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Prime Off-seasonal Vegetables Farming Group# 6

Submitted to;
Sir Javaid Iqbal

Submitted By;
Group # 06
Shahzad Mushtaq 17
Atif Ali 26
Khuram Shahzad 28

M.Com 4th (MOR)

(2007-2009) 4th Morning 1

Prime Off-seasonal Vegetables Farming Group# 6





My kind Teacher
Sir Javeed Iqbal
By virtue of who’s Prayers, We have been able to reach at
this position and whose hands always rose for prayers and
We feel proud by having guide ling from our teacher
Sir Javeed Iqbal
We cannot forget their cooperation and sacrifices.

We pay our humble gratitude, with humility and

submission, to ALLAH, the Almighty, the Omniscient, the Omnipotent &
the Omnipresent, who bestowed our potential to accomplish this task. 4th Morning 2

Prime Off-seasonal Vegetables Farming Group# 6

The completion of this issue is, mere, the blessing of ALLAH and Holy
Prophet Hazrat Muhammad (Saw).
We feel honor to express my sincere gratitude to Sir
Javeed Iqbal for this supervision, guidance and encouragement
throughout this project. We always found him very much alive, full of
zeal, vitality and intellectual curiosity. With out him ideas, remarks and
endless interest out and completed and thanks to all teachers.

Ch:N Contents Page #

1 Introduction 5

2 Executive Summary 6

3 SWOT Analysis 12 4th Morning 3

Prime Off-seasonal Vegetables Farming Group# 6

4 Market Analysis 14

5 Technical Analysis 16

6 Personnel Analysis 24

7 Financial Analysis 25

8 Financial Ratio

9 Conclusion

10 Reference


Agriculture sector is the backbone of Pakistan’s economy employing 44 % of the
work force and contributing 25% towards GDP. Nature has blessed our country with
an ideal land and different climate for growing variety of vegetables. Agriculture is
still the mainstay of the economy. The geographical location provides a large variety
of agricultural crops, which are used, for food and as well as a raw material for
processing industry. Vegetables grown in Pakistan are unique in taste, aroma and
almost organic as very low quantity of chemicals is being used in their production.
Moreover, these are not genetically modified. 4th Morning 4

Prime Off-seasonal Vegetables Farming Group# 6

Vegetables are rich source of vitamins, carbohydrates, salts and proteins. The farmers
do not get reasonable price of their production in normal vegetable season mainly due
to abundance/flooded supply, which result in financial loss or low profitability to
In order to control/handle the situation properly, growing of vegetables in off-season
is recommended to tackle the standing problem being faced by the farmers and ensure
reward for their hard work & investment in the shape of profits.
With increased health awareness in the general public and changing dietary patterns,
vegetables are now becoming an integral part of average household’s daily meals. In
addition, high population growth rate has also given rise to high demand in basic
dietary vegetables. Increased health awareness, high population growth rate, changing
dietary patterns of increasingly affluent middle class and availability of packaged
vegetables, has therefore generated a year round high demand for vegetables in the
country in general and in major city centers in particular. However, our farmers have
yet not been able to encash this opportunity and still follow traditional sowing and
picking patterns. This results in highly volatile vegetable supply market wherein the
market is flooded with seasonal vegetables irrespective of demand presence on one
hand and very high priced vegetables in off-season on the other. Lack of developed
vegetable processing and storage facility robs our farmers from their due share of
profit margins. In natural season local vegetables flood the markets substantially
bringing down the prices.
In the absence of storage infrastructure and vegetable processing industry in the
country, off-season vegetables farming is the only viable option that can add value to
the farmer produce. The term plasticulture is used to describe the broad and general
use of plastics in agriculture. Plasticulture can extend the growing season and
improve crop health and growth.


