Pre-Feasibility Study

ENVIORNMENTALLY CONTROLLED DAIRY FARM
(50 AMERICAN COWS)

Small and Medium Enterprises Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
6th Floor LDA Plaza Egerton Road, Lahore Tel 111 111 456, Fax 6304926-7 helpdesk@smeda.org.pk REGIONAL OFFICE PUNJAB REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

8 th Floor, LDA Plaza, Lahore, Tel: (042) 111-111-456 Fax: (042)6304926-7 helpdesk.punjab@smeda.org.pk

June, 2010

Pre-Feasibility Stud

Environmental controlled Dairy Farm (50 Cows)

1 EXECUTIVE SUMMARY ...................................................................................................................... 4 2 INTRODUCTION TO SMEDA .............................................................................................................. 5 3 PURPOSE OF THE DOCUMENT......................................................................................................... 5 4 CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT........................... 6 4.1 4.2 4.3 4.4 STRENGTHS ........................................................................................................................................... 6 WEAKNESSES ........................................................................................................................................ 6 OPPORTUNITIES .................................................................................................................................... 6 THREATS ............................................................................................................................................... 7

5 MARKET POTENTIAL.......................................................................................................................... 7 5.1 5.2 WHITE REVOLUTION ............................................................................................................................. 9 HIGH DOMESTIC DEMAND ..................................................................................................................... 9

6 MARKET ENTRY TIMINGS................................................................................................................. 9 6.1 6.2 6.3 6.4 6.5 PROPOSED BUSINESS LEGAL STATUS .................................................................................................... 9 PROPOSED CAPACITY ............................................................................................................................ 9 PROJECT INVESTMENT ........................................................................................................................ 10 PROPOSED LOCATION ......................................................................................................................... 10 KEY SUCCESS FACTORS / PRACTICAL TIPS FOR SUCCESS ................................................................... 11

7 SECTOR & INDUSTRY ANALYSIS .................................................................................................. 11 7.1 MAJOR PLAYERS ................................................................................................................................. 11

8 MARKET INFORMATION ................................................................................................................. 12 8.1 8.2 8.3 SECTOR CHARACTERISTICS ................................................................................................................. 12 TARGET CUSTOMERS .......................................................................................................................... 12 PAKISTAN’S FIRST ENVIRONMENTAL CONTROLLED DAIRY FARM........................................................ 13

9 LAND....................................................................................................................................................... 15 9.1 9.2 9.3 LAND REQUIREMENT .......................................................................................................................... 15 SUITABLE LOCATIONS ........................................................................................................................ 15 ANIMAL HOUSING............................................................................................................................... 15

10 FARM MACHINERY............................................................................................................................ 16 11 ANIMAL CHARACTERISTICS.......................................................................................................... 17 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 HERD MIX ...................................................................................................................................... 17 BREEDS OF CROSS BRED AND EXOTIC (BOS TAURUS) .................................................................... 17 ANIMAL MARKETS ......................................................................................................................... 17 FEED .............................................................................................................................................. 17 MINERAL MIXTURE ........................................................................................................................ 18 FODDER CROP ................................................................................................................................ 18 DAILY FODDER REQUIREMENT ...................................................................................................... 18 WHEAT STRAW (BHUSA OR TURI).................................................................................................. 18 MEDICATION .................................................................................................................................. 19 VACCINATION & MEDICINE ........................................................................................................... 19 ARTIFICIAL INSEMINATION (AI) CHARGES ..................................................................................... 19 LABOR REQUIREMENT ................................................................................................................... 19

12 FARM OUTPUT .................................................................................................................................... 20 12.1 LACTATION PERIOD ....................................................................................................................... 20 1

PREF-110/June, 2009/4

Pre-Feasibility Stud

Environmental controlled Dairy Farm (50 Cows)

12.2 12.3 12.4 12.5 12.6 12.7 12.8

MILK COMPOSITION ....................................................................................................................... 20 BREEDING STOCK DEVELOPMENT .................................................................................................. 20 INCREASE IN MILK YIELD .............................................................................................................. 20 SALE PRICE .................................................................................................................................... 20 EVENING MILK............................................................................................................................... 20 FARM REVENUES ........................................................................................................................... 21 MALE CALVES ............................................................................................................................... 21

11 FINANCIAL ANALYSIS ...................................................................................................................... 22 11.1 11.2 11.3 11.4 11.5 INCOME STATEMENT ...................................................................................................................... 22 BALANCE SHEET STATEMENT ........................................................................................................ 23 CASH FLOW STATEMENT ............................................................................................................... 24 SELLING ASSUMPTIONS .................................................................................................................. 25 PRODUCTION ASSUMPTIONS .......................................................................................................... 26

12 KEY ASSUMPTIONS............................................................................................................................ 27 13 ANNEXURES ......................................................................................................................................... 28

2 PREF-110/June, 2009/4

All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. 2010 Library Officer 3 PREF-17/ June. the contained information may vary due to any change in any of the concerned factors. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information he/she feels necessary for making an informed decision. please contact our website: www. Although. due care and diligence has been taken to compile this document. Revision Prepared by Issue Date Issued By PREF. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity.smeda.pk DOCUMENT CONTROL Document No.17 4 SMEDA-Punjab June.org. and the actual results may differ substantially from the presented information. 2010/4 . For more information on services offered by SMEDA.

Dairy farming is not an organized sector in Pakistan.436. management.042 out of which the capital cost of the project is Rs. good feeding and animal milking processes. which is still facing challenges due to competition with the unprocessed milk. The entire specific requirement will be met by operations of temperature control through heavy duty ventilation fans. An Environmentally Controlled dairy House with a population of 50 American Holsteins need a total investment estimated at Rs.e. which are running the business of dairy farming in a professional manner.19 years respectively. The judicial use of means and resources to achieve clearly defined goals is the key success factor in modern dairy farming i. in which. 4 PREF-17/ June. Dairy farming is highly complex as it includes breeding. the 50 American Holstein are raised on specific feed to produce milk on high efficiency in order to serve the milk industry of Pakistan. housing.267 for purchasing the animals and constructing the building and the rest is used to meet the working capital requirement. 24. More than 90% of farming is done on subsistence level. inadequate milk supply and poor marketing campaign of the processed milk.128. Milk processing was started in late 1970s.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 1 EXECUTIVE SUMMARY The Environmental Controlled dairy Farm is a project of livestock sector. 23. Projected IRR and Payback of this project are 52% and 3. Dairy farming in controlled environment is a profitable business due to continuous increasing demand of milk in the market. the art of maximization and optimal utilization of resources and means for maximizing productivity and profits. The processed milk has captured only 4% of the total milk market. Processed milk is not the consumer's preference due to high price differential. which were installed in mid 1980s to promote usage of processed milk. There are 28 milk-processing plants in the country. which will be monitored by the concerned staff. feeding. 2010/4 . disease control and hygienic production of milk on farm. There are very few progressive farmers. Most of these milk plants are closed due to lack of professional management.

