Farmville Pvt Ltd

8/2/2019 Farmville Pvt Ltd

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FARMVILLE (PVT.) LTD.

Agro based ProjectFARM, LIVE STOCK & DAIRY PROJECT


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TTAABBLLEEOOFFCCOONNTTEENNTTSS

IINNTTRROODDUUCCTTIIOONN ..........................................................................................................................................................................EXECUTIVE SUMMARY................................................................................................................PROJECT OVERVIEW .................................................................................................................PURPOSE OF THE PROJECT........................................................................................................

CCRRUUCCIIAALL FFAACCTTOORRSS&& SSTTEEPPSS II NN DDEECCIISSIIOONN MMAAKKIINNGG FFOORR IINNVVEESSTTMMEENNTT...............................................................................................................................................

SWOT ANALYSIS ........................................................................................................................

MMAARRKKEETTPPOOTTEENNTTIIAALL ..........................................................................................................................................................

RICE.........................................................................................................................................WHEAT .....................................................................................................................................MEAT .......................................................................................................................................MILK.........................................................................................................................................

MMAARRKKEETTIINNFFOORRMMAATTIIOONN ..............................................................................................................................................

RICE.........................................................................................................................................WHEAT .....................................................................................................................................MEAT .......................................................................................................................................MILK.........................................................................................................................................

SSEECCTTOORRAANNAALLYYSSIISS................................................................................................................................................................

AGRICULTURAL .........................................................................................................................

LIVESTOCK ..............................................................................................................................TARGET CUSTOMERS (MILK, MEAT) .............................................................................................SUPPLY AND DEMAND GAPS OF LIVESTOCK PRODUCTS IN PAKISTAN .............................................PRODUCTION & CONSUMPTION OF RICE & WHEAT........................................................................

PPRROOJJEECCTTAAPPPPRROOAACCHH ......................................................................................................................................................

PHASE I:SELECTION OF LAND....................................................................................................PHASE II: CONSTRUCTION OF PROJECT ......................................................................................PHASE III:PURCHASING EQUIPMENT ...........................................................................................PHASE IV: HUMAN RESOURCING ................................................................................................PHASE V:PURCHASING OF CATTLE .............................................................................................PHASE VI: IMPLEMENTATION OF THE PROJECT ............................................................................

PPRROOJJEECCTTBBUUDDGGEETT ................................................................................................................................................................

PROJECT GOALS AND OBJECTIVES .............................................................................................PROJECT SCOPE ......................................................................................................................PROJECT CONSTRAINTS............................................................................................................

RREECCOOMMMMEENNDDAATTIIOONNSS........................................................................................................................................................

AATTTTAACCHHMMEENNTTSS............................................................................................................................................................................


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Executive Summary

FARMVILLE (PVT) LTD

PPRROOJJEECCTTDDEEVVEELLOOPPMMEENNTTPPLLAANN

((CCAASSHHCCRROOPP,,LLIIVVEESSTTOOCCKK&&DDAAIIRRYYFFAARRMMIINNGG))

This report responds to the request of the professor Khalid Jamil Ansari for

development of the Project.

This is a new project and it is basically related to the agriculture sector of the Pakistan.

Live stock and dairy farms are also included in this project. This project is worth while

indeed because Pakistan is an agriculture and industrial country and it has got thepotential to cater the needs of consumers. It is a good opportunity in the market to

develop this project.

Such scenarios may be working in the economy but these are running in the

unorganized way. This project will not only benefit the society but also beneficial for the

purpose of revenue generation.

PROJECT OVERVIEW

The Farmville Project is a portfolio extended at a total area of 100 acres. The area has

been split up in regions on the basis of different agricultural activities. The agricultural

activities carried out by Farmville are firstly, cultivation of two crops, one Kharif and the

other Rabi (on an area of 80acres).

Farmville chose Wheat as Rabi and Rice as the Kharif crop for one main reason i.e.

the husk and straw they both produce as a waste or byproduct. The remaining 20acres

include a farm area for livestock (female cows that 100 in number) that includes a cow

shed and a meadow or pasture for cattle grazing. The area allocated for this purpose is

6.5acres. The remaining area has been reserved for cold-storage, warehouses, guard

quarters, farmer quarters and for tractors and other farm machines. The field area also

consists of a lined perennial canal. An alternate water source would be lift irrigation

particularly tube wells.

