Dairy Development

Dr. Naveed Niazi Contact# 0333-430-11-18 drnaveedniazi@gmail.com d d i i@ il

Pakistan Dairy at a Glance
• Physical Resources
▫ Dairy Animals
27 million

▫D i F Dairy Farms
8.14 million

▫ Milk Production
35 35.2 million tonn

Pakistan Dairy at a Glance • Average farm size 1.9% % • Demand Growth rate 5% Share of Dairy in Livestock products 66% • Milk price Growth Rate 7.8 Animals (IFCN. (IFCN 2009) ) • Milk Production Growth Rate 2.5% .

6 Source.33 25.90 28.26 2006 13.5 35.07 14.04 38.82 21.5 29.89 1996 9.4 27.1 1996&2006 42. Economic Survey. 2006-07 .37 1986 & 1996 32.36 18.Milk Production Type of Animal Gross Annual Production (Million Tonnes) % Change Between 1986 Cows Buffaloes Total 7.4 32.

96% 0.66% 23% Baluchistan 63% Punjab Sindh NWFP Balochistan Sindh .Region wise Milk Distribution NWFP Province Wise Milk Production Punjab 3.

5 billion ltr.Dairy Economy • 1. is processed (3% of 5 p (3 Total Production) • Per Capita Consumption/yr 190 L • More than 75% of Milk comes from small holder GOP 2005-06 .

4 Millions • 63% of production in Punjab .Dairy Economy y y • 20 milllion families are engaged with dairy farming • Low Productivity = 1333 liters/animal/yr • 15-19% wastage from spoiling • Milch Animals 27 Million ▫ Buffaloes 13.6 Million ▫ Cattle 13.

5 ▫ 29% urban share ▫ 71%rural share .7 billion liters is household use • 28 5 billion liters marketed 28.6 billi 6 billion lit liters produced d d • 20% is wastage in g • 6.Dairy E D i Economy • 43.

Supply Demand Situation 10 Bio 3.6 Bio 250 mio 2007 2013 Demand 2023 Supply .

• Availability of ample human resource . y p • Huge demand and supply gap in dairy sector .e. Milk & Meat • Provides raw material for Leather industry. i. g p • Wide scope of Milk Production. y • Source of Farmyard Manure (FYM). • Major source of food.Strengths • Back bone of economy. • Sizeable foreign exchanges earning through exports. ranking 4th in the world.

• Remote area. • Lack of record keeping on farm farm.Weaknesses • Lack of appropriate knowledge. Management of dairy farm is a challenging j b h ll i job. unaware of basic farm management practices. . lack of farm to market approach & transportation. • Less availability of Nutrition . • Enormous production losses due to endemic diseases every year. • Negligible application of research work on pedigree record keeping. research extension • Lack of commercially viable breeds of animal • Unorganized sector.

2008 • D Duration i 2006 – 2011 6 • Budget Rs 1568.Dairy D D i Development Program l tP June 30.350 m • Execution Livestock and Dairy Development y p Board • Components ▫ Milk Collection and Marketing from Small and Landless Farmers (300 Milk cooling units in 500 villages) ▫ Support to Market-oriented Rural Dairy Farmers / Production of Quality Breeding Animals (1000 farmers) ▫ Production of Progeny-tested Bulls (Expansion of progeny testing program of Sahiwal cattle & Nili-Ravi buffaloes and initiation f i i i i of program for Red Sindhi cattle and K dhi f R d Si dhi l d Kundhi buffaloes ) .

Marketing from Small and Landless Farmers MPG: participatory System organized by community.Working Mechanism of Milk Collection. local solution Through capacity building Milk Collect. balanced ration. Centre & Community shop (Seed. more sustainable Local problems. medicines etc Better marketing and better price Uplift in socio-economic status .

