Estimated Gap analysis PAGEREF _Toc523993262

Estimated feasibility of 50,000 dairy animals Prepared By:Gohar Ahmed 13001129009Moazzam Ali 13001129008Sajid Ali 13001129005Zahid Bashir 13001129001Taimoor Ehsaan 13001129004Submitted To: Sir Khalil A ArabiDate of Submission: Contents TOC o “1-3” h z u Acknowledgement PAGEREF _Toc523993232 h 4Introduction PAGEREF _Toc523993233 h 5Livestock in Pakistan PAGEREF _Toc523993234 h 7The life of Dairy Cows PAGEREF _Toc523993235 h 8Modern Dairy Cow PAGEREF _Toc523993236 h 8Calving PAGEREF _Toc523993237 h 9Colostrum feeding PAGEREF _Toc523993238 h 10Liquid feeding period PAGEREF _Toc523993239 h 11Identification (tagging) PAGEREF _Toc523993240 h 12Dis-budding PAGEREF _Toc523993241 h 12Teat Removing PAGEREF _Toc523993242 h 13Tail docking PAGEREF _Toc523993243 h 13Castration PAGEREF _Toc523993244 h 14Weaning PAGEREF _Toc523993245 h 14Heifers PAGEREF _Toc523993246 h 15Reproduction PAGEREF _Toc523993247 h 15Estrous cycle PAGEREF _Toc523993248 h 15Heat PAGEREF _Toc523993249 h 16Calving Pattern PAGEREF _Toc523993250 h 17Housing PAGEREF _Toc523993251 h 18Conventional Barns PAGEREF _Toc523993252 h 19Loose Housing PAGEREF _Toc523993253 h 19Feeding PAGEREF _Toc523993254 h 20SWOT analysis of Dairy farming PAGEREF _Toc523993255 h 20Strength PAGEREF _Toc523993256 h 21Weaknesses PAGEREF _Toc523993257 h 21Opportunities PAGEREF _Toc523993258 h 22Threats PAGEREF _Toc523993259 h 22Legal Status of The business PAGEREF _Toc523993260 h 23Geographical location PAGEREF _Toc523993261 h 23Marketing Gap analysis PAGEREF _Toc523993262 h 24Competitive Analysis PAGEREF _Toc523993263 h 24Marketing Plan PAGEREF _Toc523993264 h 25Potential Target Market PAGEREF _Toc523993265 h 26Demographic target Market PAGEREF _Toc523993266 h 26Psycho graphical target customer PAGEREF _Toc523993267 h 27Justification of business PAGEREF _Toc523993268 h 27Justification of business PAGEREF _Toc523993269 h 28Role of Milk PAGEREF _Toc523993270 h 28Physical standard of farm PAGEREF _Toc523993271 h 28Human Resource PAGEREF _Toc523993272 h 29Regulatory Authority PAGEREF _Toc523993273 h 29PEST analysis PAGEREF _Toc523993274 h 29Financial Feasibility PAGEREF _Toc523993275 h 31Labour requirement: PAGEREF _Toc523993276 h 32Equipment and Machinery cost: PAGEREF _Toc523993277 h 33Automatic Herringbone Milking Parlor for Milking Cow PAGEREF _Toc523993278 h 35Total Project Cost PAGEREF _Toc523993279 h 42AcknowledgementThis report is taken under the supervision of Mr. Khalil A Arabi (Advisor Bs Agribusiness Management, UMT) and Dr.

Dilshad Hussain (lecturer). For the ability of writing we are thankful to Almighty ALLAH who blessed us with it. After this we are thankful to our mentor Mr. Khalil A Arabi who appreciated us for writing this feasibility report. We have provided with every possible guide line for how to finalize the report from our mentor.

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At the end we would like to thankful to our colleagues for boosting out morale. IntroductionIn Pakistan, Livestock sector contributes about 56.3 % of the agriculture and round about 11% agriculture GDP (AGDP). In livestock, Milk is the most important commodity.

Pakistan is ranked 4th number when it comes in production of Milk worldwide after China, India and USA. According to the national 29.6 million cows, 27.3 million bison, 53.8 million goats, 26.

5 million sheep and 0.9 million camels. However, finished the previous three decades, the domesticated animal’s part has just encountered a normal development of 2.9% because of poor monetary approaches.The development rate of populace is expanding by 2.05%.

