Economics of Livestock Production
L&DDD
Economics of Livestock Production
In
Various Ecological Zones of
Punjab
By:
Dr Maqsood Ahmad
Department of Livestock Economics
University of Veterinary and Animal Sciences, Lahore-54000
Tel: 042-9211449-ext.245, Cell: 0321-6970156,
Email: drmaqsoodvet@yahoo.com
Supervised By:
Prof. Dr Tallat Naseer Pasha
Dean Faculty of Life Sciences & Business Management
University of Veterinary and Animal Sciences, Lahore-54000
Livestock & Dairy Development Department
Planning & Evaluation Directorate
Government of Punjab,
Lahore
1
Economics of Livestock Production
L&DDD
Abbreviations
Abbreviation
L&DD
FC
VC
TC
GF
DF
Conc.
Equip.
Elec
IR
TFC
TVC
Depp.
Vet. Serv.
Abbreviated
Livestock & Dairy Development Board, Punjab
Fixed Cost
Variable Cost
Total Cost
Green Fodder
Dry Fodder
Concentrates
Equipment
Electricity
Interest rate
Total Fixed Cost
Total Variable Cost
Depreciation
Veterinary Services
2
Economics of Livestock Production
L&DDD
TABLE OF CONTENTS
Sr. #
Contents
Page #
01
Summary
03
02
Introduction
04
03
Objectives of Study
05
04
Methodology & Criterion
o Target Areas
o Methodology
06
06
09
05
Economics of milk production
 Gujranwala area
 Bhakkar area
 Jehlum area
 Pakpattan
 Faisalabad area
 Lahore area
10
11
15
19
23
28
34
06
Beef Production in Punjab
37
07
Peri-Urban Commercial Farming &Marketing Chain
38
08
Milk & Milk By-Products Processing And Marketing
40
09
Sources of Milk Production
41
10
Average Unit Productivity
42
11
Cost of Milk Production
44
12
Milk Supply Channels; Cost and Sale
45
13
Salve Value of Milk
46
14
Managemental Practices
47
15
Milk By-Products
52
16
Major Findings
55
17
Recommendations
57
14
References
58
3
Economics of Livestock Production
L&DDD
Table & Chart Index
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Table ID
G-1
G-2
G-3
G-4
B-1
B-2
B-3
B-4
J-1
J-2
J-3
J-4
P-1
P-2
P-3
P-4
F-1
F-2
F-3
F-4
L-1
L-2
L-3
L-4
BE-1
WMP
SRPS-P
MPr
EOM
ML-1
EI-1
DepPA-Com
S&EqPA-Com
IRPA-Com
TFCPA-Com
LaPA-Com
ElPA-Com
GFPA-Com
DFPA-Com
CoPA-Com
VSPA-Com
TVCPA-Com
TCPA-Com
MYPA-Com
MPPL-Com
IPA-Com
PPA-Com
CAAG
Description
Fixed Cost & its elements-Gujranwala
Fixed Cost & its elements-Gujranwala
Fixed Cost & its elements-Gujranwala
Profitability-Gujranwala
Fixed Cost & its elements-Bhakkar
Fixed Cost & its elements- Bhakkar
Fixed Cost & its elements- Bhakkar
Profitability- Bhakkar
Fixed Cost & its elements-Jhelum
Fixed Cost & its elements- Jhelum
Fixed Cost & its elements- Jhelum
Profitability- Jhelum
Fixed Cost & its elements-Pakpattan
Fixed Cost & its elements- Pakpattan
Fixed Cost & its elements- Pakpattan
Profitability- Pakpattan
Fixed Cost & its elements-Faisalabad
Fixed Cost & its elements- Faisalabad
Fixed Cost & its elements- Faisalabad
Profitability- Faisalabad
Fixed Cost & its elements-Lahore
Fixed Cost & its elements- Lahore
Fixed Cost & its elements- Lahore
Profitability- Lahore
Beef Production
World Mutton production (Million Tons)
Small Ruminants Prod. Systems in Pakistan
Mutton Production (000 tons)
Export of Mutton
Mortality Loss per Annum
Education Impact
Depreciation per animal (comparison)
Shed & Equip. per animal (comparison)
Interest rate per animal (comparison)
Total Fixed Cost per animal (comparison)
Labor per animal per animal (comparison)
Electricity per animal (comparison)
Green Fodder per animal (comparison)
Dry Fodder per animal (comparison)
Concentrates per animal (comparison)
Vet Services per animal (comparison)
Total Variable cost per animal (comparison)
Total cost per animal (comparison)
Milk yield per animal (comparison)
Milk Price per liter (comparison)
Income per animal (comparison)
Profitability per animal (comparison)
Comparison at a glance!
Note: All values & Graphical presentations depict per animal per day values, until &
unless otherwise mentioned.
4
Economics of Livestock Production
L&DDD
Graphical & Statistics Array
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Graph ID
TCC
PrC
FC-G
VC-G
TC-G
Pr-G
FC-B
VC-B
TC-B
Pr-B
FC-J
VC-J
TC-J
Pr-J
FC-P
VC-P
TC-P
Pr-P
FC-F
VC-F
TC-F
Pr-F
FC-L
VC-L
TC-L
Pr-L
MPLA
LAF
LAF-ZW
DepPA-Com
S&EqPA-Com
IRPA-Com
TFCPA-Com
LaPA-Com
ElPA-Com
GFPA-Com
DFPA-Com
CoPA-Com
VSPA-Com
TVCPA-Com
TCPA-Com
MYPA-Com
MPPL-Com
IPA-Com
PPA-Com
CAAG
Description
Total Cost (Comparison )
Profitability (Comparison )
Fixed Cost- Gujranwala
Variable Cost-Gujranwala
Total Cost-Gujranwala
Profitability-Gujranwala
Fixed Cost- Bhakkar
Variable Cost- Bhakkar
Total Cost- Bhakkar
Profitability- Bhakkar
Fixed Cost- Jhelum
Variable Cost- Jhelum
Total Cost- Jhelum
Profitability- Jhelum
Fixed Cost- Pakpattan
Variable Cost- Pakpattan
Total Cost- Pakpattan
Profitability- Pakpattan
Fixed Cost- Faisalabad
Variable Cost- Faisalabad
Total Cost- Faisalabad
Profitability- Faisalabad
Fixed Cost- Lahore
Variable Cost- Lahore
Total Cost- Lahore
Profitability- Lahore
Mortality Loss per Annum
Literacy Among Farmers
Literacy Among Farmers (Zone wise)
Depreciation per animal (comparison)
Shed & Equip. per animal (comparison)
Interest rate per animal (comparison)
Total Fixed Cost per animal (comparison)
Labor per animal per animal (comparison)
Electricity per animal (comparison)
Green Fodder per animal (comparison)
Dry Fodder per animal (comparison)
Concentrates per animal (comparison)
Vet Services per animal (comparison)
Total Variable cost per animal (comparison)
Total cost per animal (comparison)
Milk yield per animal (comparison)
Milk Price per liter (comparison)
Income per animal (comparison)
Profitability per animal (comparison)
Comparison at a glance!
5
Economics of Livestock Production
Executive Summary
Pakistan has larger base of dairy sector
allied with the agriculture.
Dairy sector
generates
employment
and
business
opportunities, particularly in the rural and
peri-urban areas. Numbers of people in urban
areas are also involved in dairy based business
and earn revenue. The public sector
departments hold primary responsibility to guide
the farmers and play their significant role in dairy
sector development. The research based
decisions of policy makers will have real impact
on welfare of farmers and progress of all the
stakeholders of this sector.
The livestock sector plays a vital role in
the economies of many developing countries. It
provides food or, more specifically, animal
protein in human diet, income, employment and
possibly foreign exchange. For low-income
producers, livestock also serves as a store of
wealth, provides draught power, and organic
fertilizer for crop production and can even be a
means of transport. Milk provides relatively quick
returns for small-scale livestock keepers and
smallholders produce the vast majority of milk in
most developing countries. It is a balanced
nutritious food and is a key element in
household food security.
In Pakistan, the livestock sector as a
whole plays a crucial role in the country’s rural
economy and within this sector milk is the
largest and single most important commodity.
Pakistan is the fourth largest milk producer in the
world and the importance of the country’s dairy
sector can be judged from the fact that in terms
of market value, its contribution to Gross
Domestic Product (GDP) surpasses all the major
crops. During 2002-2005, milk and milk products
worth US$10,167 million were exported from
Pakistan.
In spite of the above, there is a dearth of
research and documentation regarding the dairy
sector in Pakistan. No serious effort has been
made to understand the dynamics of this
important sector. Furthermore, Pakistan's dairy
industry is plagued by a number of problems
which include: a lack of commercial dairy farms,
low productivity, weak infrastructure, a lack of
financial facilities, and the ready availability of
L&DDD
raw milk to a poor and uneducated population.
The current process of collecting milk from a
large number of subsistence farmers is timeconsuming, costly and prone to adulteration. The
government, after initially ignoring the dairy
sector, has now realized its importance and
embarked upon a number of initiatives to boost
the sector. Under the new programs, the
Pakistan government has created the Pakistan
Dairy Development Company (PDDC) and
Livestock & Dairy Development Board (LDDB).
In Pakistan only 3-4 per cent of total milk
is currently processed and marketed through
formal channels. The remaining 97 per cent of
milk reaches end users for immediate
consumption through an extensive, multi-layered
distribution system of middlemen. More than half
of this milk collected by urban traders and
processing industries comes from small herd
families. These farmers can usually sell either to
middlemen such as gawalas (local milk
collection, transportation, and distribution
people), to shops, or direct to the (usually rural)
consumer. The farm gate price of milk ranges
from PKRs19 to PKRs40 per liter. This variation
is not linked to the quality of the milk but is rather
determined by the financial arrangement
between the buyer and seller and geographical
location. Currently, there are no policies to
regulate milk prices at the farm level. In
consequence, the market forces operating in a
totally unregulated environment are exploiting
the poor farmers by offering low prices for their
produce.
The purpose of the study was to
generate policy-relevant research and to identify
the cost structure in various ecological area and
marketing practices of input and output using
qualitative research techniques. A team of three
researchers was trained in qualitative data
gathering techniques and supervised by a senior
researcher (Prof. Dr. Maqsood Ahmad) who
gave back-up support. Key informants were
identified in several scoping visits and were
interviewed in ensuing visits. Observations were
also conducted at milk collection centers. Field
data was collected from various Punjab Zones.
Various geographical zones, according
to ascending order of their profitability and
productivity, are described for bird’s eye view
6
Economics of Livestock Production
In Thall Livestock Production Zone (ie Bhakkar), farmers having 1-5 animals have
total variable cost (TVC) per day per animal Rs
100.35; their total fixed cost (TFC) was Rs 14.6
& the total cost (TC) turns out to be Rs. 114.9
.The profit was Rs -23.46. Farmers having 6-10
have TVC per day per animal Rs 70.6; their TFC
was Rs 14.9 & the TC turns out to be Rs 85.5.
The profit was Rs 3.53. Farmers having 11-20
have TVC per day per animal Rs 50.1; their TFC
was Rs 15.1 & the TC turns out to be Rs 65.2 .
The profit was Rs 13.74.Finally, farmers having
21 & above have TVC per day per animal Rs
50.2; their TFC was Rs 17.8 & the TC turns out
to be Rs 70.0. The profit was Rs 24.76. Major
reasons for these low values, as described
above, are lack of irrigation water, deep sub-soil
water, lack of dairy breeds, non-availability of
fodder & lack of sowing of berseem fodder.
