control shed

Queen’s Land Environmental Controlled Shed

M.Com 4th (MOR)

(2008-2010)

M.com 4th Morning (Finance)- -

1

Submitted to;Sir Javaid Iqbal

Submitted By; Muhammad Anis 15 Shakir Rashid 27

Hafiz Zahid Mahmood 45


TO OUR

PARENTS

&

TEACHERS

Our kind Teacher Sir Javeed Iqbal by virtue of who’s Prayers, We have been able to reach at this position and whose hands always rose for prayers and wellbeing. We feel proud by having guide ling from our teacher Sir Javeed Iqbal We cannot forget their cooperation and sacrifices.

Sir Javaid Iqbal


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We pay our humble gratitude, with humility and submission, to ALLAH, the Almighty, the Omniscient, the Omnipotent & the Omnipresent, who bestowed our potential to accomplish this task. The completion of this issue is, mere, the blessing of ALLAH and Holy Prophet Hazrat Muhammad (Saw).

We feel honor to express our sincere gratitude to Sir Javeed Iqbal for this supervision, guidance and encouragement throughout this project. We always found him very much alive, full of zeal, vitality and intellectual curiosity. With out him ideas, remarks and endless interest out and completed and thanks to all teachers.

Ch:No Contents Page #


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1 Introduction 05

2 Executive Summary 06

3 SWOT Analysis 11

4 Market Analysis 13

5 Technical Analysis 20

6 Personnel Analysis 25

7 Financial Statements 26

8 Financial Ratios 29

9 Assumptions 30

10 Conclusion & Recommendations 31

Chapter

Introduction


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1


Chapter

Executive Summery


The poultry farm is a project of livestock sector, in which, the day old chicks (DOCs) are raised on high protein feed for a period of six weeks. Broiler meat is the cheapest source of animal protein available in the country. The time required for rearing broiler birds is lesser than that for large animals. The consumption of white meat is increasing due to growing health consciousness in the masses. Broiler farming is a profitable venture due to continuous increasing demand of the meat in the market. Annually, seven flocks of birds will be reared on the same premises of the farm. The broiler birds are sold to traders and the whole sellers markets in the urban areas. Some times birds can also be sold directly to the shopkeepers in the urban markets.

Broiler meat is the cheapest source of animal protein available in the country. The time required for raising broiler birds is lesser than that for big animals. The consumption of white meat is increasing due to growing health consciousness in the masses.

According to the Agriculture Statistics of Pakistan the per capita consumption of poultry meat is increasing at a rate of 4% per annum.

The existing daily availability of protein quantity per

capita in Pakistan deriving from animal source including beef, mutton, poultry and fish combined amounts to 11 grams. This is far less than the recommended daily dietary protein allowance from animal source of 26 grams according to the World Health Organization standards.

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.

5

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The proposed project contemplates to set up Queen’s Land Environmental Controlled Shed at Chak 34BC in Dera Bakkah Hasilpur Road Bahawalpur. The annual rated capacity is 525,000 Kg of meat. The proposed project has latest imported machinery from Spain but it is directly purchased from supplier through Lahore and locally made building structure.

LOCATION:

The proposed project contemplates to set up Queen’s Land Environmental Controlled Shed at Chak 34BC in Dera Bakkah Hasilpur Road Bahawalpur. The target market is Bahawalpur City. The area of the project is 1Acre.

The proposed project site enjoys the benefits of;1) Easy availability of raw material 2) Quick access to main road and Railway station. 3) Sources of power, water, fuel etc.4) Availability of Transport and modern Communication systems. 5) Availability of Skilled and Un-Skilled labor. 6) Free from environmental hazards like water logging and salinity.

PRODUCT MIX:

The proposed project will generate revenues from sale of chicken.

INSTALLED CAPACITY OF PROJECT:

Installed capacity of the project at 100% is 210,000 birds or 525,000 Kg of meat annually.

