Final Cows Dairy Farm Project

Establishment of Environmental Controlled Dairy farm
Balochistan university of information

technology, engineering & management sciences
Quetta
Research report on:
Research conducted By:

Sidra sehar, Kiran Manzoor, Sidra Nisar
Research Assigned By:
Sir Aymen Sajjad

Study Program:
BS (BA) &TH A
Date of submission:
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February 8th, 2010
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All Praise is for the lord

of all the worlds the most
Benevolent the ever
Merciful and kind to us “
Our Profound thanks to

subject Teacher Sir.Aymen
who assigned ou this
project.
3
Last but not least we are

also thankful to my parents.
4
5
TABLE OF CONTENTS
S# TOPICS PAGE #
01 INTRODUCTION
Dairy Sector in Balochistan 03
Role of Livestock and Dairy Development 03
1.1 Commercial Dairy Farmers 04
02 PROJECT LIFE CYCLE 04

2.1 Project Definition Stage: 06
2.1.1 Name of the project 06
21.2. Location 06
2.1.3. Authorities responsible for 06
2.1.4 SWOT Analysis of the Project 06
2.1.5 Project cost:
2.2 MARKET ANALYSIS
2.2.1 Marketing Channels
2.2.2 Producers
2.2.3 Village Dealers
2.2.4 Wholesalers and Commission Agents
2.2.5 Butchers
2.2.6 Consumers
2.2.7 Wholesale Market Locations
2.3 Defining The Project Scope:(1st step)
2.3.1-Project objectives and its relationship with sector objectives
2.3.1.1 Location
2.3.1.2 Capital cost Estimates
2.3.2 Deliverables
2.3.3 Milestones:
6
2.3.4-Technical Requirements
2.3.5 Limits and Exclusions
03 3.2 Establishing Project Priorities (Step 2)
3.3 Work Breakdown Structure (Step 3)
3.4 Coding Dairy farm (Step 4)
04 4-Project costs:
4.1 Project Financing
4.2 Project Details
4.2.3 Infrastructure
4.2.4 Space Required Per Animal
4.2.5 Equipment required with cost
4.3 Manpower Requirement
Net cash flow of the farm
05 Project Networking:
Time estimation for a activity duration
Determination of the critical path
Activity floats
06 Risk break down structure
07
08
09
7
8
EXECUTIVE SUMMARY OF PROJECT
We Establish an Environmental Controlled Dairy farm of 300 Holstein Friesian

cows in Quetta
The proposed project objectives mentioned below is directly related to the objectives
of sector as the department/ sector. This will help a long way in poverty
alleviation/reduction.
The main OBJECTIVE of the project are:-
o A new Trend to the Dairy industry in the area
o More Production at low labor cost
o Provision pure cow milk in the area.
o Poverty alleviation
o Job opportunities
The concept of our project is Controlled Dairy Farm with a population of 300 cows
will established in an environmental controlled shed Hot and humid weather
conditions coupled with manual and poor management practices increases the
mortality, depress their production and makes severe shortages of milk. The 300
pure bred Holstein Friesian Cow will be produced from abroad and will be housed in
an environment controlled sheds. To overcome this critical situation, which
counteracts the adverse effects of heat stress providing excellent ventilation and
enhancing the wind chill effect? These houses when equipped with highly
mechanized system.
About 4 to 5 acres of land will be purchased for building a dairy farm project of
animal starting from 300 animals. Majority of this land would be used for building
and environmental controlled sheds for the animals to protect them from severity of
the weather. The area for fodder production can be acquired on lease, how ever in
this pre-feasibility it is assumed that the fodder will be purchased and stored when it
9
is available in abundance at low price. The following and system is required for
environmental controlled Dairy Farms.
 Recirculation Fans – horizontal HSLV or ceiling mounted HVLS
 Curtain System –one piece and split in various configurations
 Side Wall Panel Systems
 Ventilation Chimneys or Ridge Exhaust
 Total System Computer Controllers
 Mist or Drip Cooling Systems or Evaporative pads
 Fans Inlet Systems
Project Components are
 Land Required at outskirt of Quetta
 Construction of Farm Building.
 Procurement of Machinery and Equipment
 Man Power.
Project Capital cost Estimates is

 Duration 3 years
 Local cost: Rs.247.32 Million
 Foreign exchange costs: ------
Total= Rs.247.32million
There is a networking diagram Project network is a logical diagram developed on

the basis of information presented in the network table that shows the activities
and their description, logical sequence and the interdependencies of activities.
The list of risks from any project is a source of valuable learning data for future
projects and is a useful data source for deriving checklists Therefore RBS
(Technical, external, organizational & project management) of project included in
the project. After that we monitor our project and evaluate it. Because
monitoring is necessary to check on how project activities are progressing.It also
involves giving feedback about the progress of the project to the donors,
implementors and beneficiaries of the project. This enables to be used in making
10
decisions for improving project performance.Our monitoring strategy involves