In
Southern
Punjab
Livestock
Production System (i-e Pakpattan), farmers
having 1-5 animals having total variable cost
(TVC) per day per animal Rs 97.86; their total
fixed cost (TFC) was Rs 19.86 & the total cost
(TC) turns out to be Rs. 117.73 .The profit was
Rs -11.62. Farmers having 6-10 have TVC per
day per animal Rs 74.08; their TFC was Rs 17.8
& the TC turns out to be Rs 91.95. The profit
was Rs 9.76. Farmers having 11-20 have TVC
per day per animal Rs 69.7; their TFC was Rs
19.8 & the TC turns out to be Rs 89.59. The
profit was Rs 14.52.Finally, farmers having 21 &
above have TVC per day per animal Rs 70.33;
their TFC was Rs 22.12 & the TC turns out to be
Rs 92.44. The profit was Rs 15.9.Despite of
presence of buffalo breed (Nili Ravi) as well as
fertile land & abundance of water, results were
not that good. Major reasons for these declined
values include low milk price (i-e Rs 21 approx.),
less stress on animal care & management.
In Barani Rain Fed Production Zone
(i-e Jhelum), farmers having 1-5 animals have
total variable cost (TVC) per day per animal Rs
97.86; their total fixed cost (TFC) was Rs 19.86
& the total cost (TC) turns out to be Rs. 117.73
.The profit was Rs -11.62. Farmers having 6-10
have TVC per day per animal Rs 74.08; their
TFC was Rs 17.8 & the TC turns out to be Rs
91.95. The profit was Rs 9.76. Farmers having
11-20 have TVC per day per animal Rs 69.7;
L&DDD
their TFC was Rs 19.8 & the TC turns out to be
Rs 89.59 . The profit was Rs 14.52.Finally,
farmers having 21 & above have TVC per day
per animal Rs 70.33; their TFC was Rs 22.12 &
the TC turns out to be Rs 92.44. The profit was
Rs 15.9.Major hindrances for these in-sufficient
values, are sole land grazing & poor genetic
potential .However, Buffalo is rapidly replacing
the Dhanni cows as milch animals. On scattered
plain land in hilly areas, the farmers manage the
fodder sowing including varieties of berseem
grass & maize. Although, the milk production
was not that good along the river but remittances
from abroad to local households create good
purchasing power. Demand was high as
compared to the supply, but the production was
low. The reason behind is that milk is an income
elastic product.
In Peri-Urban Milk Production System
(i-e Faisalabad & Lahore), farmers having 1-5
animals, have total variable cost (TVC) per day
per animal Rs 264.26 & 233.55; their total fixed
cost (TFC) was Rs 22.59 & 31.50 , and the total
cost (TC) turns out to be Rs. 286.9 & 265.05
respectively for Faisalabad & Lahore .The profit
was Rs 33.66 & 28.28, respectively. Farmers
having 6-10 have TVC per day per animal Rs
172.07& 215.15; their TFC was Rs 29.28 &
26.21; the TC turns out to be Rs 201.34 & 241.5,
respectively. The profit was Rs -5.09 & 37.87,
respectively. Farmers having 11-20 have TVC
per day per animal Rs 163.2 & 158.01; their TFC
was Rs 24.55 & 27.05 the TC turns out to be Rs
187.75 & 185.26, respectively. The profit was Rs
47.16 & 61.97.Finally, farmers having 21 &
above have TVC per day per animal Rs 155.25
& 130.23; their TFC was Rs 30.47 & 34.71 the
TC turns out to be Rs 185.70 & 164.95. The
profit was Rs 53.52 & 157.19 respectively. Major
reasons for these considerable values are high
animal yield, more purchasing power in urban
areas, availability of
green fodder &
concentrates (such as cotton seed cakes, wheat
bran, rape seed cake & waste bread)
Finally, in Northern Punjab Irrigated
Zone (i-e Gujranwala), farmers having 1-5
animals, have total variable cost (TVC) per day
per animal was Rs 125.98; their total fixed cost
(TFC) was Rs 22.24 & the total cost (TC) turns
out to be Rs. 148.22 .The profit was Rs 21.35.
Farmers having 6-10 have TVC per day per
7
Economics of Livestock Production
L&DDD
animal Rs 98.42; their TFC was Rs 23.17 & the
TC turns out to be Rs 121.59. The profit was Rs
51.51. Farmers having 11-20 have TVC per day
per animal Rs 81.47; their TFC was Rs 22.16 &
the TC turns out to be Rs 103.63 . The profit was
Rs 100.63.Finally, farmers having 21 & above
have TVC per day per animal Rs 66.67; their
TFC was Rs 25.71 & the TC turns out to be Rs
92.38. The profit was Rs 182.21.The major
edges present in this area, as listed above, are
fertile land, sub-soil fit water, availability of canal
water for fodder irrigation, awareness among
farmers & convenient provision of veterinary
services.
and other associated to take effective decisions
in the development of dairy industry.
The
proportion of small milk producers is quite high,
which hinders the economies of scale and
profitability in the milk production.
As a matter of fact, 82% milk is
contributed by buffaloes with averagely 18
buffaloes with one former, while 4 cows are
averagely owned by one farmer with 18% share
in the milk industry.
Sustained effort on the part of the
government and the private sector is needed to
improve animal stocks and feed, management
practices, and production technologies in order
to harness the immense potential of this
important livestock sector, in view of its
contribution to GDP. Private companies
engaged in milk collection and processing could
help farmers to upgrade supply chains by
facilitating investment in chilling tanks for
purchasing and collecting of milk, which would
give farmers a guaranteed sale for quality milk;
improve the quality of feed to ensure a better
quality of milk in the form of advances tied to
procurement of better feed; and demonstrate the
health and safety problems associated with poor
quality milk that would increase the potential
sale of processed milk and milk products.
GRAPH_ID: TCC
The government should improve and
enforce existing food safety standards in line
with international standards; provide practical
training to farmers on modern farming practices;
raise capacity of training institutions to provide
required training and qualifications; and
investigate modern technologies, systems, and
underlying seasonal economics of dairy
production to better inform investment decisions
and correct market distortions.
GRAPH_ID: PrC
This survey brings forward the valued
findings, which may help the planning
departments, key stakeholders, policy makers
Another serious issue is the absence of
any formal or even informal farmers’
organization, such as a milk producers
association. Across most other major dairyproducing countries, dairy farmers are organized
into their own associations, which support farmer
training and management, enable investment in
infrastructure and provide support services.
Finally, on a social level, attempts to
enhance production of smallholder dairying are
important not only for raising milk yield in the
country but could also become an effective tool
for raising income levels of impoverished rural
households. Successful interventions in this type
of dairy farm could be the key to alleviating
poverty in rural areas. This research is
8
Economics of Livestock Production
L&DDD
commissioned by Planning & Evaluation
Department, L&DD, and Govt. of the Punjab.
Introduction
The study aims at investigating the
market structure, sources of milk production,
average unit productivity, sale value of milk and
cost of production in peri-urban & rural areas of
Punjab. The research also explores sale, cost,
production and quantity of by-products of milk
purchased by milk centers. All the data is
collected on semi-structured questionnaire
through interviews of farmers and milk centers of
respective zones.
Agriculture is a major source of
employment for rural population of Pakistan and
its share in GDP is 21% and employs 43.4% of
the total workforce in Pakistan. Livestock
contributes 52% of agri share. Livestock is by far
the most important sub-sector. The share of
agricultural growth has jumped from 25.3
percent in 1996 to 49.6 percent in
2006(Livestock census, 2006) and it contributes
almost 52 % of Agriculture GDP (Economic
Survey, 2007-2008). Value of milk is greater
than the value of any single most important crop
of Pakistan.
The said survey reveals that maximum
profitability is enjoyed by livestock holders of
Northern Punjab (i-e Gujranwala).The reason
behind was fertile land, sub-soil fit water,
availability of canal water for fodder irrigation,
awareness among farmers & convenient
provision of veterinary services. On the other
hand, minimum profitably (even some times
loss) is observed in Thall Livestock Production
Zone of Bhakkar. Major reasons for this pitfall
were lack of irrigation water, deep sub-soil
water, lack of dairy breeds, non-availability of
fodder & lack of sowing of berseem fodder.
Next five years, in Pakistan, are subject
to huge dairy bloom. This is the reason why a lot
many investors from textile (e-g Nishat textile %
Sapphire Textile) & other business sectors have
diverted their attention towards this sector. This
advancement creates a vast scope in Livestock
Management & Farming. Exotic breeds such as
Friesian & Jersey are being imported and
managed in our environment. However, certain
issues need to be addressed to acclimatize
these animals in hot dry environment of
Pakistan.
Average milk production of cattle/buffalo
per day per animal is about 5-6 liters. This yield
is extremely low as compared to Ireland,
Australia, Germany, Brazil and other advanced
countries. This huge gap can be filled by
observing modern dairy advancements such as
genetic selection, Artificial Insemination, embryo
transfer, mechanization, integrated farming,
proper management & other modern techniques.
Scientists have identified six ecological
agriculture zones for the purpose of research
and development and for livestock production
system. Following zones have been identified by
the Livestock & Dairy Development, Govt. of
Punjab.

Punjab Irrigated Zone (Gujranwala)

Thall Livestock Production Zone (Bhakkar)

Barani Rain Fed Production Zone (Jhelum)

Southern Punjab Livestock Production
System
(Pakpattan)

Peri Urban Milk Production System
(Faisalabad & Lahore)
It is noteworthy to mention that Livestock
is the most important source of employment in
the rural agriculture sociology of Punjab.
Aims & Objectives
Objectives of Study:



To assess milk and meat production
cost in the various production systems.
Factors affecting cost of peri-urban milk
production.
To study milk and meat marketing
system.
To appraise the management practices
of the system
9
Economics of Livestock Production

To assess the socio- economic status of
milk and meat production.

Economics of mutton production.
Purpose of the study was to estimate
the economics of milk meat and goat sheep
production. As the land holding is squeezing day
by day and our farmer is highly under employed
in disguised labor productivity. Crop production
is stagnant and only daily cash flow source is
meat and milk and a good source of livelihood
and life sustenance.
Govt. of Punjab is striving through its
Dept. of L&DD to improve this important sector
for poverty eradication and to increase the
income of the farmers, developing the Livestock
wealth of the province. The specific objective of
the study were as under
The study aims at surveying the farmers
of various areas and milk centers in urban areas
of Punjab. The study tries to investigate in the
following areas:
 Source of Milk Production
 Average unit productivity
 Cost of Milk Production
 Milk Supply Channels
 Management practices in peri-urban areas
 By Products of Milk
Criterion for Selection of Sample
Area
One Union council from each tehsil was
randomly selected from each District and one
village from each Union Council was selected.
List of livestock farmers having 1-5, 6-10, 11-20
& 21 and above animals was prepared. Ten
farmers from each strata on the basis of
livestock herd size were interviewed for meat &
milk economics.
As the keeping of sheep goat is very scarce. In
the same village all the sheep goat farmers will
be interviewed for collection of data. For finding
out real economics of milk & meat assessment
Gawala Colonies of Lahore & Faisalabad &
Gujranwala are also surveyed. Target farmers
were studied to calculate Economics of the
production system.
L&DDD
For example: in Lahore, three milch
colonies were Thokar Niaz Baig, Sagian Hence,
Shahdra and Harbanspura were surveyed.
Similarly, in Faisalabad, Govt. supported and
established colonies at Chekader Aminpur Road
& Sathiana Road were studied.
Target Areas:
The number of dairy farms visited for
sample collection depends on number of
animals. There was random sampling and farms
from different areas. The number of dairy farms
visited from different areas is depending upon
population and management system of herds.
Punjab milk production base is highly
scattered with small holding and land-less
livestock farming and dairy enterprise is
dominated by the private sector, with the
government playing only a regulatory role.
