INVESTMENT OPPORTUNITIES

INVESTMENT OPPORTUNITIES

LIVESTOCK & FISHERIES DEPARTMENT

LIVESTOCK SECTOR

BHAMBHORE DAIRY VILLAGE & MEAT PROCESSING ZONE

• As part of the Government’s pro-investment strategy, Government of Sindh has conceived a mega project for Public Private Partnership in the Livestock Sector.

• The Project is the Establishment of a Dairy Village and Processing Zone for Meat Animals at Bhambhore in District Thatta, Sindh.

• The site is to be established over 1300 acres with a provision of 1200 acres reserved for expansion.

• The site will be divided into two distinct areas for dairy and meat

4

DAIRY POTENTIAL

• The Livestock & Agriculture Sector contributes over 10% to the GDP

• With estimated 33 billion liters of annual milk production from 50 million animals managed by over 8 million farming households, Pakistan is the 4th Largest milk producing country in the World.

• The Milk economy in terms of value is over 27% of the total agriculture sector

• Of the total production, 71% is rural based and 29% is urban based

. 5

DAIRY POTENTIAL

• Of the total production only 3% is processed and marketed through formal channels

• It is a partially tapped market with a potential of another additional 3 billion liters of milk , with a growth rate faster then any other sector

• Value additions like cheese, and yoghurt etc have again a huge potential

Potential of Meat , Meat Processing, Supply and Marketing

The meat demand for Pakistan Domestic market is growing at a rate of 2.73% for Beef, 2.90 % for mutton and 6.10 % for poultry.

This domestic demand is growing to meet the population growth, human need for protein and calcium, migration of population from rural to urban and the fluctuating growth due to per capita rise in income.

The projected supply demand gap for domestic consumption is:

Products 2003 2020

Supply Demand Gap Supply Demand Gap

Milk 27800 31320 3520 43430 98910 55480

Beef 1050 1210 160 1430 3740 2310

Mutton 700 800 100 1030 2500 1470

Potential for Meat Export

The World Wide Meat Consumption as of 2003 is:

Meat Type Production in Million tons

Beef 62

Mutton 12

Poultry 77

Pig 97

Total 247

Source: SMEDA

Historically there are four major meat producing countries - North America ( USSA & Canada) - South America ( Brazil, Argentina and Uruguay) - Oceanic Countries ( Australia and New Zealand) - Europe ( British Islands and Continental Europe)

There is a good potential and opportunity for Pakistan to break the potential meat markets in particular the “Halal “meat markets of Middle East

The Potential supply and demand gap for Middle East countries is :

Thousand Tons

Country Production Consumption Gap

Saudia Arabia 25,630 75,630 50,000

Egypt 440,000 533,000 93,000

Bahrain 1,440 4,600 3,220

Oman 4,148 18,000 13,852

UAE 9,500 43,185 33,658

Source: US Dept of Agriculture - 2004

Cont….

The Actual imports of Beef in Middle East Countries is:

(Metric Tons)

Country 2000 2001 2002 2003

Saudia Arabia 32,327 36,360 51,728 52,122

Egypt 195,841 130,692 140,240 113,915

UAE 50,722 31,103 37,263 30,765

Kuwait 57 19 71 144

All Others 68,930 70,571 65,246 93,595

Source: World Trade Atlas

Cont…..

Similarly there is potential in South East Asian Countries as well:

(Metric Tons)

Country 2000 2001 2002 2003

Malaysia 86,649 85,561 92,475 99,460

Philippines 87,579 82,291 82,200 83,341

Indonesia 38,383 20,151 25,477 30,605

Singapore 16,718 15,895 20,637 21,856

All Others 6,403 4,272 5,427 9,459

Total 235,732 208,170 226,216 244,721

Source: World Trade Atlas

With an animal population of over 50 million, Pakistan suffers from low productivity compared to global players.

Pakistan has three times the animals than Germany but yields one fifth of Germany's and one third of New Zealand, representing a significant loss in potential economic and social values.

Thus Pakistan has the capability to produce more milk, 50 billion liters by 2015, with better feed, technology and management practices.

Dairy Village provides such opportunity under one window where all the services and facilities are available for the Dairy Farmer.

