This document provides details on a proposed dairy farm project called Exon Dairy located in Sahiwal, Pakistan. The summary is:
1) Exon Dairy is an existing dairy farm seeking a grant to expand operations with new equipment and machinery.
2) The grant of $25,000 would cover 50% of the $50,000 needed for items like a biogas plant, tractor, silage making machine, and CCTV system to improve efficiency.
3) The goals of the project are to strengthen smallholder dairy farmers, create jobs, and serve as a model dairy farm to promote best practices to other local farmers.
This document provides details on a proposed dairy farm project called Exon Dairy located in Sahiwal, Pakistan. The summary is:
1) Exon Dairy is an existing dairy farm seeking a grant to expand operations with new equipment and machinery.
2) The grant of $25,000 would cover 50% of the $50,000 needed for items like a biogas plant, tractor, silage making machine, and CCTV system to improve efficiency.
3) The goals of the project are to strengthen smallholder dairy farmers, create jobs, and serve as a model dairy farm to promote best practices to other local farmers.
This document provides details on a proposed dairy farm project called Exon Dairy located in Sahiwal, Pakistan. The summary is:
1) Exon Dairy is an existing dairy farm seeking a grant to expand operations with new equipment and machinery.
2) The grant of $25,000 would cover 50% of the $50,000 needed for items like a biogas plant, tractor, silage making machine, and CCTV system to improve efficiency.
3) The goals of the project are to strengthen smallholder dairy farmers, create jobs, and serve as a model dairy farm to promote best practices to other local farmers.
1. GENERAL INFORMATION 3 2. EXECUTIVE SUMMARY 4 3. PROJECT DESCRIPTION 5 4. PROJECT BACKGROUND & FOCUS 6 5. PROJECT GOAL AND RELEVANCE TO ASF/ UAP OBJECTIVES 7 6. MEASURABLE PROJECT OBJECTIVES / MILESTONES AND KEY ACTIVITIES 8 7. PROJECT IMPLEMENTATION & SUSTAINABILITY METHODOLOGY 9 8. POTENTIAL PROJECT BENEFICIARIES 10 9. TENTATIVE BUDGET 11 MANAGEMENT ERROR! BOOKMARK NOT DEFINED. THREE YEAR DATA AT A GLANCE ERROR! BOOKMARK NOT DEFINED.
Page 3 of16 1. GENERAL INFORMATION
a. Name of the applicant: Exon Dairy Farm b. Type of Entity Partnership Firm: c. Name of head of the organization Jawad H. Shirazi d. Postal address: House # 2o, Street # 6, Lane V, Cavalry Ext. Lahore. e. Office phone numbers - landline: 042-36675631 f. Fax: g. Email: abbas203@hotmail.com jawadshirazi@gmail.com h. Website: N/A i. Key contact person Jawad H. Shirazi j. Cell number of the key contact person 0300-8446659
Page 4 of 16 2. EXECUTIVE SUMMARY
Please provide concise summary of the proposed project in not more than one page
EXON Dairy is located in District Sahiwal just around 10 kilometers away from the main city. The project started in 2009 and its current herd size comprises of 100 cross breed animals all locally procured with 50% productive heads. From the inception it sells all the milk produced to the Nestle Pakistan Ltd. The project has gone through a learning curve of three eventful years of dairy farming experience and the first breed of heifers is now calving on the farm.
Total envisaged cost needed for the addition of machinery/ equipments is US $ 50,000 and 50% share ie US $ 25,000 is sought as grant to achieve the objective. We expect a considerable improvement in efficiency by incurring the following mini project costs.