According to the Livestock Census held in 2006,
among the 8.4 million reported dairying
households, 51% own a herd size of just 1-5
animals. Another 28% households maintain herd
sizes of 6 to 10 animals, whereas, only 14.23%
of the herd sizes are composed of 11 to 20
animals. Only 6.72% of the farms in the country
come under the large category where more than
20 animals are kept.
Literature Review:
Approximately, 80% of the milk is
produced in rural areas, with peri-urban and
urban areas accounting for another 15% and
5%, respectively (Livestock census, 2006). Only
3% of total production in the country is marketed
through formal channels. The remaining 97% is
produced and marketed in raw form by informal
agents in the marketing chain portion of the milk
producers.
To ensure development of the country’s
dairy sector, it is important that critical support is
provided to the promotion of smallholder
producers in peri-urban areas. Key issues for
promoting smallholder based dairy development
would be to organize farmers, integrate
production with marketing, enhance access to
credit, upgrade milk marketing chains through
adoption of modern technology, enhance market
information, and improve farm profitability.
10
Economics of Livestock Production
Despite decades of neglect by the
government, Pakistan is the fifth largest milk
producer in the world.(2003) According to the
Pakistan Livestock Census held in 2006 overall,
milk production increased by 35.6 percent since
1996. Buffaloes and cows are major milk
producing animals.
According to a study on Milk Marketing
conducted by FAO in Pakistan in 2003, 80% of
the milk in the country is collectively produced by
rural commercial and rural subsistence
producers. The peri urban producers account for
15% of the milk production, whereas urban
producers contribute 5% to the total milk
production in the country (FAO, 2003)
Punjab Milk production base is
associated on a large number of problems,
poverty of the farmers, poor management and
under fed herd, lack of commercial dairy farms,
low productivity due to poor nutrition, a weak
infrastructure, lack of financial facilities, and the
ready availability of raw milk to a poor and
uneducated population. Although Pakistan was
ranked fourth among the five leading milk
producing countries in the world, with an
estimated 60 million animals having produced
closely to 42.29 million tons of milk in year 2008
and over 31 million tons during 2005-06 as the
5th largest producer of milk in the world, its yield
per animal is only one-fifth of Germany and
Holland.
Methodology
L&DDD
production. The Punjab is selected as sample to
study the research issues and collect data
through self-constructed research questionnaire.
The variables are primarily extracted from
manuscript of focus group discussion, held in
livestock departments. All the stakeholders and
active players of dairy farming share their
observations and experiences based on
objectives set by study sponsor. The
questionnaire was further validated by pilot
testing of 15 respondents and number of errors
regarding language, structure, and flow and
scale options were removed. Faisalabad &
Gujranwala are also surveyed.
Various owners/ managers of dairy
farms and milk shops/collection centre were
interviewed by professional surveyors &
livestock-management students, based on
system sampling. Quality of survey was ensured
through 10% back checking. All the data is
analyzed on statistical software & finally the
results are produced for interpretation.
A comprehensive questionnaire was
designed after pre-testing all the aspects of cost
structures i.e., value of animal, interest rate on
this value, depreciation @ of 5% of animals,
sheds, chaff cutter, rope and utensils.
Depreciation of agri implements for crops was
taken at the rate of 10% of the value. For
calculations of variable cost the market rate of
fodder crops, dry fodder and concentrate rations
were accounted for. The contract labor cost of
the area was calculated towards family labor.
The study attempts to investigate
different variables of interest related to milk
11
Economics of Livestock Production
L&DDD
Estimation of cost and return in milk, business in different
ecological zones of Punjab.
The following areas/districts were selected.
1. Thall Livestock Production Zone
Bhakkar
2. Southern Punjab Livestock Production System
Pakpattan
3. Barani Rain Fed Production Zone
Jhelum
4. Peri Urban Milk Production System
Faisalabad & Lahore
5. Punjab Irrigated Zone
Gujranwala
Each ecological district is discussed one by one.
12
Economics of Livestock Production
L&DDD
1. Thall Livestock Production Zone (Dist. Bhakkar)
Milk Production
In Bhakkar, three Tehsils: Mankera,
Darya Khan and Bhakkar were selected .Each
Village from each Tehsil was selected as
sampling area. Main milch animal was Dhanni
and few Dhanni Crosses with Jersey and
Friesian As a matter of fact, animal grazing was
interspersed, grazing was the major concern to
feed the animals.
Fixed Cost
Sample size was 135 respondents. For
Bhakkar the fixed cost per animal per day was
calculated. The depreciation of animal was Rs.
4.41, 4.69, 4.84 and 5.59 per animals per day for
the farm size group of 1-5 animal, 6-10 animals,
11-20 animals and 21 and above animals
respectively. Depreciation of sheds and
equipment was Rs. 1.37, 0.84, 0.57, 1.05 per
animal per day by the farm size in the
descending order, respectively. Interest on the
value of animal per day was Rs. 8.82, 9.38, 9.68
and 11.18, respectively,
For calculation of income from milk total
milk production, milk fed to calves and milk
marketed was apportioned. Home consumption
milk was also inducted in the income stream of
the milk.
Total Cattle: 1483
Milking Cattle 398
FC
Animals
1-5 Animals
Frequency
Depp._Animals
Equip&Shed
IR
TFC
6-10 Animals
38
51
4.41
4.69
1.37
0.84
8.82
9.38
14.60
14.91
11-20 Animals
21 & Above
30
16
4.84
5.59
0.57
1.05
9.68
11.18
15.10
17.82
Total
135
Table ID:B-1
GRAPH ID: FC-B
13
Economics of Livestock Production
L&DDD
Variable Cost
& above Animals” .Similarly, Vet Services count
for 0.63, 0.57, 0.41 & 0.28 respectively. Labor
costs 37.5, 22.31, 14.38 & 15.96 respectively.
Similarly, Green Fodder, Dry Fodder &
Concentrates count for “48.11 7.73
3.22”,”
36.30 6.04 4.03”, “26.55 4.46 3.09”, “22.33
4.91
5.52” respectively for 1-5 Animals”, “6-10
Animals”, “11-20 Animals” & “21 & above
Animals”
The total variable cost comprises of
aggregation of costs for electricity, Vet Services,
Labor, Green Fodder, Dry Fodder and
Concentrates. Green Fodder and Dry Fodder is
fed to all animals but concentrate diet is only fed
to milking cattle.
Variable cost per day per cow for
electricity was 3.15, 1.42, 1.2 & 1.2 for “1-5
Animals”, “6-10 Animals”, “11-20 Animals” & “21
VC
Animals
Frequency
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
38
51
30
16
Labor
37.50
22.31
14.38
15.96
Elec
Vet Serv
3.15
1.42
1.22
1.21
0.63
0.57
0.41
0.28
GF
48.11
36.30
26.55
22.33
DF
7.73
6.04
4.46
4.91
Conc.
3.22
4.03
3.09
5.52
TVC
100.35
70.68
50.11
50.22
135
Table ID:B-2
GRAPH ID: VC-B
Total Cost
Comprise of total fixed cost and total
variable cost. Total cost per cow per day was
Rs. 114.95, 85.59, 65.21 & 68.04 by farm size I,
II, III and IV, respectively. Fixed cost per cow per
day was Rs. 14.6, 14.9, 15.1 & 17.8 and variable
cost was Rs. 100.35, 70.68, 50.11 & 68.04 by
the farm size I, II, III and IV, respectively.
14
Economics of Livestock Production
Farmer Group
Animals
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
L&DDD
FC
frequency
38
51
30
16
Total
Depp._
4.41
4.69
4.84
5.59
Equip&Shed
1.37
0.84
0.57
1.05
VC
IR
8.82
9.38
9.68
11.18
TFC
14.60
14.91
15.10
17.82
Labor
37.50
22.31
14.38
15.96
Elec
3.15
1.42
1.22
1.21
Vet
Serv
0.63
0.57
0.41
0.28
GF
48.11
36.30
26.55
22.33
TC
DF
7.73
6.04
4.46
4.91
Conc.
3.22
4.03
3.09
5.52
TVC
100.35
70.68
50.11
50.22
135
Table ID: B-3
GRAPH ID: TC-B
Income
Milk yield per day per cow was 4.1 liters,
4.1liters, 3.6 liters and 4.3 liters, by all the farm
size in descending order, respectively and price
per liter was Rs. 22.2, 21.38, 21.9 and 21.6 by
all farm categories, respectively.
Farmer Group
FC
Animals
TFC
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
Frequency
38
51
30
16
0.00
0.00
0.00
0.00
VC
TC
TVC
100.35
70.68
50.11
50.22
TC
114.95
85.59
65.21
68.04
Income
MY
4.12
4.17
3.61
4.30
Rate
22.18
21.38
21.89
21.56
Income
91.49
89.13
78.95
92.79
Profit
-23.46
3.53
13.74
24.76
135
Table ID:B-4
15
TC
114.95
85.59
65.21
68.04
Economics of Livestock Production
L&DDD
GRAPH ID: Pr-B
Milk market channel was Dodhis, Shops
and sale to nearby households. Marketing was
not a problem and demand for milk was higher
as compared to supply for consumption. The byproducts prepared in the area was raw cheese,
Doda, khoya, sweets, Dhahi and Lassi by the
end users.
in descending order. Least profit was observed
by the small holder, however profit increases
along as the number of animals increased.
Highest profit was observed by the commercial
farm having greater than 20 cattle. Management
practices and health protection were better by
the large farmers and use of technology to
reduce the cost.
Profit per cow was Rs. -23.46, 3.53,
13.74 & 24.76 respectively per day by farm type
2. Southern Punjab Livestock Production System (Pakpattan)
Milk Production
Southern Punjab Pakpattan is the
breeding area For calculation of income from
milk total milk production, milk fed to calves and
milk marketed was apportioned. Home
consumption milk was also inducted in the
income stream of the animals.
Cost of milk
Fixed Cost
Sample size was 160 respondents.
For Pakpattan, the fixed cost per animal
per day was calculated. The depreciation of
animal was Rs. 6.3, 5.7, 6.4 and 6.9 per animals
per day for the farm size group of 1-5 animal, 610 animals, 11-20 animals and 21 and above
animals respectively. Depreciation of sheds and
equipment was Rs. 1.1, 0.6, 0.6, 1.2 per animal
per day by the farm size in the descending
order, respectively. Interest on the value of
animal per day was Rs. 12.5, 11.5, 12.8 and
13.9, respectively.
16
Economics of Livestock Production
Total Animals:
Milking Animals:
L&DDD
1923
713
FC
Animals
Frequency
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
Equip &
Shed
Depp.
48
46
42
24
160
6.26
5.74
6.42
6.97
IR
1.08
0.63
0.61
1.20
TFC
12.52
11.49
12.84
13.94
19.86
17.86
19.87
22.12
Table ID: P-1
GRAPH ID: FC-P
animals”, “6-10 Animals”, “11-20 Animals” & “21
& above Animals” .Similarly, Vet Services count
for 1.03, 0.79, 0.38 & 0.36 respectively. Labor
costs 37.96, 21.98, 18.06 & 12.16 respectively.
Similarly, Green Fodder, Dry Fodder &
Concentrates count for “32.50 9.06
15.66”
,” 26.38 8.54 12.66” , “25.94 8.70 15.67” ,
“24.40 10.20 22.10” respectively for 1-5
Animals”, “6-10 Animals”, “11-20 Animals” & “21
& above Animals”
Variable Cost
The total variable cost comprises of
aggregation of costs for electricity, Vet Services,
Labor, Green Fodder, Dry Fodder and
Concentrates. Green Fodder and Dry Fodder is
fed to all animals but concentrate diet is only fed
to milking animals.
