Although it can be very difficult to estimate, note that a goat farmer can make around $22 profit per goat per day. In the United States, the average cost of goat food is around $0.65/day; howbeit, they can make milk that can be valued at $12 or more per gallon, and an average goat will make 2 gallons per day.
Truth be told, there are other costs that come with farming goats, such as veterinarian bills, drugs, watering, and labor. Let’s estimate that it costs a goat farmer around $2/day to maintain a single goat.
If you take into consideration a lactating average of 284 days, a goat farmer can make around $6,248 a year from milk alone. That’s if evaluated with a $12/gallon goat milk value, an average of 2 gallons/day per goat, coupled with a maintenance cost of $2/day.
If the farmer also sells by-products like goat cheese and yogurt, then it means more revenue. In recent years, the demand for goat milk, meat, as well as other by-products like cheese and yogurt has grown massively in the United States.
Over the past two decades, aside from the steadily increasing demand, this sector has witnessed many good phases. Experts note that the rise in demand can be attributed to an increase in the population of various ethnic groups residing in the US.
Investing in a goat farm can turn out to be a lucrative endeavor, and this is one of the primary reasons why starting a goat farm for both meat and dairy in the US has gained traction over the past two decades. If you already have pasture in which they can free-range, then you don’t need much to start your goat farm.
A good number of goat farmers also generate revenue from renting their goats out to graze weeds, pastures, etc. Aside from that, also note that many gardeners utilize goat waste as compost for their fruit, vegetable, and flower gardens. Nevertheless, it is difficult to put an exact number on how much a goat farmer can make, especially since it depends on numerous factors.
Factors That Determine How Much Goat Farmers Make a Year
Table of Content
The Size of the Farm
Since goats don’t really make that much milk and tend to average around two gallons a day, it takes more goats to make enough milk that will guarantee business profit.
Note that starting a goat farm with around 500 goats on 55 acres of land will warrant a startup cost of around $240,000. Goat milk is sold in the US for around $8 and $12 for a gallon. One goat can make around 2-3 gallons of milk per day, although this will depend on the breed.
If the goats produce maybe 3 gallons a day, this entails around $36 per day at maximum capacity. If you don’t have to deal with diseases, on average, a goat farmer could be making $13,140 per year just from one goat.
Goat’s Health and Care
You also have to consider the expenses that come with rearing goats. You will have to account for things like labor, feeding, breeding, bedding, and veterinary costs. Have it in mind that it will ultimately eat into your annual profit. It cost around $1,000 to take care of one doe in a year.
Using the calculation above will bring down your annual profit from $13,149 to $12,116. Howbeit, note that your expenses will vary depending on things like the goats becoming pregnant, the availability and cost of local resources, as well as other specific maintenance costs.
The Type of Goat Farm
You will want to consider the operation and components of your operation especially since it will impact how much you make in this business.
Goats can be exposed to parasites that can make them sick or even kill them. It will eat into your annual profit to treat them. Depending on the infestation level, it could probably cost a lot of money, and the milk won’t be good enough for a while when the animal is being treated.
According to experts, having pastures that the goats can graze lessens this risk since the goats won’t reinfect themselves easily.
Choosing the Right Goat Breed
People venture into this business for varying reasons. You might be interested in selling goats, renting them out for grazing, or selling them for meat. It is important you take this decision seriously as it will impact the bottom line of the business.
For example, when rearing goats for milk, you will want to choose the right breeds to ensure high production and income. Farming goats known as being high-milk producing like Saanen, Alpine, Beetal, and Toggenburg, will ensure more milk, and in return, more income for the farmer especially when compared to the low-milk producing goats.
Type and Quality of Goat Feed
The success of your farm will greatly depend on the health of your goats. Have in mind that feeding plays a vital part in the health of your goats. These animals will have to be fed with high-protein grain and fresh, lush grasses, herbs, and shrubs.
To ensure you get nutritious milk from the goats, they also need vitamins and water. Don’t forget that goats love roaming free and grazing bushes. This also helps to boost milk production and quality, as such to maximize profit, it is recommended you invest in pastures filled with bushes.
Marketing your Goat’s Product wisely
Regardless of how experienced you are and how high the quality of your products is, you can never underestimate the importance of promoting your farm. Coming up with the right marketing approach will draw in more business and it means you will also earn more.
Don’t also forget that these expenses will eat into your annual profits, but most often the benefits outweigh the drawbacks.
Profit Margin for Goat Farmers in a Year
This will most definitely depend on variables such as the scale of your operation, the number of goats on the farm, your farm management practices, your location, market dynamics, as well as the byproducts you make and sell. However, goat farmers are known to aim for around 20% to 40% of the total revenue. However, don’t forget that this percentage will differ based on numerous important business factors.