Dairy Club - News & Events
 

Minutes of the 21st Meeting of Dairy Club (Joint Venture between Alltech and UVAS)
 

The 21st Meeting of Dairy Club (Joint Venture of Alltech and UVAS) was held on Monday March 11, 2013 at Syndicate Room UVAS.

Following was the agenda of meeting:

Title

Speaker/Presenter

Dairy Business in Pakistan

Mr. Ajaz Rahim
Executive Director at B.T. Farms & Organique Whole Foods

About 25 participants attended this meeting.

Dr. Muhammad Zafar Ullah Khan opened the house and gave warm welcome to the participants. He explained the agenda.

Mr. Ajaz Rahim presented his lecture in which he shared his own experience of dairy farming. Currently he is running a breeding farm. Bullet points of his presentation are as follows:

Chart of Accounts

Daily Milk Yield  

20 Liters

Price of Milk

Rs. 45/-

Total Milk Sale          

Rs. 900/-

Feed Cost      

Rs. 450/-

Management

 

Medical          

Insemination             

Rs. 115/-

Insurance      

Rs. 35/-

Remaining Profit per day     

Rs. 300/

Cost of Management

Electricity

Rs. 70,000/-

Medicine 

Rs. 30,000/-

Insemination

Rs. 60,000/-

Repair & Maintenance  

Rs. 20,000/-

Salary structure:

 

8 workers

Rs. 80,000/-

2 Security Guards

Rs. 20,000/-

1 DVM

Rs. 30,000/-

Accountant          

Rs. 25,000/-

Total Salaries

Rs. 155,000/-

Total Expenses    

Rs. 335,000/-

Profit and Loss

300 days x Rs. 300

Rs.90,000/-

60 days x Rs. 600

Rs.36,000/-

Profit

Rs. 54,000/-

Calf Feed 60 x Rs. 130

Rs. 7,800/-

Profit

Rs. 46,200/-

First Insemination 30 x 600

Rs. 18,000/-

Profit

Rs. 28,200/-

Second Insemination30x600

Rs. 18,000/-

Remaining Profit

Rs. 10,200/-

Depreciation Rs.300,000  / 5

Rs. 60,000/-

 

(Income from farm produced heifers not included here)

Key Points

  1. Biggest business risk is REPRODUCTION
  2. Don’t rely on AI, it should be a bonus
  3. Priority in feed & management should be to aid effective reproduction
  4. No amount of incremental milk yield is worth compromising on reproduction cycle
  5. Don’t fall in love with your cows, cull them efficiently
  6. Fix your farm size and sell animals consistently to be known as a breeding farm

 

Note: PowerPoint presentation of the lecture is available on Dairy Club website. (http://uvas.edu.pk/society-club/dairy_club/useful-links.htm).

Questions/Answers:

Q. Why most of new comers in dairy business come up with feasibilities beyond ground facts?

Ajaz Rahim: Claims laid by semen selling companies in specific and rest of the so called consultants in general gave misleading figures. People form business other than dairy and agriculture should be very careful and vigilant.

Dr. Japie: Farmers commonly focus on milk record and sometime health record. Less attention is paid to maintain a reproduction/breeding record. Dairy farming is not a business of months or few years. Minimum it requires 4 years to make the farm sustained. To establish a dairy farm completely with expected outcome, it may take 10 years. 

Major Yousaf: Dairy is based on good breed, good animal husbandry practices and breeding. He also discussed:

  • Different sectors of dairy farming
  • Milk sale and price
  • Feed issues
  • Mycotoxin problem

Q. What was the breeding approach at your farm?

Ajaz Rahim: During first lactation we have been focusing to get our cows pregnant with sexed semen which become a problem for us in the farm of poor pregnancy ration.

At the end Dr. Muhammad Zafar Ullah Khan wrapped up the discussion with following conclusion:

  • While starting dairy farm, first have solid homework on the basis of facts and figures without relying on claims
  • Select right person for right job
  • Empowerment of the managers
  • Personal involvement
  • Efficiency of the systems
  • Mark the goal posts
  • Have plan I and II for selling milk and culled animals
  • Don’t compromise on SOPs.