Variable cost per day per animal for
electricity was 1.7, 3.7, 0.97 & 1.1 for “1-5
VC
Animals
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
Frequency
48
46
42
24
160
Labor
Electr
37.96
21.98
18.06
12.16
1.66
3.73
0.97
1.11
Vet serv
1.03
0.79
0.38
0.36
GF
DF
32.50
26.38
25.94
24.40
9.06
8.54
8.70
10.20
Conc
15.66
12.66
15.67
22.10
TVC
97.86
74.08
69.72
70.33
Table ID: P-2
17
Economics of Livestock Production
L&DDD
GRAPH ID: VC-P
Total Cost
Comprise of total fixed cost and total
variable cost. Total cost per animal per day was
Rs. 117.7, 91.9, 89.6 & 92.4 by farm size I, II, III
and IV, respectively. Fixed cost per animal per
day was Rs. 19.9, 17.9, 19.9 & 22.12 and
Farmer Group
Animals
1-5
Animals
6-10
Animals
11-20
Animals
21 &
Above
Animals
Total
variable cost was Rs. 97.9, 74.08, 69.72 & 70.33
by the farm size I, II, III and IV, respectively.
FC
Equip &
Shed
VC
Frequency
Depp.
IR
TFC
48
6.26
1.08
12.52
19.86
46
5.74
0.63
11.49
42
6.42
0.61
24
160
6.97
1.20
Labor
GF
TC
Electr
Vet serv
DF
37.96
1.66
1.03
32.50
9.06
17.86
21.98
3.73
0.79
26.38
12.84
19.87
18.06
0.97
0.38
13.94
22.12
12.16
1.11
0.36
Conc
TVC
TC
15.66
97.86
117.73
8.54
12.66
74.08
91.95
25.94
8.70
15.67
69.72
89.59
24.40
10.20
22.10
70.33
92.44
Table ID: P-3
GRAPH ID: P-3
18
Economics of Livestock Production
L&DDD
Income
Milk yield per day per animal was 4.49
liters, 4.38 liters, 4.43 liters and 4.67 liters, by all
the farm size in descending order, respectively
Farmer Group
Animals
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
Frequency
48
46
42
24
160
and price per liter was Rs. 23.6, 23.2, 23.52 &
23.20 respectively.
Total
TFC
19.86
17.86
19.87
22.12
Income
TVC
TC
97.86
74.08
69.72
70.33
MY
117.73
91.95
89.59
92.44
4.49
4.38
4.43
4.67
Rate
Income
23.64
23.20
23.52
23.20
106.10
101.71
104.11
108.35
Profit
-11.62
9.76
14.52
15.91
Table ID: P-4
GRAPH ID: Pr-P
Milk market channel was Dodhis, Shops
and sale to nearby households. Marketing was
not a problem and demand for milk was higher
as compared to supply for consumption. The
byproducts prepared in the area was raw
cheese, khoya, sweets, Dhahi and Lassi by the
end users.
in descending order. Least profit was observed
by the small holder, however profit increases
along as the number of animals increased.
Highest profit was observed by the commercial
farm having greater than 20 animals.
Management practices and health protection
were better by the large farmers and use of
technology to reduce the cost.
Profit per animal was Rs. -11.62, 9.76,
14.52 & 15.91 respectively per day by farm type
19
Economics of Livestock Production
L&DDD
3. Barani Rain Fed Production Zone (Jhelum)
Milk Production
For calculation of income from milk total
milk production, milk fed to calves and milk
marketed was apportioned. Home consumption
milk was also inducted in the income stream of
the animals.
The depreciation of animal was Rs.
6.49, 6.13, 6.08 and 6.36 per animals per day for
the farm size group of 1-5 animal, 6-10 animals,
11-20 animals and 21 and above animals
respectively. Depreciation of sheds and
equipment was Rs. 2.08, 1.56, 1.51, 1.26 per
animal per day by the farm size in the
descending order, respectively. Interest on the
value of animal per day was Rs. 12.97, 12.25,
12.16 and 12.71, respectively,
Fixed Cost
Sample size was 135 respondents. For
Jhelum the fixed cost per animal per day was
calculated.
Total Animals:
Milking Animals:
1279
391
FC
Animals
Frequency
Depp.
Equip&Shed
IR
TFC
1-5 Animals
56
6.49
2.08
12.97
21.54
6-10 Animals
6.13
6.08
1.56
12.25
19.94
11-20 Animals
27
19
1.51
12.16
19.75
21 & Above
15
6.36
1.26
12.71
20.33
Total
117
Table ID: J-1
GRAPH ID: FC-J
Variable Cost
The total variable cost comprises of
aggregation of costs for electricity, Vet Services,
Labor, Green Fodder, Dry Fodder and
Concentrates. Green Fodder and Dry Fodder is
fed to all animals but concentrate diet is only fed
to milking animals.
Variable cost per day per animal
for electricity was 2.02, 1.37, 1.02 & 0.88 for “1-5
20
Economics of Livestock Production
L&DDD
animals”, “6-10 Animals”, “11-20 Animals” & “21
& above Animals” .Similarly, Vet Services counts
for 1.11, 1.27, 1.02 & 0.10 respectively. Labor
costs 46.38, 31.55, 25.34 & 11.95 respectively.
Similarly, Green Fodder, Dry Fodder &
Concentrates count for “38.95 11.69 24.80”,”
29.11 10.13 13.08”, “24.78
8.83
11.44”,
“11.40 23.68
23.59” respectively for 1-5
Animals”, “6-10 Animals”, “11-20 Animals” & “21
&
above
Animals”
VC
Animals
Frequency
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
LABOR
Elec
Vet serv
GF
DF
Conc
TVC
56
27
19
46.38
2.02
1.11
38.95
11.69
24.80
124.95
31.55
1.37
1.27
29.11
10.13
13.08
86.51
25.34
1.02
1.02
24.78
8.83
11.44
72.44
15
11.95
0.88
0.10
11.40
23.68
23.59
71.59
117
Table ID: J-2
GRAPH ID: VC-J
Total Cost
Comprise of total fixed cost and total
variable cost. Total cost per animal per day was
Rs. 146.49, 106.45, 92.19 & 91.92 by farm size
I, II, III and IV, respectively.
FC
Farmer Group
Animals
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
Fixed cost per animal per day was Rs.
21.54, 19.94, 19.75 & 20.33 and variable cost
was Rs. 124.95, 86.51, 72.44 & 71.59 by the
farm size I, II, III and IV, respectively.
Frequency
Depp.
Equip&Shed
56
27
19
15
6.49
6.13
6.08
6.36
2.08
1.56
1.51
1.26
VC
IR
12.97
12.25
12.16
12.71
TFC
21.54
19.94
19.75
20.33
LABOR
46.38
31.55
25.34
11.95
Elec
Vet serv
2.02
1.37
1.02
0.88
1.11
1.27
1.02
0.10
TC
GF
DF
Conc
TVC
TC
38.95
29.11
24.78
11.40
11.69
10.13
8.83
23.68
24.80
13.08
11.44
23.59
124.95
86.51
72.44
71.59
146.49
106.45
92.19
91.92
117
21
Economics of Livestock Production
L&DDD
GRAPH ID: TC-J
Income
Milk yield per day per animal was 6.0
liters, 5.97 liters, 4.81 liters and 5.50 liters, by all
the farm size in descending order, respectively
TC
Farmer Group
Animals
and price per liter was Rs. 27.63, 27.74, 26.58 &
27.47 respectively.
Frequency
TFC
TVC
Income
TC
M.Y
Rate
Income
Profit
1-5 Animals
56
56.00
112.00
146.49
6.00
27.63
165.75
19.26
6-10 Animals
27
27.00
54.00
106.45
5.97
27.74
165.69
59.25
11-20 Animals
19
19.00
38.00
92.19
4.81
26.58
127.75
35.56
21 & Above
15
15.00
30.00
91.92
5.50
27.47
150.97
59.05
Total
117
Table ID: J-4
GRAPH ID: Pr-J
22
Economics of Livestock Production
An increasing trend of replacing cattle
with buffalo was seen and stall feeding with
grown fodder especially berseem and maize was
observed. Availability of pure high quality milk
was the priority of home consumer farmers.
Milk market channel was Dodhis, Tea
Shops and sale to nearby households.
Marketing was not a problem and demand for
milk was higher as compared to supply for
consumption. The by- products prepared in the
area was raw cheese, khoya, sweets, Dhahi and
Lassi by the end users.
L&DDD
Profit per animal was Rs. 19.26, 59.25,
35.56 & 59.05 respectively per day by farm type
in descending order. Least profit was observed
by the small holder, however profit increases
along as the number of animals increased.
Highest profit was observed by the commercial
farm having greater than 20 animals.
Management practices and health protection
were better by the large farmers and use of
technology to reduce the cost.
Peri urban Milk Production
For calculation of economics of animals in per urban area, two big cities were selected.
1. Lahore &
2. Faisalabad
4. Peri urban Punjab (Faisalabad)
Faisalabad city have a population of
more than five million with high opportunities of
employment in industrial sector. There is a high
demand of milk and milk products. For supply of
milk to the city, there are two large cattle
colonies established by the local authorities for
the farmers.
Forty five farmers were interviewed from
the two organized colonies Chakader Aminpur
road and Satiana road Faisalbad. Organized
sheds were constructed by the farmers. Land
was allotted to each farmer, boundary walls
enclosed each farm separately. Major milk
animal was buffalo of Nili-Ravi and Ravi breed
with few cows by some farmers. Cow milk was
not preferred by the consumers due to low fat
contents and total SNF.
Cost of milk
Fixed Cost
Sample size was 45 respondents. For
Faisalabad, the fixed cost per animal per day
was calculated. The depreciation of animal was
Rs. 6.7, 9.12, 8.11 and 10.14 per animals per
day for the farm size group of 1-5 animal, 6-10
animals, 11-20 animals and 21 and above
animals respectively. Depreciation of sheds and
equipment was Rs. 2.80, 1.93, 0.23, 0.07 per
animal per day by the farm size in the
descending order, respectively. Interest on the
value of animal per day was Rs. 13.2, 18.23,
16.21 and 20.27, respectively
23
Economics of Livestock Production
L&DDD
FC
FC
Animals
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Frequency
5
5
15
20
Depp
EquiP& Shed
IR
TFC
6.60
2.80
13.20
22.59
9.12
1.93
18.23
29.28
8.11
0.23
16.21
24.55
10.14
0.07
20.27
30.47
Total
Table ID: F-1
GRAPH ID: FC-F
Total fixed cost was Rs. 22.6, 29.28,
24.55 and 30.47, respectively.
Variable Cost
Dominant proportion of cost was from
variable cost. The total variable cost comprises
of aggregation of costs for electricity, Vet
Services, Labor, Green Fodder, Dry Fodder and
Concentrates. Green Fodder and Dry Fodder is
fed to all animals but concentrate diet is only fed
to milking animals. Fodder offered to the animal
was Berseem, Sugarcane and Maize during
Rabi season and Kharif fodder used was Jawar,
Sadhabahar, Maize fodder.
The
feed
ingredients
used
as
concentrate ration were cotton seed cake,
rapeseed cake, maize oil cake, gluten feed 30%,
Roti, double roti waste of confectionaries. Fifty %
farmers used DCP bone meal and mineral
mixture in the Vanda. Fodder and ingredients
markets were available in the vicinity of dairy
farms. Feeding cost was the dominant
proportion of variable and total cost, it was
almost 70% of all the cost in milk production.
