Pre-Feasibility Study
(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 Complex, 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
Khyber Pakhtunkhwa REGIONAL OFFICE
Balochistan
3rd Floor, Building No. 3,
Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
December, 2013
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 .................................................................................................................................... 4
8. INSTALLED & OPERATIONAL CAPACITIES .......................................................................................... 5
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT ............................................................................... 6
10. POTENTIAL TARGET MARKETS ........................................................................................................ 6
11. PROJECT COST SUMMARY .................................................................................................................. 6
11.1. PROJECT ECONOMICS ............................................................................................................................... 6
11.2. PROJECT FINANCING ................................................................................................................................ 7
11.3. PROJECT COST .......................................................................................................................................... 7
11.4. SPACE REQUIREMENT............................................................................................................................... 7
11.5. MACHINERY AND EQUIPMENT ................................................................................................................... 8
11.6. RAW MATERIAL REQUIREMENT ................................................................................................................ 9
11.7. HUMAN RESOURCE REQUIREMENT ........................................................................................................... 9
11.8. REVENUE GENERATION ............................................................................................................................. 9
12. CONTACTS OF CONSULTANTS AND SUPPLIERS ......................................................................... 10
13. ANNEXURE ............................................................................................................................................. 11
13.1. INCOME STATEMENT ............................................................................................................................... 11
13.2. BALANCE SHEET .................................................................................................................................... 12
13.3. STATEMENT OF CASH FLOW .................................................................................................................... 13
13.4. USEFUL PROJECT MANAGEMENT TIPS .................................................................................................... 14
13.5. USEFUL LINKS ........................................................................................................................................ 14
14. KEY ASSUMPTIONS .............................................................................................................................. 17
1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a
general idea and information on the subject. 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
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, 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 it’s 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 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 Minister’s ‘Youth Business Loan’, 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)
beneficiaries, through designated financial institutions, initially by the National Bank
of Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of 1
year grace period, and a debt: equity of 90: 10 will be disbursed to SME
beneficiaries+ across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa,
Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered
Tribal Areas (FATA).
5. EXECUTIVE SUMMARY
Dairy Farm Project pre-feasibility has been developed to attract small investors.
Twelve animals (6 cows and 6 buffaloes) are raised on specific feed to gain high
milk yields. Dairy farming business involves housing, breeding, feeding, watering,
disease control and hygienic production of milk on farm.
A dairy farm with a herd of 12 animals (6 cows and 6 buffaloes) needs a total
investment estimated at Rs. 2.06 million out of which the capital cost of the project
is Rs.1.96 million for animal purchase and building construction. The rest is used to
meet the working capital requirement.
The project is expected to achieve revenue of Rs. 2.10 million in the first year with
projected IRR and Payback of project being 34% and 3.54 years respectively. The
farm will provide employment opportunity to 01 individual other than the owner /
manager. Legal status of the project is proposed as sole proprietorship.
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT
A dairy farm is proposed to be established on a rented land, with a constructed
structure having total area of 3,174 sq.ft. The proposed model involves 12 animals
(6 cows and 6 buffaloes) to achieve milk production of 35,040 liters by the end of
first year. Milk will be primarily sold to bulk buyers at the rate of Rs.60 per liter with
an annual price increase of 10%. However, the farm will also offer sale to domestic
individual consumers.
7. CRITICAL FACTORS
1. Background knowledge and related experience of the entrepreneur in dairy
farm operations.
2. Application of good husbandry practices such as;
• Selection of dairy breed: good local dairy buffalo breeds namely Nili-Ravi
and Kundi and cattle breeds such as Sahiwal, Red Sindhi, Tharparkar
and Cholistani. Crossbred cattle may also be considered as
crossbreeding is recommended for non-descript cattle with semen of
local high producing breeds like Sahiwal, Cholistani, Red Sindhi etc. or
exotic breeds like Holstein Friesian, Jersey etc.
• Selection of good dairy animals with excellent body condition and udder
health: average daily milk production of 10 liters or above for buffaloes
and 12 liters or above for cows in 2nd or 3rd lactation, essentially with no
disease history.
• Housing should be dry, comfortable and airy with proper drainage of
dung, urine and waste material.
• Feeding: Animal should be fed 1 kg of concentrate feed per 3 litres of
milk produced, hence animal with 10 litres of milk production would be
offered 3-3.5 kg of concentrate. Additionally, urea molasses blocks and
salt blocks can help in better milk production.