Objectives, outcomes, problems & conclusion associated with project.
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Establishment of Environmental Controlled Dairy farm of 300 Holstein

Friesian cows Quetta
INTRODUCTION
Balochistan is the largest province of Pakistan; which makes about 44% of the total
geographical area of the country. However, only 4.9% of the national population
lives there. Most of the area is rangelands with only 5% arable. The livestock sector
is very important with the province housing about 20% of the national stock.
However, with the little manufacturing and under developed
infrastructure, the province economy lags far behind than other part of the country
(FAa, 2002). The nature has blessed this province with the diversity of animal
genetic resource and moderate rangelands. The livelihood of about 80% of the
inhabitants of the province relies directly or indirectly upon the activities related to
this commodity (Wagenaar et ai, 1997).
The total milk produced, cannot fulfill the milk requirement of the people of the
province. The demand will be even greater than the population growth rate and rapid
urbanization (Kakar et ai, 2004). This gap between the demand and the supply can
only be filled by the improved productivity (Afzal, 2003). A huge amount of milk is
being produced in the far flung areas, which hardly reach to the consumers on as
such basis, and the milk quality is being deteriorated. A reasonable amount of the
milk is being converted in other products like ghee etc. A better collection system is
must, and should be the top priority, so that the milk can be bring in the main
streams of food chain which is otherwise not being utilize properly (Raziq, 2006).
The production per milch animal is less due to the poor feed quantity and quality,
lack of breeding and managemental skills, poor veterinary cover and lack of
government interest.
We have to fulfill the feed demand of our animal and to inform and educate the
farmers for the exploitation of the actual worth of the animal. The other area, which
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needs special attention of the policy makers, is to improve and extend veterinary
services to village level effectively. Again, due to scattered livestock herders in the
villages, they should be organized in specific areas on community participation
approach basis. We must consider the untapped animals like camel and goat in the
province. Both type of the animals are good milk producers but yet untouched for
this purpose. In the remote areas of Balochistan the camel, goat and sheep milk
forms the major part of the total milk produced. Dromedary camel in the province is
one of the best milk producing camel of the world, with an average milk yield of
4179 liters per year. Average length of the lactation varies from 270-540 days. As
much as 22 liters of milk were daily obtained from a few camels. Camel has the
ability to produce milk under extremely harsh desert environments. While under
normal pastoral conditions when water is plentiful, a good camel milkier can yield
20-40 liters of milk per day. By exploiting camel milk we can minimize milk
shortage during hot summer season when the cattle and buffalo go under stress
because of extreme hot waves and shortage of fodder.
Dairy Sector in Balochistan
The province of Balochistan possesses approximatel 2.3 million heads of cattle and
about 300,000 buffaloes (Table 1). The Red Sindi cattle found in the adjoining area
of Sind province is an ideal dairy animal locally, but it has not been propagated in
other parts of the province due to aridity other problems. Other two breeds of cattle
namely Bhag Nari and Lohani are draught purpose and low milk yielder. Besides
non descript cattle, there are now more than 5000 heads of purebred exotic European
dairy type animals and about 150,000 crossbreds, the result of natural breeding or
artificial insemination of indigenous non descript cows with these European breeds
(Ahmed, 2003). Except some areas sheep and goats milk too is not available for
market except meeting the domestic demand of livestock farmers especially due to
nomadic Peri-urban commercial milk production has developed rapidly in recent
years in response to growing urban milk demand in the province in general,
especially in Quetta. There are more than 500 commercial periurban dairy units in
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Quetta town and its suburbs stretching from Kuchlak to Sariab with strength of more
than 25,000 buffaloes and 5000 cows besides house hold dairy animals which also
far exceed those maintained by the commercial units to meet domestic needs. There
are as big commercial units as having even 500 to 600 buffaloes each. These animals
are milked twice a day manually and raw milk sold mostly through dealers, vendors
and milk shops with whom annually/six monthly agreements are made. There is not
a single unit possessing milking parlous or milk cooling facility in and around
Quetta rather whole of the province. Thus raw and un-chilled milk being favorable
and good media for growth of bacteria gets nature of farming and seasonal milking
period. Balochistan province does not possess any buffalo breed except off-shoot of