The interest for animal’s items is expanding because of populace development and urbanization. Thusly, in the current circumstance, it is hard to take care of the demand for the required animals items. From 1999 to 2000, the Pakistani government had used 1213.5 M rupees for imported drain items as per the NCA (National Commission of Agriculture), and the legislature of Pakistan imported 1.

08 M huge amounts of meat to take care of the local demand.Wild oxen found in Pakistan make up 47% of Pakistan’s significant dairy creature’s populace giving more than around 61% of the aggregate drain delivered in the nation. Bison breeds found in Pakistan are Nili Ravi, Kundi and Aza Kheli. Nili Ravi is viewed as the best wild ox breed in world and known as Black Gold of Pakistan. Cows constitute around 53% of the national populace of real dairy creatures in Pakistan and contribute the offer of very nearly 35% to the aggregate drain generation in nation. The steers breeds found in the nation are Sahiwal, Cholistani, Red Sndhi, Achai, Bhagnari, Dajal, Dhanni, Gibrali, Kankraj, Lohani, Rojhan, and Thari. Out of these, Sahiwal, Cholistani, and Red Sindhi are primary dairy breeds and understood globally because of their unmistakable qualities. Other than very much characterized steers breeds, there are countless and crossbred dairy cattle in this nation.

Over most recent ten years, the significance of crossbred creatures has been expanded because of begin of the advancement in dairy area on business lines. The crossbred creatures are for the most part favored for business dairy cultivates because of their higher generation. Generally cross of nearby dairy animals (like Sahiwal and Cholistani) with imported bovines (like Holstein Friesian and Jersey) is requested by such homesteads.

Other than our neighborhood and crossbred creatures, imported creatures are likewise the piece of dairy cow group of Pakistan. Corporate Dairy Farms lean toward dairy creatures from different nations and run their homesteads on most current lines with global aptitude. Very nearly 95% of imported dairy creatures in Pakistan have a place with Australia while other 5% from Sweden. The types of these foreign made creatures are Holstein Friesian, Jersey and Freisian Jersey Cross.

Inside couple of months, American Cattle will likewise appreciate the four climates of our nation.In Pakistan, this business is facing severe problems whether it’s from supply side or demand side. High milk production yield are not very much present. Nowadays, farming in Pakistan has a bright future, although these projects need huge amount of finance but still they are profitable for the investors. In Pakistan, there are some multination and national brands that are running a successful business and there profit is outnumbered. In Pakistan, there is also a warm business of unhygienic milk and meat.

As the demand of these two commodities is very high the suppliers started to supply unhygienic meat and milk. Although strict quality measures are been held by Food Authorities but still the gap is not yet to be fulfilled. Livestock in PakistanPakistan exports, among other things, meat of large and small ruminants. It exports frozen and chilled carcasses, frozen and chilled meat, and other cuts with bone and preparations of bovine animals as well as fresh and chilled carcasses of lamb and sheep, fresh, chilled and frozen meat of goats, and frozen bone and boneless other meat and cuts of sheep, in addition to frozen edible offal, tongues and livers of bovine animals.

The Middle East seems to be its biggest market for meat products, while Afghanistan and East Asian countries like Vietnam seem to be the biggest markets for offal, tongues and livers etc. Pakistan exports a minute quantity and value of frozen, chilled and fresh meat and offal of camels to Middle East countries. Pakistan also exports large quantities of milk, cream, milk in powder, yogurt, butter milk, curdled milk, butter, dairy spreads, fats and oils derived from milk, and curd. Afghanistan seems to be the largest market for dairy products from Pakistan CITATION Imp171 l 1033 (Import and Export Statistics: Historical Data of External Trade: Export, 2017). Pakistan also exports leather and fish and fish preparations. The values of its leather exports have been declining over the past few years, nonetheless, it exported PKR 36,182.8 million of leather and leather products in 2016-17 CITATION Exp17 l 1033 (Exports by Commodities of last 5 years, 2017). Thus Pakistan has a ready and developed market in Middle East, Afghanistan and other Asian countries for its livestock and dairy products which could be easily exploited by a business venture.