• Watering: Supply of clean drinking water in clean troughs i.e. 50 to 80
liters of water consumption/animal/day round the clock maintains the milk
production capacity of the animal.
• Breeding: Efficient and timely Artificial Insemination (AI) of good genetic
worth is a key to success in good breeding programs of herd.
• Disease management: Hygienic and clean milking twice a day (morning/
evening) lowers the chances of mastitis as udder health and hygiene is
most important in dairy animals. Follow the recommended vaccination
schedule especially for Foot and Mouth Disease.
• Female calf care and heifer management as it is very important in
maintaining dairy farm production.
• Selection of good productive animals and culling of uneconomical
animal.
• Record keeping for milk production, calving, AI, vaccination etc.
• Proper storage of milk preferably at temperature of 4 Oc and transported
at 11 Oc temperatures.
8. INSTALLED & OPERATIONAL CAPACITIES
Production capacity is based on project size. The Pre-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 obtain maximum milk production round the year. The dairy farm
will have the capacity to produce 35,040 liters of milk per annum.
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT
Dairy farm is a viable business proposition for both rural and peri-urban areas of
Pakistan. There is almost equal demand for milk in both developed and semideveloped
cities across the country, hence, from the demand point of view the said
project offers good investment opportunities for small scale investment in all
provinces of country.
10. POTENTIAL TARGET MARKETS
Domestic consumers, milk processors, dairy companies, milk collection companies
and contractors are the major clients of dairy farms.
11. PROJECT COST SUMMARY
A detailed financial model has been developed to analyze the commercial viability
of dairy farm project under the Prime Minister’s Youth Business Loan. 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.
11.1. Project Economics
All the figures in the 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)
34%
Payback Period (Year)
3.54
NPV
Rs. 3,631,914
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 its
target milk production or 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.
11.2. Project Financing
Description
Details (Rs.)
Total Equity (10%)
205,696
Bank Loan (90%)
1,851,265
Markup to the Borrower (%age/annum)
8%
Tenure of the Loan (Years)
8
Grace Period (Years)
1
Following table provides details of the equity required and variables related to bank
financing;
Table 2: Project Financing
11.3. Project Cost
Following operational requirements have been identified for 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
2,056,961
11.4. Space Requirement
The area has been calculated on the basis of space requirement for shed area,
open paddock, servant rooms and stores. Following table shows calculations for
project space requirement;
Table 4: Space Requirement
Description
Area Sq.ft
Shed for Cows
600
Open Paddock for Cows
600
Shed for Buffalos
600
Open Paddock for Buffalos
600
Stores for Fodder, Concentrate & Machine
150
Utensils & Milk Storage
150
Servant Room, Washroom
90
Silage Bunker
384
Total
3174
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 the proposed
dairy farm:
Table 5: List of Machinery and Equipment
Description Unit Rate (Rs.) Qty Cost (Rs.)
Calf Feeder 1,200 3 3,600
Teat Dip Cup 350 2 700
Maize Cutter 20,000 1 20,000
Water Pump 20,000 1 20,000
Freezer 22,000 1 22,000
Total
66,300
In addition to above, other equipment, such as fodder cutter, water pump and some
buckets etc. are required.
11.6. Raw Material Requirement
Following tables show raw material requirement to run the proposed dairy farm;
Table 6: Feeding Requirements for Cows
Description Kgs per animal per day Rs per Kg Amount (Rs.)
Silage 25.00 6.00 150.00
Concentrate 4.62 35.00 161.70
Total 311.70
Table 7: Feeding Requirements for Buffaloes
Description Kgs per animal per day Rs per Kg Amount (Rs.)
Silage 25.00 6.00 150.00
Concentrate 5.00 35.00 175.00
Total 325.00
11.7. Human Resource Requirement
One milkman will be required for milking and taking care of animals, whereas owner
/ manager will look after the overall business operations.
