Tangible and intangible benefits of local goats rearing in smallholder farms in Malawi

Authors: KAUMBATA, WILSON - University Of Natural Resources & Applied Life Sciences - Austria; BANDA, LIVENESS - Lilongwe University Of Agriculture And Natural Resources; MESZAROS, GABOR - University Of Natural Resources & Applied Life Sciences - Austria; GONDWE, TIMOTHY - Lilongwe University Of Agriculture And Natural Resources; Woodward-Greene, Jennifer; Rosen, Benjamin - Ben; Van Tassell, Curtis - Curt; SOLKNER, JOHANN - University Of Natural Resources & Applied Life Sciences - Austria; WURZINGER, MARIA - University Of Natural Resources & Applied Life Sciences - Austria

Submitted to: Small Ruminant Research
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 3/27/2020
Publication Date: 4/7/2020
Citation: Kaumbata, W., Banda, L.J., Meszaros, G., Gondwe, T.N., Woodward Greene, M.J., Rosen, B.D., Van Tassell, C.P., Solkner, J., Wurzinger, M. 2020. Tangible and intangible benefits of local goats rearing in smallholder farms in Malawi. Small Ruminant Research. 87:106095. https://doi.org/10.1016/j.smallrumres.2020.106095.
DOI: https://doi.org/10.1016/j.smallrumres.2020.106095

Interpretive Summary: Goats are critical to small-holder farmers in Africa. The purpose of this study was to quantify the tangible and intangible benefits of local goats to smallholder in low input crop-livestock production systems. Results show that the direct return on investment exceeds the commercial deposit rate by several fold. This return on investment is significantly increased when intangible benefits such as economic stability are factored in. Programs such as community-based goat breeding programs are meant to harness the potentials of local goats to optimize their contributions towards reduction of rural poverty and hunger. Therefore, financing and supporting scaling up of such programs is a meaningful direct investment into the development of rural economies.

Technical Abstract: A study was conducted to determine tangible and intangible benefits of local goats to smallholders in low input crop-livestock production system where community-based goat breeding program (goat CBBP) is being implemented. Data was collected through a 12-month flock and household (137 households) monitoring study between August 2017 to July 2018. Data collected was analyzed using enterprise budgeting and cost-return analysis. The results showed that local goat enterprises in smallholder farms are profitable and economically viable. The mean annual net profit per flock and per goat was MK54,406 and MK11, 140 (€1 = MK830.00), respectively. The average return on capital invested was 24.6%, exceeding the prevailing average commercial deposit rate (8%) by several folds. Goats accounted for 61.2% of the total livestock household income representing the biggest contributor, while cattle, pigs and chickens contributed 17.6%, 15.5% and 4.1%, respectively. Sale of live goats constituted the major (79.2%) proportion of the total offtake rate, suggesting that goats are primarily kept for generation of cash revenues. Inclusion of intangible benefits of goats significantly increased the mean annual net profit and the return on capital by 60.3%, reflecting the importance of socio-economic roles goats play in providing current and future economic stability to rural households’ economy. Hence, programs like goat CBBPs are meant to harness the potentials of local goats to optimize their contributions towards reduction of rural poverty and hunger. Therefore, financing and supporting scaling up of such programs is a meaningful direct investment into the development of rural economy.