dairy farm
DESCRIPTION
Dairy Farm Feasibility Report by Smeda.It can help you in determining the potential of this business in PakistanTRANSCRIPT
Pre-Feasibility Study
Prime Minister’s Small Business Loan Scheme
(12 Animal Dairy Farm)
Small and Medium Enterprises Development Authority
Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan e Iqbal, Egerton Road, Lahore
Tel 92 42 111 111 456, Fax 92 42 36304926-7
REGIONAL OFFICE
PUNJAB REGIONAL OFFICE
SINDH REGIONAL OFFICE
KPK REGIONAL OFFICE
BALOCHISTAN
3rd Floor, Building No. 3, Aiwan e Iqbal, Egerton Road
Lahore,
Tel: (042) 111-111-456
Fax: (042)6304926-7
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi. Tel: (021) 111-111-456
Fax: (021) 5610572
Ground Floor
State Life Building
The Mall, Peshawar. Tel: (091) 9213046-47
Fax: (091) 286908
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta. Tel: (081) 831623, 831702
Fax: (081) 831922
September 2013
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Table of Contents
1. DISCLAIMER .......................................................................................................................................... 2 2. PURPOSE OF THE DOCUMENT ......................................................................................................... 3 3. INTRODUCTION TO SMEDA .............................................................................................................. 3 4. INTRODUCTION TO SCHEME ........................................................................................................... 3 5. EXECUTIVE SUMMARY ...................................................................................................................... 4 6. BRIEF DESCRIPTION OF PROJECT & PRODUCT ........................................................................ 4 7. CRITICAL FACTORS ............................................................................................................................ 5 8. INSTALLED & OPERATIONAL CAPACITIES ................................................................................. 5 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT...................................................................... 5 10. POTENTIAL TARGET MARKETS ............................................................................................... 5 11. PROJECT COST SUMMARY ......................................................................................................... 6
11.1. PROJECT ECONOMICS .................................................................................................................................. 6 11.2. PROJECT FINANCING ................................................................................................................................... 6 11.3. PROJECT COST ............................................................................................................................................. 7 11.4. SPACE REQUIREMENT.................................................................................................................................. 7 11.5. MACHINERY AND EQUIPMENT ..................................................................................................................... 8 11.6. RAW MATERIAL REQUIREMENTS ................................................................................................................ 8 11.7. HUMAN RESOURCE REQUIREMENT ............................................................................................................. 9 11.8. REVENUE GENERATION ............................................................................................................................... 9
12. CONTACTS ...................................................................................................................................... 10 13. ANNEXURE ..................................................................................................................................... 11
13.1. INCOME STATEMENT ................................................................................................................................. 11 13.2. BALANCE SHEET ....................................................................................................................................... 12 13.3. STATEMENT OF CASH FLOW ...................................................................................................................... 13 13.4. USEFUL PROJECT MANAGEMENT TIPS ...................................................................................................... 14 13.5. USEFUL LINKS ........................................................................................................................................... 14
14. KEY ASSUMPTIONS ..................................................................................................................... 17
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1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said matter. Although, the material included in this
document is based on data/information gathered from various reliable sources;
however, it is based upon certain assumptions which may differ from case to case. The
information has been provided on as is where is basis without any warranties or
assertions as to the correctness or soundness thereof. Although, due care and diligence
has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ
substantially from the presented information. SMEDA, its employees or agents do not
assume any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. The contained information does not preclude
any further professional advice. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information which is
necessary for making an informed decision, including taking professional advice from a
qualified consultant/technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
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2. PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up, and
production, marketing, finance and business management.
The purpose of this document is to facilitate potential investors in Dairy Farm by
providing them with a general understanding of the business with the intention of
supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and it’s successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form basis of any Investment Decision.
3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs" , SMEDA has carried out ‘sectoral research’ to identify
policy, access to finance, business development services, strategic initiatives and
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a successful hallmark of SME facilitation by SMEDA
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification of
experts and consultants and delivery of need based capacity building programs of
different types in addition to business guidance through help desk services.
4. INTRODUCTION TO SCHEME
Prime Minister’s ‘Small Business Loans Scheme’, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)
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beneficiaries, through designated financial institutions, initially through National Bank of
Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small business loans with tenure upto 7 years, and a debt: equity of 90 : 10 will be
disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber
Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally
Administered Tribal Areas (FATA).