ESTIMATED PRODUCTION:

Chicks 2011 2012 2013Total Production Capacity

100% Production 90% 95% 100%

Total Production Capacity '000 525

473

499

525


6


ESTIMATED COST OF PROJECT:

Project Cost Description Amount '000’ Land & Land Development

1,920

Building & Civil Works 8,783

Machinery 2,622

Furniture & Fixture 159

Pre-Production Expenses 185

Interest During Construction

1,246

Cost of Project 14,915

Contingencies 10% Project Cost 1,492

Total Fixed Cost 16,407

Initial Net Working Capital

8,190

Total Cost of Project 24,596

MEANS OF FINANCE:

Means of Finance Amount '000'Debt 60% Allied Bank Loan 14,758Total Debt 14,758Equity 40% 9,839


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Total Debt & Equity 24,596

NAME OF SPONSORS:

The sponsors of the project are professionally qualified and have valuable and extensive experience of business management in poultry field namely;

Muhammad Anis resident of Bahawalpur

Contribute 40% towards Total Equity

Shakir Rashid resident of Bahawalpur

Contribute 30% towards Total Equity

Hafiz Zahid Mahmood resident of Ahmad Pur East Contribute 30% towards Total Equity

The overall management and control of the firm will be actively managed by its partners who will actively participate in management decisions and control the affairs of the firm.

SPONSORS STAKE:

Names of Sponsors % of Equity Contribute Amount '000'Muhammad Anis 40% 3,935Shakir Rashid 30% 2,952Hafiz Zahid Mahmood 30% 2,952Total Equity 100% 9,839


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NAME OF CIVIL CONTRACTOR:

Apna Home Designer;Muhammad Yaseen Afzal;Contact # 0301-3334445One Unit Chowk Bahawalpur.

NAME OF MACHINERY SUPPLIER:

Ahmad W. Naseer,Biovet Pvt Limited,97-A, Jail Road, LahoreOffice # 042-7534508Mobile +92-300-8444202Web: www.biovet.com.pkEmail: [email protected]

IMPLEMENTATION SCHEDULE:

Implementation ScheduleS.# Activities Month Year

1 Acquiring of Land & leveling Start 1st April 2010 Complete 15th April 2010

2 Engineering studies and designing of Start 16th April 2010 civil work Complete 30th April 2010

4 Order for machinery 1st Aug 20105 Construction of building and civil work Start 1st May 2010

Complete 31st Aug 20106 Arrival of machinery at site 1st Sep 20107 Erection and installation of machinery Start 5th Sep 2010

Complete 20th Sep 20108 Order for raw materials 15th Sep 20109 Trial run Start 21st Sep 2010

Complete 30th Sep 201010 Start of commercial production 1st Oct 2010

OPPORTUNITY RATIONALE:


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Broiler meat is the cheapest source of animal protein available in the country. The time required for raising broiler birds is lesser than that for big animals. The consumption of white meat is increasing due to growing health consciousness in the masses.

According to the Agriculture Statistics of Pakistan the per capita consumption of poultry meat is increasing at a rate of 4% per annum.

The existing daily availability of protein quantity per capita in Pakistan deriving from animal source including beef, mutton, poultry and fish combined amounts to 11 grams. This is far less than the recommended daily dietary protein allowance from animal source of 26 grams according to the World Health Organization standards

.

10


Chapter

SWOT Analysis

Environmental Controlled Shed

STRENGTHS:

Environmental Controlled Shed has various strengths and they are as follows:

Growth in small businessRequire government incentiveGovernment role and supportDevelop training program for Poultry FarmersMeet large demand of meat per year at cheaper pricescooperative marketing system in the developing process Less Chances of DiseasesMaintain temperature less than 40*C

WEAKNESS:

The weaknesses of Environmental Controlled Shed are as follows:

Adoption of new vaccinesHigh cost of raw materialNot availability of spaceDiseasesUnhygienic conditionProcessing plant


11

3


Poor management Lack of trained workerlack of access to inputs and credits

OPPORTUNITIES:

Environmental Controlled Shed has various opportunities and they are as follows:

Scope for frozen companyEconomic beneficialAdvantage for small business personScope for restaurant Continuous increase in demand of meat in marketSales price are reasonable & internal rate of return is also lowProduction on large scale can maximize profit

THREATS:

The threats of Environmental Controlled Shed are as follows:

Effect of change in the government regulation.Bird FluHeavy duty charge on incubatorPresent crisisContinuously too much variation in sales pricesEnergy crisesRapid increase in chicks prices