Pakistan imports food and live animals as well as animal or vegetable oils and fats. The values of food and live animals imports have been steadily increasing over the past few years. During 2016-17 it imported PKR 332,265.7 million worth of food and live animals CITATION Imp17 l 1033 (Imports by Commodities of last 5 years, 2017). Pakistan imports, among other things, small numbers of pure bred breeding cows and occasionally bulls, other live bulls, cows and bovine animals mostly from Australia, and imports relatively small quantities as compared to its exports of frozen and chilled boneless meat of bovine animals, edible offal and livers of bovine animals, frozen carcasses, and other cuts with bone, as well as frozen and chilled carcasses of lamb and sheep, and other meats and cuts of sheep. In addition it imports considerable amounts of milk and cream of varying proportions of fat, considerable amounts of milk in powder form of varying fat proportions, butter, fresh cheese, other fats and oil derived from milk, large quantities of whey powder including different flavors, and other products consisting of natural milk, non-grated processed cheese, and grated or powder cheese, and small quantities of solid and non-solid sweetened milk and cream, butter milk, curdled milk, cream, curd, and dairy spreads, CITATION Import17 l 1033 (Import and Export Statistics: Historical Data of External Trade: Import, 2017).

Thus there is a large potential for import substitution. Quality, taste, branding etc. may be the factors that entice the import of these products despite domestic potential and capability to produce these. A business venture might be dedicated to benefit from this large, possibly high end, domestic marketThe life of Dairy CowsModern Dairy CowNowadays, a modern dairy cow of the finest breed can live up to 20 years but if we talk about on commercial basis it will culled in 6 years on average. She starts birth at the age of 3-4 years old. The average dairy cow can will eat 90lbs of food a day and drink about 50 gallons (190 litres) of water in a day.

A cow spends 6 to 8 hours in eating in a day. A cow needs 2 gallons of water to make 1 gallon of milk. CalvingThe theoretical target for calving index is 365 days (1 calf per year), however in other countries like UK, the average is near to 420 days. This greater than average length results in a drift in the calving pattern except for herds that calve all year around. If the farmer wishes to meet the theoretical target, the cow should be coming back in calf in the 12th week of lactation. However, this is difficult to achieve because at the same time the cow will be producing a high milk yield and losing weight.

Dairy cows should calve in small sheltered paddocks separate from other livestock. Use of these paddocks should be rotated to avoid an excessive bacterial build up. Alternatively, where there is a disease problem or when there is adverse weather, dairy cows should calve in maternity boxes (3.

6*3.6m) which must be disinfected after each calving. Ensure there are no sharp objects on which the calf or the cow can injure itself in the maternity box. Supply fresh bedding, which must be burned after use, for each calving. The cows first act after calving is to lick the calf dry.

This not only establishes a bond between mother and offspring but also reduces the risk of the calf becoming severely chilled through excessive heat loss from the evaporation of the foetal fluids. The stockman (labour) should be prepared to give the calf good rubdown especially in cold weather if the cow is unable to lick the calf dry and then disinfect the navel with the 20% iodine solution. Colostrum feeding Colostrum feeding has been shown to the single important factor in calf rearing because calves that receive inadequate colostrum are liable to excessive disease. Colostrum is also calf’s source of protection against the bacterial diseases which is likely to encounter in early life. The rate of absorption of the protein antibodies is greatest during the first six hours after birth. The calf should suckle its dam for at least the first 24 hours of its life. Colostrum is rich in energy, having a high oil content and energy is more important to the calf than in protein all this stage of life.

Colostrum is rich in vitamins A which is essential for the efficient growth. Liquid feeding periodThe amount of milk to be fed depends on the size of the calf and is usually 8 to 10% of its birth mass. Do NOT over feed because this may cause in digestive upsets. When restricted levels of milk are fed or “High dry matter” milk replacers are used, the calf will get insufficient liquid in its feed for its daily requirement’s and water must be freely available. Then remove the concentrates and water for half an hour during and after feeding milk otherwise calves may engorge themselves on these which results bloat(High accumulation of gas in stomach).Identification (tagging) In many countries, calves are mostly identified normally by a batch tag or a number tag in either both ears or one.

The tagging method should perform in 1st week or 2nd. Other method such as posting a number around its back through super-heated iron but it is very painful and can cause infection and other diseases as well. Dis-budding Basically this process is unknown as the process of removing buds so that calves can unable to grow horns. This method should be apply when calve is under 8 days. This process should be performing by applying caustic soda or hot iron on horn buds. Teat Removing Occasionally female is born with an extra teat which is called Supernumerary teat. This teat remove should be performing by a sharp knife or a blade. Some countries like USA, UK use anaesthesia to perform this method so the calve shouldn’t suffer in pain.

Tail docking Tail docking is basically a process of tail cutting. Cow tail is extra-long which results disturb labour in milking process. The done either by hot iron or tying a rubber band around its tail which stop the blood flow and results falling off. Castration It’s applied to male calves only. This should be done for male calve growth.