SALIENT FEATURES

• 100 Plots of 5 Acres for Dairy Production

• 100 Plots of 3 Acres for Meat Production

• Milk Processing & Chilling Plants

• Value Addition Plants

• State of the art Abattoirs

• Meat Processing Plants

• Meat Chilling & Storage Plants

• Livestock & Fodder Markets

• Feed Mills

• Veterinary Clinics

3 Acre Meat Processing Plots

5 Acre Dairy Village Plots

Meat Processing

Milk Processing Plant

Services Area

Preferred Option

N



Meat Processing


Services Area

N

Preferred Option

Livestock & Fisheries Department Sindh



Meat Processing


Services Area

N

Preferred Option


PROJECT INCENTIVES• The Department of Livestock would build the

infrastructure such as: – Internal & External Roads– BounTdary Wall– Residential Colony– Sewage & Drainage Systems– Provision of Water & Energy

• The Department would provide Veterinary care & Artificial Insemination Facilities

• The Department would also manage the Project through a Project Director

PROJECT INCENTIVES

• Plots in the Project for setting up Dairy Farms; Meat Production Farms; Allied Industries; and Various Markets would be leased on highly competitive and attractive rates

• The Department of Livestock in collaboration with the Board of Investment would provide Loans through a revolving Fund set up for this purpose

WATER RESOURSE MANAGEMENT

Fresh Potable Under ground water is available in the scheme area at a depth of 30-90 m below the ground surface.

The under ground water is recharged with the annual rain fall in the area which is estimated at about 175 mm

Water would be accessed through tube wells that can be run either on wind or solar energy

ENERGY RESOURSE MANAGEMENT

ENERGY REQUIREMENTSELECTRICAL

Street Lighting 287.5 kWResidential 40.0 kWCommercial 150.0 kWSewerage Treatment Plant 200.0 kWTube well and Water Supply 400.0 kWOther infrastructure 97.6 kW

FarmsDairy: 100 farms of 5 Ac 1500.0 kWMeat: 100 farms of 3 Ac 900.0 kW

Post HarvestMilk Processing 450.0 kWMeat Processing 650.0 kWSlaughter House 500.0 kWChilling Plant 400.0 kWFeed Mill 250.0 kWDry Fertilizer Plant 150.0 kW

Total Connected Load 5975.1 kW

ENERGY PLAN• The facility would meet a significant portion of its energy

requirements from renewable sources such as Biogas, wind and Solar.

• The self sufficiency in energy is made possible by the abundance of raw material available for turning into biogas that would then be used to generate electricity.

• Similarly, the site lying in the wind corridor with an average wind speed of 7.5 meters/second could have a large installed wind mill farm.

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LOCAL ELECTRICAL GRID BASED ON Bio Gas, Solar and Wind Energy

National Grid WAPDA / KESC

National Grid WAPDA / KESC 11 KV Bus

Solar Power 2.6 MW / Day

Solar Power 2.6 MW / Day

Power Generation Area

Wind Turbine 1 MW / Day

Wind Turbine 1 MW / Day

Bio Gas Plant2.4 MW / Day

Bio Gas Plant2.4 MW / Day HT PanelHT Panel

HT PanelHT Panel

HT PanelHT Panel

Step-up Transformer

Step-up Transformer

Step-up Transformer

Step-up Transformer

Step-up Transformer

Step-up Transformer

LT PanelLT Panel

LT PanelLT Panel

LT PanelLT PanelinverterinverterBattery Bank

Battery Bank

Collector Cells

Collector Cells

Gas Generator

Gas Generator

Step-Down Transformer






11 KV

Line

11 KV

Line

11 KV

Line

11 KV

Line

11 KV

Line

11 KV

Line



11 KV

Line

11 KV

Line

3 PHASE 380 V

3 PHASE 380 V

3 PHASE 380 V

3 PHASE 380 V

Total Electric Load Provided:

Bio-Gas Plant 2500 KwSolar Energy 2600 KwWind Energy 1000 Kw

Total 6100 Kw

The TOTAL Energy Requirements will be through the Renewable energy resources with no contribution from the National Grid.

The Project has the potential to export excess power to the national grid as and when required.

