Small Scale Dairy business

Plan

Muhammad Ashar
Sagheer Ahmad
 Introduction
• The objective of the pre-feasibility study
is primarily to facilitate entrepreneurs
in project identification for investment.
• Prime Minister’s ‘Youth Business Loan’,
for young entrepreneurs, with an allocated
budget of Rs. 5.0 Billion for the year
2013-14, is designed to provide subsidized
financing at 8% mark-up per annum.
 Introduction… …

•Mixed Farming System

•Milk Production:
Cows: 80%
Buffaloes:20%
•Buffalo breeds: Murrah and crossbreds, local
breeds
•Cattle breeds: Jersey, H.F., crossbreds and
local breeds
 Brief Description of Project

•No. of animals: 12
•Buffaloes=2, Cows=10
•Estimated Capital required= 2.01 million
•Assumed that at 10th year of business herd
will increase to 50 animals keeping mortality
rate at 5%.
 Brief Description of Project….
The proposed dairy farm would be established on leased land with purpose
built shed constructed on conventional housing system. The farm would start
the operations with12 animals (10 cows and 2 buffaloes having daily per
animal milk production of 13 and 8 litres respectively) to achieve milk production
of 34,560 liters by the end of first year, excluding the milk consumed by suckling
calves. The breeding of animals would be planned through ‘Artificial
Insemination’ method. Female calves would be given special attention and
raised as heifers and male calves would be sold for fattening purpose.
The milk will be primarily sold to bulk buyers at the rate of average Rs.60
per liter. The farm will also offer milk sale to domestic individual consumers.
 Uniqueness

• Background knowledge and related experience of the entrepreneur in dairy

farm operations.
• Application of good husbandry practices such as timely feeding, watering
and vaccination to ensure animal’s health and disease-free environment.
• Awareness about the supply and demand of milk in the market as demand of
milk is relatively higher in summer as compared to winter season
 Geographical Potential for
Investment

• Dairy farming is a viable business proposition for both rural and

peri-urban areas of Pakistan.
• There is almost equal demand for milk in rural and peri urban areas
around the major cities.
• Project offers good investment opportunities for small scale I
investment in all provinces of country.
 Potential Target Market

The target clients for a dairy farm business

include; domestic consumers, milk contractors
and suppliers, milk collection and processing
companies and dairy products manufacturing
companies.
 Dairy Production Process

• Selection of good dairy buffalo breeds namely, Nili-Ravi and Kundi and cattle
breeds such as Sahiwal, Red Sindhi and Cholistani.
• Average daily milk production of 8 liters or above for buffaloes and 12 liters
or above for cows in 2nd or 3rd lactation, essentially with no disease history.
• Good housing leads to good management practices and ultimately
optimum production.
 Dairy Production Process-Feeding

Milking 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. Green fodder should be supplied @ 8-10% of body
weight to the animals. Additionally, urea molasses blocks and salt blocks can
help in better milk production. New born calves should be fed colostrum and
milk @ 8-10% of body weight for first month of age.
 Dairy Production Process-Disease
Management

• The animals should be ear-tagged having information of animal

such as breed, age, date of birth / purchase, number of lactations, vaccination etc.
the records for daily milk yields, weight, Artificial Inseminations (AI), calving,
vaccination and medication etc. are also important.
• De-worming for endoparasitic infestations is necessary in
calves born at farm. Timely vaccination against infectious diseases should be
done as a prophylactic measure
 Project Cost Summary

Following table shows the operational requirements identified for the proposed
Business:
 Future Expansion Potential

• Will build a bird farm as side business as well

as source of attraction for children.
• Will provide live surveillance to the customers if
they require.
• Expand business to finished dairy products and
specified products tin future.
Thank you