Kamyab Jawan

Youth Entrepreneurship Scheme

Pre-Feasibility Study
Goat Fattening Farm

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
T el: (92 42) 111 111 456, Fax: (92 42) 36304926 -7
helpdesk@smeda.org.pk

REGIO NAL O FFICE REGIO NAL O FFICE REGIO NAL O FFICE REGIO NAL O FFICE
Punjab Sindh Khyber Pakhtunkhwa Balochistan
3 rd Floor, Building No. 3, 5 th Floor, Bahria Ground Floor Bungalow No. 15-A
Aiwan-e-Iqbal Complex, Complex II, M.T. Khan Road, State Life Building Chaman Housing Scheme
Egerton Road Lahore, Karachi. T he Mall, Peshawar. Airport Road, Quetta.
T el: (042) 111-111-456 T el: (021) 111-111-456 T el: (091) 111-111-456 T el: (081) 2831623, 2831702
Fax: (042) 36304926-7 Fax: (021) 35610572 Fax: (091) 5286908 Fax: (081) 2831922
helpdesk.punjab@smeda.org.pk helpdesk-khi@smeda.org.pk helpdesk-pew@smeda.org.pk helpdesk-qta@smeda.org.pk
Table of Contents
1. DISCLAIMER .............................................................................................................................................. 3
2. PURPOSE OF THE DOCUMENT .................................................................................................................... 3
3. INTRODUCTION TO SMEDA ........................................................................................................................ 4
4. INTRODUCTION TO SCHEME ...................................................................................................................... 4
5. EXECUTIVE SUMMARY............................................................................................................................... 5
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT ............................................................................................. 5
7. CRITICAL FACTORS ..................................................................................................................................... 5
8. INSTALLED & OPERATIONAL CAPACITIES .................................................................................................... 6
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT ........................................................................................... 6
10. POTENTIAL TARGET MARKETS / CITIES ................................................................................................... 6
11. GOAT FATTENING PROCESS.................................................................................................................... 6
12. PROJECT COST SUMMARY...................................................................................................................... 8
12.1. PROJECT ECONOMICS......................................................................................................................... 8
12.2. PROJECT FINANCING .......................................................................................................................... 8
12.3. PROJECT COST.................................................................................................................................... 8
12.4. SPACE REQUIREMENT ........................................................................................................................ 9
12.5. MACHINERY, EQUIPMENT & FURNITURE ............................................................................................ 9
12.6. RAW MATERIAL REQUIREMENTS ...................................................................................................... 10
12.7. HUMAN RESOURCE REQUIREMENT .................................................................................................. 10
12.8. REVENUE GENERATION .................................................................................................................... 10
12.9. OTHER COSTS................................................................................................................................... 10
13. CONTACTS OF SUPPLIERS AND CONSULTANTS...................................................................................... 11
14. ANNEXURE .......................................................................................................................................... 12
14.1 PROFIT & LOSS STATEMENT .................................................................................................................... 12
14.2 BALANCE SHEET ................................................................................................................................... 13
14.3 CASH FLOW STATEMENT......................................................................................................................... 14
14.5 USEFUL PROJECT MANAGEMENT TIPS ........................................................................................................ 15
14.5 USEFUL LINKS ...................................................................................................................................... 16
15. KEY ASSUMPTIONS .............................................................................................................................. 17
1. 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.

In case the document is intended to be used for loan application under any specified loan scheme,
respective scheme parameters are to be incorporated accordingly. In doing so, financial results
may vary from results shown in this document. For more information on services offered by
SMEDA, please contact our website: www.smeda.org.pk

2. 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 it’s
successful management.

Apart from carefully studying the whole document one must consider critical aspects provided later
on, which form the basis of investment decisions.
 Pre-Feasibility Study Goat Fattening Farm

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 ‘sectorial 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 s ervices 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 Minister’s ‘Kamyab Jawan – Youth Entrepreneurship Scheme’, for young entrepreneurs
between the age group of 21 - 45 years, is designed to provide subsidized financing through the
National Bank of Pakistan, Bank of Punjab and Bank of Khyber under the guidance and supervision
of the State Bank of Pakistan.

The loans will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber
Pakhtunkhwa, Balochistan, Gilgit Baltistan and Azad Jammu & Kashmir. The Program aims to
provide 25% of the loans to women entrepreneurs.

