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 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

REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk

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

REGIONAL OFFICE BALOCHISTAN 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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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 ......................................................................................................... 6 11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7. 11.8. 12. 13. 13.1. 13.2. 13.3. 13.4. 13.5. 14. PROJECT ECONOMICS ..................................................................................................................................6 PROJECT FINANCING ...................................................................................................................................6 PROJECT COST.............................................................................................................................................7 SPACE REQUIREMENT..................................................................................................................................7 MACHINERY AND EQUIPMENT .....................................................................................................................8 RAW MATERIAL REQUIREMENTS ................................................................................................................8 HUMAN RESOURCE REQUIREMENT .............................................................................................................9 REVENUE GENERATION ...............................................................................................................................9 CONTACTS ...................................................................................................................................... 10 ANNEXURE ..................................................................................................................................... 11 INCOME STATEMENT ................................................................................................................................. 11 BALANCE SHEET ....................................................................................................................................... 12 STATEMENT OF CASH FLOW ...................................................................................................................... 13 USEFUL PROJECT MANAGEMENT TIPS ...................................................................................................... 14 USEFUL LINKS ........................................................................................................................................... 14 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 HS and FMD is necessary d. Feeding should be done thrice and 10% crude protein (CP) and 1500 kcal energy e. Milk should be refrigerated at 4 Oc and transport at 11 Oc 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. The buffalo breeds found in Pakistan are Nili-Ravi and Kundi. The cattle breeds are Sahiwal, Red Sindhi, Tharparkar and Cholistani. The crossbred cattle may be considered also as in Pakistan, crossbreeding is recommended for non-descript cattle breeds with semen of local high producing breeds like Sahiwal, Cholistani, Red Sindhi etc. or exotic breeds like Holstein Friesien, Jersey etc. These crossbred animals have more milk production, less calving interval and early age of maturity as compared to local animals with low genetic potential.

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.

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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.

11.1.

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 Internal Rate of Return (IRR) Payback Period (Year) Details 31% 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 Total Equity (10%) Bank Loan (90%) Markup to the Borrower (%age/annum) Tenure of the Loan (Years) Details (Rs.) 205,699 1,851,265 8% 7

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11.3.

Project Cost
Table 3: Capital Investment for the Project

Following requirements have been identified for operations of the proposed business.

Capital Investment Land Building/Infrastructure Cows and Buffalos Machinery & Equipment Pre-Operating Costs Total Capital Costs Cash in Hand Total Project Cost

Amount (Rs.) 79,752 210,000 1,500,000 66,300 100,909 1,956,961 100,000 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 as in conventional open housing system. Following table shows calculations for project space requirement; Table 4: Space Requirement Sr. No 1 2 3 4 5 6 7 8 9 Description Shed for cows Open Paddock for Cows Shed for Buffalos Open Paddock for Buffalos Stores for fodder, concentrate & machine room Utensils & milk storage Servant Room, Wash room Silage Bunker Open Space Total Area sq.ft 600 600 600 600 150 150 90 384 311 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 the proposed dairy farm; Table 5: List of Machinery and Equipment Sr. No Description 1 2 3 4 5 Calf feeder Teat Dip Cup Maize Cutter Water Pump Freezer Total Unit Rate (Rs.) 1,200 350 20,000 20,000 22,000 Qty 3 2 1 1 1 Cost (Rs.) 3,600 700 20,000 20,000 22,000 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

Following tables show raw material requirement to run the proposed dairy farm; Table 6: Feeding Requirement for Cows Kgs/day/animal Rs./kg 25.00 4.62 6.00 35.00

Description Silage Concentrate Total Description Silage Concentrate Total

Amount (Rs.) 150.00 161.70 311.70 Amount (Rs.) 150.00 175.00 325.00

Table 7: Feeding Requirement for Buffalo Kgs/animal/day Rs./kg 25.00 5.00 6.00 35.00

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Table 8: Feeding Requirement of Calves Description Buffalo Calf (younger than one year) Silage Concentrate Total Fodder Cow Calf (younger than one year) Silage Concentrate Total Fodder 2.6 0.9 6.00 35.00 15.8 120.0 135.8 6.6 2.2 6.00 35.00 39.4 120.0 159.4 Kgs/animal/day Rs./kg Amount (Rs.)