Kundi buffaloes of Sindh and canal irrigated districts of Jaffarabad and Nasir Abad.
Other buffalo population comprises peri-urban units in almost all towns of the
province to meet demand of milk of urban population and according to 1996
livestock census consists of 161,000 heads but it then reduced to almost 100,000
heads due to long drought period (Wahab, 2002; Shafiq and Kakar, 2007). These
buffaloes are usually of Kundi breeds of Sindh and Ravi-Nilli of Punjab. These
buffaloes in milk are purchased from Sindh and Punjab on high prices. When these
animals go dry these are usually sold for slaughter or are sent back through brokers
to canal irrigated areas of Sindh or Punjab deteriorated on one hand and becomes
source of serious diseases like typhoid, T.B and cholera to human beings.
Role of Livestock and Dairy Development
Livestock and dairy development department of the province provides good service
to the farmers in the form of veterinary cover, vaccination and artificial
insemination. The artificial insemination fortified the non-descript animals with the
high potential blood of the European breeds. The following graphical presentation
predicts the annual progress in the artificial insemination. Quetta and the adjoining
districts are in the leading position in AI because of the demand for high milk
producing animals to coup with the increasing demand in the milk for the urban
dwellers.
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1) Project Concept:
Livestock plays an important role in the economy of the country. Livestock sector
contributed approximately 51.8 percent of the agriculture value added and 11.3
percent to national GDP during 2008-09. Gross value addition of livestock at current
cost factor has increased from Rs. 1052 billion (2007-08) to Rs .1287 billion (2008-
09) showing an increase of 22.3%. The value o f live stock is 6.1% more than the
combined value of major and minor crops. Government gives high priority to its
development and is focused on private sector led development of livestock.
Underpinning the importance of livestock, the government has placed livestock on
national development agenda to spearhead the development efforts through private
sector, fully autonomous private sector-led, “Livestock and Dairy Development
Board” and “Pakistan Dairy Development Company” have been established. These
companies are serving as platform for investment in livestock sector. The federal
government has substantially increased public sector investment in livestock sector
and has initiated mega projects.
1.1 Commercial Dairy Farmers
Commercial dairy farmers depend on land, labor and animals as the major resources.
The thrust in modern dairy farming is on the increased use of capital and
management. Successful dairy farming harnesses all available resources into
productive and profitable unit. Dairy farming is highly complex as it includes
breeding, management, feeding, housing, disease control and hygienic production of
milk on farm. The judicial use of means and resources to achieve clearly defined
goals is the key success factor in modern dairy farming i.e. the art of maximization
and optimal utilization of resources and means for maximizing productivity and
profits.
Dairy farming is an important economic and social part of our countryside. Many
dairy farmers are already managing their land in am environmentally beneficial way,
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such as carefully managing pasture and watercourses. However, farmers will face
some considerable environmental challenges. The extreme whether especially during
hot climate of summer are quite unsuitable for the Holstein Friesian Cows to give
the maximum production therefore, it is essential to provide the most suitable
ambient according to their genetic factor, in which they will be housed and produce.
Dairy farmers still face great economic pressure, with low milk prices and ever
increasing production costs. At the same time, dairy farming is coming under
increasing scrutiny, with the public wanting food produced at a low environmental
cost. There is also an impact from changes to environmental rules. A proactive
approach from dairy farmers to environmental problems. Along with the support of
the industry and government, can make step towards keeping the industry
economically and environmentally controlled, while reducing the likelyhood or
impact of future regulation.
2) Project life cycle:
The project life-cycle typically passes through four stages: definition, planning,
execution and delivery as shown on the figure below.
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Figure 2.1 Project Life-cycle1
The project life-cycle for our project is discussed in this and the subsequent chapters.
2.1 Project Definition Stage:
2.1.1 Name of the project
Establishment of Environmental Controlled Dairy farm of 300 Holstein Friesian
cows Quetta
21.2. Location
Quetta
2.1.3. Authorities responsible for
a. sponsoring
Through Federal PSDP
b. Execution
1
Figure taken from the book “ Project Management: The Managerial Process” by Clifford F. Gray &
Eric W. Larson
18
Livestock & Dairy Development Department Balochistan