Executive Summery
The proposed project is designed as a medium size Farming Unit
spread over a land parcel of 25 acres capable to cultivate various off-
season vegetables, such as, tomatoes, chili,
Cucumber, Bottle Gourd, Bitter Gourd, Ladyfinger and Vegetable
The land can also be utilized for growing seasonal vegetables like
Potato, Carrot, Onion, Garlic and Cabbage etc. in the other idle period. 4th Morning 5
Prime Off-seasonal Vegetables Farming Group# 6

The estimated production capacity of the project is 2,200 tons per

annum of various vegetables at 100% capacity. The proposed project
can bring green revolution in the Agri Sector by producing and making
available vegetables in the seasons other than their normal ones.
There is a huge demand for fresh off-season vegetables in the local as
well as
international markets, which include Europe, Middle East, U. K, Far East
etc. and help in earning valuable foreign exchange for the country.
The Government of Pakistan is also emphasizing for the increase in
production of vegetable and offering loans to the growers, in order to
boost the production of Agricultural Sector.

Name of company: Prime Off-seasonal

vegetable Farm

Address: Jhangi Wala

Location: Bahawalpur

Product Rang: 3

Products: 4th Morning 6

Prime Off-seasonal Vegetables Farming Group# 6 4th Morning 7

Prime Off-seasonal Vegetables Farming Group# 6 4th Morning 8

Prime Off-seasonal Vegetables Farming Group# 6

Installed Capacity:
The estimated production capacity of the project of various vegetables
is at 100% capacity.

Capacity Achieved (At different level)

In first year we achieved 70% in 2nd year 80% in 3rd year 90% in 4th
year 100% and in 5th year also 100%.
Estimation cost of project:
Fixed cost Rs.16, 468,312
Initial Fixed Working Capital
Total Rs.17, 153,312
Means of finance
Debt (40%) Rs.6, 861,324.67
Equity (60%) Rs.10, 291,987
Total (100%) Rs.17, 153,312
Name of Sponsors/directors:
i. Shahzad Mustaq 35%
ii. Atif Ali 35%
iii. Khuram Shahzad 30%

Name of civil Contractors:

i. Asad ali
Implementation Schedule:

S.N Activities Month Year

1 Engineering studies Novembe 2009
and designing of r
civil works:
2 Order for Local 1. Start Novembe 2009
Machinery: 2. Complete r 2009
3 Arrival of local December 2009
machinery at site
4 Construction of 1. Start Novembe 2009
building and civil 2. Complete r 2009
work: December
5 Order for Raw December 2009
Materials 4th Morning 9

Prime Off-seasonal Vegetables Farming Group# 6

6 Start of commercial April 2010


Name of financers
Financial Summary:
Net Profit Margin 17.8%
Debt/Equity Ratio 32%
Current Ratio 2.86:1
Payback period

The year around increasing demand for vegetables in the country is
evident from the following aspects:-

• Natural environment for vegetables growing.

• Increase in population at a rate more than 2%
• Increase in per capita income by 2 to 5%.
• Patronage by Ministry for Health regarding creation of habit for
vegetable eating in order to maintain healthy food balance.
• Availability of cheap labor, and
• Lower cost of production as compared to other countries.

The above factors depict that there is a great potential for marketing
off-season vegetables in the local market at a threefold higher price as
compared to price in the normal season. The production of off–season
vegetables also provides opportunities for exports.
With the induction of an artificial technique for cultivating vegetables
in off-season through tunnel technology by controlling temperature
and moisture to the extent required for specific growth and grow
vegetables in off season as against their normal production time.
Resultantly, an investor can earn more than Rs.100, 000 per acre per
annum and multiply his/her income. The production of vegetables all
around the year has a great charm for the growers to fully utilize the
resources and supplement income from vegetables growing as
compared to other normal agricultural crops.


Prime Off-seasonal Vegetables Farming Group# 6

The project is recommended on a land holding of 10 acres as an

economic size, however, the other land holding capacity of 50, 75 or
100 acres also represent good investment opportunity.

