Economic analysis of the goat breeding project

Author

Rufurwokuda, Grace

Title

Economic analysis of the goat breeding project

Abstract

Goats play a pivotal role in improving the livelihoods of the rural poor. They are used both as a source of income, for consumption and they also carry a very substantial cultural significance. This study takes a look into the economic analysis of goats focusing on the goat breeding project at the Bindura University of Science Education. The main objective of the study is to make an economic analysis of the goat breeding project whilst the specific objectives focus on ascertaining the start-up cost of a small-scale goat project, Analyse the profitability of a goat breeding project and evaluate the challenges faced in goat breeding. For determining start-up capital and profitability analysis, the research used a case study analysis approach and secondary data from BUSE goat enterprise records. Inferential and descriptive statistics namely means, frequencies, and range was used in the descriptive and inferential statistics were used to analyse the data. Gross margin analysis was done to determine the profitability of the goat breeding project. The Likert scale technique was used to analyse the problems faced by farmers practising goat breeding. The study's goat breeding effort had a start-up cost of $4, 005 USD for the mixed breeds and $15, 315 USD for the pure breeds. For the mixed breed, the results reveal a gross margin of $764, a benefit-cost ratio of 1.7% and an average rate of return of 0.63 of the goat carcass. The results also reveal a total profit of $9 600 being recognized in the breeding of pure breeds. These demonstrate the economic viability and profitability of goat breeding in Zimbabwe. The study's findings indicate that poor grazing land, expensive artificial insemination, the expensive certification process for pure breeds, difficulty in obtaining a police clearance, difficulty in obtaining a stock movement permit, low market prices, high levels of competition, and high market prices for pure breeds were the major challenges that the project faced. In order to maximize their profits and ensure their own food security, the study advises farmers to explore producing pure goat breeds rather than growing them for meat. However, the start-up costs for producing pure breeds are quite substantial in Zimbabwe, hence it is necessary to offer farmers loans with low-interest rates.

Date

2022

Publisher

BUSE

Keywords

Goat breeding project

Fixed costs

Gross margin

Economic analysis

Supervisor

Dr Lovemore Musemwa