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Chapter

Market Analysis

The marketing of chickens follows the traditional channels of distribution. Generally, broilers are distributed in the market through middlemen and Wholesalers. The role of Arti is to identify a farm and negotiate the price. In some Cases, the middleman provides Day Old Chicks and other farm inputs (feed, etc.) to the broiler farmers and then agrees to buy back the mature birds from them. Birds are transported to the urban market and are sold to retailers or market-street Poultry shops. Birds are sold on live-weight basis. The time spent in getting broilers from the farm to the retail shop is brief. Although collection and handling of birds has improved with the use of loader vehicles, but it is an established fact that greater the distance between the poultry producer and consumer, more complicated is the Marketing system including their collection, handling and transportation to the Consumer or processing plants. The processing plant produces dressed chicken (Slaughtered and cleaned). However, a very small amount of dressed chicken is Available in the local retail market. The integrated processing units distribute frozen and dressed chicken packed in whole or cut-ups to the consumer through retail shops under their brand names. The trick in marketing is quick availability of market information of chicken supply And demand, which will determine the selling price.

DISTRIBUTION CHANNELS


13

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Type Units 2006-07 2007-08 2008-09

Domestic Poultry Million No’s

74.02 75.11 76.22

Cocks 8.84 9.08 9.32Hens 34.84 35.47 36.11Chicks 30.34 30.57 30.79Eggs 3484 3547 3611Meat 000 Tons 96.54 98.45 100.41Duck, Drake & Ducking Million No’s

0.67 0.64 0.61

Eggs 29.85 28.61 27.42Meat 000 Tons. 0.91 0.87 0.83

Commercial Poultry

Layers. Million No’s 24.82 26.56 28.42Broilers 370.7 407.77 448.55Breeding Stock 7.25 7.61 7.99Day old Chicks 387.2 425.92 468.51Eggs 6682 7136 7620Meat 000 Tons 456.95 501.3 550

Total Poultry

Day old chicks. Millions No’s

418 456 499

Poultry Birds 477 518 562Eggs 10197 10711 11258Poultry Meat. 000 Tons 554 601 651

(Economic Survey of Pakistan 2008-2009)

Poultry Sector is one of the vibrant segments of agriculture industry of

Pakistan. This sector generates employment (direct/indirect) and income for about 1.5

million people. Its contribution in agriculture growth is 4.81% and in Livestock

growth 9.84%. Poultry meat contribution 19% of the total meat production in the

country. The current investment in Poultry Industry is about Rs. 200.00 billion.

Poultry sector has shown a robust growth at the rate of 8-10 percent annually which

reflects its inherent potential.

2006-2007 2007-2008 2008-2009


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BROILER

A Broiler Grant Parent 200,000 175,000 135,000

Punjab 100% 100% 100%B Broiler Parent Stock 8.0 M 7.5 M 5.5 M

Punjab 68% 75% 79% Sindh 2% 2% 3% N.W.F.P 30% 23% 18% Baluchistan - - -C Commercial Broiler 800 M 720 M 550 M

Punjab 75% 75% 75%

Sindh. 20% 20% 20%

N.W.F.P 4% 4% 4%

Baluchistan. 1% 1% 1%

LAYER D Layer Grant Parent 4,000 - - Punjab 100%

- -

E Layer Breeder New 428,000 225,000 290,000

Molted 250,000 275,000 170,000 Punjab 75% 75% 75%

Sindh 20% 20% 20% N.W.F.P - - 5%F Commercial Layer 35.5 M 34.0 M 30.0 M

Punjab 70% 70% 70% Sindh 25% 25% 25% N.W.F.P 4% 4% 4%

Baluchistan 1% 1% 1%

FEED G Feed 5.5 M.T. 5.0 M.T 3.8 M.T Punjab 82% 82% 82% Sindh 18% 18% 18%

N.W.F.P - - - Baluchistan - - -


BROILER:

G.P 200,000 (Including all Lines). P.S. 6.0 M Broiler 600 M


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LAYER: P.S 0.45 M

Commercial 30.00 M

Live Wt.