The two crops are solely for commercial use and would be sold to the government to

help improve the shortage of these two very important food crops. This will surely

increase our GDP.

The straw and husk from the crops is used as fodder for the cattle.Personnel have been hired for the purpose of milking the cows that would be supplied

to Engro Foods Ltd for milk processing. This is where dairy farming is involved.


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Through artificial insemination, cows will be bred and the number of cows will go up by

hundred. The calves however would be supplied to slaughter houses to provide for

edible meat. The hides, blood and other wastes from slaughtering like intestines etc will

be sold to research industries or pharmaceutical companies for medicinal purposes.

The total budget for the project is Rs.134,319,500/-

This project is highly recommended for agro based economy for the efficient and

economic development of the country it has got societal and economic benefit for all in

terms of production, employment, and improving the balance of trade and economic

development.

The initial cost of the project is Rs. 149,026,000, including of an initial working

capital of Rs. 7,531,000.

Net profit / (loss) for year 1, year 2, year 3, year 4 and year 5 is Rs. 17,194,187,

Rs. 29,276,712, Rs. 44,026,046, Rs. 62,010,389 & Rs. 83,910,477, respectively. Payback period of the project is approximately 2.55 years.

Average Return on Investment is 33.02%.

The IRR of the project is 47.45%

INTRODUCTION OF THE PROJECT

Purpose of Plan

The project development plan includes the projects goals and objectives. Additionally,

this Plan will serve as an agreement between the following parties: Project Sponsor,

Steering Committee, Project Manager, Project Team, and other personnel associated

with and/or affected by the project.

Project Purpose

The objective of this pre-feasibility is to study the primary facilities for the entrepreneurs

to facilitate the investment and provide an overview about cash crop, dairy and

livestock farming. The project pre-feasibility is form for making the important investment

decision and in order to serve this objective; the document covers various aspects of

dairy and livestock farming.

The concept development, start-up, production, finances and business management is

included in this document besides it also provides sectorial information, brief on

government policies and international scenario, which have some bearing on the

project itself.


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This particular pre-feasibility is regarding Dairy Farm which comes under Agriculture

and Livestock sector. Before studying the whole document one must consider

following Critical aspects, which form the basis of any investment decision.

CCRRUUCCIIAALLFFAACCTTOORRSS&&SSTTEEPPSSIINNDDEECCIISSIIOONNMMAAKKIINNGGFFOORRIINNVVEESSTTMMEENNTT

Dairy production is an all-inclusive activity related to animal care, reproduction, feeding,

and management. It is defined as all those aspects and activities relating to the raising

of dairy animals during their various phases of life to get wholesome milk. Before

making the decision as whether to invest in the dairy and livestock farming or not, one

should carefully analyze the associated risk factors. A SWOT analysis can help in

analyzing these factors, which can play important role in making the decision.

SSTTRREENNGGTTHHSS

Back bone and main stay of economy.

Provides raw material for food & Leather Industry.

Major source of food, i.e. Milk & Meat

Source of Farmyard Manure (FYM).

Sizeable foreign exchanges earning through exports.

Wide scope of Milk Production, ranking 5th in the world.

Ample human resource employment sector.

Stationed, permanently located secured loaning sector.

Huge demand and supply gap in dairy sector

WWEEAAKKNNEESSSSEESS

Lack of appropriate knowledge, research extensions.

Lack of commercially viable breeds of animal.

Lack of education and initiative in farmer, traditional approach due to lack of

skills and management.

Unorganized sector, unaware of basic farm management practices.

Remote area, lack of farm to market approach & transportation.

Non-availability of communication services. Lack of farm/ market infra structures & marketing information.

Lack of record keeping on farm.

No or low application of research work and pedigree record keeping.

Management of dairy farm is a challenging job.

Enormous production losses due to endemic diseases every year.

Nutrition is still a problem hampering the livestock productivity in general and

milk.


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OOPPPPOORRTTUUNNIITTIIEESS

Govt. of Pakistan & Sate Bank of Pakistan priority sector.

Dairy products needs are 30% higher than supply.

Ample opportunities are available in the agriculture Sector.

Commercially viable sector with great credit potential and absorption capacity. Vast range of area of operation, more needs and scope of development.

Value added dairy products are in demand.

Massive migration of labor to cities can be checked / stopped.

