Pre-Feasibility Study

(Calf Fattening)

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 Complex, 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 Complex, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042) 36304926-7 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) 35610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE Khyber Pakhtunkhwa Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 111-111-456 Fax: (091) 5286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE Balochistan Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 2831623, 2831702 Fax: (081) 2831922 helpdesk-qta@smeda.org.pk

Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost December, 2013

Table of Contents
1. DISCLAIMER .......................................................................................................................................... 2 2. PURPOSE OF THE DOCUMENT ......................................................................................................... 3 3. INTRODUCTION TO SMEDA .............................................................................................................. 3 4. INTRODUCTION TO SCHEME ........................................................................................................... 4 5. EXECUTIVE SUMMARY ...................................................................................................................... 4 6. BRIEF DESCRITION OF PROJECT & PRODUCT ........................................................................... 4 7. CRITICAL FACTORS ............................................................................................................................ 5 8. INSTALLED AND OPERATIONAL CAPACITIES ........................................................................... 5 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT ..................................................................... 5 10. POTENTIAL TARGET MARKET / CITIES..................................................................................... 6 11. PROJECT COST SUMMARY............................................................................................................. 6 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 PROJECT ECONOMICS ............................................................................................................................ 6 PROJECT FINANCING ............................................................................................................................. 7 PROJECT COST ...................................................................................................................................... 7 SPACE REQUIREMENT ........................................................................................................................... 7 MACHINERY AND EQUIPMENT .............................................................................................................. 8 RAW MATERIAL REQUIREMENTS .......................................................................................................... 8 HUMAN RESOURCE REQUIREMENT ....................................................................................................... 8 REVENUE GENERATION ........................................................................................................................ 9 OTHER COSTS ....................................................................................................................................... 9

12. CONTACTS DETAILS OF SUPPLIERS AND CONSULTANTS ................................................... 9 13. ANNEXURE......................................................................................................................................... 10 13.1 13.2 13.3 13.4 13.5 PROFIT & LOSS STATEMENT ........................................................................................................... 10 BALANCE SHEET............................................................................................................................ 11 CASH FLOW STATEMENT............................................................................................................. 12 USEFUL PROJECT MANAGEMENT TIPS..................................................................................... 13 USEFUL LINKS .................................................................................................................................... 14

14. KEY ASSUMPTIONS ......................................................................................................................... 17

1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general idea and information on the 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 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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Pre-Feasibility Study

Calf Fattening

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, production, marketing, finance and business management. The purpose of this document is to facilitate potential investors in Calf Fattening 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 the basis of investment decisions.

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 hallmark of SME facilitation by SMEDA. Concurrent to the pre-feasibility studies, a broad spectrum of business development services is also offered to 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.
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Pre-Feasibility Study

Calf Fattening

4. INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loan 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 the National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL). Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of 1 year grace period, 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).

5. EXECUTIVE SUMMARY
In Calf fattening business, calves are raised on nutritionally balanced feed to get targeted weight gain in a specified time. These calves are grown in groups and each batch stays on farm for a period of 120 days. The expected live body weight gain ranges between 700 - 850 grams/day. Higher yields are achievable with better farm management, and by selecting better quality breeds. Calves are raised in rural and semi-urban areas and sold in urban markets normally in livestock markets (Mandies). A farm of 146 calves per annum is suggested in this pre-feasibility study. An estimated investment of Rs 2.18 million is required. The Internal Rate of Return (IRR), Net Present Value (NPV) & payback period of the project are 41%, Rs.8.15 million and 3.56 years respectively. The project is proposed to operate as a sole-proprietorship.