Variable cost per day per animal for
electricity was 4.94, 2.89, 2.29 & 1.47 for “1-5
Animals”, “6-10 Animals”, “11-20 Animals” & “21
& above Animals” .Similarly, Vet Services count
for 2.68, 0.56, 1.03, & 0.66 respectively. Labor
costs 92.33, 39.77, 29.48 & 19.56 respectively.
Similarly, Green Fodder, Dry Fodder &
Concentrates count for “85.35 29.98 48.1”,”
71.48 27.73 29.4”, “66.79
20.37 43.5”,
“39.03 20.29
74.23” respectively for 1-5
Animals”, “6-10 Animals”, “11-20 Animals” & “21
& above Animals”
24
Economics of Livestock Production
L&DDD
VC
Animals
Frequency
Labor
Elec
Vet Serv
GF
DF
Conc
TVC
1-5 Animals
5
92.33
4.94
2.68
85.35
29.98
48.1
264.5
6-10 Animals
5
39.77
2.89
0.56
71.48
27.73
29.4
172.7
11-20Animals
15
29.48
2.29
1.03
66.79
20.37
43.5
163.6
21 & Above
20
19.56
1.47
0.66
39.03
20.29
74.23
155.2
Total
Table ID: F-2
GRAPH ID: VC-F
Total Cost
Comprise of total fixed cost and total
variable cost. Total cost per animal per day was
Rs. 148.22, 121.59, 103.63 & 92.38 by farm size
I, II, III and IV, respectively. Fixed cost per
animal per day was Rs. 22.24, 23.17, 22.16 &
25.71 and variable cost was Rs. 125.98, 98.42,
81.47 & 66.67 by the farm size I, II, III and IV,
respectively.
25
Economics of Livestock Production
L&DDD
TC
Farmer Group
Animals
1-5
Animals
6-10
Animals
11-20
Animals
21 &
Above
FC
EquiP&
Shed
Frequency
Depp
5
6.60
5
VC
IR
TFC
Labor
Elec
Vet Serv
2.80
13.20
22.59
92.33
4.94
9.12
1.93
18.23
29.28
39.77
15
8.11
0.23
16.21
24.55
20
10.14
0.07
20.27
30.47
TC
GF
DF
Conc
TVC
TC
2.68
85.35
29.98
0.00
215.29
237.88
2.89
0.56
71.48
27.73
0.00
142.42
171.70
29.48
2.29
1.03
66.79
20.37
0.00
119.97
144.52
19.56
1.47
0.66
39.03
20.29
74.23
155.25
185.72
Total
Table ID: F-3
GRAPH ID: TC-F
the farm size in descending order, respectively
and price per liter was Rs. 31.6, 31.4, 31.4 and
32.9 by all farm categories, respectively.
Income
Milk yield per day per animal was 10.14
liters, 6.25 liters, 7.47 liters and 7.27 liters, by all
Income
Farmer Group
Frequency
5
TFC
TVC
TC
MY
Rate
Income
Profit
6-10 Animals
5
5.00
10.00
10.00
6.25
31.40
196.25
11-20 Animals
15
15.00
30.00
30.00
7.47
31.47
234.91
33.66
-5.09
47.16
21 & Above
20
20.00
40.00
40.00
7.27
32.90
239.25
53.52
1-5 Animals
5.00
10.00
10.00
10.14
31.60
320.51
Total
Table ID: F-4
26
Economics of Livestock Production
L&DDD
GRAPH ID: Pr-F
Milk market channel was Dodhis, Shops
and sale to nearby households. Marketing was
not a problem and demand for milk was higher
as compared to supply for consumption. The
byproducts prepared in the area were raw
cheese, khoya, sweets, Dhahi and Lassi by the
end users.
Profit per animal was Rs. 33.66, -5.09,
47.16 & 53.52 respectively per day by farm type
in descending order. Least profit was observed
by the small holder, however profit increases
along as the number of animals increased.
Highest profit was observed by the commercial
farm having greater than 20 animals.
Management practices and health protection
were better by the large farmers and use of
technology to reduce the cost.
Disease and mortality
For Veterinary health cover L&DD
Department has established veterinary hospital
inside these gawala colonies. Vaccines of HS
and FMD were generally performed in routine
and there were general awareness among the
farmers. Deworming was also carried out on
almost all the farms.
5. Peri-Urban Punjab (Lahore area)
Milk Production
In Lahore the 80% herd were Buffalo
and 20% Cross Bred Cattle. Body weight of
cross bred cattle was little low but production
was equal to buffalo. So cows was taken as
equal unit
In Lahore, three milch colonies were
Thokar Niaz Baig, Sagian Shahdra and
Harbanspura. They were surveyed to collect the
relevant data. For calculation of income from
milk total milk production, milk fed to calves and
milk marketed was apportioned. Home
consumption milk was also inducted in the
income stream of the animals.
Fixed Cost: Sample size was 40
respondents. For Lahore the fixed cost per
animal per day was calculated. The depreciation
of animal was Rs. 9.7, 8.4, 8.51 and 11.09 per
animals per day for the farm size group of 1-5
animal, 6-10 animals, 11-20 animals and 21 and
above animals respectively. Depreciation of
sheds and equipment was Rs. 2.39, 0.98, 1.72,
1.44 per animal per day by the farm size in the
descending order, respectively. Interest on the
27
Economics of Livestock Production
L&DDD
value of animal per day was Rs. 19.41, 16.82,
17.02 and 22.18, respectively,
Milking Units 523
Total Units 927
FC
Animals
Frequency
Depp.
EquiP&Shed
IR
TFC
1-5 Animals
3
9.70
2.39
19.41
31.50
6-10 Animals
4
8.41
0.98
16.82
26.21
11-20 Animals
12
8.51
1.72
17.02
27.25
21 & Above
21
11.09
1.44
22.18
34.71
Total
40
Table ID: L-1
GRAPH ID: FC-L
Variable Cost
The total variable cost comprises of
aggregation of costs for electricity, Vet Services,
Labor, Green Fodder, Dry Fodder and
Concentrates. Green Fodder and Dry Fodder is
fed to all animals but concentrate diet is only fed
to milking animals.
Variable cost per day per animal
for electricity was 2.4, 2.3, 1.9 & 1.5 for “1-5
animals”, “6-10 Animals”, “11-20 Animals” & “21
& above Animals” .Similarly, Vet Services counts
for 1.46, 1.11, 0.87 & 0.81 respectively. Labor
costs 33.92, 24.96, 23.12 & 18.82 respectively.
Similarly, Green Fodder, Dry Fodder &
Concentrates count for “89.01 44.05 31.04”
,” 108.92 31.43
38.18”
,
“70.96
20.3530.54” & “65.29
18.28
25.05”
respectively for 1-5 Animals”, “6-10 Animals”,
“11-20 Animals” & “21 & above Animals”
28
Economics of Livestock Production
L&DDD
VC
Animals
1-5
Animals
6-10
Animals
11-20
Animals
21 &
Above
Frequency
Total
Labor
Elec
Vet serv
GF
DF
Conc
TVC
3
65.69
2.39
1.37
89.01
44.05
31.04
233.55
4
33.23
2.27
1.11
108.92
31.43
38.18
215.13
12
33.39
1.89
0.87
70.96
20.35
30.54
158.01
21
19.38
1.52
0.71
65.29
18.28
25.05
130.23
40
Table ID: L-2
GRAPH ID: VC-L
Total Cost:
Comprise of total fixed cost and total
variable cost. Total cost per animal per day was
Rs. 265.05, 241.33, 185.26 & 165.95 by farm
size I, II, III and IV, respectively.
FC
Farmer Group
Animals
1-5
Animals
6-10
Animals
11-20
Animals
21 &
Above
Total
Fixed cost per animal per day was Rs.
31.5, 26.21, 27.25 & 34.71 and variable cost
was Rs. 233.55, 215.13, 158.01 & 130.23 by the
farm size I, II, III and IV, respectively.
VC
Frequency
Depp.
EquiP&Shed
3
9.70
4
Vet
serv
IR
TFC
Labor
Elec
2.39
19.41
31.50
65.69
2.39
1.37
8.41
0.98
16.82
26.21
33.23
2.27
12
8.51
1.72
17.02
27.25
33.39
21
11.09
1.44
22.18
34.71
19.38
GF
TC
DF
Conc
TVC
TC
89.01
44.05
31.04
233.55
265.05
1.11
108.92
31.43
38.18
215.13
241.33
1.89
0.87
70.96
20.35
30.54
158.01
185.26
1.52
0.71
65.29
18.28
25.05
130.23
164.95
40
Table ID: L-3
29
Economics of Livestock Production
L&DDD
GRAPH ID: TC-L
Income
Milk yield per day per animal was 8.0 liters, 8.27 liters, 6.67 liters and 8.68 liters, by all the farm
size in descending order, respectively and price per liter was Rs. 36.67, 33.75, 37.08 and 37.11 by all
farm categories, respectively.
Farmer Group
Animals
Frequency
FC
VC
TFC
TVC
TC
TC
Income
MY
Rate
Income
Profit
1-5 Animals
6-10 Animals
11-20 Animals
3
4
12
3.00
4.00
12.00
6.00
8.00
24.00
6.00
8.00
24.00
8.00
8.27
6.67
36.67
33.75
37.08
293.33
279.20
247.22
28.28
37.87
61.97
21 & Above
21
21.00
42.00
42.00
8.68
37.10
322.14
157.19
Total
40
Table ID: L-4
GRAPH ID: Pr-L
30
Economics of Livestock Production
L&DDD
Milk market channel was Dodhis, Shops
and sale to nearby households. Marketing was
not a problem and demand for milk was higher
as compared to supply for consumption. The
byproducts prepared in the area was raw
cheese, khoya, sweets, Dhahi and Lassi by the
end users.
Profit per animal was Rs. 28.28, 37.87,
61.97 & 157.19 respectively per day by farm
type in descending order. Least profit
was observed by the small holder, however
profit increases along as the number of animals
increased. Highest profit was observed by the
commercial farm having greater than 20 animals
due to economies of scale. Management
practices and health protection were better by
the large farmers and use of technology to
reduce the cost.
6. Gujranwala District (Northern irrigated Punjab)
Milk Production
Gujranwala is an agriculture district of
almost small and landless holdings, highly
populated with organized villages. Four union
councils were selected: Noshera virkan, Tehsil
Noshera, Sohdra in Tehsil wazirabad, and Union
council Narang in Tehsil Kamonkey. Farmers
were put in groups of 1-5 animals, 6-10 animals,
11-20 and 21 and above animal.
As the farm size increases, the profit per
animal also increases due to the economy of
scales & superior genetics of animals.
Commercial farmer received RS 182.2 per day
as profit by selling most of the milk to the
household & tea-shops. Consumer of industrial
area of Gujranwala has good purchasing power.
In Gujranwala, concentrate feed being
used was cotton seed cake, rape seed cake,
wheat bran and dry bread. Supply system from
farm to the market was a network of wanda
shops along the road bus stops , big villages,
towns and cities. These shops also supply
fodder, seed, fertilizers and other agri inputs to
the local farmers.
For calculation of income from milk total
milk production, milk fed to calves and milk
marketed was apportioned. Home consumption
milk was also included in the income stream of
the animals. Following was the cost structure…
Fixed Cost
Sample size was 90 respondents. For
Gujranwala the fixed cost per animal per day
was calculated. The depreciation of animal was
Rs. 6.7, 7.2, 7.0 and 8.4 per animals per day for
the farm size group of 1-5 animal, 6-10 animals,
11-20 animals and 21 and above animals
respectively.
Depreciation of sheds and equipment
was Rs. 2.1, 1.5, 1.2, 0.7 per animal per day by
the farm size in the descending order,
respectively. Interest on the value of animal per
day was Rs. 13.4, 14.5, 14 and 16.7,
respectively.