Corporate financing will become a niche in lending market.

Cooperatives can play a big role for development in dairy sector like India,

Australia and United States.

TTHHRREEAATTSS

Implementation of WTO will result in open & competitive commodity pricing.

Due to fear of default, banker community has reluctance for lending loans.

High risks of diseases in live stock.

Defective and unorganized markets.

Imbalance between prices of inputs & outputs.

Rising trend of cost of production with higher rate of interest as compared to

profit ratio.

Lack of media projection, non-recognition of problems and monopoly of

multinationals.

Lack of community organizations and out dated farm practices.

Lack of coordination towards common causes & goals.

Lack of awareness about economics, demand & supply in market.

Low saving, low holding capacity. Increasing level of poverty.

Non-availability of subsidy, tax holidays.

Market Potential:

Rice:

Rice is the grain with the second highest worldwide production, after maize ("corn"). In

Pakistan its the 3rd largest crop in term of area after wheat and cotton.

Basmati is a premium long grain variety of rice, highly valued for its aroma and flavor

and exclusively grown in certain parts of the Punjab. The adulteration of basmati rice

with other cheaper varieties has become an area for potential exploitation. There is a

need to develop a method that enables the differentiation of basmati varieties from

other long-grain rice in order to ensure consumer protection and for use in regulation of

rice trade.


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The demand of parboiled rice is increasing day by day because Parboiled rice is rice

that has been boiled in the husk. Parboiling makes rice easier to process by hand,

improves its nutritional profile, and changes its texture.

The par-boiled variety of rice is the fastest growing rice product in the global market. It

is preferred in Africa, Europe and the US due to its longer shelf life and ease ofcooking. Pakistan is lagging on the exports of par-boiled rice due to the lack of

processing facilities. Meanwhile India has been successful in exporting both par-boiled

rice and has developed expertise in the manufacturing of parboiling plants as well.

Trading in rice both in domestic and international markets has become more quality

conscious. Even in the local markets buyers now demand quality rice. In order to meet

the challenges under the WTO regime, it is now very essential for the country to put

together its rice production and marketing strategies to match the demand of

international markets.

Wheat:

Pakistans average wheat production is 17,628 TMT, making them the ninth largest

wheat-producing nation in the world. Pakistan is also a major consumer of wheat. Their

average domestic consumption is 19,951 TMT. Pakistan also has an import average of

2,351 TMT of wheat, while they export, on average, 74 TMT.

Most of the winter wheat grown in Pakistan is grown in the eastern region of the nation,adjacent to the India border. The province of Punjab grows the majority of Pakistani

wheat, producing 72 percent of the nations total supply. The next largest wheat-

producing province is Sind, which produces 17 percent of the total wheat supply.

Winter wheat planting begins around the first of October and run through mid-

December. Harvest begins in April and is usually completed by midJune.

.

Milk:

Pakistan is the 5th largest producer of milk in the world. However only 3.0 % is beingprocessed. The major obstacle in this regard is collection of good quality milk.

Establishment of milk collection centers in the milk pockets with chillers offers a good

investment as the quality and quantity of milk procured will be improved. Dairy industry

in Pakistan is mainly dependent on production of UHT milk. While market for UHT milk

is expected to expand, there is need to diversify the products. Diversified dairy products

may include pasteurized milk, flavored milk, milk with various fat levels, condensed

milk, milk powder and various flavored and fat percentage yogurts.

Pakistan faces a shortage of milk primarily because not all of its production actuallymakes it to the market. It is estimated that only 45% of the milk produced is actually

available for sale. Of the milk that is sold by farmers, an additional 15-19% is wasted


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reroute-to-market due to spoilage from lack of proper cooling, storage and transport

systems. In total, 55-60% of current milk production is lost from potential income

generation and value addition.

Meat:

In Pakistan, the beef industry is an important segment of livestock production. The

increasing population and the rising consumer buying power have together contributed

to an increase in demand resulting in relatively favorable prices for beef. Worldwide

consumption of meat during 1983 for developed world was 74 kg compared to 14 kg for

developing countries and 11 kg for Pakistan. The data for 1993 indicates 76kg, 21 kg

and 16kg for the three, respectively. The challenge for Pakistan now is to achieve 47 kg

per capita consumption by 2020. According to statistics there is a gap in demand and

supply of beef in the market. This gap is met through meatless days and through

poultry meat.