6. BRIEF DESCRITION OF PROJECT & PRODUCT

Calf fattening venture suggested in this study is based on raising 146 calves per year at the farm premises. The calves, preferably males, between 9-12 months of age, are fed on nutritionally balanced concentrate ration or Total Mixed Ration (TMR) as major source of energy and protein for a period of 120 days to get higher body weight gain. Live weight of these calves is around 100 kg. If these calves are fed properly on formulated fattening feed, an additional weight up to 96-100 kg can be achieved. The daily weight gain varies between 700 to 850 grams depending on the quality of feed given to them. The subject business can

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Pre-Feasibility Study

Calf Fattening

be set-up at any appropriate location with easy availability of fodder and water. There is a year-round market, however, the demand increases before occasions like Eid-ul-Fitr and Eid-ul-Azha. On these occasions, well fed animals are sold at a premium price higher than usual weight based price. The proposed legal structure of the business entity is sole proprietorship.

7. CRITICAL FACTORS
Use of balanced feed purchased from well reputed companies or formulated accordingly. Proper selection of animals based on breed, age and health condition. Recommended local breeds include Tharparkar, Rojhan, Dhanni, Lohani and Bhagnari, however, the calves of Sahiwal, Red Sindhi and cross bred calves of Brahaman, Angus and Charolais etc. may also be considered. Appropriate farm management practices (feeding, housing, disease control, comfortable & ventilated barns and round the clock availability of drinking water etc) including record keeping of each animal for feed, weight and diseases. Timely vaccination against infectious diseases such as Rinderpest, Black Quarter and Foot & Mouth Disease, and timely medication for endoparasitic infestations. Regular technical assistance from livestock professionals and experts.

8. INSTALLED AND OPERATIONAL CAPACITIES

In this pre-feasibility study, 146 young calves of 9 to 12 months of age are raised per annum, divided in 3 production cycles / batches; each having 48-49 calves, raised for 4 months on Feed Lot Fattening system. The mortality is assumed to be 1 animal per annum. The project will operate at 65% of its capacity in its 1st year of operations.

9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

Metropolitan cities like Lahore, Karachi, Multan, Faisalabad, Rawalpindi, etc. are major markets of meat. However, farm lands and rural areas with abundant water and good soil for fodder make a better choice for farming; provided access to livestock mandies and veterinary services is ensured.

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Pre-Feasibility Study

Calf Fattening

10.

POTENTIAL TARGET MARKET / CITIES

Apart from Sialkot, Jhang, Rahim Yar Khan, Bahawalnagar, Bahawalpur, Sahiwal, Okara etc in the Punjab, livestock markets in all cities and peri urban locations are primary markets, in addition to specially arranged locations for larger cities during Eid festival in the urban markets. Normally animals are sold on Live Body Weight basis; the price of fattened calves varies according to animals health and market conditions. In this Pre-feasibility Rs. 195 per kg of live body weight is assumed as a selling price. Following are some of the target clients for a calf-fattening farmer: Local farmers Livestock traders Butchers Contractors Slaughter house owners

11.

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of Calf Fattening farm project under the Prime Ministers Youth Business Loan. Various cost and revenue related assumptions along with results of the analysis are outlined in this section. 11.1 Project Economics

The pre-feasibility suggests fattening of 146 calves per year in 3 groups. Each group of 48 - 49 calves stays on farm premises for 120 days at rented, purpose built farm. The total cost of the project is Rs. 2.18 million, out of which capital investment is Rs. 0.185 million and working capital requirement is Rs. 1.99 million. The following table shows internal rate of return and payback period. Table 1 - Project Economics Description Internal Rate of Return (IRR) Payback Period (yrs) Net Present Value (NPV) Details 41% 3.56 8,154,681

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Pre-Feasibility Study

Calf Fattening

11.2

Project Financing

Following table provides details of the equity required and variables related to bank loan; Table 2: Project Financing Description Details Total Equity (10%) Rs. 218,273 Bank Loan (90%) Rs. 1,964,461 Markup to the Borrower (%age/annum) 8% Tenure of the Loan (Years) 8 Grace Period (Year) 1 11.3 Project Cost

Following table provides details of investment requirement: Table 3: Project Investment Capital Investment Machinery & equipment Furniture & fixtures Pre-operating costs Total Capital Costs Total Working Capital Total Investment 11.4 Space Requirement Amount (Rs.) 105,000 10,000 70,000 185,000 1,997,735 2,182,735

