dairy_farm.pdf

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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

[email protected]

REGIONAL OFFICE

PUNJABREGIONAL OFFICE

SINDHREGIONAL OFFICE

KPKREGIONAL OFFICE

BALOCHISTAN

3rd Floor, Building No. 3,Aiwan e Iqbal, Egerton Road

Lahore,

Tel: (042) 111-111-456Fax: (042)6304926-7

[email protected]

5TH Floor, Bahria

Complex II, M.T. Khan Road,

Karachi.

Tel: (021) 111-111-456

Fax: (021) 5610572

[email protected]

Ground Floor

State Life Building

The Mall, Peshawar.

Tel: (091) 9213046-47

Fax: (091) 286908

[email protected]

Bungalow No. 15-A

Chaman Housing Scheme

Airport Road, Quetta.

Tel: (081) 831623, 831702

Fax: (081) 831922

[email protected]

September 2013
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Pre-Feasibility Study Dairy Farming

Table of Contents

1.DISCLAIMER .......................................................................................................................................... 22.PURPOSE OF THE DOCUMENT ......................................................................................................... 33.INTRODUCTION TO SMEDA .............................................................................................................. 34.INTRODUCTION TO SCHEME ........................................................................................................... 35.EXECUTIVE SUMMARY ...................................................................................................................... 46.BRIEF DESCRIPTION OF PROJECT & PRODUCT ........................................................................ 4 7.CRITICAL FACTORS ............................................................................................................................ 58.INSTALLED & OPERATIONAL CAPACITIES ................................................................................. 59.GEOGRAPHICAL POTENTIAL FOR INVESTMENT...................................................................... 510. POTENTIAL TARGET MARKETS ............................................................................................... 511.

PROJECT COST SUMMARY ......................................................................................................... 5

11.1. PROJECT ECONOMICS .................................................................................................................................. 611.2. PROJECT FINANCING ................................................................................................................................... 611.3. PROJECT COST............................................................................................................................................. 611.4. SPACE REQUIREMENT.................................................................................................................................. 711.5. MACHINERY AND EQUIPMENT..................................................................................................................... 811.6. RAW MATERIAL REQUIREMENTS ................................................................................................................ 811.7. HUMAN RESOURCE REQUIREMENT ............................................................................................................. 911.8. REVENUE GENERATION............................................................................................................................... 912. CONTACTS: .................................................................................................................................... 1113. ANNEXURE ..................................................................................................................................... 1213.1. INCOME STATEMENT ................................................................................................................................. 1213.2. BALANCE SHEET ....................................................................................................................................... 1313.3. STATEMENT OF CASH FLOW...................................................................................................................... 1413.4. USEFUL PROJECT MANAGEMENT TIPS ...................................................................................................... 1513.5. USEFUL LINKS........................................................................................................................................... 1514. 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. Theinformation 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, andproduction, 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, scaleand 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 FederallyAdministered 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 totalinvestment 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 diseaseswith 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 HSV and FMD is necessary

d. Feeding should be done thrice and 10% cp and 1500 kcal energy

e. Milk should be refrigerated at 4 c and transport at 11 c 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.

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 ofmilk. 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.

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.

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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 Details

Internal Rate of Return (IRR) 31%

Payback Period (Year) 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 bankfinancing;

Table 2: Project Financing

Description Details (Rs.)

Total Equity (10%) 205,699

Bank Loan (90%.) 1,851,265

Markup to the Borrower (%age/annum) 8%

Tenure of the Loan (Years) 7

11.3. Project Cost

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

Table 3: Capital Investment for the Project

Capital Investment Amount (Rs.)

Land 79,752Building/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 production area,

management building, scrap yard and stores. However, the units operating in the

industry do not follow any set pattern. Following table shows calculations for project

space requirement.

Table 4: Space Requirement

Sr. No Description Area sqft

1 Shed for cows 600

2 Open Paddock for Cows 600

3 Shed for Buffalos 600

4 Open Paddock for Buffalos 600

5 Stores for fodder, concentrate & machine room 150

6 Utensils & milk storage 150

7 Servant Room, Wash room 90

8 Silage Bunker 384

9 Open Space 311

Total 3,485

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Total investment in building and infrastructure is calculated to be approximately Rs. 0.21million.