BROILER:

G.P. 200,000 X 4 = 0.8 M. Kg P.S. 6.0 X 4 = 24.0 M. Kg Broiler 600 X 1.6 = 960.0M. Kg

LAYER:

P.S. 0.45 X 2 = 0.9 M. Kg Commercial 30 X 2 = 60.0 M. Kg Total = 1045.7 M. KgMeat 60 % = 627.0 M. KgPer Capita = 3.92 KgDesi = 0.60 KgTotal Per Capita = 4.52 Kg


POULTRY GP IN PAKISTAN UPDATES 17-12-2009:

ALNOOR GP PROJECT AL-NOOR CHICKS (PVT) LTD.P-485,OPPOSITE NATIONAL SILK MILL 4-km,,Jaranwala Road


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FaisalabadPhone : (92-41) 8555782-87 5LINES FAX;92 41 8710472SALES OFFICE;FALT;17-18,KALA KHAN PLAZA SHAMASABAD MUREE ROAD RAWALPINDITEL;92 51 4419050,4453958,4417288 FAX;92 51 4425389KARACHI;FAX;92 21 4540522,TEL;92 21 4540533MULTAN;92 61 4549674-4546779R Y KHAN;92 68 5873422,5873622CEO CH NIAZ RASOOLBRPOILER GP SHAVER STARBRO LAYER GP SHAVERMr. Niaz Rasool ChaudaryChairman. GRAND PARENT POULTRY (PVT) LTD.

2-A, Ahmad Block, New Garden Town, LAHORE 54600P.O.Box: 157 LahorePhone: (92-42) 35835374-35835373, 35837512-14 Fax :( 92-42)35835371-35839170-35860519UAN; 111 111 [email protected]@bugbird.lcci.org.pkwww.bigbirdgroup.comCEO DR MUSTAFA KAMAL, 92 300 8450403Rawalpindi office; 6-a, commercial satellite town RAWALPINDITEL; 92 51 4451740-4843790 FAX; 4841016DR NAEEM TARIQ, HUBBARD TECHNICAL SERVICES HOUSE#123 STREET NO-65 F-11/4 ISLAMABAD PAKISTANTEL FAX; 92 51 2297478CELL 92 300 [email protected]

FAISAL CHICKS

POSTAL & CONTACT;P-42/1 OPP MUNCIPAL DGREE COLLEGE JARANWALA ROAD FAISLABAD PAKISTANTEL;+92 41 8726639-8727639fax;+92 41 8546639


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E-MAIL;[email protected] CH MUSTAFADIRECTR DR AHMAD MUSTAFAMARKEETING MANGER;DR AAMER MALIKG.P LAYER NOVOGEN GROUPE GRIMAUD (SISTER COMPANY OF HUBBARD)

QUALITY BREEDERS

HEAD OFFICE: HOUSE#28-A, BLOCK-D, SATELLITE TOWN MAIN 6TH ROAD RAWALPINDITel: 111-96-96-96 fax 442518092 51 [email protected] DR HASSAN SAROSH AKRAMBROILER GP ARBOR ACERS


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POULTRY & MARKETING DIVISION:


19


Chapter

TECHNICAL ANALYSIS

PROCESS FLOW:


20

5


FLOW SYSTEM:

The following practices starting from arrival of the chicks to

Thermostatically temperature control: Low temperature will be

controlled with the help of diesel heaters and high temperature

with evaporative cooling system.

Watering through automatic nipple drinking system.

Feeding through automatic feeding system.

Specific vaccination schedule will be adopted for disease control.

Prophylactic medication will be provided according to

requirement.

Sanitation and disinfection program will be strictly followed

during and after the completion of one flock.

Computerized record will be maintained for feed intake, body

weight, FCR and mortality.

Marketing of finished (ready) broilers.

TECHNOLOGY INVOLVED:

The Machinery which is used for Queen’s Land

Environmental Control Shed is Foreign Machinery which imports

form Spain and we directly purchased it from Biovet Pvt Limited

Lahore (Supplier).


