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Agriculture for Secondary Schools

production and revenues should be positive. However, some livestock enterprises
may take time to bring in profits. This is especially true for animals with long
reproductive cycles such as cattle.

Production costs to be considered in financial planning are many. They include
expenses for construction of the farm structures and fixed equipment of the farm, and
the money required to purchase materials of production such as livestock, animal
feeds as well as paying wages and salaries of farm workers. The costs used for
construction of farm structures and buying farm equipment are called fixed costs, for
example, animal sheds/houses and stores, dip tanks/spray race, milking machine and

facilities, feeders, and drinkers’ costs. The expenses used for purchasing materials
during the production process are called variable costs, for example, buying initial
livestock herd/flock, working tools, milking utensils, water and electricity supplies,
drugs, feeds, paying seasonal labourers, management and government levies and
taxes. Thus, the revenues shall depend on production level of the stock, management
efficiency of the farm and livestock product market prices.

Activity 3.1
1. In groups, carefully discuss the consequences that are likely to happen if factors
to consider in planning for livestock enterprise are not properly considered.

2. Summarise your responses together with lessons you have learnt from this
activity and share them in class.

Development of implementation plans for livestock enterprises

In order to get proper planning for an enterprise, you have to adhere to some general
tips. First, do not be afraid of dreaming big. Second, use planning to think of different
options or alternatives. Third, allocate enough time to the planning process. Fourth,
get advice and opinions from people you know well and trust. Fifth, ask questions
if you are not sure about something rather than doing it blindly. Six, use planning
to break things down and think through them. Last, use planning to think about the
support you have and the support you need.

By adhering to the important factors and tips for planning livestock enterprise you
have learnt, you will be in a position to develop the implementation plan. You can
achieve this by going through the following steps:

Step 1: Identify and summarise your personal goals and enterprise goals. The
personal goals will serve as the internal motive to accomplish the enterprise goals.
It is advisable to set short-term and long-term goals.

Student’s Book Form Twos Book Form Three
Student’
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