Expression of Interest - EOI

Category-Partnership Window Cost-Sharing Grants

CLOSING DATE

30 JUNE 2012

1700 hours

















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TABLE OF CONTENTS

1. GENERAL INFORMATION 3
2. EXECUTIVE SUMMARY 4
3. PROJECT DESCRIPTION 5
4. PROJECT BACKGROUND & FOCUS 6
5. PROJECT GOAL AND RELEVANCE TO ASF/ UAP OBJECTIVES 7
6. MEASURABLE PROJECT OBJECTIVES / MILESTONES AND KEY ACTIVITIES 8
7. PROJECT IMPLEMENTATION & SUSTAINABILITY METHODOLOGY 9
8. POTENTIAL PROJECT BENEFICIARIES 10
9. TENTATIVE BUDGET 11
MANAGEMENT ERROR! BOOKMARK NOT DEFINED.
THREE YEAR DATA AT A GLANCE ERROR! BOOKMARK NOT DEFINED.





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1. GENERAL INFORMATION


a. Name of the applicant: Exon Dairy Farm
b. Type of Entity Partnership Firm:
c. Name of head of the
organization
Jawad H. Shirazi
d. Postal address: House # 2o, Street # 6, Lane V,
Cavalry Ext.
Lahore.
e. Office phone numbers - landline: 042-36675631
f. Fax:
g. Email: abbas203@hotmail.com
jawadshirazi@gmail.com
h. Website: N/A
i. Key contact person Jawad H. Shirazi
j. Cell number of the key contact
person
0300-8446659





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2. EXECUTIVE SUMMARY

Please provide concise summary of the proposed project in not more than one page

EXON Dairy is located in District Sahiwal just around 10 kilometers away from the
main city. The project started in 2009 and its current herd size comprises of 100 cross
breed animals all locally procured with 50% productive heads. From the inception it
sells all the milk produced to the Nestle Pakistan Ltd. The project has gone through a
learning curve of three eventful years of dairy farming experience and the first breed
of heifers is now calving on the farm.

Total envisaged cost needed for the addition of machinery/ equipments is US $ 50,000
and 50% share ie US $ 25,000 is sought as grant to achieve the objective. We expect a
considerable improvement in efficiency by incurring the following mini project costs.


Serial # Detail of Project Costs Efficiency Impact

1

Bio Gas Plant
In the current state of affairs 12-16 hours load
shedding is a big issue. Bio Gas plant of 8-10
kVA will improve energy efficiency and reduce
energy bill

2

Tractor
Need to add 375 model. Will help in cultivation
and silage pressing. Currently we have to rent
375 tractor when needed
3 Silage Making Machine Currently renting from NPL, renting cost is high
and timely availability is always an issue
4 Wanda Machine 500 Kg capacity commercial production and
sale to other farmers
5 IP based CCTV Camera with
UPS
Remote monitoring will help improve
management
6 Plough & Rotavator Needed for land preparation
7 Solar Light with pole Will help /improve night operations. (12-16 hours
load shedding)
8 Dumper Trolley Will help in saving labor costs
9 Computer & Recording
Software
A standard recording system will help a lot in
data analysis and decision support system














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3. PROJECT DESCRIPTION

a) Project Title: Exon Dairy
b) Duration (months): 3 Years 2 months (years in operation)
c) Project Location: Sahiwal
d) Sector: Dairy
e) Profile & Prior Experience of the project team:
Mr. Abbas Sajjad (Partner)

Mr. Abbas Sajjad inherited the agriculture related experience from the agro related
background and has been experiencing progressing farming techniques on an
inherited land situated in Sahiwal. At the start of his career he worked for Punjab
Local Government Department as Assistant Engineer for two years. He also had
experience of managing medium sized construction related projects privately. By
qualification, he is a bachelor in the discipline of civil engineering from University of
Engineering & Technology Lahore and an MBA from Lahore University of
Management Sciences. He has been associated with Atlas Group since 1993 and
served in various capacities in Atlas Investment Bank Atlas Honda Limited Atlas
Capital Markets and Atlas Asset Management and acquired deep insight in the
areas of equity & money market brokerage, mutual funds industry, investment
banking, treasury and portfolio Management, product development and risk
management.

Mr. Jawad H. Shirazi (Partner)

Mr. Jawad H. Shirazi besides having practical experience of progressive agriculture
farming specially horticulture, ventured into diverse fields such as commercial dairy
farming, temperature controlled poultry farming and plastic industry through
manufacturing of packaging solutions to the food industry. He is a young,
enthusiastic entrepreneur with full of innovative ideas and has been able to set up
and grow his small business ventures to a sizeable scale in a short span of time. He is
a bachelor in economics from the University of Punjab and has extensively traveled
abroad to gain multicultural experience. He has an exposure of zero grazing farming
methods in Netherland with the help of PUM Netherland.

