PRESENTATION ON BUSINESS PLAN

GROUP MEMBERS :
Wajid Ali

3335

Haifa Saleem

3336

Shakeel Aslam

3338

PRESENTED TO:
Mr. Usman M Ghauri

 Dairy farming is not an

organized
sector
in
Pakistan.
The demand of commercial
dairy farms is increasing
day by day and there is a
much market potential and
growth in this business.
Livestock is an important
sector
in
Pakistans
economy and contributes
about 11.9 percent in the
GDP of Pakistan .

Business Profile
Type
Industry
Founded At

:
:
:

Phone No.
:
Email Address :
Founder(s)
:

Private
Dairy Farm
Kharian, Gujrat

+92-53-123-4567
d_gardens@gmail.com
Wajid Ali
Haifa Saleem
Shakeel Aslam

Dairy Gardens
(Our Business Name)

(Our Logo)

Nothing but Milk"

(Our Slogan)

Our Vision
Our Farm is committed to provide quality and
unadulterated milk to our customers.

Our Mission
Work, Maximize and Grow.

Our Philosophy
Work to Excel.

BUSINESS
PLAN

Description of the Business

Our farm is into the business of selling quality cow
milk.

Growth Trends in This Business

The market for cow milk is always growing
constantly.
Pakistan's annual milk production has more than
doubled in the last 20 years, rising from 15 million
tones to 36.2 million tones in 2013.

Business Organization
The form of organizational structure chosen for our
dairy farm is partnership, as the capital required is
very high and the entire range of business activities
can not be efficiently handled by a single person.

Licenses
License is not mandatory for dairy farming but well
prefer to get registered our dairy farm.

Insurance
Each cow would be insured with Adam Jee
Insurance with a premium of Rs.12,500 per annum.

MARKETING
PLAN

CONSUMER
GOODS

INDUSTRIAL
GOODS

No augmented
part

Healthy

Nutritious

Volume

Purity

Fresh

Core part

Actual part
Augmented
part

 With the every passing day, dairy products are

becoming costlier because livestock farming has
not scientifically grown with the increase in
population.
In Pakistan, price of milk increases by 5-10 % per
liter annually.
Growing demand for dairy products is driving local
milk prices.

 The milk price varies according to its quality and the

season.
In an average, it is sold at RS. 80-90 per liter in the
direct consumption in Kharian and in its
surroundings.
We have decided that price of our milk will be in
accordance with the response of customers
preference and competitors price, we are going to
introduce our product so our price will be low as
compare to other milk suppliers i.e., Rs.70/liter.

o We have chosen Kharian for starting our dairy farm

business, because this particular location provides us
multiple advantages.
o Kharian is one of the proprietors home town and having
his family goodwill in this area from last 5 decades.
Therefore support of people will be always with the Dairy
Gardens.
o Well constructed road connected to GT Road (approx. 10
km away) with two way.
o Well irrigation system is available.
o Veterinary hospital facilities are near by.

o Also the people of Kharian prefer fresh milk over

processed milk, thats why it is highly demanded in the
said area due to scarcity of good quality of fresh milk
because the people of this area have shifted their focus
from livestock to other activities.
o Also the per capita income in said area is relatively high
because people from Kharian (both rural & urban areas)
are working in Gulf & European countries.
o Thats why they are always willing to buy fresh milk
without bothering about its price.

o And one of the biggest advantage we have is the

range of Pubbi Hills that can be used for grazing
without incurring any cost.

Pubbi Hills

Advertising
Broachers for retailers.
Advertisement by local newspaper.

Personal Selling
Well distribute milk to the retailers.
Public Relations
Well be involved in the community.
Well also offer open selling of milk directly
from the farm.