11.7.

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
Table 9: Revenue Generation

Description Milk Sales

Units Liters

Annual Production 33,288

Rate (Rs./Unit) 60

Annual Revenue (Rs.) 1,997,280

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12.

CONTACTS
Table 10: Suppliers List

Feed Suppliers Hi-Tech Feeds,1-A, Shadman Chowk Jail Road, Lahore Phone : +92-42-37564503 Fax : +92-42-37564508 Consultant: Dr. Athar (0345-8444511) Punjnad Feeds Dr. Musaddiq Asif 0322 2668844 Doctors Dairy Feeds 203/7, UC-3, Cattle colony, Bin Qasim, Karachi. Phone: +92-21-5081923-27 Alhalal Wanda Al-Halal Livestock Concern Company Super High Way Jahania Tel. 065-2002373, 0300 6881293 Anmol Wanda Tel. 0442-661252, 04934427066, 0572213422 ICI Pakistan Cattle Feed 63-Mozang Road Lahore Tel. 042-36370042 Machinery Suppliers Dairy Solution (pvt) Ltd. 177-B, Johar town ,Lahore Ph: 0423-5169450-1, Cell: 0300-8401680 info@dairysolution.com Kurdson Industries Sabri Road, Angoori Scheme, Baghbanpura, Lahore 042-36843472

AI/ Semen Suppliers Al - Haiwan Sires, 5-Km, Pakpattan Road, Sahiwal, Tel. 040-4501271-72 Consultant: Dr. Farooq Cell: 03218695054 Altaf & Co. , Altaf & Co Plaza,16/1,Out Fall Road, Lahore, Tel: 042-35763411-4, www.altafandco.com Hamza Dairy Mart Maj.Dr. Muhammad Ramzan 40,first floor,sadiq plaza,the mall Lahore, 0320-4011220 Ghazi Brothers B-35 KDA Scheme no 1, Mian Muhammad Shah Road, Karachi. Phone: 021-4543579, Fax: 021-4543763

Animal Suppliers Local Animal Mandies Mandies (c/o Provincial Livestock & Dairy Development Departments) e.g.,Arifwala, Pakpattan, Okara, Sargodha, Gujranwala etc.

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13.

ANNEXURE 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 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

13.1.
Income Statement

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 General administration & selling expenses Administration expense Depreciation expense Amortization of pre-operating costs Subtotal Operating Income Earnings Before Interest & Taxes 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 Taxable earnings for the year Tax NET PROFIT/(LOSS) AFTER TAX Balance brought forward Total profit available for appropriation Dividend Balance carried forward

240,000 6,630 10,091 256,721 195,586 195,586 1,533 142,025 143,558 52,028 52,028 52,028

263,367 6,630 10,091 280,088 356,887 356,887 2,095 125,049 127,144 229,743 229,743 11,487 218,256 52,028 270,285 270,285

289,008 6,630 10,091 305,729 606,980 606,980 562 106,674 107,236 499,744 499,744 49,974 449,770 270,285 720,055 720,055

317,147 6,630 10,091 333,868 889,410 889,410 86,784 86,784 802,626 802,626 140,460 662,167 720,055 1,382,221 691,111 691,111

348,025 6,118 10,091 364,233 770,816 770,816 65,255 65,255 705,561 705,561 105,834 599,727 691,111 1,290,837 1,290,837

381,909 6,630 10,091 398,630 1,046,647 1,046,647 41,951 41,951 1,004,697 1,004,697 210,986 793,710 1,290,837 2,084,548 1,042,274 1,042,274

209,546 6,630 10,091 226,267 1,202,311 1,202,311 16,726 16,726 1,185,586 1,185,586 248,973 936,613 1,042,274 1,978,887 989,443 989,443

229,948 6,630 10,091 246,669 797,012 797,012 797,012 797,012 119,552 677,460 989,443 1,666,903 833,452 833,452

252,336 6,630 10,091 269,057 1,013,018 1,013,018 1,013,018 1,013,018 212,734 800,284 833,452 1,633,736 816,868 816,868

276,903 6,630 10,091 293,624 1,257,115 1,257,115 1,257,115 1,257,115 263,994 993,121 816,868 1,809,989 904,994 904,994

50%

52,028 52,028

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13.2.
Balance Sheet

Balance Sheet
Year 0 Assets Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

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

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

79,752 210,000 1,500,000 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

1,851,265 1,851,265

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

205,696 2,056,961

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

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13.3.

Statement of Cash Flow

Year 0 Year 1 52,028 6,630 10,091 68,749 Year 2 218,256 6,630 10,091 11,487 246,464 Year 3 449,770 6,630 10,091 49,974 516,465 Year 4 662,167 6,630 10,091 140,460 819,347 Year 5 599,727 6,118 10,091 105,834 721,769 Year 6 793,710 6,630 10,091 210,986 1,021,417 Year 7 936,613 6,630 10,091 248,973 1,202,307 Year 8 677,460 6,630 10,091 119,552 813,733 Year 9 800,284 6,630 10,091 212,734 1,029,739 Year 10 993,121 6,630 10,091 263,994 1,273,836

Cash Flow Statement

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

1,851,265 205,696 2,056,961

(205,936) (205,936)

(222,912) (37,187) (260,099)

(241,287) (13,635) (254,922)

(261,177) 39,418 (221,759)

(282,706) (282,706)

(306,010) (306,010)

(331,236) (331,236)

(1,956,961) (1,956,961) 100,000

(137,187) 100,000 (37,187) (37,187) -

(13,635) (13,635) (13,635) -

261,543 261,543 261,543 261,543

(39,418) (39,418) 558,170 261,543 819,713 691,111 128,603 128,603

439,063 128,603 567,666 567,666 567,666

715,407 567,666 1,283,073 1,042,274 240,799 240,799

871,071 240,799 1,111,870 989,443 122,427 122,427

813,733 122,427 936,160 833,452 102,708 102,708

1,029,739 102,708 1,132,447 816,868 315,579 315,579

1,273,836 315,579 1,589,415 904,994 684,420 684,420

100,000 100,000 100,000

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13.4.

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 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 Jamu Kashmir, www.ajk.gov.pk Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk Security Commission of Pakistan (SECP), www.secp.gov.pk Federation of Pakistan Chambers of Commerce and Industry (FPCCI) www.fpcci.com.pk
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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: 02199261661, 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
15 September 2013

Pre-Feasibility Study

Dairy Farming

Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel. 0912960109, 9210309 Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 04299220140 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: 04235969602-3 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: 0483019835 Research & Development Centre, Rakh Khairewala, District Layyah Livestock Experiment Station (LES), Khushab Tel: 0454-215543 Directorate of Small Holder Dairy Development, Gujranwala, Tel: 055-920041011, 9200194 Buffalo Research Institute Bhunikey, District Pattoki, Tel: 049-4421887, 4420072 Livestock Experiment Station (LES), Chak Katora District Bahawalpur, Tel: 0622442589 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 Conversation Sahiwal Cattle (RCCSC), Jhang, Tel: 0479200329, 9200371, www.rccsc.com.pk Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: 0442661393 Livestock Training Centre (LSTC), Sheikhupura, Tel: 056-9200056 Livestock & Fisheries Department, Government of Sindh, www.sindh.gov.pk
16 September 2013

Pre-Feasibility Study

Dairy Farming

Agriculture & Livestock Department, Government of KPK, www.khyberpakhtunkhwa.gov.pk Cattle Breeding & Dairy Farm, Harichand, District Charsadda, KPK, Tel: 0916640187 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
60 60 100 50:50 130,000 120,000 50,000 50,000 50,000 12 8

Milk Sale Price (cow) Rs. Milk Sale Price (buffalo) Rs. Capacity Utilization Cow: Buffalo Ratio in the Herd Purchase Price of a Cow (Rs.) Purchase Price of a Buffalo (Rs.) Sale Price of a Low Yielder cow (Rs.) Sale Price of a Low Yielder buffalo (Rs.) Sale Price of one year Male Calf (Rs.) Milk Yield per Cow/day (liters) Milk Yield per Buffalo/day (liters)

17 September 2013