How To Make A Profit From Farming
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1 Awareness Seminar On Dairy Farming As a Profitable Business Jointly Organized By Small & Medium Enterprises Development Authority (SMEDA) Sahiwal Chamber of Commerce & Industry
2 Scheme of Presentation Introduction of Dairy Farming Dairy Scenario in Pakistan How to Start Dairy Farming
3 Pakistan s 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: m hectares Cropped area: 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 m Income of the farmers derived from Livestock % Source: Economic Survey of Pakistan
4 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:
5 Livestock Products Products Production ( 000 tons) Milk Meat 2,576.0 Wool 41.2 Hides (Million no.) 9.6 Skins(Million no.) 48.0 (Economic survey of Pakistan, ) 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 (
6 Dairy Economics 100 cows=rs.40 million RoIe for dairy =42% Other businesses =15%
7 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)
8 International Meat Prices Beef US $ 5 to 30 Mutton US $ 7 to 35
9 Pakistan Dairy & Livestock Sector Issue Not Competitive: Why? Low breeds efficiency: 1000 ltr/animal/lactation as compare to 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, Land O 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.
10 Issues Poor infrastructure (energy, transport, and storage) Sector institutions and policies Access to modern technology Financial and business development services
11 Introduction of SMEDA
12 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 Provision and Facilitation of Services Investment Facilitation Technology, Training, Finance, Business Information, Marketing, and legal support Productivity and Competitiveness Improvement Sector Studies, Strategies and Implementation Cluster Development Common Facility Centers
13 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
14 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, prefeasibilities etc) o Assistance in Raising Finance from Financial Institutions
15 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
16 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
17 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
18 Thank You
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