11.8. Revenue Generation
Table 8: Revenue Generation
Description Units Annual
Production
Rate
(Rs/Unit)
Annual Revenue
(Rs)
Milk Sales Liters 35,040 60 2,102,400
12. CONTACTS OF CONSULTANTS AND SUPPLIERS
Table 8: List of Consultants and Suppliers
Consultants Consultants
Dr. M. Sarwar
Dean, Faculty of Animal Husbandry
University of Agriculture, Faisalabad
Ph: +92-41-9920161-70
Prof. Dr. Muhammad Younas
Department of Livestock Management
Faculty of Animal Husbandry
University of Agriculture
Faisalabad, Pakistan
Ph: 041-9200161-170
Dr. Muhammad Abdullah
Dean, Faculty of Animal Production
University of Veterinary & Animal
Sciences, Lahore
Ph: 042 - 99211374
Dr. Nawaz Saeed
Director General (Extension)
Livestock & Dairy Development
Department (L&DD), Govt. Of Punjab, 16-
Cooper Road, Lahore,
Ph: 042-99201117
Feed Suppliers AI / Semen Suppliers
Hi-Tech Feeds,1-A, Shadman Chowk Jail
Road, Lahore Phone : +92-42-37564503
Fax : +92-42-37564508
Al - Haiwan Sires, 5-Km, Pakpattan Road,
Sahiwal, Tel. 040-4501271-72
Doctor’s Dairy Feeds
203/7, UC-3, Cattle colony, Bin Qasim,
Karachi.
Phone: +92-21-5081923-27
Altaf & Co. , Altaf & Co Plaza,16/1,Out Fall
Road, Lahore, Tel: 042-35763411-4,
www.altafandco.com
Alhalal Wanda
Al-Halal Livestock Concern Company
Super High Way Jahania
Tel. 065-2002373
Ghazi Brothers
B-35 KDA Scheme no 1, Mian Muhammad
Shah Road, Karachi.
Phone: 021-4543579, Fax: 021-4543763
ICI Pakistan Cattle Feed
63-Mozang Road Lahore
Tel. 042-36370042
Machinery Suppliers Animal Suppliers
Kurdson Industries
Sabri Road, Angoori Scheme,
Baghbanpura, Lahore
042-36843472
Local Animal Mandies (c/o Provincial
Livestock & Dairy Development
Departments) e.g.,Arifwala, Pakpattan,
Okara, Sargodha, Gujranwala etc.
Income Statement
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 2,102,400 2,417,760 2,780,424 3,197,488 3,064,259 3,523,898 3 ,241,986 2,796,213 3,215,645 3,697,992
Other Income - - 72,600 159,720 73,205 161,051 248,019 58,462 128,615 212,215
Total 2,102,400 2,417,760 2,853,024 3,357,208 3,137,464 3,684,949 3 ,490,005 2,854,674 3,344,260 3,910,207
Cost of sales
Cost of goods sold 1 1,394,373 1,533,810 1,687,191 1,855,910 1,701,251 1,871,376 1,646,811 1,358,619 1 ,494,481 1,643,929
Medicine, Vaccination & Insemination Charges 30,600 37,026 44,801 54,210 54,662 66,140 6 4,024 5 8,102 7 0,303 85,067
Operating costs 3 (direct electricity & fuel charges) 120,000 132,000 145,200 159,720 175,692 193,261 212,587 233,846 257,231 282,954
Total cost of sales 1,544,973 1,702,836 1,877,193 2,069,840 1,931,605 2,130,778 1 ,923,422 1 ,650,567 1 ,822,015 2,011,950
Gross Profit 557,427 714,924 975,831 1,287,367 1,205,859 1,554,171 1,566,582 1 ,204,107 1 ,522,245 1,898,257
General administration & selling expenses
Administration expense 240,000 264,000 290,400 319,440 351,384 386,522 4 25,175 4 67,692 514,461 565,907
Depreciation expense 6,630 6,630 6,630 6,630 6,118 6,630 6,630 6,630 6,630 6,630
Amortization of pre-operating costs 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 1 0,091 10,091
Subtotal 256,721 280,721 307,121 336,161 367,592 403,243 4 41,896 484,413 5 31,182 582,628
Operating Income 300,706 434,203 668,710 951,206 838,267 1,150,927 1,124,687 7 19,694 9 91,063 1,315,629
Earnings Before Interest & Taxes 300,706 434,203 668,710 951,206 838,267 1,150,927 1,124,687 719,694 9 91,063 1,315,629
Interest on short term debt - - - - - - - - - -
Interest expense on long term debt (Debt facility : Bank 1) 153,654 140,672 123,609 105,130 85,117 63,443 39,970 1 4,549 - -
Interest expense on long term debt (Debt facility : Bank 2) - - - - - - - - - -
Subtotal 153,654 140,672 123,609 105,130 85,117 63,443 39,970 14,549 - -