11.5. Machinery and Equipment

Following table provides list of machinery and equipment required for an average

foundry unit working for electrical fan sector.

Table 5: List of Machinery and Equipment

Sr. No Descr ipt ion Unit Rate (Rs.) Qty Cost (Rs.)

1 Calf feeder 1,200 3 3,600

2 Teat Dip Cup 350 2 700

3 Maize Cutter 20,000 1 20,000

4 Water Pump 20,000 1 20,000

5 Freezer 22,000 1 22,000

Total 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

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As already mentioned that are two major end products for foundry output; Small parts of

ceiling and pedestal fan and large parts of Pedestal. Following table shows raw material

requirement to process one ton of material for large fan parts:

Table 6: Feeding Requirement for Cows

Description Kgs/day/animal Rs./kg Amount (Rs.)

Dry (silage) 25.00 6.00 150.00

Concentrate 4.62 35.00 161.70

Total 311.70

Table 7: Feeding Requirement for Buffalo


Green Fodder 50 - -

Dry (silage) 25.00 6.00 150.00

Concentrate 5.00 35.00 175.00

Total 325.00

Table 8: Feeding Requirement for Calfs


Calfs younger than one year

Dry 6.6 6.00 39.4

Concentrate 2.2 35.00 120.0

Total Fodder 159.4

Calfs younger than one year

Dry 2.6 6.00 15.8

Concentrate 0.9 35.00 120.0

Total Fodder 135.8

11.7. Human Resource Requirement

One milk man will be required for milking and care of animals, whereas owner managerwill look after the overall business operations.

11.8. Revenue Generation

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Table 9: Revenue Generation

Description Units Annual

Production

Rate (Rs./Unit) Annual Revenue

(Rs.)

Milk Sales Liters 33,288 60 1,997,280

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12. CONTACTS:

Table 10: Suppliers List

Feed Suppliers Scmen Suppliers

Hi tech feeds

Shadman cross ,Lahore

Dr Athar 03458444511

Alhaiwan Semen Production

Dr Farooq

03218695054

Punjnand Feeds

Dr Musadiq

0322 2668844

Hamza Dairy Mart

Maj.Dr. Muhammad Ramzan

40,first floor,sadiq plaza,the mall

Lahore, 0320-4011220

Doctors Dairy Feeds

203/7, UC-3, Cattle colony, Bin Qasim,

Karachi.

Phone: +92-21-5081923-27

Ghazi Brothers

B-35 KDA Scheme no 1, Mian Muhammad

Shah Road, Karachi.

Phone: 021-4543579, Fax: 021-4543763

Machinery Suppliers Animal Suppliers

Dairy Solution (pvt) ltd.

177b ,Johar town ,Lahore

04235169450-1, 0300840 1680

[email protected]

Local Mandi s

Arifwala

Okara

Sargodha

WestFalia

Suite 623, Al Hafeez Shopping Mall,

Gulberg III, Lahore.

Phone:042-35884627-8

Consultants

Mr Major Ramzan

Dr. Rehan (Agrimasters)

210 Rewaaz Garden, Lower Mall,

Lahore.

Phone:042-37225666

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13. ANNEXURE

13.1. Income Statement

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 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

Other Income - - 72,600 159,720 73,205 161,051 248,019 58,462 128,615 212,215

Total 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

Cost of sales

Cost of goods sold 1 1,394,373 1,394,373 1,394,373 1,394,373 1,161,978 1,161,978 929,582 697,187 697,187 697,187

Medicine, Vaccination & Ins emination Charges 30,600 33,660 37,026 40,729 37,335 41,068 36,140 29,815 32,797 36,077

Op erat in g co sts 3 (d irect elect ricit y & fu el ch arg es ) 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 1,560,033 1,576,599 1,594,822 1,375,004 1,396,307 1,178,309 960,848 987,214 1,016,217

Gross Profit 452,307 636,975 912,710 1,223,278 1,135,049 1,445,277 1,428,578 1,043,680 1,282,075 1,550,739