Loans provided through Kamyab Jawan Program are segregated in two tiers: Tier 1 loans fall in the
range of Rs. 100,000 to Rs. 500,000, with Debt: Equity 90:10 and 6% markup to borrower, and, Tier
2 loans are from Rs. 500,000 to Rs. 5 Million, with Debt: Equity 80:20 and 8% markup to borrower.
Both loans are for a period of upto 8 years with a grace period of 1 year.

Application forms are available both in branches and dedicated websites of National Bank of
Pakistan, Bank of Punjab and Bank of Khyber.
 Pre-Feasibility Study Goat Fattening Farm

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 120 - 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 660 goats per annum is suggested in this pre-feasibility study as a viable
economic size to enter this business. Total estimated investment of Rs. 2.31 million is required with
fixed investment of Rs. 0.51 million and working capital of Rs. 1.80 million (the working capital is for
one batch of goats). The Internal Rate of Return (IRR), Net Present Value (NPV) & payback period
of the project are 48%, Rs. 7.28 million and 2.23 years respectively. The proposed project is a sole-
proprietorship.

6. BRIEF DESCRIPTION OF PROJECT & PRODUCT

The proposed project is based on raising 660 goats per year in a farm in three production batches,
each having 220 goats in one batch of 120 days. 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 15 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 120 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 round market, however the demand
increases especially before occasions like Eid-ul- Azha, 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 animal’s 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.

 Pre-Feasibility Study Goat Fattening Farm

8. INSTALLED & OPERATIONAL CAPACITIES

The project will operate at 100% of its capacity in its first year of operations; hence, the farm will
start its operations with fattening of 660 goats. The farm will be operating on its maximum
production capacity of 660 goats (100% of installed capacity) from the very first 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. 500
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

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 12-15 kg at 6-8 months of age. Small and emaciated 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
 Pre-Feasibility Study Goat Fattening Farm

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
endo-parasitic infestations. Following is a tentative schedule for vaccination;

Table 1: Tentative Vaccination Schedule

Disease Vaccine Vaccination time Duration of

Immunity
Foot and Mouth FMD Vaccine Start of spring 4 months
Disease (FMD)
Contagious Pustular CPD vaccine April-October 4 months
Dermatitis (CPD)
Anthrax Anthrax spore vaccine March-April One year
Goat Pox Goat pox vaccine March-September 4 months
Entero-toxaemia Entero-toxaemia vaccine January- July Six months
Pleuro-pneumonia Pleuropneumonia vaccine October-November 4 months

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.

 Pre-Feasibility Study Goat Fattening Farm

12. PROJECT COST SUMMARY

Cost and revenue related assumptions along with results of the analysis are outlined in this section;
projected Income Statement, Cash Flow Statement and Balance Sheet are attached as Annexures.

12.1. Project Economics

Table 2: Project Economics

Description Details
Internal Rate of Return (IRR) 48%
Payback Period (yrs) 2.23
Net Present Value (NPV) Rs. 7,282,753

12.2. Project Financing

Following table provides details of equity required and variables related to bank loan;
Table 3: Project Financing

Description Details
Markup to the Borrower (%age/annum) 8%
Tenure of the Loan (Years) 8
Grace period (Year) 1
Debt (80%) Rs. 1,849,251
Equity (20%) Rs. 462,313

12.3. Project Cost

Following requirements have been identified for operations of the proposed business.
Table 4: Investment for the Project

Capital Investment Amount (Rs.)

Machinery & equipment 447,500
Furniture & fixtures 20,000
Office Equipment 5,000
Pre-operating costs 35,241
Total Capital Costs 507, 741
Working Capital
Raw material inventory (incl. cost of one lot of goats) 1,659,831
Upfront building rent (for one batch) 20,058
Cash 123,933
Total Working Capital 1,803,822
Total Investment 2,311,563
 Pre-Feasibility Study Goat Fattening Farm

12.4. Space Requirement

Following table shows area requirements of the proposed project;

Table 5: Space Requirement

Description Total Area (Sq.ft.)

Management building 150
Shed for animals 2,640
Store 240
Attendant’s room 136
Dipping bath 50
Open paddock 5,280
Total Infrastructure 8,496

The monthly rent of the building and infrastructure is estimated to be approximately Rs. 20,000/-

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 for fodder 1 60,000 60,000
Water pump and tank 1 80,000 80,000
Feeding mangers 15 10,000 150,000
Tubs 5 1,500 7,500
Hand carts 2 10,000 20,000
Movable weighing scale (3'x3'
1 100,000 100,000
Platform with capacity of 200 kg)
Miscellaneous farm utensils 30,000 30,000
Total furniture Lump sum 20,000 20,000
Mobile Phone 1 5,000 5,000
Total 472,500
 Pre-Feasibility Study Goat Fattening Farm

12.6. Raw Material Requirements

Table 7: Cost of Material

Description Unit Rate (Rs.) No. of Goats Total Rs.