Serial # Detail of Project Costs Efficiency Impact
1
Bio Gas Plant In the current state of affairs 12-16 hours load shedding is a big issue. Bio Gas plant of 8-10 kVA will improve energy efficiency and reduce energy bill
2
Tractor Need to add 375 model. Will help in cultivation and silage pressing. Currently we have to rent 375 tractor when needed 3 Silage Making Machine Currently renting from NPL, renting cost is high and timely availability is always an issue 4 Wanda Machine 500 Kg capacity commercial production and sale to other farmers 5 IP based CCTV Camera with UPS Remote monitoring will help improve management 6 Plough & Rotavator Needed for land preparation 7 Solar Light with pole Will help /improve night operations. (12-16 hours load shedding) 8 Dumper Trolley Will help in saving labor costs 9 Computer & Recording Software A standard recording system will help a lot in data analysis and decision support system
Page 5 of 16 3. PROJECT DESCRIPTION
a) Project Title: Exon Dairy b) Duration (months): 3 Years 2 months (years in operation) c) Project Location: Sahiwal d) Sector: Dairy e) Profile & Prior Experience of the project team: Mr. Abbas Sajjad (Partner)
Mr. Abbas Sajjad inherited the agriculture related experience from the agro related background and has been experiencing progressing farming techniques on an inherited land situated in Sahiwal. At the start of his career he worked for Punjab Local Government Department as Assistant Engineer for two years. He also had experience of managing medium sized construction related projects privately. By qualification, he is a bachelor in the discipline of civil engineering from University of Engineering & Technology Lahore and an MBA from Lahore University of Management Sciences. He has been associated with Atlas Group since 1993 and served in various capacities in Atlas Investment Bank Atlas Honda Limited Atlas Capital Markets and Atlas Asset Management and acquired deep insight in the areas of equity & money market brokerage, mutual funds industry, investment banking, treasury and portfolio Management, product development and risk management.
Mr. Jawad H. Shirazi (Partner)
Mr. Jawad H. Shirazi besides having practical experience of progressive agriculture farming specially horticulture, ventured into diverse fields such as commercial dairy farming, temperature controlled poultry farming and plastic industry through manufacturing of packaging solutions to the food industry. He is a young, enthusiastic entrepreneur with full of innovative ideas and has been able to set up and grow his small business ventures to a sizeable scale in a short span of time. He is a bachelor in economics from the University of Punjab and has extensively traveled abroad to gain multicultural experience. He has an exposure of zero grazing farming methods in Netherland with the help of PUM Netherland.
Mr. Nadeem Ahmad Gillani (CEO)
Mr. Nadeem Ahmad Gillani has more than 15 years of experience of running diverse business interests such as distribution of FMCG products, wooden and laminate flooring solutions and readymade garments industry. He had been responsible as the project in charge for setting up the entire dairy project from erection of the structure
Page 6 of 16 to make it fully productive and operational. He is also responsible for the day to day operations of the dairy farm, liaison with the consultants and ensuring the use of best practices.
Mr. Abid Ali (Farm Manager)
Mr. Abid Ali is the farm manager. His online graduation is in progress from Allama Iqbal Open University. He has got training of A.I from VTI Institute Sheikupura and DVAM from Al Noor Institute Faisalabad. Has got experience of working in Milk Supplier & MT from Nestle Pakistan from 2003 to 2010. He has got diploma In Information Technology from GDC Pattoki and versed with computer skills like M/S excel, word and Power point.
Mr. Mudassar Farid Chishti (Veterinarian)
Mr. Mudassar Farid Chishti has more than 10 years of hands on experience in Veterinary Field Works and Artificial Insemination. He is qualified from University of Veterinary & Animal Sciences, Lahore and has also been associated with Pakistan Rural Support Program in Multan for a community development program. He is responsible for the animal health, timely vaccinations and inseminations to help breed optimal output pedigrees.
4. PROJECT BACKGROUND & FOCUS
Briefly describe, in not more than one page, the situation/circumstances which have led to the need to develop the proposed project and how it will add value.
Exon Farm was constructed by consulting Pakistan Dairy Development Company (PDDC) with the objective and vision to establish a model dairy farm in the area. As PDDC limited its operations in last two years due to budgetary constraints we sought help from PUMS Netherland experts for help and guidance for learning the trait and were associated with an expert who paid a two week visit in early 2011. Subsequently one of the sponsors from Exon Dairy also visited Netherland to have an exposure of modern dairy farming practices in vogue. The project costs covered in this EOI were strongly recommended by PUM Experts and management also feels that this would greatly help the project operation for longer term sustainability goals.
Page 7 of16 5. PROJECT GOAL AND RELEVANCE TO ASF/ UAP OBJECTIVES
Describe, in not more than half a page, the overall goal of the project and how it is in accordance with ASF objectives. Also briefly explain what will be the short and long-term impacts of the project on agri economy?
Overall Goals of the Project:
1. To strengthen the capacity of smallholders by sharing best practices and providing assistance to smallholders operate autonomously and efficiently.
2. To create employment in the farming sector and to create awareness and promote standard practices of dairy farming through a profitable commercial venture, and thus contribute the national economy.
3. To run Exon Dairy as a model hi-tech dairy farm to promote dairy farming among the farmers of adjoining area and to create awareness of use of latest dairy management practices such as mechanized milking, Silage Fodders, artificial inseminations techniques, computerized record maintenance, Bio Gas, Solar energy purpose built housing for cow comfort etc.
Alignment with ASF Objectives:
Bio Gas
Installation of a 8-10 KVA Bio Gas Plant will help address the energy needs of the farm and also benefit the workers of the farms residing in their dwelling next to the farm. Energy shortfall in the country is causing a load shedding of 12 to 16 hours a day and severely damaging the farm efficiency. The current appliances on farm requiring uninterrupted electricity are light bulbs, cooling fans, computer, refrigerator, water pump, chilling unit, milking machine, fodder cutter and tube well. Running all these on diesel generation is not cost effective and having a Bio Gas Set up will not only ensure availability of electricity but also a reduction of energy bill by 25 to 30 %.
An additional side benefit is that the waste, following the burning of the methane it releases, can be used as fertilizer for agricultural crops. By converting existing tube well operation from WAPDA to Bio Gas consistent supply of irrigation water will be ensured for the farm land and besides surrounding farmers will also benefit greatly facing water shortage due to load shedding.
Excess Biogas will be provided to farm workers who are living in the vicinity. Biogas, being a clean source of domestic energy is socially acceptable to the communities as it will replace the dirty and socially non-acceptable sources of domestic energy like cow dung cakes, fuel-wood that emits smokes and cause indoor pollution; the root cause of tuberculoses.
Page 8 of16
Women folk have to rely on wood or cow dung cakes for the household fuel needs not only involving manual labor but also are exposed to health and hygiene problems. Provision of biogas right inside their kitchen will greatly solve their problems and relieve them from such agonies. Thus women folk can concentrate on other household activities and their health and indoor environment will greatly improve.
Commercial Production and sale of Concentrate (Wanda)
Within the surrounding radius of 25-30 kms of Exon Dairy farm, there are approximately 50 60 small dairy farmer set ups with the herd size ranging from 5 -50. and sell milk to Gawalas or processing companies like Nestle Pakistan, Engro Foods etc. The key objective of setting up Wanda Making Facility is to provide quality wanda to the smallholders at affordable cost.
Short and long-term impacts of the project on agri economy:
In the shorter term the project efficiency will be improved giving more room for expansion. The workers on the farm will benefit from bio gas installation. The surrounding farmers will benefit from the availability of excess water by the Exon Farms Tube well operating on bio source during load shedding hours.
In the longer term Exon Dairys management vision is to establish a dairy training centre offering short term on farm trainings to teach best dairy farming practices for the small to medium sized farm. The sponsors hail from the eldest lineage of shirazi family clan and feel obligated to undertake projects for the social benefits of the people of their ancestral village comprising of 4,000 plus people. A land area has already been earmarked for this centre. (Future vision)
6. MEASURABLE PROJECT OBJECTIVES / MILESTONES AND KEY ACTIVITIES
Please briefly mention all project objectives with key activities to achieve these objectives.
All the Project deliverables will be implemented within 3 months from the date of approval of the project.
Provide, in not more than one & half page, a well-articulated implementation methodology with special focus on community involvement in the design and implementation of proposed project, mechanism for procurement of goods & services, conflict resolution, systematic flow of activities, data management and monitoring etc.). Also provide information on projects self sustainability after support from external sources cease to exist.
The project is already operational for the last 3 years and the management has the capability to implement the deliverables in a professional way. The implementation methodology will be divided in the following work stages.
Work Stage Procurement Quotations from different sources for the required equipments will be obtained and selection of the equipment will be done based on the requirements commensurate with the Exon farms scale of operation. This may take 2-3 weeks.
Work Stage Installation This time frame would be required for the items requiring the installation period such as Bio Gas setup, installation of solar light with pole and installation of a computer software program for record keeping. This stage will take 3-4 weeks.
Work stage Implementation This stage would include systemic implementation of management processes to make most of the project costs.
The project is already sustainable, however with a low ROI. By incurring the above costs its efficiencies will improve substantially and a room for fast track expansion will be created. The projects profitability improvement will help make a case for securing commercial loaning by retaining its viability.
Page 10 of16 8. POTENTIAL PROJECT BENEFICIARIES
Please provide details, in not more than half a page, on potential beneficiaries (number of people benefiting, gender balance, new jobs creation, increase in household income, improvement in skills of existing workers, etc.)
Following persons are directly involved with the project.
