Dairy Farm (25 Animals)

Presented by:
Murtaza Zaidi (10186)
Muhammad Ayyub (10158)
Abrar Ahmed (10167)
Awais (10149)
Aqib Raza (10135)

Presented to:
Prof. Muhammad Rafiq
Brief Introduction
 Dairy farming is not an organized sector in Pakistan.
 The demand of commercial dairy farms increase day by
day and there is a much market potential and growth in
this business.
 The name we suggested for the business is, ‘Natural
Dairies’.
 This project requires nearly 5 million rupees.
 70 % of the money is invested equally by us and other
30 % is borrowed from the bank.
 Our target market includes; local households, Gawalas
and o milk processing companies.

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 Natural Dairies

“Khalis doodh ka markiz”

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SWOT Analysis
Strengths
 Favorable breeding backgrounds
 High domestic consumption
 Own Supplier
 Good milk quality.
 Full family involvement

Weaknesses
 High production costs
 Poor management level in quite a few cases
 Low application of research work

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Cont’d…….
Opportunities
 Govt. of Pakistan & Sate Bank of Pakistan priority sector.
 Dairy products needs are much higher than supply.
 Commercially viable sector with great credit potential and
absorption capacity.
 Value added dairy products are in demand.

Threats
 High risks of diseases in live stock
 Power Crises
 Water Shortage
 Inflation

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 Market Opportunity
 Pakistan is the fifth largest milk producer in the world.
 Largest irrigation network in the world.
 Livestock is contributing about 52.2% to the agricultural
sector of Pakistan.
 The milk market is growing at a growth rate of 4.5%
annually with increase in milk consumption.
 Metropolitan cities are the major markets for the sale of
milk.

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 Population of livestock (million)

Species 2005-06 2006-07 2007-08

Cattle 29.6 30.7 31.8
Buffalo 27.3 28.2 29.0
Sheep 26.5 26.8 27.1
Goat 53.8 55.2 56.7

Production of Milk (000 tons)

Species 2005-06 2006-07 2007-08

Milk (Gross Production) 39,596 40,872 42,199
Cow 13,407 13,913 14,437
Buffalos 24,723 25,465 26,239
Sheep 34 35 35
Goat 664 682 700

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Target Customers
Local people
 These are the local customers in surrounding areas who directly buy
the milk from the farm
Gawalas
 The local term used for milkman. They are the business customers
and further sell the milk to households in nearby towns.
Milk Collection Companies
 Nestle and other local companies who have plants for processed
milk are also focused as target customers.
Hotels and Bakeries
 We have planned to deliver the milk in major hotels and bakeries in
Khanpur and other cities of District R.Y.Khan.

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Farm Requirements
Land:
 About 1.0 acres of land will be required. (25-120 animals maximum)
 The land cost per acre in our proposed location (Hawali Greeb Shah
near Khanpur) is at least 400,000.
Labor:
 A supervisor (farm manager) will be hired to supervise all the farm
activities.
 Three farm workers will be hired for handling 25-animals.
Machinery & equipment:
 Water pumps
 Milk utensils.
 Fodder Chopper
 Freezers
 Tanks
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 Total Infrastructure Cost
Description Sq ft Rate/Sq ft Total Cost

Shed for Cows 2,300 300 690,000

Open Paddock for Cows 2,300 10 23,000

Shed for Buffaloes 500 300 150,000

Open Paddock for Buffaloes 500 10 5,000

Shed for Calves 692 300 207,600

Open Paddock for Calves 692 10 6,920

Stores for fodder & machine room 150 300 45,000

Utensils & milk storage 150 300 45,000

Servant Room, Wash room 268 400 107,200

Silage Bunker 1,697 100 169,700

Total Infrastructure Cost 9,249 1,449,420

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 Feed for Animals
It includes dry matter and concentrate to increase animal productivity.

Dry Roughage Green Roughage

Summer Fodder Winter Fodder
Wheat Straw Maize Berseem
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

Daily Feed Requirements of Buffalo/Cow

Fodder Daily Requirement (kg) Cost/kg Amount

Dry 9.38 3.00 28.14

Concentrate 4.62 16.00 73.92

Total 102.06

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Farm Outputs
Lactation Period
 The lactation period is the period during which the animals yield milk.
Generally the lactation period of cows is 280 days and that of buffaloes is
305 days.
 The average milk yield of buffaloes is estimated at 1500 to 2300 liters per
lactation
Male Calves
 3 months old male calves will be sold at the farm sooner after birth for Rs
7,000-8,000 per animal.
Milk:
 The milk will be sold to Gawalas, milk processing companies, house
holds & milk shops @ price range Rs. 32- 38/liter.
 Milk can be stored in a milk chiller / freezer, if milk collection is not
possible in the evening.

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Financial Projections
 We have invested 5 million rupees for our proposed
dairy farm. The details are as:

 70% of the moony is invested equally by three friends

 Other 30% of the require money will be borrowed from the
bank.

 We will achieve breakeven at the mid of second year.

 The third year will increase the profits and at the end of
third year, we will get back the money borrowed from
the bank.

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 Farm inputs cost: (in rupees)
Details Rs.

Land cost 4,00,000

Infrastructure cost 14,49,420

Labor cost 3,00,000

Machinery/ equipment 2,00,000

Animal cost 20,00,000

Operational cost 2,00,000

Other cost (Raw material, Feed) 1,50,000

Cash in hand 300580

Total 50,00,000

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 Believe and you will achieve

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