Market Information:

Rice:

Rice is the most widely consumed staple food at the global level and is an excellent

source of compound carbohydrates. Pakistan is the 11th largest producer and 4th

largest rice exporter. Pakistan produces 6.22 million tons of rice over an area of around5 million acres. Rice exports remained the second largest foreign exchange earner for

the country after cotton. Sind province produces about 1.461 million tons From an area

of 0.544 million hectors with an average yield of 2.686 tones rice per hector. The main

varieties of rice grown in sindh are Basmati, Irri 6 and Irri 9. The fine type variety has

different names in sindh such as Rossi, GM Basmati, Kernel, Supper, Dubai or

Basmati-2000. D-98 Basmati Rice from Sind is also known to the world as Sindhi

Basmati. Major Rice growing areas in Sind are Larkana, Shikarpur, Dadu, Qambar

Shahdadkot, Badin, Thatta and Jacobabad.

The recent exports of rice from Pakistan are almost US $2.0 billion dollars which is

around 10% of total exports of Pakistan. The domestic demand of rice in Pakistan is

2.2 million tones which makes 4 million tons of rice available for exports. Africa is the

major rice importer of the world with a total import of 1.4 million tones per annum. Irri6

rice of Sind widely been exported to African countries. Pakistan exports 80 per cent

Super Basmati rice to European Union. The average price of Irri6 is Rs. 32,000 per ton

in Pakistan and export price is US$625 per metric ton. The export price of Parboiled

rice is US $1,150 per metric ton.


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Wheat:

Wheat production in upcoming year is an opportunity for government to recover its

losses, occurred due to damaged of crops in Kharif season. By increasing acreage for

wheat production in the crop growing areas of Sind and Punjab Pakistan can be able to

produce wheat more than the target.

Higher wheat production would not only allow fulfillment of domestic requirements but

would allow Pakistan to export more and earn higher foreign exchange. Pakistans

wheat production is expected to grow by 3.24 percent during the fiscal year 2011-12

(FY11-12).

Milk:

The annual milk production of 33.6 billion liters in Pakistan is shared between a 71.1%

share for the rural economy and a much smaller urban share of 29%. Only 3% of the

total production of milk is processed and marketed through formal channels. For the

other 97%, a multi-layered distribution system of middlemen has evolved to supply

milk. The contribution of the formal sector processed milk to real GDP in Pakistan is

0.43% in 2004-05. Despite only a small percentage (3%) of milk being processed, the

(UHT) market is growing at a steady rate of 20% a year. Presently 97% of raw milk

produced in the rural economy is not linked to the market mechanism because of a

number of reasons (defined ahead in this paper). Due to this reason, the dairy sector in

the rural economy is not making a significant impact in the National economy in

accordance with its potential and also with the quantity of milk, which is available.

Meat:

Currently, meat sector in Pakistan is working on an informal basis from animal raising

to meat selling. Animal traders purchase animals from the rural areas and sell them to

the animal markets in the urban areas. Butchers purchase these animals from animal

markets and slaughter them in the slaughterhouses. Butchers act as meat traders and

dominate the meat market both in rural and urban areas. The animals sold in thesemarkets are generally diseased and culled animals. Butchers/traders prefer to buy

these cheap animals.

Pakistan has ten semi-automated slaughterhouses and a meat processing plant. The

only meat processing plant was installed in 1995. It has a capacity of 50,000 Kg. per

month, but is operating below its capacity. It processes both chicken and beef into a

variety of processed products such as sausages and smoked meats. The current red

meat production system is both traditional and inefficient. Beef mostly comes from the

end of career, or emergency slaughtered animals. A lot of baby buffaloes and calves

are slaughtered when these are only 1-2 weeks old. Few calves are raised to 60-80kgbut on extremely poor and unbalanced diets. Lack of commercial, on-farm livestock

feeding could be blamed for existing price ceiling, which is fixed too low to recover the


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production cost. Traditional and unhygienic slaughtering techniques are major

constraints, which are not acceptable to those who believe in health and hygiene. The

livestock resources hold potential for increasing the production of meat. It is estimated

that about 6-7 million buffalo/cattle male calves if raised on balanced diet could double

the production. Sheep and goats can also be raised for quality meat production.