Rs.17, 153,312


Three types of fertilizers i.e. Nitrogen, Phosphorus and Potash are
required for proper growth of plant. If only Nitrogen is used, the plant
growth will be one time. If Nitrogen and Phosphorus fertilizers are
used, the plant growth will be two times and in case of use of Nitrogen,
Phosphorus and Potash fertilizer, the plant growth will be threefold.
With the use of balanced fertilizer quantity, the plant growth
extensively as is evident from the diagram shown below:

Impact of fertilizer on productivity and growth 4th Morning 11

Prime Off-seasonal Vegetables Farming Group# 6


SWOT Analysis

Off-season vegetables

Off-season vegetables have various strengths and they are as follows:

• adoption of different methods of off-season production,

• government policy supportive to off-season vegetable production,
• abundance of suitable and potential microclimatic pockets,
• cooperative marketing system in the developing process,
• women contributing equally in marketing activities,
• grading gradually being introduced, such as tomatoes are graded into two
grades (small and big ones),
• cucumber grown in hill are found competitive in the domestic market due to
its appealing taste, farmers becoming more aware about the domestic market
• Farmers started establishing linkages with the wholesalers and retailers in the
local markets etc.


The weaknesses of off-season vegetables are as follows:

• lack of year round irrigation, lack of all season agricultural roads,

• lack of access to inputs and credits, 4th Morning 12

Prime Off-seasonal Vegetables Farming Group# 6

• inadequacy of internally grown high quality seeds of suitable varieties,

• lack of continuous support of improved technologies,
• inefficiency of farmers on production techniques,
• unavailability of proper packaging materials
• no access to market information systems,
• farmers not aware about tomato processing technology,
• unorganized market centers at the production areas,
• Lack of marketing education, marketing extension system and farmers more
often becoming lesser in price determination process.


Opportunities are as follows:

• increasing demand of off-season vegetables in the domestic markets,

possibility of export market to different countries,
• climatic suitability of hills to produce some unique vegetables with specific
taste and quality, production potentials of cauliflower, tomato and beans in the
early winter months,
• government's provisions include various facilities such as technically capable
agriculture extension department, research agency to deliver services to the
• presence/availability of exporters and various stakeholders,
• availability of commerce and trade related department to provide facilities and
advise to the exporters/traders, availability of the technical institutions related
to processing and packaging technology ,
• availability of plastic crates in the market,
• Existing opportunities to trade at local regional and global levels and
government liberal policy support in providing more open export markets to
the farmers/traders.


Threats of these commodities include:

• Crop failure in any year

• Effect of change in the government regulation.
• Absence of crop insurance 4th Morning 13

Prime Off-seasonal Vegetables Farming Group# 6


Market Analysis
Pakistan is a land of many splendors and opportunities. It ranks as
ninth most populous country of the World with 141 million tough,
conscientious, hard working and devoted people representing a huge
consumer market. Pakistan is, spread over a landmass of 796,095
square kilometers offering vast, relatively cheap land for farming.
Pakistan is a federation of four provinces i.e., Punjab, Sindh, NWFP and
In addition to the broad based local market for consumption of
vegetables, the markets of Afghanistan and those of the Central Asian
Republics & Middle East can be effectively and conveniently catered
from Pakistan.


Prime Off-seasonal Vegetables Farming Group# 6

Vegetable Land Production Total Sale Price

Utilization Quantity (Kgs) Production Rs (Kg )
(Acres) Acre

Cucumber 6 480000 2880000 25

Chili 4 16000 64000 38
Cotton 10 1000 10000 50

The final product will directly supply to the wholesaler eliminating role of intermediaries.
Distribution network of product is illustrated below:

Expected Production and Sale price

Expected production and sale price of some vegetable is given in Table below: -

Production of various vegetables during the year 2005-06 4th Morning 15

Prime Off-seasonal Vegetables Farming Group# 6



PROCESS FLOW: 4th Morning 16

Prime Off-seasonal Vegetables Farming Group# 6


• Sowing of seeds in a separate plot of land for Nursery.

• Preparation of seed beds in the land for cultivation of
• Using fertilizer in the soil to maintain its fertility.
• Re-plantation of nursery in the soil or sowing of seeds
directly in the soil.
• Maintaining level of moisture in the soil.
• Protection from the pests, diseases and other wild growths
by using pesticides/sprays of chemicals and training &
• Using fertilizer of different varieties for the smooth growth
of plantation.
• Picking/harvesting at various times as per
nature/requirement of the plantation.
• Grading of crop on the basis of quality and other
• Application of post harvesting technology for seasoning,
packing and storing the vegetables in order to fetch the
maximum price.
• Transportation to the sale points in local or export markets
for its onward disposal.