I Khan 12.Dairy Development y p Program Milk Producer Groups: 186 • Punjab 66 (Kasur 26.Thatta 3) • Northern Areas 12 (Gilgit 7.Khan 5. D.din 17) • NWFP 43 (Mardan 7. Mirpur 1) . Charsada 4. Haripur 6) • Balochistan 22 (Pashin 16. M. Kotli 7. Ghanche 1.B. Badin 10. Tando Allahyar 10. 1 Hunza 1) • Azad Kashmir 15 (Bhimber 7. Ghizer 1.M. Kuchlak 6) l hi hi hl k • Sindh 28 (T. Noshwhra Virkan 23. Noshehra 14. Astor 1. Skardu 1.

Pashin 7) . M. . Badin 7) Azad K h i A d Kashmir 13 (K tli 6.Ghizer 1. Bhimber 6.B. Ganche 1. (Gilgit .M. Hunza 1.Din NWFP 33 (Nowshehra 12.Dairy Development Program Milk Cooling Tank Installed: 150 Punjab 60 (Kasur 23 N Virkan 20 M B Din 17) 23. Mirpur 1) (Kotli 6 Bhi b 6 Mi Balochistan 11 (Kuchlak 4. Charsada 4) NA 12 ( g 7.Virkan 20. . N. Astore 1. Khan 5. Sakardu 1) Sindh 21 (T. . T Allahyar 6. Mardan 7. D I Khan 7. Thatta 3.

Dairy Development Program VLW Punjab Sindh NWFP Balochistan AJK NA 42 21 32 13 09 09 MCTO 67 14 30 16 13 16 .

PRICE BENEFIT Rs.700/- .1.39.17.220 Lit.5 R 1 966 5 60 Chillers (Per Day) 60 Chillers (Per Month) 26.86.35.600 Lit.1.990/- 7.5 AVERAGE MILK COLLECTION Per Chiller (Per Day) P Chill (P D ) MILK COLLECTION 437 Lit Lit. Rs. Rs.966.AVERAGE PRICE DIFFERENCE (PER LITER) RS = 4.

Herd mixes of 100% cows are years recommended to get the maximum milk p production round the y year. which is economical to j tif th overhead cost. Th i l t justify the h d t The farm size will increase to aprox.Dairy Farming as Business The feasibility study by SMEDA suggests an initial herd size of 100 animals. . 500 animals within 10 years.

500.628.000 Cash 80.616.24.253.930 Animals 10. .616 The proposed pre-feasibility is based on the assumption of 50:50 debt equity ratio.270 for purchasing the animals and constructing the building and the rest is used to meet the working capital requirement.346 Total Investment (Rs) 25.000 Land lease for fodder 350.375. 25.Project Investment • • • • • • • • • • • • • • • • The total cost of the project is Rs.000 Pre-operating costs 328.844. g p q Project Costs (Rs) Account Head Total Cost (Rs) Capital Cost Land 1.000 Total Capital Costs 24.000.000 Building/Infrastructure 8.000 Machinery & equipment 3.346 Upfront land lease rental 350.270 Working Capital Raw material inventory 473.628.340 Office vehicles 505.000 Total Working Capital 1.375.197. out of which the capital cost of the project is Rs.

832.06 .Business Economics Viability Project IRR (%) ( ) NPV @17% (Rs) Pay Back Period (year) 4 41% 54.286 4.

Naked field if commercial farming emerges. limited private operations • Herd replacement farms p ▫ Specially for peri urban production system • Feedlot fattening farms .Opportunities for Specialized Enterprises • Dairy Feed Industry. there are big chances for dairy emerges feed industry to grow • Fodder seed Production.

Opportunities • Bio Gas Production Units • Milk Processing g Numerous opportunities and a smart Business pp Mind can make most out of these Good News: Local Expertise available for all technical aspects .

Outlook O l k • Dairy Farming will continue as subsistence activity for many y y y years in Pakistan • The Corporate Farming has its own space in market to Emerge and Grow .

Outlook • The Development of Sector in Pakistan depends on th d d the Emergence of Dairy as Industry .

Thank You .

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