The meat industry as a whole, from livestock farming to marketing of meat is in a poor

state at the moment. General crop farming has progressed from the 'subsistence level

farming' to 'commercial farming', at least in major crops in the country because of

research, extension focus and 'market pull factors'. Whereas the livestock farming has

remained least commercialized and survives under subsistence farming conditions.

Beef yield has remained low due to the following constraints:

Despite immense potential, breeding has not been done for increasing

productivity. Feeding methods are primitive with hardly any feed management. Despite

abundant

fodder production, there is always a shortage between seasons. This shortage is

met by "bhoosa" (wheat straw) this has very low nutritional value.

Quality feed concentrates from existing by-products is not being used efficiently.

Sector Characteristics:

AGRICULTURE:

Government of Pakistan has identified agriculture as one of the priority sector productive

for domestic and foreign investment. Recent developments include the import of

agricultural machinery at concessional customs duty for non-corporate agriculture.

Pakistan faces major difficulties with crop yields and over use of pesticides when

compared to other agricultural centers in the region. This is compounded by dated

infrastructure and farming techniques that have not changed for decades and a lack of

adequate irrigation and cold storage facilities.

LIVESTOCK:

Meat is the second largest commodity, after milk, in Pakistans agriculture sector. Livestock

contributes 31 percent of the agricultural value added produce. The size of the meat market

in Pakistan at present is 2,185,000 metric tons. Meat demand is growing at almost 6% per

annum while supply is growing at 1.8%. Hence there is a wide gap of 4.7% and this gap is

likely to grow in the prevailing circumstances. The growing world meat market is presently

valued at US$81 billion per annum. Pakistan remains miles away from this market primarily

because of weaknesses in the supply chain management. The first step towards accessing

the international market would be to introduce health and hygiene protocols in the domestic

meat market. Unless the domestic market of meat is better developed it is not possible toexploit the export potential. At present meat production and distribution is almost totally in

the informal sector.


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Target Customers:

LIVE STOCK (BRIEF)

Livestock plays an important role in the economy of our country. It provides job

opportunities to majority of the rural population from which they earn their livelihood andcontributes 9% share to the GDP and 37% to the Agriculture sector.

Beside this, it provides milk and meat for daily consumption to the over increasing human

population, draught power for cropping and rural transport, field-yard-manure for soil

fertilization, raw materials for industrial products and hides, skins and wool for earning of

foreign exchange. It is also responsible for supplying 16% of the total household energy on

the form of dung.

Another important benefit of livestock is the best utilization of the passive woman labor

force which makes more than 50% of national population. Our rural women are mainly

involved in Animal Poultry Husbandry practices such as feeding /grazing housing and

milking of animals. This activity is the major source of cash income for rural woman to meet

their daily needs.

Role of Livestock in the National Economy:

Livestock sector contributes 49.1% to Agriculture sector and about 11.4% to GDP.

Provides more milk and meat for daily consumption to the over-increasing human

population

Convert crop residues, and agro-industrial wastes and by-products into valuable

edible products.

Provides industrial raw materials e.g. wool, hides & skins and sources for agro-

based food industry.

It is also responsible for supplying 16% of the total household energy in the form of

dung.

Provides draught power for cropping and rural transport.

Provides field yard manure for soil fertilization.

30-35 million rural populations is engaged in livestock raising, having household

holdings of 2-3 cattle/ buffalo and 5-6 sheep/ goat per family which help them to

drive 30-40% of their income from livestock.

TARGET CUSTOMERS (MILK)

It is suggested that milk will be sold on farm door through contractors, gawalas or people

around the area or may be pasteurized at farm by the farmer and then delivered to the

nearby city. Following are some of the target clients for a dairy farmer.

1. Local people

2. Gawalas

3. Milk collection companies

4. Contractors


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TARGET CUSTOMERS (MEAT)

1. Local people

2. Butchers

3. Contractors

4. Slaughter house owners

Supply Demand Gaps in Major Livestock Products of Pakistan

2020

SUPPLY DEMAND GAP

43.43 98.91 55.48

1.43 3.74 2.31

(Source: GOP 2003)

PRODUCTION & CONSUMPTION OF RICE & WHEAT

Project Approach

This section outlines the way we will roll out the technology, including the highest level

of milestones.