This method is done when calve is less than 8 days old. Other method used for older calves include surgically or using burdizzos. Weaning At the age of two weeks, calves are given barley straw or hay for chewing and it will help in the stomach development. Access of clean drinking water should be available for calves. – Calves are usually weaned (when they are no longer fed milk and solid food is fed instead) at around 8 weeks old, but some producers will choose to do this earlier to save costs. Calves can be vaccinated against certain bacterial or viral diseases and be given treatment for parasites. Vaccination usually requires a course of injections.Heifers Female cattle that are over 6 months old but have not yet given birth to a calf are called heifers.

At about 8 to 9 months old heifers may be branded for ease of identification by using an iron that has either been heated or cooled to below 100F. The time it takes for a heifer to reach puberty depends on her weight and breed, but will be between 8 and 16 months old. Farmers usually aim for their heifers to become pregnant at around 15 months of age so that they give birth when they are around two years old. Some farmers may aim for a lower puberty age so calving is before 2 years old, as they believe this gives greater production rates. This is achieved by altering their feeding regime to ease their weight, inducing puberty earlier.ReproductionEstrous cycle Estrous or standing heat is defined as a regularly occurring state of sexual receptivity during which the female will accept the male.

This is indicated in cattle by the cow standing to be mounted by a bull or other cows. Standing heat typically lasts for about 12-18 hours but some cows may stand as short as four hours or as long as 24 hours. The term estrous cycle refers to the whole sequence of hormonal and reproductive changes that take place from one heat period to the next. The length of the estrous cycle average is 21 days but may vary among individuals, with 17-24 days cycle lengths being common. Heat When a cow is in heat (receptive to mating), she will typically become more active and spend more time licking, sniffing another cow’s vulva and attempting to mount other cows. A cow on heat will mount others regardless of whether they are themselves in heat, but if they stand to be mounted it is likely that they are also in heat.Mating and Pregnancy: Cows are impregnated either naturally by a bull in the herd, or via artificial insemination (AI) carried out by the farmer.

The use of AI is widespread in the dairy industry and this may be because of ease, lack of suitable bull stock, the ability to choose different sires for different cows, or to choose the sex of the calf. For AI to be most successful, farmers sometimes use devices to help alert them to a cow coming into heat. Successful mating is very dependent on good body condition for the cow/heifer at mating. Being underweight can cause unsuccessful mating and an increased risk of calving difficulties, but being overweight can also cause problems. The breed of the sire (father of the calf) affects the ease of calving as cows that are cross bred with larger breed males may have calves too large to pass through the cow’s pelvis. This is particularly problematic for the heifer during her first calving and may result in a caesarean section. During pregnancy a heifer is kept in her rearing group.

The gestation period for a cow is around 283 days. Her diet needs to be monitored carefully to ensure that she continues to grow while pregnant, as she is not fully grown until about 3 years old.The cow produces milk immediately after, or even just before, giving birth. The farmer may start milking the cow straight away (but feeds the first milk (colostrum) to the calf), or the calf may be left with the mother to suckle for the first few days post calving. The cow will then be milked either once, twice or three times a day, depending on the dairy system. The farmer will often try to get the cow back in calf within 2 months of her giving birth, so that she produces one calf per year. However many farmers do not achieve this and cows often give birth every 400 days or more.Calving PatternSeasonal calvingAll cows in the herd give birth at a particular time of year and this is usually timed to match food supply.

Spring calving utilises the grass growing period of temperate climates, therefore ensuring plentiful food supply at pasture. Autumn calving means that cows can be fed a total mixed ration in the winter when their yield is highest and then be out at grass during the summer months while they are dried off. Good herd fertility is particularly important for this to work as cows must become pregnant at similar times.Batch calving it is similar to seasonal calving, but calving may occur at more than once in the year, i.e. cows may be divided into a spring calving group and an autumn calving group.

This again may be to ensure food availability or to utilise the milk prices, choosing peak lactation (just after the calf is born) at high price times. All year round calving, each cow in the herd calves at a different time throughout the year. This offers more even monthly milk production and does not rely on synchronised calving, but needs a feeding system that can sustain the herd consistently throughout the year. Farmers may also choose seasonal and batch calving to reduce labour costs by hiring extra staff only at peak labour times. Both these calving patterns have finite periods for calving and, consequently, conception.