5. EXECUTIVE SUMMARY
Dairy Farm is a project to attract small investors, in which, the 12 cows and buffalos are
raised on specific feed to gain high milk yield. Dairy farming is highly complex as it
includes breeding, management, feeding, housing, disease control and hygienic
production of milk on farm.
A dairy farm with a population of 12 cattle (6 cows and 6 buffalo) need a total
investment estimated at Rs. 2.05 million out of which the capital cost of the project is
Rs.1.95 million for animal purchase and the building construction and the rest is used to
meet the working capital requirement.
The project is expected to achieve the revenue of Rs. 2.00 million in the first year with
projected IRR and Payback of this project are 31% and 3.87 years respectively. The
farm will provide employment opportunity to 01 individual other than the owner
manager.
Legal status of the projected id proposed as a sole proprietorship.
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT
Dairy farming is one of the fast growing businesses in the country which not only meet
the increasing demand of milk in the region but also contribute its part in export and
national income.
Keeping in view the significance of dairy farming, business nature and industry
competition, it is recommended to focus on management and operational aspects of the
farm, quality of herd mix, vaccination of the animals, feeding standards, and housing
system to make the business profitable.
The dairy farm is proposed to be established on purchased farm land and constructed
structure having total area of 3,485 sqft.
The proposed model is about 12 animals (6 cows and 6 buffaloes) to achieve milk
production of 33,288 liters by the end of first year. Milk production will be sold to the
domestic and bulk buyers at the rate of Rs.60 per liter with an annual price increase of
10%.
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7. CRITICAL FACTORS
1. Background knowledge and related experience of the entrepreneur in dairy farm
operations.
2. Selection of cows and buffalos with established minimum daily production of 10
liters or above buffalo and 12 liters or above for cows, certified with no diseases
with 2nd or 3rd lactation
3. Application of good husbandry practices as below
a. Housing and shelter
b. The housing style should be tie stall system
c. Regular vaccine of HS and FMD is necessary
d. Feeding should be done thrice and 10% crude protein (CP) and 1500 kcal
energy
e. Milk should be refrigerated at 4 Oc and transport at 11 Oc temperatures
8. INSTALLED & OPERATIONAL CAPACITIES
Production capacity is based on project size. The feasibility study suggests an initial herd size of twelve (12) animals, which is economical to justify the overhead cost. Initially, herd mix of 50% cows and 50% buffaloes is recommended to get the maximum milk production round the year. The dairy farm will have the capacity to produce 33,288 liters of milk per annum.
The buffalo breeds found in Pakistan are Nili-Ravi and Kundi. The cattle breeds are Sahiwal, Red Sindhi, Tharparkar and Cholistani. The crossbred cattle may be considered also as in Pakistan, crossbreeding is recommended for non-descript cattle breeds with semen of local high producing breeds like Sahiwal, Cholistani, Red Sindhi etc. or exotic breeds like Holstein Friesien, Jersey etc. These crossbred animals have more milk production, less calving interval and early age of maturity as compared to local animals with low genetic potential.
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT
The development of urban and peri-urban commercial dairy farms is something new in
livestock production. Metropolitan cities like Lahore, Karachi, Multan, Rawalpindi,
Peshawar, Noshehra, Hyderabad, Sukkur Gilgit and Quetta etc are the major market of
milk. Hence, dairy farm established in peri-urban areas of these cities fulfils the daily
need of these cities.
10. POTENTIAL TARGET MARKETS
Domestic consumers, milk processors, dairy companies, milk collection companies and
contractors are the major clients of a dairy farm.
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11. PROJECT COST SUMMARY
A detailed financial model has been developed to analyze the commercial viability of
Dairy Farm Project under the Prime Minister’s Small Business Loan Scheme. Various
cost and revenue related assumptions along with results of the analysis are outlined in
this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexure.
11.1. Project Economics
All the figures in this financial model have been calculated for 12 Dairy animals
consisting of cows and buffalos in equal proportion.
The following table shows internal rates of return and payback period.
Table 1: Project Economics
Description Details
Internal Rate of Return (IRR) 31%
Payback Period (Year) 3.87
Returns on the scheme and its profitability are highly dependent on the efficiency of
above mentioned critical factors. In case dairy farm project is not able to attain target
milk production and implement effective husbandry practices, it will not be able to cover
the potential market and recover payments; hence cost of operating the business will
increase. Similarly, the project using good quality and prescribed inputs will essential for
this venture.