marketing. Before studying the whole document one must consider following critical aspects. Along with the sectoral focus a broad spectrum of business development services is also offered to the SMEs by SMEDA. This particular pre-feasibility is regarding “Dairy Farm” which comes under “Agriculture and Livestock” sector. This document is in the continuation of this effort to enable potential investors to make well-informed investment decisions. The document also provides sectoral information. SMEDA had adopted a sectoral SME development approach. These documents consist of information required to make well-researched investment decisions. marble and granite. surgical instruments. These services include identification of viable business opportunities for potential SME investors. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective. production. dairy. technology and human resource development. brief on government policies and international scenario. gems and jewelry. In order to facilitate these investors. marine fisheries. transport. 5 PREF-17/ June. horticulture. the document covers various aspects of dairy and livestock concept development. which have some bearing on the project itself. which form the basis of any investment decision.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 2 INTRODUCTION TO SMEDA The Small and Medium Enterprises Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME support program. textiles. leather and footwear. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation. etc. Since its inception in October 1998. start-up. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. A few priority sectors were selected on the criterion of SME presence. 3 PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs to facilitate investment and provide an overview about dairy and livestock farming. Pre-feasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way. The all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including finance. 2010/4 . SMEDA provides business guidance through its help desk services as well as development of project specific documents. SMEDA has so far successfully formulated strategies for sectors including. finance and business management.

one should carefully analyze the associated risk factors. and management. Nutrition is still a problem hampering the livestock productivity in general and milk production in particular Enormous production losses due to endemic diseases every year. whether to invest in the dairy and livestock farming or not. A SWOT analysis can help in analyzing these factors. Low yield of local cows.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 4 CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT Dairy production is all-inclusive activity. Before making the decision. Vast range of area of operation. Remote area. research extension Lack of commercially viable breeds of animal Lack of education and initiative in farmer. Provides raw material for food & Leather industry. Non-availability of communication services.e. ranking 5th in the world. Major source of food. Milk & Meat Source of Farmyard Manure (FYM). Management of dairy farm is a challenging job. Lack of record keeping on farm.1 • • • • • • • • 4. Sizeable foreign exchanges earning through exports. lack of farm to market approach & transportation. Huge demand and supply gap in dairy sector Weaknesses Lack of appropriate knowledge. more needs and scope of development. i. 4. Commercially viable sector with great credit potential and absorption capacity. 6 PREF-17/ June. No or low application of research work and pedigree record keeping. Permanently located secured loaning sector. Dairy products needs are 30% higher than supply. Lack of farm/ market infrastructures & marketing information. reproduction. feeding.3 • • • • Strengths Back bone and main stay of economy. Opportunities Govt. Non availability of international level dairy institute. Wide scope of Milk Production. unaware of basic farm management practices. which can play important role in making the decision. related to animal care. Stationed. of Pakistan & Sate Bank of Pakistan priority sector. traditional approach due to lack of skills and management. Ample human resource employment sector. 2010/4 . Unorganized sector. It is defined as all those aspects and activities relating to rising of dairy animals during their various phases of life to get wholesome milk.2 • • • • • • • • • • • • • • 4.

Australia and United States Threats Implementation of WTO will result in open & competitive commodity pricing. Livestock sector contributed approximately 51. the government has placed livestock on national development agenda. Imbalance between prices of inputs & outputs. It has formulated “Livestock Development Policy” and “Poultry Development Policy”. Government gives high priority to its development and is focused on private sector led development of livestock. The value of livestock is 6. Increasing level of poverty. Low saving. Corporate financing will become a niche in lending market. 2010/4 . Lack of awareness about economics. tax holidays. These companies are serving as platform for investment in livestock sector.1% more than the combined value of major and minor crops. non-recognition of problems and monopoly of multinationals. banker community has reluctance for lending loans. Cooperatives can play a big role for development in dairy sector like India. low holding capacity.4 • • • • • • • • • • • Value added dairy products are in demand. the federal government has substantially increased public sector investment in livestock sector and has initiated mega projects to the tune of Rs. 1. Lack of coordination towards common causes & goals. breed improvement. Massive migration of labor to cities can be checked / stopped.052 billion (2007-08) to Rs. Apart form provincial Government programs. milk and meat production. Defective and unorganized markets. demand & supply in market. Non-availability of subsidy. 1 Source: Economic Survey of Pakistan 2008-09 7 PREF-17/ June.3 %.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) • • • • 4. “Livestock and Dairy Development Board” and “Pakistan Dairy Development Company” have been established. Rising trend of cost of production with higher rate of interest as compared to profit ratio.8 percent of the agriculture value added and 11.Gross value addition of livestock at current cost factor has increased form Rs. 5 MARKET POTENTIAL Livestock plays an important role in the economy of the country. Both policies are aimed at private sector led development of livestock with Government providing enabling environment. 1.287 billion (2008-09) showing an increase of 22.3 percent to national GDP during 2008-09. Lack of community organizations and out dated farm practices. 7.1 billion for strengthening livestock services for improved disease diagnosis & control. Due to fear of default.1 To spearhead the development efforts through private sector. Underpinning the importance of livestock. Lack of media projection. The policies would provide a frame work for accelerated development of livestock. fully autonomous private sector-led.

Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) animal husbandry and management practices in the country. meat and poultry to meet rising domestic demand of ever increasing population and produce exportable surplus as well. The livestock population for the last three years is given below:2 In view of the importance of livestock in the economy as well as in the life of a common man. the Government is trying by all means to fix priorities to increase production of milk. the production of which for last three years is given below:3 2 3 Source: Economic Survey of Pakistan 2008-09 Source: Economic Survey of Pakistan 2008-09 8 PREF-17/ June. The major products of livestock are milk and meat. 2010/4 .

only 14% Fodder yield very low -24 Tones/hectare (Australia approx 70 Tones/hectare) Largest irrigation network in the world Animal herd 47million heads. The Bank has earmarked funds to the tune of Rs. 2010/4 .2 • • • • • • High domestic demand Irrigable land in Pakistan –20 million hectares Fodder cultivated in 2. which is economical to justify the overhead cost. 6. i.0 million per borrower/party. 5.2 Proposed Capacity The feasibility study suggests an initial herd size of 50 American Cows. Nestle Pakistan would help to select and identify good clients for the Bank to improve quality breed of foreign and local dairy animals.000 farms would be covered on yearly basis. So the proposed business can be started before the onset of summer season. Under the scheme 1. though unskilled Pakistan: 169 million people. The Company would purchase milk through its network and make weekly payment of milk sale to the Bank for the adjustment of loan.8 million hectares. two Strategic Partnership Agreements have been executed between ZTBL and M/S Nestle Pakistan Limited and M/s Pakistan Dairy Development Company. though average size 3 head Cheap farm labor. Technical guidance would be provided to the farmers through Nestle Veterinary Doctors. dairy sector would be modernized with a view to increase milk supply. 4 Source: Economic Survey 2008-09 9 PREF-17/ June. The farm size will increase to approximately 250 cows within 10 years time. There would be maximum loan limit of Rs 1. Under this participatory approach. 5. Herd mix of 100% cows is recommended to get the maximum milk production round the year. Although selection totally depends upon the choice of the entrepreneur but this financial feasibility is based on Sole Proprietorship.e. 6. M/s.000 farms during 5 years period involving Rs 700 million.000 million for financing of 50.1 White Revolution4 Under the White Revolution Scheme. Initially the scheme will be for modernization of 5.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 5. mitigate poverty and improve the living standard of the rural population. high milk consuming tradition 6 MARKET ENTRY TIMINGS The demand of milk in summer is high as compared to winter.000 animals (imported cows) during the five years period (2007-2011). M/s Pakistan Dairy Development Company will also help the Bank in the selection of clients and processing of loan cases. That’s why the animals in summer are sold at a bit higher prices as compared to winter.1 Proposed Business Legal Status The proposed legal structure of the business entity is either sole proprietorship or partnership.