c. Operation and maintenance
Livestock and dairy Development Department, Quetta
d. Concerned Federal Ministry
Ministry of Livestock & Fisheries
2.1.4 SWOT Analysis of the Project:
a) Strength:
i. Strategic location of the project with high facilities and customers.
ii. This project can helped by PSDP
b) Weaknesses:
i. Weather conditions of Quetta like humid, cold weather etc
ii. Due to economic pressure the project may be affected and corruption is
still exist in market.
iii. The extreme weather especially during hot climate of summer are quite
unsuitable for the Holstein Friesian Cows to give the maximum
production.
c) Opportunities:
i. Increase in the production of milk
ii. Increase in the opportunity of due to the establishment of dairy farm of
300 cows.
d) Threats:
i. Market saturation due to a large number of entrants over a longer
period of time
ii. Threat of an increase in the prices of the milk by the government
iii. Current political scenario and law and order situation in the
country
iv. Economic pressure
v. There is also an impact from changes to environmental rules.
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vi. A proactive approach from dairy farmers to environmental

problems.
vii. High production cost
2.1.5 Project cost:
Project Cost
A) Capital Cost
Land cost 4 acres 1, 800,000.00
Building infrastructure 85,529,500.00
Animals 300 90,000,000.00
Machinery & Equipment 10,723,680.00
Furniture and Fixtures 1,000,000.00
Officer Vehicles 1 3,500,000.00
Office equipment 1,000,000.00
Miscellaneous 300,000.00
Total Capital cost 193,853,180.00
B) Recurring cost 53,466,844.80
Total Project COST 247,320,024.80
2.2 MARKET ANALYSIS
2.2.1 Marketing Channels
Historically animals have not been marketed on a regular basis for income as a
commercial endeavor but sold in times of need. Old females were sold in the spring
to pay for supplies, and adult males in the fall for the production of LANDHI, dried
mutton, a winter staple food.
However, around population centers i.e. big towns and cities, producers have started
to consider animal commercial ventures and targets specific markets.
Annual Horse and Cattle Show held at Sibi also provides farmers an opportunity to
market their livestock within province as well as to other provinces. Although
livestock marketing is not well established in Balochistan, however there are
livestock markets usually called "Pirri" scattered through out the province; but
having very limited basic facilities both for farmers and animals.
20
Marketing; and distribution involves many stakeholders; producers (Agro

pastoralists), dealers (usually from villages or adjoining areas), wholesalers,
butchers, and consumers. It is difficult to be precise about their exact numbers and
their role in the marketing process. The marketing takes place on individual animal
as well as on lot basis. The different agents involved are described below:-
2.2.2 Producers
Livestock producers are widely dispersed and rarely coordinate with each other.
They sell their livestock principally at the village level. Since they sell small
ruminants to meet urgent cash demand, the producers are not in a position to bargain
very effectively. In a few cases, producers attempt to time the sale of animals to take
advantage of seasonal fluctuation, but, in general, the expected price is not a
determinant of the decision to sell.
2.2.3 Village Dealers
Village dealers purchase animals from surrounding areas and sell them to
wholesalers in town markets. They pay the animal transportation costs, feeding costs
and their own transportation and food costs.
2.2.4 Wholesalers and Commission Agents
Wholesalers buy from village dealers in small towns and transport the livestock to
Quetta and the major consumption centers in other provinces such as Karachi and
Lahore. Wholesalers also sell livestock through commission agents in the
consumption centers. These agents are considered as an essential link with the
buyers, and undertake the bargaining and arrangements of livestock sales.
2.2.5 Butchers
Mutton, goat meat and beef are sold fresh and now even after refrigeration
particularly in Quetta and other warmer areas, in small shops after 8-10 hours of
slaughtering in traditional type slaughter houses which lack proper hygienic
facilities. Little, if any, meat is carried over to the following day. Most of the gross
income returns to butchers come from meat sales, but a substantial portion is
received from by-products such a skin, head, trotters, stomach, lung and liver.
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2.2.6 Consumers
Non-graded meat is sold by the butchers in their shops where poor hygienic
conditions do exist.
The Government regulates consumer prices of essential commodities, one of which
is meat, but does not guarantee minimum meat quality standards.
2.2.7 Wholesale Market Locations
Sheep and goats belonging to nomadic and transhumant graziers of Balochi and
Brahvi tribes are marketed, besides Quetta, in Sibi and Jacobabad. They come down
from their summer pastures in the highlands of Quetta, Mastung, Nushki, Kalat and
Khuzdar districts to spend the winter in the lower plains of Kachhi and Nasirabad.
Graziers of the Bugti and Marri tribes also market their surplus animals next to the
local markets in Jacobabad and Sibi, alongside flock owners from the Bolan, Sibi,
Jaffarabad and Nasirabad districts. Sheep and goats belonging to the sedentary and
transhumant graziers of the Khetran tribes of Barkhan, the Marri tribes of Kohlu
agency and the Duki tehsil, the Pathan tribes of Musakhel district, and the Bugti
tribes of Dera Bugti agency (Baker and Phailawag) are marketed in Rakhni (Barkhan
district) a border check-post located
2.3 Defining The Project Scope:(1st step)
2.3.1-Project objectives and its relationship with sector objectives

1. The proposed project objectives mentioned below is directly related to the
objectives of sector as the department/ sector. This will help a long way in
poverty alleviation/reduction. The main OBJECTIVE of the project are:-
o A new Trend to the Dairy industry in the area
o More Production at low labor cost
o Provision pure cow milk in the area.
o Poverty alleviation
o Job opportunities
22
2.3.1.1 Location
Quetta
2.3.1.2 Capital cost Estimates
 Duration 3 years
 Local cost: Rs.247.32 Million
 Foreign exchange costs: ------
Total= Rs.247.32million
2.3.2 Deliverables:
Project Component
 Land Required at outskirt of Quetta
 Construction of Farm Building.
 Procurement of Machinery and Equipment
 Man Power.
2.3.3 Milestones:
The project will be completed in 6 stages.
1. Registration and grand of license by Ministry Of livestock and Fisheries and
permit approval by government of Pakistan through Prime minister -
February 1, 2010 (1 month)
2. Foundation Proof, Land Required & construction of Farm Building. - March
1, 2010 (12 months)
3. Dry in, framing, shedding, cage for calves, calves shed, electrical work,
cished for Heifers and mechanical inspection passed – june 1, 2010 (1- year)
4. Furnishing, store rooms, milk storage rooms ,utensils landscaping etc– july ,
2011( 1-1/2year)
5. Selection and Installation of cows ,equipment and machinery – februrary 1,
2013(6 months)
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6. Final inspection and operationalization - august 15, 2013 (1 months).

