Dairy Farm Feasibility

Pre-Feasibility Study

ENVIORNMENTALLY CONTROLLED DAIRY FARM
(50 AMERICAN COWS)

Small and Medium Enterprises Development Authority
Government of Pakistan www.smeda.org.pk HEAD OFFICE
6th Floor LDA Plaza Egerton Road, Lahore Tel [phone], Fax [phone] [e-mail] REGIONAL OFFICE PUNJAB REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: [phone] Fax: [phone] [e-mail] REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: [phone] Fax: [phone] [e-mail] REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: [phone], 831702 Fax: [phone] [e-mail]

8 th Floor, LDA Plaza, Lahore, Tel: [phone] Fax: [phone] [e-mail]

June, 2010

Pre-Feasibility Stud

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1 EXECUTIVE SUMMARY ...................................................................................................................... 4 2 INTRODUCTION TO SMEDA .............................................................................................................. 5 3 PURPOSE OF THE DOCUMENT......................................................................................................... 5 4 CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT........................... 6 4.1 4.2 4.3 4.4 STRENGTHS ........................................................................................................................................... 6 WEAKNESSES ........................................................................................................................................ 6 OPPORTUNITIES .................................................................................................................................... 6 THREATS ............................................................................................................................................... 7

5 MARKET POTENTIAL.......................................................................................................................... 7 5.1 5.2 WHITE REVOLUTION ............................................................................................................................. 9 HIGH DOMESTIC DEMAND ..................................................................................................................... 9

6 MARKET ENTRY TIMINGS................................................................................................................. 9 6.1 6.2 6.3 6.4 6.5 PROPOSED BUSINESS LEGAL STATUS .................................................................................................... 9 PROPOSED CAPACITY ............................................................................................................................ 9 PROJECT INVESTMENT ........................................................................................................................ 10 PROPOSED LOCATION ......................................................................................................................... 10 KEY SUCCESS FACTORS / PRACTICAL TIPS FOR SUCCESS ................................................................... 11

7 SECTOR & INDUSTRY ANALYSIS .................................................................................................. 11 7.1 MAJOR PLAYERS ................................................................................................................................. 11

8 MARKET INFORMATION ................................................................................................................. 12 8.1 8.2 8.3 SECTOR CHARACTERISTICS ................................................................................................................. 12 TARGET CUSTOMERS .......................................................................................................................... 12 PAKISTAN’S FIRST ENVIRONMENTAL CONTROLLED DAIRY FARM........................................................ 13

9 LAND....................................................................................................................................................... 15 9.1 9.2 9.3 LAND REQUIREMENT .......................................................................................................................... 15 SUITABLE LOCATIONS ........................................................................................................................ 15 ANIMAL HOUSING............................................................................................................................... 15

10 FARM MACHINERY............................................................................................................................ 16 11 ANIMAL CHARACTERISTICS.......................................................................................................... 17 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 HERD MIX ...................................................................................................................................... 17 BREEDS OF CROSS BRED AND EXOTIC (BOS TAURUS) .................................................................... 17 ANIMAL MARKETS ......................................................................................................................... 17 FEED .............................................................................................................................................. 17 MINERAL MIXTURE ........................................................................................................................ 18 FODDER CROP ................................................................................................................................ 18 DAILY FODDER REQUIREMENT ...................................................................................................... 18 WHEAT STRAW (BHUSA OR TURI).................................................................................................. 18 MEDICATION .................................................................................................................................. 19 VACCINATION & MEDICINE ........................................................................................................... 19 ARTIFICIAL INSEMINATION (AI) CHARGES ..................................................................................... 19 LABOR REQUIREMENT ................................................................................................................... 19

12 FARM OUTPUT .................................................................................................................................... 20 12.1 LACTATION PERIOD ....................................................................................................................... 20 1

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12.2 12.3 12.4 12.5 12.6 12.7 12.8

MILK COMPOSITION ....................................................................................................................... 20 BREEDING STOCK DEVELOPMENT .................................................................................................. 20 INCREASE IN MILK YIELD .............................................................................................................. 20 SALE PRICE .................................................................................................................................... 20 EVENING MILK............................................................................................................................... 20 FARM REVENUES ........................................................................................................................... 21 MALE CALVES ............................................................................................................................... 21

11 FINANCIAL ANALYSIS ...................................................................................................................... 22 11.1 11.2 11.3 11.4 11.5 INCOME STATEMENT ...................................................................................................................... 22 BALANCE SHEET STATEMENT ........................................................................................................ 23 CASH FLOW STATEMENT ............................................................................................................... 24 SELLING ASSUMPTIONS .................................................................................................................. 25 PRODUCTION ASSUMPTIONS .......................................................................................................... 26

12 KEY ASSUMPTIONS............................................................................................................................ 27 13 ANNEXURES ......................................................................................................................................... 28

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DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. 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 does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information he/she feels necessary for making an informed decision. For more information on services offered by SMEDA, please contact our website: www.smeda.org.pk

DOCUMENT CONTROL
Document No. Revision Prepared by Issue Date Issued By PREF- 17 4 SMEDA-Punjab June, 2010 Library Officer

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1

EXECUTIVE SUMMARY

The Environmental Controlled dairy Farm is a project of livestock sector, in which, the 50 American Holstein are raised on specific feed to produce milk on high efficiency in order to serve the milk industry of Pakistan. The entire specific requirement will be met by operations of temperature control through heavy duty ventilation fans, good feeding and animal milking processes, which will be monitored by the concerned staff. Dairy farming in controlled environment is a profitable business due to continuous increasing demand of milk in the market.

Dairy farming is not an organized sector in Pakistan. More than 90% of farming is done on subsistence level. There are very few progressive farmers, which are running the business of dairy farming in a professional manner. Milk processing was started in late 1970s, which is still facing challenges due to competition with the unprocessed milk. The processed milk has captured only 4% of the total milk market. Processed milk is not the consumer's preference due to high price differential. There are 28 milk-processing plants in the country, which were installed in mid 1980s to promote usage of processed milk. Most of these milk plants are closed due to lack of professional management, inadequate milk supply and poor marketing campaign of the processed milk. Dairy farming is highly complex as it includes breeding, management, feeding, housing, disease control and hygienic production of milk on farm. The judicial use of means and resources to achieve clearly defined goals is the key success factor in modern dairy farming i.e. the art of maximization and optimal utilization of resources and means for maximizing productivity and profits.
An Environmentally Controlled dairy House with a population of 50 American Holsteins need a total investment estimated at Rs. 24,436,042 out of which the capital cost of the project is Rs. 23,128,267 for purchasing the animals and constructing the building and the rest is used to meet the working capital requirement. Projected IRR and Payback of this project are 52% and 3.19 years respectively.