The area has been calculated on the basis of very simple space requirement for animal sheds, open paddock, labourers room, management building and store. Following table shows calculations for project space requirement. Table 4: Space Requirement Space Requirement Management building Shed for Animals Store (feed, medicines etc) Attendants Room Open Paddock Total Infrastructure Space (Sq.ft) 144 3,750 240 136 7,500 11,770

It is assumed that the calves would require aforementioned space in the farm. Furthermore, shed space and open paddock is calculated on the basis of maximum capacity of animals per batch i.e. 75 animals per batch. The shed would be acquired on monthly rent of Rs. 18,175 per month.

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Pre-Feasibility Study

Calf Fattening

11.5

Machinery and Equipment

Following table provides list of machinery and equipment required for the proposed Calf Fattening farm: Table 5: List of Machinery, Equipment & Furniture Farm supplies Chopper Water pump Weighing Scale Miscellaneous farm utensils Furniture Total Machinery Cost Rate per unit 15,000 25,000 50,000 15,000 10,000 No. 1 1 1 1 1 Amount (Rs.) 15,000 25,000 50,000 15,000 10,000 115,000

For calf fattening farm, basic equipments include feeding mangers, water troughs etc. 11.6 Raw Material Requirements Table 6: Cost of Material Description Unit Rate (Rs.) Qty Cost of calves Per calf 14,000 146 Feed per calf Per calf 15,810 146 Vaccination/ Medication Per calf 200 146 Total Cost Note: Figures have been rounded off to the nearest decimal place 11.7 Human Resource Requirement Table 7: Human Resource Requirement Description Farm Helper Total No. 1 1 Monthly Salary (Rs.) 10,000 10,000 Annual salary (Rs.) 120,000 120,000 Total Rs. 2,047,500 2,312,267 29,250 4,389,017

Table 7 provides the details of human resource required to run this project. One trained person can easily handle 40 - 45 calves during the fattening period of 120 days.

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Pre-Feasibility Study

Calf Fattening

11.8

Revenue Generation Table 8: Revenue Generation Unit Sale Price First Year Rs./Unit Production (Units) Per calf 40,400 145* Revenue in Year 1 (Rs.) 5,868,100 5,868,100

Description

Fattened calves sold Total Revenue

* Calves are divided in three groups, one of 48, two of 49, hence 146 calves per annum with mortality loss of 1 calf. Figures have been rounded off to the nearest decimal place

11.9

Other Costs

An essential cost to be borne by the farm is the electricity expense, which is assumed to be Rs. 850 per animal.

12.

CONTACTS DETAILS OF SUPPLIERS AND CONSULTANTS

Feed Suppliers Consultants Dr. M. Sarwar Dean, Faculty of Animal Husbandry Uni. Of Agriculture, Faisalabad Ph: +92-41-9920161-70 Prof. Dr. Muhammad Younas Department of Livestock Management, Faculty of Animal Husbandry, University of Agriculture, Faisalabad, Pakistan Ph: +92-41-9200161-170 Dr. Shaukat Ali Bhatti Institute of Animal Nutrition and Feed Technology, Uni. Of Agriculture, Faisalabad. Ph: +92-41-9920161-70 Cell: 0321-7833212 Prof. Dr. Abdul Raziq Kakar Lasbela University of Agriculture, Water and Marine Sciences, Balochistan. Ph: +92-0853-610921

Hi-Tech Feeds (Pvt.) Ltd. 1-A, Shadman Chowk Jail Road, Lahore Phone : +92-42-37564503 Fax : +92-42-37564508 ICI Pakistan Cattle Feed 63-Mozang Road Lahore Tel. 042-36370042

National Feeds Ltd. 171 Shadman II Lahore. Phone: +92-42 37551405-8 Fax: +92-42- 37573045

Alhalal Wanda Al-Halal Livestock Concern Company Super High Way Jahania Tel. 065-2002373, 0300 6881293

Big Feed (PVT) Ltd. Dr. Tanveer Ahmad 2-A, Ahmad Block, New Garden Town, Pir Mehr Ali Shah Arid Agriculture Lahore University, Rawalpindi. Tel. 042-35835374-35835373 Ph: 051-9290115, Cell: 0312-5103351

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Pre-Feasibility Study

Calf Fattening

13.