All year round calving means that if a cow does not become pregnant from the first attempt, there is more flexibility for farmers to try again one or more times (a cow that does not become pregnant will be of no use in the dairy industry so will be culled or sold).Housing Around the world, dairy cows are kept in very different housing systems and herd sizes range from just a few, to thousands. In temperate climates, indoor housing is common during the wetter and colder months when there is a lack of grass at pasture. This is often the case for most of the year – around 5 to 7 months.There are three types of cow housing which are given below:Conventional barns.Loose housing.

Free Ranges.Conventional Barns Conventional housing is also known as stanchion barn. In the conventional barns, cows are confined together on a platform and kept tight by a stanchion or a chain. Men caring for animals are less exposed to adverse weather conditions. In the conventional, barns remains hygienic and disease prevalence. Loose Housing Keeping animals close in an open paddock or pasture throughout day and night except at milking time. The open paddock is provided with shelter along one side. A common watering tank is provided and fodder is fed in common mangers.

Concentrates are fed at the time of milking which is done in separate milking barn. Self-feeding is practiced in loose system of housing. The open paddock is enclosed by means of hall, walls or plan wire fences if convenient height. Almost every type of livestock can be managed in loose housing. This housing may be affected in heavy rainfall areas and in high temperature areas as it is open so the temperature might affect the animal’s health. These housing are cheaper to construct, much easier to expand and flexible in terms of number. In loose housing, animals feel more comfortable than other housing techniques.

Feeding For high yield nowadays, entirely a grass based diet is a complete feed for animals to produce 4000 litres milk per year. When we talk about concentrates which are used to supplement grass are most likely be grains and oil seed meals. Grass and concentrates may only provide enough energy for 5,000 litres of milk production/year, but a medium-high yielding cow will produce between 8,000 litres and 14,000 litres (more likely 11,000) a year. Total mixed ration (TMR) is a diet that includes hay, fermented grass (silage), maize silage and high energy grains like brewer’s grains, soy bean, cotton seed and citrus pulp. SWOT analysis of Dairy farmingStrengthDairy farming is one of the major field in business point of view and as well as providing raw materials to different fields. There are many multinational firms in Pakistan who are running their business very profitable and enlist in the most efficient firm in Pakistan. Pakistan is very popular in regarding its cow breed normally known as Sahiwal Cow and famous breed in Buffalos knows as Neeli Ravi.

Pakistan is ranked as 4th in Milk production. Pakistan is producing 42 million tons of milk annually. Punjab and Sindh provinces are the top producers of Milk. Main source of Milk in Pakistan is Buffalo.

In Pakistan, a multinational company like Nestle is one of the top dairy product sellers. Other national Organization like Sapphire dairies, Engro Foods, Haleeb Foods, Anhaar dairy products are providing processed milk to its consumers. Business of Fattening is not yet has a very glowing business right now. Pakistan is exporting live Beef meat in Arab countries. Frozen meat is been exported in China. Gap is always there is production of meat especially in export point of view.

Brands like Al-Shaheer, Zenith are providing quality meat (beef and mutton). WeaknessesAlthough farmer in Pakistan is not educated and they are not aware of modern techniques and ways, so there lies the production gap. Pakistan is not even fulfilling its own dairy need especially in the month of Ramadan. Shortage of Milk also appears due to shortage of fodder. From commercial point of view, breeds are not very much productive as compared to other breeds which are exist in other countries. Another factor is the non-seriousness behavior of Government.

Attack of different disease effect the milk production of animal. Un-Hygienic way of living also effect the animal production and health. Opportunities Opportunity in terms of Capital point of view in Pakistan has a bright future. Banks like Zarai Tarqiati Bank (ZTBL) and other private banks like Habib, UBL are providing Agricultural Loans. There are very few brands of Meat in right now in market and there is a huge chance of expansion of fattening.

Provincial government is also providing agricultural loans for needy farmers without any mark-up rate. Dairy products needs are higher than the supply. Products demand is high in local market but the demand is not fulfilled. Threats Chemicals components in milk are high as compared to other countries. Lack of awareness and knowledge in farmers and suppliers may affect the production rate. Due to rise in production cost results minimization of profit of the supplier and afterwards investors will decide to shut their business and invest the money in some other field.

There is also a disease in dairy animals which is probably known as Mastitis. Mastitis is an inflammation of the mammary gland or udder. Mastitis in dairy cows is caused by udder infections, usually resulting from bacteria introduced either during the milking process or from environmental contact. Examples include contamination from milking equipment, milking personnel, manure contamination or dirty stalls.

