Pre-Feasibility Study

Prime Ministers Small Business Loan Scheme

(12 Animal Dairy Farm)

Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan e Iqbal, Egerton Road,
Lahore
Tel 92 42 111 111 456, Fax 92 42 36304926-7
helpdesk@smeda.org.pk

REGIONAL OFFICE
PUNJAB

REGIONAL OFFICE
SINDH

REGIONAL OFFICE
KPK

REGIONAL OFFICE
BALOCHISTAN

3rd Floor, Building No. 3,

Aiwan e Iqbal, Egerton Road
Lahore,
Tel: (042) 111-111-456
Fax: (042)6304926-7
helpdesk.punjab@smeda.org.pk

5TH Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk

Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk

Bungalow No. 15-A

Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 831623, 831702
Fax: (081) 831922
helpdesk-qta@smeda.org.pk

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Dairy Farming

Table of Contents
1. DISCLAIMER .......................................................................................................................................... 2
2. PURPOSE OF THE DOCUMENT ......................................................................................................... 3
3. INTRODUCTION TO SMEDA .............................................................................................................. 3
4. INTRODUCTION TO SCHEME ........................................................................................................... 3
5. EXECUTIVE SUMMARY ...................................................................................................................... 4
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT ........................................................................ 4
7. CRITICAL FACTORS ............................................................................................................................ 5
8. INSTALLED & OPERATIONAL CAPACITIES ................................................................................. 5
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT...................................................................... 5
10.

POTENTIAL TARGET MARKETS ............................................................................................... 5

11.

PROJECT COST SUMMARY ......................................................................................................... 5

11.1.
11.2.
11.3.
11.4.
11.5.
11.6.
11.7.
11.8.

PROJECT ECONOMICS ..................................................................................................................................6

PROJECT FINANCING ...................................................................................................................................6
PROJECT COST.............................................................................................................................................6
SPACE REQUIREMENT..................................................................................................................................7
MACHINERY AND EQUIPMENT .....................................................................................................................8
RAW MATERIAL REQUIREMENTS ................................................................................................................8
HUMAN RESOURCE REQUIREMENT .............................................................................................................9
REVENUE GENERATION ...............................................................................................................................9

12.

CONTACTS: .................................................................................................................................... 11

13.

ANNEXURE ..................................................................................................................................... 12

13.1.
13.2.
13.3.
13.4.
13.5.
14.

INCOME STATEMENT ................................................................................................................................. 12

BALANCE SHEET ....................................................................................................................................... 13
STATEMENT OF CASH FLOW ...................................................................................................................... 14
USEFUL PROJECT MANAGEMENT TIPS ...................................................................................................... 15
USEFUL LINKS ........................................................................................................................................... 15
KEY ASSUMPTIONS ..................................................................................................................... 17

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1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said matter. Although, the material included in this
document is based on data/information gathered from various reliable sources;
however, it is based upon certain assumptions which may differ from case to case. The
information has been provided on as is where is basis without any warranties or
assertions as to the correctness or soundness thereof. Although, due care and diligence
has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ
substantially from the presented information. SMEDA, its employees or agents do not
assume any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. The contained information does not preclude
any further professional advice. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information which is
necessary for making an informed decision, including taking professional advice from a
qualified consultant/technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk

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2. PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up, and
production, marketing, finance and business management.
The purpose of this document is to facilitate potential investors in Dairy Farm by
providing them with a general understanding of the business with the intention of
supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and its successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form basis of any Investment Decision.

3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs" , SMEDA has carried out sectoral research to identify
policy, access to finance, business development services, strategic initiatives and
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a successful hallmark of SME facilitation by SMEDA
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification of
experts and consultants and delivery of need based capacity building programs of
different types in addition to business guidance through help desk services.

4. INTRODUCTION TO SCHEME
Prime Ministers Small Business Loans Scheme, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)
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beneficiaries, through designated financial institutions, initially through National Bank of

Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small business loans with tenure upto 7 years, and a debt: equity of 90 : 10 will be
disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber
Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally
Administered Tribal Areas (FATA).

5. EXECUTIVE SUMMARY
Dairy Farm is a project to attract small investors, in which, the 12 cows and buffalos are
raised on specific feed to gain high milk yield. Dairy farming is highly complex as it
includes breeding, management, feeding, housing, disease control and hygienic
production of milk on farm.
A dairy farm with a population of 12 cattle (6 cows and 6 buffalo) need a total
investment estimated at Rs. 2.05 million out of which the capital cost of the project is
Rs.1.95 million for animal purchase and the building construction and the rest is used to
meet the working capital requirement.
The project is expected to achieve the revenue of Rs. 2.00 million in the first year with
projected IRR and Payback of this project are 31% and 3.87 years respectively. The
farm will provide employment opportunity to 01 individual other than the owner
manager.
Legal status of the projected id proposed as a sole proprietorship.

6. BRIEF DESCRIPTION OF PROJECT & PRODUCT

Dairy farming is one of the fast growing businesses in the country which not only meet
the increasing demand of milk in the region but also contribute its part in export and
national income.
Keeping in view the significance of dairy farming, business nature and industry
competition, it is recommended to focus on management and operational aspects of the
farm, quality of herd mix, vaccination of the animals, feeding standards, and housing
system to make the business profitable.
The dairy farm is proposed to be established on purchased farm land and constructed
structure having total area of 3,485 sqft.
The proposed model is about 12 animals (6 cows and 6 buffaloes) to achieve milk
production of 33,288 liters by the end of first year. Milk production will be sold to the
domestic and bulk buyers at the rate of Rs.60 per liter with an annual price increase of
10%.
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7. CRITICAL FACTORS
1. Background knowledge and related experience of the entrepreneur in dairy farm
operations.
2. Selection of cows and buffalos with established minimum daily production of 10
liters or above buffalo and 12 liters or above for cows, certified with no diseases
with 2nd or 3rd lactation
3. Application of good husbandry practices as below
a. Housing and shelter
b. The housing style should be tie stall system
c. Regular vaccine of HSV and FMD is necessary
d. Feeding should be done thrice and 10% cp and 1500 kcal energy
e. Milk should be refrigerated at 4 c and transport at 11 c temperatures

8. INSTALLED & OPERATIONAL CAPACITIES

Production capacity is based on project size. The feasibility study suggests an initial
herd size of twelve (12) animals, which is economical to justify the overhead cost.
Initially, herd mix of 50% cows and 50% buffaloes is recommended to get the maximum
milk production round the year. The dairy farm will have the capacity to produce 33,288
liters of milk per annum.

9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

The development of urban and peri-urban commercial dairy farms is something new in
livestock production. Metropolitan cities like Lahore, Karachi, Multan, Rawalpindi,
Peshawar, Noshehra, Hyderabad, Sukkur Gilgit and Quetta etc are the major market of
milk. Hence, dairy farm established in peri-urban areas of these cities fulfils the daily
need of these cities.

10.

POTENTIAL TARGET MARKETS

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

11.

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of
Dairy Farm Project under the Prime Ministers Small Business Loan Scheme. Various
cost and revenue related assumptions along with results of the analysis are outlined in
this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexure.

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11.1.

Dairy Farming

Project Economics

All the figures in this financial model have been calculated for 12 Dairy animals
consisting of cows and buffalos in equal proportion.
The following table shows internal rates of return and payback period.
Table 1: Project Economics
Description

Details

Internal Rate of Return (IRR)

31%

Payback Period (Year)

3.87

Returns on the scheme and its profitability are highly dependent on the efficiency of
above mentioned critical factors. In case dairy farm project is not able to attain target
milk production and implement effective husbandry practices, it will not be able to cover
the potential market and recover payments; hence cost of operating the business will
increase. Similarly, the project using good quality and prescribed inputs will essential for
this venture.

11.2.

Project Financing

Following table provides details of the equity required and variables related to bank
financing;
Table 2: Project Financing
Description

Details (Rs.)

Total Equity (10%)

205,699

Bank Loan (90%.)

1,851,265

Markup to the Borrower (%age/annum)

8%

Tenure of the Loan (Years)

11.3.

Project Cost

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Following requirements have been identified for operations of the proposed business.
Table 3: Capital Investment for the Project
Capital Investment

Amount (Rs.)

Land

79,752

Building/Infrastructure

210,000

Cows and Buffalos

1,500,000

Machinery & Equipment

66,300

Pre-Operating Costs

100,909

Total Capital Costs

1,956,961

Cash in Hand

100,000

Total Project Cost

11.4.

2,056,961

Space Requirement

The area has been calculated on the basis of space requirement for production area,
management building, scrap yard and stores. However, the units operating in the
industry do not follow any set pattern. Following table shows calculations for project
space requirement.

Table 4: Space Requirement

Sr. No

Description

Area sqft

Shed for cows

600

Open Paddock for Cows

600

Shed for Buffalos

600

Open Paddock for Buffalos

600

Stores for fodder, concentrate & machine room

150

Utensils & milk storage

150

Servant Room, Wash room

90

Silage Bunker

384

Open Space

311

Total

3,485

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Total investment in building and infrastructure is calculated to be approximately Rs. 0.21

million.

11.5.

Machinery and Equipment

Following table provides list of machinery and equipment required for an average
foundry unit working for electrical fan sector.
Table 5: List of Machinery and Equipment
Sr. No Description
1

Calf feeder

Unit Rate (Rs.)

Qty

Cost (Rs.)

1,200

3,600

Teat Dip Cup

350

700

Maize Cutter

20,000

20,000

Water Pump

20,000

20,000

Freezer

22,000

22,000

Total

66,300

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

11.6.

Raw Material Requirements

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As already mentioned that are two major end products for foundry output; Small parts of
ceiling and pedestal fan and large parts of Pedestal. Following table shows raw material
requirement to process one ton of material for large fan parts:
Table 6: Feeding Requirement for Cows
Description

Kgs/day/animal

Rs./kg

Amount (Rs.)

Dry (silage)

25.00

6.00

150.00

Concentrate

4.62

35.00

161.70

Total

311.70
Table 7: Feeding Requirement for Buffalo

Description

Kgs/day/animal

Green Fodder

Rs./kg

Amount (Rs.)

50

Dry (silage)

25.00

6.00

150.00

Concentrate

5.00

35.00

175.00

Total

325.00
Table 8: Feeding Requirement for Calfs

Description

Kgs/day/animal

Rs./kg

Amount (Rs.)

Calfs younger than one year

Dry

6.6

6.00

39.4

Concentrate

2.2

35.00

120.0

Total Fodder

159.4

Calfs younger than one year

Dry

2.6

6.00

15.8

Concentrate

0.9

35.00

120.0

Total Fodder

11.7.

135.8

Human Resource Requirement

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

11.8.

Revenue Generation
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Table 9: Revenue Generation

Description

Units

Annual
Production

Milk Sales

Liters

33,288

10
September 2013

Rate (Rs./Unit)

Annual Revenue
(Rs.)

60

1,997,280

Pre-Feasibility Study

12.

Dairy Farming

CONTACTS:
Table 10: Suppliers List

Feed Suppliers

Scmen Suppliers

Hi tech feeds
Shadman cross ,Lahore
Dr Athar 03458444511

Alhaiwan Semen Production

Dr Farooq
03218695054

Punjnand Feeds
Dr Musadiq
0322 2668844

Hamza Dairy Mart

Maj.Dr. Muhammad Ramzan
40,first floor,sadiq plaza,the mall
Lahore, 0320-4011220

Doctors Dairy Feeds

203/7, UC-3, Cattle colony, Bin Qasim,
Karachi.
Phone: +92-21-5081923-27

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

Machinery Suppliers

Animal Suppliers

Dairy Solution (pvt) ltd.

177b ,Johar town ,Lahore
04235169450-1, 0300840 1680
info@dairysolution.com

Local Mandi s
Arifwala
Okara
Sargodha

WestFalia
Suite 623, Al Hafeez Shopping Mall,
Gulberg III, Lahore.
Phone:042-35884627-8
Consultants
Mr Major Ramzan
Dr. Rehan (Agrimasters)
210 Rewaaz Garden, Lower Mall,
Lahore.
Phone:042-37225666

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13.

Dairy Farming

ANNEXURE

13.1.

Income Statement

Income Statement
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
1,997,280
2,197,008
2,416,709
2,658,380
2,436,848
2,680,533
2,358,869
1,946,067
2,140,674
2,354,741
72,600
159,720
73,205
161,051
248,019
58,462
128,615
212,215
1,997,280
2,197,008
2,489,309
2,818,100
2,510,053
2,841,584
2,606,887
2,004,528
2,269,289
2,566,956
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10

Revenue from sale of milk

Other Income
Total
Cost of sales
Cost of goods sold 1
Medicine, Vaccination & Insemination Charges
Operating costs 3 (direct electricity & fuel charges)
Total cost of sales
Gross Profit

1,394,373
30,600
120,000
1,544,973
452,307

1,394,373
33,660
132,000
1,560,033
636,975

1,394,373
37,026
145,200
1,576,599
912,710

1,394,373
40,729
159,720
1,594,822
1,223,278

1,161,978
37,335
175,692
1,375,004
1,135,049

1,161,978
41,068
193,261
1,396,307
1,445,277

929,582
36,140
212,587
1,178,309
1,428,578

697,187
29,815
233,846
960,848
1,043,680

697,187
32,797
257,231
987,214
1,282,075

697,187
36,077
282,954
1,016,217
1,550,739

General administration & selling expenses

Administration expense
Depreciation expense
Amortization of pre-operating costs
Subtotal
Operating Income

240,000
6,630
10,091
256,721
195,586

263,367
6,630
10,091
280,088
356,887

289,008
6,630
10,091
305,729
606,980

317,147
6,630
10,091
333,868
889,410

348,025
6,118
10,091
364,233
770,816

381,909
6,630
10,091
398,630
1,046,647

209,546
6,630
10,091
226,267
1,202,311

229,948
6,630
10,091
246,669
797,012

252,336
6,630
10,091
269,057
1,013,018

276,903
6,630
10,091
293,624
1,257,115

Earnings Before Interest & Taxes

195,586

356,887

606,980

889,410

770,816

1,046,647

1,202,311

797,012

1,013,018

1,257,115

Interest on short term debt

Interest expense on long term debt (Debt facility : Bank 1)
Interest expense on long term debt (Debt facility : Bank 2)
Subtotal
Earnings Before Tax

1,533
142,025
143,558
52,028

2,095
125,049
127,144
229,743

562
106,674
107,236
499,744

86,784
86,784
802,626

65,255
65,255
705,561

41,951
41,951
1,004,697

16,726
16,726
1,185,586

797,012

1,013,018

1,257,115

Taxable earnings for the year

Tax
NET PROFIT/(LOSS) AFTER TAX

52,028
52,028

229,743
11,487
218,256

499,744
49,974
449,770

802,626
140,460
662,167

705,561
105,834
599,727

1,004,697
210,986
793,710

1,185,586
248,973
936,613

797,012
119,552
677,460

1,013,018
212,734
800,284

1,257,115
263,994
993,121

52,028
52,028

52,028
270,285
270,285

270,285
720,055
720,055

720,055
1,382,221
691,111
691,111

691,111
1,290,837
1,290,837

1,290,837
2,084,548
1,042,274
1,042,274

1,042,274
1,978,887
989,443
989,443

989,443
1,666,903
833,452
833,452

833,452
1,633,736
816,868
816,868

816,868
1,809,989
904,994
904,994

Balance brought forward

Total profit available for appropriation
Dividend
Balance carried forward

50%

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13.2.

Dairy Farming

Balance Sheet

Balance Sheet
Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

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

100,000
100,000

79,752
210,000
1,500,000

261,543
261,543

128,603
128,603

567,666
567,666

240,799
240,799

122,427
122,427

102,708
102,708

315,579
315,579

684,420
684,420

1,500,000
66,300
1,856,052

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

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

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

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

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

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

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

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

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

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

100,909
100,909
2,056,961

90,818
90,818
1,940,240

80,727
80,727
1,923,519

70,636
70,636
1,918,342

60,545
60,545
1,808,098

50,454
50,454
1,980,952

40,364
40,364
1,387,365

30,273
30,273
1,252,272

20,182
20,182
1,215,832

10,091
10,091
1,411,982

2,514,102

37,187
37,187

13,635
13,635

1,645,328
1,645,328

11,487
1,422,416
1,433,904

61,462
1,181,129
1,242,591

201,921
919,952
1,121,874

307,755
637,246
945,001

518,742
331,236
849,977

767,715
767,715

887,266
887,266

1,100,000
1,100,000

1,363,994
1,363,994

205,696
52,028
257,724
1,940,240

205,696
270,285
475,981
1,923,519

205,696
(250,000)
720,055
675,751
1,918,342

245,114
(250,000)
691,111
686,224
1,808,098

245,114
(500,000)
1,290,837
1,035,951
1,980,952

245,114
(750,000)
1,042,274
537,387
1,387,365

245,114
(750,000)
989,443
484,557
1,252,272

245,114
(750,000)
833,452
328,565
1,215,832

245,114
(750,000)
816,868
311,982
1,411,982

245,114
904,994
1,150,108
2,514,102

1,851,265
1,851,265

205,696

205,696
2,056,961

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13.3.