General administration & selling expenses

Administration expense 240,000 263,367 289,008 317,147 348,025 381,909 209,546 229,948 252,336 276,903

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

Subtotal 256,721 280,088 305,729 333,868 364,233 398,630 226,267 246,669 269,057 293,624

Operating Income 195,586 356,887 606,980 889,410 770,816 1,046,647 1,202,311 797,012 1,013,018 1,257,115

Earnings Before Interest & Taxes 195,586 356,887 606,980 889,410 770,816 1,046,647 1,202,311 797,012 1,013,018 1,257,115

Interest on short term debt 1,533 2,095 562 - - - - - - -

Interest expense on long term debt (Debt facility : Bank 1) 142,025 125,049 106,674 86,784 65,255 41,951 16,726 - - -

In teres t exp en se o n lo ng term d eb t (Deb t facilit y : Ban k 2) - - - - - - - - - -

Subtotal 143,558 127,144 107,236 86,784 65,255 41,951 16,726 - - -

Earnings Before Tax 52,028 229,743 499,744 802,626 705,561 1,004,697 1,185,586 797,012 1,013,018 1,257,115

Taxable earnings for the year 52,028 229,743 499,744 802,626 705,561 1,004,697 1,185,586 797,012 1,013,018 1,257,115

Tax - 11,487 49,974 140,460 105,834 210,986 248,973 119,552 212,734 263,994

NET PROFIT/(LOSS) AFTER TAX 52,028 218,256 449,770 662,167 599,727 793,710 936,613 677,460 800,284 993,121

Balance brought forward 52,028 270,285 720,055 691,111 1,290,837 1,042,274 989,443 833,452 816,868

Total profit available for appropriation 52,028 270,285 720,055 1,382,221 1,290,837 2,084,548 1,978,887 1,666,903 1,633,736 1,809,989

Dividend 50% - - - 691,111 - 1,042,274 989,443 833,452 816,868 904,994

Balance carried forward 52,028 270,285 720,055 691,111 1,290,837 1,042,274 989,443 833,452 816,868 904,994

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13.2. Balance Sheet

Balance Shee t

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 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420

Total Current Assets 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420

Fixed assets

Land 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752 79,752

Building/Infrastructure 210,000 210,000 210,000 210,000 249,930 249,930 249,930 249,930 249,930 249,930 249,930

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 1,000,000 750,000 750,000 750,000 750,000 1,500,000

Machinery & equipment 66,300 59,670 53,040 46,410 39,268 33,150 26,520 19,890 13,260 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

Intangibl e assets

Pre-operation costs 100,909 90,818 80,727 70,636 60,545 50,454 40,364 30,273 20,182 10,091 -

Total Intangible Assets 100,909 90,818 80,727 70,636 60,545 50,454 40,364 30,273 20,182 10,091 -

TOTAL ASSETS 2,056,961 1,940,240 1,923,519 1,918,342 1,808,098 1,980,952 1,387,365 1,252,272 1,215,832 1,411,982 2,514,102

Current liabilities

Short term debt - 37,187 13,635 - - - - - - - -

Total Current Liabilities - 37,187 13,635 - - - - - - - -

Other liabilities

Deferred tax - 11,487 61,462 201,921 307,755 518,742 767,715 887,266 1,100,000 1,363,994

Lo ng te rm d eb t (De bt fa cilit y : Ba nk 1) 1,851,265 1,645,328 1,422,416 1,181,129 919,952 637,246 331,236 - - - -

Long term debt (Debt facility : Bank 2) - - - - - - - - - - -

Total Long Term Liabilities 1,851,265 1,645,328 1,433,904 1,242,591 1,121,874 945,001 849,977 767,715 887,266 1,100,000 1,363,994

Shareholders' equity

Paid-up capital 205,696 205,696 205,696 205,696 245,114 245,114 245,114 245,114 245,114 245,114 245,114

Gain/ (Loss) on revaluation of animals - - (250,000) (250,000) (500,000) (750,000) (750,000) (750,000) (750,000) -

