Goat Farming Business Overview
A goat farming operation raises and breeds goats to produce various products for sale. These farms range from small backyard setups with a few goats to large commercial operations with hundreds of animals. Compared to other hoofed and domesticated creatures, goats are low maintenance, eating most grasses and weeds while needing minimal space to thrive.
A small operation can begin with just two goats, though commercial farms typically maintain one male goat (buck) for every 20 female goats (does). The amount of land needed varies based on the operation size, with about 2 acres supporting 10 goats for adequate grazing. Most farmers start with a small herd and expand as they gain experience in handling, breeding, and market development. The daily work involves feeding and watering the goats, maintaining their living areas, monitoring their health, managing breeding programs, and processing their products.
The most common business models in goat farming include:
- Meat Production: Operating a farm that raises goats primarily for their meat, selling to processors, restaurants, and direct to consumers
- Dairy Operation: Running a farm focused on producing goat milk and creating dairy products like cheese and yogurt
- Fiber Production: Managing herds of specialty goats like Angora or Cashmere breeds for their wool
- Breeding Program: Maintaining high-quality breeding stock to produce kids for sale to other farmers
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How Do Goat Farms Make Money?
The main income stream for goat farms is selling their primary products through established market channels. Meat goat farmers typically sell their animals at livestock auctions or directly to processors, with prices calculated per pound of live weight. Depending on their market and location, dairy operations can earn between $6-12 per gallon of milk. Fiber producers usually sell raw wool by the pound to processors or spinning mills. The income varies seasonally, with peak sales often occurring during religious holidays for meat goats, while dairy and fiber operations tend to have more consistent year-round revenue.
Industry Statistics
Goat farming falls under NAICS code 112420: Goat Farming, which includes operations raising goats for milk, meat, and fiber production. Here are some facts about the current state of the goat farming industry.
Goat Farming Industry Size & Growth: The goat farming industry in the U.S. generates $1.2 billion in revenue annually. The industry has shown substantial growth, influenced by increasing ethnic populations and rising demand for goat products. Population shifts and growing interest in alternative dairy options contribute to a projected annual growth rate of 3.5%. Government subsidies and expanding export opportunities to markets like the European Union, Japan, and Taiwan support this growth pattern. (Grata)
Number of Goat Farms: According to the U.S. Department of Agriculture, there are 136,000 goat operations. (USDA)
Goat Farming Profit Margin: Profit margins vary depending on the items sold, but on average, goat farming operations typically see gross profit margins between 20% and 35%, with net profit margins of 12% to 18% after accounting for operating expenses, feed costs, and veterinary care. (IRS)
States with Most Goat Farms: Agricultural census data shows concentrated goat farming activity in Oklahoma, Texas, Arizona, Wisconsin, California, and Tennessee. The Southwest region has seen particular growth in goat farming operations, partly due to government initiatives supporting farmers transitioning from tobacco farming. These areas provide suitable conditions for goat farming operations and access to growing markets. (U.S. Census Bureau)
Startup Stories
Costs To Start a Goat Farm
Starting a goat farm typically costs between $10,000 and $50,000. This range covers small backyard operations as well as mid-sized commercial farms.
There are several expenses involved with starting a goat farm, but here are some of the larger costs to plan for:
Land and Fencing: The cost of land can range from $5,000 to $25,000, depending on location and size. Proper fencing is necessary, as goats are known to be escape artists. Fencing materials and installation for a modest operation typically run between $2,000 and $6,000.
Initial Livestock: Quality breeding stock is a major investment. Depending on breed and purpose, goats can cost between $200 and $1,000 per animal. A small commercial herd starting with 20 does, and one buck would cost between $4,200 and $21,000.
Shelter and Equipment: Basic shelter structures, feeding equipment, and handling facilities typically cost between $3,000 and $8,000. This includes barns or run-in sheds, feeding troughs, water systems, and basic medical supplies.
Processing Equipment: Equipment like milking machines, refrigeration units, and sanitation systems can cost between $5,000 and $15,000 for dairy operations. Meat operations require less initial equipment investment but may need transportation equipment and handling facilities.
These estimates provide a general idea of startup costs, but actual expenses will vary. Some farmers start smaller and expand over time, while others begin with larger operations from day one.