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2

INTRODUCTION TO SMEDA

The Small and Medium Enterprises Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME support program. Since its inception in October 1998, SMEDA had adopted a sectoral SME development approach. A few priority sectors were selected on the criterion of SME presence. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. The all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including finance, marketing, technology and human resource development. SMEDA has so far successfully formulated strategies for sectors including, horticulture, marble and granite, gems and jewelry, marine fisheries, leather and footwear, textiles, surgical instruments, transport, dairy, etc. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation. Along with the sectoral focus a broad spectrum of business development services is also offered to the SMEs by SMEDA. These services include identification of viable business opportunities for potential SME investors. In order to facilitate these investors, SMEDA provides business guidance through its help desk services as well as development of project specific documents. These documents consist of information required to make well-researched investment decisions. Pre-feasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way. This document is in the continuation of this effort to enable potential investors to make well-informed investment decisions.

3

PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs to facilitate investment and provide an overview about dairy and livestock farming. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document covers various aspects of dairy and livestock concept development, start-up, production, finance and business management. The document also provides sectoral information, brief on government policies and international scenario, which have some bearing on the project itself. This particular pre-feasibility is regarding “Dairy Farm” which comes under “Agriculture and Livestock” sector. Before studying the whole document one must consider following critical aspects, which form the basis of any investment decision.

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4

CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT

Dairy production is all-inclusive activity, related to animal care, reproduction, feeding, and management. It is defined as all those aspects and activities relating to rising of dairy animals during their various phases of life to get wholesome milk. Before making the decision, whether to invest in the dairy and livestock farming or not, one should carefully analyze the associated risk factors. A SWOT analysis can help in analyzing these factors, which can play important role in making the decision. 4.1 • • • • • • • • 4.2 • • • • • • • • • • • • • • 4.3 • • • • Strengths Back bone and main stay of economy. Provides raw material for food & Leather industry. Major source of food, i.e. Milk & Meat Source of Farmyard Manure (FYM). Sizeable foreign exchanges earning through exports. Wide scope of Milk Production, ranking 5th in the world. Ample human resource employment sector. Stationed, Permanently located secured loaning sector. Huge demand and supply gap in dairy sector Weaknesses Lack of appropriate knowledge, research extension Lack of commercially viable breeds of animal Lack of education and initiative in farmer, traditional approach due to lack of skills and management. Unorganized sector, unaware of basic farm management practices. Remote area, lack of farm to market approach & transportation. Non-availability of communication services. Lack of farm/ market infrastructures & marketing information. Lack of record keeping on farm. No or low application of research work and pedigree record keeping. Management of dairy farm is a challenging job. Nutrition is still a problem hampering the livestock productivity in general and milk production in particular Enormous production losses due to endemic diseases every year. Low yield of local cows. Non availability of international level dairy institute. Opportunities Govt. of Pakistan & Sate Bank of Pakistan priority sector. Dairy products needs are 30% higher than supply. Commercially viable sector with great credit potential and absorption capacity. Vast range of area of operation, more needs and scope of development.
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• • • • 4.4 • • • • • • • • • • •

Value added dairy products are in demand. Massive migration of labor to cities can be checked / stopped. Corporate financing will become a niche in lending market. Cooperatives can play a big role for development in dairy sector like India, Australia and United States Threats Implementation of WTO will result in open & competitive commodity pricing. Due to fear of default, banker community has reluctance for lending loans. Defective and unorganized markets. Imbalance between prices of inputs & outputs. Rising trend of cost of production with higher rate of interest as compared to profit ratio. Lack of media projection, non-recognition of problems and monopoly of multinationals. Lack of community organizations and out dated farm practices. Lack of coordination towards common causes & goals. Lack of awareness about economics, demand & supply in market. Low saving, low holding capacity. Increasing level of poverty. Non-availability of subsidy, tax holidays.

5

MARKET POTENTIAL

Livestock plays an important role in the economy of the country. Livestock sector contributed approximately 51.8 percent of the agriculture value added and 11.3 percent to national GDP during 2008-09.Gross value addition of livestock at current cost factor has increased form Rs. 1,052 billion (2007-08) to Rs. 1,287 billion (2008-09) showing an increase of 22.3 %. The value of livestock is 6.1% more than the combined value of major and minor crops. Government gives high priority to its development and is focused on private sector led development of livestock. Underpinning the importance of livestock, the government has placed livestock on national development agenda. It has formulated “Livestock Development Policy” and “Poultry Development Policy”. Both policies are aimed at private sector led development of livestock with Government providing enabling environment. The policies would provide a frame work for accelerated development of livestock.1 To spearhead the development efforts through private sector, fully autonomous private sector-led, “Livestock and Dairy Development Board” and “Pakistan Dairy Development Company” have been established. These companies are serving as platform for investment in livestock sector. Apart form provincial Government programs, the federal government has substantially increased public sector investment in livestock sector and has initiated mega projects to the tune of Rs. 7.1 billion for strengthening livestock services for improved disease diagnosis & control; milk and meat production; breed improvement;

1

Source: Economic Survey of Pakistan 2008-09 7

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animal husbandry and management practices in the country. The livestock population for the last three years is given below:2

In view of the importance of livestock in the economy as well as in the life of a common man, the Government is trying by all means to fix priorities to increase production of milk, meat and poultry to meet rising domestic demand of ever increasing population and produce exportable surplus as well. The major products of livestock are milk and meat, the production of which for last three years is given below:3

2 3

Source: Economic Survey of Pakistan 2008-09 Source: Economic Survey of Pakistan 2008-09 8

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5.1

White Revolution4

Under the White Revolution Scheme, two Strategic Partnership Agreements have been executed between ZTBL and M/S Nestle Pakistan Limited and M/s Pakistan Dairy Development Company. Under this participatory approach, dairy sector would be modernized with a view to increase milk supply, mitigate poverty and improve the living standard of the rural population. The Bank has earmarked funds to the tune of Rs. 5,000 million for financing of 50,000 animals (imported cows) during the five years period (2007-2011). M/s. Nestle Pakistan would help to select and identify good clients for the Bank to improve quality breed of foreign and local dairy animals. Technical guidance would be provided to the farmers through Nestle Veterinary Doctors. The Company would purchase milk through its network and make weekly payment of milk sale to the Bank for the adjustment of loan. M/s Pakistan Dairy Development Company will also help the Bank in the selection of clients and processing of loan cases. Initially the scheme will be for modernization of 5,000 farms during 5 years period involving Rs 700 million. Under the scheme 1,000 farms would be covered on yearly basis. There would be maximum loan limit of Rs 1.0 million per borrower/party. 5.2 • • • • • • High domestic demand Irrigable land in Pakistan –20 million hectares Fodder cultivated in 2.8 million hectares, i.e. only 14% Fodder yield very low -24 Tones/hectare (Australia approx 70 Tones/hectare) Largest irrigation network in the world Animal herd 47million heads, though average size 3 head Cheap farm labor, though unskilled

Pakistan: 169 million people, high milk consuming tradition

6

MARKET ENTRY TIMINGS

The demand of milk in summer is high as compared to winter. That’s why the animals in summer are sold at a bit higher prices as compared to winter. So the proposed business can be started before the onset of summer season. 6.1 Proposed Business Legal Status