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LIST OF MACHINERY:

Machinery and Other Equipment

Description Qty Cost /Item Rs. '000'

Feed Hooper 1 55,000 55

Cooling Pad 4 19,900 80

Electric Moter 1HP 25 5,293 132

Generator 25 KV 1 400,000 400

Transformer 25 KV 1 310,000 310

Winch 5 5,527 28

Cone Fan Exhaust 15 17,000 255

Feed Line 4 85,680 343

Water Line 5 60,235 301

Water Tank 1500 liter 2 9,300 19

Environment Controller 1 203,000 203

Brooder 2 183,587 367

Regulator 3 5,530 17

Penal Board 2 7,080 14

Alarm Box 1 4,850 5

Pressure Machines 2 20,065 40

Main Switch 1 2,610 3 Total Cost of Machinery & Equipment 2,571

Erection & Installation 2% 51

Total Machinery & Equipment Required 2,6

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REQUIREMENT OF RAW MATERIAL:

Raw Material 2011 2012 2013

Rs ''000' Rs ''000' Rs ''000'Chicks 13,608 16,519 19,996 Feed Bags 23,020 27,944 33,827 Vaccine 162 171 180.04Total (Rs.) 36,790 44,634 54,003

REQUIREMENT OF UTILITIES:MANUFACTURING OVER-HEADS

a) FIXED COSTS (Rs.000)

(KVA)(Fixed Amount)

No. of Months

Power KVA 25 315 per KVA 12 95Repairs & Maintenance

Building @ 4%

on Construction Cost 351

Machinery @ 5% Installed cost 131Generator (Diesel) Rs. 500,000 per Flock 7

Flock in Year 3,500

Miscellaneous 50 Total Fixed cost 4,127 b) VARIABLE COST

Price/Unit Consumption Units per Day

No. of days in year Total

Off-Peak/Day 6.27 70 315 138Peak/Day 10.27 18 315 58Total Variable Cost 196

MANUFACTURING OVER-HEADS 2011 2012 2013 90% 95% 100%Fixed Costs 4,127 4,127 4,127Variable Costs 177 187 196

Total Costs 4,304 4,314 4,323

Chapter


24


Personnel Analysis

HUMAN RESOURCE REQUIREMENT:

S.No. Types of Staff Required Salary Per Month Salaries for Year

1General Manager 1 10,000 112,000

2 Accountant 1 8,000 96,000

3 Supervisor 1 11,000 132,000

4 Doctor 1 20,000 240,000

5 Workers 6 7,000 504,000

6 Electrician 1 9,000 108,000

7 Cook 1 7,000 84,000

8 Sweeper 2 4,000 96,000

9Security Guard 1 6,000 72,000

TOTAL 15

1,440,000

Chapter


25

6


Financial Analysis

INCOME STATEMENT:

INCOME STATEMENT Amount '000' (Rs.)For the Year ended 2011 2012 2013Operating Efficiency Assumed 90% 95% 100%

Sales 59,0

63 71,6

95 86,789 Cost of good Sold:.

Raw Material Consumed 36,7

90 44,6

34 54,003

Labor 1,0

68 1,1

21 1,177

Manufacturing Expense 4,3

04 4,3

14 4,323

Depreciation 7

06 7

06 706

Cost of good Sold 42,8

68 50,7

75 60,210

Gross Profit 16,1

94 20,9

21 26,579 Operating Expenses: General and Admin. Exp (Increase Annually) 2%

484

494 504

Selling Expenses 1% 5

91 7

17 868

Total Operating Expenses 1,0

75 1,2

11 1,371

Operating Profit (EBIT) 15,1

20 19,7

10 25,207

Other Income 2,7

23 9

71 1,124 Non-Operating Expenses: Amortization of Pre-Production Exp (Years) 3

62

62 62

Interest Expense 3,3

57 1,9

94 1,492

Earning Before Tax (EBT) 14,4

23 18,6

25 24,778

Provision for Tax 20% 2,8

85 3,7

25 4,956

Net Profit after Interest & Taxes 11,5

39 14,9

00 19,822 Dividend 0 0 0

Retained Earning 11,5

39 14,9

00 19,822

BALANCE SHEET:


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7


Balance Sheet (Rs. in '000')

Construction 2011 2012 2013

ASSETS Cash 1,442 29,301 43,206 62,448Marketable Securities 0 0 0 0Accounts Receivables 188 2,953 3,585 4,339Raw Material Inventory 5,840 0 0 0

