Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Submitted to:
Sir Sohail Aslam
Submitted by:
Babar Ali
Mudassar Wazeer
Shahid Hussain
Table of Contents
Introduction........................................................................................................... 3
Scope of dairy farming........................................................................................... 3
Work breakdown structure..................................................................................... 4
Description of project and product........................................................................4
Market and project analysis for decision making...................................................4
2
Strengths......................................................................................................... 4
Market Entry Timing........................................................................................... 5
Proposed Business Legal Status.........................................................................6
Proposed Capacity and revenue.........................................................................6
Proposed Location.............................................................................................. 6
Target Customers................................................................................................... 6
Stakeholder of dairy project................................................................................... 7
Project Investment (capital, running).....................................................................7
Farms Inputs.......................................................................................................... 8
Land Requirement................................................................................................. 8
Labor.................................................................................................................. 8
Animals............................................................................................................... 8
Feed....................................................................................................................... 9
Controlling........................................................................................................... 10
Animal housing.................................................................................................... 10
Vaccination & Medicine..................................................................................... 10
Artificial Insemination (AI)................................................................................... 10
Risk factors and corrective actions...................................................................11
Communication planning..................................................................................... 12
Important notes................................................................................................... 12
Revenues and cost assumption of project for first year.......................................12
ANNEXURE 1........................................................................................................ 13
Annexure 2.......................................................................................................... 14
Vaccination Schedule........................................................................................ 14
Calving Register................................................................................................ 15
Disposal of Death............................................................................................. 15
Reproduction/Insemination/pregnancy Diagnosis/Fallow up/Treatment............15
Reproducti0n Performa..................................................................................... 15
Introduction
A dairy farm with a herd of 12 animals (6 cows and 6 buffaloes) needs a total
investment estimated at Rs.3.1 million out of which the capital cost of the project
is Rs.2.7 million for animal purchase and building construction. The rest is used
to meet the working capital requirement for six months. The project is expected
to achieve revenue of Rs.3.7 million in the first year. The farm will provide
3
employment opportunity to 2 individuals other than the owner /manager. The
cows will cost Rs.200, 000 for each and buffalos cost Rs. 150,000 for each. Each
animal give one calf so the farm will have 12 calves but two of them are
proposed as contingency. The proposed probability is 50% male and 50% female
calves. Each one year old calf will be sold at Rs. 25, 000. Female calfs are kept
and become productive in 3rd year and male are sold. Building and machinery
costs Rs. 600, 000. The milking machine and water pump is required in
machinery which costs Rs. 70,000 and rest amount is used in building shed,
paddocks, store rooms and office room. The major revenue of farm will be dairy
milk. One cow will give 15litre of milk per day which is sold at Rs. 65. Each
buffalo give 10litre per day which sold at Rs. 70. The milk prices are increasing
every year. The direction of shed will be north south. The shed covers area of
120sq.ft. 10sq. ft. shed and 10sq.ft. Paddock is required for one animal. The
project needs two workers as a labor who knows good husbandry of animals. The
animals consume 15 -20kg of silage and 50-80litres of water daily. Dairy farming
is emerging sector of economy and governments focused sector thats why
there is a lot of potential of growth for entrepreneur.
Scope of dairy farming
Dairy farming has a very unique business model, and no other business has the
capability of multiplying its assets while still producing revenue. The dairy
farming has very large room for improvement. In Pakistan, many large MNEs
have invested in dairy sector due to very high demand of milk and milk related
products. Now many companies have launched a lot of dairy products e.g. ice
creams, yogurt, milk packs and lassi brands. The majority of population in
Pakistan is Muslim which required halal food therefore lot of demand for halal
domestic milk. Pakistan is fifth largest milk producer.
Currently dairy sector in Pakistan is running on conventional methods and
technologies resulting low yield that is why, there are very potential and
opportunities for modern entrepreneurs which use modern and latest mains of
running dairy business. The government has taking a lot of steps for
development of live stock by providing free vaccinations, tax exemptions, free
medical consultancies, importing and inventing high yielding breeds. Subsidy is
given to farmers importing dairy machinery. Free bulls are provided for breeding
at government farms.
Therefore dairy farming is one of the very potential and profitable businesses in
Pakistan which required low investment and high returns. The new born animals
become milking animals in 3rd year. Therefore growth in farming is very high and
this growth does not require any further investments normally because farmers
dont have to purchase new animals. The outputs of dairy farming are milk and
meet which are basic needs of human. The basic needs of human are not/less
dependent on economy and other factors. Their demands remain not only
constant but growing due to increase in population.
Along opportunities there are some issue in establishing and managing dairy
farms. The hardest part of setting up a dairy farm is the procurement of goodquality, high-yielding, environment-hardened animals. This is also the most
important activity for an owner of a dairy farm.
4
Work breakdown structure
dairy farm
planning
purchasig
establishi
ng
controllin
g
procurem
ent
animals
building
animal
housing
controllin
g
machiner
y
machiner
y
installatio
n
deceases
control
communic
ation
feed
risk
manangm
ent
schedule
Back bone and main stay of economy. Provides raw material for food &
Leather industry.