Plantation & Growth Essentials

There are 15 essential requirements for healthy growth of a plant. The requirement
and their respective sources are provided in the following table: 4th Morning 17

Prime Off-seasonal Vegetables Farming Group# 6

Fertilizers on Production

Using fertilizers containing Nitrogen, Phosphorus and Potash the yield of the crop can
be maximized. Appropriate quality and quantity of fertilizer plays a great role in the
production and quality of vegetables

Off-season cultivation methods

There are number of ways and methods to cultivate vegetables in off-seasons. Some
of the methods are explained as under: -

Natural method by selection of appropriate area

The off-season vegetables are grown in the areas where the climatic conditions are
moderate for both normal as well as for off-seasons. Winter vegetables are grown in
summer on hilly/semi hilly areas where climatic conditions are favorable for a
particular vegetable. Like wise summer vegetables are grown in winter season in the
valleys and across the sea areas.
The production cost of vegetables under above conditions is very high due to
transportation of crop to the markets. Moreover, the transportation of crop over long
distance markets causes post-harvest losses. These drawbacks lead to the adoption of
artificial methods of cultivation in off-season, nearer to markets to tackle heavy
transportation cost and to reduce post-harvest losses.

Artificial Methods

Vegetables can be grown in off-season through artificial methods; the details of these
methods are given below:

Growing Beneath the Sarkanda3

This is an old method and is usually adopted near the big cities. The main vegetables
grown under this method are tomato, chili, cucumber, and bottle gourd. The nursery
of these vegetables is planted in October/November and a wall of Sarkanda is affixed
in the direction of North South, which protect plant from cold winds and mist. This
method of cultivation is not beneficial because the growth of the plant tends to be
slow, as the plant does not receive required sunshine and desired humidity.

Building of Green Houses 4th Morning 18

Prime Off-seasonal Vegetables Farming Group# 6

Through building green houses, the sunshine intensity is controlled. The vegetables
under this method are grown mostly in the winter season. Here the temperature,
humidity, carbon dioxide, ventilation of air and irrigation etc. is controlled. Green
houses can be built of plain glass or of fiberglass material. The main drawback in the
usage of this method is heavy capital cost.

Plastic Tunnel

Cultivation by this method is gaining popularity because of low cost and easy usage.
Plastic tunnels are transparent which provides required sunshine to the plants, and the
plastic also plays a barrier against the cool air in winter.


Various types of structures are available to lengthen the growing season for the crop
and improve overall crop health and quality. The following are just a few of the
structures available, such as high tunnels, low tunnels, walk-in tunnels, and
greenhouses. Structures that are used for winter production must be able to withstand
heavy rainfall, snow, and wind. Structures that are used for summer production must
have good ventilation. Many structures may not be suitable for year-round
In the construction of tunnel the major materials involved are mild steel bars and
plastic sheets. Plastic sheets are used for roof covering of the tunnel shaped
construction, which is built with steel bars. Bamboo lengths can also be used in some
proportion with the mild steel bars. Plastic sheet is to be spread in such a manner that
it enables the stoppage of cold air from outside.
The tunnel construction offers maximum crop yield, better maintenance of the
fertility of land, controlled temperature and humidity, protection from wild animals
and insects and better water conservation.
There are three types of tunnels, known as high, low and walk-in tunnels.

Low Tunnel

It is cheaper than high tunnel but creates difficulty for soil preparation, spraying and
The tunnels are suitable for cucumber sown flat bed, melons, watermelons, bitter
gourds, squashes, and snake gourds etc. The crop yield in this type of tunnel is
however low compared to high tunnels. 4th Morning 19

Prime Off-seasonal Vegetables Farming Group# 6

Walk-in Tunnels

Walk-in tunnels are lower than the high tunnels but they are gaining popularity as
they provide high yield compared to low tunnels. The tunnel is suitable for growing
tomatoes, cucumbers, sweet pepper and hot pepper.