Mr. Nadeem Ahmad Gillani (CEO)

Mr. Nadeem Ahmad Gillani has more than 15 years of experience of running diverse
business interests such as distribution of FMCG products, wooden and laminate
flooring solutions and readymade garments industry. He had been responsible as the
project in charge for setting up the entire dairy project from erection of the structure



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to make it fully productive and operational. He is also responsible for the day to day
operations of the dairy farm, liaison with the consultants and ensuring the use of best
practices.

Mr. Abid Ali (Farm Manager)

Mr. Abid Ali is the farm manager. His online graduation is in progress from Allama
Iqbal Open University. He has got training of A.I from VTI Institute Sheikupura and
DVAM from Al Noor Institute Faisalabad. Has got experience of working in Milk
Supplier & MT from Nestle Pakistan from 2003 to 2010. He has got diploma In
Information Technology from GDC Pattoki and versed with computer skills like M/S
excel, word and Power point.

Mr. Mudassar Farid Chishti (Veterinarian)

Mr. Mudassar Farid Chishti has more than 10 years of hands on experience in
Veterinary Field Works and Artificial Insemination. He is qualified from University of
Veterinary & Animal Sciences, Lahore and has also been associated with Pakistan
Rural Support Program in Multan for a community development program. He is
responsible for the animal health, timely vaccinations and inseminations to help
breed optimal output pedigrees.

4. PROJECT BACKGROUND & FOCUS

Briefly describe, in not more than one page, the situation/circumstances which have led to the
need to develop the proposed project and how it will add value.

Exon Farm was constructed by consulting Pakistan Dairy Development Company
(PDDC) with the objective and vision to establish a model dairy farm in the area. As
PDDC limited its operations in last two years due to budgetary constraints we sought
help from PUMS Netherland experts for help and guidance for learning the trait and
were associated with an expert who paid a two week visit in early 2011.
Subsequently one of the sponsors from Exon Dairy also visited Netherland to have an
exposure of modern dairy farming practices in vogue. The project costs covered in
this EOI were strongly recommended by PUM Experts and management also feels
that this would greatly help the project operation for longer term sustainability goals.






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5. PROJECT GOAL AND RELEVANCE TO
ASF/ UAP OBJECTIVES

Describe, in not more than half a page, the overall goal of the project and how it is in
accordance with ASF objectives. Also briefly explain what will be the short and long-term
impacts of the project on agri economy?

Overall Goals of the Project:

1. To strengthen the capacity of smallholders by sharing best practices and
providing assistance to smallholders operate autonomously and efficiently.

2. To create employment in the farming sector and to create awareness and
promote standard practices of dairy farming through a profitable commercial
venture, and thus contribute the national economy.

3. To run Exon Dairy as a model hi-tech dairy farm to promote dairy farming
among the farmers of adjoining area and to create awareness of use of latest
dairy management practices such as mechanized milking, Silage Fodders,
artificial inseminations techniques, computerized record maintenance, Bio Gas,
Solar energy purpose built housing for cow comfort etc.

Alignment with ASF Objectives:

Bio Gas

Installation of a 8-10 KVA Bio Gas Plant will help address the energy needs of the farm
and also benefit the workers of the farms residing in their dwelling next to the farm.
Energy shortfall in the country is causing a load shedding of 12 to 16 hours a day and
severely damaging the farm efficiency. The current appliances on farm requiring
uninterrupted electricity are light bulbs, cooling fans, computer, refrigerator, water
pump, chilling unit, milking machine, fodder cutter and tube well. Running all these on
diesel generation is not cost effective and having a Bio Gas Set up will not only ensure
availability of electricity but also a reduction of energy bill by 25 to 30 %.

An additional side benefit is that the waste, following the burning of the methane it
releases, can be used as fertilizer for agricultural crops. By converting existing tube
well operation from WAPDA to Bio Gas consistent supply of irrigation water will be
ensured for the farm land and besides surrounding farmers will also benefit greatly
facing water shortage due to load shedding.

Excess Biogas will be provided to farm workers who are living in the vicinity. Biogas,
being a clean source of domestic energy is socially acceptable to the communities
as it will replace the dirty and socially non-acceptable sources of domestic energy
like cow dung cakes, fuel-wood that emits smokes and cause indoor pollution; the
root cause of tuberculoses.



