Ngamiland and Kgalagadi districts in Botswana are both semi-arid and are considered poor localities. Traditional cattle farming, as a means for economic empowerment, has not succeeded in raising incomes for the locals. As a matter of fact, cattle farming in and of itself has not succeeded either owing to the harsh climatic conditions in these regions.
In response to this dire situation, the National Agricultural Research and Development Institute (NARDI) of Botswana has been researching on dairy goat farming and its potential for transforming the economies and livelihoods of Ngamiland and Kgalagadi districts. NARDI had found that goat farming is significantly cost effective compared to the traditional cattle farming that is the economic mainstay of these two regions. NARDI also found that dairy goat farming would significantly enhance the development of the dairy sector in Botswana, which has suffered from perennial low supply of milk. Goat milk is expected to supplement cattle milk to boost the dairy industry.
Employing the Research and Innovation Management Project (RIMP) grant, Dr. Ntshepisa Lebetwa (NARDI) put together a research team to commercialize the research on dairy goat value chain development that had been earlier commissioned by NARDI. First, the research team conducted a scoping study of arid areas, as well as a stakeholder analysis in selected areas. The team then engaged stakeholders and selected four (4) beneficiaries (2 men and 2 women) for this project with the help of local village elders.
The team then procured, through the grant, goat rearing infrastructure, milking parlor, a mini processing plant and a branded point of sale porta-cabin to support the entire value chain.
As a co-funding, it must also be recognized that NARDI provided 22 goats (approx. BWP 120,000) which are being used in this project (2 males and 20 females), a testament of dedication and support for this project.
Dr. Lebetwa’s team had added value to the goat milk, infusing it with marula pulp, to produce yoghurt. A 175g will be sold in the market for an estimated BWP 15 (approx. [i]USD 1). NARDI has certified these products for health safety and nutritional value.
On the costs side
The costs involved include feed (a 50kg bag of feed costs BWP 200) which makes it BWP 4/ kg. A typical goat consumes about 2.5kg of feed daily, bringing it to about BWP 10/ goat/ day for feeds.
Another BWP 40 is estimated to cover for other costs including overheads, packaging & packaging material, and the value-addition costs.
Labor costs are exempted in this model, assuming that they are provided by the proprietor and support from family. Also exempted in this model are the cost of marula, which is gotten from the wild at no cost and the equipment which is donated from the grant funds.
Total costs are estimated at (40 + 10) BWP 50
On the revenue side
A typical goat produces 3ltrs of milk per day, which can produce seventeen (17) 175g yoghurt packets, a revenue of approximately BWP 255 (17 * 15).
Economic impact
The profit margin for this business model is (255 – 50), approximately BWP 205 from one goat per day. Adding more costs related to equipment, maintenance, labor and inefficiencies may bring down the profit margin at least 60% (a more generous estimation) to about BWP 82 (approx. USD 6.14), well above the new international poverty line of USD 2.15
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Groundbreaking for the setting up of dairy goat farm infrastructure
Article by Nicholas Odongo
[i] An exchange rate of USD 1 = BWP 13.355 on November 15th 2024 was used, Oanda currency converter
