Pre-Feasibility Study

(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 Complex, Egerton Road, Lahore Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7

helpdesk@smeda.org.pk
REGIONAL OFFICE Punjab 3rd Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042) 36304926-7 helpdesk.punjab@smeda.org.pk REGIONAL OFFICE Sindh 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 35610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE Khyber Pakhtunkhwa Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 111-111-456 Fax: (091) 5286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE Balochistan Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 2831623, 2831702 Fax: (081) 2831922 helpdesk-qta@smeda.org.pk

Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost December, 2013

Pre-Feasibility Study

Dairy Farming

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 ..................................................................................................................................... 4 8. INSTALLED & OPERATIONAL CAPACITIES .......................................................................................... 5 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT............................................................................... 6 10. POTENTIAL TARGET MARKETS ........................................................................................................ 6 11. PROJECT COST SUMMARY .................................................................................................................. 6 11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7. 11.8. 12. 13. 13.1. 13.2. 13.3. 13.4. 13.5. 14. PROJECT ECONOMICS ................................................................................................................................ 6 PROJECT FINANCING ................................................................................................................................. 7 PROJECT COST........................................................................................................................................... 7 SPACE REQUIREMENT................................................................................................................................ 7 MACHINERY AND EQUIPMENT ................................................................................................................... 8 RAW MATERIAL REQUIREMENT ................................................................................................................ 9 HUMAN RESOURCE REQUIREMENT ........................................................................................................... 9 REVENUE GENERATION ............................................................................................................................. 9 CONTACTS OF CONSULTANTS AND SUPPLIERS ......................................................................... 10 ANNEXURE .............................................................................................................................................. 11 INCOME STATEMENT ............................................................................................................................... 11 BALANCE SHEET ..................................................................................................................................... 12 STATEMENT OF CASH FLOW .................................................................................................................... 13 USEFUL PROJECT MANAGEMENT TIPS .................................................................................................... 14 USEFUL LINKS ......................................................................................................................................... 14 KEY ASSUMPTIONS .............................................................................................................................. 17

Pre-Feasibility Study

Dairy Farming

1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general idea and information on the subject. 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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Pre-Feasibility Study

Dairy Farming

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, 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 its 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 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 Ministers Youth Business Loan, for young entrepreneurs, with an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide subsidised
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Dairy Farming

financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially by the National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL). Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of 1 year grace period, and a debt: equity of 90: 10 will be disbursed to SME beneficiaries+ across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).

5. EXECUTIVE SUMMARY
Dairy Farm Project pre-feasibility has been developed to attract small investors. Twelve animals (6 cows and 6 buffaloes) are raised on specific feed to gain high milk yields. Dairy farming business involves housing, breeding, feeding, watering, disease control and hygienic production of milk on farm. A dairy farm with a herd of 12 animals (6 cows and 6 buffaloes) needs a total investment estimated at Rs. 2.06 million out of which the capital cost of the project is Rs.1.96 million for animal purchase and building construction. The rest is used to meet the working capital requirement. The project is expected to achieve revenue of Rs. 2.10 million in the first year with projected IRR and Payback of project being 34% and 3.54 years respectively. The farm will provide employment opportunity to 01 individual other than the owner / manager. Legal status of the project is proposed as sole proprietorship.

6. BRIEF DESCRIPTION OF PROJECT & PRODUCT

A dairy farm is proposed to be established on a rented land, with a constructed structure having total area of 3,174 sq.ft. The proposed model involves 12 animals (6 cows and 6 buffaloes) to achieve milk production of 35,040 liters by the end of first year. Milk will be primarily sold to bulk buyers at the rate of Rs.60 per liter with an annual price increase of 10%. However, the farm will also offer sale to domestic individual consumers.

