Thaba Goats Business Plan — Unit Economics
The economics of a single breeding doe: R5,532 of gross margin at Year 5, the full cost stack, and how scale changes each component.
Unit Economics
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The South African Goat Market
- 3. Why the Informal Market Matters More Than the Abattoir
- 4. Seasonality
- 5. SWOT and Competitive Position
- 6. The Five-Stage Roadmap and Gates
- 7. The Funding Ladder
- 8. Herd and Reproduction
- 9. Kid Mortality: The Industry's Named Constraint
- 10. Grazing, Land and Water
- 11. Animal Health
- 12. Route to Market
- 13. People and Operations
- 14. Regulation and Compliance
- 15. Unit Economics
- 16. Capital Expenditure
- 17. Financial Projections
- 18. Break-Even and Sensitivity
- 19. Risk Management
- 20. Implementation Timeline
- 21. Returns and Net Asset Value
- 22. Key Performance Indicators
- 23. Key Assumptions
- 24. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Stage Capital Schedules
- C. Appendix C: Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Funding Application Checklist
- F. Appendix F: Glossary
Everything reduces to the cost of producing one saleable goat and the price it fetches.
|
Per goat sold, Year 5 |
Rand |
% of total revenue per goat |
|---|---|---|
|
Blended selling price |
3 292 |
94.1% |
|
Cull and by-product income, apportioned |
206 |
5.9% |
|
Total revenue per goat |
3 498 |
100.0% |
|
Grazing |
(213) |
6.1% |
|
Licks and supplementary feed |
(365) |
10.4% |
|
Veterinary, dosing and dipping |
(259) |
7.4% |
|
Marketing and transport |
(130) |
3.7% |
|
Fixed cost absorbed |
(1 676) |
47.9% |
|
Total cost per goat |
(2 643) |
75.6% |
|
Margin per goat |
855 |
24.4% |
Extensive production keeps direct costs low: grazing, feed, health and transport together are R967 per goat, 27.6 per cent of revenue. The dominant line is the fixed cost absorbed at R1 676 — 47.9 per cent — and that is the number scale reduces. At Stage 2 the same fixed base is spread over 50 goats instead of 426.
15.1 Gross margin per breeding doe
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Gross margin, R’000 |
56 |
150 |
332 |
631 |
1 383 |
|
Average breeding does |
50 |
65 |
105 |
165 |
250 |
|
Gross margin per doe, R |
1 120 |
2 308 |
3 162 |
3 824 |
5 532 |
|
Fixed cost base, R’000 |
204 |
261 |
393 |
544 |
714 |
|
Break-even herd, does |
182 |
113 |
124 |
142 |
129 |
|
Actual against break-even |
Below |
Below |
Below |
Above |
Above |
Gross margin per breeding doe rises from R1 120 to R5 532, a fivefold improvement. That comes from three sources in roughly equal measure: more kids weaned per doe, a better sales channel mix, and the fixed cost base being spread across a larger herd. Only the third of those requires capital.