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Dairy DevelopmentDr. Naveed NiaziContact# 0333-430-11-18

rnavee n az gma .com

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Pakistan Dairy at a Glance

Physical Resources

27 million

Da ry Farms

8.14 million

Milk Production

.2 million tonn

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Pakistan Dairy at a Glance

Average farm size 1.8 Anim als

, 2009

Milk Production Growth Rate2.9

Demand Growth rate 5%

Share of Dairy in Livestock

products 66%

Milk price Growth Rate 7.5%

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Milk Production

Animal

(Million Tonne s)

1986 1996 2006 1986 & 1996 1996&2006

Cows 7.07 9.36 13.33 32.4 42.4

Buffaloes 14.82 18.90 25.04 27.5 32.5

Total 21.89 28.26 38.37 29.1 35.6

Source. Economic Survey, 2006-07

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Province W ise Milk Pro duction

3.96% 0.66%Punjab

63%

Punjab

Sindh

NWFP

Balochistan

Baluchistan

Sindh

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1. billion ltr . is ro cessed % of

Total Pr oduction)

Per Capita Consu m ption/yr 190 L

sm all holder

GOP 2005-06

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Dairy Economy

20 m illlion families ar e en gaged

Low Pr odu ctivity = 1333

15-19%w astage from spoiling

Buffaloes 13.6 Million

Cattle 13.4 Millions

63% of prod uction in Punjab

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a ry conomy

43. on ers pro uce

20% is w asta e in

6.7 billion liter s is householduse

. 29% urban share

71%rur al share

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3.6 Bio

10 Bio

250 mio

2007 2013 2023

Demand Supply

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Back bone of econom .

Major source of food, i.e. Milk & Meat Provides raw material for Leatherindustr .

Source of Farmyard Manure (FYM). Sizeable foreign exchanges earning

throu h ex orts. Wide scope of Milk Production, ranking

4th in the world. Availability of ample human resource .

Huge demand and supply gap in dairysector

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Weaknesses Lack of appropriate knowledge, research extension

Unorganized sector, unaware of basic farmmanagement practices.

Remote area, lack of farm to market approach &transportation.

.

Negligible application of research work on pedigreerecord keeping. Management of dairy farm is a

challenging job. Less availability of Nutrition .

diseases every year.

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a ry eve opmen rogramJune 30, 2008

urat on 200 2011

Budget Rs 1568.350 m

Execution Livestock and Dair Develo m entBoard

Components

Farmers (300 Milk cooling units in 500 villages)

Support to Market-oriented Rural Dairy Farmers /

Production of Progeny-tested Bulls (Expansion of progenytesting program of Sahiwal cattle & Nili-Ravi buffaloes andn t at on o program or Re S n catt e an Kun

buffaloes )

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Working Mechanism of Milk Collection, Marketing from

Small and Landless Farmers

MPG: participatory

Milk Collect. Centre

Localproblems,

local

co mmunity, moresustainable

& Community shop(Seed, balanced ration,medic ines etc

solutionThroughcapacity

building

Better marketing and better price

Uplift in socio-economicstatus

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Dair Develo mentProgram

Milk Pro ducer Gr oups: 186

Punjab 66 (Kasur 26, Noshwhra Virkan 23, M.B.din 17)

NWFP 43 (Mardan 7, Noshehra 14, D.I Khan 12, Charsada 4,H ar ipur 6)

Balochistan 22 (Pashin 16, Kuchlak 6)

Sindh 28 (T.M.Khan 5, Tando Allahyar 10, Badin 10,Thatta 3)

Northern Area s 12 (Gilgit 7, Skardu 1, Astor 1, Ghanche 1, Ghizer,

Azad Ka shm ir 15 (Bhimber 7, Kotli 7, Mirpur 1)

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Milk Cooling Tank Installed: 150 , . , . .

NWFP 33 (Nowshehra 12, D I Khan 7,Mardan 7, Charsada 4) NA 12 Gil it 7 Hunza 1 Astore 1 Ghizer 1

Ganche 1, Sakardu 1)

Sindh 21 (T.M. Khan 5, T Allahyar 6, Thatta 3,

Badin 7)za as m r ot 6, m er 6, rpur 1

Balochistan 11 (Kuchlak 4, Pashin 7)

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Dairy Development Program

VLW MCTO Punjab 42 67

NWFP 32 30 Balochistan 13 16

NA 09 16

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AVERAGE PRICE DIFFERENCE (PER LITER) RS = 4.5

AVERAGE MILK MILKCOLLECTION COLLECTION

er er er ay . s. , .

60 Chillers (Per Day) 26,220 Lit. Rs.1,17,990/ -

(Per Month)

7,86,600 Lit. Rs.35,39,700/ -

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Dairy Farming as Business

The feasibility study by SMEDA suggests aninitial herd size of 100 animals, which iseconom ca o us y e over ea cos . efarm size will increase to aprox. 500 animals

.recommended to get the maximum milk

roduction round the ear.

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Project Investment

The total cost of the project is Rs. 25,628,616, out of which the capital cost of the project isRs.24,375,270 for purchasing the animals and constructing the building and the rest is used to meet theworking capital requirement.

Pro ject Costs (Rs)

Account Head Total Cost (Rs)Capital Cost Land 1,000,000 Building/Infrastructure 8,197,930 Animals Machinery & equipment 3,844,340 Office vehicles 505,000

Pre-operating costs 328,000 Total Capital Costs 24,375,270Working Capital

Raw material inventory 473,346 Upfront land lease rental 350,000 Land lease for fodder 350,000 Cash 80,000

Total Working Capital 1,253,346 Total Investment (Rs) 25,628,616

The proposed pre-feasibility is based on the assumption of 50:50 debt equity ratio.

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Viability ProjectIRR % 1%

NPV @17% (Rs) 54,832,286

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Opportunities for Specialized

Dairy Feed Industry- Naked field if commercial,

feed industry to grow

,operations

Herd re lacement farms

Specially for peri urban production system

Feedlot fattening farms

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Opportunities

Bio Gas Production Units Milk Processin

Numerous opportunities and a smart BusinessMind can make most out of these

Good News: Local Expertise available for alltechnical aspects

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Outlook

The Development ofSector in Pakistanepen s on e

Emergence of Dairy as

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