Hamza Irfan Awais Younas Usman Bukhari Asim Khalid Mudassar Nawaz Shazib Qamar

Project Manager CFO Marketing Manager Operations Manager Chief Accounts Officer Legal Advisor

y National
y Non Industrial
y Conventional Technology
y Medium in Scope y A Grass Root Project "Normal in nature

Owner

Construction

Project Management Company

Supply

Technical

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2008-09 51.3% contribution to national GDP Value of livestock is 6.1% more than combined major and minor crops Focal point of government policies .8% contribution of total agricultural sector 11.

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.y Strategic agreements between y ZTBL & M/S Nestle Pakistan limited y ZTBL & M/S Pakistan Dairy development company y Increase milk supply. y Mitigate poverty and y Improve the living standard of the rural population.

Wheat straw(from land owners) Green fodder(grow themselves on leased land) Mineral mixture(available from factories or outlets) .

e. though unskilled (Still demand is high and supply is low) .Pakistan: 175 million people. only 14% Fodder yield very low -24 Tones/hectare (Australia approx 70 Tones/hectare) Largest irrigation network in the world Cheap farm labor. i.8 million hectares. high milk consuming tradition Some facts about agri-sector Irrigable land in Pakistan 20 million hectares Fodder cultivated in 2.

The feasibility study suggests an initial herd size of 200 Cows. The farm size will increase to approximately 1. .000 cows within 10 years. which is economical to justify the overhead cost. Herd mix of 100% cows is recommended to get the maximum milk production round the year.

40/liter.Cost-based strategy In this feasibility study. dairies & milk shops etc. @ Rs. . it is assumed that all the milk will be sold to milk processing companies.

Dairy Companies 3. Milk collection companies The cost of production per liter of raw milk should be lower than its sale price so that farmer could feel it economical. Milk outlets in local markets 2. 1.Following are some of the target clients for a dairy farmer. .

SWOT Analysis .

Stationed. Provides raw material for food & Leather industry. ranking 5th in the world. i. Major source of food. Permanently located secured loaning sector.Back bone and main stay of economy. Sizeable foreign exchanges earning through exports.e. Milk & Meat Source of Farmyard Manure (FYM). Huge demand and supply gap in dairy sector. . Wide scope of Milk Production. Ample human resource employment sector.

. Unorganized sector. Lack of farm/ market infra structures & marketing information. Remote area. lack of farm to market approach & transportation. Non-availability of communication services.y Lack of appropriate knowledge. unaware of basic farm management practices. research extension Lack of commercially viable breeds of animal Lack of education and initiative in farmer. traditional approach due to lack of skills and management. Lack of record keeping on farm.

y Govt. Vast range of area of operation. more needs and scope of development. . Value added dairy products are in demand. Commercially viable sector with great credit potential and absorption capacity. Ample opportunities are available in the Banking Sector. Dairy products needs are 30% higher than supply. of Pakistan & Sate Bank of Pakistan priority y y y y y sector.

Lack of community organizations and out dated farm practices. Imbalance between prices of inputs & outputs. Lack of media projection. non-recognition of problems and monopoly of multinationals. banker community has reluctance for lending loans. Rising trend of cost of production with higher rate of interest as compared to profit ratio.y Implementation of WTO will result in open & competitive y y y y y y y commodity pricing. Due to fear of default. . Defective and unorganized markets. High risks of diseases in live stock.

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y y y y y y y y y y y y y Noon Pakistan Nestle Milkpak Prime Dairies Idara-e-Kisan (Halla) Chaudhry Dairy Millack foods Dairy Land Engro foods Limited ShakarGunj Foods Alturhem Milk JK Dairies Doctor Dairies Gourmet Foods .

y Total Project Cost: 84.000. y Herd mix: 100% cows.y Proposed capacity: for 200 cows with an upper limit of 1000 cows at most. y Business status: Sole Proprietorship/Partnership/Company Pvt Ltd. .000.

Sadhoke 20 km off G.T road Lahore District. .Location of our dairy farm is Darajke.

Approach to site Approach to the dairy farm is convenient. 000. The road is also doubled well carpeted from ravi bridge to Sadhoke.Availability of land is easy because of the links of the project director over there. 000. We need 3 acres of land for our dairy farm and it cost Rs. . From Sadhoke to Darajke is single road but well built. While coming from Ravi bridge G. Any vehicle from car to 24 wheeler truck could approach there easily.T road it is 40 km and coming from Thokar Niaz baig it is 56 km approxiamately. 3.

Sheikhupura and Sialkot. Collection companies Milk outlets and dairy companies are easily accessible in the areas of Lahore. rice straw. fodder etc. Gujranwala. Gujranwala is further 60km through G. Sialkot through Pasrur road is further 50km. calcium.T road. Dairy companies 3. . Transportation and marketing of finished product Our finished product has to reach to two targets 1. But the most consumable feed is fodder for which the priority will be to purchase it from surrounding villages.y As raw material here mostly. Milk outlets in local markets 2. consists of feed and feed will be purchased from all over the Pakistan like magnesium.