11.2. Project Financing
Following table provides details of the equity required and variables related to bank financing;
Table 2: Project Financing
Description Details (Rs.)
Total Equity (10%) 205,699
Bank Loan (90%) 1,851,265
Markup to the Borrower (%age/annum) 8%
Tenure of the Loan (Years) 7
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11.3. Project Cost
Following requirements have been identified for operations of the proposed business.
Table 3: Capital Investment for the Project
Capital Investment Amount (Rs.)
Land 79,752
Building/Infrastructure 210,000
Cows and Buffalos 1,500,000
Machinery & Equipment 66,300
Pre-Operating Costs 100,909
Total Capital Costs 1,956,961
Cash in Hand 100,000
Total Project Cost 2,056,961
11.4. Space Requirement
The area has been calculated on the basis of space requirement for shed area, open
paddock, servant rooms and stores as in conventional open housing system. Following
table shows calculations for project space requirement;
Table 4: Space Requirement
Sr. No Description Area sq.ft
1 Shed for cows 600
2 Open Paddock for Cows 600
3 Shed for Buffalos 600
4 Open Paddock for Buffalos 600
5 Stores for fodder, concentrate & machine room 150
6 Utensils & milk storage 150
7 Servant Room, Wash room 90
8 Silage Bunker 384
9 Open Space 311
Total 3,485
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Total investment in building and infrastructure is calculated to be approximately Rs. 0.21 million.
11.5. Machinery and Equipment
Following table provides list of machinery and equipment required for the proposed
dairy farm;
Table 5: List of Machinery and Equipment
Sr. No Description Unit Rate (Rs.) Qty Cost (Rs.)
1 Calf feeder 1,200 3 3,600
2 Teat Dip Cup 350 2 700
3 Maize Cutter 20,000 1 20,000
4 Water Pump 20,000 1 20,000
5 Freezer 22,000 1 22,000
Total
66,300
In addition to above few other equipment are required, such as fodder cutter, water
pump and some buckets etc.
11.6. Raw Material Requirements
Following tables show raw material requirement to run the proposed dairy farm;
Table 6: Feeding Requirement for Cows
Description Kgs/day/animal Rs./kg Amount (Rs.)
Silage 25.00 6.00 150.00
Concentrate 4.62 35.00 161.70
Total 311.70 Table 7: Feeding Requirement for Buffalo
Description Kgs/animal/day Rs./kg Amount (Rs.)
Silage 25.00 6.00 150.00
Concentrate 5.00 35.00 175.00
Total 325.00
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Table 8: Feeding Requirement of Calves
Description Kgs/animal/day Rs./kg Amount (Rs.)
Buffalo Calf (younger than one year)
Silage 6.6 6.00 39.4
Concentrate 2.2 35.00 120.0
Total Fodder 159.4
Cow Calf (younger than one year)
Silage 2.6 6.00 15.8
Concentrate 0.9 35.00 120.0
Total Fodder 135.8
11.7. Human Resource Requirement
One milk man will be required for milking and care of animals, whereas owner manager will look after the overall business operations.
11.8. Revenue Generation
Table 9: Revenue Generation
Description Units Annual
Production
Rate (Rs./Unit) Annual Revenue
(Rs.)
Milk Sales Liters 33,288 60 1,997,280
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12. CONTACTS
Table 10: Suppliers List
Feed Suppliers AI/ Semen Suppliers
Hi-Tech Feeds,1-A, Shadman Chowk Jail Road, Lahore Phone : +92-42-37564503 Fax : +92-42-37564508 Consultant: Dr. Athar (0345-8444511)
Al - Haiwan Sires, 5-Km, Pakpattan Road, Sahiwal, Tel. 040-4501271-72 Consultant: Dr. Farooq Cell: 03218695054
Punjnad Feeds Dr. Musaddiq Asif 0322 2668844
Altaf & Co. , Altaf & Co Plaza,16/1,Out Fall Road, Lahore, Tel: 042-35763411-4, www.altafandco.com
Doctor’s Dairy Feeds 203/7, UC-3, Cattle colony, Bin Qasim, Karachi. Phone: +92-21-5081923-27
Hamza Dairy Mart Maj.Dr. Muhammad Ramzan 40,first floor,sadiq plaza,the mall Lahore, 0320-4011220
Alhalal Wanda Al-Halal Livestock Concern Company Super High Way Jahania Tel. 065-2002373, 0300 6881293
Ghazi Brothers B-35 KDA Scheme no 1, Mian Muhammad Shah Road, Karachi. Phone: 021-4543579, Fax: 021-4543763
Anmol Wanda Tel. 0442-661252, 04934427066, 057-2213422
ICI Pakistan Cattle Feed 63-Mozang Road Lahore Tel. 042-36370042
Machinery Suppliers Animal Suppliers
Dairy Solution (pvt) Ltd. 177-B, Johar town ,Lahore Ph: 0423-5169450-1, Cell: 0300-8401680 [email protected]
Local Animal Mandies Mandies (c/o Provincial Livestock & Dairy Development Departments) e.g.,Arifwala, Pakpattan, Okara, Sargodha, Gujranwala etc.