Segmentation Variable

Data

Demographic
Age

NA

Gender

Male , Female

Family size

NA

Family life cycle

Married , Unmarried

Psychographic
Social class

Lower middle class, Upper middle class

Lifestyle

NA

Behavioral
Occasion

NA

Benefits

Quality, Taste, Purity, Nutritious

User Status

First time user

TARGET CUSTOMERS
Local people

o These are the local customers in surrounding areas who

directly buy the milk from the farm.
Gawalas

o The local term used for milkman. They are the business
customers and further sell the milk to households in nearby
towns.
Milk Collection Companies

o Nestle and other local companies who have plants for

processed milk are also focused as target customers.
Hotels and Bakeries

o We have planned to deliver the milk in major hotels and

bakeries in Kharian and other cities of District Gujrat.

B to B Customers
(Dealers will not be involved with Dairy Gardens)
Particulars

Deals

Industry

Food oriented: 3-5% discount depending

upon order and location.
Retailers: 5- 8% depending upon the
quantity and location.

Location

Kharian City and Cantonment: 5% for

retailers, 10% for Food oriented
businesses.
All nearby Villages: 10.5% for retailers, 8%
for Food oriented business.

Size of the firm

Larger the firm, larger the discounts

(according to order)

Competitors:
Currently, there are not many dairy farms operating
in Kharian & surrounding areas. But the some major
market players are as follows:
Ghulam Qadir & Son Dairy Farm
Hussain Dairy Farm
Western Dairy Farm

SWOT
ANALYSIS

o High domestic consumption

o Good milk quality

o Full personal involvement
o Market is not going to ruin

o Income from the day first

o Utilization of wastes (Cow Dung)

o Unorganized sector, unaware of

basic farm management practices
o Farmers lack of technical skills,
initiative and experience in modern
dairy farming
o Low application of research work
o Production losses due to endemic
diseases every year (according to
the research)

o Government of Pakistan & Sate Bank of Pakistan

priority sector
o Dairy products needs are much higher than
supply
o Commercially viable sector with great credit
potential and absorption capacity
o There is no strong supplier in the market
o High revenue

o High risks of diseases in live stock

o Unorganized sector in Pakistan, needs a lot of
cleaning
o High risks of diseases in live stock
o Power Crises
o There is always a possibility of a competitor
entering the market

Market Opportunity
o

Pakistan is the forth largest milk producer in the world.

Largest irrigation network in the world.

Livestock is contributing about 52.2% to the agricultural

sector of Pakistan.

The milk market is growing at a growth rate of 4.5%

annually with increase in milk consumption.

Also metropolitan cities are the major markets for the

sale of milk.

FINANCIAL PLAN
Estimated data for financial plan:
o Proposed Breed: Jersey Cow
o No. of cows 30
o Cost of the cow Rs.250,000

o Average milk produced per day will be 600 liters

o Price for the milk will be Rs.70 / liter

Land:

FARM REQUIREMENTS

About 1.0 acres of land will be required. (25-120 animals maximum)

The agricultural land cost per acre in our proposed location (In My

village, 10 Km from GT Road Kharian) is Rs.800,000.

Labor:
A supervisor (farm manager) will be hired to supervise all the farm

activities.
Three farm workers will be hired for handling 30-animals.

Machinery & equipment:

Water pumps
Milk utensils.
Fodder Chopper
Freezers
Tanks

Feed for Animals

It includes dry matter and concentrate to increase animal productivity.
Dry Roughage

Green Roughage
Summer Fodder

Winter Fodder

Wheat Straw

Maize

Berseem

Rice Straw

Sorghum

Alfalfa (Lucerne)

Oat Straw

Millet

Oats

Maize/Sorghum

Stubble Mott

Grass Rye Grass

Sugarcane Baggasse

Sadabahar

Sugarcane tops

Cotton Seed Hulls

Guar

Daily Feed Requirements of Cow

Fodder

Daily Requirement (kg)

Cost/kg

Amount (Rs)

Dry

9.38

3.00

28.14

Concentrate

4.62

15.55

71.86

Total

100

TOTAL INFRASTRUCTRUE COST

Description

Sq ft

Rate/Sq ft

Total Cost

Shed for Cows

2,300

450

1,035,000

Open Paddock for Cows

2,300

50

115,000

Shed for Calves

816

450

360,000

Open Paddock for Calves

816

50

40,800

Stores for fodder & machine room

300

450

135,000

Utensils & milk storage

300

450

135,000

Servant Room, Wash room

300

650

195,000

Silage Bunker

2500

150

375,000

Total Infrastructure Cost

9,632

2,390,800

PROJECTED START UP WORKING CAPITAL/month

Description -

Unit & Specification

Man Power

10,000*3 = 30,000

Total Cost
50,000

20,000*1 = 20,000
Driver

10,000*1 = 10,000

10,000

Doctor + Medicine

10,000 + 10,000

20,000

Fodder + All required

Rs.100 * 30 Cows /day

90,000

Green fodder

Farming in own land

10,000

Diesel/Petrol

Transport + Generator

50,000

Electric + Phone bills

15,000 + 10,000

25,000

Stationary

Insurance

12,500 * 30 = 3,75,000

Total Working Capital

1,000
3,75,000

6,31,000

PROPOSED PROJECT COST

Description

Unit & Specification

Total Cost

Land & Land Development Cost

8,00,000 + 2,00,000

10,00,000

Infrastructure Cost / Civil Works

Animals Cost

2,390,800
2,50,000 * 30 = 7,500,000

7,500,000

Cost of transporting of Cows

From purchased town

1,50,000

Pick up Van

6,50,000 * 1 = 6,50,000

6,50,000

Chaff Cutter

20,000 * 1 = 20,000

20,000

1,50,500 * 1 = 1,50,500

1,50,500

20,000

Generator (Honda 3 KVA)

Electric Connection ( 3 KVA)

Pump set (including pipe)

Plant + Farming

2,00,000

PROPOSED PROJECT COST

Description

Unit & Specification

Furniture
Tube lights + Fans + wiring
Deep freezers
Coolers
Cans

Office Equipment
Contingencies

Total Cost

20,000
20 + 15 + as per required

25,000

25,000 * 2 = 50,000

50,000

2,500 * 3 = 7,500

7,500

40 ltr * 4 * 8,500 = 34,000

20 ltr * 5 * 4200 = 21,000
10 ltr * 5 * 2200 = 11,000

66,000

PC * 15,000 * 1 = 15,000

15,000

(3.5 of Project Cost)

4,22,268

Initial Working Capital

6,31,000

Total Project Cost

13,318,068

FARM OUTPUTS
Lactation Period
o The lactation period is the period during which the animals
yield milk. Generally the lactation period of cows is from 280
days to 300 days.
o The average milk yield of Cow is estimated at 5,600 to 6,000
liters per lactation.

Male Calves
o 3 months old male calves will be sold at the farm sooner after
birth for Rs.10,000 - 15,000 per animal.
Milk
o The milk will be sold to Gawalas, milk processing companies,
house holds & milk shops @ price range Rs.70/liter.
o Milk can be stored in a milk chiller / freezer, if milk collection is
not possible in the evening.

SALES FORECAST
Income From Milk
Milk per day

30 Cows * 20.00 liters = 600 liters

Rate of Milk

Rs.70 per liter

Daily Income from Milk

600 liters * Rs.70 = Rs.42,000

300 Days Income from Milk

300 days * Rs.42,000 = 12,600,000

FINANCIAL PROJECTIONS
o We have invested 9.0 million rupees for our proposed dairy farm.
The details are as;

1) 70% of the money is invested equally by three friends.

2) Other 30% of the require money will be borrowed from the bank.
o We will achieve breakeven at the start of second year.

o The second year will increase the profits and at the end of second
year, we will get back the money borrowed from the bank.

o Now we can say that the dairy farm products are essential in the
human life and the demand for milk can never be ended also in
future the demand of milk will be increase.
o In our business plan we are to produce the qualitative milk for the
general public and sell to local market and also to sole customer.

o Our proposed business has not a large scale so it will never

capture the whole market because day by day the number of
competitors can be increase in the market and they can offer
various kind of products with services.
o Finally we can say our business plan is good for small and local
market and our first motive is to capture the local customer.