Goat raising in the Philippines presents a promising opportunity for small to medium-scale farmers seeking sustainable income through livestock production. With the increasing demand for goat meat (chevon) and dairy products, coupled with government support and technical training, this sector offers both profitability and sustainability. This feasibility study on goat raising provides a detailed analysis of the costs, expenses, and projected gross and net income for over two years, using current data and realistic assumptions.
1. Initial Investment (Capital Expenditure)
Land Acquisition
- Size: Approximately 2 hectares (20,000 square meters) suitable for grazing and housing.
- Cost: PHP 100,000 – PHP 200,000, depending on location and land quality.
Goat Housing and Infrastructure
- Design: Raised floor housing to ensure cleanliness and protection from predators.
- Materials: Use of locally available materials such as bamboo, ipil-ipil, nipa palm, and cogon grass.
- Cost: PHP 50,000 – PHP 100,000 for construction and fencing.
Livestock Acquisition
- Stock: Purchase of 30 goats (does and bucks) for breeding and milk production.
- Cost per goat: PHP 3,000 – PHP 5,000, totaling PHP 90,000 – PHP 150,000.
Equipment and Supplies
- Items: Feeders, water containers, milking equipment, and tools.
- Cost: PHP 10,000 – PHP 20,000.
Total Initial Investment: PHP 250,000 – PHP 470,000.
2. Annual Operating Expenses
Feed and Nutrition
- Type: Combination of natural grazing and supplemental feeding.
- Cost per goat per year: PHP 3,000 – PHP 5,000.
- Total for 30 goats: PHP 90,000 – PHP 150,000.
Healthcare and Veterinary Services
- Services: Vaccinations, deworming, and regular health check-ups.
- Cost per goat per year: PHP 500 – PHP 1,000.
- Total for 30 goats: PHP 15,000 – PHP 30,000.
Labor
- Personnel: One full-time farm worker for daily operations.
- Salary: PHP 10,000 – PHP 15,000 per month.
- Annual cost: PHP 120,000 – PHP 180,000.
Utilities and Miscellaneous Costs
- Items: Water, electricity, maintenance of equipment and infrastructure.
- Annual cost: PHP 20,000 – PHP 30,000.
Total Annual Operating Expenses: PHP 245,000 – PHP 390,000.
3. Revenue Generation
Goat Meat (Chevon) Production
- Average weight per goat: 50 kg.
- Meat yield: Approximately 50% of live weight, totaling 25 kg per goat.
- Total meat production for 30 goats: 750 kg per year.
- Market price per kg: PHP 250 – PHP 300.
- Annual revenue from meat: PHP 187,500 – PHP 225,000.
Goat Milk Production
- Average milk yield per doe per day: 2 liters.
- Total milk production per year: 2 liters x 365 days x 30 does = 21,900 liters.
- Market price per liter: PHP 95.27.
- Annual revenue from milk: PHP 2,085,413.
Total Annual Revenue: PHP 2,272,913 – PHP 2,310,413.
4. Projected Gross and Net Income
Year 1
- Total Revenue: PHP 2,310,413.
- Total Expenses: PHP 390,000.
- Net Income: PHP 1,920,413.
Year 2
- Assumptions: Increase in herd size to 40 goats and improved production efficiency.
- Total Revenue: PHP 3,080,000.
- Total Expenses: PHP 450,000.
- Net Income: PHP 2,630,000.
5. Return on Investment (ROI)
- Year 1 ROI: (PHP 1,920,413 / PHP 470,000) x 100 = 408.5%.
- Year 2 ROI: (PHP 2,630,000 / PHP 470,000) x 100 = 559.6%.
These figures indicate a highly profitable venture, with the initial investment recovered within the first year and substantial returns in the second year.
6. Break-even Analysis
Considering the initial investment of PHP 470,000 and annual operating expenses of PHP 390,000, the break-even point is achieved within the first year of operation, primarily through revenue from meat and milk sales.
7. Risk Assessment and Mitigation Strategies
Risks
- Disease outbreaks: Can lead to significant losses.
- Market price fluctuations: Affect revenue from meat and milk.
- Natural disasters: Impact infrastructure and livestock.
Mitigation Strategies
- Regular veterinary care: Implement vaccination and health monitoring programs.
- Diversified marketing: Establish multiple sales channels to stabilize income.
- Insurance coverage: Protect assets and livestock against unforeseen events.
8. Conclusion
Goat raising business in the Philippines offers a lucrative opportunity for farmers, with a relatively low initial investment and high return potential. By adhering to best practices in animal husbandry, maintaining efficient operations, and staying informed about market trends, farmers can achieve sustainable profitability in this sector.