Kurdson Industries Sabri Road, Angoori Scheme, Baghbanpura, Lahore 042-36843472
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13. ANNEXURE
13.1. Income Statement
Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue from sale of milk 1,997,280 2,197,008 2,416,709 2,658,380 2,436,848 2,680,533 2,358,869 1,946,067 2,140,674 2,354,741
Other Income - - 72,600 159,720 73,205 161,051 248,019 58,462 128,615 212,215
Total 1,997,280 2,197,008 2,489,309 2,818,100 2,510,053 2,841,584 2,606,887 2,004,528 2,269,289 2,566,956
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cost of sales
Cost of goods sold 1 1,394,373 1,394,373 1,394,373 1,394,373 1,161,978 1,161,978 929,582 697,187 697,187 697,187
Medicine, Vaccination & Insemination Charges 30,600 33,660 37,026 40,729 37,335 41,068 36,140 29,815 32,797 36,077
Operating costs 3 (direct electricity & fuel charges) 120,000 132,000 145,200 159,720 175,692 193,261 212,587 233,846 257,231 282,954
Total cost of sales 1,544,973 1,560,033 1,576,599 1,594,822 1,375,004 1,396,307 1,178,309 960,848 987,214 1,016,217
Gross Profit 452,307 636,975 912,710 1,223,278 1,135,049 1,445,277 1,428,578 1,043,680 1,282,075 1,550,739
General administration & selling expenses
Administration expense 240,000 263,367 289,008 317,147 348,025 381,909 209,546 229,948 252,336 276,903
Depreciation expense 6,630 6,630 6,630 6,630 6,118 6,630 6,630 6,630 6,630 6,630
Amortization of pre-operating costs 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091
Subtotal 256,721 280,088 305,729 333,868 364,233 398,630 226,267 246,669 269,057 293,624
Operating Income 195,586 356,887 606,980 889,410 770,816 1,046,647 1,202,311 797,012 1,013,018 1,257,115
Earnings Before Interest & Taxes 195,586 356,887 606,980 889,410 770,816 1,046,647 1,202,311 797,012 1,013,018 1,257,115
Interest on short term debt 1,533 2,095 562 - - - - - - -
Interest expense on long term debt (Debt facility : Bank 1) 142,025 125,049 106,674 86,784 65,255 41,951 16,726 - - -
Interest expense on long term debt (Debt facility : Bank 2) - - - - - - - - - -
Subtotal 143,558 127,144 107,236 86,784 65,255 41,951 16,726 - - -
Earnings Before Tax 52,028 229,743 499,744 802,626 705,561 1,004,697 1,185,586 797,012 1,013,018 1,257,115
Taxable earnings for the year 52,028 229,743 499,744 802,626 705,561 1,004,697 1,185,586 797,012 1,013,018 1,257,115
Tax - 11,487 49,974 140,460 105,834 210,986 248,973 119,552 212,734 263,994
NET PROFIT/(LOSS) AFTER TAX 52,028 218,256 449,770 662,167 599,727 793,710 936,613 677,460 800,284 993,121
Balance brought forward 52,028 270,285 720,055 691,111 1,290,837 1,042,274 989,443 833,452 816,868
Total profit available for appropriation 52,028 270,285 720,055 1,382,221 1,290,837 2,084,548 1,978,887 1,666,903 1,633,736 1,809,989
Dividend 50% - - - 691,111 - 1,042,274 989,443 833,452 816,868 904,994
Balance carried forward 52,028 270,285 720,055 691,111 1,290,837 1,042,274 989,443 833,452 816,868 904,994
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13.2. Balance Sheet
Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Current assets
Cash & Bank 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420
Total Current Assets 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420
Fixed assets
Land 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752
Building/Infrastructure 210,000 210,000 210,000 210,000 249,930 249,930 249,930 249,930 249,930 249,930 249,930
Animals 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Revaluation Surplus/ (loss) - - (250,000) (250,000) (500,000) (750,000) (750,000) (750,000) (750,000) -
Net value of animals 1,500,000 1,500,000 1,500,000 1,250,000 1,250,000 1,000,000 750,000 750,000 750,000 750,000 1,500,000
Machinery & equipment 66,300 59,670 53,040 46,410 39,268 33,150 26,520 19,890 13,260 6,630 -
Total Fixed Assets 1,856,052 1,849,422 1,842,792 1,586,162 1,618,950 1,362,832 1,106,202 1,099,572 1,092,942 1,086,312 1,829,682
Intangible assets
Pre-operation costs 100,909 90,818 80,727 70,636 60,545 50,454 40,364 30,273 20,182 10,091 -