The tracing of this disease is quite difficult and most of the farmers don’t know about this disease. The symptoms of this disease can’t be seen easily in milk unless some tests should not be done. Unfortunately, Pakistan is also an effected country of Global warming. Temperatures of cities are day to day rising so there is difficult chance of animals to give high yield of milk.

Complete automated shed’s requires a huge investment so these sheds are not affordable for a local dairy farmer and results of this, the farmer can face a high rate of mortality or low yield of milk.Legal Status of The businessMainly there are three types of legal statuses of business in Pakistan. The legal status of this will be registered under the companies’ ordinance 2017.

The company will have share capitals or can be formed without share capitals. For i-e if the company have share capitals then it will be a Private company limited. A private limited company can be formed by two persons.Geographical location By allocating all resources which are essential for dairy farming, we have selected Depalpur road, Near Okara Bypass, Near to Lahore-Karachi GT road. Following are the reasons for selecting this area:This belt soil is high in minerals. PH level of this soil is perfect for feed crops of dairy animals. As near to GT road, reaching to other cities will be easy and will require less time.

Labour can be easily found in this area as this area is basically a Potato growing area and in a potato growing area, labour is always available in this area. Sahiwal city is a major market of Milk and location is quite near to Sahiwal so most probably supply of milk can be easily competed. Marketing Gap analysisCompetitive Analysis Pakistan is the 4th largest milk producing country in the globe. In Pakistan, there are many multinational groups which are selling their products and generating revenue.

Organizations like Nestle, Unilever, P;G etc are the groups who are investing in FMCGs products day by day. In Pakistan, Nestle has a huge contribution in Dairy. Nestle is supplying Milk, Yogurt, butter, cream, cheese etc market and gaining maximum market share of the dairy sector in Pakistan. National companies are also trying to be tough competitors. National companies like Engro, Nurpur, Shakarganj (good milk) etc has also a great share in Pakistan dairy sector. National companies have also a wide range of dairy products as compared to Nestle.

In recent months, honourable chief justice of Pakistan justice Saqib Nisaar has ordered to perform the tests of every packet milk in Pakistan and ordered stop selling those milks who found unhealthy and harmonic. Due to this, a lot of companies has to change their setups and started new product lines. Some milk companies vanished in market due to the quality of the milk which didn’t satisfy the Supreme Court. In Pakistan, mostly people like to buy open milk from a milk shop as they can see milk with their eyes and satisfy themselves. Open milk which is not 100 % pure and hormone free is Rs 75 to 85 per/litre depend on availability and milk quality.

In some areas, shopkeeper are selling Rs 100 to 100/liter by saying that the milk we sell is pure but it can be proved by performing LR tests and typical method i-e dropping few drops of nitric acid in milk to check the debasment in milk. In the quoted farm house, we will be selling milk between Rs 85 to 100 /liter and the milk will be guaranteed fresh and hormone free. No chemical element will be added in milk for preserving it. For preserving, we will be maintaining the temperature of the milk to 4 C in case of transporting and selling to others. We will register our farm milk from governing bodies such as Punjab Food Authority and PCSIR. Marketing PlanPotential Target MarketMilk is an every household consume item. Milk is an essential element for the growth of human being. Bi-products of milk such as Butter, milk, cheese and yogurt is also used in every household.

Although Pakistan is listed in the top milk producing countries in the world but still there is a huge production gap. Demand of milk is much higher than the production. Milk has no special target market. It is used in middle class, lower middle, upper middle and elite classes. Farm house location is near to Sahiwal, Okara, Depalpur, Baseerpoor, pakpattan, Arifwala and other small towns. But as the milk rate in the above areas are from Rs 65 to 80 maximum, so we will sell it in the Lahore territory. In Lahore, pure milk which is still having some additives is from Rs 85 to 100/litre and pure milk is from Rs 105 to 120/litre.