Milking Units= 436
Total Units =
1075
Animals
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Total
Frequency
6
9
12
18
45
FC
Depp
Equip & Shed
6.70
2.14
7.24
1.46
7.00
1.16
8.35
0.65
IR
13.40
14.47
14.00
16.71
TFC
22.24
23.17
22.16
25.71
Table ID:G-1
31
Economics of Livestock Production
L&DDD
GRAPH_ID: FC-G
Variable Cost
Animals”, “6-10 Animals”, “11-20 Animals” &
“21 & above Animals” . Similarly, Vet Services
count for 1.16, 1.00, 0.83 & 0.63 respectively.
Labor costs 33.92, 24.96, 23.12 & 18.82
respectively. Similarly, Green Fodder, Dry
Fodder & Concentrates count for Rs “33.92
16.02 37.48”,” 24.96, 17.72, 27.83”, “23.12,
9.37, 23.17”, “18.82, 6.91, 18.90” respectively
The total variable cost comprises of
aggregation of costs for electricity, Vet
Services, Labor, Green Fodder, Dry Fodder
and Concentrates. Green Fodder and Dry
Fodder is fed to all animals but concentrate
diet is only fed to milking animals.
Variable cost per day per animal for
electricity was 3.47, 1.95, 1.86 & 2.61 for “1-5
for 1-5 Animals”, “6-10 Animals”, “11-20
Animals”
&
“21
&
above
Animals
”VC
Animals
Electr
Vet Serv
11-20 Animals
6
9
12
3.47
1.95
1.86
1.16
1.00
0.83
33.92
24.96
23.12
33.92
24.96
23.12
16.02
17.72
9.37
0.00
0.00
0.00
88.50
70.59
58.30
21 & Above
18
2.61
0.63
18.82
18.82
6.91
0.00
47.78
Total
45
1-5 Animals
6-10 Animals
Frequency
Labor
GF
DF
Concen
TVC
Table ID:G-2
GRAPH_ID: VC-G
32
Economics of Livestock Production
L&DDD
Total Cost
Comprise of total fixed cost and total
variable cost. Total cost per animal per day was
Rs. 148.22, 121.59, 103.63 & 92.38 by farm size
I, II, III and IV, respectively. Fixed cost per
Farmer Group
Animals
1-5
Animals
6-10
Animals
11-20
Animals
21 &
Above
Total
stock
Depp
6
6.70
9
FC
Equip &
Shed
animal per day was Rs. 22.24, 23.17, 22.16 &
25.71 and variable cost was Rs. 125.98, 98.42,
81.47 & 66.67 by the farm size I, II, III and IV,
respectively.
VC
Vet
Serv
IR
TFC
Electr
2.14
13.40
22.24
3.47
1.16
7.24
1.46
14.47
23.17
1.95
12
7.00
1.16
14.00
22.16
18
8.35
0.65
16.71
25.71
Labor
TC
GF
DF
33.92
33.92
16.02
1.00
24.96
24.96
1.86
0.83
23.12
2.61
0.63
18.82
Concen
TVC
TC
37.48
125.98
148.22
17.72
27.83
98.42
121.59
23.12
9.37
23.17
81.47
103.63
18.82
6.91
18.90
66.67
92.38
45
Table ID:G-3
GRAPH_ID: TC-G
Income
Milk yield per day per animal was 5.3
liters, 5.5 liters, 6.7 liters and 8.9 liters, by all
the farm size in descending order, respectively
and price per liter was Rs. 32.30, 31.50, 30.60
and
30.80
by
all
farm
categories,
respectively.(Ref: Table ID:)
Milk market channel was Dodhis,
Shops and sale to nearby households.
Marketing was not a problem and demand for
milk was higher as compared to supply for
consumption. The byproducts prepared in the
area were raw cheese, khoya, sweets, Dhahi
and Lassi by the end users.
33
Economics of Livestock Production
L&DDD
number of animals increased. Highest profit
observed by the commercial farm having
greater than 20 animals. Management
practices and health protection were better by
the large farmers and use of technology to
reduce the cost.
Profit per animal was Rs. 21.35,
51.51, 100.63 & 182.21 respectively per day
by farm type in descending order. Least profit
was observed by the small holder, which is
due to including highest family labor in variable
cost. However profit increases along as the
Farmer Group
Frequency
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
6
9
12
18
Total
45
TFC
6.00
9.00
12.00
18.00
TVC
TC
125.98
98.42
81.47
66.67
M.Y.
148.22
121.59
103.63
92.38
Rate
5.25
5.50
6.67
8.92
32.28
31.50
30.61
30.79
Income
169.57
173.10
204.26
274.59
PROFIT
21.35
51.51
100.63
182.21
Table ID:G-4
GRAPH_ID: PR-G
34
Economics of Livestock Production
L&DDD
Comparison between Various Zones of Punjab
This Section of the report will comprise..
A.
B.
C.
D.
E.
F.
Fixed Cost Comparison
Variable Cost Comparison
Total Cost Comparison
Milk Yield & Rate Comparison
Income & Profitability Comparison &
Comparison at a glance!
The Fixed cost comparison is further
subdivided into various Fixed Cost Constituents
including Depreciation of Animals (Per Animal
per day), Depreciation of Equipment & Sheds
(Per Animal per day) & Interest Rate (Per Animal
per day). A comprehensive Fixed Cost
comparison will be given at the end of this
comparison. This presentation includes the
tabular as well as graphical data.
The Variable cost comparison is further
subdivided
into
various
Variable
Cost
Constituents including Labor (Per Animal per
day), Electricity (Per Animal per day), Green
Fodder (Per Animal per day), Dry Fodder (Per
Animal per day), Concentrates (Per Animal per
day) & finally Vet Services (Per Animal per day).
A comprehensive Variable Cost comparison will
be given at the end of this comparison.
Additionally, a comparison for profit is
presented. Furthermore, Milk Yield & Rate
Comparison, Income & Profitability Comparison
are given to have a better understanding of the
various ecological zones. “Comparison at a
glance !”, at the end compares per animal per
day fixed cost, variable cost, total cost, milk yield
& rate, income & profitability.
35
Economics of Livestock Production
L&DDD
A.Fixed Cost Comparison
Fixed Cost Constituents
1. Depreciation of Animals (Per Animal per day)
2. Depreciation of Equipment & Sheds (Per Animal per day)
3. Interest Rate (Per Animal per day)
1. Depreciation of Animals (Per Animal per day)
GRAPH_ID: DepPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
4.4
6.3
6.5
6.6
9.7
6.7
6-10 Animals
4.7
5.7
6.1
9.1
8.4
7.2
11-20 Animals
4.8
6.4
6.1
8.1
8.5
7.0
21 & Above
5.6
7.0
6.4
10.1
11.1
8.4
TABLE_ID: DepPA-Com
36
Economics of Livestock Production
L&DDD
2. Depreciation of Equipment & Sheds (Per Animal per day)
GRAPH ID: S&EqPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
1.37
1.08
17.64
2.80
2.39
2.14
6-10 Animals
0.84
0.63
18.76
1.93
0.98
1.46
11-20 Animals
0.57
0.61
19.36
0.23
1.72
1.16
21 & Above
1.05
1.20
22.36
0.07
1.44
0.65
TABLE ID: S&EqPA-Com
3. Interest Rate (Per Animal per day)
GRAPH ID: IRPA-Com
37
Economics of Livestock Production
Farmer Group
L&DDD
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
8.8
12.5
2.1
13.2
19.4
13.4
6-10 Animals
9.4
11.5
1.6
18.2
16.8
14.5
11-20 Animals
9.7
12.8
1.5
16.2
17.0
14.0
11.2
13.9
1.3
20.3
22.2
16.7
21 & Above
TABLE ID: IRPA-Com
Total Fixed Cost
GRAPH_ID: TFCPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
14.6
19.9
21.5
22.6
31.5
22.2
6-10 Animals
14.9
17.9
19.9
29.3
26.2
23.2
11-20 Animals
15.1
19.9
19.8
24.6
27.3
22.2
21 & Above
17.8
22.1
20.3
30.5
34.7
25.7
TABLE_ID: TFCPA-Com
38
Economics of Livestock Production
L&DDD
B. Variable Cost Comparison
Variable Cost Constituents
1. Labor (Per Animal per day)
2. Electricity (Per Animal per day)
3. Green Fodder (Per Animal per day)
4. Dry Fodder (Per Animal per day)
5. Concentrates (Per Animal per day)
6. Vet Services (Per Animal per day)
1. Labor (Per Animal per day)
GRAPH_ID: LaPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
38
38
46
92
66
34
6-10 Animals
22
22
32
40
33
25
11-20 Animals
14
18
25
29
33
23
21 & Above
16
12
12
20
19
19
TABLE_ID: LaPA-Com
39
Economics of Livestock Production
L&DDD
2. Electricity (Per Animal per day)
GRAPH_ID: ElPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
3.2
1.7
2.0
4.9
2.4
3.5
6-10 Animals
1.4
3.7
1.4
2.9
2.3
2.0
11-20 Animals
1.2
1.0
1.0
2.3
1.9
1.9
21 & Above
1.2
1.1
0.9
1.5
1.5
2.6
TABLE_ID: ElPA-Com
3. Green Fodder (Per Animal per day)
GRAPH_ID: GFPA-Com
40
Economics of Livestock Production
Farmer Group
L&DDD
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
48
33
39
85
89
34
6-10 Animals
36
26
29
71
109
25
11-20 Animals
27
26
25
67
71
23
21 & Above
22
24
11
39
65
19
TABLE_ID: GFPA-Com
4. Dry Fodder (Per Animal per day)
GRAPH_ID: DFPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
7.73
9.06
11.69
29.98
44.05
16.02
6-10 Animals
6.04
8.54
10.13
27.73
31.43
17.72
11-20 Animals
4.46
8.70
8.83
20.37
20.35
9.37
21 & Above
4.91
10.20
23.68
20.29
18.28
6.91
TABLE_ID: DFPA-Com
41
Economics of Livestock Production
L&DDD
5. Concentrates (Per Animal per day)
GRAPH_ID: CoPA-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
3
16
25
49
31
37
6-10 Animals
4
13
13
30
38
28
11-20 Animals
3
16
11
43
31
23
21 & Above
6
22
24
74
25
19
GRAPH_ID: Com
6. Vet Services
GRAPH_ID: VSPA- Com
42
Economics of Livestock Production
Farmer Group
L&DDD
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
0.6
1.0
1.1
2.7
1.4
1.2
6-10 Animals
0.6
0.8
1.3
0.6
1.1
1.0
11-20 Animals
0.4
0.4
1.0
1.0
0.9
0.8
21 & Above
0.3
0.4
0.1
0.7
0.7
0.6
GRAPH_ID: VSPA- Com
Total Variable Cost
GRAPH_ID: TVCPA- Com
Farmer Group
1-5 Animals
6-10 Animals
11-20 Animals
21 & Above
Bhakkar
100
71
50
50
Pakpattan
98
74
70
70
Jhelum
125
87
72
72
Faisalabad
264
172
163
155
Lahore
234
215
158
130
Gujranwala
126
98
81
67
GRAPH_ID: TVCPA- Com
43
Economics of Livestock Production
L&DDD
C. Total Cost Comparison
GRAPH_ID: TCPA- Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
115
118
146
287
265
148
6-10 Animals
86
92
106
201
241
122
11-20 Animals
65
90
92
188
185
104
21 & Above
68
92
92
186
165
92
GRAPH_ID: TCPA- Com
D. Milk Yield & Rate Comparison
GRAPH_ID: MYPA- Com
44
Economics of Livestock Production
Farmer Group
L&DDD
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
4.1
4.5
6.0
10.1
8.0
5.3
6-10 Animals
4.2
4.4
6.0
6.3
8.3
5.5
11-20 Animals
3.6
4.4
4.8
7.5
6.7
6.7
21 & Above
4.3
4.7
5.5
7.3
8.7
8.9
TABLE ID: MYPA-Com
GRAPH_ID: MPPL-Com
Farmer Group
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
22
24
28
32
37
32
6-10 Animals
21
23
28
31
34
32
11-20 Animals
22
24
27
31
37
31
21 & Above
22
23
27
33
37
31
TABLE ID: MPPL-Com
E. Income & Profitability Comparison
GRAPH_ID: IPA- Com
45
Economics of Livestock Production
Farmer Group
Bhakkar
L&DDD
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
1-5 Animals
91
106
166
321
293
170
6-10 Animals
89
102
166
196
279
173
11-20 Animals
79
104
128
235
247
204
21 & Above
93
108
151
239
322
275
TABLE ID: IPA-Com
GRAPH_ID: PPA- Com
Farmer Group
1-5 Animals
Bhakkar
Pakpattan
Jhelum
Faisalabad
Lahore
Gujranwala
-23
-12
19
34
28
21
6-10 Animals
4
10
59
-5
38
52
11-20 Animals
14
15
36
47
62
101
21 & Above
25
16
59
54
157
182
TABLE ID: PPA-Com
46
Economics of Livestock Production
F.