Stores & Spares 1,305 3,679 4,463 5,400

Total Current Assets 8,774 35,934 51,255 72,188 Fixed Assets at cost 16,222 16,222 15,515 14,809Less: Accumulated Depreciation 0 706 706 706Net Fixed Assets 16,222 15,515 14,809 14,103

Preliminary Expenses: 185

Total Assets: 25,180 51,449 66,064 86,291

LIABILITIES & EQUITY

Current Liabilities Accounts Payable 0 3,679 4,463 5,400Accrued Expenses 0 2,953 3,585 4,339Taxes Payable 0 2,885 3,725 4,956Bank Borrowings 584 3,679 4,463 5,400

Cur. Mat. of L T Debt 0 5,070 4,695 4,193

Total Current Liabilities: 584 18,266 20,932 24,288

Long-term Liabilities Allied Bank: Outstanding Loan Principal 14,758 11,806 8,855 5,903

Total Long-term Liab.: 14,758 11,806 8,855 5,903

Total Liabilities 15,342 30,072 29,786 30,192

EQUITY Paid-up Capital (Sponsors) 9,839 9,839 9,839 9,839

Retained Earning 0 11,539 26,439 46,261

Total Equity: 9,839 21,377 36,277 56,099

Total Liabilities & Equity: 25,180 51,449 66,064 86,291

CASH FLOW STATEMENT:


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E S T I M A T E D C A S H F L O W S (Rs. in 000)

Construction Year 2011 2012 2013

SOURCES

Operating Profit 0 15,12

0 19,71

0 25,207

Add Back: Depreciation 0 706 706 706Amortization of Pre-Production Expenses 0 62 62 62

Funds from Operations 0 15,888 20,478 25,975

Paid-up Capital (Sponsors) 9,839 0 0 0

Increase in Current Liabilities 0 17,682 2,666 3,357

Increase in Bank Borrowings 584 3,095 784 937

Decrease in Current Assets 0 700 0 0

Outstanding Loan Principal 14,758 0 0 0

TOTAL SOURCES 25,180 37,364 23,928 30,269APPLICATION OF FUNDS

Investment in Fixed Assets: 16,222 0 0 0

Preliminary Exp 185 62 62 62

Financial Expenses 1,246 2,361 1,869 1,367

Repayment of :

Debt 0 2,952 2,952 2,952

Taxes 0 2,885 3,725 4,956

Increase in current Assets: 7,332 0 1,416 1,692

TOTAL 24,984 8,258 10,023 11,027

Chapter


288


Financial Ratios:

FINANCIAL RATIOS:

Financial Ratios

2011 2012 2013

Gross Margin 27.4% 29.2% 30.6%

Operating Margin 25.6% 27.5% 29.0%

Net Margin 19.5% 20.8% 22.8%

Current Ratio 1.97 2.45 2.97

Cash Ratio 1.60 2.06 2.57

Debt/Equity Ratio 36% 20% 10%

IRR & PAY BACK PERIOD:

IRR 39%

Pay Back Period 2 Years Approximately

Chapter


299


Assumptions

Some of the assumptions were underlying during the preparation of Financial Statements are as below;

Sale price of chicks increase 15% yearlyPurchase price of chicks Increase 15% yearlyPurchase price of feed bags increase 15% yearlyAccount Receivable annually 5% of salesAccrued expenses annually 5% of salesAccount payable annually 10% of material consumedStores & Spares 10% of material consumedInitial net working capital is for 1 FlockFlocks per year 7Legal & Brokerage 4% on cost of landStamp duty 2% on costRegistration cost of land 1%Transfer cost of land 1%Land is 1 AcreCost of land per acre Rs. 1,500,000Annually tax rate 20%Depreciation rate of Machinery, Building and Furniture are 15%, 5% and 3% respectivelyPre-Production expenses are amortized in 3 yearsIncrease in wages 5% yearly General & Administrative expenses increase 2% annuallyOperating efficiency assumed in year 1,2 and 3 are 90%, 95% and 100% respectively Equity portion 40%Debt portion 60%

Chapter


30


Conclusion & Recommendations

CONCLUSION:

The poultry farm is a project of livestock sector, in which, the day old chicks (DOCs) are raised on high protein feed for a period of six weeks. Broiler meat is the cheapest source of animal protein available in the country. The time required for rearing broiler birds is lesser than that for large animals. The consumption of white meat is increasing due to growing health consciousness in the masses. Broiler farming is a profitable venture due to continuous increasing demand of the meat in the market. Annually, seven flocks of birds will be reared on the same premises of the farm. The broiler birds are sold to traders and the whole sellers markets in the urban areas. Some times birds can also be sold directly to the shopkeepers in the urban markets.