The proposed legal structure of the business entity is either sole proprietorship or partnership. Although selection totally depends upon the choice of the entrepreneur but this financial feasibility is based on Sole Proprietorship. 6.2 Proposed Capacity

The feasibility study suggests an initial herd size of 50 American Cows, which is economical to justify the overhead cost. The farm size will increase to approximately 250 cows within 10 years time. Herd mix of 100% cows is recommended to get the maximum milk production round the year.
4

Source: Economic Survey 2008-09 9

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6.3

Project Investment

The total cost of the project is Rs. 24,436,042 out of which the capital cost of the project is Rs. 23,128,267 for purchasing the animals and constructing the building and the rest is used to meet the working capital requirement. Table 6-1 Project Costs (Rs) Account Head Capital Cost Land (4 acres) Building/Infrastructure Animals Machinery & equipment Pre-operating costs Total Capital Cost Working capital Land lease for fodder Raw material Inventory Cash in hand Total Working Capital Total Project Cost

Total Cost (Rs) 4,000,000 2,640,267 15,000,000 1,218,000 270,000 23,128,267 165,000 992,775 150,000 1,307,775 24,436,042

The proposed pre-feasibility is based on the assumption of 50:50 debt equity ratio. However this composition of debt and equity can be changed as per the requirement of the investor. Table 6-2 Project Financing Debt Equity Total project Investment Table 6-3 Project Economics Viability IRR (%) NPV (Rs) Pay Back Period (year) 6.4 Proposed Location 50% 50% 12,218,021 12,218,021 24,436,042

Equity 60% 56,752,246 3.33

Project 52% 68,998,470 3.19

The development of urban or semi-urban commercial dairy farms is something new in livestock production. Metropolitan cities like Lahore, Karachi, Multan, Rawalpindi, etc are the major markets of milk. Hence, dairy farms established in semi-urban areas of these cities fulfill the daily need of these cities.

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6.5

Key Success Factors / Practical Tips for Success

Commercial dairy farmers depend on land, labor and animals as the major resources. The thrust in modern dairy farming is on the increased use of capital and management. Successful dairy farming harnesses all available resources into productive and profitable unit. Dairy farming is highly complex as it includes breeding, management, feeding, housing, disease control and hygienic production of milk on farm. The judicial use of means and resources to achieve clearly defined goals is the key success factor in modern dairy farming i.e. the art of maximization and optimal utilization of resources and means for maximizing productivity and profits. The low yielder animals are uneconomical less then the annual average to keep, hence these should be culled. The over all genetic improvement of all the dairy animals is necessary for improved milk production. It involves milking records at equal intervals, selection of bull from high producing mothers, progeny testing of breeding bull and then making extensive use of these bulls by well-organized Artificial Insemination (AI) program. Feeding dairy animals on nutritious and high yielding hybrid varieties of forages can be adopted. The surplus forage should be preserved as silage or hay. Other farm management practices include feeding for growth, lactation, pregnancy or maintenance, hygienic milk production, comfortable and ventilated barns, spraying/ wallowing of animals in summer, timely detection of heated, mating, with selected bull or AI service. If animals are bred within the 60-90 days of calving provided with clean surroundings, drinking water and feed according to the requirements, the over all performance of herd can be improved. Timely vaccination against BVP, Black Quarter, Foot and Mouth Disease, Brucellosis along with the prevention of mastitis and parasitic control will also improve the over all performance of dairy herd. Hygienic milk can be produced by the clean and healthy animals through milking parlor. .

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7.1

SECTOR & INDUSTRY ANALYSIS
Major Players

Dairy farming is not an organized sector in Pakistan. More than 90% of farming is done on subsistence level. There are very few progressive farmers, which are running the business of dairy farming in a professional manner. Milk processing was started in late 1970s, which is still facing challenges due to competition with the unprocessed milk. The processed milk has captured only 4% of the total milk market. Processed milk is not the consumer's preference due to high price differential. There are 28 milk-processing plants in the country, which were installed in mid 1980s to promote usage of processed milk. Most of these milk plants are closed due to lack of professional management, inadequate milk supply and poor marketing campaign of the processed milk.

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Table 7-1 Project

Milk Processing Plants currently in operation Products Location Milk powder/ butter UHT milk /Ghee Pasteurized milk/yogurt Pasteurization milk/UHT UHT milk, milk powder Millack Pasteurization milk Olper Milk Good Milk Prema Milk Fresh Farm milk Anmol Milk Fresh Milk Bhalwal-Sarghodha Sheikupura & Kabir Wala Manga-Lahore Pattoki/ Lahore Bhai Pheru Lahore- Jhang Karachi Sukkar, Sahiuwal Jhang Lahore Rahim yar khan Karachi Lahore

Noon Pakistan Nestle Milkpak Prime Dairies Idara-e-Kisan (Halla) Chaudhry Dairy Millack foods Dairy Lnad Engro foods Limited ShakarGunj Foods Alturhem Milk JK Dairies Doctor Dairies Gourmet Foods

8
8.1

MARKET INFORMATION
Sector Characteristics

The size of this sector is still growing. Commercial Dairy farms have been set up in peri urban areas. Few of the commercial dairy farms are: 1. Sar Sabz Dairy Farm, Okara 2. Wahdath Dairies, Bhagtawal, Sargodha 3. Dairy Land, Dhab-e- Je- Karachi 4. Ever Fresh – Bhera, Motorway 5. Nestle, Dairy Farm, Skheki- Motorway 6. J.K Dairies, Rahim yar khan 7. Sweet water Dairy 8. CSK Dairies Kasur 9. Engro Dairies, Sukhur 10. Royal Dairies, Badian Road Lahore 11. Sapphire Dairies, Raiwaind , Lahore 12. Dr. Abul Hasan Dairy, Jhang 13. Mr. Babar Butt,, Orange Dairies, Sialkot 8.2 Target Customers

Following are some of the target clients for a dairy farmer: 1. Milk processors 2. Dairy Companies 3. Milk collection companies 4. Contractors

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8.3

Pakistan’s First environmental controlled dairy farm

It’s a new and remarkable revolution in dairy sector by creating a self sufficient temperature and environmental controlled dairy farm house. Following are some of the features which are quite different from the other traditional farm houses. • • • Optimum Temperature of 26°C inside the shed Temperature can be reduced up to the level of 20°C at certain places if required Properly HVAC designed and planned by Engineers

• • • • • • •

This type of structure is designed to utilize as less electricity as possible. No need for the lights at the farm house in day light day time due to semi closed Self sufficient to produce coal free electricity from manure of the cows. The structure of the farm been designed in such a way as natural flow of water takes places resulting less human effort for cleanliness. Concrete structure been placed which is more durable than the steel one. Low roof height used which required less maintenance and easy accessible. Proper insulation has been used in order to prevent heat coming from every where.

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• • •

Electricity cost is much less than traditional fans barns as used only 4 fans of 1.5 HP whereas other farms Negative pressure fans utilizes 18~20 fans of the same capacity in the same size. Efficiency of imported cows do not suffer in hot weather resulting more productivity in Summers.

• •

No gases no odour and no smell inside the barn due to proper ventilation system Animals are happy and satisfied in cool breeze passing through them from all the sides made a pleasant effect.
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9
9.1

LAND
Land Requirement

About 4 acres of land should be purchased for building a dairy farm project of animals starting from 50 animals and at a target herd size of 250 animals in a period of 10 years. Land cost per acre in the neighboring areas of Lahore, Multan & Faisalabad would be at least Rs 1,000,000 per acre. Majority of this land would be used for building sheds for the animals to protect them from severity of the weather. The area for fodder production can be acquired on lease, however in this pre-feasibility it is assumed that the fodder will be purchased and stored when it is available in abundance at low price. However, agriculture land for fodder production can be acquired with an annual rent of Rs. 10,000 per acre in the peri-urban areas of Lahore, Multan & Faisalabad. It is assumed that around 0.33 acres of land would be required per animal for fodder production per annum. Table 9-1 Land Requirements (for target size of around 250 animals) Description Area (Acres) Shed along with free stalls for Cows 0.498 Open paddock for cows 0.498 Calves shed (15 days – 6 months) 0.137 Open Paddock for calves (15 days – 6 months) 0.137 Stores for fodder, concentrate & machine room 0.002 Utensils & milk storage 0.002 Servant Room, Wash room 0.212 Bunker silage 2.126 Total Land Requirement 3.612 9.2 Suitable Locations

Peri-urban and rural areas in the neighboring areas of Lahore, Karachi, Islamabad, Faisalabad & Multan etc. where water, electricity is available to irrigate the crops are suitable locations for establishing a dairy farm. 9.3 Animal Housing

Sheds of the animals would be airy with protection of the animals from extreme temperatures and strong winds. The animal housing should be facilitated with drinking water for animals. There should be proper drainage system to keep hygiene at the farm. It consists of a built up animal shed, a brick soling paddock for animals, calving pens in which pregnant animals are kept separated from other animals before calving, one room for milk storage, one room for storing farm equipment and one for compound feed storage. The animals can be dehorned, as they are easier to handle in barns and cause less accidental injury to neighboring animals, handlers, walls, and trees.

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Table 9-2 Space Requirement per Animal Description Shed along with free stalls for Cows Open Paddock for cows Calves shed Open paddock for calves Stores for fodder, concentrate & machine room Utensils & milk storage Servant Room, Wash room Silage bunker (C ft.) Table 9-3 Total Infrastructure Cost Description Shed along with free stalls for Cows Open paddock for cows Calves shed Open paddock for calves Stores for fodder, concentrate & machine room Utensils & milk storage Servant Room, Wash room Silage bunker (C ft.) Total Infrastructure Cost

Sq. Ft. 80 80 20 20 100 100 20 122

Sq.ft 4,000 4,000 840 840 100 100 1,000 11,193

Rate/Sq.ft 400 10 200 10 500 500 500 20

Total Cost 1,600,000 40,000 168,000 8,400 50,000 50,000 500,000 223,867 2,640,267

10 FARM MACHINERY
The pre-feasibility suggests only few farm equipments like cages, milk machines, ventilation fans, water pumps, milk utensils and details are given as follows: Table 10-1 Farm Equipment Cost Description Calf feeder Milking machine Chiller Generator (15 KVA) water pump Fan pads Heavy Duty Ventilation Fans Calf cages Total Cost (Rs.) Unit Cost Rs. 1,200 200,000 400,000 150,000 20,000 66,000 250,000 12,000 Animals per equipment 5 50 50 50 50 50 50 5 Total Cost Rs. 12,000 200,000 400,000 150,000 20,000 66,000 250,000 120,000 1,218,000

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11 ANIMAL CHARACTERISTICS
11.1 Herd Mix The ideal mixed herd should consist of 100% cows for the viability of a farm. The cows are comparatively high yielder as compared to buffaloes. 11.2 Breeds of Cross bred and Exotic (Bos taurus) The Holstein cow originated in Europe. The major historical development of this breed occurred in Netherland and more specifically in the two northern provinces of North Holland and Friesland. Holsteins are most quickly recognized by their distinctive color markings and outstanding milk production. Holsteins are large, stylish animals with color patterns of black and white or red and white. Holstein heifers can be bred at 15 months of age, when they weigh about 325-400 kgs body weight between 24 and 27 months of age. Holstein gestation is approximately nine months. The normal productive life of a Holstein is Nine years. It has now been extensively tested in the tropical and sub-tropical areas of Australia. Milk quality is good - protein level is 3.4 percent and butterfat is approximately four percent. These animals are available at an average price of $3,400 per animal HOSTEIN. The photos of different breeds are given in Annexure 4. 11.3 Animal Markets Animal markets (mandies), Government and private livestock farms are the main sources for purchasing milk animals. There are different contractors available in the markets that help locating the proper animals. These contractors work on commission basis and the commission rate charged may vary from 1-2% of the animal price. Preferably, the Australia and U.S.A are the best international markets for the production of cows. For cross herd and for imported animal Austrex, Elders, Wellard and Garsa Livestock 11.4 Feed The ration is allowance of nutritionally balanced feed in 24 hours. It includes dry matter and concentrate to increase animal productivity. Wheat straw5 is also used as dry roughage along with green fodder. About 1 kg of Total mix ration on dry matter (TMR) is required for the production of 2 liters of milk. These feed ingredients when mixed according to feed formula will provide adequate energy according to energy and protein requirements of animal in production. Table 11-1 Dry matter for Cow Feed Dry matter description Silage Concentrate6

% of Total 53% 47%

Unit Cost Rs. / Kg 5 20

5 6

A byproduct of wheat harvesting used as dry roughage for livestock and dairy animals The concentrate feed price is Rs 20 per kg if purchased from market. 17

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11.5 Mineral Mixture This is used as a feed supplement. It includes a mix of minerals (magnesium, iron, sodium and salts). Mineral mixtures are good source of energy and increase the animal productivity to give milk. 11.6 Fodder Crop Fodder is grown at the land, which is acquired on lease or owned by the entrepreneur. Due to increased demand, improved forage crops such as multi-cut oats, berseem, lucerne, Sorghum- Sudan grass hybrids, mott grass, sorghum, maize and millet have been developed. These have become very popular in irrigated areas such as Kasur, Sheikhupura, Gujranwala, Faisalabad, Sargodha, and Renala Khurd (Punjab), Nowshera, Charsada, Mardan, and Peshawar (North West Frontier Province), and Hyderabad, Sukkur, Larkana and Nawabshah in Sindh for peri-urban dairies. The fodder yield (except multi cut Mott Grass which yield 100-150 tones/ acre in 4 to 6 cuttings per year) varies between 10 tons to 40 tons per acre depending upon the fertility of land, quality of seed and application of fertilizer. Table 11-2 Types of Dry & Green roughage7 Dry Roughage Green Roughage Summer Fodder Winter Fodder Wheat Straw Maize Barseem Rice Straw Sorghum Alfalfa (Lucerne) Oat Straw Millet Oats Maize/Sorghum Stubble Mott Grass Rye Grass Sugarcane Baggass Sadabahar Sugarcane tops Cotton Seed Hulls Guar Corn Cobs 11.7 Daily Fodder Requirement There is no fixed fodder requirement for the animals but a rule of thumb says that an animal needs daily fodder equal to 9%-10% of its body weight (3% of live body weight on Dry Matter Basis). According to estimates, consumes 50-55 kg fodder daily while cow consumes about 40-45 kg. 11.8 Wheat Straw (Bhusa or Turi) Wheat straw is major, typical, and very popular dry roughage. It is always chaffed, and is the main or even only major dry roughage used on almost all the dairies. Traditional threshing methods break the straw into short pieces, bhoosa, and modern mechanical threshers have been designed to break the straw. In all urban dairies visited wheat straw was bought at Rs. 2 per kilo (80 Rs per mond) or even more; in the harvest season, however, in places where it is produced, it is available at Rs. 0.40 per kilo.

7

(Reference: Livestock & Dairy Development Department, Lahore) (Reference: FAO Statistical Databases) 18

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Table 11-3 Animal

Daily Feed Requirement of Cow & Calf Daily Requirement Cost/kg (kg) 14.07 6.93 5 20

Amount

Cow Dry Concentrate Total Calf younger than 1 year Dry Concentrate Total 11.9 Medication 11.10 Vaccination & Medicine

70.35 138.60 208.95 26.3 35 61.3

5.25 1.80

5 20

Vaccination & medicine is required to prevent any disease outbreak in the animal herd. Each new animal will be vaccinated before entering the farm. It will cost Rs. 1,000 for each cow per year. Vaccines are produced at Veterinary Research Institute, Ghazi Road, Lahore. The vaccines are provided to the Government Farms and Hospitals on payment. Farmers can also obtain these vaccines on payment according to prescribed schedule from the Institute. Technical guidance is also provided to the farmers. Farmers can have their animals vaccinated from the field Veterinary Hospitals and Centers. 11.11 Artificial Insemination (AI) Charges Artificial Insemination (AI) charges will be Rs 5,000 per cow per year. On average each cow will be requiring aprox. 2.5 doze of insemination. Some of the companies dealing in imported semen are given in Annexure 3. 11.12 Labor Requirement For a dairy enterprise, manpower is required for performing different animal husbandry practices at the farm e.g. feeding, watering, milking and care of animals etc. One skilled person can handle 15 milk animals easily. Four farm workers are recommended for handling 50-animals. A supervisor cum farm manager can be hired to supervise all the farm activities. The supervisor with B.Sc. (Honors) degree in Animal Husbandry (AH) and an additional requirement of MBA may be hired as a farm manager so that he can handle the farm practices, administration & account matters at the dairy farm. Table 11-4 Labor Requirements Description No. Salary/month/Person Farm Manager 1 25,000 Workers 4 8,000 Total Labor Cost 5 57,000

Annual Salary (Rs) 300,000 384,000 684,000

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12 FARM OUTPUT
12.1 Lactation Period The lactation period is the period during which the animals yield milk. These animals are called wet animals. Generally the lactation period of cows is 305 days. For calculation, the feasibility has taken 100% of the total number of cows as wet cows. The calving interval in cow has 13 months. The average milk yield of cow is estimated at 28 x 305 = 8,540 liters per lactation. 12.2 Milk Composition Buffalo milk contains less water, more total solids, more fat, slightly more lactose, and more protein than cow's milk. Cow's milk contains 12-14% total solids and the butterfat content is usually between 3% and 5%. Phospholipids are lower but cholesterol and saturated fatty acids are lower in cow’s milk. Normally the protein in cow’s milk contains less casein and slightly less albumin and globulin. The mineral content of cow's milk is nearly the same as that of buffalo milk except for phosphorus, which occurs in roughly twice the amount in buffalo milk. Cow’s milk enriches the yellow pigment carotene, precursor for vitamin A, and its yellowness is frequently used to differentiate it from buffalo’s milk in the market. Despite the absence of carotene, the vitamin A content in buffalo milk is almost as high as that of cow's milk. Apparently the buffalo converts the carotene in its diet directly to vitamin A. The two milks are similar in B complex vitamins and vitamin C, but buffalo milk tends to be lower in riboflavin. 12.3 Breeding Stock Development The proposed farmer will raise breeding stock containing future dairy animals at his own farm by selecting good off springs of high producers. Instead of breading bull the Insemination will be done Artificial Insemination of imported Semen of breeding bulls. The first generation (F1) will be capable of giving milk after 2 years in cows. 12.4 Increase in Milk Yield The milk yield will be improved as a result of appropriate breeding systems discussed earlier. Low yielding animals are sold in the market. On an average, cows are productive for 9 to 10 years. 12.5 Sale Price In this feasibility study, it is assumed that all the milk will be sold to milk processing companies, house holds & milk shops etc. @ Rs. 35/liter. 12.6 Evening Milk Milk can be stored in a milk chiller on 14.5% TS at the farm if milk collection is not possible in the evening.

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12.7 Farm Revenues Farm revenue will increase with the passage of time, as the milk production will increase with the growth in herd size as well as its quality. 12.8 Male Calves Male calves will be sold at the farm sooner after birth for Rs 25,000 per animal. They can also be reared in separately for beef production for getting good profit margins.

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11 FINANCIAL ANALYSIS
11.1 Income Statement
Calculations
Income Statement
Year 1 13,151,600 525,000 13,676,600 Year 1 3,971,100 300,000 120,000 4,391,100 9,285,500 Year 2 14,560,700 550,000 15,110,700 Year 2 3,345,812 346,500 132,000 3,824,312 11,286,388 Year 3 17,406,612 1,668,288 19,074,900 Year 3 3,442,840 448,232 145,200 4,036,273 15,038,627 Year 4 23,216,566 2,211,789 25,428,356 Year 4 4,574,059 628,646 159,720 5,362,425 20,065,930 Year 5 30,995,963 2,904,774 33,900,738 Year 5 5,732,329 886,252 175,692 6,794,273 27,106,464 Year 6 42,162,137 3,804,105 45,966,242 Year 6 7,401,677 1,270,277 193,261 8,865,215 37,101,028 Year 7 57,785,716 5,023,704 62,809,420 Year 7 9,736,051 1,837,523 212,587 11,786,162 51,023,258 Year 8 80,056,553 6,728,823 86,785,376 Year 8 12,823,405 2,681,716 233,846 15,738,966 71,046,409 Year 9 113,123,462 8,678,426 121,801,889 Year 9 17,136,732 3,971,489 257,231 21,365,452 100,436,437 Rs. In actuals Year 10 160,943,960 51,526,462 212,470,422 Year 10 23,233,453 5,947,828 282,954 29,464,235 183,006,187

SMEDA

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 & feul charges) Total cost of sales Gross Profit General administration & selling expenses Administration expense Fuel for generator Office expenses (stationary, entertainment, janitorial services, etc.) Professional fees (legal, audit, consultants, etc.) Depreciation expense Amortization of pre-operating costs Subtotal Operating Income Other income (interest on cash) Earnings Before Interest & Taxes Interest expense on long term debt (Debt facility : Bank 1) Subtotal Earnings Before Tax Taxable earnings for the year Tax NET PROFIT/(LOSS) AFTER TAX

684,000 1,246,840 13,680 65,758 253,813 27,000 2,291,091 6,994,409 43,530 7,037,939 1,831,367 1,831,367 5,206,572 5,206,572 1,301,643 3,904,929

750,595 1,371,524 15,012 72,804 345,385 27,000 2,582,320 8,704,069 65,237 8,769,305 1,532,640 1,532,640 7,236,665 7,236,665 1,809,166 5,427,499

823,674 1,508,676 16,473 87,033 390,336 27,000 2,853,193 12,185,434 64,229 12,249,663 1,182,451 1,182,451 11,067,212 11,067,212 2,766,803 8,300,409

903,868 1,659,544 18,077 116,083 438,635 27,000 3,163,207 16,902,723 74,666 16,977,388 771,935 771,935 16,205,454 16,205,454 4,051,363 12,154,090

991,870 1,825,498 19,837 154,980 620,736 27,000 3,639,922 23,466,543 119,648 23,586,190 290,698 290,698 23,295,492 23,295,492 5,823,873 17,471,619

1,699,494 2,008,048 33,990 210,811 858,758 27,000 4,838,101 32,262,927 348,197 32,611,124 32,611,124 32,611,124 8,152,781 24,458,343

1,864,959 2,208,853 37,299 288,929 1,132,992 27,000 5,560,032 45,463,226 817,599 46,280,825 46,280,825 46,280,825 11,570,206 34,710,618

2,046,534 2,429,738 40,931 400,283 1,539,671 27,000 6,484,157 64,562,252 1,480,966 66,043,218 66,043,218 66,043,218 16,510,804 49,532,413

3,053,262 2,672,712 61,065 565,617 2,181,747 27,000 8,561,404 91,875,033 2,423,503 94,298,536 94,298,536 94,298,536 23,574,634 70,723,902

3,350,532 2,939,983 67,011 804,720 2,989,893 27,000 10,179,139 172,827,048 4,776,107 177,603,155 177,603,155 177,603,155 44,400,789 133,202,366

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11.2 Balance Sheet Statement
Calculations
Balance Sheet
Year 0 Assets Current assets Cash & Bank Raw material inventory 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 Other liabilities Long term debt (Debt facility : Bank 1) Total Long Term Liabilities Shareholders' equity Paid-up capital Gain/ (Loss) on revaluation of animals Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Rs. In actuals Year 10

SMEDA

315,000 992,775 1,307,775

928,722 878,276 1,806,998

935,185 948,933 1,884,117

899,934 1,323,761 2,223,695

1,233,370 1,741,921 2,975,290

2,185,134 2,361,656 4,546,790

7,763,343 3,261,810 11,025,153

15,596,632 4,510,955 20,107,586

26,716,686 6,329,689 33,046,375

42,526,247 9,010,678 51,536,925

93,933,952 93,933,952

4,000,000 2,640,267 15,000,000 15,000,000 1,218,000 22,858,267

4,000,000 2,764,487 15,000,000 750,000 15,750,000 1,883,800 24,398,287

4,000,000 3,002,729 15,000,000 4,590,000 19,590,000 1,941,212 28,533,941

4,000,000 3,699,323 15,000,000 8,536,500 23,536,500 1,767,562 33,003,385

4,000,000 4,921,785 15,000,000 13,983,000 28,983,000 2,642,208 40,546,994

4,000,000 6,410,771 15,000,000 21,229,500 36,229,500 3,796,439 50,436,710

4,000,000 8,757,879 15,000,000 30,474,000 45,474,000 4,689,896 62,921,775

4,000,000 12,304,401 15,000,000 42,817,500 57,817,500 6,101,711 80,223,613

4,000,000 17,104,696 15,000,000 59,658,000 74,658,000 8,935,155 104,697,851

4,000,000 24,030,756 15,000,000 65,346,000 80,346,000 11,861,973 120,238,729

4,000,000 22,655,169 15,000,000 15,000,000 10,247,667 51,902,836

270,000 270,000 24,436,042

243,000 243,000 26,448,284

216,000 216,000 30,634,059

189,000 189,000 35,416,081

162,000 162,000 43,684,284

135,000 135,000 55,118,500

108,000 108,000 74,054,928

81,000 81,000 100,412,199

54,000 54,000 137,798,226

27,000 27,000 171,802,655

145,836,788

12,218,021 12,218,021

10,483,966 10,483,966

8,451,183 8,451,183

6,068,212 6,068,212

3,274,724 3,274,724

0

0

0

0

(0)

0

12,218,021

12,218,021 24,436,042

13,261,854 750,000 1,952,464 15,964,319 26,448,284

13,902,894 4,590,000 3,689,982 22,182,876 30,634,059

14,816,173 8,536,500 5,995,195 29,347,869 35,416,081

17,351,917 13,983,000 9,074,643 40,409,559 43,684,284

20,615,869 21,229,500 13,273,131 55,118,500 55,118,500

24,715,191 30,474,000 18,865,737 74,054,928 74,054,928

30,806,521 42,817,500 26,788,178 100,412,199 100,412,199

39,979,930 59,658,000 38,160,296 137,798,226 137,798,226

52,014,556 65,346,000 54,442,099 171,802,655 171,802,655

52,014,556 93,822,232 145,836,788 145,836,788

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11.3 Cash Flow Statement
Calculations
Cash Flow Statement
Year 0 Operating activities Net profit Add: depreciation expense amortization of pre-operating costs Raw material inventory Cash provided by operations Financing activities Debt facility : Bank 1 - principal repayment Additions to Debt facility : Bank 1 Issuance of shares Purchase of (treasury) shares Cash provided by / (used for) financing activities Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing activities NET CASH Year 1 3,904,929 253,813 27,000 114,499 4,300,242 Year 2 5,427,499 345,385 27,000 (70,657) 5,729,227 Year 3 8,300,409 390,336 27,000 (374,828) 8,342,916 Year 4 12,154,090 438,635 27,000 (418,159) 12,201,566 Year 5 17,471,619 620,736 27,000 (619,735) 17,499,620 Year 6 24,458,343 858,758 27,000 (900,154) 24,443,946 Year 7 34,710,618 1,132,992 27,000 (1,249,144) 34,621,466 Year 8 49,532,413 1,539,671 27,000 (1,818,735) 49,280,350 Year 9 70,723,902 2,181,747 27,000 (2,680,989) 70,251,660 Rs. In actuals Year 10 133,202,366 2,989,893 27,000 9,010,678 145,229,937

SMEDA

(992,775) (992,775)

12,218,021 12,218,021 24,436,042

(1,734,055) 1,043,833 (690,222)

(2,032,782) 641,040 (1,391,743)

(2,382,971) 913,279 (1,469,692)

(2,793,488) 2,535,743 (257,744)

(3,274,724) 3,263,953 (10,772)

4,099,322 4,099,322

6,091,329 6,091,329

9,173,409 9,173,409

12,034,626 12,034,626

-

(23,128,267) (23,128,267) 315,000

(1,043,833) (1,043,833) 2,566,186

(641,040) (641,040) 3,696,444

(913,279) (913,279) 5,959,945

(2,535,743) (2,535,743) 9,408,078

(3,263,953) (3,263,953) 14,224,895

(4,099,322) (4,099,322) 24,443,946

(6,091,329) (6,091,329) 34,621,466

(9,173,409) (9,173,409) 49,280,350

(12,034,626) (12,034,626) 70,251,660

145,229,937

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11.4 Selling Assumptions
Sales Selling Assumptions
Milk/Cow/Day Wet Cows as % Total no. of Cows No. of Days in Year Purchase Price of developed progeny Cow Female calf(cow) older then one year Sale Price/Culled cow Sale Price/Low yeilder cow Sale Price/Male calf Qty 28 100% 305 300,000 50,000 100,000 100,000 25,000 Year 1 Animals Average # of cows # of lactating cows # of calve Calve older than one year (Cows)/Heifer Total animals older then one year Total Animals Animals Sold During the Year # of Cow Progeny sold # of culled cows sold # of Male Calve sold Total Animals Sold 50 50 42 0 50 92 Unit Ltrs. % Days Rs. Rs. Rs. Rs. Year 2 50 50 40 21 71 111 Year 3 56 56 55 20 76 131 Year 4 68 68 68 27 95 162 Year 5 83 83 85 34 132 217 Year 6 103 103 108 41 164 272 Year 7 129 129 139 51 215 354 Year 8 163 163 179 64 288 466 Year 9 209 209 227 83 368 595 Year 10 271 271 299 107 463 761

0 21 21

0 20 20

0 7 28 34

0 8 34 42

0 9 43 52

0 10 54 64

0 11 70 102

0 12 89 136

0 12 114 175

56 13 149 270

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11.5 Production Assumptions

Production of milk (ltrs) Cows Milk for calve Net Annual milk production

Year 1 1,400 168 375,760

Year 2 1,400 160 378,200

Year 3 1,568 220 411,018

Year 4 1,904 270 498,370

Year 5 2,324 341 604,876

Year 6 2,884 432 747,982

Year 7 3,612 556 931,958

Year 8 4,564 716 1,173,762

Year 9 5,852 908 1,507,798

Year 10 7,588 1,194 1,950,170

Revenue from Sale of Milk (Rs.) Daily Annual Other Revenue (Rs.) Sale of Developed Progeny Sale of Culled Cows Sale of Low Yielder Cow Sale of Calves

43,120 13,151,600

43,400 13,237,000

47,166 14,385,630

57,190 17,442,950

69,412 21,170,660

85,834 26,179,370

106,946 32,618,530

134,694 41,081,670

173,026 52,772,930

223,790 68,255,950

525,000 525,000

500,000 500,000

690,000 688,750 1,378,750

818,000 843,750 1,661,750

919,000 1,065,000 1,984,000

1,013,300 1,348,750 2,362,050

1,097,000 1,738,750 2,835,750

1,216,700 2,236,250 3,452,950

1,209,800 2,838,750 4,048,550

16,800,000 1,321,000 3,731,250 21,852,250

Total Annual Revenue

13,676,600

13,737,000

15,764,380

19,104,700

23,154,660

28,541,420

35,454,280

44,534,620

56,821,480

90,108,200

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12 KEY ASSUMPTIONS
Equity Debt (In case of loss S.T Loan will be taken) Interest rate Short Term Total No of Employees Loan Repayment Period (yrs) Payments in a year Cows Mortality Calf Mortality Starting Herd Size Target Herd Size Milk sale price (Rs) Purchase Price of Cow (Rs) Price of Low yield Cow (Rs) Milk yield of Cow per day (litre) Sale Price of 6 month old calf (Rs) Sales Price growth rate CGS growth rate Lactation Period (no. of milking days per year) Artificial insemination charges per cow per year (Rs) Vaccination & medication charges per cow per year (Rs) Electricity Cost & Diesel charges for generator (Rs. per month) 50% 50% 16% 5 5 12 1% 5% 50 250 35 300,000 100,000 28 25,000 10% 5% 305 5,000 1,000 100,000

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13 ANNEXURES Annexure - 1
Table 13-1:Vital Statistics of Cattles Parameters Rectal Temperature Heart Rate Respiratory Rate Table 13-2:Traits of Farm Animals Parameters Age at puberty Estrous duration Estrous cycle length Gestation length Dry period Service period Age at first calving Calving interval Table 13-3:Common Diseases of Livestock
Infectious Diseases Disease Anthrax Symptoms Fever, grinding of teeth, release of blackish blood from natural openings, which doesn’t clot. Excessive salivation, Pustules on lips, tongue and between the cleft of hooves, staggering gait weakness due to inability of ingestion. Preventive measures Vaccination in February. Dead animal should be buried in 6 feet deep pit without any postmortem. FMD vaccine after every 4 months especially before the onset of rainy season. Medication Antibiotic therapy

101.5 degrees F (38.5 degree C) 60-70 beats/minute 30 breaths/minute

Cattle 15-18 months 17 hrs 21 days 305+_5 days 2-3 months 2-3 months 2 to 2.5 yr. 13 months

Foot and mouth Disease

FMD Serum, cleaning of pustules by potassium permanganate solution, cleaning of hooves by phenyl solution 5 grams Stomach powder (mixed in feed or dissolved in water) twice a day

Non Contagious Diseases Indigestion Loss of appetite, watering from mouth, stiffening of rumen, bloating, severe pain in stomach Difficult breathing due to air trapped in stomach, animal may die due to suffocation Avoid grazing early in morning especially on fodder with dewdrops.

Bloating (air trapped in stomach)

Mustard (Sarson) oil & turpentine oil mixed with chloral hydrate mixed in drinking water.

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Dysentery

Diarrhea, smelling feces, weakness

Avoid excessive intake of milk especially in newborn kids. Avoid wheat straw or stiff feed during dysentery

Calcium carbonate, magnesium carbonate and bismuth carbonate dissolved in water OR entox tablets OR nimkol with sulfademadine (4-5 cc). Offer rice groule to affected animals Zanil or Carbon tetra chloride OR nilzan plus, oral administration Systamax or rental, oral administration

Internal Parasites Liver flukes Weakness, off feed, jaundice in severe cases, swelling on joints Weakness, diarrhea, anemia, hair fall from body coat No grazing around stagnant water

Round Worms

Fecal samples should be examined for roundworms.

Ectoparasites Flies/ ticks/ maggots Irritation on body coat, sometimes holes in skin, loss of hair from body coat Cleanliness in sheds, Spray of DDT in shed Apply sulfur oil, tetmasol or ecoflax on wounds and dipping of whole herd with a 0.15 % solution of negavan.

Table 13-4:

Vaccination Schedule
Name of Vaccine Foot & Mouth Vaccine Qty administe red (ml) 5 ml Time for Vaccination Start of spring Duration of Immunity 4 months Preventive Measures Should be given 4 months prior to the expected symptoms of disease. Every year vaccination should be done every year. Vaccine should be used right after preparation. Should be given 4 months prior to the expected symptoms of disease.

Name of Disease

Foot & Mouth Disease (FMD)

Anthrax

Anthrax spore vaccine

0.5 ml

March-April or monsoon season

One year

Rabies (Bowla Pun)

Anti rabies vaccine

10 ml

According to need

One year

Hemorrhagic Septicemia (HS)

HS vaccine

5-10 ml

Start of Spring

4 months

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Annexure - 2
Table 13-5:
Sr. no 1. 2. Dam No.

Calving Register
Sire No. Date of calving Sex of calf Wt. of calf Remarks

Table 13-6:
Sr. no 1. 2.

Disposal of Death
No. Date of birth Sex Mode Cost Remarks

Animal/Dam

Table 13-7: Reproduction/Insemination/Pregnancy Diagnosis / Follow up / Treatment
Sr. no 1. 2. Animal No. Date of last calving No. of services Last date of service Sire No. Result Rema rks

Table 13-8:
Sr. no a. b. Morning Evening

Daily Milk Production
No. of animals Milk prod. Milk sold Income from sale Day's wet average Herd average Rema rks

Table 13-9: Details of Purchase / Sale of product/byproduct (Feed and fodder's, medicines, ingredients, animal, etc.)
Sr. no 1. 2. Particulars Quantity Per unit rate Total cost Remarks

Table 13-10: Calving & Calf Disposal
Sr. no Date of birth Dam No. Sire No. Sex of calf Wt. of calf at birth Disposal Date Remarks

Table 13-11: Reproduction Performa
Brand No.......................Date of birth.................Dam No...............Date of 1st heat........................... History sheet-------------------Sr. no Particulars 1. Service (Date/Sire No.) 1st calving 2nd calving 3rd calving 4th calving 5th calving

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Table 13-12: Conception Record Date of Pregnancy Diagnosis------------------Result------------------Date of conception--------------------Excepted date of calving------------------Actual date of calving------------------Sex of calf-----------------Table 13-13: Reproductive Health Disorder-------------------Treatment------------------Follow-up------------------Table 13-14: Individual Milking Record
Sr. no Order of Cow calving No. Date of calving Weekly recording
Morning Evening

Date when dried

Days in milk

Total milk yield

Table 13-15: Herd Health Register
Date Animal History Symptoms Diagnosis Treatment Detail of vaccination or hygiene Cost of treatment

Table 13-16: Monthly Expenses & Income Report
Sr. no Particulars Quantity Rate (per unit) Total cost

Table 13-17: Periodical Weighing Register
Sr. no Tattoo No. Brand No. (Dam's) (Animal) Date of birth Wt. at weeks 0,1,2…11,12 Wt. at months Wt. at 3,6,9,12,18,24 Service/ Calving Remarks

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ANNEXURE - 3
Table 13-18: Suppliers List Feed Suppliers Organon Feeds Office No. 12 Ross Residencia 1, Campus Road, Lahore. Phone: [phone] National Feeds Ltd. 171 Shadman – II Lahore. Phone: [phone] Fax: [phone] Scmen Suppliers Altaf & Co. 169-A/1, Gulberg III, Lahore Phone:[phone] Fax:[phone] Snam Pharma 8/50 Awan Plaza, Shadman Market, Lahore. Phone:[phone] Fax:[phone] Ghazi Brothers B-35 KDA Scheme no 1, Mian Muhammad Shah Road, Karachi. Phone: [phone] Fax: [phone] Animal Suppliers Elders Internationals 139-2 Khayaban Ameer Khusro Phase6DHA, Karachi. Phone: [phone] Wellard Group (Pro Farm Pakistan) 69/7 Green Villas-FCC, Syed Maratab Ali Road, Gulberg IV, Lahore. Phone: [phone] Fax: [phone]

Doctor’s Dairy Feeds 203/7, UC-3, Cattle colony, Bin Qasim, Karachi. Phone: [phone] Machinery Suppliers Delaval 316- Upper mall Lahore. Phone:[phone]

Dairy Master DEC Sikka Street 8km Raiwind Road, Lahore. Phone:[phone]

WestFalia Suite 623, Al Hafeez Shopping Mall, Gulberg III, Lahore. Phone:[phone]

Agri Fred, USA 210 Rewaz Garden, Lower Mall, Lahore. Phone:[phone]

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Consultants Dr. Tariq Office No.12 Ross Residencia 1, Campus Road Canal Bank, Lahore. Phone:[phone] Dr. Khalid D-35, KDA Scheme No.1 Miran Muhammad Shah Road, Karachi. Phone:[phone] Dr. Rehan (Agrimasters) 210 Rewaaz Garden, Lower Mall, Lahore. Phone:[phone] Table 13-19: Animal Description Heifers Vaccination program for dairy herds. Time for Vaccination Detail Vaccination Three to four Clostridial group vaccine at three to four months of age months of age, or earlier depending on risk Five to six months • IBR, BVD, PI-3, BRSV of age • Haemophilus • Clostridial group • Leptospirosis (5 strain) • Worm • Grub and lice treatment in early fall, repeat as needed Pre-breeding Pre-calving Adult Cows IBR, BVD, PI-3, BRSV • Leptospirosis (5 strain) • Rotavirus, Coronavirus, E. coli twice, at six and three weeks prior to calving Cows are generally vaccinated for leptospirosis and the virus diseases during the early lactation period, approximately five weeks prior to breeding. Some veterinarians prefer to vaccinate during the dry period, although modified Live virus vaccines are not used at this time
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ANNEXURE - 4
Different Breeds of Cows

Holstein

Jersey

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ANNEXURE - 5
Pictures of the Environmental controlled Dairy farm Model

Model Farm outside layout

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Model Farm inside layout

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Heavy Duty Ventilation Fans

Calf Cages

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ANNEXURE - 6 USEFUL TERMINOLOGIES
Breed Animals that, through selection and breeding, have come to resemble one another and pass those traits uniformly to their offspring. Feedstuffs Any substance of nutritive and biological value used in production of compound feed. Compound feed Any ground mixture of ingredients intended for feeding the animals. It includes a concentrate mixture accordingly to formula. Dehorning The process of removal of horns (in adult animal) or horn buds (in young calves). The process may be done by mechanical or chemical means. Heifer The term refers to young female bovine that reaches puberty age and is ready to breed. Home Mixed Feed Feed prepared on farm. Oil seed Cake Mass resulting from the processing of seeds, which is rich in protein and is used as a source of feed for livestock, e.g. cottonseed cake, maize oil cake etc. Ration Amount of balance feed in 24 hours

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