Subject:

LM-711 Trends and Potential of Milk and Meat Production

Practical Exam:
Fall Semester – 2020-2021
Submitted by:
Irfan Ullah
Roll No. 477
Semester 2nd
Department:
Livestock Management
Submitted to:
Prof Dr. Abdur Rahman Sb
Question No.03
Based on below mentioned data, which meat will you choose as technical expert,
explain for your friend who is non-technical.
Description Kg H20 Lipid % Protein % Ash % Cost/kg
carcass %
Young cow 435 70 5 20 1,5 6500
Young cow 360 68 7.5 18 1.8 500
Yearling 210 78 4.5 21 1.3 800
Preweaning 70 80 2 22 1.2 900
calf

1st option
If we look to the chart of last two yearling and preweaning calf, there meat consist of
78 and 80% water respectively. So, its mean that we buy 8 and 10% more water instead of
meat. Because meat consist of 70% water.
2nd option
If we look to the price which is also very high so economically not feasible as well so
we will reject on base of price too.

3rd option
Which is providing little bit advantages to yearling and preweaning calf is protein
ratio which is 21 and 22% respectively, but still not overcome the water percentage which is too
much high.

note
Now if we look to young and old cow there is a big challenge because the values are
not that much different. But still I have options

1st point
Whenever we need to buy meat, we need to find out water percent and here old cow
having 68% water while young one has 70% which is standard, so on base of water we will
select old cow. But,
2nd option
If we look to the protein content, there are more in young cow than old cow which is
20 and 18% respectively. So I will select young one.

3rd option
If we look to the ash contents which is higher is the old cow than young one so will
reject old one cow on bases of ash as well

4th option
Price base selection always important economically but we need to buy protein not
water. If we look there is 2% difference between water and protein content of both cows so I
will prefer 2% more protein than 2% less water.
So, I will prefer young cow
Question No. 4
Write detail note on the dairy cow feasibility report, yearly profit, and how to
increase in resources possible with clear picture of all expenses details.
Dairy cattle feasibility report for 50 dairy animals
There are basic pilar for feasibility report
➢ General Information
➢ Cost
➢ Gross/ net income of dairy farm
➢ To find out total capital cost of entrepreneur
Procedure

• First to see milk marketing, fodder etc and then decide which farm is feasible.
• General information
Location , breed , lactation , parity , housing system
Cost
➢ Fixed cost
➢ Variable cost
Fixed
Invest for one time like building, and other constructed parts.
Variable
Change with time
Capital cost
Cost when animals, utensil, land, is bought, and building built.
NOTE: farm of cattle or buffalo less than 25 is not feasible.
Let assume that
Lactating cows through out year is = 40
Dry pregnant = 10
Table A: Animal cost.

Species Breed No. of animals Cost/ animal Total cost

Cattle HF 50 150,000 750,000,0
 Differentiation cost of animals:
Cost when animals is culled.

Culled animals/ 7 years Cost/animal Total cost Differentiation cost

50/7 40,000 50*40,000=200,0000 750,000,0 – 200,000=5500,000/7

So, the differentiation cost is 780,000/-

Risk cost
There are mortality chances too, so if animal dies, it’s called risk cost.
Table B: Cost of building/ construction.

Description Space/animal Total space in Cost/foot Total cost

ft2 ft2
Shed 70*50=3500 550 2,626,250
70
Open paddock 100 100*50=5000 350 1,750,000
Office store 12*16 192 550 1,056,00
Feed grinding and 20*30 600 550 330,000
chopping shed
Milk storage 12*4 16 550 8800

Total area= 3500+5000+600=9100 square feet.

As we know that 272 square feet is equal to 1 Marla, then 9100 will be equal to 33.45 Marla
Differential cost for building.
Covered building which we count it for 50 years so,
Total cost/50= 2626250/50= 52525/-
Uncovered building counted for 30 years
Total cost/30 = 1750000/30 = 58333/-

Table C: Cost farm machinery and equipment

Description No. Total cost
Milking parlor 4 bucket system 600,000
Trolly 20,000
Wheelbarrow 2 in number 10,000
Chopper with motor 50,000
 Tie chain 50/500 25,000
Milk cane 10/5000 50,000
Ceiling fan 8/3000 24,000
Generator 1 200,000
Miscellaneous 1 year 50,000 to 80,000
Total cost 13,54,000

Differentiation cost: 13,54,000 – 10% = 134,500

Total capital investment

Description Total cost
Animals cost 7,500,000
Land 5,400,000
Building covered 2,626,250
Uncovered building 1,750,000
Machinery 1,354,000
Sum of total cost 18,630,250

Total fixed cost for one year

1) Animals cost = 780,000/-
2) Building cost = 52,525
3) Uncover building = 58,333
4) Machinery cost = 135,400
Total cost =1026258/-

Variable cost
Description Required /year Total cost
Green fodder 40kg/ day 40*50*365 =730,000kg
Green fodder price 2.5*730,000 1,825,000 Rs
Weat straw 6kg/cow 5*50*180 =54,000kg
Wheat straw price 10/kg 10*54,000 =540,000
Let we assume that each cow produces 10-liter milk per day per year so how much concentrate
we need to feed to cows.