2.3.4-Technical Requirements
The following and system is required for environmental controlled Dairy Farms.
 Recirculation Fans – horizontal HSLV or ceiling mounted HVLS
 Curtain System –one piece and split in various configurations
 Side Wall Panel Systems
 Ventilation Chimneys or Ridge Exhaust
 Total System Computer Controllers
 Mist or Drip Cooling Systems or Evaporative pads
 Fans Inlet Systems
2.3.5 Limits and Exclusions
About 4 to 5 acres of land will be purchased for building a dairy farm project of
animal starting from 300 animals. Majority of this land would be used for building
and environmental controlled sheds for the animals to protect them from severity of
the weather. The area for fodder production can be acquired on lease, how ever in
this pre-feasibility it is assumed that the fodder will be purchased and stored when it
is available in abundance at low price.
3.2 Establishing Project Priorities (Step 2)
Since dairy farm demand more production and purity, hence, performance
specifications cannot be compromised. We know that dairy farm is a fastest growing
in Pakistan and many competitors are present in the market. So we want to reduce
time to take advantage of this opportunity. In the process, however, cost is being
compromised and we allow budget overrun of not more than 247million
Time Performance Cost

Constrain Ο
Enhance Ο
Accept Ο
Table 3.1: Project Priority Matrix
3.3 Work Breakdown Structure (Step 3)
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The WBS defines all the elements of the project in a hierarchical framework and
establishes their relationships to the project end item(s). page.
The WBS for the Environmental Controlled Dairy Farm of 300 cows is shown in the
figure on the next page.
3.4 Coding Dairy farm (Step 4)
25
Project
cost 1
Infra
Capital Space per Equipmen Man
structure
cost1.1 animal2.1 t4.1 power5.1
cost3.1
Land Shed2.1 Shed Maize Manager

cost1.11 1 3.11 4.11 5.11
Milking
Building Cage Cage Technical
mach4.1
1.12 2.12 3.12 5.12
2
Animals Claves Claves Cooling Worker

1.13 2.13 3.13 unit4.13 5.13
Mach
Store Heifer Generat Driver
and
2.14 3.14 or4.14 5.14
eqip1.14
Furnitur Utensils Utensils Pump Assistan

e1.15 2.15 3.15 4.15 t5.15
Officer
Servant Tractor
vehicle
room2.16 4.16
1.16
Office
Bunker
equipment
1.17 salvage
2.17
Miscellou
nis1.18
26
4-PROJECT COSTS2:
The estimated total project cost is
Project Cost
B) Capital Cost
Land cost 4 acres 1, 800,000.00
Building infrastructure 85,529,500.00
Animals 300 90,000,000.00
Machinery & Equipment 10,723,680.00
Furniture and Fixtures 1,000,000.00
Officer Vehicles 1 3,500,000.00
Office equipment 1,000,000.00
Miscellaneous 300,000.00
Total Capital cost 193,853,180.00
B) Recurring cost 53,466,844.80
Total Project COST 247,320,024.80
Fig.4.1 Project total cost
4.1 Project Financing

The total cost of the project is Rs.2.47 million including the capital cost of Rs.1.94
million.
4.2 Project Details
2
All the financial information presented here is based on rough cut estimates.
27
4.2.1 Location
For setting up a Dairy farm, location is the prime factor. As per the requirements of
the Government of Pakistan, the dairy farm must be situated in a commercial area.
The dairy farm is not allowed to be established in the residential areas.
4.2.2 Land A minimum of 4 acres approximately 175 feet of land is required for
establishing the cow dairy Farm. An amount of Rs.18lacs has been allocated for the
establishment of the cow dairy Farm of commercial land in Quetta in the areas of
Baruri road.
4.2.3 Infrastructure
The total cost of construction is estimated at Rs. 85 million. Details for the said cost
are as follows:
Infrastructure Cost
s.# Details Area in Rate / cost
sqft sqft
1 Shed along with free stall for cows 20,400 2,200 44,880,000.00
2. cage for calves (up to 15 days) 1,584 2,200 3,484,800.00
3.calves shed(15 days to one year) 3,168 2,200 6969,600.00
4. shed for heifers (older then one year) 4,928 2,200 10,841,600.00
5.stores for fodder, concentrate and machine room 400 2,200 880,000.00
6. utensils & milk storage 480 2,200 1,056,00.00
7. servant Room, Wash room 400 2,200 880,000.00
8. Bunker silage 11,025 2,200 16,537,500.00
Total infrastructure cost 85,529,500.00
Fig-4.2 Project total infrastructure cost
4.2.4 Space Required Per Animal

