🥩 Lamb Fattening — NABARD Model Bankable Project
NABARD model for a 20-lamb/month fattening unit in Rajasthan with total cost of ₹2.65 lakh, 15% margin money, 3-year repayment, and IRR >50%. Covers semi-intensive fattening technology, FCR 5.46:1, and batch economics for IBPS AFO and NABARD Grade A.
Lamb fattening is a short-duration, high-return enterprise. Traditional lamb rearing under extensive grazing takes 8–9 months to reach slaughter weight. Intensive fattening achieves the same profit in just 3 months — this is the core selling point and a common exam discussion.
- Rajasthan has 8 out of 42 indigenous sheep breeds: Chokla, Nali, Malpura, Sonadi, Marwari, Pugal, Jaisalmari, Magra
- Sheep population increased by 14.13% nationally (20th Census)
- Feed conversion ratio: 5.46:1 (5.46 kg feed per 1 kg weight gain)
Project Overview
The model: 20 lambs per batch per month across 4 sheds. Lambs are purchased at 2 months age (10 kg) and sold at 5 months age (25 kg) — a weight gain of 15 kg in 3 months on grazing + concentrate (50:50 ratio). Weaning age is reduced from 90 days to 60 days, shortening the production cycle.
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Lamb fattening is a short-duration, high-return enterprise. Traditional lamb rearing under extensive grazing takes 8–9 months to reach slaughter weight. Intensive fattening achieves the same profit in just 3 months — this is the core selling point and a common exam discussion.
- Rajasthan has 8 out of 42 indigenous sheep breeds: Chokla, Nali, Malpura, Sonadi, Marwari, Pugal, Jaisalmari, Magra
- Sheep population increased by 14.13% nationally (20th Census)
- Feed conversion ratio: 5.46:1 (5.46 kg feed per 1 kg weight gain)
Project Overview
The model: 20 lambs per batch per month across 4 sheds. Lambs are purchased at 2 months age (10 kg) and sold at 5 months age (25 kg) — a weight gain of 15 kg in 3 months on grazing + concentrate (50:50 ratio). Weaning age is reduced from 90 days to 60 days, shortening the production cycle.
4 sheds operate in staggered rotation — one batch introduced each month, meaning at any time 4 batches are at different stages. This maximises asset utilisation.
Financial Structure
| Component | Amount (Rs.) |
|---|---|
| Kutcha night shelter (400 sq ft @ ₹100/sq ft) | 40,000 |
| Cost of 80 lambs (4 sheds × 20 @ ₹1,500) | 1,20,000 |
| Insurance (4% of lamb cost) | 4,800 |
| Concentrate feed (41 kg × 80 lambs × ₹20) | 65,600 |
| Roughage (41 kg × 80 lambs × ₹10) | 32,800 |
| Medicines + misc | 1,600 |
| Total Investment Cost | 2,64,800 |
| Margin Money (15%) | 39,720 |
| Bank Loan (85%) | 2,25,080 |
Technical Parameters
| Parameter | Value |
|---|---|
| Unit size | 20 lambs/batch/month |
| System | Semi-intensive |
| State | Rajasthan |
| Purchase age | 2 months, 10 kg |
| Sale age | 5 months, 25 kg |
| Weight gain | 15 kg in 3 months |
| Fattening period | 3 months (90 days) |
| Mortality | 10% |
| Lambs sold per batch | 18 (out of 20) |
| FCR | 5.46:1 |
| Feed ratio | Concentrate:Roughage = 50:50 |
| Sale price | ₹150/kg live weight |
| Cost per lamb | ₹1,500 |
| Interest rate | 13.5% per annum |
| Grace period | 6 months |
NOTE
Lamb fattening uses 13.5% interest rate — the highest of all animal husbandry NABARD models. The 6-month grace period accounts for the construction period before the first batch is sold.
Income & Repayment
| Year | Lambs Sold | Income (Rs.) | Gross Surplus (Rs.) |
|---|---|---|---|
| 1 | 126 (7 batches) | 4,75,020 | 1,37,820 |
| 2 | 216 (12 batches) | 8,14,320 | 1,39,920 |
| 3 | 216 (12 batches) | 8,14,320 | 3,29,080 |
Year 1 income = 126 lambs × 25 kg × ₹150 = ₹4,72,500 (+ ₹2,520 manure)
- Repayment period: 3 years
- Grace period: 6 months
- BCR: 1.14:1 at 15% discount factor
- NPW: ₹4,42,020
- IRR: >50%
The 3-year repayment is extremely short, enabled by the high turnover of 12 batches per year from Year 2. The project is viable only where an established livestock market exists nearby — ICAR-CSWRI Avikanagar, Malpura (Rajasthan) provides technical guidance.
Sources & References
Primary source for this lesson is NABARD's official Model Bankable Projects portal.[1] Lesson-specific report copy used for this topic.[2]
References
2 sources • [1] [2]
References
Used for: Official NABARD portal for model bankable project documents and updates.
Used for: Reference copy used in this lesson for project parameters and worked figures.
The figures in this lesson reflect the cost norms and technical parameters as published in the NABARD document. Actual costs may vary by state, season, and year of implementation. Always refer to the latest NABARD circular for current norms.
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Unit size | 20 lambs/batch/month, 4 staggered sheds, semi-intensive system |
| State | Rajasthan |
| Total Investment Cost | ₹2,64,800 |
| Margin Money | 15% = ₹39,720 |
| Bank Loan | 85% = ₹2,25,080 |
| Purchase age / weight | 2 months, 10 kg |
| Sale age / weight | 5 months, 25 kg |
| Weight gain | 15 kg in 3 months (90 days) |
| Mortality | 10% → 18 lambs sold per batch (out of 20) |
| FCR | 5.46:1 (5.46 kg feed per 1 kg gain) |
| Feed ratio | Concentrate : Roughage = 50:50 |
| Cost per lamb | ₹1,500 |
| Sale price | ₹150/kg live weight |
| Shed cost | Kutcha night shelter 400 sq ft @ ₹100/sq ft = ₹40,000 |
| Insurance | 4% of lamb cost |
| Interest rate | 13.5% per annum (highest in animal husbandry series) |
| Grace period | 6 months |
| Repayment period | 3 years (very short due to high batch turnover) |
| Batches per year (Year 2+) | 12 batches = 216 lambs sold |
| BCR | 1.14:1 at 15% discount factor |
| NPW | ₹4,42,020 |
| IRR | >50% |
| Advantage over extensive rearing | Same profit in 3 months vs 8–9 months under traditional grazing |
| Weaning age | Reduced to 60 days (from 90 days) to shorten cycle |
| Technical guidance | ICAR-CSWRI Avikanagar, Malpura (Rajasthan) |
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