So. . the water will be attained by the canal and through boring. Availability of power and source Electricity and sui gas is needed in terms of power for the dairy farm. So.Darajke is in the center of city Kamoke and Muridke and these both cities are the hub for rice cultivation. Sui gas commercial connection is installed in the dairy farm. so the availability of water is in too much excess over here. WAPDA is present over here at Darajke but during summer season load shedding leads to 10-12 hours. for this reason we have purchased a 25KVA generator to overcome the load shedding. Upper Chenab canal also passes through these areas.

It is also used for household fuel requirements by the villagers.Farm has its own well-designed system for drainage of liquid effluents. it would be sold to fertilizer companies as well as the local farmers. it is used as farmyard manure (FYM). As far as cow-dung is concerned. . Therefore.

08 0.01 0.77 3 (appx) .01 0.57 0.51 0.Description Shed for cows Cage for calves Shed for calves Stores for fodder Utensils and milk storage Servant premises Bunker silage Total Area (acres) 1.01 0.

000 600.000 350.000 300.000 500.000 1.000 150.000 4.Equipment Maize cutter (1) Milking machine (1) Milk chillers (2) Generator (25 KVA) Pump (1) Ventilating fans (4) Trolley (1) Tractor (1) Total Cost (Rs) 450.000.000.400.000 9.000 .

000 180.000 84.Description Farm Manager Technician Workers No.356.000 672. 1 1 8 1 11 Annual Salary (Rs) 420.000 1.000 Tractor driver Total .

cotton seed hull. sodium. oat straw. y Daily consumption/animal: Approximately 50kg fodder per day. y . iron) y Fodder crop (wheat straw. calcium. millets. sugarcane grass. rice straw. grasses. corn cobs etc). potassium. maize. oats.Minerals (magnesium.

.y Artificial Insemination charges: Almost 5000 Rs per animal per year. y Medical Charges (vaccination etc): 2000 Rs per animal per year.

Holstein Australian Freisian Sahiwal Jersey .

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000 .000.000 73.000.000 9.000 1.000.000 100.000 3.000. in actual 40.000.000 900.500.Capital Investment y Animal Cost (200) y Building/Infrastructure y Land (3 Acre) y Machinery & equipment y Pre-operating cost y Office Vehicle y Office equipment y Total Capital Costs Rs.000 20.

000 ____________________________________________________ y Total Capital Cost y Total Working Capital y Total Project cost 73.000 .000.500.000 1.500.000 y Total Working Capital 1.000 84.500. in actual y Raw material Inventory 1.000 y Cash in hand 500.Working Capital Rs.000.

Investment y Personal Investment (50%) y Bank Financing (50%) y Total Investment Rs.000 42.000 84. in actual 42.000.000.000.000 .

460. of Cows * Milk per Cow (Liters) * No.000 .000 Total Milk Production (Liters) * Sales Price (per liters) = Total Revenue 1.000 * 40 = 58.460.No. of Days = Total Consumption 200 * 20 * 365 = 1.400.

880. In Actual Total Revenue 58.000 Gross Profit 40.000 Raw Material Cost 17. of Cows * Days in Year = Total Annual Consumption 20* 200* 365 = 1.000 Operating Cost 10.460.Fodder per Cow (Kg) * No.520.500.380.400.000 .000 = 17.000 Price of Fodder (per Kg) * Total Consumption = Total cost of Fodder 12* 1.000 Net Profit 30.000 _______________________________________________________________ Rs.520.460.

380.000.000.000*200) Plant & Machinery Rs.000 = 2. In Actual 25.000 * 10) / 10 84.000 6.000.000 + 26.00 = 55% Salvage Value Land Animals (30.75 years Return on Investment (ROI): Return on Investment (ROI) = Average Annual Earning / Average book Investment (30.000.380.Pay Back Period (PBP): Pay Back period (PBP) = Original Investment / Annual Income = No.000.000 / 30. of Years 84.000.000 .000 4.

271 84.Net Present Value (NPV): NPV = Discounted Inflows Original Investment NPV = 164.962 .849.000 = 1.000 = 80.849.271 / 84.000.849.271 Benefit Cost Ratio (BCR): BCR = Discounted inflows / Original Investment BCR = 164.000.

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Purchase of land Construction Electrical and wiring Water and gas piping Installment of equipment Purchase of cattle Housing of cattle Milking process Sale of dairy products .

y Construction: The construction contract is done with Izhar construction Pvt Ltd. gas and water piping is to subcontracted by the construction company itself. y The total contract has been undertaken at an amount of Rs 20 million. . y Electrical works.

y Guestimating Approach te = (to + 4tm + tp) / 6 to = 5 months tm = 7 months tp = 9 months te = 7 Months * This method is used on the based on previous industry information .

Zero date 1st Feb 2011 Feb March April May 15 1 15 1 15 1 15 1 Ending date 31st august 2011 July 1 15 1 June 15 Aug 15 1 Sept 15 1 Oct 15 1 Nov 15 1 Dec 15 1 Jan 15 1 Feb March 15 1 15 Purchase of land Construction Electrical Water & gas Equipment installation Purchase of cattle Housing of cattle Milking process Sale .

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