Dairy Farm (25 Animals)

Presented by:

Muhammad Ayyub (10158) Awais Riaz (10149) Abrar Ahmed (10167) Murtaza Zaidi (10186) 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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Contd.
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 Cattle Buffalo Sheep Goat 2005-06 29.6 27.3 26.5 53.8 2006-07 30.7 28.2 26.8 55.2 2007-08 31.8 29.0 27.1 56.7

Production of Milk (000 tons)

Species
Milk (Gross Production) Cow Buffalos Sheep Goat

2005-06
39,596 13,407 24,723 34 664

2006-07
40,872 13,913 25,465 35 682

2007-08
42,199 14,437 26,239 35 700

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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 Shed for Cows Open Paddock for Cows Shed for Buffaloes Sq ft 2,300 2,300 500 Rate/Sq ft 300 10 300 Total Cost 690,000 23,000 150,000

Open Paddock for Buffaloes

Shed for Calves Open Paddock for Calves Stores for fodder & machine room Utensils & milk storage Servant Room, Wash room Silage Bunker Total Infrastructure Cost

500
692 692 150 150 268 1,697 9,249

10
300 10 300 300 400 100

5,000
207,600 6,920 45,000 45,000 107,200 169,700 1,449,420

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Feed for Animals

It includes dry matter and concentrate to increase animal productivity.
Dry Roughage
Summer Fodder Wheat Straw Rice Straw Oat Straw Maize/Sorghum Sugarcane Baggass Maize Sorghum Millet Stubble Mott Sadabahar

Green Roughage
Winter Fodder Berseem Alfalfa (Lucerne) Oats Grass Rye Grass Sugarcane tops

Cotton Seed Hulls

Guar

Daily Feed Requirements of Buffalo/Cow

Fodder Dry Concentrate Total Daily Requirement (kg) 9.38 4.62 Cost/kg 3.00 16.00 Amount 28.14 73.92 102.06

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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 Land cost Rs. 4,00,000

Infrastructure cost
Labor cost Machinery/ equipment Animal cost Operational cost Other cost (Raw material, Feed) Cash in hand Total

14,49,420
3,00,000 2,00,000 20,00,000 2,00,000 1,50,000 300580 50,00,000

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Believe and you will achieve

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