L&DDD
Comparison, at a glance:
GRAPH_ID: CAAG
47
Economics of Livestock Production
L&DDD
Milk & Meat Marketing Systems in Punjab
Milk processing and marketing
In Punjab only 3-4 per cent of the total milk is
processed and marketed through formal
channels whereas the remaining 97 per cent of
the milk reaches end users for immediate
consumption through an extensive, multi-layered
distribution system of middlemen. However the
processed milk consumption is growing at the
rate of 20 per cent per year. Pasteurized and
UHT milk in tetra packs are very popular
products (PISDA-USAID, 2006). Most milk
shops
and
bakeries
across
Pakistan
manufacture and sell traditional dairy products
like Dhahi (yoghurt) and khoya (sweet
condensed milk).
Large dairy shops also produce desi ghee and
butter. Processing plants have also introduced a
number of dairy products like yoghurt, drinking
yoghurt, flavored milk, cream, butter, ghee,
cheese and ice cream. However, the quantities
sold are small except for yoghurt and butter.
Industrial processing units have also been set up
in addition to the traditional traders of
sweetmeats, milk, yoghurt, ghee and other dairy
products.
Most
processing
capacity
is
concentrated near larger markets and away from
potential sources of milk. More than 53 modern
milk processing facilities were established before
1974. By 1974 less than half were operating
after the introduction of the first UHT, long-life
milk plant came into operation.
Livestock farming is an integral part of rural
economy of Pakistan. Despite the laissez faire
type of public approach for the development of
this sector, it has grown at impressive rate.
Presently, this sector is sharing almost 50% to
the total value addition in agriculture sector and
almost 11% of national GDP. Only the milk
produced has value higher than the combined
value of wheat and cotton. National Commission
on Agriculture clearly emphasized that “one of
the main reasons for the lack of development in
the livestock sub-sector is the exceeding
defective system of marketing of livestock and
livestock products”. Realizing the importance of
the issue, a nationwide study was carried out,
with the assistance of FAO Pakistan, to
investigate the marketing of live animals and
their products in the country. Besides marketing
of live animals, the selling system of different
livestock products like milk, meat, wool, hides
and skins were investigated.
It was found that majority of the animals
brought for sale in livestock markets were low
milk yielding and have poor body score. The
livestock markets lack even basic facilities while
local governments collect a handsome amount
of revenues from these markets. Beoparies or
traders are the major players in these markets
while the farmers, as sellers and buyers, have
relatively little information about competitive
prices of the animals
.
In milk marketing, dhodies or milkmen
are the only dominant intermediary. Consumers,
shopkeepers, veterinarians and researchers
report a number of adulterations and
contaminations in the milk supplied by dhodies.
The competitive milk marketing in the
pasteurized and UHT forms is at highly limited
scale and UHT milk prices are almost double
than the loose fresh milk supplied by dhodies.
In meat marketing, the abattoirs are the
production points and butchers’ shops are the
only vending points to the consumers. The
abattoirs are seriously lacking basic sanitation
facilities (like light, adequate water supply, space
for slaughtering and animal keeping, meat
refrigeration, and disposal of offal) all over the
country. A large portion of the by-products such
as blood, glands, intestines, and bones are
either wasted or poorly processed. The hygienic
conditions of the slaughterhouses and meat
shops are very poor. One of the underlying
reasons is that these facilities were not
periodically updated because of complex
administratively procedures involved. The flayers
and butchers are also not professionally trained.
The fixing the prices of beef and mutton by local
governments are serious obstacles in buying
good quality animals for slaughtering.
Due to poor flaying, lot of damages
occurred to hides and skins right at the
production points. The collection and disposal of
these hides and skins is a lengthy process and
proper care is not given to these useful products
on their way from production point till it reaches
48
Economics of Livestock Production
the tanneries. In town or city markets, the hides
and skins business is in the hands of
commission agents or “arthies”. The price is
mostly dictated by the beopari who decides the
price on the basis of weight and cleanliness and
they have the updated price information.
In case of wool, due to clipping with
scissors, the quality is damaged right at the
production point. The local wool collector mixes
fleece of different flock into one consignment
and in this way he adds some dirt to increase
the weight. No quality control measures are
practiced during wool marketing. Virtually all
livestock and livestock products provide
L&DDD
relatively a meager rate of return compared to
the investment. This is true at each stage of
largely traditional marketing systems.
Creation of a Livestock Marketing
Regulatory Authority is recommended to ensure
good governance in marketing of livestock and
livestock products, Practicing of SPS measures
in production and marketing of milk and meat
marketing & Provision of milk pasteurization and
chilling facilities in deep rural areas, and
hides/skins processing facilities in Rain fed and
Barani areas is the solution to the problems of
livestock.
Beef & Mutton production
Beef Production System:
Most of the meat production was
conventional based on grazing with very poor
management and veterinary facilities. Male
calves after weaning at the age of 8 months are
usually slaughter and their body weight is less
than 100 kg with lean body.
Animals used for fattening were Dhanni,
non descript with Sahiwal Blood purchased from
local market Jehlum. Fodder was scare in the
areas animals were also grazed for 5 to 8 hours
and fed in the evening hours. Water was
available for drinking by the government water
supply scheme. Animal were offered 2 kg
concentrate ration per day. Profit per animal was
the 5328, by small holding Rs. 4894 for by the
large form respectively.
Small farm was fattened for 90 days &
large form for 113 day. Growth was poor as
breed used were of low per day growth gain.
Sacrificial occasion market was the only factor of
success.
look ways and means for economical livestock
production to feed the growing human
population.
Beef is used as a major source of animal
protein in the world (FAO, 1998) with per capita
availability varying from few kilograms to few
hundred kilograms. The 1.60 million tons beef
produced in Pakistan every year comes mainly
from buffalo (65%) while the rest of it is shared
by cattle. Yet, per capita availability of beef in
the country is less than 8 kg (Anonymous, 1998)
with mutton sharing equally. Masses, therefore,
do not get the minimum required animal
proteins. Beef produced in the country is a byproduct of dairy industry. Research efforts have
been made in the past to produce beef through
crossbreeding of local cows with exotic semen
and through fattening of cows and buffaloes.
This review discusses various scenarios for beef
production in the country and evaluates work
done in the past to get a true picture for planning
future beef production in Pakistan.
GLOBAL SCENARIO
There are probably few people who
keep animals merely as a hobby. Farmers keep
cattle and buffalo to earn livelihood and make
profit. Agriculture business or livestock keeping
has thus emerged as an industry from a merely
sustainable mode of production. With the rising
competition for use of natural resources, it has
become imperative to use these resources
judiciously and efficiently. This trend in
production in all businesses the world over has
put an equal pressure on the animal scientists to
World beef breeds. There are more
than 100 beef breeds in the world. But no single
breed of cattle can be claimed to excel all others
in all aspects of beef production under all
conditions; all breeds have strong and weak
points and hereditary variation exists in all
breeds. Although, the available resources,
production
system,
and
environmental
conditions may determine which breed to
choose, selection of a particular breed is usually
49
a matter of personal choice (Ensminger, 1987).
The 57 breeds found in U.S. have been grouped
into full bred (8), purebred (31), man-made (18)
and a dozen others (Walker, 1989). Most of
these breeds are owned by breed associations
that act as a backbone of the beef industry. They
not only add glamour to the industry, especially
through shows but also with their programs
create a `belonging feeling' for the cattlemen.
Comparative rating of economic traits of 59 beef
breeds of cattle has been described by
Ensminger (1987). Surprisingly though, most of
the beef produced in the world does not come
from beef breeds. In the U.K., for example,
about 1/3 of total beef production is derived from
the beef herds while 2/3 from the dairy herd (cull
cows, pure bred and crossbred calves) (Baker,
1983).Similar trend is observed in Pakistan
Basic principle of beef production.
The most important biological principal of beef
production is that the animals should gain in
weight so that it reaches a live weight suitable
for slaughter within a reasonable period of time.
Thus nutrient intake must exceed requirements
for maintenance of body weight (Wilkinson,
1985). Beef can be produced with little or no
grain with improved forage management, thus
making beef production more competitive and
profitable (Thomas, 1986). Beef production in
most of the United States and elsewhere in the
world is mainly dependent on forages, except
during finishing stage of the animals. It is
estimated that 85.7% of the total feed for beef
cattle, in United States, is derived from
roughages. Green and cured fodder can supply
all the nutrients required for the beef cattle,
except common salt and whatever energy rich
feeds may be necessary for additional
conditioning (Ensmmger et al., 1990).
CURRENT BEEF PRODUCTION SITUATION
IN PUNJAB
Beef production through cross
breeding. In Pakistan, cattle and buffalo are
mainly maintained for milk production and to
some extent for draught purpose. There are
neither specific breeds of cattle or buffaloes nor
any specific rearing system for beef production.
Efforts have been made to develop a breed for
beef purpose. The first effort was made by
crossing Charolais with local cows (Sahiwal,
Dajal and Thari). The average birth weight of
Charolais crosses (25 kg) was lower than buffalo
(32.7 kg). The average live weight at 6 and 15
months of age was higher in buffalo calves than
in cross-breds (190 and 326 vs 172.5 and 311
kg, respectively) However, Charolais crosses
had higher live weight (293 kg) than buffalo
calves (277 kg) at the age of 12 months (Usmani
et al., 1979).
In
another
attempt,
Australian
Droughtmaster of Australia was crossed with
Bhagnari. The plan started in 1969 at Beef
Production Research Centre, Sibi, and
Baluchistan. The animals in the third cross
(62.5% Droughtmaster, 37.5% Bhagnari) were
named as 'Narimaster'. The mature weight of
Bhagnari males and females is 545 and 341 kg,
respectively (Bhutto et al., 1993). The birth and
weaning weights and pre-weaning daily growth
rates
of
Bhagnari,
Droughtmaster
and
Narimaster are 23, 27.5, 26 kg; 106, 113, 119 kg
and 0.39, 0.42, 0.45 kg, respectively (Bashir et
al., 1998). These birth weights are not
comparable with the birth weights (34-44 kg) of
crosses of famous beef breeds of cattle in
temperate zones (Thomas, 1986). The
performance of other economic traits (weaning
weight and daily growth rate) of Droughtmaster
in this herd is also not comparable to the
standards of any beef breed, therefore,
continuation of this programme has not been
justified (Khan, 1996).
