Thread by @miltonzhakata

1. #Economics of #GoatFarming. The prize of certain goats is a subject of constant bickering on local goat market. Unconvinced, some immediately quit the idea of #GoatFarming & thrilled some plunge with no due consideration whatsoever. BUT, Where is the Money.
#ZimAgricRising

1.1 To start, you simply need to define the objective of your goat enterprise.This will inform the breeding systems to be deployed, hence the costs of the animals to be introduced and later the value of the products that you will sale.
#Warning: LongThread Ahead.#ZimAgricRising

1.2. Making the above fundamental decision is crucial. It is a different ball game altogether when you produce pure breeds (goat seed production) Vs Cross breeding to produce mainly commercial goats for meat/milk production.
#ZimAgricRising #GoatFarming #GoatEconomics

2. Today, I focus on one aspect, commercial/meat #GoatFarming and how to overcome the fundamental & underlying problems in the Goat Value Chain (GVC) that often prevents you from earning as much, & in the process demostrate #profitability in #goatfarming.
#CeterisParibus

3 :To illustrate #goatfarming #profitability, I will build on a simple goat COMMERCIALISATION process anchored on an proven #valuechain business model, which if properly executed, to a greater extent guarantees real income getting down to you as a farmer. #goateconomics

4. Assuming you buy and start 50 local females goats (Does) & 1 local buck. These animals will cost [($40×50)+(1×$100) =$2,100]. Under normal circumstatnces, additional costs will be there, but minimum and manageable. Now assume all other things constant/#CeterisParibus 👇

4.1.Naturally 50 Does, breeding with the local Buck and assuming a kidding rate of 1.5/Doe/annum would produce 75 kids. These will take as much long as 2.5 -3 years to reach maturity and a Cold Dressed Mass (CDM)of approx 20kg/goat. #goateconomics 👇

👉If you were to do business this way, the 75 goats produced at the farm, you will either sale as live goats earning @ max $40×75 =$3,000 (#AFTER 2.5 yrs min).Or add value, slaughter, resale and earn slightly more: $3x75x20=$4,500. (Assuming a retail prize of $3/kg).👇

👉The above scenario would seem perfect, BUT unfortunately there is a proliferation of speculative and predatory middlemen who will buy the 75 goats at ridiculously low prices ($15-$20) & resale themselves @ higher prices ($40). The goat farmer is literally exploited.👇

👉To succed in #goatfarming you must UPGRADE the 50- local goat unit in both QUALITY and QUANTITY.
This is achievable through Crossing Breeding the 50 Does with a Pure Buck to make use of “hybrid vigour”- getting kids which perform better than their parents.👇

4.2. Upgrading Quality: Cross breeding 50 Does will still give you 75 kids. However these will likely have superior growth qualities such as birth weight (approx 3kg), fast growth rate and high meat yield above 50%. This will translate to economic value.👇

👉 The 75 kids will grow fast, reaching approx 15kg within (12-15 weeks) and 70-90kg in 9-12 months. For these improved goats slaughter yield of 60% is possible. Based on same assumptions, you will thus sale 75 goats with an ave. CDM of 54kg @ $3/kg = $12,150.👇

👉Upgrading QUALITY of goats, with same 50 local female goats, you are able to significantly INCREASE your income from $3,000 to $12,000 per production cycle & more importantly REDUCE by 50% the time you earn the income.(from 2/3 years to 9-12 months).

4.2 Upgrading QUANTITY: Upgrade your production in a way that you are able to consistently supply the required quantities at specified time intervals (e.g 25 slaughter goats/week). This is key as it helps towards building longstanding and mutually beneficial relationships.👇

👉To attain the QUANTITY aspects of the commercialisation process, you must increase the breeding goat population in order to sustain harvesting of slaughter stock or at least keep it at a minimum commercialisation threshold.👇

👉 To achieve you either (1) buy additional Does or you (2) retain females from the 75. With kidding rate of 1.5 kids/Doe/annum & assuming half the kids to be females, you will have aproximately 87 Does on the next breeding cycle although at the expense of foregone income.👇

Disclaimer: My #GoatEconomics is theoretical and one sided highlighting Where the Money Comes From BUT not addressing how you may loose it. You still need to do a detailed #CostBenefitAnalysis. #ZimAgricRising
#GoatFarming