A full shed can still lose money. Profit becomes visible only when purchase cost, feed, mortality, labour, health care and net sale value are recorded against the kilograms or kids produced.
01
Measure the unit economics
Track cost per kilogram of live-weight gain: total direct batch cost divided by kilograms gained. If a group consumes PKR 120,000 in feed and direct care while gaining 80 kg, the cost is PKR 1,500/kg before purchase finance, labour and transport. Compare that with net PKR/kg received, not the mandi headline. Also calculate mortality percentage, average daily gain and days held. A high sale price cannot rescue poor conversion or a 10% kid loss, and breeding stock must account for empty does and long kidding intervals.
- Cost/kg gain
- Direct period costs divided by total live-weight gain.
- Mortality
- Deaths as a percentage of animals at risk.
- Daily gain
- Weight change divided by days held.
- Net sale
- Sale proceeds after fees, transport and unpaid balances.
Field note
02
Control feed, health and seasonal risk
Feed often decides the margin. Weigh animals fortnightly, cost forage and concentrate in current PKR, repair wasteful troughs and stop finishing when extra gain no longer covers extra days. PPR and enterotoxaemia prevention, kid colostrum and quarantine are economic controls, not optional extras. For Eid-ul-Adha, buy and plan months ahead; panic buying three weeks before the festival means dealers have already captured much of the premium. Stress-test the budget with a sale price 15% below expectation and include summer heat losses and transport.
- Feed
- Measure PKR per kilogram gained, not bags used.
- Health
- Price vaccination against the replacement value at risk.
- Season
- Model both expected and weak Eid prices.
- Holding time
- Sell when marginal gain no longer pays for daily cost.
03
Keep four records before expanding
Maintain an inventory ledger with ID, source, entry weight and purchase cost; an expense book for feed, medicine, labour and transport; a performance sheet for weights, kidding and milk; and a sales log showing live weight, buyer, gross price and net receipt. These records reveal whether Teddy turnover beats heavier Beetal finishing on your farm, not someone else's. Expand only after margins and mortality remain stable at the present size. Water, shade and skilled labour set real capacity in Punjab and Sindh; exceeding them multiplies risk rather than profit.
- Inventory
- Every entry, birth, sale and death with a date.
- Expenses
- Quantity and PKR for all direct and allocated costs.
- Performance
- Weights, gains, kidding outcomes and production.
- Sales
- Buyer, weight, price, deductions and amount received.
Field note
Key takeaways
- Calculate cost per kilogram gained and mortality for every batch.
- Stop feeding when marginal gain no longer covers daily cost.
- Plan Eid stock early and test a 15% lower sale-price scenario.
- Keep inventory, expense, performance and sales records before expanding.