India Region

Bihar’s Goat Entrepreneurs Reach New Heights with Weight-Based Pricing

22 January 2025, Patna: Collective action is giving smallholder farmers in the rural heartlands of North Bihar fresh hope. Through the implementation of a weight-based pricing mechanism, seven Farmer Producer Companies (FPCs) under the Bihar Sustainable Livelihood Development Project (BSLD) initiative achieved a significant milestone on New Year’s Eve 2025 by selling goats for INR 20 lakh (USD 23,250).

Goats, often called the “poor man’s ATM,” help many families by providing both money and food. However, problems like unfair pricing have stopped them from reaching their full potential. The success of these Farmer Producer Companies (FPCs) shows how working together can help farmers earn better money and become financially stronger.

Technical Support to the FPCs

As a technical support agency, Passing Gifts- A Subsidiary of Heifer International leverages its expertise to assist FPCs in boosting productivity, ensuring fair pricing, and strengthening market connections. The BSLD initiative, aims to uplift 70,000 smallholder farmers across six districts in Bihar, plays a crucial role in driving sustainable development.

“This success highlights the power of collective action and its transformative impact on farmers’ lives,” said Sonmani Choudhary, Program Director, BSLD, Passing Gifts. “We are immensely proud of the FPCs for achieving this milestone, and our continued goal is to integrate such successes into their ongoing journey toward long-term sustainability.”

A Shift to Weight-Based Pricing

Every New Year, the demand for goats increases, but farmers often struggled to get the right price as they were relying on the appearance of the goat to decide the sale price. Alok Kumar, Senior Project Officer for FPO Strengthening, suggested that FPC leaders switch to a weight-based pricing system for selling goats. This change moved away from the old practice, which often led to unfair pricing.

“Selling goats based on appearance often led to unfair prices,” Kumar said. “By switching to weight-based pricing, farmers now get a fair price, leading to better profits and more financial security.”

The Impact of the Change

In December 2024, the seven FPCs collectively sold 376 goats, weighing a total of 6,726.8 kilograms. This change helped 223 farmers, many of whom were women, earn more money and gave them the confidence to grow their businesses. This achievement goes beyond just financial success; it marks a significant shift in how rural communities view goat farming as a profitable business. With better pricing and higher incomes, smallholder farmers are now exploring new opportunities, such as setting up FPC-led sales outlets, making institutional sales, and forming partnerships with both the government and private sectors.

As Bihar’s goat entrepreneurs’ step into 2025 under the BSLD program, they are transforming rural farming, proving that unity, innovation, and support can elevate smallholder farmers and inspire change across India.

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