A Project To Empower The Rural Poor of Pakistan

Presented By, Muhammad Hadi Operations Manager Jassar Farms (Pvt.) Ltd.

Jassar Farms

Table of Contents

Importance of Milk Production

Dairy Industry Structure Productivity Gap- Milk Production

Productivity Gap- Meat Production

Farm Sustainability Cycle Local Genetic Resources Livestock Semen in Pakistan- Market and Demand Sizing Quality of Current Genetics in Pakistan

Table of Contents- Contd.

Jassar Farms Project Brief

Semen Processing Unit Dairy Division

Social Impact

Importance of Milk Production in Pakistans Economy & Society

30 35 million people in Pakistan are engaged in Livestock rearing

(Economic Survey of Pakistan)

35 to 40% of the total income of these families comes from livestock

(Economic Survey of Pakistan)

During 2008 09, Pakistan produced a total of 42 billion liters of milk worth US$ 18 billion (at retail price of Rs 35 / liter). In view of this the country is the 4th / 5th largest producer of milk in the world yet it is a net importer. In terms of retail value, milk produced in the country is more than 11% of the countrys total GDP (US$ 165 billion - CIA Fact book) Milk production has created millions of jobs in production, collection, processing & distribution.

Dairy Industry Structure

Total herd size is 62.9 million animals Average number of animals per household is less than 3 More than 90% farmers are small producers

Average daily milk production per animal is less than 4 liters as opposed to 33 liters per day for the developed world
On the average, 8 Pakistani milk producing animals are equal to 1 animal of the developed world.

Low yields & small average herd sizes have resulted in sub-subsistence level living for millions of people in Pakistan

Productivity Gap Milk Production

Unlike the developed world, research & development on local breeds has been marginal over the past 6 decades
Animal Milk Yield Comparison Breed Ravi-Nilli Kundi Dhanni Red Sindhi Sahiwal Cholistani Jassar Farms F1 Israeli Holstein US Holstein US Jersey Category Buffalo Buffalo Cow Cow Cow Cow Cow Cow Cow Cow Origin Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Israel US US Milk Yield Per Lactation (Liters) 1,700 1,700 1,250 1,600 1,800 1,500 4,000 12,500 10,500 8,000

Productivity Gap Meat Production

Meat production is an important byproduct of dairy farming In 2009, Pakistan produced 2.88 MT meat, dairy animals contributed 48% of total meat produced Exotic beef breeds are more suitable for meat production
Origin Buffalo South Asia Sahiwal South Asia Angus England Hereford England Charolais France
Weight at Birth (Kg) 32 23 31 33 35 ADG (Kg/Day) 0.5 0.6 1.38 1.37 1.59 Slaughter Weight (Kg) 550 450 580 600 600

Meat Production

Poultry 20% Mutton 32%

Beef 48%

Maturity Period (Months) 35 24 13 14 12

Improving animals productivity is vital for uplifting the dairy and beef industry

Farm Sustainability Cycle

Pricing & Profitability Core Drivers

Nutrition & Farm Management Practices

Farmer Profitability & Re-investment Cycle

Animal genetic potential Access to credit Supporting Drivers Industry / Academia Linkages Human Resource Availability External Support Cycle

Institutional Support Framework

Local Genetic Resources... Pakistani Sahiwal & Cholistani Cattle Issue

Sahiwal & Cholistani cattle breeds are amongst the most hardy & extreme weather tolerant animals in the world
Dairy farmers in Central Punjab, South Punjab & Upper Sind mostly have these types of breeds because of their high temperature tolerance Although breed yield averages are around 1,750 liters but there are animals with milk production potential of over 30 liters per day

These elite animals are available in very small numbers and held by private individuals around the country
It is unfortunate but no concerted effort has been undertaken to develop these breeds & thus they are withering away

Local Genetic Resources... Pakistani Buffalo Issue

With 29.9 million animals, nearly 48% of Pakistans total milking herd producing 64% of the countrys milk requirement is the buffalo
With high maintenance cost and low milk production, this animal offers negative returns to its owners currently This animal is least researched upon yet much talked about by Academia & Government Although breed yield averages are around 1,700 liters but there are animals with milk production potential of over 25 liters per day Since this is a local animal, there is no imported semen available for genetic up-gradation

Genetic Up-gradation Livestock Semen In Pakistan - Market & Demand Sizing

Total Herd * 29,900,000 33,000,000 62,900,000 Females @ 55% 16,445,000 18,150,000 34,595,000 Total Doses Needed 32,890,000 36,300,000 69,190,000 32,890,000 2,100,000 200,000 2,300,000 7.0% 36,300,000 Marginal Very Poor

Buffalo Cattle / Cows Total Buffalo Semen Requirement

Quality of Available Semen

Buffalo Semen Available: - Public Sector Production - Private Cottage Industry Production - Imported Semen Total Available Artificial Insemination Rate Cattle Semen Requirement