Total Intangible Assets 100,909 90,818 80,727 70,636 60,545 50,454 40,364 30,273 20,182 10,091 -
TOTAL ASSETS 2,056,961 1,940,240 1,923,519 1,918,342 1,808,098 1,980,952 1,387,365 1,252,272 1,215,832 1,411,982 2,514,102
Current liabilities
Short term debt - 37,187 13,635 - - - - - - - -
Total Current Liabilities - 37,187 13,635 - - - - - - - -
Other liabilities
Deferred tax - 11,487 61,462 201,921 307,755 518,742 767,715 887,266 1,100,000 1,363,994
Long term debt (Debt facility : Bank 1) 1,851,265 1,645,328 1,422,416 1,181,129 919,952 637,246 331,236 - - - -
Long term debt (Debt facility : Bank 2) - - - - - - - - - - -
Total Long Term Liabilities 1,851,265 1,645,328 1,433,904 1,242,591 1,121,874 945,001 849,977 767,715 887,266 1,100,000 1,363,994
Shareholders' equity
Paid-up capital 205,696 205,696 205,696 205,696 245,114 245,114 245,114 245,114 245,114 245,114 245,114
Gain/ (Loss) on revaluation of animals - - (250,000) (250,000) (500,000) (750,000) (750,000) (750,000) (750,000) -
Retained earnings 52,028 270,285 720,055 691,111 1,290,837 1,042,274 989,443 833,452 816,868 904,994
Total Equity 205,696 257,724 475,981 675,751 686,224 1,035,951 537,387 484,557 328,565 311,982 1,150,108
TOTAL CAPITAL AND LIABILITIES 2,056,961 1,940,240 1,923,519 1,918,342 1,808,098 1,980,952 1,387,365 1,252,272 1,215,832 1,411,982 2,514,102
Liabilities & Shareholders' Equity
Assets
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13.3. Statement of Cash Flow
Cash Flow Statement
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activities
Net profit 52,028 218,256 449,770 662,167 599,727 793,710 936,613 677,460 800,284 993,121
Add: depreciation expense 6,630 6,630 6,630 6,630 6,118 6,630 6,630 6,630 6,630 6,630
amortization of pre-operating costs 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091
Deferred income tax - 11,487 49,974 140,460 105,834 210,986 248,973 119,552 212,734 263,994
Cash provided by operations - 68,749 246,464 516,465 819,347 721,769 1,021,417 1,202,307 813,733 1,029,739 1,273,836
Financing activities
Debt facility : Bank 1 - principal repayment (205,936) (222,912) (241,287) (261,177) (282,706) (306,010) (331,236) - - -
Short term debt principal repayment - (37,187) (13,635) - - - - - - -
Additions to Debt facility : Bank 1 1,851,265 - - - - - - - - - -
Issuance of shares 205,696 - - - 39,418 - - - - - -
Purchase of (treasury) shares
Cash provided by / (used for) financing activities 2,056,961 (205,936) (260,099) (254,922) (221,759) (282,706) (306,010) (331,236) - - -
Investing activities
Capital expenditure (1,956,961) - - - (39,418) - - - - - -
Acquisitions
Cash (used for) / provided by investing activities (1,956,961) - - - (39,418) - - - - - -
NET CASH 100,000 (137,187) (13,635) 261,543 558,170 439,063 715,407 871,071 813,733 1,029,739 1,273,836
Cash balance brought forward 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579
Cash available for appropriation 100,000 (37,187) (13,635) 261,543 819,713 567,666 1,283,073 1,111,870 936,160 1,132,447 1,589,415
Dividend - - - 691,111 - 1,042,274 989,443 833,452 816,868 904,994
Cash balance 100,000 (37,187) (13,635) 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420
Cash carried forward 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420
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13.4. Useful Project Management Tips
Management
Knowledge of Business Operation: Background knowledge and
related experience of the entrepreneur is a pre-requisite for starting this
business
Animal Selection: Selection of disease free animals with established
standards of daily production
Quality Assurance Standards: Whatever means required products
quality standards need to be defined, this improves credibility
Marketing
Ads & Point of Sales Promotion: Business promotion and dissemination
through banners and launch events is highly recommended. Product
broachers from good quality service providers
Price - Bulk Discounts, Cost plus Introductory Discounts: Price should
never be allowed to compromise quality. Price during introductory phase may
be lower and used as promotional tool.
13.5. Useful Links
Prime Minister’s Office, www.pmo.gov.pk
Government of Pakistan, www.pakistan.gov.pk
Ministry of Industries & Production, www.moip.gov.pk
Ministry of National Food Security & Research, www.mnfsr.gov.pk
Ministry of Education, Training & Standards in Higher Education,
www.moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
Government of Balochistan, www.balochistan.gov.pk
Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
Government of Azad Jamu Kashmir, www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
Security Commission of Pakistan (SECP), www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
Pre-Feasibility Study Dairy Farming
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15
Punjab Board of Investment & Trade (PBIT), 23-Aikman Road, GOR-I, Lahore
Tel. 042-99205201, www.pbit.gop.pk
Sindh Board of Investment (SBI), 1st Floor, Tower B, Finance & Trade Center,
Shahra-e-Faisal, Karachi, Tel. 021-99207512-4, www.sbi.gos.pk
State Bank of Pakistan (SBP), www.sbp.org.pk
National Bank of Pakistan (NBP), www.nbp.com.pk
First Women Bank Limited (FWBL), www.fwbl.com.pk
Pakistan Agricultural Research Council (PARC), Islamabad, Tel. 051-9203966
www.parc.gov.pk
National Agricultural Research Centre (NARC), Islamabad, Tel. 051-9255061,
www.parc.gov.pk
National Veterinary Laboratory, NARC, Islamabad Tel. 051-9255108
Balochistan Agricultural Research Centre (BARC), Quetta, Tel: 081-9213286-7,
www.parc.gov.pk
Southern-zone Agricultural Research Centre (SARC), Karachi, Tel: 021-
99261661, 99261561, www.parc.gov.pk
Arid Zone Research Institute (AZRI), Bahawalpur, Tel: 0622-876833,
www.parc.gov.pk
Punjab Livestock & Dairy Development Board (PLDDB), 11- Shami Road, Lahore
Cantt. Tel. 042-36676821, www.plddb.pk
Faculty of Animal Husbandry, University of Agriculture, Faisalabad,
www.uaf.edu.pk
Faculty of Veterinary Sciences, University of Agriculture, Faisalabad,
www.uaf.edu.pk
Faculty of Veterinary and Animal Sciences, Lasbela University of Agriculture,
Water & Marine Sciences, Lasbela, www.luawms.edu.pk
Faculty of Veterinary Sciences and Animal Husbandry, Sindh Agriculture
University, Tondojam, www.sau.edu.pk
Gomal College of Veterinary Sciences, Dera Ismail Khan, www.gu.edu.pk
KPK Agricultural University, Peshawar, www.aup.edu.pk
Pir Mehr Ali Shah Arid Agricultural University, Rawalpindi, www.uaar.edu.pk
University College of Veterinary & Animal Sciences, Islamia University
Bahawalpur (IUB), www.iub.edu.pk
University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore,
www.uvas.edu.pk
College of Veterinary & Animal Sciences, Jhang,
www.uvas.edu.pk/other_campuses
Bahauddin Zakariya University (BZU), Multan, www.bzu.edu.pk
Nestle Sarsabz Training Institute, Renala Khurd, Okara c/o Nestle Lahore, Tel:
0423-111-637-853
Pre-Feasibility Study Dairy Farming
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16
Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel. 091-
2960109, 9210309
Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 042-
99220140
Al - Haiwan Sires Training Institute, Jogi Chowk, Sahiwal, Tel. 040-4227196,
4221486, 061-6775708
Altaf & Co Livestock Training Institute, Altaf & Co Plaza,16/1,Out Fall Road,
Lahore, Tel: 042-35763411-4, www.altafandco.com
Solve Agri Pak Ltd, F-6/2, Main Link Road, Model Town, Lahore, Tel: 042-
35969602-3 www.solveagripak.com
Dairy & Rural Development Foundation (DRDF), Lahore,
www.dairyproject.org.pk
Agribusiness Support Fund (ASF), Lahore, www.asf.org.pk
Directorate of Livestock Farms, L&DD, Lahore, Tel: 042-99201126-7
Govt. Livestock Farm (GLF) Kallurkot District Bhakkar, Tel: 0453-200928
Livestock Experiment Station (LES), Rakh Ghulaman, District Bhakkar, Tel:
0453-446134
Livestock Experiment Station (LES), Khizarabad, District Sargodha Tel: 048-
3019835
Research & Development Centre, Rakh Khairewala, District Layyah
Livestock Experiment Station (LES), Khushab Tel: 0454-215543
Directorate of Small Holder Dairy Development, Gujranwala, Tel: 055-9200410-
11, 9200194
Buffalo Research Institute Bhunikey, District Pattoki, Tel: 049-4421887, 4420072
Livestock Experiment Station (LES), Chak Katora District Bahawalpur, Tel: 062-
2442589
Livestock Experiment Station (LES), Haroonabad, District Bahawalnagar, Tel:
063-2252960
Livestock Experiment Station (LES), Dera Chahl Lahore, L&DD, Punjab, Tel:
042-99239818, 99239819
Directorate of BLPRI, Kherimurat (Attock), L&DD, Punjab, Tel: 057-2213422,
2212130, 2210781
Directorate of Small Ruminants, Multan, L&DD, Punjab, Tel: 061-9201311
Research Centre for Conversation Sahiwal Cattle (RCCSC), Jhang, Tel: 047-
9200329, 9200371, www.rccsc.com.pk
Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: 044-
2661393
Livestock Training Centre (LSTC), Sheikhupura, Tel: 056-9200056
Livestock & Fisheries Department, Government of Sindh, www.sindh.gov.pk
Pre-Feasibility Study Dairy Farming
September 2013
17
Agriculture & Livestock Department, Government of KPK,
www.khyberpakhtunkhwa.gov.pk
Cattle Breeding & Dairy Farm, Harichand, District Charsadda, KPK, Tel: 091-
6640187
Buffalo Breeding & Dairy Farm, D.I.Khan, KPK, Tel: 0966-923150
Livestock Research Station, Jaba, Mansehra, (Jaba Sheep and Goat Farm), Tel:
0997-301866
Livestock & Dairy Development, Government of Balochistan,
www.balochistan.gov.pk
Government Dairy Farm Quetta, Tel: 081-9202564
Bhagnari Cattle Cum Balochi Sheep Farm Usta Muhammad, Dera Allah Yar c/o
L&DD Quetta, Tel: 081-9202564
Red Sindhi Cattle Farm Hub, Lasbela c/o L&DD Quetta, Tel: 081-9202564
Govt. Feed Mill Quetta c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Pishin c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Nushki c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Zhob c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Loralai c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Kohlu c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Khuzdar c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Kalat c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Mastung c/o L&DD Quetta, Tel: 081-9202564
District Government Dairy Farm, Panjgoor c/o L&DD Quetta, Tel: 081-9202564
14. KEY ASSUMPTIONS
Milk Sale Price (cow) Rs. 60
Milk Sale Price (buffalo) Rs. 60
Capacity Utilization 100
Cow: Buffalo Ratio in the Herd 50:50
Purchase Price of a Cow (Rs.) 130,000
Purchase Price of a Buffalo (Rs.) 120,000
Sale Price of a Low Yielder cow (Rs.) 50,000
Sale Price of a Low Yielder buffalo (Rs.) 50,000
Sale Price of one year Male Calf (Rs.) 50,000
Milk Yield per Cow/day (liters) 12
Milk Yield per Buffalo/day (liters) 8