Areas such as Bahria Town, DHA EME, DHA Phase 1 to 5 have consumer in thousands which are willing to pay a handsome price for the pure milk, however newly developed areas such as Wapda town, Valencia Housing, NFC housing, NESPAK housing etc housing societies have a potential where milk will be sale on a large quantity. Farm location will also affect the customer psyche he will think that milk is supplied from a city which is famous for its dairy product. Demographic target Market Milk is rich in vitamin C which is essential for bone strong and growth and other growth element. Milk is consumed by every age of human but the consumption in children is far above than other category. Milk boost up the growth of children and give them strength and stamina. Although milk is consumed by every age of people but other category such as teenagers, adults, married peoples are also a target market of milk. Although surveys have been taken and the results shows that milk is almost consumed by every household but in some areas where there are kids from 3 years to 12 years have more consumption of milk. Psycho graphical target customerNowadays, people are very conscious in buying of the pure whether they had to pay extra or has to go a bit far for buying.

Peoples with knowledge regarding purity and impurity will be the buyer of the milk. We will deliver milk which will be free of any chemical or preservative which will attract the people so they will definitely buy the milk whether we will sell with some extra price which will be higher than ordinary market price. The high price strategy will also click the customer psyche that he is 100% sure that he is buying the pure. Justification of businessJustification of businessBusiness will start with the starting of 10,000 cows and with the passage of the time reproduction will take place though AI (artificial insemination). We will sell milk in Lahore territory with the price of Rs 110/litre. We will sell continuously milk.

Milk will be packed in Polythene pack and un-pasteurized. Packaging of milk will only be 0.5 litre and 1.0 litre. If the production is excessive then we will supply milk to other local companies. Role of MilkMilk is a complete human diet.

Milk in enriched in vitamins calcium, magnesium, selenium, riboflavin (vitamin B2), vitamin B12 and pantothenic acid (vitamin B5) which are helpful for the growth of human body. Most of the countries recommend at least 200 ml of milk per day for a person. An average cow milk provides 21% of protein, micro nutrients and 8 % of calories.

BY overviewing the statistics of 2013 by FAO, 85% of the total milk production comes from cows. Physical standard of farmTotal area of the farm house will be 800 Acre in which the cow shed size will be 99.6 Acre. Open paddock for the cows will be 99.6 acre. Sheds for calves will be 27.

5 acre and paddock for calves will also be 27.5 acre. Store for fodder, concentrate and machine room will be 0.

4 acre. Storage for utensils and milk storage will 0.4 acre.

Labour colony area will be 42.4 acre. Area for bunker silage will be 425.

2 acre. Human ResourceLabour is required to perform different tasks on farm side. For example watering, feeding and milking and care of animals etc.

10 cows can be easily handle by 1 person. There will be 10,000 workers which will be responsible for handling all the animals. There will be only 1 farm manager and 2 assistant farm manager. There are total 8 supervisors who will supervise the labour.

For security purpose, there will be 4 security guards. Regulatory Authority Milk quality will be approved through Punjab food authority (PFA) and the tests will be confirmed by Pakistan Council for Scientific and Industrial Research (PSCIR). PEST analysisPolitical: This business is not for a specific class in Pakistan. It is for the whole nation. Every household consume milk in good quantity. This business is not harmful for environment and don’t disobeys environmental protection law.

Dairy business requires a huge amount of labour and by commercial point of view, lots of labour is require however labour laws might be effect the business because labour in the dairy field is not high. Nowadays, USAID is providing different funds for the agriculture and livestock sector of Pakistan and also supporting dairy sector by providing helpful machinery and equipment’s to needy farmers to help them maintaining their business. Pakistan is not exporting the Milk in any Europe or mille east countries due to some toxin matters present in the milk.

Ban of export might affect the business but it can be resolved by adopting special techniques and procedures. EconomicalBy continuously rising of US$ rate as compare to Pakistan Rupee, a storm of inflation will rise in the economy. FMCGs prices will be increased. Increasing rate of oil prices will affect the costs of the business and prices of dairy will be increased in aspect to overcome the cost. Cost of machinery and other biological products (i-e Siemen) will increase due to the high exchange rates. All factors will affect automatically increase in dairy product prices.

SocialAccording to the CENSUS 2017, the total population of the country is 207,774,520 in which household is 32,205,111 individuals. In almost every household, milk is consumed in a huge quantity. Infants and children have a high rate as compared to teen agers and bachelors.

Different NGO’s in Pakistan is creating awareness is use of Milk as high as people can due to a lack of vitamin in every 2 out of 5 people in our society.TechnologicalIn Pakistan, there are few plants which are fully automated. Mostly are typical farm houses which are following the rule of 90’s.

In Pakistan, there are only 2 to 3 breeds which are mainly used for milk purposes. Latest dairy technology is not cheap, investors has to spend a lot of investment on it. Lack of awareness and education is also a bottleneck of adopting the technology.