Cattle Semen Available: - Public Sector Production 400,000 Poor - Private Cottage Industry Production 200,000 Very Poor - Imported Semen** 1,000,000 Acceptable Total Available 1,600,000 Artificial Insemination Rate 4.4% * Source: Economic Survey of Pakistan 2008 - 09 ** Imported cattle semen is mostly being supplied to the public sector or to the large progressive farmers by the importers / distributors as selected few can afford it

Genetic Up-gradation What Are The Pakistani Dairy Farmers Current Options

With just 6% semen availability, Pakistani farmers use natural service for their animals 94% of the times A cursory evaluation of the 6% available semen will reveal:

Government produced semen is priced at Rs 35 to 65 per dose but has marginal to very poor quality Private cottage industry produced semen is priced at Rs 50 to 250 per dose but has very poor quality Imported semen is only for cattle & not buffalos and is priced prohibitively at Rs 300 (for acceptable quality) to upwards of Rs 8,000 (for top quality)

Locally produced semen is of marginal quality while high quality imported semen is beyond affordability hence artificial insemination rate is only 6 %

Dairy and Breed Improvement Project

Jassar Farms (Pvt.) Ltd.

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Jassar Farms Project Brief

Sustainable Development:

About 2/3 of Pakistan comprises of rural areas and development has been marginal and uneven Jassar Farms business model seeks to achieve economic and social returns at the same time

Projects Partners:

Jassar Farm has partnered with Acumen Fund in an embryo transfer program to bring in world class genetics in Pakistan Acumen Fund is a USA based social impact venture capital fund that only takes equity positions in projects that have a social significance and economic sustainability.

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Project Brief Semen Processing Unit

Semen Division Objectives

Produce elite bulls through embryo transfer for semen processing unit The processing unit will produce world class semen for dairy and beef animals locally for onward sale to poor farmers at affordable rates

Key Achievements

Produced progenies of worlds best dairy animals As of May 2011, 8 male & 5 female calf births have taken place (this is the highest number of animals produced through imported embryos in Pakistan) Team will be fully equipped technically to flush, produce & transfer embryos locally in 2011

Semen Division 18th February, 2010 A Landmark Day For Pakistani Dairy Industry
Donor Dam Glory 18,191 3.8% 3.1%

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JFH-Savior

Milk (kg) Fat (% ) Protein (%)

Service Sire World Ranking (2010)

Alexander 54

Surrogate Mother
Date of birth Breed Sex Weight at Birth

Sahiwal
18-Feb-10 Holstein Male 40 kg

Pakistani Farmers will have access to elite American genetics for genetically upgrading their animals

Semen Division Jassar Farms Excels in Cattle Genetics

JFH-Ambassador

Donor Dam Milk (Kg) Fat (% ) Protein (%) Service Sire World Ranking (2011)

Valence 18,036 3.5 3.2 Picston Shottle 1

Surrogate Mother Date of birth Breed Sex Weight at Birth (Kg)

Friesian Cross 28-Feb-11 Holstein Male 43

Jassar Farm is at forefront of cattle genetics in Pakistan

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Project Brief Dairy Division

Dairy Division Objective

Use world class semen to obtain high yielding progeny from local animals Build awareness about genetic up-gradation & its advantages The dairy unit will ensure financial sustainability of the project till semen unit establishes its market

Key Achievements

Only farm in Pakistan that uses exclusively sexed semen

Using world class semen, by end of May 2011, Jassar Farms has successfully produced more than 375 cross breeds animals (i.e. F1s & R1) from local cows

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Dairy Division First Generation Crossbreed (F1)

In April 2010, First F1 joined the milking herd Confirmation of the genetic potential of F1

Local Animals US Jersey Breed F1 Cross Breed

Age at First Lactation (months) Milk Per day (liters) Lactation Yield (liters) 48 4.6 1,400 25 27 8,500 25 13.3 4,050

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Dairy Division Jassar Farms F1s

Pakistani dairy farmers can expect to get 200% to 300% increase in milk production

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Social Impact Incremental Income of an F1

Incremental Revenue From A Female Calf
Base Herd / Mother Cow's Production Avg Milk Yield / Lactation / Cow (In Liters) Domestic Consumption In Liters (over the lactation) Milk Available For Sale (liters) Average Selling Price (Rs) 1,500 1,000 500 30 Using Livestock Department Semen 2,000 1,000 1,000 30 Using JFPL Semen 4,000 1,000 3,000 30 90,000 60,000 2,000 1 Calving Incremental Gain (using JFPL semen)* 2,000

Total Revenue Generated (Rs) 15,000 30,000 * Note: There is a 50% chance of a female calf being born

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Thank You
supporting the dairy industry through superior genetics can lead to a social
& economic soft revolution in the country on an economically sustained basis.