Abstract

Aim: The objective of this study was to describe scaling effects by comparing management practices, production costs and profitability metrics to determine the economic viability of goat production in the western hilly areas of Nepal.

Methods: Questionnaires were administered to 90 households, across three districts of the western hills of Nepal (Arghakhanchi, Kaski, and Tanahun) in 2020 choosing 30 from each scale (Small: 1–5 breeding does, Medium: 6–19 breeding does Large: ≥ 20 breeding does). Data was collected using structured questionnaires, field observations and key informant interviews. It was analyzed using Microsoft Excel and Stastical package of Social Sciences (SPSS) Statistics 26 to reflect farming activities and economic results.

Results: Large-scale farms used more scientific management of feeding, housing, breeding and disease control according to the results. Nevertheless, farms of medium scale showed the highest profit i.e. Benefit- Cost ratio (BC) which was calculated as total annual return divided by total production cost which was 1.86 when compared with small-scale (1.84) and large-scale (1.38) farms and found to be profitable. Although gross income per kid was higher in intensive operations, large-scale farms presented the disadvantage of lesser mean profit per head and higher mortality rate that reduced economic profitability.

Conclusion: The result of the study revealed that profitability is determined by herd size, availability of fodder, cost of labor and investment capacity. Medium-scaled farms had the highest profitability while large-scaled ones, though having higher gross income, took more risks and costs. A proper choice of the herd size, according to available resources, is essential for sustainability in the profitability of goat production.

Key words: Goat farming, Livelihood improvement, Socio-economic analysis, Benefit-cost ratio, Rural development