ANNEXURE
13.1 PROFIT & LOSS Statement

Income Statement
Revenue Cost of sales Feed & Vaccination Cost Cost of Calves Direct Labor Repair & Maintenance Utilities Total cost of sales Gross Profit General administration & selling expenses Building rental expense Depreciation expense Amortization of pre-operating costs Bad debt expense Subtotal Operating Income Other income (interest on cash) Earnings Before Interest & Taxes Interest expense on long term debt (Project Loan) Subtotal Earnings Before Tax Tax NET PROFIT/(LOSS) AFTER TAX Year 1 5,868,100 2,341,517 2,047,500 120,000 65,363 123,463 4,697,842 1,170,258 330,000 11,500 14,000 29,341 384,841 785,417 785,417 163,049 163,049 622,368 22,237 600,131 Year 2 7,410,370 2,971,926 2,598,750 132,000 78,789 155,911 5,937,376 1,472,994 363,000 11,500 14,000 37,052 425,552 1,047,442 1,047,442 149,273 149,273 898,168 57,225 840,943 Year 3 9,251,297 3,705,001 3,239,775 145,200 93,892 194,644 7,378,511 1,872,786 399,300 11,500 14,000 46,256 471,056 1,401,729 1,401,729 131,167 131,167 1,270,562 113,084 1,157,478 Year 4 11,386,306 4,554,972 3,983,018 159,720 110,307 239,563 9,047,580 2,338,726 439,230 11,500 14,000 56,932 521,662 1,817,064 1,817,064 111,558 111,558 1,705,506 188,601 1,516,905 Year 5 13,190,370 5,274,178 4,611,915 175,692 121,976 277,520 10,461,281 2,729,089 483,153 11,500 14,000 65,952 574,605 2,154,484 2,154,484 90,321 90,321 2,064,163 260,332 1,803,830 Year 6 14,509,407 5,801,596 5,073,107 193,261 128,075 305,272 11,501,310 3,008,096 531,468 11,500 72,547 615,515 2,392,581 2,392,581 67,322 67,322 2,325,259 312,552 2,012,707 Year 7 15,960,347 6,381,755 5,580,417 212,587 134,479 335,799 12,645,038 3,315,310 584,615 11,500 79,802 675,917 2,639,393 2,639,393 42,414 42,414 2,596,979 371,745 2,225,235 Year 8 17,556,382 7,019,931 6,138,459 233,846 141,203 369,379 13,902,817 3,653,565 643,077 11,500 87,782 742,359 2,911,206 2,911,206 15,438 15,438 2,895,768 446,442 2,449,326 Year 9 19,312,020 7,721,924 6,752,305 257,231 148,263 406,317 15,286,039 4,025,981 707,384 11,500 96,560 815,444 3,210,537 3,210,537 3,210,537 525,134 2,685,403 Year 10 21,243,222 8,494,116 7,427,535 282,954 155,676 446,949 16,807,230 4,435,993 778,123 11,500 106,216 895,839 3,540,154 3,540,154 3,540,154 607,538 2,932,616

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13.2
Balance Sheet

BALANCE SHEET
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Assets Current assets Cash & Bank Accounts receivable Equipment spare part inventory Raw material inventory Pre-paid building rent Total Current Assets Fixed assets Machinery & equipment Furniture & fixtures Total Fixed Assets Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Short term debt Total Current Liabilities Other liabilities Deferred tax Long term debt (Project Loan) Total Long Term Liabilities Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES

430,442 21,788 1,463,006 82,500 1,997,735 105,000 10,000 115,000 70,000 70,000 2,182,735

608,422 321,540 27,576 1,949,737 90,750 2,998,024 94,500 9,000 103,500 56,000 56,000 3,157,524