Earnings Before Tax 147,052 293,531 545,101 846,077 753,150 1,087,485 1,084,717 705,146 9 91,063 1,315,629
Taxable earnings for the year 147,052 293,531 545,101 846,077 753,150 1,087,485 1,084,717 705,146 991,063 1,315,629
Tax - - 14,510 49,411 35,472 85,623 85,207 3 0,515 71,159 119,844
NET PROFIT/(LOSS) AFTER TAX 147,052 293,531 530,591 796,665 717,678 1,001,862 999,509 6 74,631 9 19,904 1,195,785
13. ANNEXURE
13.1. Income Statement
Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Current assets
Cash & Bank 100,000 263,773 368,446 707,627 1,329,304 1,837,528 2,658,926 3 ,454,083 3 ,844,248 4 ,852,032 6,184,381
Total Current Assets 100,000 263,773 368,446 707,627 1,329,304 1,837,528 2,658,926 3 ,454,083 3 ,844,248 4 ,852,032 6,184,381
Fixed assets
Land 79,752 79,752 79,752 79,752 79,752 79,752 79,752 7 9,752 7 9,752 7 9,752 79,752
Building/Infrastructure 210,000 210,000 210,000 210,000 249,930 249,930 249,930 2 49,930 2 49,930 2 49,930 249,930
Animals 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1 ,500,000 1 ,500,000 1 ,500,000 1,500,000
Revaluation Surplus/ (loss) - - ( 250,000) ( 250,000) ( 500,000) (750,000) (750,000) (750,000) (750,000) -
Net value of animals 1,500,000 1,500,000 1,500,000 1,250,000 1,250,000 1,000,000 750,000 7 50,000 7 50,000 7 50,000 1,500,000
Machinery & equipment 66,300 59,670 53,040 46,410 39,268 33,150 26,520 1 9,890 1 3,260 6 ,630 -
Total Fixed Assets 1,856,052 1,849,422 1,842,792 1,586,162 1,618,950 1,362,832 1,106,202 1 ,099,572 1 ,092,942 1 ,086,312 1,829,682
Intangible assets
Pre-operation costs 100,909 90,818 80,727 70,636 60,545 50,454 40,364 3 0,273 2 0,182 1 0,091 -
Total Intangible Assets 100,909 90,818 80,727 70,636 60,545 50,454 40,364 3 0,273 2 0,182 1 0,091 -
TOTAL ASSETS 2,056,961 2,204,013 2 ,291,965 2 ,364,425 3 ,008,799 3 ,250,815 3,805,492 4,583,928 4,957,372 5,948,435 8 ,014,063
Current liabilities
Accounts payable - - - - - - - - - -
Total Current Liabilities - - - - - - - - - - -
Other liabilities
Deferred tax - - 14,510 63,922 99,394 185,016 2 70,224 3 00,738 3 71,898 491,742
Long term debt (Debt facility : Bank 1) 1,851,265 1,851,265 1,645,686 1,423,044 1,181,924 920,790 637,982 3 31,702 - - -
Long term debt (Debt facility : Bank 2) - - - - - - - - - - -
Total Long Term Liabilities 1,851,265 1,851,265 1,645,686 1,437,555 1,245,845 1,020,184 822,999 6 01,925 3 00,738 3 71,898 491,742
Shareholders' equity
Paid-up capital 205,696 205,696 205,696 205,696 245,114 245,114 245,114 2 45,114 2 45,114 2 45,114 245,114
Gain/ (Loss) on revaluation of animals - - ( 250,000) ( 250,000) ( 500,000) (750,000) (750,000) (750,000) (750,000) -
Retained earnings 147,052 440,583 971,174 1,767,840 2,485,517 3,487,379 4 ,486,889 5 ,161,520 6 ,081,423 7,277,208
Total Equity 205,696 352,748 646,279 926,870 1,762,953 2,230,631 2,982,493 3 ,982,002 4 ,656,633 5 ,576,537 7,522,322
TOTAL CAPITAL AND LIABILITIES 2,056,961 2,204,013 2 ,291,965 2 ,364,425 3 ,008,799 3 ,250,815 3,805,492 4,583,928 4,957,372 5,948,435 8 ,014,063
Liabilities & Shareholders' Equity
Assets
13.2. Balance Sheet
Cash Flow Statement
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activities
Net profit 147,052 293,531 530,591 796,665 717,678 1,001,862 999,509 674,631 919,904 1,195,785
Add: depreciation expense 6,630 6,630 6,630 6,630 6,118 6,630 6,630 6,630 6,630 6,630
amortization of pre-operating costs 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091 10,091
amortization of training costs - - - - - - - - - -
Deferred income tax - - 14,510 49,411 35,472 85,623 85,207 30,515 71,159 119,844
Raw material inventory - - - - - - - - - - -