31

10


COMPERATIVE EFFECIENCY OF ENVIRONMENTAL CONTROL (ECH) AND CONVENTIONAL OPEN-SIDE HOUSE:

The modern trend of environment control houses (ECH) in poultry production has brought a great revolution in poultry industry of Pakistan in the recent years. This has solved a great hurdle of heat stress in the way economical commercial poultry production. The ECH with evaporative cooling system, providing tunnel ventilation, giving the wind chill effect has markedly improved the broiler production system. The technology of ECH is rapidly becoming popular among broiler producers due to its following significant advantages;

The ECH brings down the temperature by 10 to 15C as compared to the conventional open-sided houses (COH) and makes it comfortable like colder regions.ECH maintains the uniform temperature round the clock providing very conducive environment to the broilers avoiding fluctuation in the day and night temperature.Due to severe heat stress during 4 long summer months the broiler production is stopped in COH, resultantly only 4-5 flocks are possible in such houses in a year. However, in ECH 7 flocks are marketed without any break.ECH being complete closed system has minimized the incidence of diseases, cutting down the cost of vaccine and medication i.e.Rs.2/bird against Rs.5/bird in COH.Mortality in ECH has been decreased to 2%-3% as compared to 10% in COH.Installation of highly mechanized automatic feeding and nipple drinking system in ECH has provided the solution of manual and poor management practices. One houseman at daytime and one at night time are sufficient to look after a flock of 35,000 birds. In COH nearly 6-8 housemen are required to manage such a flock.Equal distribution of feed and water to broilers through automatic system in ECH has markedly improved the uniformity up to 95% as compared to 75% in COH.In ECH a broiler flock is ready for market in 35 days as compared to 42 days in COH.An individual broiler in COH usually consumes 3 to 3.3 kg feed to gain 1.5 kg weight reflecting its Feed Conversion Ratio (FCR) = 2 to 2.2. Whereas this figure of FCR is improved to 1.8 in ECH.


32


VISIT HIGHLIGHTS:

We have visited Sunshine Protein Shed Farm located in Chak 34BC in Dera Bakkah Hasilpur Road Bahawalpur. Some of the visit highlights are given below;


33


GOVERNMENT POLICIES:

In Pakistan the concept of commercial poultry rearing, hatching and feed milling was not known few decades ago. The back yard poultry was the only source of enriched animal protein. In back yard rearing we didn't have the real growing or laying birds.' In fact the birds were not kept for any kind of financial gains; rather to rear poultry was like rearing kids. I mean they were only reared and cared either they are profitable or not. It was the start of 6th decade of the 20th century, when the Government of Pakistan felt the need of intensive Poultry rearing program by keeping in view the increased demand of white meat due to heavy growth in our 'population. So, it was in 1962 when Commercial Poultry was initially introduced in Pakistan by M/S Shaver's of Canada with the help of PIA and that led to the formation of the PIA Shaver with' the poultry sector.' In its embryonic stages became a blue eyed to the government officials and the rearing or any kind of business relating poultry was announced to be Tax exempted. The first hatchery was then established in Karachi. Our government supported poultry industry in all aspects that helped the industry to develop rapidly. As the Poultry was new in the region, the disease problems were obviously expected also, therefore in early 90's' Gumboro hits Broiler & Layer flocks and parent stock suffered heavy mortality resulting in great economical losses. After that' incidence the efforts were made to get things on track by addressing Vaccination and Bio-Security issues very religiously. The shock was yet fresh in the mind of the farmers and Poultry entrepreneurs when in mid 90's the new disease caught the Parent Flocks in the Northern Areas (Abbotabad and Mansera), where the mortality rate went up to 80% and the industry again suffered grave losses .Again in very next year in 1996 due to increased number of parent stock, the prices of chicken products fell down even below the' cost of its production and the farmers again suffered heavy losses. This down fall misery continued till 1997 and ban on marriage food was imposed which reduced the consumption of poultry products by 40%. Late 90s led to the phase of stability in the poultry industry and farmers got good profit margin. New investors rushed into the poultry farming by adopting the new techniques of environment control houses and industry shifted from traditional conventional open houses to Semi and completely closed automated houses where the intensive rearing


34


is done under one roof. In this transformation the industry shared huge investments from multinationals and the poultry over all flourished till 2004. In 2004 Avian Influenza hit the South East Asia and Pakistan Poultry Industry suffered heavily due its rumors. Imposition of ban on imports of poultry products by Middle East countries made things more miserable. This scary condition of the industry is yet prevailing. We experienced hike in the poultry market for a few months and then a long phase of depression due to selling our products below the cost of production. The Up's and Down's are with every industry but poultry industry of Pakistan witness that quite too often.

PRESENT STATUS OF POULTRY SECTOR 2010:

I. Fixed Investment in poultry sector is over Rs.200 Billions. II. Presently turnover of Pakistan Poultry Industry is about Rs.300 Billions.

III. There are about 25000 Poultry Farms in the Country.

IV. Poultry sector generates employment and income for about fifteen hundred thousands people.

V. Poultry sector is one of the most organized branches of the agro based sector of Pakistan. Its growth rate is 10-12% annually.

VI. At present over 50 Billions' of agriculture produce and Bio products of Agriculture are being used in poultry feeds.

VII. 40% of the total meat consumption is being procured from poultry products.

A. we are producing 7830 Million Table eggs.

B. 13,936 Metric Tons chicken meat annually.

VIII. In our Country per capita consumption of meat is only 7 KG and 60-65 eggs annually.


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A. Whereas developed world is consuming 41 KG meat and over 300 Eggs per capita per year. B. No of Hatcheries 400 C. No of Feed Mills 150 D. No of People /dependant 1.5 Millions IX. POPULATION Broiler Breeder 8.5 Million Birds Layer Breeder 0.428 Million Birds Commercial Broiler " 8 .6 x 105 = 900 Million Birds Layer Birds 29 Million Birds Feed Consumption 5.51 M.M.T

PROVINCE WISE POULTRY STATISTICS:

1. BROILER a. Broiler Grand Parent 200,000

b. Broiler Parent Stock 7.0 Millions

Punjab 68%

Sindh 2%

N.W.F.P 30%

Baluchistan

c. Commercial Broiler 700 Millions

Punjab 70%

Sindh 23%

N.W.F.P 5%

Baluchistan 2%

2 .LAYER

d. Layer Grand Parent 4000

Punjab 100%

e. Layer Breeder 450,000

Punjab 67%

Sindh 25%

N.W.F.P 8%

Baluchistan

f. Commercial Layer 32 Millions

Punjab 61%

Sindh 32%

N.W.F.P 5%

Baluchistan 2%

3. FEED

4. Feed 5.5 M.T.


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Punjab 82%

Sindh 18%

N.W.F.P

(Pakistan Poultry Association)

RECOMMENDATIONS:

In Pakistan the concept of commercial poultry rearing, hatching and feed milling was not known few decades ago. The back yard poultry was the only source of enriched animal protein. In back yard rearing we didn’t have the real growing or laying birds. In fact the birds were not kept for any kind of financial gains; rather to rear poultry was like rearing kids. They were only reared and cared either they are profitable or not.

It was the start of 6th decade of the 20th century, when the Government of Pakistan felt the need of intensive Poultry rearing program by keeping in view the increased demand of white meat due to heavy growth in our population. So, it was in 1962 when Commercial Poultry was initially introduced in Pakistan by M/S Shaver’s of Canada with the help of PIA and that led to the formation of the PIA Shaver with the poultry sector.

We conclude that on the basis of field work and survey of control shed that the meat is necessary product so its demand increases day by day. There is no chance to decrease the demand of meat. Availability of raw material is very easy. So, conclusion is that the control shed is a profit motive business because no chance of decrease of demand.

Our recommendation to new investors is that they must invest in control shed because from the last 5-6 year there is a great change or entrance of new control shed in Pakistan. So, they step forward to come and invest or to start this business, and also contribute in the economic as well as social growth of Pakistan.


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control shed

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