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Women folk have to rely on wood or cow dung cakes for the household fuel needs
not only involving manual labor but also are exposed to health and hygiene
problems. Provision of biogas right inside their kitchen will greatly solve their problems
and relieve them from such agonies. Thus women folk can concentrate on other
household activities and their health and indoor environment will greatly improve.

Commercial Production and sale of Concentrate (Wanda)

Within the surrounding radius of 25-30 kms of Exon Dairy farm, there are
approximately 50 60 small dairy farmer set ups with the herd size ranging from 5 -50.
and sell milk to Gawalas or processing companies like Nestle Pakistan, Engro Foods
etc.
The key objective of setting up Wanda Making Facility is to provide quality wanda to
the smallholders at affordable cost.

Short and long-term impacts of the project on agri economy:

In the shorter term the project efficiency will be improved giving more room for
expansion. The workers on the farm will benefit from bio gas installation. The
surrounding farmers will benefit from the availability of excess water by the Exon Farms
Tube well operating on bio source during load shedding hours.

In the longer term Exon Dairys management vision is to establish a dairy training centre
offering short term on farm trainings to teach best dairy farming practices for the small
to medium sized farm. The sponsors hail from the eldest lineage of shirazi family clan
and feel obligated to undertake projects for the social benefits of the people of their
ancestral village comprising of 4,000 plus people. A land area has already been
earmarked for this centre. (Future vision)

6. MEASURABLE PROJECT OBJECTIVES /
MILESTONES AND KEY ACTIVITIES

Please briefly mention all project objectives with key activities to achieve these objectives.


All the Project deliverables will be implemented within 3 months from the date of
approval of the project.









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7. PROJECT IMPLEMENTATION &
SUSTAINABILITY METHODOLOGY


Provide, in not more than one & half page, a well-articulated implementation methodology
with special focus on community involvement in the design and implementation of proposed
project, mechanism for procurement of goods & services, conflict resolution, systematic flow
of activities, data management and monitoring etc.). Also provide information on projects
self sustainability after support from external sources cease to exist.


The project is already operational for the last 3 years and the management has the
capability to implement the deliverables in a professional way. The implementation
methodology will be divided in the following work stages.

Work Stage Procurement
Quotations from different sources for the required equipments will be obtained and selection
of the equipment will be done based on the requirements commensurate with the Exon
farms scale of operation. This may take 2-3 weeks.

Work Stage Installation
This time frame would be required for the items requiring the installation period such as Bio
Gas setup, installation of solar light with pole and installation of a computer software
program for record keeping. This stage will take 3-4 weeks.

Work stage Implementation
This stage would include systemic implementation of management processes to make most
of the project costs.

The project is already sustainable, however with a low ROI. By incurring the above costs its
efficiencies will improve substantially and a room for fast track expansion will be created. The
projects profitability improvement will help make a case for securing commercial loaning by
retaining its viability.


















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8. POTENTIAL PROJECT BENEFICIARIES

Please provide details, in not more than half a page, on potential beneficiaries (number of
people benefiting, gender balance, new jobs creation, increase in household income,
improvement in skills of existing workers, etc.)

Following persons are directly involved with the project.

1 Mr. Abbas Sajjad Project Sponsor
2 Mr. Jawad H. Shirazi Project Sponsor
3 Mr. Nadeem Gillani Incharge Over all operations
4 Mr. Abid Hussain Farm Manager
5 Mr. Muddasar Chishti Vet nary Doctor
6 Mr. Pehalwan Sipra In charge land cultivation
7 Mr. Yousaf Worker
8 Mr. Usman Baba Watchman
9 Mr. Saeed Wattoo Worker
10 Mr. Zahoor Sipra Tractor Driver
11 Mr. Allah ditta Sipra Worker
12 Mr. Allah Wadhaya Worker
13 Mr. Allah Bakh Worker
14 Mr. Habib Worker
15 Mr. Shahbaz Pehalwan Worker
16 Mr. Sajid Ali Worker

1. Farmers in the vicinity will be benefitted by buying Wanda from the Exon set up of
commercial production of Wanda.

2. In Future the training centre will be set up from which the local farmers will benefit out
of the trainings.

3. The Bio gas sourced tube well will be able to irrigate surrounding farmers lands.

4. The workers households adjacent to the farm will benefit from the bio gas for their
cooking needs.

5. The silage making machine will be rented to the surrounding dairy farmers.




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9. TENTATIVE BUDGET

Please attach a brief breakdown of the cost or tentative budget in Pak rupees (PKR). This is
an essential part of the EOI. The tentative budget can be presented on the following format:


Detail of Project Costs Rs.
(M)
Efficiency Impact

Bio Gas Plant

1.00
In the current state of affairs 12-16 hours load
shedding is a big issue. Bio Gas plant of 8-10
kVA will improve energy efficiency and
reduce energy bill
Tractor
1.40
Need to add 375 model. Will help in
cultivation and silage pressing. Currently we
have to rent 375 tractor when needed
Silage Making Machine
0.60
Currently renting from NPL, renting cost is high
and timely availability is always an issue
Wanda Machine
0.60
500 Kg capacity commercial production and
sale to other farmers
IP based CCTV Camera with UPS
0.20
Remote monitoring will help improve
management
Plough & Rotavator
0.20
Needed for land preparation
Solar Light with pole
0.25
Will help /improve night operations. (12-16
hours load shedding)
Dumper Trolley
0.25
Will help in saving labor costs
Computer & Recording Software
0.30
A standard recording system will help a lot in
data analysis and decision support system
Total
4.80




Project Cost in $ 50,000 $

PKR/US$ PKR 96/1US$

We understand that available funding share under subject grant category is 15,000 $,
yet we would appreciate that if our case is considered for 25,000 $ grant as envisaged
in total project costs described above.

In case we are limited to a smaller amount, we will need to prioritize the above project
costs for optimum results.




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EXON DAIRY PROFILE

In the first year fifty cows were procured with the help of Rachna Live Stock and
Dairy Development Services (RLDS). Later when our team had the experience of
animal selection we started procuring animals ourselves. After culling, buying of new
animals and on farm additions the herd size has grown to 100 animals currently.

Exon Dairy has a farm land of 80 acres all located in close vicinity of Qutubshahana
road, chak Bahadarshah 58 GD, Tehsil & District Sahiwal. Out of this land 35 acres is
exclusively dedicated to the dairy farms fodder needs. As the farm will grow the
plan is to convert all the available land for growing fodders for dairy farming.

Infrastructure:

Shed Areas: The total area encompassed by the boundary is 30,000 sq ft while the
covered shed areas for the main shed and calf shed are 7,500 sq. ft. The main shed
is constructed by a pre cast roofing system with a 12 ft wide central feeding alley
and on each side there is a 15 ft wide covered sheds with brick and C.C flooring.
The length of main roof covered shed is 150 ft. On both sides there are rest areas
which are regularly maintained with sandy soil.
Milking Parlor:
A four station milking parlor is made on one end of the shed and a four cluster
milking machine with bucket system sourced by De Laval is used for milking.
Silage Bunkers: Two silage bunkers each of (LXWXH=90X30X6) ft size with cc floor and
brick walls
This helps In consistent supply of feed throughout the changing weathers in addition
to the green fodders cultivated on the farm land.

Calf Shed: A calf shed of size (25X25 ft) with thatched roofs on column pipes with
paved brick floor.

Managers Office: A small office of size(9X 12 ft) for the farm manager

Cooling Tank/Chiller Room: A tiled room for chiller of 500 L capacity

Generator Room: A small room adjacent to chiller room for 12 KVA generator

Store: A store for stocking Wanda/ concentrates and other materials

Shed for Fodder Cutter : A shed where fodder cutter is installed for labor

Existing Farm Machinery/ Equipment:

1. Tractor ( Make Millat: 240 Model)
2. Trolley
3. Tube-well



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4. Generators (Two numbers ( 12 KVA & 15 KVA) (one Generator by NPL)
5. Cattle Crush
6. Nitrogen Gas Cylinder for semen doses
7. UPS
8. Desktop Computer
9. Fodder cutter
10. Bicycle

Current Stock of Herd:
Description Age/Milking Stage No. of Animals
Milking Cows (Non Pregnant) Freshly calved 3
Milking Cows (Non Pregnant) Calved Upto 3-months 21
Milking Cows (Non Pregnant) 3-6 m pregnant 12
Dry Pregnant Cows 8 + m pregnant 5
Dry Non Pregnant Cows 4
Female Calves Under 2- months 1
Female Calves 2-6 months Nil
Female Calves 6-12 months 12
Heifers calved on farm Above one year 16
Pregnant Heifers calved on farm 1.25-2 Year 10
Milking Heifers calved on farm 1.25-2 Year 5

Male Heifer 8 months 1
Male Heifer 3-6 months 2
Male Heifer 1-3 months 3














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l
FARM PICTURES





















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