7. CRITICAL FACTORS
1. Background knowledge and related experience of the entrepreneur in dairy farm operations. 2. Application of good husbandry practices such as; Selection of dairy breed: good local dairy buffalo breeds namely Nili-Ravi and Kundi and cattle breeds such as Sahiwal, Red Sindhi, Tharparkar and Cholistani. Crossbred cattle may also be considered as
4

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crossbreeding is recommended for non-descript cattle with semen of local high producing breeds like Sahiwal, Cholistani, Red Sindhi etc. or exotic breeds like Holstein Friesian, Jersey etc. Selection of good dairy animals with excellent body condition and udder health: average daily milk production of 10 liters or above for buffaloes and 12 liters or above for cows in 2nd or 3rd lactation, essentially with no disease history. Housing should be dry, comfortable and airy with proper drainage of dung, urine and waste material. Feeding: Animal should be fed 1 kg of concentrate feed per 3 litres of milk produced, hence animal with 10 litres of milk production would be offered 3-3.5 kg of concentrate. Additionally, urea molasses blocks and salt blocks can help in better milk production. Watering: Supply of clean drinking water in clean troughs i.e. 50 to 80 liters of water consumption/animal/day round the clock maintains the milk production capacity of the animal. Breeding: Efficient and timely Artificial Insemination (AI) of good genetic worth is a key to success in good breeding programs of herd. Disease management: Hygienic and clean milking twice a day (morning/ evening) lowers the chances of mastitis as udder health and hygiene is most important in dairy animals. Follow the recommended vaccination schedule especially for Foot and Mouth Disease. Female calf care and heifer management as it is very important in maintaining dairy farm production. Selection of good productive animals and culling of uneconomical animal. Record keeping for milk production, calving, AI, vaccination etc. Proper storage of milk preferably at temperature of 4 Oc and transported at 11 Oc temperatures.

8. INSTALLED & OPERATIONAL CAPACITIES

Production capacity is based on project size. The Pre-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 obtain maximum milk production round the year. The dairy farm will have the capacity to produce 35,040 liters of milk per annum.

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Pre-Feasibility Study

Dairy Farming

9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

Dairy farm is a viable business proposition for both rural and peri-urban areas of Pakistan. There is almost equal demand for milk in both developed and semideveloped cities across the country, hence, from the demand point of view the said project offers good investment opportunities for small scale investment in all provinces of country.

10.

POTENTIAL TARGET MARKETS

Domestic consumers, milk processors, dairy companies, milk collection companies and contractors are the major clients of dairy farms.

11.

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of dairy farm project under the Prime Ministers Youth Business Loan. 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 the 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 Internal Rate of Return (IRR) Payback Period (Year) NPV Details 34% 3.54 Rs. 3,631,914

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 its target milk production or 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.

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Pre-Feasibility Study

Dairy Farming

11.2.

Project Financing

Following table provides details of the equity required and variables related to bank financing; Table 2: Project Financing Description Total Equity (10%) Bank Loan (90%) Markup to the Borrower (%age/annum) Tenure of the Loan (Years) Grace Period (Years) Details (Rs.) 205,696 1,851,265 8% 8 1

11.3.

Project Cost
Table 3: Capital Investment for the Project Capital Investment Amount (Rs.) 79,752 210,000 1,500,000 66,300 100,909 1,956,961 100,000 2,056,961

Following operational requirements have been identified for the proposed business.

Land Building/Infrastructure Cows and Buffalos Machinery & Equipment Pre-Operating Costs Total Capital Costs Cash in Hand Total Project Cost

11.4.

Space Requirement

The area has been calculated on the basis of space requirement for shed area, open paddock, servant rooms and stores. Following table shows calculations for project space requirement;

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Pre-Feasibility Study

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Table 4: Space Requirement Description Shed for Cows Open Paddock for Cows Shed for Buffalos Open Paddock for Buffalos Stores for Fodder, Concentrate & Machine Utensils & Milk Storage Servant Room, Washroom Silage Bunker Total Area Sq.ft 600 600 600 600 150 150 90 384 3174

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 Description Calf Feeder Teat Dip Cup Maize Cutter Water Pump Freezer Total Unit Rate (Rs.) 1,200 350 20,000 20,000 22,000 Qty 3 2 1 1 1 Cost (Rs.) 3,600 700 20,000 20,000 22,000 66,300

In addition to above, other equipment, such as fodder cutter, water pump and some buckets etc. are required.

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Pre-Feasibility Study

Dairy Farming

11.6.

Raw Material Requirement

Following tables show raw material requirement to run the proposed dairy farm; Table 6: Feeding Requirements for Cows Kgs per animal per day Rs per Kg Amount (Rs.) 25.00 4.62 6.00 35.00 150.00 161.70 311.70 Table 7: Feeding Requirements for Buffaloes Description Kgs per animal per day Rs per Kg Silage Concentrate Total 25.00 5.00 6.00 35.00 Amount (Rs.) 150.00 175.00 325.00

Description Silage Concentrate Total

11.7.

Human Resource Requirement

One milkman will be required for milking and taking care of animals, whereas owner / manager will look after the overall business operations.

11.8.

Revenue Generation
Table 8: Revenue Generation

Description Milk Sales

Units Liters

Annual Production 35,040

Rate (Rs/Unit) 60

Annual Revenue (Rs) 2,102,400

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Pre-Feasibility Study

Dairy Farming

12.

CONTACTS OF CONSULTANTS AND SUPPLIERS

Table 8: List of Consultants and Suppliers Consultants

Dr. M. Sarwar Dean, Faculty of Animal Husbandry University of Agriculture, Faisalabad Ph: +92-41-9920161-70 Dr. Muhammad Abdullah Dean, Faculty of Animal Production University of Veterinary & Animal Sciences, Lahore Ph: 042 - 99211374

Consultants Prof. Dr. Muhammad Younas Department of Livestock Management Faculty of Animal Husbandry University of Agriculture Faisalabad, Pakistan Ph: 041-9200161-170 Dr. Nawaz Saeed Director General (Extension) Livestock & Dairy Development Department (L&DD), Govt. Of Punjab, 16Cooper Road, Lahore, Ph: 042-99201117 AI / Semen Suppliers Al - Haiwan Sires, 5-Km, Pakpattan Road, Sahiwal, Tel. 040-4501271-72

Feed Suppliers Hi-Tech Feeds,1-A, Shadman Chowk Jail Road, Lahore Phone : +92-42-37564503 Fax : +92-42-37564508 Doctors Dairy Feeds 203/7, UC-3, Cattle colony, Bin Qasim, Karachi. Phone: +92-21-5081923-27

Altaf & Co. , Altaf & Co Plaza,16/1,Out Fall Road, Lahore, Tel: 042-35763411-4, www.altafandco.com

Alhalal Wanda Al-Halal Livestock Concern Company Super High Way Jahania Tel. 065-2002373 ICI Pakistan Cattle Feed 63-Mozang Road Lahore Tel. 042-36370042 Machinery Suppliers Kurdson Industries Sabri Road, Angoori Scheme, Baghbanpura, Lahore 042-36843472

Ghazi Brothers B-35 KDA Scheme no 1, Mian Muhammad Shah Road, Karachi. Phone: 021-4543579, Fax: 021-4543763

Animal Suppliers Local Animal Mandies (c/o Provincial Livestock & Dairy Development Departments) e.g.,Arifwala, Pakpattan, Okara, Sargodha, Gujranwala etc.

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13.

ANNEXURE Income Statement

Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 2 Year 3 3,215,645 3,697,992 2,796,213 3,064,259 3,523,898 3,241,986 3,197,488 2,417,760 2,780,424 2,102,400 128,615 212,215 58,462 73,205 161,051 248,019 159,720 72,600 3,344,260 3,910,207 2,854,674 3,137,464 3,684,949 3,490,005 3,357,208 2,102,400 2,417,760 2,853,024 1,394,373 30,600 120,000 1,544,973 557,427 1,533,810 37,026 132,000 1,702,836 714,924 1,687,191 44,801 145,200 1,877,193 975,831 1,855,910 54,210 159,720 2,069,840 1,287,367 1,701,251 54,662 175,692 1,931,605 1,205,859 1,871,376 66,140 193,261 2,130,778 1,554,171 1,646,811 64,024 212,587 1,923,422 1,566,582 1,358,619 58,102 233,846 1,650,567 1,204,107 1,494,481 70,303 257,231 1,822,015 1,522,245 1,643,929 85,067 282,954 2,011,950 1,898,257

13.1.
Income Statement

Revenue from sale of milk Other Income Total Cost of sales Cost of goods sold 1 Medicine, Vaccination & Insemination Charges Operating costs 3 (direct electricity & fuel charges) Total cost of sales Gross Profit General administration & selling expenses Administration expense Depreciation expense Amortization of pre-operating costs Subtotal Operating Income Earnings Before Interest & Taxes Interest on short term debt Interest expense on long term debt (Debt facility : Bank 1) Interest expense on long term debt (Debt facility : Bank 2) Subtotal Earnings Before Tax Taxable earnings for the year Tax NET PROFIT/(LOSS) AFTER TAX

240,000 6,630 10,091 256,721 300,706 300,706 153,654 153,654 147,052 147,052 147,052

264,000 6,630 10,091 280,721 434,203 434,203 140,672 140,672 293,531 293,531 293,531

290,400 6,630 10,091 307,121 668,710 668,710 123,609 123,609 545,101 545,101 14,510 530,591

319,440 6,630 10,091 336,161 951,206 951,206 105,130 105,130 846,077 846,077 49,411 796,665

351,384 6,118 10,091 367,592 838,267 838,267 85,117 85,117 753,150 753,150 35,472 717,678

386,522 6,630 10,091 403,243 1,150,927 1,150,927 63,443 63,443 1,087,485 1,087,485 85,623 1,001,862

425,175 6,630 10,091 441,896 1,124,687 1,124,687 39,970 39,970 1,084,717 1,084,717 85,207 999,509

467,692 6,630 10,091 484,413 719,694 719,694 14,549 14,549 705,146 705,146 30,515 674,631

514,461 6,630 10,091 531,182 991,063 991,063 991,063 991,063 71,159 919,904

565,907 6,630 10,091 582,628 1,315,629 1,315,629 1,315,629 1,315,629 119,844 1,195,785

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13.2.
Balance Sheet

Balance Sheet
Year 0 Assets Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Current assets Cash & Bank Total Current Assets Fixed assets Land Building/Infrastructure Animals Revaluation Surplus/ (loss) Net value of animals Machinery & equipment Total Fixed Assets Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Total Current Liabilities Other liabilities Deferred tax Long term debt (Debt facility : Bank 1) Long term debt (Debt facility : Bank 2) Total Long Term Liabilities Shareholders' equity Paid-up capital Gain/ (Loss) on revaluation of animals Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES

100,000 100,000

263,773 263,773

368,446 368,446

707,627 707,627

1,329,304 1,329,304

1,837,528 1,837,528

2,658,926 2,658,926

3,454,083 3,454,083

3,844,248 3,844,248

4,852,032 4,852,032

6,184,381 6,184,381

79,752 210,000 1,500,000 1,500,000 66,300 1,856,052

79,752 210,000 1,500,000 1,500,000 59,670 1,849,422

79,752 210,000 1,500,000 1,500,000 53,040 1,842,792

79,752 210,000 1,500,000 (250,000) 1,250,000 46,410 1,586,162

79,752 249,930 1,500,000 (250,000) 1,250,000 39,268 1,618,950

79,752 249,930 1,500,000 (500,000) 1,000,000 33,150 1,362,832

79,752 249,930 1,500,000 (750,000) 750,000 26,520 1,106,202

79,752 249,930 1,500,000 (750,000) 750,000 19,890 1,099,572

79,752 249,930 1,500,000 (750,000) 750,000 13,260 1,092,942

79,752 249,930 1,500,000 (750,000) 750,000 6,630 1,086,312

79,752 249,930 1,500,000 1,500,000 1,829,682

100,909 100,909 2,056,961

90,818 90,818 2,204,013

80,727 80,727 2,291,965

70,636 70,636 2,364,425

60,545 60,545 3,008,799

50,454 50,454 3,250,815

40,364 40,364 3,805,492

30,273 30,273 4,583,928

20,182 20,182 4,957,372

10,091 10,091 5,948,435

8,014,063

1,851,265 1,851,265

1,851,265 1,851,265

1,645,686 1,645,686

14,510 1,423,044 1,437,555

63,922 1,181,924 1,245,845

99,394 920,790 1,020,184

185,016 637,982 822,999

270,224 331,702 601,925

300,738 300,738

371,898 371,898

491,742 491,742

205,696

205,696 2,056,961

205,696 147,052 352,748 2,204,013

205,696 440,583 646,279 2,291,965

205,696 (250,000) 971,174 926,870 2,364,425

245,114 (250,000) 1,767,840 1,762,953 3,008,799

245,114 (500,000) 2,485,517 2,230,631 3,250,815

245,114 (750,000) 3,487,379 2,982,493 3,805,492

245,114 (750,000) 4,486,889 3,982,002 4,583,928

245,114 (750,000) 5,161,520 4,656,633 4,957,372

245,114 (750,000) 6,081,423 5,576,537 5,948,435

245,114 7,277,208 7,522,322 8,014,063

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13.3.

Statement of Cash Flow

Year 0 Year 1 147,052 6,630 10,091 163,773 Year 2 293,531 6,630 10,091 310,252 Year 3 530,591 6,630 10,091 14,510 561,822 Year 4 796,665 6,630 10,091 49,411 862,798 Year 5 717,678 6,118 10,091 35,472 769,358 Year 6 1,001,862 6,630 10,091 85,623 1,104,206 Year 7 999,509 6,630 10,091 85,207 1,101,437 Year 8 674,631 6,630 10,091 30,515 721,866 Year 9 919,904 6,630 10,091 71,159 1,007,784 Year 10 1,195,785 6,630 10,091 119,844 1,332,350

Cash Flow Statement

Operating activities Net profit Add: depreciation expense amortization of pre-operating costs amortization of training costs Deferred income tax Raw material inventory Cash provided by operations Financing activities Debt facility : Bank 1 - principal repayment Issuance of shares Purchase of (treasury) shares Cash provided by / (used for) financing activities Capital expenditure Cash (used for) / provided by investing activities NET CASH

205,696 2,056,961 (1,956,961) (1,956,961) 100,000

163,773

(205,579) (205,579) 104,673

(222,642) (222,642) 339,181

(241,121) 39,418 (201,703) (39,418) (39,418) 621,677

(261,134) (261,134) 508,225

(282,808) (282,808) 821,398

(306,281) (306,281) 795,157

(331,702) (331,702) 390,165

1,007,784

1,332,350

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13.4.

Useful Project Management Tips

Management Knowledge of Business Operation: Background knowledge and related experience of the entrepreneur is an advantage for starting this business.

Marketing 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 a promotional tool.

13.5.

Useful Links

Prime Ministers 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 Jammu & Kashmir, www.ajk.gov.pk Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.pk Federation of Pakistan Chambers of Commerce and Industry (FPCCI) www.fpcci.com.pk 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
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Dairy Farming

Balochistan Agricultural Research Centre (BARC), Quetta, Tel: 0819213286-7, www.parc.gov.pk Southern-zone Agricultural Research Centre (SARC), Karachi, Tel: 02199261661, 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 Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel. 0912960109, 9210309 Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 04299220140 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: 04235969602-3 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
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Pre-Feasibility Study

Dairy Farming

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: 0483019835 Research & Development Centre, Rakh Khairewala, District Layyah Livestock Experiment Station (LES), Khushab Tel: 0454-215543 Directorate of Small Holder Dairy Development, Gujranwala, Tel: 055-920041011, 9200194 Buffalo Research Institute Bhunikey, District Pattoki, Tel: 049-4421887, 4420072 Livestock Experiment Station (LES), Chak Katora District Bahawalpur, Tel: 0622442589 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 Conservation of Sahiwal Cattle (RCCSC), Jhang, Tel: 0479200329, 9200371, www.rccsc.com.pk Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: 0442661393 Livestock Training Centre (LSTC), Sheikhupura, Tel: 056-9200056 Livestock & Fisheries Department, Government of Sindh, www.sindh.gov.pk Agriculture & Livestock Department, Government of KPK, www.khyberpakhtunkhwa.gov.pk Cattle Breeding & Dairy Farm, Harichand, District Charsadda, KPK, Tel: 0916640187 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
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Pre-Feasibility Study

Dairy Farming

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
60 60 100 50:50 130,000 120,000 50,000 50,000 50,000 12 8

Milk Sale Price (cow) Rs. Milk Sale Price (buffalo) Rs. Capacity Utilization (%) Cow: Buffalo Ratio in the Herd Purchase Price of a Cow (Rs.) Purchase Price of a Buffalo (Rs.) Sale Price of a Low Yielder cow (Rs.) Sale Price of a Low Yielder buffalo (Rs.) Sale Price of one year Male Calf (Rs.) Milk Yield per Cow / day (liters) Milk Yield per Buffalo / day (liters)

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