Cash provided by operations - 163,773 310,252 561,822 862,798 769,358 1,104,206 1,101,437 721,866 1,007,784 1,332,350
Financing activities
Debt facility : Bank 1 - principal repayment - (205,579) (222,642) (241,121) (261,134) (282,808) (306,281) (331,702) - -
Issuance of shares 205,696 - - - 39,418 - - - - - -
Purchase of (treasury) shares
Cash provided by / (used for) financing activities 2,056,961 - (205,579) (222,642) (201,703) (261,134) (282,808) (306,281) (331,702) - -
Capital expenditure (1,956,961) - - - (39,418) - - - - - -
Cash (used for) / provided by investing activities (1,956,961) - - - (39,418) - - - - - -
NET CASH 100,000 163,773 104,673 339,181 621,677 508,225 821,398 795,157 390,165 1,007,784 1,332,350
13.3. Statement of Cash Flow
13.4. Useful Project Management Tips
Management
• Knowledge of Business Operation: Background knowledge and related
experience of the entrepreneur is an advantage for starting this business.
Marketing
• 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 a promotional tool.
13.5. Useful Links
• Prime Minister’s Office, www.pmo.gov.pk
• Government of Pakistan, www.pakistan.gov.pk
• Ministry of Industries & Production, www.moip.gov.pk
• Ministry of National Food Security & Research, www.mnfsr.gov.pk
• Ministry of Education, Training & Standards in Higher Education,
www.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
• Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
• Government of Azad Jammu & Kashmir, www.ajk.gov.pk
• Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
• Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.pk
• Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
• Punjab Board of Investment & Trade (PBIT), 23-Aikman Road, GOR-I, Lahore
Tel. 042-99205201, www.pbit.gop.pk
• Sindh Board of Investment (SBI), 1st Floor, Tower B, Finance & Trade Center,
Shahra-e-Faisal, Karachi, Tel. 021-99207512-4, www.sbi.gos.pk
• State Bank of Pakistan (SBP), www.sbp.org.pk
• National Bank of Pakistan (NBP), www.nbp.com.pk
• First Women Bank Limited (FWBL), www.fwbl.com.pk
• Pakistan Agricultural Research Council (PARC), Islamabad, Tel. 051-9203966
www.parc.gov.pk
• National Agricultural Research Centre (NARC), Islamabad, Tel. 051-9255061,
www.parc.gov.pk
• National Veterinary Laboratory, NARC, Islamabad Tel. 051-9255108
• Balochistan Agricultural Research Centre (BARC), Quetta, Tel: 081-
9213286-7, www.parc.gov.pk
• Southern-zone Agricultural Research Centre (SARC), Karachi, Tel: 021-
99261661, 99261561, www.parc.gov.pk
• Arid Zone Research Institute (AZRI), Bahawalpur, Tel: 0622-876833,
www.parc.gov.pk
• Punjab Livestock & Dairy Development Board (PLDDB), 11- Shami Road, Lahore
Cantt. Tel. 042-36676821, www.plddb.pk
• Faculty of Animal Husbandry, University of Agriculture, Faisalabad,
www.uaf.edu.pk
• Faculty of Veterinary Sciences, University of Agriculture, Faisalabad,
www.uaf.edu.pk
• Faculty of Veterinary and Animal Sciences, Lasbela University of Agriculture,
Water & Marine Sciences, Lasbela, www.luawms.edu.pk
• Faculty of Veterinary Sciences and Animal Husbandry, Sindh Agriculture
University, Tondojam, www.sau.edu.pk
• Gomal College of Veterinary Sciences, Dera Ismail Khan, www.gu.edu.pk
• KPK Agricultural University, Peshawar, www.aup.edu.pk
• Pir Mehr Ali Shah Arid Agricultural University, Rawalpindi, www.uaar.edu.pk
• University College of Veterinary & Animal Sciences, Islamia University
Bahawalpur (IUB), www.iub.edu.pk
• University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore,
www.uvas.edu.pk
• College of Veterinary & Animal Sciences, Jhang,
www.uvas.edu.pk/other_campuses
• Bahauddin Zakariya University (BZU), Multan, www.bzu.edu.pk