Financial Feasibility Land Requirement As discussed with the above, land is purchased on Okara-depalpur road, with a total area of 800 acres. Business will be start with 10,000 animals and in about 10 years, the herd size will exceed to 50,000 animals. For saving animals from severity of weather, most of the land will be used shed purpose. There will be separate shed for calves. There will be a colony for the labour.

Store room for machinery and other physical items. Store room for milk utensils. Following are the detail land acquisition for the farm:Total Infrastructure CostTotal infrastructure cost for the project is given below: Labour requirement: Labour will be required for following purposes: WateringFeeding Milking Care Management include calves and cows. Administration There will be a total 1014 labour required for managing a 10,000 animal’s dairy farm.Labour Salaries: Salaries for the whole staff in terms of monthly and annually are given below: Equipment and Machinery cost: Equipment and machinery cost for the whole project is given below: Calf FeederCalf feeder is used for feeding milk. In commercial farming, farmers try their best to remove the habbit of direct feeding of calf from cow teat’s.

They use a calf feeder for for feeding the calf’s. Calf feeder DescriptionStockman Calf Feeders are an Irish made strong and sturdy Calf Feeder.These Calf Feeders has a number of key features such as:Galvanised steel hangers that will fit most types of gates and fences.

22mm hole that allows a wide variety of teats to be fitted.The teat well allows for maximum drainage.Teats are well positioned out so that the calves are comfortable.Made from a high standard material, that makes them easy to clean.

Milking MachinesMilking machine is used for milking purposeMachine Name: Automatic Herringbone Milking Parlor for Milking CowMachine Description: The fish-bone type frame is optimal of each separated units with flexible units. Suspended structure: there is a stand column, fixed frame and adjustable arch at each end of the cow place. Herringbone Milking Parlor is used more for dairy.They are suitable for small, medium and large farm. The consist from 2×4 to 2×32 to meeting different.Support frame: every two cow places have a carriage, fixing is easy and convenient, choosing different automation degree of guardrail, groove edge is made of stainless steel or galvanized plates, fixed by bolts or cement. Three choice for door control: manual control, vacuum drive and pneumatically drive, which meets the different requests.Features:Install easily and quickly.

Layout compact,save space.High efficiency and low cost.Tunnel depth right,easy to observe and operate.Could improve cow’s milk production.

Could suit different cow/cattle/dairy size.Chiller: There will be 200 chillers for storing the milk. Each chiller consists of 1000 litres.Mainly used for cool and storage for fresh milk, also can be used to cooling or storage for other liquid product. The cooling tank is the key equipment for the mechanical milking system in the dairy farms. Also widely used in the manual milking farm and milk collection centers, and milk production plants, which can keep the fresh milk at best state and prevent the bacterial growing.1.

The tank wall use advanced dimple pad as evaporator exchange the heat directly with the milk inside.2. The refrigeration compressor is imported from France, which composed of full closed compressor and imported expanding valve and electromagnetism valve.

The system has reliable midpoint protection device to protect the compressor being burned resulted from the overloading or system trouble.3. All of SUS 304 or 316L stainless steel, with CIP, cleaning ball and Auto-stirring system.4. with high insulation by PU. Generator:Generator will not be purchased as new.

It will be purchased as in Re-condition. Generator model and type:Caterpillar 3512A Diesel Generator. 12 cylinder. Max power 1000 KW. 950 RatedWater Pump: Industrial water pump will be used to fulfil the needs of the dairy farm.

Company Name:Anhui Xingqiu Shengtang PumpsCooling Pads:Cooling pads are used for cooling purposes. It will reduce the temperature resulting comfort for cows living. Company name: Shangdong Kunzenf Mechenical Equipment Technology Co. ltdVentilation Fans:Ventilation fan is used for ventilation purposes. Its function reduces the temperature and provides comfort for animals.

It is less noisy and smart is size. Company name: Yonghecheng Fans Industry Co Ltd.Calf Cages: Supplier Detail: Anping Pengming Hardwiare Mesh Co.,Ltd.Specifications:panel size: (L) 1200mm × (H) 1800mmpipe diameter: 32mmpipe thickness:2.0mmsurface treatment: hop-galvanize Total Project CostThe selection of cow is based on production, stability and availability. We have selected Holstein’s cow for the herd size of 10,000 animals.

This feasibility cost with a total with a scope of 50,000 animals within the next ten years. Total Project cost in terms of Pakistani Rupee is given below: