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Goat breeding Short business guide. INPACT Inguna Avota 2013, Latvia 1 Goat breeding Short business guide. INPACT Inguna Avota 2013, Latvia 1

What kind of breed – milk, wool, meat or rural tourism? What kind and What kind of breed – milk, wool, meat or rural tourism? What kind and how much resources you need? What kind of risk you should be taken? Which could be your target market Where I could sale product? How much could be my costs? Financial results What I should to know? INPACT Inguna Avota 2013, Latvia 2

Milk Wool Meat Rural tourism Something else What kind of product? INPACT Inguna Avota Milk Wool Meat Rural tourism Something else What kind of product? INPACT Inguna Avota 2013, Latvia 3

Means of production ( ražošanas līdzekļi) Land ( meadows, pasture, hay, crops ) building Means of production ( ražošanas līdzekļi) Land ( meadows, pasture, hay, crops ) building - house, barn, shed, equipment Storage machinery and equipment - land, hay harvesting, milking, goat fur, milk processing financial resources Resources INPACT Inguna Avota 2013, Latvia 4

How serious and what kind of shed the goats feel the better How much How serious and what kind of shed the goats feel the better How much needs to goat barn, and does it work? Where keep hay and other fodder equipment Storage other Resourses- building INPACT Inguna Avota 2013, Latvia 5

depend from the breed and branch Milk goats – Goats for meat – Rural depend from the breed and branch Milk goats – Goats for meat – Rural tourism Wool Resourses - machinery and equipment INPACT Inguna Avota 2013, Latvia 6

Animal-related risks - disease, infertility, parasites Weather-related - rain, freezing conditions, storm People related Animal-related risks - disease, infertility, parasites Weather-related - rain, freezing conditions, storm People related - irresponsibility, disease Relating to finance - a loan, the reduction in income, a decline in demand Relation to the market - new products, competition Kind of risk INPACT Inguna Avota 2013, Latvia 7

Product Promontion Place Marketing Mix-5 People Price Marketing mix INPACT Inguna Avota 2013, Latvia Product Promontion Place Marketing Mix-5 People Price Marketing mix INPACT Inguna Avota 2013, Latvia 8

target market - people with the same tastes that will give stable and higher target market - people with the same tastes that will give stable and higher income Who will be my customers? Where they are? How to find them? Target market - people INPACT Inguna Avota 2013, Latvia 9

Where I could selling my product? • Retail – mazumtirdzniecība • In fairs – Where I could selling my product? • Retail – mazumtirdzniecība • In fairs – gadatirgi • In supermarkets • In internet • At farm How to advertise? in media in internet Market – selling places Promotion INPACT Inguna Avota 2013, Latvia 10

Where I would spend the money? for grazing livestock - food preparation, storage wages Where I would spend the money? for grazing livestock - food preparation, storage wages equipment maintenance advertising processing performance - plants, spices, equipment, vet services cost of credit purchase goats my costs? INPACT Inguna Avota 2013, Latvia 11

Price for product depend: 1. From costs ( total and average, producing and selling Price for product depend: 1. From costs ( total and average, producing and selling ) 2. Level of competition ( enterprises and production ) 3. Selling place Price should cover your costs Price to be convinced of the quality of the product Marketing - price INPACT Inguna Avota 2013, Latvia 12

Total costs Variable costs P Fixed costs Q TC = VC + FC Forming Total costs Variable costs P Fixed costs Q TC = VC + FC Forming of the costs INPACT Inguna Avota 2013, Latvia 13

Variable costs – depend of quantity of production – more product, higest costs Fodder Variable costs – depend of quantity of production – more product, higest costs Fodder ( barība ) Worker salary Veterinary costs Sale costs VARIABLE COSTS INPACT Inguna Avota 2013, Latvia 14

Fixed costs – undepending of the quantity of productions. Cost of credit Administration Fixed Fixed costs – undepending of the quantity of productions. Cost of credit Administration Fixed costs INPACT Inguna Avota 2013, Latvia 15

TR ( total revenue ) = P ( price ) x Q ( quantity TR ( total revenue ) = P ( price ) x Q ( quantity ) Price should cover average costs = incomes should be higher than total costs You will give incomes from: * the basic product * National and European payments * Other Incomes INPACT Inguna Avota 2013, Latvia 16

every farmer would like to work with profit! Profit = Total revenue – total every farmer would like to work with profit! Profit = Total revenue – total costs The main task - to reduce production costs Galvenais – samazināt ražošanas izmaksas Profitability = net profit / net sales (turnover) Financial results INPACT Inguna Avota 2013, Latvia 17

 It does not matter to produce, it is important to sell! All activities It does not matter to produce, it is important to sell! All activities should be aimed at ensuring that the buyer would see the need for product Sale INPACT Inguna Avota 2013, Latvia 18

 Basic purpose - to encourage people to buy products advertising underlines the good Basic purpose - to encourage people to buy products advertising underlines the good qualities of the product advertising should be able to link the consumer's attention it must be able to create and maintain consumer interest in products Advertisement INPACT Inguna Avota 2013, Latvia 19

 advertising should be: simple original attractive realized in an appropriate place and time advertising should be: simple original attractive realized in an appropriate place and time Advertisement INPACT Inguna Avota 2013, Latvia 20

Original Interesting Full with color Full with life Your own advertising!!!! make up your Original Interesting Full with color Full with life Your own advertising!!!! make up your own advertising INPACT Inguna Avota 2013, Latvia 21