There is also a space required for the storage of 300 animals which is very essential
par of the s=dairy farm for such type of special cows.
The total cost as the space required is given in the table,
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Space Requirement per Animal Sq. ft
1. Shed along with free stall for cows 100

2. Cage for calves (up to 15 days) 9
3. Calves shed (15 days to one year) 18
4. Shed for Heifers (older then one year) 56
5. Stores for fodder, Concentrate and machine room 400
6. Utensils &milk storage 480
7. Servant Room, Wash room 400
8. Bunker Silage 25
Total space required 1488
Fig-4.3 Total space required for animal
4.2.5 Equipment required with cost

The equipment reuired per animal is also an integeral part. the total cost of
equipment is estimated as, Rs.10, 723,680.00.The other cost which include in this
total equipment cost is given in detail in fig 4.3
Farm equipment cost

s. Name of equipment Unit cost Animals Total cost
# /equip
1 Maize cutter 600,00.00 300 600,000.00
2. Milking machine (Milking Parlour) 300 5,4823,6800.00

5,823,680.00
3 Milk cooling unit- 3000litres) 1,000,000.00 150 1,000,000.00
4. Generators (25 KVA) 700,000.00 2 1,400,000.00
5. Submersible Pump 500,000.00 1 500,000.00
6. Tractor 800,000.00 1000 800,000.00
7. Heavy duty ventilation Fans 400,000.00 300 400,000.00
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8. Trolly 200,000.00 500 200,000.00
Total equipment cost 10,723,680.00
Fi4.3-Total equipment cost

4.3 Manpower Requirement
Manpower requirement for the dairy farm includes farm manager, Technical
manager, worker, Tractor driver, stock assistant. The total staff strength would be 20
persons for this. The total cost estimated for manpower salary is Rs.3, 972,000.00.
The staff ratio and salaries for year one is shown in table
Man Power
s. Description No Salary per Month Total cost

#
1 Farm manager 1 35,000.00 420,000.00
2. Technical 1 20,000.00 240,000.00
3 Worker 15 15,000.00 2,700,000.00
4. Tractor Driver 1 15,000.00 180,000.00
5. Stock Assistant 2 18,000.00 432,000.00
Total 3,972,000.00
Fig4.4-Manpower Requirement and estimated cost
Net cash flow of the farm

1 Administration benefits expense 3% 119,160.00
2 Traveling expense 4% 158,880.00
3 Communication expense 1% 39,720.00
4 Office vehicles running expense 3% 105,000.00
5 Office misc expenses 5% 198,600.00
6 Extra wages 1% 39,720.00
30
7 Machinery and equipment repair 1% 107,236.80

8 Professional fees 3% 119,160.00
9 Machinery and equipment 10% 1,072,368.00
depreciation rate
10 Office equipment depreciation rate 10% 100,000.00
11 Furniture and fixture depreciation 10% 100,000.00
rate
12 Feeding charges 430.00 47,085,000.00
300.00
13 Vaccination-medication 500.00 250,000.00
14 Salaries 3,973,000.00
Total cash out flow = 53,466,844.80
Average milk production per cow/day 15L
Rate of milk sold in whole sale per lit Rs 30
Total milk produced per day 4500L
Total income from the sale of milk 49,275,000.00
Income from the sale of manure 12TL 4, 38.00 8,760,000.00
Income from the sale of claves 750,000.00
Net sale (cash inflow) 58,785,000.00

Net profit 5,318,155.20
Project Networking:
31
Project network is a logical diagram developed on the basis of information presented

in the table below. The following table presents all the necessary details related to
the network diagram, like, activities and their description, logical sequence and the
interdependencies of activities. Project networking diagram is shown in the figure.
Activity Predecessors Description Activity duration
te
(months)
1. --- Registration and grand of license by 2
Ministry Of livestock and Fisheries.
2. 1 Land Required & construction of Farm 10
Building.
3. 2 Dry in, framing, shedding, cage for 7
calves, calves shed, electrical work
4. 2-3 Furnishing, store rooms, milk storage 18
rooms , utensils landscaping etc
5. 3-4 Selection and Installation of cows , 6
equipment and machinery.
6. 5 Final inspection and operationalization 2
7. 4-6 Man power, manager, technical, workers 3

etc
32
4
18 6
30
30
12
1 2 5 2 6 3 7
0 0 12 36 38 41
12 36 38 41
3
12 6
24
30
Activity =
Dummy =
Critical path =
X
YZ
X is Event, Y is EOT & Z is LOT
33
TIME ESTIMATION FOR ACTIVITY DURATION:

ACTIVITY OPTIMISTIC* MOST PESSIMISTIC* ESTIMATED
(to) LIKELY* (tp) TIME*
(tm) te = [to+4tm+tp]/6
1 1 2 3 2
2 10 12 4 12
3 4 12 10 12
4 16 18 20 18
5 7 4 10 6
6 2 2 3 2
7 3 2 11 3
All activity durations are measured in months.
Optimistic time (to): It is the time required if no hurdles or complications arise
Most likely time (tm): It is the time in which the activity is most likely to be
completed
Pessimistic time (tp): It is the time required if unusual complications or difficulties
arise.
DETERMINATION OF THE CRITICAL PATH:

A critical path is the longest activity path(s) through the network. The critical path
can be distinguished by identifying the collection of activities that all have the same
minimum slack. There are four steps involved in the determination of the critical
path.
EOT: Earliest Occurrence Time calculated as:
EOTij = Max [ EOTi + D ij ]
where i, j represent activities i and j
Dij = Duration of activity ij
LOT: Latest Occurrence Time, calculated as:
LOTi = Min [ LOT i – Dij ]
34
SLACK: Difference between LOT and EOT

EVENTS EOT LOT SLACK = LOT -
EOT
1 0 0 0
2 12 12 0
3 24 30 6
4 30 30 0
5 36 36 0
6 38 38 0
7 41 41 0
ACTIVITY FLOATS
There are three measures of activity floats, each of which calculates a different
amount of delay that can be assigned to a particular activity without delaying the
project. These are:
i) Total float
Total float = LOTj – EOTi - Dij
ii) Free float
Free float = EOTj – EOTi - Dij
iii) Independent float
Independent float = EOTj – LOT i – Dij
where i, j represent activities i and j

Dij = Duration of activity ij
ACTIVITY TOTAL FLOAT FREE FLOAT INDEPENDENT

FLOAT
1(1-2) 0 0 0
2(2-3) 6 0 0
35
3(2-4) 0 0 0
4(3-5) 6 6 0
5(4-5) 0 0 0
6(5-6) 0 0 0
7(6-7) 0 0 0
From the table we can see that activities 1, 2, 4, 5, 6, 7 cannot be delayed because
they lie on the critical path 1 – 2 – 4 – 5 – 6 – 7. Therefore, there is no flexibility in
scheduling these activities.
RISK BREAK DOWN STRUCTURE

Any risk entered on the list is never removed even if the time zone when it could
occur has passed. The list of risks from any project is a source of valuable learning
data for future projects and is a useful data source for deriving checklists.
Technical
 Requirements
Specific location of land with required area
Ventilation Chimneys
Mist or Drip Cooling Systems or Evaporative pads, and fans
Technical mangers engineers and staff are required
 Technology
Technology availability on time
Staff should be highly skilled to control the technology
Latest machinery to reduce time and cost
Laboratories
36
Project
Project
Technical External Organizational
management
Weather
Dependenci
Requirement Planning
es
Technology Economic Resource Controlling
Performance
Political Prioritizing
of labor
Quality
 Performance
Highly skilled labor to control and monitor the form
 Quality
37
The production per milk animal is less due to poor feed quantity and quality,
lack of breeding and managerial skill, poor veterinary cover and lack of
government interest.
External
 Weather
Suitable weather is required that is 12 to 27 degree
Drought season effect on animals
 Economic and political
These conditions can effect on the project as we required stable condition
Organizational
 Dependencies
Our project is totally depending on government funds and policies dairy
farms depend on land, labor and animals as the major resources.
 Competition
Many dairy farmers are already managing their land in am environmentally
beneficial way, such as carefully managing pasture and watercourses.
 Organization culture
Dairy farmers still face great economic pressure, with low milk prices and
ever increasing production costs. At the same time, dairy farming is coming
under increasing scrutiny, with the public wanting food produced at a low
environmental cost
 Organization location
Dairy farm should be located in such kind of area where it cover more
consumers
 Resource
Quality of material and resources
 Prioritizing
A reasonable amount of the milk is being converted in other products like
ghee etc. A better collection system is must, and should be the top priority
38
Project management
Planning
Planning for uncertain conditions
Risk management meeting
The project risk log must be reviewed; normally monthly at project progress
meetings unless decided otherwise by the project sponsor. The review needs to
focus on:
 any change in the potential impact or probability of identified risks;
 subjugate any new high risks upgraded from a previously lower ranking ones
for closer examination;
 derive contingency plans for either avoidance or damage limitation;
 add any new risks identified to the list and assess these for impact and
probability.
Monitoring
Monitoring is the regular observation and recording of activities taking place in a

project or programme. It is a process of routinely gathering information on all
aspects of the project. To monitor is to check on how project activities are
progressing. It is observation; ─ systematic and purposeful observation.
Monitoring also involves giving feedback about the progress of the project to the
donors, implementors and beneficiaries of the project. Reporting enables the
gathered information to be used in making decisions for improving project
performance.
Purpose of Monitoring:
39
Monitoring is very important in project planning and implementation. It is like

watching where you are going while riding a bicycle; you can adjust as you go
along and ensure that you are on the right track.
Monitoring provides information that will be useful in:
 Analysing the situation in the community and its project;