218.128.267 15.3 Project Investment The total cost of the project is Rs.998.267 165.000 1.33 Project 52% 68.000 992.752.775 150.021 24.267 for purchasing the animals and constructing the building and the rest is used to meet the working capital requirement.19 The development of urban or semi-urban commercial dairy farms is something new in livestock production.775 24.640.042 Equity 60% 56. Multan.000. 23.470 3.000. Rawalpindi. 10 PREF-17/ June. etc are the major markets of milk.000 1.021 12.436.000 270.000 2.042 out of which the capital cost of the project is Rs. 2010/4 .436.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 6.246 3. Karachi.307.000 23. dairy farms established in semi-urban areas of these cities fulfill the daily need of these cities. However this composition of debt and equity can be changed as per the requirement of the investor.4 Proposed Location 50% 50% 12. Hence.436.218. 24.042 The proposed pre-feasibility is based on the assumption of 50:50 debt equity ratio.218. Metropolitan cities like Lahore.128. Table 6-2 Project Financing Debt Equity Total project Investment Table 6-3 Project Economics Viability IRR (%) NPV (Rs) Pay Back Period (year) 6. Table 6-1 Project Costs (Rs) Account Head Capital Cost Land (4 acres) Building/Infrastructure Animals Machinery & equipment Pre-operating costs Total Capital Cost Working capital Land lease for fodder Raw material Inventory Cash in hand Total Working Capital Total Project Cost Total Cost (Rs) 4.

Processed milk is not the consumer's preference due to high price differential. progeny testing of breeding bull and then making extensive use of these bulls by well-organized Artificial Insemination (AI) program. timely detection of heated. the art of maximization and optimal utilization of resources and means for maximizing productivity and profits. which were installed in mid 1980s to promote usage of processed milk. The over all genetic improvement of all the dairy animals is necessary for improved milk production. management. spraying/ wallowing of animals in summer. mating. 7 7. hence these should be culled. drinking water and feed according to the requirements.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 6. . Dairy farming is highly complex as it includes breeding. Other farm management practices include feeding for growth. pregnancy or maintenance. housing. There are 28 milk-processing plants in the country. The judicial use of means and resources to achieve clearly defined goals is the key success factor in modern dairy farming i. inadequate milk supply and poor marketing campaign of the processed milk. There are very few progressive farmers. The surplus forage should be preserved as silage or hay. Most of these milk plants are closed due to lack of professional management. The processed milk has captured only 4% of the total milk market. the over all performance of herd can be improved. which is still facing challenges due to competition with the unprocessed milk. labor and animals as the major resources.1 SECTOR & INDUSTRY ANALYSIS Major Players Dairy farming is not an organized sector in Pakistan. The thrust in modern dairy farming is on the increased use of capital and management. lactation. Black Quarter. Successful dairy farming harnesses all available resources into productive and profitable unit. Timely vaccination against BVP. If animals are bred within the 60-90 days of calving provided with clean surroundings. Hygienic milk can be produced by the clean and healthy animals through milking parlor. with selected bull or AI service. 2010/4 . feeding. The low yielder animals are uneconomical less then the annual average to keep.5 Key Success Factors / Practical Tips for Success Commercial dairy farmers depend on land. comfortable and ventilated barns. More than 90% of farming is done on subsistence level. Foot and Mouth Disease. 11 PREF-17/ June. which are running the business of dairy farming in a professional manner. Feeding dairy animals on nutritious and high yielding hybrid varieties of forages can be adopted. selection of bull from high producing mothers. Brucellosis along with the prevention of mastitis and parasitic control will also improve the over all performance of dairy herd. hygienic milk production.e. Milk processing was started in late 1970s. disease control and hygienic production of milk on farm. It involves milking records at equal intervals.

Sukhur 10. Raiwaind . Bhagtawal. Dairy Companies 3. Abul Hasan Dairy. Engro Dairies. Mr.Je. Milk collection companies 4. Jhang 13. Dairy Farm. Rahim yar khan 7. 2010/4 . Few of the commercial dairy farms are: 1. Royal Dairies.1 MARKET INFORMATION Sector Characteristics The size of this sector is still growing.2 Target Customers Following are some of the target clients for a dairy farmer: 1. Sargodha 3. Sapphire Dairies. Ever Fresh – Bhera. Sar Sabz Dairy Farm.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) Table 7-1 Project Milk Processing Plants currently in operation Products Location Milk powder/ butter UHT milk /Ghee Pasteurized milk/yogurt Pasteurization milk/UHT UHT milk. Skheki. Okara 2. Sialkot 8. Dr.. Orange Dairies. Sahiuwal Jhang Lahore Rahim yar khan Karachi Lahore Noon Pakistan Nestle Milkpak Prime Dairies Idara-e-Kisan (Halla) Chaudhry Dairy Millack foods Dairy Lnad Engro foods Limited ShakarGunj Foods Alturhem Milk JK Dairies Doctor Dairies Gourmet Foods 8 8. Nestle. J.Motorway 6. CSK Dairies Kasur 9. Lahore 12.Karachi 4. Commercial Dairy farms have been set up in peri urban areas. Badian Road Lahore 11. milk powder Millack Pasteurization milk Olper Milk Good Milk Prema Milk Fresh Farm milk Anmol Milk Fresh Milk Bhalwal-Sarghodha Sheikupura & Kabir Wala Manga-Lahore Pattoki/ Lahore Bhai Pheru Lahore. Sweet water Dairy 8. Dhab-e. Milk processors 2. Contractors 12 PREF-17/ June. Babar Butt.Jhang Karachi Sukkar. Wahdath Dairies.K Dairies. Motorway 5. Dairy Land.

The structure of the farm been designed in such a way as natural flow of water takes places resulting less human effort for cleanliness.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 8.3 Pakistan’s First environmental controlled dairy farm It’s a new and remarkable revolution in dairy sector by creating a self sufficient temperature and environmental controlled dairy farm house. 13 PREF-17/ June. Following are some of the features which are quite different from the other traditional farm houses. No need for the lights at the farm house in day light day time due to semi closed Self sufficient to produce coal free electricity from manure of the cows. 2010/4 . Proper insulation has been used in order to prevent heat coming from every where. Concrete structure been placed which is more durable than the steel one. Low roof height used which required less maintenance and easy accessible. • • • Optimum Temperature of 26°C inside the shed Temperature can be reduced up to the level of 20°C at certain places if required Properly HVAC designed and planned by Engineers • • • • • • • This type of structure is designed to utilize as less electricity as possible.

Efficiency of imported cows do not suffer in hot weather resulting more productivity in Summers.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) • • • Electricity cost is much less than traditional fans barns as used only 4 fans of 1.5 HP whereas other farms Negative pressure fans utilizes 18~20 fans of the same capacity in the same size. 2010/4 . • • No gases no odour and no smell inside the barn due to proper ventilation system Animals are happy and satisfied in cool breeze passing through them from all the sides made a pleasant effect. 14 PREF-17/ June.

498 Open paddock for cows 0. 15 PREF-17/ June. and trees. concentrate & machine room 0. It is assumed that around 0. Islamabad.002 Utensils & milk storage 0.000 per acre in the peri-urban areas of Lahore. walls.498 Calves shed (15 days – 6 months) 0. as they are easier to handle in barns and cause less accidental injury to neighboring animals. 10. Multan & Faisalabad. agriculture land for fodder production can be acquired with an annual rent of Rs. 9. The animals can be dehorned. one room for milk storage. It consists of a built up animal shed. calving pens in which pregnant animals are kept separated from other animals before calving. where water. However. Wash room 0.137 Stores for fodder. Multan & Faisalabad would be at least Rs 1.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 9 9. The area for fodder production can be acquired on lease. Table 9-1 Land Requirements (for target size of around 250 animals) Description Area (Acres) Shed along with free stalls for Cows 0. The animal housing should be facilitated with drinking water for animals. electricity is available to irrigate the crops are suitable locations for establishing a dairy farm. Majority of this land would be used for building sheds for the animals to protect them from severity of the weather. a brick soling paddock for animals.002 Servant Room.612 9. however in this pre-feasibility it is assumed that the fodder will be purchased and stored when it is available in abundance at low price.2 Suitable Locations Peri-urban and rural areas in the neighboring areas of Lahore. 2010/4 .137 Open Paddock for calves (15 days – 6 months) 0.000 per acre.1 LAND Land Requirement About 4 acres of land should be purchased for building a dairy farm project of animals starting from 50 animals and at a target herd size of 250 animals in a period of 10 years.3 Animal Housing Sheds of the animals would be airy with protection of the animals from extreme temperatures and strong winds. There should be proper drainage system to keep hygiene at the farm.000. one room for storing farm equipment and one for compound feed storage. Land cost per acre in the neighboring areas of Lahore. Faisalabad & Multan etc.33 acres of land would be required per animal for fodder production per annum. Karachi. handlers.126 Total Land Requirement 3.212 Bunker silage 2.

000 150. water pumps. ventilation fans.267 10 FARM MACHINERY The pre-feasibility suggests only few farm equipments like cages. concentrate & machine room Utensils & milk storage Servant Room. 2010/4 .000 120. concentrate & machine room Utensils & milk storage Servant Room. Ft.000 168.600.400 50.000 66.640.000 1. Wash room Silage bunker (C ft.ft 400 10 200 10 500 500 500 20 Total Cost 1.) Table 9-3 Total Infrastructure Cost Description Shed along with free stalls for Cows Open paddock for cows Calves shed Open paddock for calves Stores for fodder.200 200.000 200.867 2.000 400.000 16 PREF-17/ June. milk utensils and details are given as follows: Table 10-1 Farm Equipment Cost Description Calf feeder Milking machine Chiller Generator (15 KVA) water pump Fan pads Heavy Duty Ventilation Fans Calf cages Total Cost (Rs. 12.000 250.000 400. Wash room Silage bunker (C ft.000 223.000 500. 80 80 20 20 100 100 20 122 Sq.000 250.000 840 840 100 100 1.000 8.000 4.000 20.000 150. 1.000 20.) Unit Cost Rs.000 66.000 50.000 11.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) Table 9-2 Space Requirement per Animal Description Shed along with free stalls for Cows Open Paddock for cows Calves shed Open paddock for calves Stores for fodder.) Total Infrastructure Cost Sq.218. milk machines.193 Rate/Sq.000 40.ft 4.000 Animals per equipment 5 50 50 50 50 50 50 5 Total Cost Rs.000 12.

11. The major historical development of this breed occurred in Netherland and more specifically in the two northern provinces of North Holland and Friesland. 2010/4 . Government and private livestock farms are the main sources for purchasing milk animals. About 1 kg of Total mix ration on dry matter (TMR) is required for the production of 2 liters of milk. For cross herd and for imported animal Austrex. / Kg 5 20 5 6 A byproduct of wheat harvesting used as dry roughage for livestock and dairy animals The concentrate feed price is Rs 20 per kg if purchased from market. Preferably. Holstein heifers can be bred at 15 months of age. Wheat straw5 is also used as dry roughage along with green fodder. These feed ingredients when mixed according to feed formula will provide adequate energy according to energy and protein requirements of animal in production. Milk quality is good . stylish animals with color patterns of black and white or red and white. The cows are comparatively high yielder as compared to buffaloes.S. These animals are available at an average price of $3. Holstein gestation is approximately nine months.400 per animal HOSTEIN. There are different contractors available in the markets that help locating the proper animals.protein level is 3.2 Breeds of Cross bred and Exotic (Bos taurus) The Holstein cow originated in Europe. the Australia and U. 11. The photos of different breeds are given in Annexure 4.3 Animal Markets Animal markets (mandies). These contractors work on commission basis and the commission rate charged may vary from 1-2% of the animal price. The normal productive life of a Holstein is Nine years. Holsteins are large. It includes dry matter and concentrate to increase animal productivity.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11 ANIMAL CHARACTERISTICS 11.A are the best international markets for the production of cows. It has now been extensively tested in the tropical and sub-tropical areas of Australia.1 Herd Mix The ideal mixed herd should consist of 100% cows for the viability of a farm.4 Feed The ration is allowance of nutritionally balanced feed in 24 hours. Elders. Wellard and Garsa Livestock 11.4 percent and butterfat is approximately four percent. when they weigh about 325-400 kgs body weight between 24 and 27 months of age. 17 PREF-17/ June. Holsteins are most quickly recognized by their distinctive color markings and outstanding milk production. Table 11-1 Dry matter for Cow Feed Dry matter description Silage Concentrate6 % of Total 53% 47% Unit Cost Rs.

and very popular dry roughage. and Hyderabad. consumes 50-55 kg fodder daily while cow consumes about 40-45 kg. bhoosa. Sukkur. 2 per kilo (80 Rs per mond) or even more. It includes a mix of minerals (magnesium. The fodder yield (except multi cut Mott Grass which yield 100-150 tones/ acre in 4 to 6 cuttings per year) varies between 10 tons to 40 tons per acre depending upon the fertility of land. 7 (Reference: Livestock & Dairy Development Department. Sargodha. Larkana and Nawabshah in Sindh for peri-urban dairies. typical. 0.5 Mineral Mixture This is used as a feed supplement. Mineral mixtures are good source of energy and increase the animal productivity to give milk. sodium and salts). however. mott grass. maize and millet have been developed. Lahore) (Reference: FAO Statistical Databases) 18 PREF-17/ June.8 Wheat Straw (Bhusa or Turi) Wheat straw is major. Mardan. which is acquired on lease or owned by the entrepreneur. it is available at Rs. 11. Sheikhupura. and Renala Khurd (Punjab). and Peshawar (North West Frontier Province). lucerne.Sudan grass hybrids. These have become very popular in irrigated areas such as Kasur. Sorghum. Due to increased demand. iron.7 Daily Fodder Requirement There is no fixed fodder requirement for the animals but a rule of thumb says that an animal needs daily fodder equal to 9%-10% of its body weight (3% of live body weight on Dry Matter Basis). sorghum. and is the main or even only major dry roughage used on almost all the dairies. 2010/4 .6 Fodder Crop Fodder is grown at the land. in the harvest season. Charsada. berseem. improved forage crops such as multi-cut oats. quality of seed and application of fertilizer. Nowshera. 11. It is always chaffed. According to estimates. In all urban dairies visited wheat straw was bought at Rs.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11. and modern mechanical threshers have been designed to break the straw.40 per kilo. Faisalabad. Gujranwala. Table 11-2 Types of Dry & Green roughage7 Dry Roughage Green Roughage Summer Fodder Winter Fodder Wheat Straw Maize Barseem Rice Straw Sorghum Alfalfa (Lucerne) Oat Straw Millet Oats Maize/Sorghum Stubble Mott Grass Rye Grass Sugarcane Baggass Sadabahar Sugarcane tops Cotton Seed Hulls Guar Corn Cobs 11. Traditional threshing methods break the straw into short pieces. in places where it is produced.

Sc.g.000 for each cow per year.80 5 20 Vaccination & medicine is required to prevent any disease outbreak in the animal herd.07 6.35 138. (Honors) degree in Animal Husbandry (AH) and an additional requirement of MBA may be hired as a farm manager so that he can handle the farm practices. Technical guidance is also provided to the farmers. The supervisor with B. Farmers can have their animals vaccinated from the field Veterinary Hospitals and Centers.3 35 61. One skilled person can handle 15 milk animals easily. Each new animal will be vaccinated before entering the farm. Lahore.10 Vaccination & Medicine 70. watering. A supervisor cum farm manager can be hired to supervise all the farm activities. 11. 11. feeding. 2. Vaccines are produced at Veterinary Research Institute. Table 11-4 Labor Requirements Description No. 1.93 5 20 Amount Cow Dry Concentrate Total Calf younger than 1 year Dry Concentrate Total 11. Farmers can also obtain these vaccines on payment according to prescribed schedule from the Institute.000 684. The vaccines are provided to the Government Farms and Hospitals on payment.5 doze of insemination.000 19 PREF-17/ June. milking and care of animals etc. manpower is required for performing different animal husbandry practices at the farm e. Some of the companies dealing in imported semen are given in Annexure 3.25 1.000 Total Labor Cost 5 57.3 5.000 per cow per year.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) Table 11-3 Animal Daily Feed Requirement of Cow & Calf Daily Requirement Cost/kg (kg) 14. Ghazi Road. 2010/4 .000 Workers 4 8. administration & account matters at the dairy farm.12 Labor Requirement For a dairy enterprise.9 Medication 11.11 Artificial Insemination (AI) Charges Artificial Insemination (AI) charges will be Rs 5. Salary/month/Person Farm Manager 1 25.60 208. It will cost Rs. On average each cow will be requiring aprox. Four farm workers are recommended for handling 50-animals.000 384.000 Annual Salary (Rs) 300.95 26.

Phospholipids are lower but cholesterol and saturated fatty acids are lower in cow’s milk. slightly more lactose. The first generation (F1) will be capable of giving milk after 2 years in cows. 20 PREF-17/ June. more total solids. 12.5 Sale Price In this feasibility study. 12. @ Rs. precursor for vitamin A.540 liters per lactation. Cow's milk contains 12-14% total solids and the butterfat content is usually between 3% and 5%.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 12 FARM OUTPUT 12. Cow’s milk enriches the yellow pigment carotene.6 Evening Milk Milk can be stored in a milk chiller on 14. 12. Apparently the buffalo converts the carotene in its diet directly to vitamin A. the vitamin A content in buffalo milk is almost as high as that of cow's milk. Generally the lactation period of cows is 305 days. For calculation. Despite the absence of carotene. the feasibility has taken 100% of the total number of cows as wet cows. The mineral content of cow's milk is nearly the same as that of buffalo milk except for phosphorus. Normally the protein in cow’s milk contains less casein and slightly less albumin and globulin. The calving interval in cow has 13 months.1 Lactation Period The lactation period is the period during which the animals yield milk. it is assumed that all the milk will be sold to milk processing companies. 2010/4 . and its yellowness is frequently used to differentiate it from buffalo’s milk in the market. which occurs in roughly twice the amount in buffalo milk. On an average. more fat.3 Breeding Stock Development The proposed farmer will raise breeding stock containing future dairy animals at his own farm by selecting good off springs of high producers.5% TS at the farm if milk collection is not possible in the evening.4 Increase in Milk Yield The milk yield will be improved as a result of appropriate breeding systems discussed earlier. but buffalo milk tends to be lower in riboflavin. 12. These animals are called wet animals.2 Milk Composition Buffalo milk contains less water. Low yielding animals are sold in the market. house holds & milk shops etc. Instead of breading bull the Insemination will be done Artificial Insemination of imported Semen of breeding bulls. The average milk yield of cow is estimated at 28 x 305 = 8. and more protein than cow's milk. 12. The two milks are similar in B complex vitamins and vitamin C. cows are productive for 9 to 10 years. 35/liter.

12. They can also be reared in separately for beef production for getting good profit margins. 21 PREF-17/ June. as the milk production will increase with the growth in herd size as well as its quality. 2010/4 .000 per animal.7 Farm Revenues Farm revenue will increase with the passage of time.8 Male Calves Male calves will be sold at the farm sooner after birth for Rs 25.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 12.

350.463.367 5.677 1.534 2.868 1.000 2.246.603.185.298.363 12.801. In actuals Year 10 160.162.766.000 13.000 6.000 3.067.427.139 172.681.105 45.758 253.000 4.870 1.700 550.249.280.595 1.736.600 Year 1 3.561.676. etc.672.023.388 Year 3 17.462 212.828 282.716 233.994.875. etc.992 27.698 23.678.000 3.825 46.437 Rs.038.536 23.454 4.409 43.048 33.212 2.939 1.864.510.574.929 750.560.720 5.413 3.840 13.723.929 1.425 20.181.617 2.931 400.163.704 62.237 8.503 94.202.205.356 Year 4 4.242 Year 6 7.831.065.273 27.312 11. janitorial services.252 1.107 177.774 33.277 193.935 16.692 6.464 Year 6 42.846 15.471.262.560.404 91.043.218 66.345.665 7.853 37.187 SMEDA Revenue from sale of milk Other Income Total Cost of sales Cost of goods sold 1 Medicine.043.000 15.464.123.197 32.037.823.200 4.648 23.853.473 87.663 1.539.935 771.032 45.971.091 6.366 22 PREF-17/ June.570.811 858.216.619 1.523 212.179.823 86.033 2.500 Year 2 14.301.083 438.385 27.124 32.090 991.000 120.033 390.643 3.728.927 348.) Depreciation expense Amortization of pre-operating costs Subtotal Operating Income Other income (interest on cash) Earnings Before Interest & Taxes Interest expense on long term debt (Debt facility : Bank 1) Subtotal Earnings Before Tax Taxable earnings for the year Tax NET PROFIT/(LOSS) AFTER TAX 684.530 7.980 620.825.977.426 121.786.429.288 19.051.067.136.069 65.100 9.000 1.813 27.423.291.966.298.665 1.812 346.011 804.837 154.218 16.235 183.434 64.453 5.000 10.100 300.939.454 16.532.000 8.059 628.) Professional fees (legal.698 290.280.922 23.634 70.484.582.400.611.205.157 64.712 61.1 Income Statement Calculations Income Statement Year 1 13.008.405 2.028 Year 7 57.720 2.603.193 12.600 525.785.599 46.990 210.603.000 4.943.182.280.270.218 66.837.543 119.451 1.736 27.930 Year 5 30.947.494 2.261 8.000 5.544 18.329 886.789 133.900.716 5.362.553 6.077 116.211.388 771.258 Year 8 80.409 903.825 11.000 2.065 565.236.659.572 1.499 823.954 29.233.336 27.704.723 74.151.803 8.587 11.710.959 2.904.902 3.371.671 27.804 345.823.562.586. consultants.212 11.838.299 288.904.769.536 94.190 290.365.995.442.480.666 16.320 8.046.640 7.738 40.572 5.232 145.048 4.640 1.789 25.674 1.000 3.300.043.526.758 27.283 1.824.000 2.376 Year 8 12.452 100.046.804.840 448.536 94.676 16.162 51.182.367 1.036.618 2.422 Year 10 23.124 8.902.500 132.252 175.053.462 8.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11 FINANCIAL ANALYSIS 11.401.738.343 1.420 Year 7 9.646 159.056.524 15.207 16.298.971.305 1.295.124 32. audit.893 27.273 15.738 Year 5 5.155 177.873 17.794.825 46.747 27.960 51.470.492 5.611.809.229 12.574.627 Year 4 23.295.508.226 817. 2010/4 .776.532 2.489 257.458.804 49.983 67.101 32.006.532.781 24.436.409 Year 9 113.231 21.680 65.155 44.406. entertainment.132.023.966 71.966 66.236.074.262 2.051 1.532.732.612 1.963 2.101.215 37.498 19.699.900 Year 3 3.166 5.206.700 Year 2 3.155 177.466.639.566 2.152.110.827.668.451 11.635 27.989.732 3.106.831.428.137 3.285.286. Vaccination & Insemination Charges Operating costs 3 (direct electricity & feul charges) Total cost of sales Gross Profit General administration & selling expenses Administration expense Fuel for generator Office expenses (stationary.865.611.785.492 23.208.809.012 72.154.391.889 Year 9 17.206.206 34.

385 4.074.526.099 171.000 1.261.014.000 1.983.000 28.684.000 19.775 1.323.474.798.000.952.000 2.218.699.351.451.869 35.998 935.817.183 8.000 15.442.000.000.689.329.021 12.212 6.054.000 81.218.000 59.000 12.261.267 4.000 2.412.785 15.000.199 39.000 22.710 4.183 6.642.983.634.343 3.346.894 4.000 8.983.003.000 15.966 8.000 3.117 899.287 4.000 24.590.000.000 4.500 13.500 1.014.590.861.000.000.696 15.000 750.865.000 22.921 2.817.500 6.021 24.788 12.000 108.500 108.233.836 270.375 42.788.941.806.416.000.232 145.307.556 65.764.000 18.118.902.858.655 145.323 15.800 24.729 4.042 13.632 4.500 36.562 33.304.000 38.000 216.412.002.409.107.798.000.802.226 27.816.398.025.925 93.000.451.000.930 59.218.500 57.851 4.500 55.667 51.284 13.729 15.000.160.247.000.500 5.000 26.994 4.081 17.724 3.000 55.000 8.921.836.000 30.223.756 15.134 2.191 30.655 171.229.724 0 0 0 0 (0) 0 12.902.021 12.750.586 26.684.046.686 6.169 15.767.346.000 11.000 13.000.656 4.185.510.284 20.775 928.010.935.500 26.869 21.722 878.536.000.000 4.274.410.689.000 74.000 24.229.790 7.883.655 52.536.000 10.030.054.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11.199 54.000 1.347.876 30.474.118.226 52.319 26.346.436.810 11.796.000.290 2.000.000 3.763.928 30.000 54.655.081 162.218.000 1.975.000.982 22.000 80.000 992.212 28.933 1.000 43.822.361.483.068.000.284 216.533.104.928 81.000 4.000 171.556 93.212 3.741.436.000.546.771 15.941 4.854 750.000 35.788 23 PREF-17/ June.979.806.054.229.000 243.273.716.401 15.000 2.521 42.483.000.000 45.000 54.884.640.952 93.2 Balance Sheet Statement Calculations Balance Sheet Year 0 Assets Current assets Cash & Bank Raw material inventory Total Current Assets Fixed assets Land Building/Infrastructure Animals Revaluation Surplus/ (loss) Net value of animals Machinery & equipment Total Fixed Assets Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Other liabilities Long term debt (Debt facility : Bank 1) Total Long Term Liabilities Shareholders' equity Paid-up capital Gain/ (Loss) on revaluation of animals Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Rs.284 135.000 9.118.195 29.000 65.973 120.068.634.173 8.500 24.000 15.000 42.439 50.448.416.933.000 270.658. 2010/4 .995.000.737 74.643 40.218.000 17.921.934 1.536.178 100.928 74.761 2.059 14.223.879 15.711 80.933.757.000 135.798.000 189.000 137.199 100.021 10.464 15.131 55.000 8.678 51.966 10.536.964.817.448.000.590.155 104.042 243.296 137.775 4.208 40. In actuals Year 10 SMEDA 315.955 20.836.000 100.500 23.917 13.715.000 3.546.658.370 1.788 145.000 162.267 15.689 33.474.896 62.487 15.000 27.185 948.153 15.247 9.412.615.802.500 3.000 74.836.101.658.000.059 189.000 6.226 137.274.697.695 1.596.802.000 21.276 1.952 4.182.559 43.000 30.436.613 4.238.

173.091. In actuals Year 10 133.626 12.626 - (23.436.793.626) 70.382.132.743) (2.818.091.937 SMEDA (992.929 253.032.267) 315.775) (992.000 9.154) 24.144) 34.159) 12.274.034.336 27.078 (3.743) (2.680.000 (900.618 1.409 390.099.263.099.635 27.471.021 12.350 (12.263.034.385 27.729.322 6.743 (257.000 (374.000 (1.413 1.021 24.280.710.692) (2.735) 49.173.566.042 (1.128.782) 641.040) (641.813 27.280.539.937 24 PREF-17/ June.040 (1.391.696.444 (913.723.621.566 Year 5 17.329) (6.895 (4.535.251.043.953 (10.218. 2010/4 .499 345.466 Year 8 49.989) 70.833) (1.833) 2.224.279) 5.322 4.279 (1.619 620.342.904.833 (690.267) (23.010.775) 12.953) 14.409 9.034.620 Year 6 24.427.671 27.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11.034.279) (913.971) 913.535.099.916 Year 4 12.128.154.329) 34.263.959.principal repayment Additions to Debt facility : Bank 1 Issuance of shares Purchase of (treasury) shares Cash provided by / (used for) financing activities Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing activities NET CASH Year 1 3.091.000 (2.621.535.201.229.409) 49.229.329 9.043.946 Year 7 34.091.173.660 145.499 4.222) (2.724) 3.000 (619.366 2.055) 1.660 Rs.040) 3.499.343 858.657) 5.173.747 27.251.734.322) (4.300.735) 17.409) (9.893 27.989.443.443.099.202.408.736 27.743) 9.744) (3.772) 4.000 (70.000 (418.300.043.758 27.242 Year 2 5.458.945 (2.828) 8.227 Year 3 8.3 Cash Flow Statement Calculations Cash Flow Statement Year 0 Operating activities Net profit Add: depreciation expense amortization of pre-operating costs Raw material inventory Cash provided by operations Financing activities Debt facility : Bank 1 .902 2.249.218.000 114.532.409 12.350 Year 9 70.626) (12.466 (9.000 (1.953) (3.946 (6.000 (1.181.322) 24.090 438.329 6.488) 2.678 145.469.992 27.186 (641.

Year 2 50 50 40 21 71 111 Year 3 56 56 55 20 76 131 Year 4 68 68 68 27 95 162 Year 5 83 83 85 34 132 217 Year 6 103 103 108 41 164 272 Year 7 129 129 139 51 215 354 Year 8 163 163 179 64 288 466 Year 9 209 209 227 83 368 595 Year 10 271 271 299 107 463 761 0 21 21 0 20 20 0 7 28 34 0 8 34 42 0 9 43 52 0 10 54 64 0 11 70 102 0 12 89 136 0 12 114 175 56 13 149 270 25 PREF-17/ June. Rs.000 25.000 50.4 Selling Assumptions Sales Selling Assumptions Milk/Cow/Day Wet Cows as % Total no.000 100.000 100. % Days Rs. of Days in Year Purchase Price of developed progeny Cow Female calf(cow) older then one year Sale Price/Culled cow Sale Price/Low yeilder cow Sale Price/Male calf Qty 28 100% 305 300. Rs.000 Year 1 Animals Average # of cows # of lactating cows # of calve Calve older than one year (Cows)/Heifer Total animals older then one year Total Animals Animals Sold During the Year # of Cow Progeny sold # of culled cows sold # of Male Calve sold Total Animals Sold 50 50 42 0 50 92 Unit Ltrs. 2010/4 .Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11. Rs. of Cows No.

700 23.236.250 21.800 2.050 1.762 Year 9 5.760 Year 2 1.600 43.380 19.255.324 341 604.660 85.362.480 90.000 500.550 16.000 1.950 525.750 919.000 690.000 3.661.000 843.321.764.838.370 Year 5 2.834 26.170 Revenue from Sale of Milk (Rs.588 1.237.000 1.950 1.442.000 500.750 1.420 35.000 47.534.065.5 Production Assumptions Production of milk (ltrs) Cows Milk for calve Net Annual milk production Year 1 1.000 1.620 56.852 908 1.300 1.737.026 52.104.564 716 1.984.170.772.731.385.835.400 168 375.166 14.000 1.013.750 2.750 818.630 57.530 134.097.194 1.000 1.378.798 Year 10 7.250 Total Annual Revenue 13.750 1.670 173.950.216.120 13.048.876 Year 6 2.250 3.452.370 106.200 26 PREF-17/ June.151.454.750 1.950 69.946 32.821.190 17.750 2. 2010/4 .612 556 931.000 15.790 68.852.884 432 747.209.018 Year 4 1.400 160 378.982 Year 7 3.200 Year 3 1.) Sale of Developed Progeny Sale of Culled Cows Sale of Low Yielder Cow Sale of Calves 43.179.800.000 688.738.173.904 270 498.676.541.412 21.700 2.750 4.507.000 525.618.280 44.400 13.694 41.660 28.930 223.108.958 Year 8 4.154.348.) Daily Annual Other Revenue (Rs.568 220 411.600 13.081.Pre-Feasibility Study Environmental controlled Dairy Farm (50 Cows) 11.

T Loan will be taken) Interest rate Short Term Total No of Employees Loan Repayment Period (yrs) Payments in a year Cows Mortality Calf Mortality Starting Herd Size Target Herd Size Milk sale price (Rs) Purchase Price of Cow (Rs) Price of Low yield Cow (Rs) Milk yield of Cow per day (litre) Sale Price of 6 month old calf (Rs) Sales Price growth rate CGS growth rate Lactation Period (no.000 1. 2010/4 .000 27 PREF-17/ June.Pre-Feasibility Study Dairy Farm (50 Cows) 12 KEY ASSUMPTIONS Equity Debt (In case of loss S.000 100.000 100. per month) 50% 50% 16% 5 5 12 1% 5% 50 250 35 300. of milking days per year) Artificial insemination charges per cow per year (Rs) Vaccination & medication charges per cow per year (Rs) Electricity Cost & Diesel charges for generator (Rs.000 28 25.000 10% 5% 305 5.

Pustules on lips. 13 months Foot and mouth Disease FMD Serum. Medication Antibiotic therapy 101. Preventive measures Vaccination in February. FMD vaccine after every 4 months especially before the onset of rainy season. 28 PREF-17/ June. 2010/4 . animal may die due to suffocation Avoid grazing early in morning especially on fodder with dewdrops.5 degree C) 60-70 beats/minute 30 breaths/minute Cattle 15-18 months 17 hrs 21 days 305+_5 days 2-3 months 2-3 months 2 to 2. severe pain in stomach Difficult breathing due to air trapped in stomach. Bloating (air trapped in stomach) Mustard (Sarson) oil & turpentine oil mixed with chloral hydrate mixed in drinking water. cleaning of pustules by potassium permanganate solution. watering from mouth. staggering gait weakness due to inability of ingestion.1 Table 13-1:Vital Statistics of Cattles Parameters Rectal Temperature Heart Rate Respiratory Rate Table 13-2:Traits of Farm Animals Parameters Age at puberty Estrous duration Estrous cycle length Gestation length Dry period Service period Age at first calving Calving interval Table 13-3:Common Diseases of Livestock Infectious Diseases Disease Anthrax Symptoms Fever. release of blackish blood from natural openings. stiffening of rumen. bloating. cleaning of hooves by phenyl solution 5 grams Stomach powder (mixed in feed or dissolved in water) twice a day Non Contagious Diseases Indigestion Loss of appetite. Dead animal should be buried in 6 feet deep pit without any postmortem.5 degrees F (38. which doesn’t clot. Excessive salivation.5 yr. grinding of teeth.Pre-Feasibility Study Dairy Farm (50 Cows) 13 ANNEXURES Annexure . tongue and between the cleft of hooves.

sometimes holes in skin. magnesium carbonate and bismuth carbonate dissolved in water OR entox tablets OR nimkol with sulfademadine (4-5 cc).5 ml March-April or monsoon season One year Rabies (Bowla Pun) Anti rabies vaccine 10 ml According to need One year Hemorrhagic Septicemia (HS) HS vaccine 5-10 ml Start of Spring 4 months 29 PREF-17/ June. Every year vaccination should be done every year. diarrhea. swelling on joints Weakness. Avoid wheat straw or stiff feed during dysentery Calcium carbonate. smelling feces. jaundice in severe cases. weakness Avoid excessive intake of milk especially in newborn kids.15 % solution of negavan. Should be given 4 months prior to the expected symptoms of disease. off feed. hair fall from body coat No grazing around stagnant water Round Worms Fecal samples should be examined for roundworms. loss of hair from body coat Cleanliness in sheds. 2010/4 . Spray of DDT in shed Apply sulfur oil. tetmasol or ecoflax on wounds and dipping of whole herd with a 0.Pre-Feasibility Study Dairy Farm (50 Cows) Dysentery Diarrhea. Ectoparasites Flies/ ticks/ maggots Irritation on body coat. anemia. Table 13-4: Vaccination Schedule Name of Vaccine Foot & Mouth Vaccine Qty administe red (ml) 5 ml Time for Vaccination Start of spring Duration of Immunity 4 months Preventive Measures Should be given 4 months prior to the expected symptoms of disease. oral administration Internal Parasites Liver flukes Weakness. Offer rice groule to affected animals Zanil or Carbon tetra chloride OR nilzan plus. Name of Disease Foot & Mouth Disease (FMD) Anthrax Anthrax spore vaccine 0. Vaccine should be used right after preparation. oral administration Systamax or rental.

