EXECUTIVE
SUMMARY
The
business is proposed to be located in rural areas of Sindh, Punjab, KPK and
Balochistan where water is available in abundant quantity. Product(s) include
Dry Fodder, and Green Fodder. The proposed business will produce 135 Tons of
Dry fodder / 20 Acre and 50 Tons of Green Fodder / 20 Acre. There will be 6
crops per year therefore total produce for 20 Acres will be 810 Tons / annum
and 300 Tons / annum for Dry and Green fodder respectively. The total cost
estimate of business is Rs. 2.04 million.
BRIEF
DESCRIPTION OF PROJECT
Animals
consume green fodder in high quantity as compared to ‘Alfalfa’ (Dry Fodder) due
to high water content present in green fodder. However, dry fodder is found to
be more economical as compared to green fodder as it gives the same nutrition
to the animal in lower quantities. Furthermore, dry fodder is considered beneficial
for milking animals as it increases fat droplets content in milk. The requirement for dry fodder is consistent
across Pakistan all round the year and can also be exported to international
markets. The proposed project is based on cultivation of Alfalfa crop,
employing best agriculture practices and marketing the produce though trading
office. Some of the key elements of the project are as follows.
•
Technology: The proposed fodder production unit will use new cutting machines
and used bailer machines for cutting and bailing of forage.
•
Location: Fodder can be cultivated in any rural area where water is easily
available and land is suitable for optimum fodder yield.
•
Product: The proposed project will produce Green Fodder and Dry Fodder
•
Target Market: In addition to local markets of urban and mostly rural areas,
there is a huge potential of exports in dry and bailed form.
•
Employment Generation: The proposed project will provide direct employment to
06 people. Financial analysis shows the unit shall be profitable from the very
first year of operation.
CRITICAL
FACTORS
The
most critical considerations or factors for success of the project are:
•
Selection of agriculture land
•
Contract management
•
Availability of water
•
Applying the correct balance of nutrients
•
Applying fertilizer at the right time
INSTALLED
AND OPERATIONAL CAPACITIES
Production
capacity of the proposed fodder production and trading unit would be around 25
to 30 tons/acres per annum on contract farming basis. It has been assumed that
contract farming would be done on 20 acres of land, where 90% of fodder will be
sold as dry fodder and 10% of total production will be sold as green fodder. As
moisture content is up to 70%, therefore, production of dry fodder is calculated
at 135 Tons / Cut / 20 acres (30% of green) and Green Fodder of 50 Tons / Cut /
20 acres. There will be 6 cut per acre / annum for fodder, therefore total
produce for 20 Acres will be 810 Tons / annum and 300 Tons / annum for Dry and
Green fodder respectively.
GEOGRAPHICAL
POTENTIAL FOR INVESTMENT
Pakistan
is primarily an agricultural country and majority of its population is directly
involved in agriculture business. Therefore, the proposed project can be
located in rural areas of Sindh, Punjab, KPK and Balochistan where water is
available in abundant quantity.
POTENTIAL
TARGET MARKET
Growth
in livestock sector has lead to increased demand for dry and green fodder.
Therefore, most of the sales take place directly from the farm. However, there
are several other sale points available such as regular and temporary mandis
(markets), farm houses and down-town areas or suburbs where people raise
cattle.
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