Animal Purchase Per goat 6,750 660 4,455,000
*Feed (TMR) Per goat 2,231.71 660 1,472,930
Feed (Green Fodder) Per goat 797.04 660 526,046
Vaccination/ Medication Per goat 150.00 660 99,000
Total Cost 6,552,976
Note: Figures have been rounded off to the nearest decimal place.

12.7. Human Resource Requirement

Table 8: Human Resource Requirement

No. of Monthly Salary

Description Annual Salary (Rs.)
Employees (Rs.)
Farm Manager/ 1 25,000 300,000
Owner
Farm Attendants 3 17,500 630,000
Total Staff 4 930,000

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

First Year
Description Unit Sale Price Production Revenue in
Rs./Unit (Units) Year 1 (Rs.)

Selling of fattened Per goat 14,700 627* 9,216,900

goats
Total 9,216,900

* Out of total 660 goats, 33 are lost due to mortality @5% per annum.
The selling price is Rs 500/- per kg live body weight of goat.

12.9. Other Costs

Vaccination & medication cost which is assumed at Rs. 150 per animal. The transportation cost
required for freight of goats is estimated to be Rs. 50,000 per batch, communication charges are at
24,000 per annum. Cost of direct electricity is approx. Rs 10,300 per month and cost of machinery
repair and maintenance is Rs. 19,000/ year. These are costs in the first year of production.
 Pre-Feasibility Study Goat Fattening Farm

13. CONTACTS OF SUPPLIERS AND CONSULTANTS

Table 10: Table of Suppliers and Consultants

Feed Suppliers
Hi-Tech Feeds (Pvt.) Ltd. ICI Pakistan Feed
Address: 1-A, Shadman Chowk Jail Address: 63-Mozang Road Lahore
Road, Lahore Ph: 042-37564503 Ph: 042-36370042
Fax : 042-37564508
Anmol Vanda Big Feed (PVT) Ltd.
c/o Livestock and Dairy Development Address: 2-A, Ahmad Block, New Garden
Department, Govt. of Punjab, Town, Lahore
Address: 16-Cooper Road, Lahore Ph: 042-35835374-35835373
Ph: 042-99239819
Consultants
Department of Livestock Management, Dr. Abdul Rehman
Faculty of Animal Husbandry, University Director, Directorate of Small Ruminants, Multan,
of Agriculture, Faisalabad, Pakistan L&DD, Punjab
Ph: 041-9200161-170 Ph: 061-9210417

Livestock and Dairy Development Dean, Faculty of Animal Production and

Department, Govt. of Punjab, Technology, University of Veterinary and Animal
16-Cooper Road, Lahore. Sciences, Lahore
Toll free: 0800-78685, 0800-78686 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 Punjab Agriculture and Meat Company
Chairman (PAMCO)
Red Cow Meat Products of Pakistan 5/8 Shaheen Complex, Egerton Road
125/ 13-B-1, Township, Lahore. Lahore.
Ph: 042-35112603 Ph: 042-36370661
All Pakistan Meat Processors and
Exporters Association (APMEPA)
Address: 177-B, Johar Town Lahore.
Ph: 042-35169450-51
Fax: 042-35169449
Email: info@apmepa.com
Pre-Feasibility Study Goat Fattening
Farm

14. ANNEXURE

14.1 Profit & Loss Statement

Statement Summaries SM EDA

I ncome Statement
Rs. in actuals
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Revenue 9,216,900 10,138,590 11,152,449 12,267,694 13,494,463 14,843,910 16,328,301 17,961,131 19,757,244 21,732,968
Cost of Goods Sold
Feed & Vaccination Cost 2,097,976 2,307,774 2,538,551 2,792,406 3,071,647 3,378,812 3,716,693 4,088,362 4,497,199 4,946,918
Cost of Goat 4,455,000 4,900,500 5,390,550 5,929,605 6,522,566 7,174,822 7,892,304 8,681,535 9,549,688 10,504,657
Direct Labor 930,000 1,023,000 1,125,300 1,237,830 1,361,613 1,497,774 1,647,552 1,812,307 1,993,538 2,192,891
Inward Transportation Cost of Goats 150,000 165,000 181,500 199,650 219,615 241,577 265,734 292,308 321,538 353,692
Repair & Maintenance 19,000 20,900 22,990 25,289 27,818 30,600 33,660 37,026 40,728 44,801
Utilities 123,500 135,850 149,435 164,379 180,816 198,898 218,788 240,667 264,733 291,207
Total Cost of Sales 7,775,476 8,553,024 9,408,326 10,349,159 11,384,075 12,522,482 13,774,731 15,152,204 16,667,424 18,334,166
Gross Profit 1,441,424 1,585,566 1,744,123 1,918,535 2,110,388 2,321,427 2,553,570 2,808,927 3,089,820 3,398,802

General administration & selling expenses

Administration expense - - - - - - - - - -
Rental expense 240,696 264,766 291,242 320,366 352,403 387,643 426,408 469,048 515,953 567,549
Utilities expense - - - - - - - - - -
Travelling & Comm. expense (phone, fax, etc.) 24,000 26,400 29,040 31,944 35,138 38,652 42,517 46,769 51,446 56,591
Office vehicles running expense - - - - - - - - - -
Office expenses (stationary, etc.) - - - - - - - - - -
Promotional expense - - - - - - - - - -
Insurance expense - - - - - - - - - -
Professional fees (legal, audit, etc.) - - - - - - - - - -
Depreciation expense 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250
Amortization expense 7,048 7,048 7,048 7,048 7,048 - - - - -
Property tax expense - - - - - - - - - -
Miscellaneous expense - - - - - - - - - -
Subtotal 318,994 345,464 374,580 406,609 441,840 473,546 516,175 563,068 614,649 671,389
Operating Income 1,122,429 1,240,102 1,369,542 1,511,926 1,668,549 1,847,882 2,037,395 2,245,859 2,475,170 2,727,412

Other income - - - - - - - - - -
Gain / (loss) on sale of assets - - - - - - - - - -
Earnings Before Interest & Taxes 1,122,429 1,240,102 1,369,542 1,511,926 1,668,549 1,847,882 2,037,395 2,245,859 2,475,170 2,727,412

Interest expense 153,487 140,519 123,474 105,015 85,024 63,374 39,926 14,533 - -
Earnings Before Tax 968,943 1,099,583 1,246,068 1,406,911 1,583,525 1,784,508 1,997,468 2,231,326 2,475,170 2,727,412

Tax 46,894 59,958 76,910 101,036 127,529 157,676 189,620 224,699 265,034 315,482
NET PROFI T/(LOSS) AFTER TAX 922,048 1,039,625 1,169,158 1,305,874 1,455,996 1,626,832 1,807,848 2,006,628 2,210,136 2,411,930

Balance brought forward 922,048 1,961,674 3,130,832 4,436,706 5,892,702 7,519,534 9,327,382 11,334,010 13,544,146
Total profit available for appropriation 922,048 1,961,674 3,130,832 4,436,706 5,892,702 7,519,534 9,327,382 11,334,010 13,544,146 15,956,076
Dividend - - - - - - - - - -
Balance carried forward 922,048 1,961,674 3,130,832 4,436,706 5,892,702 7,519,534 9,327,382 11,334,010 13,544,146 15,956,076

Small and Medium Enterprises Development Authority (SMEDA) 12

Pre-Feasibility Study Goat Fattening
Farm
14.2 Balance Sheet

Statement Summaries SM EDA

Balance Sheet
Rs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Assets
Current assets
Cash & Bank 123,933 1,149,221 1,718,119 2,334,007 2,992,241 3,685,753 4,404,390 5,134,116 5,856,014 6,890,942 18,620,065
Accounts receivable - - - - - - - - - - -
Finished goods inventory - - - - - - - - - - -
Equipment spare part inventory - - - - - - - - - - -
Raw material inventory 1,659,831 2,008,396 2,430,159 2,940,493 3,557,996 4,305,175 5,209,262 6,303,207 7,626,880 9,228,525 -
Pre-paid annual land lease - - - - - - - - - - -
Pre-paid building rent 20,058 22,064 24,270 26,697 29,367 32,304 35,534 39,087 42,996 47,296 -
Pre-paid lease interest - - - - - - - - - - -
Pre-paid insurance - - - - - - - - - - -
Total Current Assets 1,803,822 3,179,681 4,172,549 5,301,197 6,579,604 8,023,231 9,649,186 11,476,411 13,525,890 16,166,763 18,620,065

Fixed assets
Land - - - - - - - - - - -
Building/Infrastructure - - - - - - - - - - -
Machinery & equipment 447,500 402,750 358,000 313,250 268,500 223,750 179,000 134,250 89,500 44,750 -
Furniture & fixtures 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 -
Office vehicles - - - - - - - - - - -
Office equipment 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -
Total Fixed Assets 472,500 425,250 378,000 330,750 283,500 236,250 189,000 141,750 94,500 47,250 -

Intangible assets
Pre-operation costs 35,241 28,193 21,145 14,096 7,048 - - - - - -
Legal, licensing, & training costs - - - - - - - - - - -
Total Intangible Assets 35,241 28,193 21,145 14,096 7,048 - - - - - -
TOTAL ASSETS 2,311,563 3,633,124 4,571,693 5,646,043 6,870,153 8,259,481 9,838,186 11,618,161 13,620,390 16,214,013 18,620,065

Liabilities & Shareholders' Equity

Current liabilities
Accounts payable - 352,618 396,959 447,640 505,697 572,351 649,048 737,501 839,745 958,198 636,837
Export re-finance facility - - - - - - - - - - -
Short term debt - - - - - - - - - - -
Other liabilities - - - - - - - - - - -
Total Current Liabilities - 352,618 396,959 447,640 505,697 572,351 649,048 737,501 839,745 958,198 636,837

Other liabilities
Lease payable - - - - - - - - - - -
Deferred tax - 46,894 106,852 183,762 284,799 412,327 570,004 759,624 984,322 1,249,356 1,564,839
Long term debt 1,849,251 1,849,251 1,643,896 1,421,496 1,180,638 919,788 637,288 331,341 - - -
Total Long Term Liabilities 1,849,251 1,896,145 1,750,748 1,605,259 1,465,437 1,332,116 1,207,292 1,090,964 984,322 1,249,356 1,564,839

Shareholders' equity
Paid-up capital 462,313 462,313 462,313 462,313 462,313 462,313 462,313 462,313 462,313 462,313 462,313
Retained earnings - 922,048 1,961,674 3,130,832 4,436,706 5,892,702 7,519,534 9,327,382 11,334,010 13,544,146 15,956,076
Total Equity 462,313 1,384,361 2,423,986 3,593,144 4,899,019 6,355,015 7,981,847 9,789,695 11,796,322 14,006,459 16,418,389
TOTAL CAPI TAL AND LI ABI LI TI ES 2,311,563 3,633,124 4,571,693 5,646,043 6,870,153 8,259,481 9,838,186 11,618,161 13,620,390 16,214,013 18,620,065
Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
- - - - - - - - - - -

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Pre-Feasibility Study Goat Fattening
Farm
14.3 Cash Flow Statement

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 Pre-Feasibility Study Goat Fattening Farm

14.5 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: Skilled and experienced staff should be 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.

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Pre-Feasibility Study Goat Fattening Farm

14.5 Useful Links

 Government of Pakistan, www.pakistan.gov.pk
 Ministry of Industries & Production, www.moip.gov.pk
 National Youth Development Program, www.kamyabjawan.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
 Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
 Government of Baluchistan, www.balochistan.gov.pk
 Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
 Government of Azad Jammu 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.org.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
 Bank of Khyber (BoK), www.bok.com.pk
 Bank of Punjab (BoP), www.bop.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. 042-
99220140
 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: 042-
99239818, 99239819
 Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: 044-
2661393

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15. KEY ASSUMPTIONS

Table 11: Project Assumptions

Initial Installed Capacity (No. of goats per batch) 220

No. of goat batches / year 3
Annual Installed Capacity (No. of goats) 660
Capacity Utilization (%) 100
Initial live weight of goat (kgs) 15
Purchase Price Rs./ kg (live body weight) 450
Average Daily Weight Gain (grams/ day) 120
No. of Feeding Days 120
Feed/ TMR offered per animal (% of live body weight) 3
Price of Total Mixed Ration TMR (Rs/ kg) 28
Green fodder offered/ animal (% of live body weight) 5
Price of green fodder Rs/kg 6
Live body weight (kgs/ animal) at selling time 30
Selling Price (Rs. / animal live body weight) in year 1 14,700
Selling Price / kg (live) 500
Space required (Covered Area/ animal) Sq. ft 12
Open space / animal (Sq. Ft.) 24

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