Major source of food, i.e. Milk& Meat.
Sizeable foreign exchanges earning through exports.
Wide scope of Milk Production, ranking 5th in the world.
Human resource employment sector.
Stationed, Permanently located secured loaning sector.
Weakness
Low or lack of interaction with farmers. Poor information about each other.
Unorganized sector, unaware of basic farm management practices.
Remote area, lack of farm to market approach & transportation.
Non-availability of communication services.
Lack of farm/ market infra structures & marketing information.
Lack of record keeping on farm.
No or low application of research work.
Management of dairy farm is a challenging job.
Enormous production losses due to endemic diseases every year.
Opportunities
Threats
pricing.
Due to fear of default, banker community has reluctance for lending loans.
High risks of diseases in livestock.
Defective and unorganized markets.
Imbalance between prices of inputs & outputs.
Lack of community organizations and out dated farm practices.
Low demand in summer.
6
Proposed Business Legal Status
The proposed legal structure of the business entity is sole proprietorship. The
capital required is totally funded by owner and no bank loan is needed at start of
project or during life of project.
Proposed Capacity and revenue
The feasibility study suggests an initial herd size of 12 animals, which is
economical to justify the overhead cost. The cattle of first year become milking
animals in third year.
Herds mix of 50% cows and 50% buffaloes are recommended to get the
maximum milk production/animal per year as following:
Animals
Cow
Buffalo
Male cattle
Liters/ day
15
10
Rate(Rs.)
65
70
25,000
Annual
355,875
255,500
25,000
Proposed Location
The dairy farms projects are profitable both in cities as well as in small towns due
to equal demand of dairy products. Suggested location is near cities or major
towns.
Target Customers
This study suggests that milk will be sold on farm door through contractors,
gawalas or people around that area or may be pasteurized at farm by the farmer
and then deliver it to the nearby city. Following are some of the target clients for
a dairy farmer.
Local people
Gawalas
Milk collection companies
Contractors
The cost of production per liter of raw milk should be lower than its sale
price so that farmer could feel it economical.
7
Stakeholder of dairy project
Owner
Labor
Gawalas
Milk contractors
Vaccinators
Silage supplier
Concrete feed (ingredients ) supplier
Description
Cows
Buffalos
Building
Machinery
Rate
200,000
150,000
(Water pump)
10,000
(Milking Machine)
60,000
Working Capital*
Feeds
Labor
Utilities
*First six months
Farms Inputs
150/animal
20,000/month
Total
1,200,000
900,000
530,000
70,000
657,000
120,000
9,000
8
Land Requirement
Proposed project required acres. The land rented at Rs. 50,000 annually. Land
is utilized in shed, paddocks, store and office room, water tub and fodder
bunkers.
Description
Shed
Open paddock
Store Room
Office Room
Stores for fodder, concentrate &
Sq. ft.
120
120
15
15
25
machine room
Labor
For a dairy enterprise, manpower is required for performing different animal
husbandry practices at the farm e.g. feeding, watering, and milking and care of
animals etc. One mature person can handle eight milk animals easily. Each
employ is paid Rs.10, 000 per month.
Animals
Six cows and six buffalos are recommended for project. These animals can be
purchased locally or from markets (government mandies and farms and private
farms). Some nominated markets are:
Arifwala
Gangu
Jogaitpir
Okara
Sahiwal
Each cow costs Rs.200, 000 and each buffalo costs Rs.150, 000 on average.
Buffaloes (Nili-Ravi, Kundi) with second lactation (calving)
Cows (Crossbred Sahiwal-Friesian, Cholistani-Friesian).
12 big animals have 12 small cattles in equal ratio of male and female but due
two diseases and lower medical facilities, 10 out of 12 are estimated as surviving
and 2 as contingencies. Cattle become productive in 3 rd year. Male cattle are
sold at end of each year while female are kept as assets. Cattle consume feed
equal to of productive animals in 1st year and 2nd year they consume of food
of mature animal. In 3rd year they become mature consume maximum feed.
9
The proposed animals are productive for next four calving periods after that they
are culled and replaced with new young animals. If due to some reasons animals
before projected time become uneconomical it must be sold.
replacing
with high
yeld
animals
purchase
culling
low yeild
animals
high
yield
decresin
g yeild
Feed
The projects animals consume two types of feeds. Feed (A) is concrete feed and
feed (B) is silage. Concrete feed is prepared at farm which cost about Rs.20 per
kg and each animal consume 8 kg per day.
The silage is purchased from large farms and supplier costing Rs. 3-5 per kg.
Major suppliers of Silage are located in Okara and Sahiwal. Each animal consume
20 kg of Silage per day.
