ADS-Goatery

Nalanda

Area Development Scheme: Goat Farming

1. Introduction:
i) Agriculture Scenario of Nalanda district:
Nalanda district falls under Middle Gangetic Plains agro climatic region having
alluvial soil and support crops like Paddy, Wheat, Maize, Potato etc. The economy of
district is pivoted around Agriculture but other supporting activities like Goatery
Development, Fish Capture & Culture, Big wheel based cradle, leather shoes making,
Khaza making etc are widely practiced in the district.
ii) Role of Goatery and its importance in doubling the income of farmers:
The district is beset with very large number of small and marginal farmers. The
average size of land holding is very less. Therefore, Goat Farming has the potential of
providing additional income of the farmers. This Sector has also highest potential for
rural self-employment generation at the lowest investment per unit possible.
Goatery is an important source of income for the farmers / rural households as an
activity allied to agriculture as well as an independent commercial activity. Livestock,
on an average, contributes about 12 per cent of farmers’ income in India, and for
small and marginal farmers and landless labourers it is 36 per cent. Furthermore,
while farmers’ income is growing at 3.5 per cent annually, income from livestock is
growing at about 14.5 per cent. Therefore, in order to double the income of
farmers, it is imperative to focus on the Goatery sector.
iii) Charchteristic of Goat farming in Nalanda district:
 Goat rearing activity is pursued by many poor families in rural areas in the
district.
 The average number of goats in the range of 2-3 per goat rearing family. This act
as an additional source of income. However, goat rearing is yet to develop on a
commercial basis in the district.
 The climate and economic condition of the district is suitable for goat farming.
 Goat is acting like a poor man’s cow in the district. Women do play an active role
in goat rearing.
 There is no distinct breed of goat in Bihar. Most of the goats available here belong
to the Black Bengal type and their crosses with different breeds of Indian origin.
 Marketing of goat is done by the unorganised sector and middlemen.
 Goats are also used in ceremonial feastings like Marriage, Holi, Durga Puja,
Bakrid etc. Goat rearing helps the poor families for making payment of social
dues and hence it is said to be the ATM Card for the poor section of the people.
 Little care is taken to prevent diseases of goat. No vaccination of FMD & PPR is
given.
 Veterinary support from State Animal Husbandry Department is required.
 In order to goat rearing, trainings are conducted by R-SETI, in the district. And
people are also extended training in State as well as out side the state by ATMA
who desired to pursuing goat rearing.
iv) Reason for selecting Goatery as Area Development Scheme:
 Goat is a versatile animal which thrives well in every circumstances and at low
cost of feeding.
 Farmers in the district are in habit of rearing goat from very ancient times and at
present even, it is the choice of poor section of people in the district. It is also
1
 ADS-Goatery
Nalanda

known as the poor man’s cow.

 Rearing of goat is easy and it can be kept with little expenses. Goat has the ability
to survive on little vegetation and grass.
 The rearing of Goat is an important economic activity allied to agriculture to
generate additional income and self employment to rural poor especially the BPL
families. With little expenses and involving the women labour, goat rearing is an
additional source of income for the poor.
 Goats are being reared by farmers / SHG members in the district in view of the
low investment, reduced risk, capacity to use local feeds and easy management by
family members.
 This sector has tremendous potential for employment generation and poverty
reduction. Further, there always remains the demand for goat meat, therefore,
there is no issues related to its marketing.
 There is a wide gap between production and demand of meat in district. There is
scope for increasing or scaling up meat production in the district through creating
awareness among the farmers about the scientific goat rearing, breeding, feeding
and health care which will improve the meat production in the district.
 85% farmers of the district falls under small and marginal farmer category and
can take up Goat farming activity with a little capital investment and use their
labour productively for additional income.
 The following initiatives by Govt. of India/Govt. of Bihar supporting goatery
activities have been taken into account while considering goatery development
under Area Development Scheme.
 National Livestock Mission, a central sector credit linked subsidy scheme, is being
operated through NABARD to provide subsidy @25%-33.33% to eligible
farmers/entrepreneurs for taking up goatery activity.
 Govt. of Bihar under “ Integrated Goat and Sheep Development Programme”
provides subsidy @50% to eligible farmers/entrepreneurs for establishment of
Goat farm.
Based on the factors stated above and analysis of Primary and Secondary data of
different potential agricultural activities in the state goat farming has been identified
as one of the most potential sector for capital formation in agriculture in the district.
An analysis of production gap, banking network, backward forward linkages
potential available in different districts of the State Nalanda district has been
identified as potential district for implementation of Area Development Scheme.
2. Forward and backward linkages:
i) Availability of Goat and selection of breeds:
Availability of good quality Goat is one of the major constraints affecting credit
support for goat farming in the district. The good quality goat therefore can be
purchased from neighboring West Bengal and also from other States viz., Uttar-
Pradesh & Haryana.
Govt. of Bihar under Breed Development Programme has selected Black-Bengal as
suitable variety for Bihar. However, Indigenous breed and Jamunapari breed may
also be considered for financing under ADS in the district. The criteria for selection
of Goat breeds are as under:

2
 ADS-Goatery
Nalanda

Does
 Should have kidding size of 2- 3 kids.
 Kidding interval 8 months.
 Should mature at 6- 9 months.
 Twinning 60%.
 No. of kidding per year- 1.5
Bucks
 Tall with broad chest and slender body
 matures at age of 9- 12 months
 Select kids with good body weight at 6 months of age
 select from dam of 2- 3 kidding size
Indigenous breed:
The indigenous breeds are well adapted to their respective environment is selected.
Depending on the objective, meat or milk, the breeds are selected so as to earn
maximum profits. Also the selection of the breed well adapted to respective
environment is made.
Black Bengal Breed
Black-Bengal goat breed is an ideal breed for commercial rearing. This breed is
known for good productivity. It is used for both milk and meat production. This
breed is ideal for rearing in middle Gangetic plains. Black Bengal goats are medium
sized animals with compact body. These goats are prolific with 60% twining rate.
Colour of this breed is generally black with white/ brown spots. Horns are medium
length. Udder is well developed with conical teats. These goats are good producer of
milk. Average milk yield is 0.8 liters for day and lactation length is 110 days. Kid
mortality is low in this breed due to sufficient milk production Age at first kidding of
these goats is 11-13 months. In India these goats are found in West Bengal and Bihar.
Jamunapari Breed:
Jamunapari is also suited for the district considering its availability from Uttar
Pradesh. This breed originated from Indian sub-continent. It is a very good breed for
commercial farming. It can be used both for milk and meat production. Home tract
of this breed is between Jamuna, Ganges and Chambal Rivers of Uttar Pradesh. Daily
milk yield of Jamunapari varies from 1.8 to 2 liters. This breed is not very prolific.
Twining is only 40% and single birth is 60%. Kidding interval is about one year. This
is a heavy goat breed. Adult male goat weighs about 55-65 kg and female 45-55 Kg.
Colour of this breed is white brown and mixed colour. Ears are long and drooping.
Udder is well developed and teats are long, legs are long with long hair on back thigh.
Horns are short and backwardly directed. Nose is highly convex with a tuft of hair on
it. This breed loves browsing and spends about eight hours in grazing. Semi
intensive system of rearing is best suited for this breed. This breed is mostly used for
milk production.
ii) Infrastructure for veterinary services:
There are 24 veterinary hospital and 26 AI centres run by state Govt. in the district.
02 AI centres are in working conditions. 44 field Vetrinary Centre is also in the
district. Vaishal-Patliputra Dugdh Utpadak Sahkari Sangh has organised 19 AI
Centres and 4 cluster AI centres among milk coop societies.
3
 ADS-Goatery
Nalanda

 Eleven Blocks are having Block Animal Husbandry officers whereas

district is headed by DAHO.
 Some private AI centers are also operating in the district.
 Medicines and Vaccines are available at all Block Headquarters in private
shops.
The gap in requirement of Veterinary Hospitals and AI centers could be partly
bridged through RIDF assistance for new centers and also by encouraging private
veterinary clinics and private AI centers under the scheme for Agriclinics and
Agribusiness centers through institutional finance involving unemployed veterinary
graduates.
This will be a supplementary measure to the long term planned programmes of AH
Department of opening new centers and up gradation of existing centers. AI centers
involving diploma holders / Paravets could also be promoted by imparting training
through any suitable agency. In the district many self-help groups are also involved
in goatery.