High Tunnel

High tunnel facilitates easy access for soil preparation, picking and spraying due to its
width and height. The crop yield is maximum in this type of tunnel. The tunnel is
suitable for growing tomatoes, cucumbers and sweet peppers. 4th Morning 20

Prime Off-seasonal Vegetables Farming Group# 6

Recommended Tunnel

Cultivation is recommended with the use of high tunnels on the basis of its high
production capacity. All the calculations are done on the basis of high tunnel

The specification of high tunnel is given in the following table:

Dimensions of High Tunnel:

The cost of such tunnel amount to Rs.85, 000 excluding the cost related to plastic
used as a shield (Cover) and mulch. 4th Morning 21

Prime Off-seasonal Vegetables Farming Group# 6


Following plant and machinery is required for an off-season vegetable farm of 10


Soil Leveler/ Scraper
Spray Machines & Farm Tools
Tractor & Cultivator
Other farm equipments


1. Tunnel material like MS bar, Plastic Sheet, Iron Wire, Bamboo, \is
available locally from different suppliers
2. Seed suppliers like Agriculture Department and Punjab Seed
Corporation are the major suppliers of hybrid seed
3. Fertilizers of all varieties are available locally
4. Pesticides of different nature are also available locally
5. Water is available from canal or can be had from tube well
installed by the farmer 4th Morning 22

Prime Off-seasonal Vegetables Farming Group# 6

Utilities Required

1. Electricity
2. Diesel (for tube well operations)
3. Water
4. Telephone/Fax


Table: Sowing and Picking period of certain vegetables

Vegetables Sowing Period Cultivation/Picking Period

Cucumber February & March April to July

Chili February & March April to July
Cotton April October
(Kapas) 4th Morning 23

Prime Off-seasonal Vegetables Farming Group# 6

Photos during Visits 4th Morning 24

Prime Off-seasonal Vegetables Farming Group# 6


Personnel Analysis

The Human resources at farm are depicted below in tabular form.


Category Nos per Annual
.) Cost

Manager 1 40,000 480,000
Manager 1 35,000 420,000
skilled labor 5 8,000 480,000
un skilled
labor 10 5,000 600,000
TOTAL 1,980,000 4th Morning 25

Prime Off-seasonal Vegetables Farming Group# 6


Financial Analysis 4th Morning 26

Prime Off-seasonal Vegetables Farming Group# 6


Ration Analysis:


Rations Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit 17.8% 22.8% 27% 30.4% 28%
Gross Profit 47.5% 40.8% 42% 42.3% 39%
Operating 38.7% 32.3% 33.7% 34% 30%
Profit Margin

Rations Year 1 Year 2 Year 3
Current Ratio 2.86 1.44 1.03
Quick Ratio .59 .24 .08
A/c Receivable 5 5 5
Inventory Turnover 8.9 10.51 9.85
Days Sale’s in 41 34.7 37
Days Sale in A/C 73 73 73

Debt Ratio:
Ratios Year 1 Year 2
Debt/Equity Ratio 32% 25% 4th Morning 27

Prime Off-seasonal Vegetables Farming Group# 6


Pakistan has an abundance of fresh vegetables and cheap labor. During the production
season, prices of vegetables are very low. For example, one kg fresh spinach was sold

The institutional market for off season vegetables is huge and growing. Middle East
and Far East countries offer many opportunities to Pakistani exporters of off season
vegetables. Off season vegetable line does not require very heavy investment. Include
tunnels material, all other equipments can be made locally. The approximate cost of
tunnels in an acre is Rs.100000 which can provide 1200 mun cucumber in an acre...
The capacity of a tunnel is very important as it is the main component of the off
seasonal farming process.
This is an excellent time to enter into off season vegetables market. Local market is
developing rapidly and demands for off season food is increasing due to growing
population. To satisfy the growing demand, many farmers enter into this market.

The main purpose to enter into this project is to provide fresh vegetables for the
people of Pakistan in off season. And other aspect of this project is to get huge profit
because off season vegetables provide good profit for the investor. In this project we
chose two vegetables i.e. cucumber and shimla mirch and a crop i.e. cotton for
cultivate in 10 acre.
The importance of this project is that to grow the off-seasonal vegetable and to
provide the fresh vegetable whole the year.


1. Sir Javeed Iqbal

2. Project management by Persana Chandra
5. 4th Morning 28