Raw material for self-made concrete feed
Material
Cottonseed cake(khal)
Maize
Corn gluten
Wheat
Rice polish
mustard oil
Molasses
Millet(bajra)
Salt
Quantity(kg)
2
1
1/8
1
1/8
Very small
10
mustard (khal)
Controlling
Animal housing
Sheds of the animals should be airy with protection of the animals from extreme
temperatures and strong winds. The animal housing should be facilitated with
drinking water for animals. There should be proper drainage system to keep
hygiene at the farm. It consists of a built up animal shed, a brick soling paddock
for animals, calving pens in which pregnant animals are kept separated from
other animals before calving, one room for storing farm equipment and one for
compound feed storage.
The animals can be dehorned, as they are easier to handle and cause less
accidental injury to neighboring animals, handlers, walls, and trees.
Vaccination & Medicine
Vaccination & medicine is required to prevent any disease outbreak in the animal
herd.
Each new animal will be vaccinated before entering the farm. These vaccinations
are provided by Government for both cow and buffalo per year. Vaccines are
produced at Veterinary Research Institute, Ghazi Road, Lahore. Technical
guidance is also provided to the farmers. Farmers can have their animals
vaccinated from the field Veterinary Hospitals and Centers free of cost.
11
High quality breeder Bulls for buffaloes can be provided free of cost on
government dairy farms.
Risk factors and corrective actions
Dairy farming is business of living animals so it is on higher risk. Risk of dairy
project is divided into different categories ranging from avoidable to unavoidable
and from critical to minor. Followings are risk factors with categories and
corrective actions.
Factor
Symptoms
Categories
Reasons
Preventive
measure/
corrective
Death
Foot and
Excessive
Unavoidable
Avoidable
mouth
salivation,
Critical
Natural
Infections
actions
Nil
FMD vaccine
every 4 month
pustules on
Anthrax/red
lips
Fever, grinding
Avoidable-
short
of teeth,
Critical
Bloating
Infection
Vaccination in
Feb. Dead
release of
animal should
blackish blood
not buried in
from naturals
farm
opening
Difficult
Avoidable
Fodder with
Mustard oil
breathing
Critical
dewdrops
with choral
hydrate in
water
Low
Minor
demand of
Low
Contract with
consumption
milk
milk in
processing
summer
companies
All diseases mentions above are major if known in its starting stage. But if
corrective measures are not taken immediately within a few hours these become
critical and case death of animals.
12
Communication planning
Communication is critical fact in project success. Dairy farming also need a
communication with labor and others stakeholders. The owner communicates
instructions to labor in morning and get results of all day progress in evening.
Whenever owner is not available to communicate instructions to labor face to
face he uses cell phone to communicate with labor. He also meets gawalas every
week to solve any issue present. With milk companies owner communicate
through email monthly.
Reason
Instructions
result
Payments
Contracts
When
In morning
In evening
Weekly
monthly
How
Face to face
Face to face
Face to face
Phone/email
Responsible
Owner/pm
Owner/pm
Owner/pm
Owner/pm
Audience
labor
labor
Gawalas
Milk
companies
Important notes
1. Dairy farm project profitability is directly proportional to quantity of
animals and life of project.
2. It is highly advised that in South Punjab pure foreign animals especially
cows are not suitable due to very warm weather.
No. of
Daily milk
Rate
Total Annual
Cows
Buffalos
Male cattle
animals
6
6
5
15
10
65
70
25,000
2,135,250
1,533,000
125,000
sold
Total Revenue
3,793,250
Costs:
Description
Silage
Concrete feed
Total
Cattles feed
No. of animals
12
12
Usage/day
20 kg
8
10
of milking
Rate
5
20
Total Annual
438,000
700,800
1,138,800
284,700
1500/month
18,000
animals
Utilities bills
13
ANNEXURE 1
Nili ravi
Kundi
14
Holstein
Jersey
Annexure 2
Vaccination Schedule
Name of
(ml)
Measures
Disease
Time for
Name of
Vaccination
Vaccine
Duration of
Qty
Immunity
administered
Preventive
Disease
to the expected
(FMD)
symptoms of
Vaccine
Anthrax Anthrax
spore
monsoon season
should be done
(Bowla Pun)
vaccination
every year.
0.5 ml MarchApril or
Rabies
vaccine
be used right
after
preparation.
Hemorrhagic
Septicemia (HS)
10 ml According
to need One year
Vaccine should
HS vaccine 5-10
ml Start of Spring
4 months Should
be given
4 months prior
to the expected
symptoms of
disease.
5 ml Start of
spring 4 months
Should be given
Vaccine
15
Calving Register
Sr.
no
1
2
3
Dam No.
Sire No.
Disposal of Death
Sr. no
Animal/da
m
1
2
No.
Date of
calving
Date of
birth
Sex of calf
sex
Wt .of
calf
mode
Remarks
cost
remarks
Reproducti0n Performa
Brand No.......................Date of birth.................Dam No...............Date of 1st heat...........................
History sheet--------------------
Sr. no.
1
Particular
s
Service
(Date/Sir
e No.)
1st
calving
2nd
calving
3rd
calving
4th
calving
5th
calving