Sheep Fattening Farm

7/26/2019 Sheep Fattening Farm

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Pre-Feasibility Study

(Sheep Fattening Farm)

Small and Medium Enterprises Development Authority

Ministry of Industries & ProductionGovernment of Pakistan

www.smeda.org.pk

HEAD OFFICE

4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,

LahoreTel: (92 42) 111 111 456, Fax: (92 42) 36304926-7

[email protected]

REGIONAL OFFICE

PunjabREGIONAL OFFICE

SindhREGIONAL OFFICE

Khyber PakhtunkhwaREGIONAL OFFICE

Balochistan3rdFloor, Building No. 3,

Aiwan-e-Iqbal Complex,

Egerton Road Lahore,

Tel: (042) 111-111-456

Fax: (042) [email protected]

5TH Floor, Bahria

Complex II, M.T. Khan Road,

Karachi.

Tel: (021) 111-111-456


Ground Floor

State Life Building

The Mall, Peshawar.

Tel: (091) 111-111-456


Bungalow No. 15-A

Chaman Housing Scheme

Airport Road, Quetta.

Tel: (081) 2831623, 2831702


Note: All SMEDA Services / information related to PM's Youth Business Loan areFree of Cost

December, 2013


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Table of Contents

1. DISCLAIMER ...................................................................................................2

2.

purpose of the document .............................................................................2

3. Introduction to SMEDA .................................................................................3

4. Introduction to Scheme ................................................................................3

5.

Executive Summary .......................................................................................3

6. Brief description of Project & Product .....................................................4

7. Critical Factors ................................................................................................4

8. Installed & Operational Capacities ............................................................4

9.

Geographical Potential for Investment ....................................................5

10. Potential Target Markets / cities ..............................................................5

11. Production Process Flow ..........................................................................5

11.1 Breed Selection.......................................................................................................... 511.2 Characteristics of Breeds Recommended for Sheep Fattening:........................ 5

12. Project Cost Summary ...............................................................................6

12.1 Project Economics..................................................................................................... 612.2 Project Financing....................................................................................................... 7

12.3

Project Cost................................................................................................................ 7

12.4 Space Requirement................................................................................................... 712.5 Machinery and Equipment........................................................................................ 812.6 Human Resource Requirement............................................................................... 812.7 Revenue Generation................................................................................................. 8

13. CRITICAL FACTOR ......................................................................................9

14.

Annexure ......................................................................................................10

14.1 Income Statement.................................................................................................... 1014.2 Project Balance Sheet ................................................................................................. 11

14.3

Project Cash Flow Statement ...................................................................................... 12

14.4 USEFUL PROJECT MANAGEMENT TIPS ............................................................ 13

14.5 USEFUL LINKS ........................................................................................................ 14

15. . Key Assumpt ion ......................................................................................17


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11.. DDIISSCCLLAAIIMMEERR

This information memorandum is to introduce the subject matter and provide a general

idea and information on the said 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 isnecessary 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

22.. PPUURRPPOOSSEEOOFFTTHHEEDDOOCCUUMMEENNTT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneursin 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 Sheep Fattening

Farm by providing them 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 suchreports 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.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST - 2
http://www.smeda.org.pk/http://www.smeda.org.pk/http://www.smeda.org.pk/


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33.. IINNTTRROODDUUCCTTIIOONNTTOOSSMMEEDDAA

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 ofexperts and consultants and delivery of need based capacity building programs of

different types in addition to business guidance through help desk services.

44.. IINNTTRROODDUUCCTTIIOONNTTOOSSCCHHEEMMEE

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)

beneficiaries, through designated financial institutions, initially by National Bank of

Pakistan (NBP) and First Women Bank Ltd. (FWBL).

Small Business Loans upto 2 million with tenure up to 8 years, inclusive of grace period

of 1 year 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).

SMEDA has been tasked with an advisory role in the implementation of PMs scheme

by providing fifty (50) updated pre-feasibilities for referencing by SME beneficiaries and

participating banks to optimally utilize their financial resources.