Dairy Farming

Statement of Cash Flow

Cash Flow Statement

Year 0
Operating activities
Net profit
Add: depreciation expense
amortization of pre-operating costs
Deferred income tax
Cash provided by operations
Financing activities
Debt facility : Bank 1 - principal repayment
Short term debt 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
Cash balance brought forward
Cash available for appropriation
Dividend
Cash balance
Cash carried forward

Year 1

Year 2

Year 3

Year 4

Year 6

Year 7

Year 8

Year 9

218,256
6,630
10,091
11,487
246,464

449,770
6,630
10,091
49,974
516,465

662,167
6,630
10,091
140,460
819,347

599,727
6,118
10,091
105,834
721,769

793,710
6,630
10,091
210,986
1,021,417

936,613
6,630
10,091
248,973
1,202,307

1,851,265
205,696

(205,936)
-

(222,912)
(37,187)
-

(241,287)
(13,635)
-

(261,177)
39,418

(282,706)
-

(306,010)
-

(331,236)
-

2,056,961

(205,936)

(260,099)

(254,922)

(221,759)

(282,706)

(306,010)

(331,236)

677,460
6,630
10,091
119,552
813,733

Year 10

52,028
6,630
10,091
68,749

800,284
6,630
10,091
212,734
1,029,739

993,121
6,630
10,091
263,994
1,273,836

(1,956,961)

(39,418)

(1,956,961)

(39,418)

100,000

100,000
100,000
100,000

(137,187)

(13,635)

261,543

558,170

439,063

715,407

871,071

813,733

1,029,739

1,273,836

100,000
(37,187)
(37,187)
-

(13,635)
(13,635)
-

261,543
261,543
261,543

261,543
819,713
691,111
128,603
128,603

128,603
567,666
567,666
567,666

567,666
1,283,073
1,042,274
240,799
240,799

240,799
1,111,870
989,443
122,427
122,427

122,427
936,160
833,452
102,708
102,708

102,708
1,132,447
816,868
315,579
315,579

315,579
1,589,415
904,994
684,420
684,420

14
September 2013

Year 5

Pre-Feasibility Study

13.4.

Dairy Farming

Useful Project Management Tips

Management

Knowledge of Business Operation:

Background
knowledge
and
related experience of the entrepreneur is a pre-requisite for starting this
business

Animal Selection:
Selection of disease free animals with established
standards of daily production

Quality Assurance Standards:

Whatever means required
quality standards need to be defined, this improves credibility

products

Marketing

Ads & Point of Sales Promotion: Business promotion and dissemination

through banners and launch events is highly recommended. Product
broachers from good quality service providers

Price - Bulk Discounts, Cost plus Introductory Discounts: Price should

never be allowed to compromise quality. Price during introductory phase may
be lower and used as promotional tool.

13.5.

Useful Links

Prime Ministers Office, www.pmo.gov.pk

Small and Medium Enterprise Development Authority, www.smeda.org.pk
National Bank of Pakistan (NBP), www.nbp.com.pk
First Women Bank Limited (FWBL), www.fwbl.com.pk
Government of Pakistan, www.pakistan.gov.pk
Ministry of Industries & Production, www.moip.gov.pk
Ministry of Education, Training & Standards in Higher Education,
http://moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
Government of Balochistan, www.balochistan.gov.pk
15
September 2013

Pre-Feasibility Study

Dairy Farming

Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk

Government of Azad Jamu Kashmir, www.ajk.gov.pk
Security Commission of Pakistan (SECP), www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
Dairy and Live Stock Departments
State Bank of Pakistan (SBP), www.sbp.org.pk

16
September 2013

Pre-Feasibility Study

14.

Dairy Farming

KEY ASSUMPTIONS

Milk Sale Price (cow) Rs.

60

Milk Sale Price (buffalo) Rs.

60

Capacity Utilization

100

Cow Ratio in the Herd

0.50

Purchase Price of a Cow (Rs.)

130,000

Purchase Price of a Buffalo (Rs.)

120,000

Sale Price of a Low Yielder cow (Rs.)

50,000

Sale Price of a Low Yielder buffalo (Rs.)

50,000

Sale Price of one year Male Calf (Rs.)

50,000

Milk Yield per Cow/day (liters)

12

Milk Yield per Buffalo/day (liters)

17
September 2013