PROJECT BENEFITS

COPMPARATIVE ANALYSIS

INDIVIDUAL FARMERS

1. Cost of Land @ Rs. 1.0 – 1.5 m/ac

2. No Infrastructure available

- Access Road

- Internal Roads

- Levelling of Land

- Boundary Wall

- Sewerage and Sewerage Disposal

- Hygienic Water Supply

3. Security not available, at Cost

BHAMBHORE FARMERS

1. Cost of Land Lease @ Rs. 0.1– 0.2 m/ac

2. Infrastructure available

- Access Road

- Internal Roads

- Levelling of Land

- Boundary Wall

- Sewerage and Sewerage ` Disposal

- Hygienic Water Supply

3. Security available, No Cost



INDIVIDUAL FARMERS

4. No Veterinary Care

5. No Markets available, at Cost

6. Post Harvest Facilities

- No Post Harvest Facilities, Cost

BHAMBHORE FARMERS

4. Veterinary Care with AI Lab

5. All Markets available, No cost

- Fodder & Feed

- Livestock

- Produce

- Commercial

- Restaurants & allied facilities

6. Post Harvest Facilities

- Milk Processing Plants

- Chilling Plants

- Meat Processing Plant

- Dry Fertilizer Plant



INDIVIDUAL FARMERS

7. Transportation Cost to and from Market, about Rs.100 per 40 kg

8. Power not available 24/7

9. Power available at High Commercial rate, between Rs. 20-25 per unit

10. Accessibility to domestic and International Market – Depending on location

11. Produce not to International Standards

BHAMBHORE FARMERS

7. No Transportation Cost, for to and from Market as post harvest facility available at site.

8. Power available 24/7

9. Power available through renewable sources at an average rate, between Rs. 10-12 per unit

10. Conveniently Accessible to domestic and International Market about 50 km

11. Produce to International Standards


With the above benefits tangible and intangible, the internal rate of return in the dairy farms is estimated at about 24% where as in the meat sector average rates of about 40% are expected.

With the cost of production to be lower due to renewable energy resources, the rates are expected to be even higher.

With the policy of high input / higher production against the present scenario of low input / low production, the production of milk and meat will increase many folds and would be able to cater to increasing domestic needs and the potential Hallal market in middle east and Europe.

FISHERIES SECTOR

DEVELOPMENT OF A BRACKISHWATER AQUACULTURE / MARICULTURE PARK ALONG THE COAST OF SINDH

INTRODUCTION

The Province of Sindh possesses 71% of total marine resources of the country along a 350 km long coast.

Besides, there are about 0.3 million hectares of Brackish water area comprising a network of creeks, low lying areas and backwaters.

These areas have great potential for culturing of fin fish / crustaceans / shell fish.

STRATEGY

• Develop a Brackish Water Aquaculture / Mariculture Park over 20000 acres along the coast

• Develop the Government owned Garho Shrimp Farm as a support infrastructure for the proposed park. The Farm would be rehabilitated to serve as a Training & Research Centre

Coastal Belt of Sindh 350 Km

(17 LARGE & MORE THAN 350 SMALL CREEKS)

500 Ac

2441 Ac

8527 Ac

4000 Ac

4000 Ac

800 Ac

100 Ac100 Ac

50 Ac

National Highway

Coastal Highway 279 km

Double Road

Metal Road

Pilot Shrimp Farm

Proposed Farming Sites

AIR TEMP RANGE

WATER TEMP RANGE

SALINITY RANGE

HIGHEST TIDE

MEAN HIGH TIDE

MEAN SEA LEVEL

5 – 41 CELSIUS

8 -34 CELSIUS

0 – 47 PPT

3.83 METERS

3.20 METERS

2.06 METERS

CONDITIONS AT SITE

• Road Network

– A 279 Km Coastal Highway is being constructed from Dhabeji (Thatta) to Ali Bunder (Badin)

– There is a network of roads servicing all the towns in the vicinity

– A network of link roads connecting the fishing villages is being constructed

INFRASTRUCTURE

SUPPORT INFRASTRUCTURE GARHO SHRIMP FARM – a Government Facility located near

Ambra Creek about 4.5 kilometers from the nearest town and easily approachable from Karachi via National Highway.

The shrimp farm will be rehabilitated and renovated as a hub of all fisheries activities and will be linked with the Aqua-Mari Culture Park

Being located in centre of the coastal area, it will serve as a Research and Training Centre and will provide all technical support to the Aqua-Mari Culture Park.

It will also function as a Disease diagnostic centre, Soil and water quality analysis lab and demonstration unit for development of Aqua-Mari culture park

INCENTIVES

• The Government would:– Build internal & external roads– Conduct Master Planning of the Park– Rehabilitate the existing Shrimp Farm to perform

as a training & research hub– Provide seed at subsidized rates– Provide Technical Support– Provide loans through a revolving fund set up for

the purpose

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INVESTMENT OPPORTUNITIES