Business Summary

The goat breeding sector is profitable, but it is also a difficult sector for working. From 2004 to 2008, I bred goats, but last year I could not find a cattle-breeder and sold my goats.

Now I plan to buy 20 calves and keep them for one year, then sell their meat. I already own a barn that will be used for this business. In addition, working with calves is less difficult and the meat is in demand.

Market Overview and Product Demand

In Armenia, each family eats beef on a daily basis. In the Tavush region, 200 to 220 tons of beef is sold annually. The meat is sold in butcher shops. One kg of beef is sold for 1500 to 1600 AMD in the market.
From wholesale, a cattle breeder sells one kg of beef for 1200 to 1300 AMD.

Restaurants also purchase beef, and each restaurant cooks 15 to 20 kg of beef monthly.

Current distribution

A butcher will be responsible for killing and preparing the beef cuts in the cattle-house. From there, it will be sold to special shops in the center of Ijevan. The beef will be sold in April, May, and June of 2011. Total, 3 tons of beef will be sold.

The price cost of 1 kg of beef is 1010 AMD.

Competition

There are many households in Tavush region who have already owned cows. Many of them have 1 to 2 cows and sell no more than 200 kg of beef per year. There are 15 farms who own more than 20 cows. Now, more than 30% of sold beef is imported from the other marzes, and we do not have problems owning a share of the market.