Phase I: Selection of land

Phase II: construction of the project

Phase III: Order/purchase Equipment

Phase IV: Human resourcingPhase V: purchasing of cattle

Phase VI: Implementation of the project plan

PRODUCTS 2003

SUPPLY DEMAND GAP

MILK 27.8 31.32 3.52

BEEF 0.70 0.80 0.10


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Elaborations

Phase 1:

SSEELLEECCTTIIOONN OOFF LLAANNDD::

Our project will firstly begin with the acquiring of 100 acres land in the Interior Sindh at

Gharo. A land with a lined perennial canal is required. The land will be acquired on the

partnership basis. An agreement will be signed for 10 years with the owner of the land

in which he will have 50% share in the profits and losses. After purchasing this land,

the next phase will begin.

Phase 2:

CCOONNSSTTRRUUCCTTIIOONN::

In this phase after acquiring land, its proper construction will be done in which

boundary walls and segments of the land will be created. Once the land is properly

segmented, its crop field will be fertilized by the help of urea initially. The land will be

segmented in the following measurements,

Cropping Area 40 acres

Wheat .20acres

Rice.........20acres

Field Area6.5acres

Corn3.5acres

Grass..........03acres

Milk Processing Area1.5acres

Cold Storage House.0.25acres

Cattle Shed Area...02acres

Slaughter House...0.5acres

Crop Processing, Packaging, delivery and additional area for future expansions

will be. 7.75acres

Crop Processing..04acres

Future Expansion..3.75acres

Servant Quarters Area01acres

Equipment Area..0.25acres

Crop Warehouse 05 acres

Road Structure.05 acres Guard Check post 0.25acres


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Phase 3:

IINNSSTTAALLLLAATTIIOONN EEQQUUIIPPMMEENNTTSS::

Cold Storage chiller unit

Milking unit

Wheat processing unit

Rice Processing Unit

Phase 4:

HHUUMMAANNRREESSOOUURRCCIINNGG::

After successful installation of the plants and equipments, hiring will begin for all levels

of hierarchy including the President to lower levels of management.

President

C.E.O

Main supervisors

Crop Department Supervisor

Supervisor 04

Farmers 20

Milk processing Supervisor

Supervisor 01

Milk men 04

Helpers 03

Meat processing Supervisor

Butchers 04

Helpers 08

Farm supervisor

Supervisor 04

Farmers 20

Transportation Supervisor

Drivers 09

Mechanics 02

Cold Storage Labor

Technical Staff 03

Phase 5:

PPUURRCCHHAASSEE OOFFCCAATTTTLLEE::

Milk cows will be purchased from Interior Sind.

A hundred such cows will be preferred that are healthy enough and physically free from

any disease.

Each cow will approximately give 20 liters milk per day.


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Therefore by 100 cows the milk production is estimated to be 2000 liters per day. Their

food consumption will be catered by 50% of the Straws of wheat and rice and 50% will

be from the pastures for grazing. The pastures, that are part of the total 100acres, are

grown solely for the purpose of cattle grazing therefore the cost will be cut down by

using the farms own fodder.

Phase 6:

IIMMPPLLEEMMEENNTTAATTIIOONN OOFF TTHHEEPPRROOJJEECCTTPPLLAANN::

The project will be properly implemented by January 1, 2013. Project will be initiated

on July 1, 2012 as far as its construction is concerned.

CCRROOPPPPIINNGG

Rice will be sowed in the month of April and harvested in the month of September

ending. Irri 6 will be produced as the HYV (High Yielding Variety Seeds).

GEOGRAPHICAL REQUIREMENTS for the cultivation of Rice are as follows.

Temperature

o Mean temperature of 20C to 30C with no cold season.

o A warm dry period for harvesting

Rainfall

o Heavy rainfall of at least 1270mm but over 2000mm is ideal

o Irrigation bridges the rainfall gap

o Requires plenty of rain during the 4-6 months growing period and a sunny

harvesting time

Land and Soil

o Level ground because flat fields can be more easily irrigated

o Soil should be loamy or clayeyo An impervious sub-soil is essential because it is retentive of water

Human Inputs

o Requires cheap and abundant labour or adequate machinery for field

preparation, sowing, transplanting and harvesting

o Irrigation

Wheat will be sowed in the month of November and will be harvested in the month ofMarch. Maxi Pak is used as the HYV.


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GEOGRAPHICAL REQUIREMENTS for the cultivation of Wheat are as follows.