1 Mr. Abbas Sajjad Project Sponsor 2 Mr. Jawad H. Shirazi Project Sponsor 3 Mr. Nadeem Gillani Incharge Over all operations 4 Mr. Abid Hussain Farm Manager 5 Mr. Muddasar Chishti Vet nary Doctor 6 Mr. Pehalwan Sipra In charge land cultivation 7 Mr. Yousaf Worker 8 Mr. Usman Baba Watchman 9 Mr. Saeed Wattoo Worker 10 Mr. Zahoor Sipra Tractor Driver 11 Mr. Allah ditta Sipra Worker 12 Mr. Allah Wadhaya Worker 13 Mr. Allah Bakh Worker 14 Mr. Habib Worker 15 Mr. Shahbaz Pehalwan Worker 16 Mr. Sajid Ali Worker
1. Farmers in the vicinity will be benefitted by buying Wanda from the Exon set up of commercial production of Wanda.
2. In Future the training centre will be set up from which the local farmers will benefit out of the trainings.
3. The Bio gas sourced tube well will be able to irrigate surrounding farmers lands.
4. The workers households adjacent to the farm will benefit from the bio gas for their cooking needs.
5. The silage making machine will be rented to the surrounding dairy farmers.
Page 11 of16
9. TENTATIVE BUDGET
Please attach a brief breakdown of the cost or tentative budget in Pak rupees (PKR). This is an essential part of the EOI. The tentative budget can be presented on the following format:
Detail of Project Costs Rs. (M) Efficiency Impact
Bio Gas Plant
1.00 In the current state of affairs 12-16 hours load shedding is a big issue. Bio Gas plant of 8-10 kVA will improve energy efficiency and reduce energy bill Tractor 1.40 Need to add 375 model. Will help in cultivation and silage pressing. Currently we have to rent 375 tractor when needed Silage Making Machine 0.60 Currently renting from NPL, renting cost is high and timely availability is always an issue Wanda Machine 0.60 500 Kg capacity commercial production and sale to other farmers IP based CCTV Camera with UPS 0.20 Remote monitoring will help improve management Plough & Rotavator 0.20 Needed for land preparation Solar Light with pole 0.25 Will help /improve night operations. (12-16 hours load shedding) Dumper Trolley 0.25 Will help in saving labor costs Computer & Recording Software 0.30 A standard recording system will help a lot in data analysis and decision support system Total 4.80
Project Cost in $ 50,000 $
PKR/US$ PKR 96/1US$
We understand that available funding share under subject grant category is 15,000 $, yet we would appreciate that if our case is considered for 25,000 $ grant as envisaged in total project costs described above.
In case we are limited to a smaller amount, we will need to prioritize the above project costs for optimum results.
Page 12 of16 EXON DAIRY PROFILE
In the first year fifty cows were procured with the help of Rachna Live Stock and Dairy Development Services (RLDS). Later when our team had the experience of animal selection we started procuring animals ourselves. After culling, buying of new animals and on farm additions the herd size has grown to 100 animals currently.
Exon Dairy has a farm land of 80 acres all located in close vicinity of Qutubshahana road, chak Bahadarshah 58 GD, Tehsil & District Sahiwal. Out of this land 35 acres is exclusively dedicated to the dairy farms fodder needs. As the farm will grow the plan is to convert all the available land for growing fodders for dairy farming.
Infrastructure:
Shed Areas: The total area encompassed by the boundary is 30,000 sq ft while the covered shed areas for the main shed and calf shed are 7,500 sq. ft. The main shed is constructed by a pre cast roofing system with a 12 ft wide central feeding alley and on each side there is a 15 ft wide covered sheds with brick and C.C flooring. The length of main roof covered shed is 150 ft. On both sides there are rest areas which are regularly maintained with sandy soil. Milking Parlor: A four station milking parlor is made on one end of the shed and a four cluster milking machine with bucket system sourced by De Laval is used for milking. Silage Bunkers: Two silage bunkers each of (LXWXH=90X30X6) ft size with cc floor and brick walls This helps In consistent supply of feed throughout the changing weathers in addition to the green fodders cultivated on the farm land.
Calf Shed: A calf shed of size (25X25 ft) with thatched roofs on column pipes with paved brick floor.
Managers Office: A small office of size(9X 12 ft) for the farm manager
Cooling Tank/Chiller Room: A tiled room for chiller of 500 L capacity
Generator Room: A small room adjacent to chiller room for 12 KVA generator
Store: A store for stocking Wanda/ concentrates and other materials
Shed for Fodder Cutter : A shed where fodder cutter is installed for labor