Awareness Seminar

On
Dairy Farming As a Profitable Business

Jointly Organized
By
Small & Medium Enterprises Development Authority (SMEDA)
Sahiwal Chamber of Commerce & Industry

www.smeda.org.pk
 Scheme of Presentation

Introduction of Dairy Farming

Dairy Scenario in Pakistan
How to Start Dairy Farming

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 Pakistans Livestock Sector Scenario
GDP $ 112 billion
GDP growth rate: 8.4 % (growing economy)

Share of Agriculture in GDP 23 %

Avg growth rate: 7.5 %
Employment: 42 % of work force
Major Crops:Cotton, Sugarcane, Rice, Maize, Wheat
Land Utilization:
Total: 79.61 m hectares
Cropped area: 22.94 m hectares (28.8 %)

Contribution of Livestock towards Agriculture GDP 49.6 %

Contribution of Livestock towards national GDP 11.5 %
Rural Population engaged in Livestock raising 30- 35 m
Income of the farmers derived from Livestock 35- 40 %
Source: Economic Survey of Pakistan

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 Dairy & Livestock Scenario

Milk trade is US $ 65 Billion: Pakistan is

importing US $ 180 million milk powder
annually.

Meat trade is US $ 600 billion: Pakistan

share in Exports is only US $ 100 million

(Source: www.commoditytradeinternational.com)

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 Livestock Products

Products Production ( 000 tons)

Milk 38690.0
Meat 2,576.0
Wool 41.2
Hides (Million no.) 9.6
Skins(Million no.) 48.0
(Economic survey of Pakistan, 2006-07)

Milk trade is US $ 65 Billion: Pakistan is importing US $ 180 million milk

powder annually.

Meat trade is US $ 600 billion: Pakistan share in Exports is only US $ 100

million
(www.commoditytradeinternational.com)

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 Dairy Economics

100 cows=Rs.40 million

RoIe for dairy =42%
Other businesses =15%

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 International Farm Gate Milk Prices
(PKR/kg)

Pakistan 40
India 50
China 56
Russia 50
UAE 60
USA 34
EU 34

Source: Intl.Farm Comparison Network

(IFCN)

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 International Meat Prices

Beef US $ 5 to 30
Mutton US $ 7 to 35

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 Pakistan Dairy & Livestock Sector Issue
Not Competitive: Why?
Low breeds efficiency: 1000 ltr/animal/lactation as
compare to 10000 ltr/animal/lactation in developed
countries
Shortage/ unavailability of Trained/ skilled workforce
Insufficient Milk marketing & processing system through
processors (Nestle, Haleeb etc) as compared to Dairy
Cooperatives in developed countries e.g. Fonterra New
Zealand, Dairy farmers of USA, LandO Lakes Inc. USA
Inefficient breeds for meat: 600 gram and 150 grams Daily
Weight gain as compared to 1000 grams and 400 grams
respectively for beef and mutton
Lack of Internationally certified slaughter houses and
supply chains.
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 Issues

Poor infrastructure (energy,

transport, and storage)
Sector institutions and policies
Access to modern technology
Financial and business
development services

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Introduction of SMEDA

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 SMEDA
Building a Conducive Environment
Proposing and facilitating changes in
Policy and Regulatory Environment
Reducing the Cost of Doing Business
Facilitating Government-SME Interface
Developing Clusters and Sectors
Sector Studies, Strategies and
Implementation
Cluster Development
Common Facility Centers
Provision and Facilitation of Services
Investment Facilitation
Technology, Training, Finance, Business
Information, Marketing, and legal support
Productivity and Competitiveness Improvement www.smeda.org.pk
www.smeda.org.pk
 SMEDA Offers

Sector Studies --- Overall potential

Feasibility Studies --- Individual
Projects
Legal and Regulatory Support ---
Operational matters
Business Matchmaking --- Potential
partners
Regional Offices & centers
Karachi, Lahore, Quetta & Peshawar

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 Help Desk Services for SMEs
Established in Jan 2001
o Identification of Investment Opportunities
o Business Plan Development
o Technical Advice
o Marketing Advice (Branding, Promotion, Labeling, Packaging etc)
o Legal Services (Company Incorporation, Export
Registration & Regulatory, Tax Advice)
o Business Matchmaking Service
o Information Services (Library, project briefs, databases, pre-
feasibilities etc)
o Assistance in Raising Finance from Financial Institutions

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 Establishment/Upgradation of Model
Dairy Projects
1. Farmers Dairy Lahore
2. Alrazi dairy
Gujranwala
3. Living dairy Chunian
4. Noble dairy Lahore
5. Hygienic dairy Chiniot
6. Eastern dairy Behra

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 SME Facilitation
Pre-feasibility
1. Dairy Farm (25 Animal)
2. Environmentally Controlled Dairy Farm (50 American Cows)
3. Dairy Farm (200 Animal)
4. Calf Fattening Farm
5. Poultry Farm (7,500 Broiler Birds)
6. Livestock Semen Production Unit (Cattle & Buffalo)
7. Layer Farming (10000 Birds)
8. Semi Intensive Sheep Farm
9. Environmental Controlled Poultry Farm (30,000 Birds)
10. Poultry Breeder Farm
11. Sheep Fattening Farm
12. Quail Farming
13. Intensive Goat Breeding Farm
14. Environmentally Controlled Poultry Farm (60,000 birds)
15. Veterinary Clinic
16. Abattoir (Slaughterhouse)
17. Milk Pasteurizing Unit
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 SME Facilitation
Training Programs
1. One month Training of Farmers/Supervisors and
Dairy Managers in collaboration with Nestle
2. Livestock & Dairy Farm Management
3. Artificial Insemination for Animals, Burj Attari
4. Calf Fattening
5. Dairy Farm Management
6. Animal Productivity Enhancement through Feeding
7. Goat and Sheep Farming
8. Animal Productivity Enhancement through
Urea Molasses (Milk & Meat)
9. Investment Opportunities in Livestock Sector
10. Breed Improvement with Artificial Insemination
11. Feeding of Dairy Animals for Quality Milk Production
12. How to manage live stock farms
13. Milk Collection and Increased Milk Production
14. Quail Farming as Profitable Enterprise
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Thank You

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