Description Cost
Concentrate to lactating cow 5*40*365= 73,000kg
For dry cows 2*10*365 = 7,300kg
Total concentrate 73,000+7,300 = 80,300kg
Cost of concentrate/ kg 35/kg, 35*80,300 = 2,810,500

Medicine, AI and vaccination cost per cow is 2,000/-

Then total cost on 50 animals are= 50*2000= 100,000
Labor cost: 1 person for 10 animals

Labor Salary/labor Total

5 15,000 15000*12= 900,000
Security guard 15,000 180,000
Supervisor cost 25,000 300,000
Sum of total 900,000+180,000+300,000=1,380,000

Total variable cost = 5869500/-

Fixed cost = 1026258/-
Total cost = 6895758/year
Output

1) (milk production)

40*10*365 = 14600Rs/-

Rate per liter is 90/-

Total value = 90*14600=131,40000Rs/-

2) 20 male calf
20*5,000 = 100,000/- (calf/5000)
3) 20 female calf
200,000/- (calf/10000)
4) Total = 300,000/-
5) Manure = 5 trolly/ month so, 60 trolly per year
 Price/trolly= 4000*60 = 240,000

6) Empty bags of vanda.

Total concentrate = 80300kg
1 bag = 40kg so,
80300/40 = 2007 bags
Empty bag price = 7/bag then 7*2007 =14049/-

Total one-year revenue/output.

Milk output 131,40000

Calf 300,000

Manure 240,000

Bags 14049

Total 13694049 Rs/-

Net profit, output – total cost = 13694049 – 6895758 = 8199874Rs/-

How to enhance profitability

From all variable source we can improve our profitability like if we purchase
concentrate with good price and reduce motility by proper management, enhance
production by genetic improvement, using some sort of technology to separate male
sperm from female so by this we will reduce male calf and increase female calf birth
rate.
Question No. 05

Write reasons why cooperate system of milk production not established in KPK,
if someone want to invest, which locality of the province will you suggest and
why.
If we look to Banas Dairy Cooperative, there are too many factors involved like farmers,
cows, milk, supply chain and end products.
Banas Dairy Cooperative interconnected with almost 350,000 Farmers, collecting 50
lakhs liter milk per day from 16 lakh cows, while producing 50 matric tons ghee, cheese and
much more products per day. There is different center which collect such milk from farmers
and then send to Banas Cooperative.
At the beginning Banas Cooperative collected 800 liters milk per day from 100 farmers.
Now if we look to KPK, there is no Cooperative like Banas Cooperative.
Why, because there are many reasons which are,

1) Number of cattle per house.

In KPK mostly people kept one or two cow for own milk production and utilizing
purposes, that's why not supplying milk to market

2) Number of farmers
Big farmers number is very less is KPK even supplying milk to market but not that much
enough, by which we fulfill the demand of Cooperative.
3) Land
Most farmers haven't that much land for feeding cows.

4) Interest
Kpk peoples not that much interested in rearing cattle or buffalo.

5) Need government initiatives and support

Government need to provide basic facilities to all farmer and provide Veterinarian for
assistance.

6) Good initiatives for farmers

Cooperative or Govt need to arrange some sort programs to awards farmers for their
hard work, and by this people will further give attention to such business.

7) Genetic improvement programs

 Cooperative need to provide Good quality semen to all farmers to enhance genetic
status of animals to produce more milk.

8) Diseases controlling programs

Cooperative need to arrange programs throughout the years to vaccinate all animals for
preventing diseases with the help of Doctors along with Govt. Interference

9) Record keeping of all farm related activities

10) Providing Supplements to enhance milk production
11) If needed Govt. Need to provide subsidies on supplements
But the main reason of failure to develop such kind of Cooperative is Farmers and No.
Of animals

• I just need here to mention about 2020 expo which was arranged by
livestock Farmers welfare associations (LEWA) of KPK, two-day livestock,
fisheries farmer's convention, and Expo (LAFFCE) on 9th and 10th
December. According to such expo there are livestock, fisheries and
agricultural farmers which are 12,000 participants.
Here, how we will build a Cooperative if we have only 12000 participants from three
different categories which is much less than 350,000 Farmers of Banas Cooperative.
So, this is the main reason of not to build a Cooperative by anyone till now.
And even if someone want to start Cooperative, they will need to invest first on farming
to rear more cows, will produce more milk. In such scenario if we look to the local markets and
want to buy one liter of milk from milk sale shop and go there little bit late, he will say sorry I
have no more milk you are late, then how we will provide millions of liters milk to a
Cooperative.
According to me and my view which I got from shared video Dear Sir, in kpk it's
impossible to start Cooperative like Banas Cooperative.
But if someone want to start I will probably select Charssada which will collect milk from
Peshawar and related regions and from Swat Marden, Nowshera side as well and will supply
their products like cheese, ghee, ice cream, etc. to different region easily.