iii) Feed and fodder

With a total production of rice, wheat and maize, availability of dry fodder does not
appear to be a constraint in the district. However, availability of green fodder is less
than the required. There is negligible land under pasture/grazing in the district.
Cultivation of fodder as a commercial activity is not in practice in the district.
Further, it has been reported by the District Agricultural Department and AH
Department that the preservation of green fodder in the form of silage or hay is not
generally practiced by the farmers. Concentrate cattle feed is available through
private agents in the districts and farmers also prepare concentrate mixture by
purchasing the ingredients locally. Cultivation and preservation of fodder can be
promoted among the farmers in district.
iv) Marketing infrastructure
There is no organized goat market in the district. Marketing of goat is mainly done by
unorganised sector and middlemen. Requirement of goat meat increased during
ceremonial feastings like Marriage, Holi, Durga Puja, Bakrid etc. There is a wide gap
betwwen production and demand of meat, hence marketing is not a problem in the
district. However JLG members in association with NGOs/Jeevika will form a society
of goat producers at Panchayat level. Goat Producers Society will arrange a weekly
market and invite traders to participate in that.

3. Selection of Area :
Nalanda district of Bihar is located in Middle Gangetic Plains. Livelihood security is
highly vulnerable in this region. Large number of the human population migrates in
search of employment. Thus, livestock is an important source of livelihood
contributing to household income, employment and nutritional security. In Nalanda
districts, farmers have adopted mixed farming system (crop- livestock) to counter
frequent crop failures. Among livestock, goat is most common and is reared by rural
households, irrespective of landholding size.
Goat farming, besides assured income, employment and nutrition, supports crop
production by providing cash for the purchase of critical inputs in financial distress
4
 ADS-Goatery
Nalanda

and risk aversion in case of crop failure. Therefore, goat has one of the most inclusive
growth rates among livestock. In the mixed species grazing system, goats browse on
plants which are less preferred by other livestock species and thus add flexibility to
the management of livestock.
Goat farming activities are adopted in all villages of 06 blocks of Nalanda district.
Goatery Project under Area Development Scheme have been selected to implement
in all 06 blocks.
Further, Jeevika is promoting SHGs in these blocks and also supporting its members
in taking up goatery activities.
4. Selection of the beneficiaries:
The women members from Jeevika SHGs or NGO promoted JLGs may be given
priority by the bankers for financing. Implementing bank have the sole discretion for
selection of borrowers as per their norms, however to facilitate the process of
financing the units Animal Husbandry Department may provide the list of the
perspective borrowers to concerned Branch Manager implementing ADS.
(ii) Unit Size:
Unit size of 10+1, 20+1, 40+2 may be adopted in the project, however bankers are
free to finance units of other sizes also as per the technical feasibility and financial
viability of the project.
5. Capacity building of the beneficiaries
Before starting a Goat farm the entrepreneurs/ farmers are advised to
undergo training on goat farming. They can contact Local Animal Husbandry
Department staffs/Veterinary College/agriculture University etc. for the purpose.
They should also visit progressive Goat farmers and government/ agricultural
university goat farm in the locality. They must check the following points before
starting a goat farm.
1. Availability of good quality Parent stock in the locality
2. Marketing facility for goat & goat meat
3. Nearness of farm to veterinary hospital/Livestock Aid center
4. Availability of concentrates, fodder & medicine in that locality.
Entrepreneurs/farmers/beneficiaries of the district can get Goat farming training
from RSETI situated at Nalanda and Krishi Vigyan Kendra, Harnaut.
6. Techno economic assumptions:
Goat meat has no religious inhibitions and is consumed by all the religions and races
in the country. Goat milk is source of cheap protein for the poor people and has
medicinal properties. Goats are also major sources of leather and leather products.
The indigenous breeds are well adapted to their respective environment is selected.
Depending on the objective, meat or milk, the breeds are selected so as to earn
maximum profits. Also the selection of the breed well adapted to respective
environment is made. The main breeds of goats available in the district are Black
Bengal and Jamuna Pari.

Concentrate feeding months for kids and sale schedule of kids ( Goat)
S.N Year I II III IV V VI
5
 ADS-Goatery
Nalanda

1 Kidding months 8 16&24 32 40 & 48 56 64 & 72

2 Kidding No. I II & III IV V & VI VII VIII &
IX
3 No. of kids born 13 13+13 13 13+13 13 13+13
4 Mortality 2 4 2 4 2 4
5 Kid conc feeding months 0 2 1 2 1 2
6 Sale months - 16&24 32 40&48 56 64 &72
7 No. of kids to be sold
8 Bucklings 11 6 11 5 11
9 Doelings 9 3 9 4 9
Feeding schedule and cost of feeding are as under:

S.N Particulars Lactation Period Dry Period

Quantity (Kg) Cost (Rs.) Quantity (Kg) Cost (Rs.)
I Concentrate Feed 0.40 8.00 0.3 4.00
II Green Feeder 3.5 to 5.0 10.00- 3.5 to 5.0 10.00-15.00
15.00
Source: AH Department/Goat Farmer
The percentage of quantity of concentrate feed (dry feeder) per kilogram is given
below:
S.N Particulars Lactation Period Dry Period
Percent Cost Percent Cost
of (Rs.) of (Rs.)
Quantity Per kg Quantity Per kg
per Kg per Kg
I Gram 15.0 12.00 7.5 12.00
Ii Maize 37.0 14.00 18.5 14.00
Iii Groundnut Cake 25.0 25.00 12.5 25.00
Iv Wheat Bran 20.0 14.00 10.0 14.00
V Mineral Salt 2.5 - 1.25 -
Vi Salt 0.5 - 0.25 -
Vii Calcium
Source: AH Department/Goat Farmer

Arrangements for insurance and the cost of insurance

Goats can be insured from 4 months of age through Banks/General Insurance
companies. Veterinary doctor of the nearby hospital is contacted and the health
certificates of the purchased animals are being made available. Health certificate is
being taken to the bank for the insurance of the animal. Bank then gives tags for the
animal by which animal gets tagged. Insurance can be claimed if death due to
accident or diseases. At present, the insurance of goat depend on the purchase cost
of the goat. The schedule of insurance premium of goat is as under:

S.N Goat Cost (Rs.) Insurance Premium

(Rs.)/year
1 1000.00 6.00
2 3000.00 18.00
3 5000.00 29.00
4 6000.00 35.00
6
 ADS-Goatery
Nalanda

5 10000.00 58.00
Source: AH Department/Oriental Insurance Co.
Cost of vaccination and disease management / control
Goats frequently suffer from overgrown feet, a condition which causes much
unnecessary discomfort and even deformity and arthritis old age. These conditions
can be prevented by pairing the hooves when they become overgrown. Goats raised
in relative confinement and on small acreages may also require more frequent
trimmings than goats raised in vast pastures. Generally, foot trimming should be
done on an as needed basis. A properly trimmed hoof should look like that of a
newborn kid.
DEWORMIING
 Before breeding the doe should be dewormed. Those goats affected with worm
infestation are lean and dull.
 Kids should be dewormed at one month of age. The life cycle of worms is three
weeks, so de-worming again at two months of age is recommended
 Pregnant does should be dewormed 2-3 weeks before kidding.
 Does in early pregnancy (up to 2 months) should not be dewormed to avoid
abortion.
Cost of Labour:
The cost of labour (small Sheep & goat units up to 20+2 animals) are being managed
by family labour. Larger dry units requires one labour for every 20-22 animals.

7. Project cost for goat unit:

The indicative unit size of 20+1 has been adopted in the project report. However,
bankers are free to finance other size also as per the technical feasibility and financial
viability of the project. The details of project cost for goat unit (20+1) are as under:

S.N Particulars Unit Cost No. of Cost

(Rs.) Units (Rs.)
A. Capital Cost
1 Cost of Does (20 animals @ Rs.4700/- 4700 20 94000
each)
2 Cost of Buck 8500 1 8500
3 Shed for Adults (Buck-20 [Link]; Doe- /[Link].
15 [Link].)
4 For Buck (12 month) (Shed with local 100 20 2000
material)
5 For Doe & Kids (8-9 month) 100 300 30000
6 Equipments 150 21 3150
7 Transportation 80 21 1680
Sub Total 139330

B. Working Capital
1 Feeding for one cycle
2 Fodder cultivation @ per acre 10000 0.5 5000
3 Supplementary con feed (per breeding @/kg 20
cycle)
a Bucks- 10 kg/month for 1 months 200
B Does-9 kg/month for 1 months 3600
C Kids-4 kg/month for 1 month 696
7
 ADS-Goatery
Nalanda

4 Veterinary aid @Rs.20/animal/year 60 21 1260

5 Insurance cost for the adults (4% cost 4100
of adults)
6 Labour cost @ 1month 4800
Sub Total 19656

Total Financial Outlay (A+B) 158986

Say 159000
Margin money (10%) 15900
Bank Loan 143100

8. Banking network & Trends in credit flow:

The Lead Bank of the district is Punjab National Bank. As on 31 March 2017, there
are 226 branches of different banks operating in the district (Commercial Bank 101,
RRB – 104 and Co0perative Bank – 12, Private Bank – 6 and LDB - 3).
9. Financing Agencies:
Bank branches of selected blocks.

10. Physical and financial programme:

(Amt. in lakh)
S.N District Blocks Name Uni No. TFO Bank Margi
. of the t of Loan n
Bank Cos Unit (90%) (10%)
t s
1. Nalanda Ashtha All 1.59 50 79.50 71.55 7.95
wan Banks
2. -Do- Sarmera -Do- 1.59 50 79.50 71.55 7.95
3. -Do- Islampu -Do- 1.59 100 159.00 143.10 15.90
r
4. -Do- Ekangar -Do- 1.59 80 127.20 114.48 12.72
sarai
5. -Do- Harnaut -Do- 1.59 50 79.50 71.55 7.95
6. -Do- Thartha -Do- 1.59 50 79.50 71.55 7.95
ri
380 604.20 543.78 60.42

11. Project Profitability: 10. Project Profitability:

The project profitability of goat farming for six years has been below:

S.N Particulars / Years I II III IV V VI

I. Income (Rs.)
By Sale of Male kids 0 49500 108000 58500 54000 108000
By sale of female kid 0 24500 70000 31500 28000 70000
By sale of culled does 0 6000 6000 6000 6000 6000
From sale of manure 1050 1050 1050 1050 1050 1050
Total 1050 81050 185050 97050 89050 185050

II Expenditure (Rs.)
Concentrate Feed- 5040 5040 5040 5040 5040
Adult
8
 ADS-Goatery
Nalanda

Concentrate Feed- 2592 6336 3168 2880 6336

Kids
Insurance 4100 4100 4100 4100 4100
Veterinary Aid 1260 1260 1260 1260 1260
Total Expenditure 12992 16736 13568 13280 16736
Net Profit (Rs.) 1050 68058 168314 83482 75770 168314

12. Financial Analysis:

The financial analysis for a period of six years are as detailed below:

[Link]. Particulars / I II III IV V VI

Years
I. Cost (Rs.)
Capital Cost 159000
Recurring Cost 0 12992 16736 13568 13280 16736
Total Cost 159000 12992 16736 13568 13280 16736
II Benefits (Rs.) 1050 81050 185050 97050 89050 185050
Total Benefits 1050 81050 185050 97050 89050 221239
Net Benefits 187950 68058 168314 83482 75770 204503
Discount Factor 0.877 0.769 0.674 0.592 0.519 0.455
Net Present 172500
Value
Benefit Cost Ratio (BCR) 1.873:1
Internal Rate of Return (IRR) of the Scheme 47%

13. Repayment Period:

The repayment period at borrower level (borrower to bank) will depend upon the
nature of activity and cash flow and will vary between 5 to 7 years and maximum 9
years. Grace period may vary from 1-2 years months in case of Goatery farms (to be
decided by the financing bank as per the needs of individual projects). The bank may
adhere to the general terms and conditions of Goat financing in implementation of
ADS.
Repayment period has to be presented in detail in a tabular form as given below:
(Amount in Rs.)
Year Loan Interest Net Profit Principal Payment Net
Outstanding Instalments of Surplus
Interest
I 143100 17172 1050 0 17172 (-)16122
II 143100 17172 68058 28620 17172 18262
III 114480 13738 168314 28620 13738 125956
IV 85860 10303 83482 28620 10303 44559
V 57240 6869 75770 28620 6869 40281
VI 28620 3434 204503 28620 3434 172449

15. Implementation and Monitoring

i. Initial approval at the DCC level
ii. Block-wise allocation at BLBC meetings
9
 ADS-Goatery
Nalanda

iii. Review of the implementation in DCC and BLBC meetings

iv. Involvement of stakeholders’ agencies in review meetings for ensuring the
extension of support services committed by them.
v. The progress should be monitoring regularly in DCC/DLRC as an compulsory
Agenda
vi. A Sub-Committee of DCC/DLRC headed by LDM, DDM, CVO, Local Heads of
all the participating Banks, Expert from KVK and concerned Branch
Managers, may be formed and would be meeting quarterly to review and
monitor the progress.
16. Conclusion
Goat rearing is techno-economically viable income generating activity and suited for
rural entrepreneurs. ADS on Goat Farming is going to benefit the farmers in
doubling their income, increase in meat availability, increase in capital formation etc.
It will contribute in financing of 420 units and ground level credit flow of Rs. 543.78
lakh in six blocks.

10