• Nestle Sarsabz Training Institute, Renala Khurd, Okara c/o Nestle Lahore, Tel:
0423-111-637-853
• Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel. 091-
2960109, 9210309
• Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 042-
99220140
• Al - Haiwan Sires Training Institute, Jogi Chowk, Sahiwal, Tel. 040-4227196,
4221486, 061-6775708
• Altaf & Co Livestock Training Institute, Altaf & Co Plaza,16/1,Out Fall Road,
Lahore, Tel: 042-35763411-4, www.altafandco.com
• Solve Agri Pak Ltd, F-6/2, Main Link Road, Model Town, Lahore, Tel: 042-
35969602-3 www.solveagripak.com
• Dairy & Rural Development Foundation (DRDF), Lahore,
www.dairyproject.org.pk
• Agribusiness Support Fund (ASF), Lahore, www.asf.org.pk
• Directorate of Livestock Farms, L&DD, Lahore, Tel: 042-99201126-7
• Govt. Livestock Farm (GLF) Kallurkot District Bhakkar, Tel: 0453-200928
• Livestock Experiment Station (LES), Rakh Ghulaman, District Bhakkar, Tel:
0453-446134
• Livestock Experiment Station (LES), Khizarabad, District Sargodha Tel: 048-
3019835
• Research & Development Centre, Rakh Khairewala, District Layyah
• Livestock Experiment Station (LES), Khushab Tel: 0454-215543
• Directorate of Small Holder Dairy Development, Gujranwala, Tel: 055-9200410-
11, 9200194
• Buffalo Research Institute Bhunikey, District Pattoki, Tel: 049-4421887, 4420072
• Livestock Experiment Station (LES), Chak Katora District Bahawalpur, Tel: 062-
2442589
• Livestock Experiment Station (LES), Haroonabad, District Bahawalnagar, Tel:
063-2252960
• Livestock Experiment Station (LES), Dera Chahl Lahore, L&DD, Punjab, Tel:
042-99239818, 99239819
• Directorate of BLPRI, Kherimurat (Attock), L&DD, Punjab, Tel: 057-2213422,
2212130, 2210781
• Directorate of Small Ruminants, Multan, L&DD, Punjab, Tel: 061-9201311
• Research Centre for Conservation of Sahiwal Cattle (RCCSC), Jhang, Tel: 047-
9200329, 9200371, www.rccsc.com.pk
• Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: 044-
2661393
• Livestock Training Centre (LSTC), Sheikhupura, Tel: 056-9200056
• Livestock & Fisheries Department, Government of Sindh, www.sindh.gov.pk
• Agriculture & Livestock Department, Government of KPK,
www.khyberpakhtunkhwa.gov.pk
• Cattle Breeding & Dairy Farm, Harichand, District Charsadda, KPK, Tel: 091-
6640187
• Buffalo Breeding & Dairy Farm, D.I.Khan, KPK, Tel: 0966-923150
• Livestock Research Station, Jaba, Mansehra, (Jaba Sheep and Goat Farm), Tel:
0997-301866
• Livestock & Dairy Development, Government of Balochistan,
www.balochistan.gov.pk
• Government Dairy Farm Quetta, Tel: 081-9202564
• Bhagnari Cattle Cum Balochi Sheep Farm Usta Muhammad, Dera Allah Yar c/o
L&DD Quetta, Tel: 081-9202564
• Red Sindhi Cattle Farm Hub, Lasbela c/o L&DD Quetta, Tel: 081-9202564
• Govt. Feed Mill Quetta c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Pishin c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Nushki c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Zhob c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Loralai c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Kohlu c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Khuzdar c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Kalat c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Mastung c/o L&DD Quetta, Tel: 081-9202564
• District Government Dairy Farm, Panjgoor c/o L&DD Quetta, Tel: 081-9202564
14. KEY ASSUMPTIONS
Milk Sale Price (cow) Rs.
60
Milk Sale Price (buffalo) Rs.
60
Capacity Utilization (%)
100
Cow: Buffalo Ratio in the Herd
50:50
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)
8
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