 Determining whether the inputs in the project are well utilized;
 Identifying problems facing the community or project and finding
solutions;
 Ensuring all activities are carried out properly by the right people and in
time;
 Using lessons from one project experience on to another; and
 Determining whether the way the project was planned is the most
appropriate way of solving the problem at hand.
As Monitoring will be the major part of our project So we monitored all the
activities in respect of Effectiveness and Efficency in relating this with the
machines and equipments,costs and Employeess performance. We are keenly
monitoring the stages as defined in WBS.
OBJECTIVES OUTCOMES PROBLEMS CONCLUSION
1. A new The dairy farm is Problems occur We are successful

Trend to the need for economic like to run a new trend
growth as well as corruptin,polictical in the society that
Dairy
for domestic need. pressure, economic will be beneficial
industry in conditions for maximum
the area people.
40
2. More We produce Problems occur We can minimise

Production at products at low during production the resources
labour cost and due to inflation, wastage by its
low labor cost
there is a increase high price lack of efficient use.
in production resources.
3. Provision we got a pure cow Cow suffer from we get our
pure cow milk milk by follow this disease which I s a objective in the
project in the area big problem for us provision of pur
in the area.
where we want and make a hurdle filk from Holstein
in collection of Friesian cows
pure milk
4. Poverty Our main objetives Biasness may Merit based
alleviation is poverty ellivation involve in hirring selection can be
and we see that of people. done.
people will activly
participate in
domestic work.
5. Job Large number of No problems People who are

opportunities jobs introduced illetrate got job
due to establishmen related to cows
t of this cow farm farming.
41
42
REFRENCES
43

Final Cows Dairy Farm Project

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Final Cows Dairy Farm Project

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Establishment of Environmental Controlled Dairy farm

Balochistan university of information

Research report on:

Research conducted By:

Research Assigned By:

Sir Aymen Sajjad

February 8th, 2010

All Praise is for the lord

Our Profound thanks to

Last but not least we are

02 PROJECT LIFE CYCLE 04

EXECUTIVE SUMMARY OF PROJECT

We Establish an Environmental Controlled Dairy farm of 300 Holstein Friesian

Project Capital cost Estimates is

There is a networking diagram Project network is a logical diagram developed on

decisions for improving project performance.Our monitoring strategy involves

Establishment of Environmental Controlled Dairy farm of 300 Holstein

Figure 2.1 Project Life-cycle1

Livestock & Dairy Development Department Balochistan

vi. A proactive approach from dairy farmers to environmental

Marketing; and distribution involves many stakeholders; producers (Agro

2.3 Defining The Project Scope:(1st step)

2.3.1-Project objectives and its relationship with sector objectives

 Construction of Farm Building.

 Procurement of Machinery and Equipment

6. Final inspection and operationalization - august 15, 2013 (1 months).

Time Performance Cost

Land Shed2.1 Shed Maize Manager

Animals Claves Claves Cooling Worker

Furnitur Utensils Utensils Pump Assistan

4.1 Project Financing

Fig-4.2 Project total infrastructure cost

4.2.4 Space Required Per Animal

Space Requirement per Animal Sq. ft

1. Shed along with free stall for cows 100

4.2.5 Equipment required with cost

Farm equipment cost

2. Milking machine (Milking Parlour) 300 5,4823,6800.00

4. Generators (25 KVA) 700,000.00 2 1,400,000.00

5. Submersible Pump 500,000.00 1 500,000.00

6. Tractor 800,000.00 1000 800,000.00

7. Heavy duty ventilation Fans 400,000.00 300 400,000.00

8. Trolly 200,000.00 500 200,000.00

Total equipment cost 10,723,680.00

Fi4.3-Total equipment cost

s. Description No Salary per Month Total cost

2. Technical 1 20,000.00 240,000.00

3 Worker 15 15,000.00 2,700,000.00

4. Tractor Driver 1 15,000.00 180,000.00

5. Stock Assistant 2 18,000.00 432,000.00

Fig4.4-Manpower Requirement and estimated cost

Net cash flow of the farm

7 Machinery and equipment repair 1% 107,236.80

Total cash out flow = 53,466,844.80

Average milk production per cow/day 15L

Rate of milk sold in whole sale per lit Rs 30

Total milk produced per day 4500L

Total income from the sale of milk 49,275,000.00

Income from the sale of manure 12TL 4, 38.00 8,760,000.00

Income from the sale of claves 750,000.00

Net sale (cash inflow) 58,785,000.00

Project network is a logical diagram developed on the basis of information presented

7. 4-6 Man power, manager, technical, workers 3

TIME ESTIMATION FOR ACTIVITY DURATION: