Goat Fattening Farm

Pre-Feasibility Study
(Goat Fattening)
Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab
REGIONAL OFFICE
Sindh
REGIONAL OFFICE
Khyber Pakhtunkhwa
REGIONAL OFFICE
Balochistan
3rd Floor, Building No. 3,

Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk
5th Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A

Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@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
CONTACTS OF SUPPLIERS AND CONSULTANTS ..........................10

ANNEXURE ..................................................................................................12
14.1
14.2
14.3
14.4
14.5
15
Project Economics ..................................................................................................... 7

Project Financing ....................................................................................................... 7
Project Cost ................................................................................................................ 8
Space Requirement ................................................................................................... 8
Machinery, Equipment & Furniture ......................................................................... 9
Raw Material Requirements ..................................................................................... 9
Human Resource Requirement ............................................................................... 9
Revenue Generation ............................................................................................... 10
Other Costs ............................................................................................................... 10
Profit & Loss Statement .......................................................................................... 12

Balance Sheet .......................................................................................................... 13
Cash Flow Statement .............................................................................................. 14
Useful Project Management Tips .......................................................................... 15
Useful Links .............................................................................................................. 15
KEY ASSUMPTIONS .................................................................................16
Goat Fattening Farm
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
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
Goat Fattening Farm
PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs

in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up,
production, marketing, finance and business management.
The purpose of this document is to facilitate potential investors in goat fattening farm by
providing them with a general understanding of the business with the intention of
supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and its successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form the basis of investment decisions.
3
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)
Goat Fattening Farm
beneficiaries, through designated financial institutions, initially through National Bank of

Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small business loans upto 2 million with tenure up to 8 years, inclusive of 1 year grace
period and a debt: equity of 90: 10 will be disbursed to SME beneficiaries across
Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan,
Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).
5
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
BRIEF DESCRIPTION OF PROJECT & PRODUCT
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-
Goat Fattening Farm
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
Background knowledge and related experience of the entrepreneur in goat farm

operations.
Application of good husbandry practices such as timely feeding, watering and

vaccination to ensure animals health and disease-free environment.
Awareness of the supply and demand of goats in the market both for general
consumption and sacrificial purpose.
Efficient marketing of the project and bulk supply to wholesalers.
INSTALLED & OPERATIONAL CAPACITIES
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
GEOGRAPHICAL POTENTIAL FOR INVESTMENT
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
Goat Fattening Farm
11 GOAT FATTENING PROCESS
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.
Disease management: Timely vaccination against infectious diseases and timely

medication for endoparasitic infestations. Following is a tentative schedule for
vaccination;
Table 1: Tentative Vaccination Schedule
Goat Fattening Farm
FMD Vaccine
Start of spring
Duration of
Immunity
4 months
CPD vaccine
April-October
4 months
Anthrax spore vaccine

Goat pox vaccine
Entero-toxaemia vaccine
Pleuropneumonia vaccine
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
Selection of good productive animals and regular culling of uneconomical

animal.
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.
Regular technical assistance from the livestock professionals and experts.
12 PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of
goat fattening farm. Various cost and revenue related assumptions along with results of
the analysis are outlined in this section. The projected Income Statement, Cash Flow
Statement and Balance Sheet are attached as appendix.
12.1 Project Economics
The following table shows Internal Rate of Return (IRR) and payback period;
Table 2 - Project Economics
Description
Details
Internal Rate of Return (IRR)
35%
Payback Period (yrs)
3.60
Net Present Value (NPV)
Rs. 4,017,903
12.2 Project Financing

Following table provides details of the equity required and variables related to bank
loan;
Table 3: Project Financing
Description
Details
Total Equity (10%)
Rs. 218,721
7
Goat Fattening Farm
Bank Loan (90%)
Rs. 1,968,458
Markup to the Borrower (%age/annum)
8%
Tenure of the Loan (Years)
Grace period (Year)
12.3 Project Cost

Following requirements have been identified for operations of the proposed business.
Table 4: Capital Investment for the Project
Capital Investment
Amount (Rs.)
Machinery & equipment
162,500
Furniture & fixtures
15,000
Pre-operating costs
80,616
Total Capital Costs
258,116
Working Capital
Equipment spare part inventory
4,748
Raw material inventory (incl. cost of Goat)
856,779
Upfront building rent
88,648
Cash
340,385
Total Working Capital
1,290,560
Total Investment
1,548,676
12.4 Space Requirement

Following table shows area requirements of the proposed project;
Table 5: Space Requirement
Description
Management building
Shed for animals
Total Area (Sq.ft.)

150
2,640
Store
240
Attendants room
136
Dipping bath
50
Open paddock
5,280
Total Infrastructure
8,496
Goat Fattening Farm
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
Price /Unit (Rs.)
Total Cost (Rs.)
Chopper
30,000
30,000
Water pump and tank
30,000
30,000
Feeding mangers
15
3,000
45,000
Tubs
1,500
7,500
Hand carts
5,000
10,000
Movable weighing scale (3'x3'

Platform with capacity of 200 kg)
25,000
25,000
15,000
15,000
15,000
15,000
Miscellaneous
Total furniture
Lump sum
Total
177,500
12.6
Raw Material Requirements
Following table shows raw material requirements in first year of production;

Table 7: Cost of Material
Description
Unit
Rate (Rs.)
No.
Total Rs.
Cost of goats
Per goat
3,500
495
1,732,500
*Feed per goat
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
12.7 Human Resource Requirement

Table 8: Human Resource Requirement
Description
Owner/ Manager
No. of
Employees
Monthly Salary
(Rs.)
15,000
Annual Salary (Rs.)
180,000
Goat Fattening Farm
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
Fattened goats sold
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
ICI Pakistan Feed

63-Mozang Road Lahore
Tel. 042-36370042
Anmol Vanda
c/o Livestock and Dairy Development
Department, Govt. of Punjab, 16-Cooper
Road, Lahore
Ph: 042-99239819
Big Feed (PVT) Ltd.

2-A, Ahmad Block, New Garden Town,
Lahore
Tel. 042-35835374-35835373
Consultants
Prof. Dr. Muhammad Younas
Department of Livestock Management,
Faculty of Animal Husbandry, University
of Agriculture, Faisalabad, Pakistan
Ph: +92-41-9200161-170
Dr. Abdul Rehman

Director, Directorate of Small Ruminants,
Multan, L&DD, Punjab
Ph: 061-9210417
10
Goat Fattening Farm
Livestock and Dairy Development

Department, Govt. of Punjab,
16-Cooper Road, Lahore.
Toll free: 0800-78685, 0800-78686
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
Punjab Agriculture and Meat Company

(PAMCO)
5/8 Shaheen Complex, Egerton Road
Lahore
Ph: 042-36370661
11
Goat Fattening Farm
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
General administration & selling expenses

Administration expense
Administration benefits expense
Building rental
expense
Electricity
expense
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
Communications expense (phone, mobile, etc.)

Depreciation expense
Amortization of pre-operating costs
Amortization of legal, licensing, and training costs
Subtotal
Operating Income
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
Earnings Before Interest & Taxes
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
Interest expense on long term debt (Project Loan)

Interest expense on long term debt (Working Capital Loan)
Subtotal
Earnings Before Tax
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
Balance brought forward

Total profit available for appropriation
Dividend
Balance carried forward
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
12
14.2
Goat Fattening Farm
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
13
14.3
Goat Fattening Farm
Cash Flow Statement
Statement Summaries
SMEDA
Cash Flow Statement
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
Cash balance brought forward

Cash available for appropriation
Dividend
Cash carried forward
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
14
14.4
Goat Fattening Farm
Useful Project Management Tips
Technology
List of Machinery & Equipment: (As per Section 12.5)
Animal Selection:
Selection of disease free animals with good breed
characteristics, body conditions and health.
Feed, Vaccination and Medication: Should be procured from reputed and

reliable sources.
Energy Requirement: Should not be overestimated or installed in excess and

alternate source of energy for critical operations be arranged in advance
Machinery Suppliers: Should be asked for after sales services under the
contract with the machinery suppliers
Quality Assurance & Standards: Quality standards need to be defined on

the ear tags and a system of record keeping should be developed to check
them
Human Resources
List of Human Resource: (As per Section 12.7)
Adequacy & Competencies:

hired for the project.
Performance Based Remuneration:

Employees should be paid and
rewarded keeping in view their performance.
Training & Skill Development:

Encouraging training and skill of self &
employees through experts and exposure of best practices can be an asset for
business. Least cost options for Training and Skill Development (T&SD) may
be linked with compensation benefits and awards.
14.5
Skilled and experienced staff should be
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
15
Goat Fattening Farm
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk

Government of Balochistan, www.balochistan.gov.pk
Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
Government of Azad Jamu Kashmir, www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
Security Commission of Pakistan (SECP), www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
Punjab Board of Investment & Trade (PBIT), 23-Aikman Road, GOR-I, Lahore
Tel. 042-99205201, www.pbit.gop.pk
State Bank of Pakistan (SBP), www.sbp.org.pk
National Bank of Pakistan (NBP), www.nbp.com.pk
First Women Bank Limited (FWBL), www.fwbl.com.pk
All Pakistan Meat Exporters and Processors Association, Lahore,
www.apmepa.com
Punjab Agriculture and Meat Company (PAMCO), Lahore, www.pamco.bz
Pakistan Agricultural Research Council (PARC), Islamabad, Tel. 051-9203966
www.parc.gov.pk
University of Agriculture, Faisalabad, www.uaf.edu.pk
University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore,
www.uvas.edu.pk
Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 04299220140
Agribusiness Support Fund (ASF), Lahore, www.asf.org.pk
Directorate of Livestock Farms, L&DD, Lahore, Tel: 042-99201126-7
Livestock Experiment Station (LES), Dera Chahl Lahore, L&DD, Punjab, Tel: 04299239818, 99239819
Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: 0442661393
15 KEY ASSUMPTIONS
Table 11: Project Assumptions
Installed Capacity (No. of goats per batch)
220
No. of batches / year

Annual Installed Capacity (No. of goats)
Initial Capacity (%)
initial Capacity per year (No. of goats)
Maximum Capacity %
3
660
75
495
90
Maximum Capacity (No. of goats)
528
Capacity utilization Growth
2%
16
Goat Fattening Farm
Initial weight of young goat
10
Purchase Price Rs./ kg (live body weight)
350
Weight Gain (grams/ day)
120
Feeding Days
120
Feed/ TMR offered per animal
3 % of live body weight
Price of TMR (Rs/ kg)

Green fodder offered/ animal
23
5 % of live body weight
Price of green fodder Rs/kg

Live body weight (kgs/ animal) at selling time
Selling Price (Rs. / kg live body weight)
2
25
350
Purchase Price / kg (live)
3,500
Sale Price per animal in Yr-1
8,540
Space required (Covered Area/ animal) Sq. ft
15
Open space / animal (Sq. Ft.)
30
17

Goat Fattening Farm

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Pre-Feasibility Study

Small and Medium Enterprises Development Authority

3rd Floor, Building No. 3,

5th Floor, Bahria

Bungalow No. 15-A

CONTACTS OF SUPPLIERS AND CONSULTANTS ..........................10

Project Economics ..................................................................................................... 7

Profit & Loss Statement .......................................................................................... 12

KEY ASSUMPTIONS .................................................................................16