectives of Political,
Economic, Social, Technological, Legal and Ecological.

POLITICAL PERSPECTIVE

The government is promoting improvement in agricultural production and productivity

improvement as part of the prosperity for all program. The Plan for Modernization of Agriculture
(PMA) is one of the pillars of the Poverty Eradication Action Plan (PEAP). Increase in
agricultural production is part of the government priority program areas

ECONOMIC PERSPECTIVE

The demand for goat and goat products is high and ever increasing. With increase in per capita
income and higher levels of education, a growing number of people are adopting better nutrition.
Accessibility to the farm will be made possible due to a good road network. The rural
electrification program has enabled the power connectivity to the farm.

SOCIAL PERSPECTIVE

The demographic set up of the area indicates that the area has a number of young able bodied
men and women. The labor on the farm will therefore be cheap and available. The farm is in a
rural setting with scattered settlements, with the majority of the people living below the poverty
line. Therefore, purchase of land for expansion is possible.

TECHNOLOGICAL PERSPECTIVE

Rearing goats does not require sophisticated technology. Goats give birth easily and they do not
need special help. They do not require high maintenance and are relatively cheaper to tend.
Goats are strong creatures that are able to resist various diseases and adapt to unfavorable
environments. Modern technology will be used like weaning, best pastures, vaccination and
treatment. The shelters will be built to standard.

LEGAL PERSPECTIVE

The farm will be registered by the community development department in Iganga District. It will
later be registered as a private limited company.

ECOLOGICAL PERSPECTIVE

The ecology of the surrounding environment is conducive for rearing goats. The temperatures,
rain fall and humidity have a positive bearing on the productivity of the farm. The conducive
environment is also ideal for growing of other plants on which the goats will feed.

DESIRABLE OPTIONS
A number of options will be considered at the farm other than rearing a parent stock. The other
options will include;

- Selling kids to other farmers

- Raising goats to maturity to be sold later for meat
- Acquisition of more land to expand the project
- Establishment of a goat depot for processing before marketing
- Selling goat skin to tannery industries

Products and services

The main product from the farm will be goat meat. The goats will be slaughtered, packed and
transported to the market. Other products like the skin will be preserved and sold to leather
tanning factories. Those interested in live goats will be allowed to buy from the farm.

Description of production process

There will be a parent stock that will be used for breeding. The kids will be transferred to other
paddocks after they have been nursed for 6- 8 weeks. In the paddock, the goats will be reared to
maturity. Those ready for sale will be kept in a separate paddock (depot) waiting to be
slaughtered or sold according to the market demand.

Marketing Strategy

The first market target will be from the surrounding communities. As the farm expands, external
markets will be sought. The demand for goats is everywhere but the products will be sold to
markets that will offer the highest prices. Decisions to slaughter or sell live goats will depend on
the price. The farm will in future get into contractual arrangements with big buyers to ensure a
stable market.

Advertising and promotion

At the onset, the products will be promoted through advertisements in local media. The website
for Seed Africa Foundation for Economic Development will be used to solicit for the global
market. Direct contacts with potential buyers will be made either through phone calls, personal
contacts or any other communication media. As time goes by, there will not be any need for
advertising, when the farm reaches take off stage.

Distribution strategy

The farm products will be prepared and packed at the farm and then transported to the market.
This will eliminate middle men in the value chain and will enhance quality assurance.
Distribution channels will be set up as and when required. The farm will purchase vehicles for
transportation.
Competitor analysis

To date, goat rearing in the surrounding areas is at small subsistence level. There are no large
scale investments in goat rearing. There are no likely competitors in the short run.

However, the enterprise may be adopted by other farmers. The farm will be used to train other
farmers to join the business. Collective marketing will then be used. The farm will act as a
central place for products from other farmers. The would be competitors will be turned into
partners. The farm will act as a model from which others will learn from hence giving it a
competitive advantage.

FINANCIAL PROPOSAL

Financial resources for the farm will be raised from different sources including; personal savings,
donations and bank loans. At the onset, set up costs will take the biggest part of the financial
resources.

The breeding farm will comprise of 50 female goats, reared under semi intensive method. These
will be local purchase from local markets.

The land will be fenced off and different paddocks will be separated. Connection of water and
construction of a shelter will be key at the beginning. The various costs will be as summarized
below;

ITEM AMOUNT
Purchase of20 acres of land @ 1,500,000 30,000,000
land
Shelter 5,000,000
Fence 5,000,000
Construction of a water point 3,000,000
Purchase of 50 goats @ 50,000 2,500,000
Purchase of 4 Boer goats 1,000,000
Labor costs (for first 6 months) 2,000,000
Veterinary expenses 1,000,000
Miscellaneous 1,000,000
TOTAL 50,500,000

This is equivalent to 25,000 US Dollars.

NOTE: These are general estimates. Details of each item will be done later.

REVENUE ESTIMATES

Each goat may produce twice a year. If 50 goats are bought, 100 kids may be produced in a year.
Each goat may be sold after 6 months at 60,000 Uganda shillings
OTHER FACTS ABOUT GOAT REARING

- A goat matures in 6 months

- Conception may be 14 days after delivery
- Average cost of a goat at 6 months costs 60,000=
- A Boer goat is at 250,000=
- Each goat occupies a space of 4dcm2
- Common pastures for goats include; chloris gayana, green leaf desmodium, silver leaf
desmodium and central sema
- 1 acre of land can sustainably hold 20 goats under extensive method
- Pregnancy takes 4 months.