Retained earnings 52,028 270,285 720,055 691,111 1,290,837 1,042,274 989,443 833,452 816,868 904,994

Total Equity 205,696 257,724 475,981 675,751 686,224 1,035,951 537,387 484,557 328,565 311,982 1,150,108

TOTAL CAP ITAL AND LIAB ILITIES 2 ,0 56 ,9 61 1,940,240 1,923,519 1,918,342 1,808,098 1,980,952 1,387,365 1,252,272 1,215,832 1,411,982 2,514,102

Liabilities & S hareholders' Equity

Assets

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13.3. Statement of Cash Flow

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 52,028 218,256 449,770 662,167 599,727 793,710 936,613 677,460 800,284 993,121

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

Deferred income tax - 11,487 49,974 140,460 105,834 210,986 248,973 119,552 212,734 263,994

Cash provided by operations - 68,749 246,464 516,465 819,347 721,769 1,021,417 1,202,307 813,733 1,029,739 1,273,836

Financing activities

Debt facility : Bank 1 - principal repayment (205,936) (222,912) (241,287) (261,177) (282,706) (306,010) (331,236) - - -

Short term debt principal repayment - (37,187) (13,635) - - - - - - -

Additions to Debt facility : Bank 1 1,851,265 - - - - - - - - - -

Issuance of shares 205,696 - - - 39,418 - - - - - -

Purchase of (treasury) shares

Cash provided by / (used for) financing activities 2,056,961 (205,936) (260,099) (254,922) (221,759) (282,706) (306,010) (331,236) - - -

Investing ac tiviti es

Capital expenditure (1,956,961) - - - (39,418) - - - - - -

Acquisitions

Cash (used for) / provided by investing activities (1,956,961) - - - (39,418) - - - - - -

NET CASH 100,000 (137,187) (13,635) 261,543 558,170 439,063 715,407 871,071 813,733 1,029,739 1,273,836

Cash balance brought forward 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579

Cash available for appropriation 100,000 (37,187) (13,635) 261,543 819,713 567,666 1,283,073 1,111,870 936,160 1,132,447 1,589,415

Dividend - - - 691,111 - 1,042,274 989,443 833,452 816,868 904,994

Cash balance 100,000 (37,187) (13,635) 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420

Cash carried forward 100,000 - - 261,543 128,603 567,666 240,799 122,427 102,708 315,579 684,420

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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 Select ion: Selection of disease free animals with established

standards of daily production

Quality Assurance Standards: Whatever means required products

quality standards need to be defined, this improves credibility

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

Small and Medium Enterprise Development Authority,www.smeda.org.pk

National Bank of Pakistan (NBP),www.nbp.com.pk

First Women Bank Limited (FWBL),www.fwbl.com.pk

Government of Pakistan, www.pakistan.gov.pk

Ministry of Industries & Production, www.moip.gov.pk

Ministry of Education, Training & Standards in Higher Education,

http://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

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http://www.pmo.gov.pk/http://www.pmo.gov.pk/http://www.pmo.gov.pk/http://www.smeda.org.pk/http://www.smeda.org.pk/http://www.smeda.org.pk/http://www.nbp.com.pk/http://www.nbp.com.pk/http://www.nbp.com.pk/http://www.fwbl.com.pk/http://www.fwbl.com.pk/http://www.fwbl.com.pk/http://www.fwbl.com.pk/http://www.nbp.com.pk/http://www.smeda.org.pk/http://www.pmo.gov.pk/


17/18


Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk

Government of Azad Jamu Kashmir, www.ajk.gov.pk

Security Commission of Pakistan (SECP), www.secp.gov.pk

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)

www.fpcci.com.pk

Dairy and Live Stock Departments

State Bank of Pakistan (SBP), www.sbp.org.pk

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18/18


14. KEY ASSUMPTIONS

Milk Sale Price (cow) Rs. 60

Milk Sale Price (buffalo) Rs. 60

Capacity Utilization 100

Cow Ratio in the Herd 0.50

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.) 50,000Milk Yield per Cow/day (liters) 12

Milk Yield per Buffalo/day (liters) 8

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Documents

dairy_farm.pdf