Temperature

o Mild temperature between 10C - 20C at the time of growing and warm

temperature of 25C - 30C for ripening

o Needs at least 90days and preferably for better varieties 120 days with

mild, moist weather

Rainfall

o Moderate rainfall. A little rain just before the harvest swells the grain and

ensures a better yield.

o Mostly depends on irrigation.

Only Potwar Plateau and some parts of Khyber Pakhtoonkhwa are rain

fed regions.

Land and Soil

o Moderately stiff loamy or clayey soil but does not thrive if there is

stagnant water.

o Flat or undulating land to facilitate the use of machinery

o Land must be well drained.

PROJECT BUDGET:

S.NO. Particulars

TOTALAREA INACRES

CONSTRUTIONAREA IN

SQFT&METER UNIT Rate Amount

1 Land cost 100 -- 350,000 3,500,000

2 Maturity breeding cow -- 100cows 65,000 6,500,000

3

Cattle shed area(Construction) 2 7000sqft 500 3,500,000

4 Main steel gate --01 gate(20x10) -- 80,000

5

Sub bamboos gate(internal)

10bamboos 5,000 50,000

6 Fencing of boundaries 40Acres 2875 meter(perimeters) 600 1,725,000

7 land leveling 100Acres 10,000 1,000,000


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9 Graded road access14000meters 200 280,000

10

Equipment warehousecost (Construction) 0.25 10890 500 5,445,000

11 Crop-ware house 0.9 39204 500 19,602,000

12Guard quarters(Construction) 0.3 435 500 217,500

13

Cold storage house(Construction) 0.25 10890 600 6,534,000

14 Generator(36KVA) -- 1 Unit -- 500,000

15

Slaughter house(Construction) 1.05 5082 550 2,795,000

16

Milk collecting area

(Construction) 1.05 5082 550 2,795,000

17

Milk collectingcontainers 100 3,000 300,000

18

Crop packaging anddelivery area(Construction) 4 174240 400 69,696,000

19

Staff and Topmanagementaccomodation & officearea (Construction) 1 4500 800 3,600,000

20 Tractors 4 800,000 3,200,000

21 Harvesting machine 2 200,000 400,000

22 Miscellaneous toolsLumpSum 200,000

23 Tractor Trolly (loader) 2 200,000 400,000

24 Water Tanker Trolly 1 350,000 350,000

25 Motor Cycle 4 50,000 200,000

26 Furniture and fixtureLumpSum 500,000

27 Working CapitalLumpSum 900,000

28Hydraulic press 1 50,000 50,000

Total 134,319,500


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GOALS AND OBJECTIVES

Business Goals and Objectives

The business goals and objectives for this project will focus on:

Revenue generation.

Facilitates Agriculture sector of Pakistan.

Enhances the ability and effectiveness of utilization of the Economic Resources.

Provides high level of output for gaining foreign Exchange.

Provides open, flexible, reliable goods.

Facilitates to increase the employment level and reducing poverty.

SCOPE

Scope Definition

The Project is for long period of time and in future it is expected to be expanded as long

as possible. In future the following expansions are probable:

Rice polishing plant.

Flour mill


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CONSTRAINTS

Project Constraints

The following points are here as project constraints:

Project funding sources are limited, with no contingency.

Due to the nature of law enforcement, resource availability is inconsistent.

Critical Project Barriers

Unlike risks, critical project barriers are insurmountable issues that can be destructive

to a projects initiative. In this project, the following are possible critical barriers:

Removal of project funding.

Natural disasters/calamity.

Due to fear of default, banker community has reluctance in lending loans.

High risks of diseases in live stock

High risks of pests, insects and plant diseases

Defective and unorganized markets

Imbalance between prices of inputs & outputs

Rising trend of cost of production with higher rate of interest as compared to profit ratio Terrorism

In case any of these events occur, the Project Plan would become invalid.


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Recommendations

This project is very progressive even in recession period, to support

the economic activities of the country.

Its aim is to generate revenue by the utmost utilization of the land

and other resources. This will reduce the poverty of the rural areas and it will serve in the

export promotions.

Many of the people will be employed on permanent basis by which

not only human capital will increase but also this major economic

issue will be addressed.

Investments will be favorable in terms of greater ROIs.

Proper organized live stock and agricultural farm will attract more

investments to expand it to the extreme level.

Conducive for production of the economic goods


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Documents

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