55.. EEXXEECCUUTTIIVVEESSUUMMMMAARRYY

Sheep Fattening Farm is proposed to be located at suitable areas of Balochistan. The

project is related to Sheep fattening purposes, the total capacity is 450 Sheep with initial

utilization of 70% (315 sheep). Project Cost Estimate is Rs. 2.19 Million with fixed

investment of Rs. 1.29 Million and working capital Rs. 0.90 Million. Given the cost

assumptions, IRR and payback are 46% and 3.10 years respectively



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The most critical considerations or factors for success of the project are

1. Selection of Quality Sheep

2. Farm Management

Livestock in Balochistan holds great potential towards contributing to increased incomes

of the farmers. Growth in output has varied over the years, but in general has barely

kept pace with population growth.

66.. BBRRIIEEFFDDEESSCCRRIIPPTTIIOONNOOFFPPRROOJJEECCTT&& PPRROODDUUCCTT

Following key parameters pertaining to subject pre-feasibility study are elaborated to

briefly describe the project.

Location:The farm is to be established in sheep rearing areas of country where

range grazing is available. In Balochistan Southern, Northern & Central aresuitable areas to establish sheep farm. Major production areas in Balochistan

include Kalat, Khuzdar, Kharan, Mastung, Noshki Mashkel, Sibi, Naseerabad,

Jaffarabad, Kohlo, Dera Bugti, Killa Saifullah, Ziarat, Loralai, Zhob, Barkhan and

Lasbela Districts

Product (Breed): The most suitable breeds for fattening include Balochi,

Harnai and Bibrik sheep. The farmer not only has to select the better breed

which can bring results for fattening but also have to select most suitable animals

from the selected breed. Through better management, the weight gain of these

selected breeds would be higher.

Target Market: In addition to local markets in Karachi, Lahore and Islamabad

there is an enormous export potential in Middle Eastern countries.

Employment Generation: The proposed project will provide direct employment

to 4 people. Financial analysis shows that the farm shall be profitable from the

very first year of operation

77.. CCRRIITTIICCAALLFFAACCTTOORRSS

Swift increase in consumption/demand of live stock products.

Increasing demand of by-products such as blood, skin, etc.

Technological improvement in livestock production and processing.

88.. IINNSSTTAALLLLEEDD&& OOPPEERRAATTIIOONNAALLCCAAPPAACCIITTIIEESS

The farm will start production with 315 sheep (70% of total capacity). The farm will

achieve maximum capacity of 405 sheep (90% of total capacity) in its 7th year. The limit



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of 450 sheeps has been imposed on the farm because a very large flock would be

difficult to manage. The farm would focus on rearing of young stock for fattening and

marketing. Lambs from six to eight months of age will be purchased and resold in the

market after a fattening period of 120 days.

99.. GGEEOOGGRRAAPPHHIICCAALLPPOOTTEENNTTIIAALLFFOORRIINNVVEESSTTMMEENNTT

In Balochistan, contribution of livestock is estimated to be 40% towards agriculture.

Livestock is the main source of income of more than 75% of the people inhabiting the

countryside of Balochistan. The potential areas for investment to establish proposed

project are in sheep rearing areas of country where grazing is available. Southern,

Central and some Northern parts of Balochistan are suitable areas to establish sheep

farms. Major breeding areas in Balochistan include Kalat, Khuzdar, Kharan, Mastung,

Noshki Mashkel, Sibi, Naseerabad, Jaffarabad, Kohlo, Dera Bugti, Killa Saifullah, Ziarat,

Loralai, Zhob, Barkhan and Lasbela Districts.

1100..PPOOTTEENNTTIIAALLTTAARRGGEETTMMAARRKKEETTSS//CCIITTIIEESS

Target market would be the areas where breeding is being undertaken as well as majorcities like Karachi, Lahore, Rawalpindi, Islamabad, Peshawar etc. In addition to localmarkets there is an enormous export potential to Middle Eastern countries.

1111..PPRROODDUUCCTTIIOONNPPRROOCCEESSSSFFLLOOWW

Animals selected for fattening should be from six to eight months of age. At this age the

animal is weaned and starts eating green fodder and grass. As compared to grown up

sheep the daily weight-gain capacity is also better at this age. Weight and age of all the

selected animals should also be similar otherwise the larger and older animals wouldnot let the smaller animals to eat feed according to their requirement. Selected animals

should not be sick, weak or with physical disabilities.

1111..11 BBrreeeeddSSeelleecctt iioonn

The farmers should not only select good quality breed which can bring better results for

fattening but also select most suitable animals from the selected breed. Through better

management, the weight gain of these selected breeds would be higher. The most

suitable breeds for fattening include Balochi, Harnai and Bibrik sheep.

The animals should be tagged on arrival to the farm. The information to be recorded

includes breed, live weight, age and date of purchase etc.

1111..22 CChhaarraacctteerriisstt iiccssooffBBrreeeeddssRReeccoommmmeennddeeddffoorrSShheeeeppFFaatttteenniinngg::

1111..22..11BBaalloocchhiiSShheeeepp

Balochi sheep is a large sized fat tailed breed, found in Central, Southern and some

South-western parts of the Balochistan. It is used for meat and milk. Coarse wool is also



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collected from it. Its fleece is white with pigmented head and legs. Body weight of adult

varies between 35 and 40 Kg, milk yield is between 40-50 kg in a period of about 125

days. The average fleece production is 1.3 1.8 kg.

1111..22..22BBiibbrriikk

It is a fat and short tailed, mutton type sheep that is found in parts of Loralai Kohlu,

Bugti, Barkhan, Musakhel and Sibi districts in Balochistan province. It is a medium size

breed. Body colour is white with black or brown head. The wool yield is about 1.7 kg.

Average adult live-weight is 27 kg.

1111..22..33HHaarrnnaaii

Harnai is a fat tail, mutton / wool type breed. It is found in parts of Loralai, Quetta, Sibi

and Zhob districts in Balochistan. It is medium sized with a white body coat and a black

or tan spotted head and ears. The wool yield is 2.6 kg with medium fiber diameter. Its

wool is dense and heavy. Average adult body weight is around 30-32 kg. The breedalso produces excellent quality mutton.

1122..PPRROOJJEECCTTCCOOSSTTSSUUMMMMAARRYY

A detailed financial model has been developed to analyze the commercial viability of

Sheep Fattening Farm. 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 appendix

1122..11 PPrroojjeecctt EEccoonnoommiiccss

All the figures in this financial model have been calculated for 315 sheep for total area

of around 9,400 sq.ft, that would be used for different functions of the farm.

The following table shows internal rates of return and payback period.

TTaabbllee11--PPrroojjeecctt EEccoonnoommiiccss

Description DetailsInternal Rate of Return (IRR) 46%

Payback Period (yrs) 3.10

Net Present Value (NPV) 6,873,512



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1122..22 PPrroojjeecctt FFiinnaanncciinngg

Following table provides details of the equity required and variables related to bankloan;

Description DetailsTotal Equity (@ 10%) Rs. 218,884

Bank Loan (@ 90%) Rs. 1,969,955

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

Tenure of the Loan (Years) 8

Grace Period (Year) 1

1122..33 PPrroojjeecctt CCoosstt

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

TTaabbllee11:: PPrroojjeecctt IInnvveessttmmeennttffoorrtthheePPrroojjeecctt

Project Investment Amount (Rs.)

Land 91,233

Building 664,800

Machinery & Equipment 367,500

Furniture & Fixture 10,000

Pre-operating Cost 158,839

Total Capital Cost 1,292,372

Initial Working Capital 896,466

Total Project Cost 2,188,839

1122..44 SSppaacceeRReeqquuiirreemmeenntt

Details of the area required are given below:

TTaabbllee22:: SSppaacceeRReeqquuii rreemmeenntt

Item Space /Animal

Sq.ft.

TotalAreaSq.ft.

Cost /Sq.ft. (Rs.)

Total cost.Rs.

Owners Room 144 500 72,000

Shed Space 20 3,000 150 450,000

Stores for Raw Material 240 300 72,000

Attendants Room 136 300 40,800

Open Paddock 40 6,000 5 30,000

Total Cost 664,800



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Total investment in building and infrastructure is calculated to be approximately Rs. 0.66million.

1122..55 MMaacchhiinneerryyaannddEEqquuiippmmeenntt

Following table provides list of machinery and equipment required for Sheep FatteningFarm working for Livestock sector.

TTaabbllee33:: LLiisstt ooffMMaacchhiinneerryyaannddEEqquuiippmmeenntt

Description Unit Unit Price(Rs.)

Total Cost.(Rs.)

Chopper 1 15,000 15,000

Water Pump with boring 1 250,000 250,000

Mangers 10. 2,500 25,000

Tubs 5 1,500 7,500

Hand Cart 1 5,000 5,000

Weigh Scale 1 50,000 50,000

Misc 1 15,000 15,000

Total 367,500

1122..66 HHuummaannRReessoouurrcceeRReeqquuiirreemmeenntt

TTaabbllee44:: HHuummaannRReessoouurrcceeRReeqquuii rreemmeenntt

Description No. of

Employees

Salary per

monthOwner / Manager 1 25,000

Farm Attendants 3 30,000

Total Staff 4 55,000

The table above provides details of human resource required for sheep fattening farm.

1122..77 RReevveennuueeGGeenneerraatt iioonn

Product

Sales

Price(Rs./Unit)

First Year

Production(Sheep)

First YearSales

Revenue(Rs)

Sale of Live Sheep 12,375 315 3,898,125

Total Sales Revenue 3,898,125



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1133..CCRRIITTIICCAALL FFAACCTTOORR

Establishment of the farm in areas where cheap land is available, but still not very

far from the animal markets.

The farming should be done on scientific grounds taking care of Vaccination,

Medicine etc.

Healthy and attractive local female without horn should be selected, as it has

better characteristics compatible with the local environment.

Healthy and quality male stock should be selected for breeding.

New feeding techniques including concentrate feeding and preparation of urea

molasses blocks, wheat straw treatment should be used for better results.

Well-trained / experienced staff adding to the efficiency of the farm.



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1144..AANNNNEEXXUURREE

1144..11 IInnccoommeeSSttaatteemmeenntt

Statement Summaries SMED

Income Statement

Rs. in actu

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year

Revenue 3,898,125 4,594,219 5,390,550 6,300,205 7,337,886 8,071,675 8,878,842 9,766,727 10,743,399 11,817

Cost of Goods Sold

Feed & Vaccination Cost 709,774 780,751 858,826 944,709 1,039,180 1,143,098 1,257,407 1,383,148 1,521,463 1,673

Cost of Sheeps 1,724,625 1,897,088 2,086,796 2,295,476 2,525,023 2,777,526 3,055,278 3,360,806 3,696,887 4,066

Direct Labor 360,000 396,000 435,600 479,160 527,076 579,784 637,762 701,538 771,692 848

Repair & Maintenance 15,000 16,875 18,900 21,085 23,442 24,614 25,845 27,137 28,494 29

Utilities 60,000 70,714 82,971 96,973 112,945 124,239 136,663 150,330 165,363 181

Total Cost of Sales 2,869,399 3,161,428 3,483,094 3,837,403 4,227,666 4,649,260 5,112,956 5,622,959 6,183,898 6,800

Gross Profit 1,028,726 1,432,791 1,907,456 2,462,802 3,110,220 3,422,414 3,765,886 4,143,767 4,559,501 5,016

General administration & selling expenses

Administration expense 309,000 339,900 373,890 411,279 452,407 497,648 547,412 602,154 662,369 728

T ravelling & Comm. expense (phone , fax, etc.) 60,000 66,000 72,600 79,860 87,846 96,631 106,294 116,923 128,615 141

Office vehicles running expense - - - - - - - - -

Office expenses (stationary, etc.) 7,500 8,250 9,075 9,983 10,981 12,079 13,287 14,615 16,077 17

Depreciation expense 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104

Amortization expense 31,768 31,768 31,768 31,768 31,768 - - - -

Property tax expense - - - - - - - - -

Miscellaneous expense 19,491 22,971 26,953 31,501 36,689 40,358 44,394 48,834 53,717 59

Subtotal 531,988 573,119 618,516 668,620 723,921 750,945 815,617 886,756 965,008 1,051

Operating Income 496,738 859,672 1,288,940 1,794,182 2,386,299 2,671,469 2,950,270 3,257,012 3,594,493 3,965

Other income - - - - - - - - -

Gain / (loss) on sale of assets - - - - - - - - -

Earnings Before Interest & Taxes 496,738 859,672 1,288,940 1,794,182 2,386,299 2,671,469 2,950,270 3,257,012 3,594,493 3,965

Interest expense 163,505 149,691 131,534 111,870 90,574 67,510 42,533 15,482 -

Earnings Before Tax 333,233 709,981 1,157,407 1,682,312 2,295,725 2,603,959 2,907,737 3,241,530 3,594,493 3,965

Tax 66,647 141,996 231,481 336,462 459,145 520,792 581,547 648,306 718,899 793

NET PROFIT/(LOSS) AFTER TAX 266,586 567,985 925,925 1,345,850 1,836,580 2,083,167 2,326,190 2,593,224 2,875,594 3,172

Balance brought forward 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821

Total profit available for appropriation 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993

Dividend - - - - - - - - -

Balance carried forward 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993



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1144..22 PPrroojjeeccttBBaallaanncceeSShheeeett

Statement Summaries SMED

Balance SheetRs. in actu

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year

Assets

Current assets

Cash & Bank 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751

Accounts receivable - 213,596 232,667 273,555 320,295 373,646 422,180 464,398 510,838 561,921 618

Finished goods inventory - - - - - - - - - -

Eq uip me nt s pa re pa rt in ve nt ory 5,000 5,906 6,946 8,136 9,498 10,471 11,545 12,728 14,033 15,471

Raw material inventory 811,466 937,244 1,082,516 1,250,306 1,444,104 1,667,940 1,926,471 2,225,073 2,569,960 2,968,304

Total Current Assets 896,466 1,514,945 2,014,880 2,857,183 4,102,656 5,820,812 7,726,991 9,855,372 12,228,432 15,242,132 18,370

Fixed assets

Land 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91

Building/Infrastructure 664,800 598,320 531,840 465,360 398,880 332,400 265,920 199,440 132,960 66,480

Machinery & equipment 367,500 330,750 294,000 257,250 220,500 183,750 147,000 110,250 73,500 36,750

Furniture & fixtures 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000

Office vehicles - - - - - - - - - -

Office equipment - - - - - - - - - -

Total Fixed Assets 1,133,533 1,029,303 925,073 820,843 716,613 612,383 508,153 403,923 299,693 195,463 91

Intangi ble asset s

Pre-operation costs 158,839 127,071 95,304 63,536 31,768 - - - - -

Leg al, licens in g, & training cos ts - - - - - - - - - -

Total Intangible Assets 158,839 127,071 95,304 63,536 31,768 - - - - -

TOTAL ASSETS 2,188,839 2,671,320 3,035,257 3,741,562 4,851,037 6,433,196 8,235,144 10,259,296 12,528,125 15,437,596 18,461

Liabilities & Shareholders' Equity

Current liabilities

Accounts payable - 185,893 207,352 231,395 258,349 288,551 322,370 360,347 403,018 450,993 316Total Current Liabilities - 185,893 207,352 231,395 258,349 288,551 322,370 360,347 403,018 450,993 316

Other liabilities

Long term debt 1,969,955 1,969,955 1,751,196 1,514,280 1,257,700 979,825 678,885 352,968 - -

To ta l Lo ng Te rm Lia bilit ie s 1,969,955 1,999,957 1,774,450 1,530,786 1,267,458 982,835 667,797 327,782 (39,284) (53,382) (67

Shareholders' equity

Paid-up capital 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218

Retained earnings - 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993

Total Equity 218,884 485,470 1,053,455 1,979,380 3,325,230 5,161,810 7,244,977 9,571,167 12,164,391 15,039,985 18,212

TOTAL CAPITAL AND LIABILITI 2,188,839 2,671,320 3,035,257 3,741,562 4,851,037 6,433,196 8,235,144 10,259,296 12,528,125 15,437,596 18,461

Note: Total assets valu e will di ffer from project cost du e to first instal lment of leases pa id at th e start of year 0- - - - - - - - - -



13/18

1144..33 PPrroojjeeccttCCaasshhFFlloowwSSttaatteemmeenntt

- - - - - - - - - - -

Statement Summaries SMEDA

Cash Flow Statement

Rs. in actuals

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 - 266,586 567,985 925,925 1,345,850 1,836,580 2,083,167 2,326,190 2,593,224 2,875,594 3,172,632

Add: depreciation expense - 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230amortization expense - 31,768 31,768 31,768 31,768 31,768 - - - - -

Deferred income tax - 30,002 (6,748) (6,748) (6,748) (6,748) (14,098) (14,098) (14,098) (14,098) (14,098)

Accounts receivable - (213,596) (19,071) (40,888) (46,739) (53,352) (48,533) (42,218) (46,440) (51,084) (56,192)

Finished good inventory - - - - - - - - - - -

Equipment inventory (5,000) (906) (1,040) (1,191) (1,362) (974) (1,073) (1,183) (1,305) (1,438) 15,471

Raw material inventory (811,466) (125,777) (145,273) (167,790) (193,797) (223,836) (258,531) (298,603) (344,886) (398,344) 2,968,304

Accounts payable - 185,893 21,459 24,043 26,954 30,202 33,819 37,977 42,671 47,974 (134,823)

Other liabilities - - - - - - - - - - -

Cas h p ro vid ed b y o pe rat io ns (816,466) 278,200 553,311 869,350 1,260,155 1,717,871 1,898,980 2,112,294 2,333,397 2,562,835 6,055,524

Financing activities

Change in long term debt 1,969,955 - (218,759) (236,916) (256,580) (277,876) (300,939) (325,917) (352,968) - -

Issuance of shares 218,884 - - - - - - - - - -

Purchase of (treasury) shares - - - - - - - - - - -

Cash provided by / (used for) financ 2,188,839 - (218,759) (236,916) (256,580) (277,876) (300,939) (325,917) (352,968) - -

Investing activi ties

Capital expenditure (1,292,373) - - - - - - - - - -

Acquisitions - - - - - - - - - - -Cash (used for) / provided by invest (1,292,373) - - - - - - - - - -

NET CASH 80,000 278,200 334,552 632,434 1,003,575 1,439,995 1,598,041 1,786,377 1,980,429 2,562,835 6,055,524

Cash balance brought forward 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436

Cash available for appropria tion 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960

Dividend - - - - - - - - - - -

Cash carried forward 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960



14/18

Pre-Feasibility Study Sheep Fattening Farm

1144..44 UUSSEEFFUULLPPRROOJJEECCTTMMAANNAAGGEEMMEENNTTTTIIPPSS

Technology

List of Machinery & Equipment (As per Section 12.5)

Energy Requirement: Should not be overlooked. Alternate source of energyfor critical operations be arranged in advance.

Marketing

Product Development & Packaging: Expert's help may be engaged for

product / service and packaging design & development.

Ads & Point of Sale Promotion: Business promotion and dissemination

through banners is highly recommended.

Sales & Distribution Network: Expert's advise and strong networking with

livestock exporters and Atrhis of larger cities e.g. Karachi, Lahore, Rawalpindietc.

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. Product cost estimates should be

carefully documented before price setting. Government / Market Committee

controlled prices should be displayed, where applicable.

Human Resources

List of Human Resource (As per Section 12.6)

Adequacy & Competencies: Recruitment ofSkilled and experienced staff.

Performance Based Remuneration:Attempt to manage human resource cost

should be focused through performance measurement and performance based

compensation.

Training & Skill Development: Encouraging training and skill of self &

employees through experts and exposure to best practices is a route to

success. Least cost options for Training and Skill Development (T&SD) may be

linked with compensation benefits and awards.



15/18


1144..55 UUSSEEFFUULLLLIINNKKSS

Prime Ministers Office, www.pmo.gov.pk

Government of Pakistan, www.pakistan.gov.pk

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

Small & Medium Enterprises Development Authority (SMEDA),

www.smeda.org.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

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

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)

www.fpcci.com.pk

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

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

Ministry of National Food Security & Research, www.mnfsr.gov.pk

Ministry of Education, Training & Standards in Higher Education,

www.moptt.gov.pk

Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.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

All Pakistan Meat Exporters and Processors Association, Lahore,

www.apmepa.com

Punjab Agriculture and Meat Company (PAMCO), Lahore,www.pamco.bz

http://www.pbit.gop.pk/http://www.sbi.gos.pk/http://www.apmepa.com/http://www.pamco.bz/http://www.pamco.bz/http://www.apmepa.com/http://www.sbi.gos.pk/http://www.pbit.gop.pk/


16/18


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

Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel.

091-2960109, 9210309

Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 042-

99220140

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

http://www.parc.gov.pk/http://www.parc.gov.pk/http://www.plddb.pk/http://uaf.edu.pk/http://uaf.edu.pk/http://www.luawms.edu.pk/http://www.sau.edu.pk/http://www.gu.edu.pk/N/faculties/Science/Veternary/Veterinary.asphttp://www.aup.edu.pk/http://www.uaar.edu.pk/http://www.iub.edu.pk/http://www.uvas.edu.pk/http://www.bzu.edu.pk/http://www.asf.org.pk/http://www.asf.org.pk/http://www.bzu.edu.pk/http://www.uvas.edu.pk/http://www.iub.edu.pk/http://www.uaar.edu.pk/http://www.aup.edu.pk/http://www.gu.edu.pk/N/faculties/Science/Veternary/Veterinary.asphttp://www.sau.edu.pk/http://www.luawms.edu.pk/http://uaf.edu.pk/http://uaf.edu.pk/http://www.plddb.pk/http://www.parc.gov.pk/http://www.parc.gov.pk/


17/18


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

Livestock Experiment Station (LES), Chak Katora, District Bahawalpur, Tel:

062-2442589

Livestock Experiment Station (LES), Haroonabad, District Bahawalnagar,

Tel: 063-2252960

Directorate of BLPRI, Kherimurat (Attock), L&DD, Punjab, Tel: 057-

2213422, 2212130, 2210781

Directorate of Small Ruminants, Multan, L&DD, Punjab, Tel: 061-9210417

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

Livestock Research Station, Jaba, Mansehra, (Jaba Sheep and Goat

Farm), Tel: 0997-301866

Livestock & Dairy Development, Government of Balochistan,

www.balochistan.gov.pk

Bhagnari Cattle Cum Balochi Sheep Farm Usta Muhammad, Dera Allah Yarc/o L&DD Quetta, Tel: 081-9202564

http://www.sindh.gov.pk/http://www.khyberpakhtunkhwa.gov.pk/http://www.balochistan.gov.pk/http://www.balochistan.gov.pk/http://www.khyberpakhtunkhwa.gov.pk/http://www.sindh.gov.pk/


18/18


1155....KKEEYYAASSSSUUMMPPTTIIOONN

Particulars Assumption

Sales Price Growth Rate 5 % per year

Capacity Utilization Growth Rate 5 % per year

Increase in Cost of Raw Materials 10 % per yearIncrease in Staff Salaries 10 % per year

Increase in Utilities (Electricity / Water / Gas) 10 % per year

Debt / Equity Ratio 90 : 10

Depreciation

Plant Building 10 % per annum

Machinery 10 % per annum

Office Furniture & Equipment 10 % per annum

Loan Period 8 Years (inclusive of 1 year graceperiod)

Loan Installments Quarterly

Financial Charges (Loan Rate) 08 % per annum

Documents

Sheep Fattening Farm