752,090 363,794 34,505 2,552,205 99,825 3,802,420 84,000 8,000 92,000 42,000 42,000 3,936,420

1,076,015 456,484 42,565 3,294,597 109,808 4,979,468 73,500 7,000 80,500 28,000 28,000 5,087,968

1,840,981 565,414 49,421 4,005,536 120,788 6,582,140 63,000 6,000 69,000 14,000 14,000 6,665,140

3,016,426 673,334 54,487 4,626,394 132,867 8,503,507 52,500 5,000 57,500 8,561,007

4,325,661 758,898 60,071 5,343,485 146,154 10,634,269 42,000 4,000 46,000 10,680,269

5,789,888 834,788 66,229 6,171,725 160,769 13,023,399 31,500 3,000 34,500 13,057,899

7,400,914 918,267 73,017 7,128,343 176,846 15,697,387 21,000 2,000 23,000 15,720,387

9,534,502 1,010,093 80,501 8,233,236 194,531 19,052,863 10,500 1,000 11,500 19,064,363

21,117,584 1,111,103 22,228,687 22,228,687

352,422 352,422 22,237 1,964,461 1,986,698 218,273 600,131 818,405 3,157,524

451,297 451,297 79,462 1,746,313 1,825,774 218,273 1,441,074 1,659,348 3,936,420

568,539 568,539 192,546 1,510,057 1,702,603 218,273 2,598,552 2,816,826 5,087,968

696,069 696,069 381,147 1,254,193 1,635,340 218,273 4,115,458 4,333,731 6,665,140

804,874 804,874 641,479 977,092 1,618,572 218,273 5,919,288 6,137,562 8,561,007

898,977 898,977 954,031 676,992 1,631,023 218,273 7,931,995 8,150,269 10,680,269

1,004,636 1,004,636 1,325,776 351,984 1,677,759 218,273 10,157,230 10,375,503 13,057,899

1,123,340 1,123,340 1,772,217 1,772,217 218,273 12,606,556 12,824,830 15,720,387

1,256,780 1,256,780 2,297,351 2,297,351 218,273 15,291,959 15,510,233 19,064,363

880,949 880,949 2,904,889 2,904,889 218,273 18,224,575 18,442,848 22,228,687

1,964,461 1,964,461 218,273 218,273 2,182,735

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13.3

CASH FLOW STATEMENT

Cash Flow Statement

Year 0 Operating activities Net profit Add: depreciation expense amortization of pre-operating costs Deferred income tax Accounts receivable Equipment inventory Raw material inventory Pre-paid building rent Accounts payable Cash provided by operations Financing activities Project Loan - principal repayment Short term debt principal repayment Additions to Project Loan Issuance of shares Cash provided by / (used for) financing activities Investing activities Capital expenditure Cash (used for) / provided by investing activities NET CASH Year 1 600,131 11,500 14,000 22,237 (321,540) (5,789) (486,731) (8,250) 352,422 177,980 177,980 Year 2 840,943 11,500 14,000 57,225 (42,254) (6,929) (602,469) (9,075) 98,876 361,818 (218,149) (218,149) 143,669 Year 3 1,157,478 11,500 14,000 113,084 (92,690) (8,060) (742,391) (9,983) 117,241 560,180 (236,255) (236,255) 323,925 Year 4 1,516,905 11,500 14,000 188,601 (108,930) (6,856) (710,939) (10,981) 127,530 1,020,831 (255,864) (255,864) 764,966 Year 5 1,803,830 11,500 14,000 260,332 (107,920) (5,066) (620,858) (12,079) 108,805 1,452,546 (277,101) (277,101) 1,175,445 Year 6 2,012,707 11,500 312,552 (85,564) (5,585) (717,091) (13,287) 94,103 1,609,335 (300,100) (300,100) 1,309,235 Year 7 2,225,235 11,500 371,745 (75,890) (6,157) (828,240) (14,615) 105,659 1,789,235 (325,008) (325,008) 1,464,227 Year 8 2,449,326 11,500 446,442 (83,479) (6,788) (956,617) (16,077) 118,704 1,963,010 (351,984) (351,984) 1,611,026 Year 9 2,685,403 11,500 525,134 (91,827) (7,484) (1,104,893) (17,685) 133,440 2,133,588 2,133,588 Year 10 2,932,616 11,500 607,538 (101,009) 80,501 8,233,236 194,531 (375,830) 11,583,082 11,583,082

(21,788) (1,463,006) (82,500) (1,567,293)

1,964,461 218,273 2,182,735 (185,000) (185,000) 430,442

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13.4 Technology

USEFUL PROJECT MANAGEMENT TIPS

Water Requirement: Should not be underestimated and abundant source of clean water be arranged in advance. Feed Suppliers: Quality test reports should be sought from feed suppliers.

Human Resources Adequacy & Competencies: Skilled and experienced staff should be recruited. 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 of best practices is route to success. Least cost options for Training and Skill Development (T&SD) may be linked with compensation benefits and awards.

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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 Small & Medium Enterprises Development Authority, www.smeda.org.pk National Bank of Pakistan (NBP), www.nbp.com.pk First Women Bank Limited (FWBL), www.fwbl.com.pk Ministry of National Food Security & Research, www.mnfsr.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 Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.pk Federation of Pakistan Chambers of Commerce and Industry (FPCCI) 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, Shahrae-Faisal, Karachi, Tel. 021-99207512-4, www.sbi.gos.pk State Bank of Pakistan (SBP), www.sbp.org.pk All Pakistan Meat Exporters and Processors Association, Lahore, www.apmepa.com Punjab Agriculture and Meat Company (PAMCO), Lahore, www.pamco.bz 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

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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 Livestock Experiment Station (LES), Rakh Ghulaman, District Bhakkar, Tel: 0453446134 Livestock Experiment Station (LES), Khizarabad, District Sargodha, Tel: 048-3019835

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Pre-Feasibility Study

Calf Fattening

Research & Development Centre, Rakh Khairewala, District Layyah Livestock Experiment Station (LES), Khushab Tel: 0454-215543 Directorate of Small Holder Dairy Development, Gujranwala Tel: 055-9200410-11, 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: 0632252960 Livestock Experiment Station (LES), Dera Chahl Lahore, L&DD, Punjab, Tel: 04299239818, 99239819 Directorate of BLPRI, Kherimurat (Attock), L&DD, Punjab, Tel: 057-2213422, 2212130, 2210781 Research Centre for Conservation Sahiwal Cattle (RCCSC), Jhang, Tel: 047-9200329, 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 Agriculture & Livestock www.khyberpakhtunkhwa.gov.pk Department, Government of KPK,

Cattle Breeding & Dairy Farm, Harichand, District Charsadda, Khyber Pakhtunkhuwah, Tel: 091-6640187 Buffalo Breeding & Dairy Farm, D.I.Khan, KPK, Tel: 0966-923150 Livestock & Dairy Development, Government of Balochistan, www.balochistan.gov.pk Government Dairy Farm Quetta, Tel: 081-9202564 Bhagnari Cattle Cum Balochi Sheep Farm , Ustad 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

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Pre-Feasibility Study

Calf Fattening

14.

KEY ASSUMPTIONS
Table A: Financial Assumptions Project life (years) Debt Equity ratio Interest rate Debt tenure (years) Grace period (year) Debt payments per year Table B: Production and Revenue Assumptions Annual Installed capacity (Calves) Capacity Utilization (%) Maximum Capacity % Capacity Utilization Growth per year % Annual Production (calves) in first year Number of Calves fattened per production cycle Number of production cycles per year Fattening days Table C: Expense Assumptions Mortality Rate per annum Vaccination/ Medication cost (Rs. per calf) Open Space per animal (Sq. ft) Total Mixed Ration requirement (% of live body weight) Price of Total Mixed Ration (Rs. Per Kg) 1 200 50 3.5 25 225 65 100 10 146 48-49 3 120 10 90:10 8% 8 1 12

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