2010/4 . Date of last calving No.... no 1. of animals Milk prod. Morning Evening Daily Milk Production No......... Disposal of Death No... animal. History sheet-------------------Sr...... Calving Register Sire No. b.. ingredients.Date of 1st heat.... etc.. no 1.... no Particulars 1. no Date of birth Dam No... no 1.Pre-Feasibility Study Dairy Farm (50 Cows) Annexure . Date of birth Sex Mode Cost Remarks Animal/Dam Table 13-7: Reproduction/Insemination/Pregnancy Diagnosis / Follow up / Treatment Sr...Date of birth... of services Last date of service Sire No.2 Table 13-5: Sr..... Sex of calf Wt. 2........ Dam No... medicines................ Milk sold Income from sale Day's wet average Herd average Rema rks Table 13-9: Details of Purchase / Sale of product/byproduct (Feed and fodder's. 2.) 1st calving 2nd calving 3rd calving 4th calving 5th calving 30 PREF-17/ June. Particulars Quantity Per unit rate Total cost Remarks Table 13-10: Calving & Calf Disposal Sr... Animal No. Result Rema rks Table 13-8: Sr..) Sr.. 2.... Date of calving Sex of calf Wt...Dam No. 2.. of calf Remarks Table 13-6: Sr.. Sire No... no a... no 1. Service (Date/Sire No.... of calf at birth Disposal Date Remarks Table 13-11: Reproduction Performa Brand No.

at months Wt. at weeks 0. Date of calving Weekly recording Morning Evening Date when dried Days in milk Total milk yield Table 13-15: Herd Health Register Date Animal History Symptoms Diagnosis Treatment Detail of vaccination or hygiene Cost of treatment Table 13-16: Monthly Expenses & Income Report Sr.9. (Dam's) (Animal) Date of birth Wt. at 3. 2010/4 .12 Wt.1.Pre-Feasibility Study Dairy Farm (50 Cows) Table 13-12: Conception Record Date of Pregnancy Diagnosis------------------Result------------------Date of conception--------------------Excepted date of calving------------------Actual date of calving------------------Sex of calf-----------------Table 13-13: Reproductive Health Disorder-------------------Treatment------------------Follow-up------------------Table 13-14: Individual Milking Record Sr. no Particulars Quantity Rate (per unit) Total cost Table 13-17: Periodical Weighing Register Sr.24 Service/ Calving Remarks 31 PREF-17/ June.18. Brand No. no Order of Cow calving No.6.12.2…11. no Tattoo No.

Lahore. 169-A/1. 2010/4 .Upper mall Lahore.37573045 Scmen Suppliers Altaf & Co. Phone: +92-42-36112476 National Feeds Ltd. UC-3.Pre-Feasibility Study Dairy Farm (50 Cows) ANNEXURE . Phone:042-37576954 Fax:042-37585014 Ghazi Brothers B-35 KDA Scheme no 1. Karachi. Lahore. Karachi. Shadman Market. Phone:042-35884627-8 Agri Fred. Phone:042-35710070-77 Dairy Master DEC Sikka Street 8km Raiwind Road. 12 Ross Residencia 1. Phone:042-37225666 32 PREF-17/ June. Gulberg III. Lower Mall. Phone: +92-21-5081923-27 Machinery Suppliers Delaval 316. Phone:042-353231667 WestFalia Suite 623. Phone: 021-35201962 Wellard Group (Pro Farm Pakistan) 69/7 Green Villas-FCC. Lahore. 171 Shadman – II Lahore. Phone: +92-42 37551405-8 Fax: +92-42. Al Hafeez Shopping Mall. Cattle colony. Syed Maratab Ali Road. Lahore Phone:042-35763411-4 Fax:042-35764412 Snam Pharma 8/50 Awan Plaza. Phone: 042-35777846-7 Fax: 042-35777811 Doctor’s Dairy Feeds 203/7. Bin Qasim. Phone: +92-21-4543579 Fax: +92-21-4543763 Animal Suppliers Elders Internationals 139-2 Khayaban Ameer Khusro Phase6DHA. USA 210 Rewaz Garden. Gulberg IV. Lahore. Lahore.3 Table 13-18: Suppliers List Feed Suppliers Organon Feeds Office No. Lahore. Mian Muhammad Shah Road. Karachi. Campus Road. Gulberg III.

repeat as needed Pre-breeding Pre-calving Adult Cows IBR. BRSV of age • Haemophilus • Clostridial group • Leptospirosis (5 strain) • Worm • Grub and lice treatment in early fall. Coronavirus. Campus Road Canal Bank. PI-3. Karachi.12 Ross Residencia 1. Tariq Office No. Phone:042-37225666 Table 13-19: Animal Description Heifers Vaccination program for dairy herds. BVD. Time for Vaccination Detail Vaccination Three to four Clostridial group vaccine at three to four months of age months of age. although modified Live virus vaccines are not used at this time • 33 PREF-17/ June. BVD. at six and three weeks prior to calving Cows are generally vaccinated for leptospirosis and the virus diseases during the early lactation period. Khalid D-35. Lahore. or earlier depending on risk Five to six months • IBR. BRSV • Leptospirosis (5 strain) • Rotavirus. coli twice. Lahore. approximately five weeks prior to breeding. E. Phone:021-4553579 Dr.1 Miran Muhammad Shah Road. KDA Scheme No. Some veterinarians prefer to vaccinate during the dry period.Pre-Feasibility Study Dairy Farm (50 Cows) Consultants Dr. Phone:042-36112476 Dr. Lower Mall. Rehan (Agrimasters) 210 Rewaaz Garden. 2010/4 . PI-3.

2010/4 .Pre-Feasibility Study Dairy Farm (50 Cows) ANNEXURE .4 Different Breeds of Cows Holstein Jersey 34 PREF-17/ June.

Pre-Feasibility Study Dairy Farm (50 Cows) ANNEXURE . 2010/4 .5 Pictures of the Environmental controlled Dairy farm Model Model Farm outside layout 35 PREF-17/ June.

2010/4 .Pre-Feasibility Study Dairy Farm (50 Cows) Model Farm inside layout 36 PREF-17/ June.

Pre-Feasibility Study Dairy Farm (50 Cows) Heavy Duty Ventilation Fans Calf Cages 37 PREF-17/ June. 2010/4 .

have come to resemble one another and pass those traits uniformly to their offspring. Feedstuffs Any substance of nutritive and biological value used in production of compound feed.6 USEFUL TERMINOLOGIES Breed Animals that. Home Mixed Feed Feed prepared on farm. Oil seed Cake Mass resulting from the processing of seeds. It includes a concentrate mixture accordingly to formula. e. The process may be done by mechanical or chemical means. maize oil cake etc.Pre-Feasibility Study Dairy Farm (50 Cows) ANNEXURE . 2010/4 . Heifer The term refers to young female bovine that reaches puberty age and is ready to breed.g. Ration Amount of balance feed in 24 hours 38 PREF-17/ June. through selection and breeding. Dehorning The process of removal of horns (in adult animal) or horn buds (in young calves). Compound feed Any ground mixture of ingredients intended for feeding the animals. which is rich in protein and is used as a source of feed for livestock. cottonseed cake.

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