1) Goat farming through shared or leased goat ownership has traditionally helped poor rural families acquire livestock assets. However, the existing leasing systems often provide inferior quality goats with no health services or agreement protections. 2) A new microleasing program is proposed to address issues with traditional leasing. It would provide quality goats and services like health care while removing risks and repayment pressures for farmers. 3) The program aims to strengthen goat farming as a business by improving productivity, access to inputs and markets, and generating profits across the value chain for sustainability.

1. Sanjeev Kumar
Adviser – The Goat Trust

3.  Shared goat farming had been a way of
acquisition of livestock related asset strategy
in rural areas especially with socially and
economically poor families. In most part of
the country some form of lending productive
asset exists. Goat farming had been one such
area where asset had been most often
acquired by poor families through leased by
resource rich person of same village or
nearby village.

4.  1. Purchase through own savings – Normally
people purchase small goats or 1 to 3 goats and
keep it over a period of time to increase herd
size.

 2. Goat as gift from relatives especially to women
by her parents - In some cases goats are received
as gift from parents and women rear and
increase its progeny to develop a herd.

 3. Leasing or Batai system – This is the prevalent
system after direct purchase to acquire goat as
asset

5.  Goat farmers did not have pressure of monthly
repayment, as the cash flow from goat farming
did not allow monthly repayment, goat farmers
find leasing helps them as repayment pressure is
not to be managed.
 Risk of mortality (which is significant in the area
and estimated 23% annual) remains with lessor
and lease can easily manage the risk.
 If production of goats gets delayed due to
adverse climatic or management condition, both
parties have to bear the loss.

6.  Leasing is used a power equation between haves
and have n’ts.
 Asset is not backed by support services like
breeding health, making production low.
 Quality of goats leased has been reported as
inferior as person leased out only low quality
goats.
 There is no written rules and agreement so very
often lesser decides division in produce in their
benefit as they are powerful and have social upper
hands.
 There is no means to get out of this system till
one production cycle is completed

7.  1. Have proper system and place to take quality
goat/livestock on lease
 2. No Monthly installment or repayment in cash
stress making operation easy.
 3. Risk of mortality or no production is with
leasing organization hence risk is minimised.
 4. Have access to preventative health care and
improved knowledge services.
 5. Can start without any investment and later on
be a owner of herd.
 6. Can earn in terms of body weight gain even if
she rears for smaller period.
 7. Can any time return the goat and get out of it.

8.  Promoters have advantages of asset ownership, making
operation less risky and repayment assured.
 Goat farmers are invariably poor so target clients gets
automatically selected
 Promoter gets reward in high productivity of goats thus more
production ensures more reward i.e higher return
 Less investment in keeping financial records and human
involvement in cash collection and deposit.
 Focus of team can be on services and not cash collection
thus ideal for development focused organization
 Micro leasing can sustain with lower number of clients as
business in whole value chain of input supply, services and
trade and marketing of goats and goat products can be taken
care and corresponding profits are generated.
 Breed and quality livestock can be promoted without
subsidizing the program.
 Promoting organisation can have assured commitment to
large trader/institutional buyer as per kids’ availability
forecast/projections.

9.  Gets technically trained and knowledge helps in improving
productivity making higher incentives possible
 Can gain incentives in input supply, services and goat
marketing
 May start their own enterprise as this business is viable on
smaller scale and fund requirement is gradual rather than
one time.
 Performance is easily traceable and community and
employer both can easily be aware about staff performance
 Working with a banking process is a socially respectable and
with experience can manage more clients
 If return invested in the business, it grows very fast even if
started with a small grant/loan
 High replicability but very limited availability of experienced
professionals so staff can easily get recognized as expert by
other agencies and programs making high employability.

10.  Leasing of quality goats and poultry birds
 Livestock asset based credit limit ( based on
existing herd strength for feeding, housing
improvement)- Livestock Credit Card
 Community Insurance services
 Product – One pregnant goat (3 months) in
beginning (testing phase) + 2 goats after 5
months of first goat

11.  Door step preventative and first aid health
services through Pashu sakhies
 Price estimation through periodic live body
weight measurement
 Training on improved practices
 Exposure for potential clients
 Pro poor Technology demonstration with key
farmers
 Linkage with input supplier
 Facilitation in collectivization of marketable
surplus (live animals, milk)

12.  Identifying 10 to 15 villages in cluster having requisite
number of goat farmers and having willingness to
participate in strengthening value chains of goat business.
 Feasibility assessment through making a household
surveys of goat population, current problems
 Identify and train Bakari Bank Sakhies and build their
capacities
 Strengthen existing Goat rearers SHGs or Goat rearers
group (GRGs) , formation and facilitation through village
level support centers ( defined as regular meeting and
financial and non financial service planning & monitoring
center)
 Training and exposure of potential clients
 Setting data collection system to grade goats, select
promising bucks and facilitate culling of inferior goats
 Planning and facilitation of leasing products and non
financial services

13.  Total Member for goat trained – 112
 Total goat clients – 49 (Total coverage 62)
 Total duck clients – 22 (includes Rice duck
farmer last year)
 Kids born in first 6 months – 1.9 kids per goat
 Kids returned as on date – 22
 Kids leased in field – over 45
 Mortality of kids – 8%
 Mortality of goats in field – 5%
 Total sales of Input – Rs 54000

14.  Training of organization staff and or entrepreneurs
on micro leasing concept and operational process
 Sharing of process manuals with training modules
and training tools
 Data collection, monitoring system and analytics to
make decisions
 Software to manage micro leasing operation
 Quarterly on site visit for hand holding support
and problem solving
 Audio visuals for program promotion
 Design and concept of community Livestock
business center management to augment business
and link marketing of goats and goat products
 Professional support cost for one year support –
1.0 Lakh