The latest effort in beef production is
being made by crossing Simmental with the local
cattle population under a project named "Beef
Production through Cattle Cross Breeding" at
LPRI,
Bahadurnagar,
Okara
(personal
communication). The objectives and the
approach of the project, however, does not
seem to be rooted in lessons of Droughtmaster
and Charolais crossbreeding.
Buffalo as a beef animal. Male buffalo
calves grow at an average rate of 0.52 kg/day
purely on forage based diet such as Sadhabahar
(Tahir & Rehman, 1987) The average initial body
weight of the animals in this study was 190 kg.
In studies conducted at LPRI, Bahadumagar
(Pasha & Tahir, 1985; Pasha, 1987; Jabbar &
Iqbal, 1993; Jabbar et al., 1993) it has been
reported that daily growth rate of male buffalo
calves from 0.78 to 1.01 kg having initial body
50
weight between 116 to 188 kg. In another study
(Pasha, 1986), the average growth rate of male
buffalo calves ranged between 0.43 to 0.7
kg/day. The average initial live weight of animals
in all these groups was 142 and they were
raised on diets containing wheat straw, rice husk
or maize cobs. Information is not available on
the energy consumption of the animals in this
study. However, from the data presented in the
aforementioned studies, it seems that the
difference in growth rate was due to the
difference in the energy intake and initial body
weight of the animals. Basra et al. (1992)
studied the growth response in buffalo male
calves fed different levels of protein and energy.
Calves ranged in age from 6 to 9 months (Av.
weight 110 kg). Highest daily weight gain (728
g/d) was observed in calves fed low protein-high
energy ration. The lowest growth rate (549 g/d)
was in calves fed medium protein-high energy
ration.
In a fattening trial of old bullock
(Anonymous, 1963) done under the Directorate
of Livestock Farms at College of Veterinary
Sciences, Lahore, a maximum of 1.1 kg daily
weight gain was recorded. Whether the gain in
weight was due to fat deposition or lean meat in
the body is not clear but it is assumed that
mostly it should be due to fat deposition because
at the old age this much growth rate in lean meat
is not possible. In later studies on old bullocks
(Barque et al., 1980) weight gain of 0.8 kg has
been reported with dressing percentage similar
to buffalo male calves.
Buffalo vs cattle as beef animal. Comparative
Performance of buffalo male calves and
pure and crossbred cattle calves has extensively
been reported. Asrar (1986) reported that
buffalo, Sahiwal and crossbred (Friesian x
Sahiwal) male calves of 12-14 months of age
had weight gain 0.91, 0.94 and 0.97 kg/day,
respectively on a diet having 10.2% CP and 60%
TDN. The average initial body weight in these
calves was 180 kg. Dry matter digestibility and
dressing percentage was slightly better in
crossbred calves. Pasha (1988a) compared the
fattening potential of Sahiwal calves and buffalo
calves on a ration with 13.3 CP and 53% TDN.
The average initial body weight of animals was
200 kg and they were fed ad libitum. The
average growth rate of Sahiwal cow calves (.841
kg/day) was less than buffalo calves (0.970
kg/day). Similar trend in growth rate of Sahiwal
cow and buffalo (0.715 vs 0.765 kg/day and
0.796 vs 0.840 kg/day in cow and buffalo,
respectively) was reported in other studies
(Pasha, 1998b; Ahmad et al., 1995). However,
Basra (1992) reported an opposite trend in the
growth rate of male calves of Sahiwal, crossbred cows and buffaloes at the age of 12-15
months. The concentrate ration had 11.12% CP
and 61.75% TDN. Daily growth rate was the
highest (839-869 g) in cross-bred followed by
Sahiwal cow (795-805 g) and buffaloes (751-781
g). The FCR was 9.9-10.6, 9.5-9.8 and 10.6-10.9
in male calves of Sahiwal and cross-bred cows
and buffaloes, respectively. Similar trend in the
growth rate of cows and buffaloes has been
reported by Mohsin et al., (1995). Varying the
level of fiber and concentrate in their diets, cow
calves had higher growth rate than buffalo
calves (0.769 vs 0.566 and 0.666 vs 0.448
kg/day in cow and buffalo calves, respectively).
Although their average initial body weight was
almost same in all the groups.
Limitations of nutritional experiments. In
most of the nutritional studies reported above,
information on the energy intake of the animals
is not available. Under these circumstances, it is
difficult to know whether the energy
requirements of the animals were met according
to any feeding standards or not. More often than
not, information on the feeding value of green
fodder offered to the animals is lacking. This
information is essential for future planning to
increase production performance of animals.
Most of the research conducted on nutritional
aspects of buffaloes has serious limitations. That
is why on international level, our research on
nutrition has been termed as "feed them and
weigh them" toward manner of utilization of
products for the animals to survive or to
determine performance in one or more traits
when energy intake will not support biological
efficiency (McDowell et al., 1995).
Stimulus for action. Sincerest efforts
are required to develop the local beef
production. The first step would be to change the
current approach in the research. Commercial
viability of the beef production enterprise has to
be established. Except in one study (Tahir &
Rehman, 1987) from among the studies
mentioned above, the animals were raised on
51
either complete diet or combination of
concentrate mix and available seasonal green
fodder. Partial or full concentrate feeding may
not be economical for beef production. In a
recent study by Jabbar et al. (1997), the animals
raised purely on green fodder had very low
growth rate (211 gram/day). This growth rate is
"unacceptable" in buffalo’s heifers without any
plausible explanation, if they were fed. Efforts
should be made to explore the possibility of
raising animals purely on the forages. The
reasons for low productivity of animals on forage
should be investigated. Why the science that
can work in other parts of the globe has failed in
this country. This is a food for thought for the
animal nutritionists in this country.
Ecological and environmental conditions
are not very dissimilar in India and Pakistan.
India has made progress in the export of buffalo
meat. Thus frozen buffalo meat is being
regularly exported from India to the Middle East
(Joshi, 1988). This is despite the fact that
Murrah buffalo has lower adult body weight (584
kg) than Nili-Ravi (647 kg)(McDowell et al.,
1995). Studies in Egypt have also shown
prospects for meat production in Egyptian
buffaloes. Average daily gain in Egyptian
buffaloes from live weights of 120 to 450 kg
ranges between 500 to 1000 grams per day on
low to high energy diets (Graziani, 1988) despite
that their mature body weight is 121 kg less than
Nili- Ravi buffaloes (McDowell et al., 1995). This
also provides a stimulus for action to the
Pakistani scientists in this field.
VARIOUS
ALTERNATIVES
PRODUCTION IN PAKISTAN
FOR
BEEF
1. Produce beef domestically
The beef produced from the available cattle and
buffalo population is as a by-product because
these species have traditionally not been raised
for producing beef. The main purpose has been
the generation of draught power and production
of milk. Animals are slaughtered to fetch beef if
they are surplus and do not perform well for the
main objectives. There is tremendous scope of
improvement in this option because fattening the
surplus has been suggested in the past (Barque
et al., 1980; Gilani, 1980) and most of the
research efforts have been concentrated in this
direction as evident from the studies reviewed in
the preceding sections.
a. From improved genetic potentials of
buffaloes and cattle. There is no buffalo beef
breed in the world and so the only choice for
improving buffalo to produce more beef is to
select buffaloes for beef generation after
generation. Selection for early maturity and
better milk production is likely to improve growth
because of positive genetic association between
growth and maturity and milk production. Direct
selection for beef is also possible but would
reduce the rate of gain in milk production.
Surprisingly though, unintentional selection of
buffaloes for higher body size is going on
especially on male side. At cattle/buffalo shows
male are credited for huge size. The option of
selecting buffaloes for meat has been suggested
(Cady et al., 1983) but requires extreme care
(Khan, 1986) and cannot be suggested under
the prevailing circumstances.
2. Import beef breeds as pure stock
This options is less feasible because it
requires
huge
investment.
Also,
hash
environment, more diseases and poor feeding
resources compel to make this option even more
remote.
3. Import beef
This option does not seems feasible in
the presence of huge livestock population which
even if not being raised for beef can meet the
domestic demand provided efforts and
resources are diverted for improving their
growth, especially in male surplus calves of
cattle and buffalo and fattening of the old/culled
animals. Fear of dependency, introduction of
diseases (such as BSE) and limited foreign
exchange reserves also limit the scope of this
option. Import of beef currently being undertaken
by multinationals for specific purposes is hoped
to stimulate quality beef production from local
resources.
FUTURE BEEF PRODUCTION IN PAKISTAN
In the light of global scenario of beef
production vis-a vis its current situation in
Pakistan, the animal scientists have to accept a
challenge of making the beef production a
commercially viable enterprise. Only then we
can provide enough meat for the masses on
affordable prices or the country has to depend
52
on other nations for that. Summarized are some
of the possible means through which we can
achieve the goal of economical beef production
in the country.
1. Beef production from forage
The major limiting factors in the
productivity of beef cattle fed forages alone are
that they limit intake of energy, digestibility of
energy, and the efficiency of energy utilization
for animal product (Waldo & Jorgens, 1981). The
dry matter intake (DMI) and digestibility of
forages by the animals can be affected by many
factors.
ii)
2. Nutrient deficiency
An unbalanced ration may affect intake,
digestibility and performance of the animals.
Generally energy and protein get the first
consideration in balancing the rations. Minerals
are also important for promoting intake and
energy utilization in the animals. Sodium
chloride, for example, to a deficient diet may
improve intake (Habib & Siddiqui, 1994).
Deficiency of calcium causes rickets and
phosphorus deficiency results in decreased
growth rates, inefficient feed utilization and a
depraved appetite in the young animals (NRC,
1984). These minerals, therefore, must be given
special considerations in feeding beef animals
for their higher growth rates.
3. Use of growth promoters
The non-nutritive feed additives and
implants are used in the feedlot production
(NRC, 1984). The growth promoting implants
promote weight gain and feed efficiency by
repartitioning energy toward muscle growth and
away from fat deposition (Samford, 1987). Feed
additives and antibiotics may increase growth
rate
by
enhancing
nutrient
utilization
(Heinemann et al., 1978; Pendlum et al., 1978)
and/or decreasing expected weight loss due to
sickness or natural but undesirable behavioral
patterns (over eating and normal cycling by
heifers) (Samford, 1997). The implants are
preparations of sex hormones (Estradiol,
Progesterone and Testosterone) (NRC, 1984)
The non-nutritive feed additives include
monensin, lasalocid and other antibiotics. The
research is required to be conducted on the use
of these growth promoters in cow and buffalo
calves meant for meat production to give sound
recommendation to the beef producers in the
country.
4. Cross Breeding vs exploiting indigenous
resources
Crossing of native type of cattle with
improved breeds is an attractive approach as a
population average can be moved to a new
plateau for certain traits rather rapidly
(McDowell, 1983). Dairy cattle cross breeding is
underway in Pakistan and has increased
average milk production per lactation in cross
bred cows compared with their local ancestors.
Trials have also been conducted to compare the
meat production potential of crossbred calves
with local cattle and buffaloes (Asrar, 1986;
Basra, 1992). The results indicate good
prospects for meat production from crossbred
calves on the basis of their daily growth rates.
However, for a long term strategy it should be
carefully planned to achieve a goal in relation to
environmental conditions (McDowell, 1983).
Also, the susceptibility of crossbred animals to
tick and other diseases should be included in the
model to evaluate its suitability for the Pakistani
environment.
In the absence of any typical beef breed
in Pakistan, cattle and buffalo, because of their
comparable growth rate with defined beef
breeds of the world, have the potential to serve
as beef animal. The present challenge to the
animal scientists is to sincerely exploit their
potentials. This also raises another fundamental
question that do we really need to develop or
import a "Beef Breed" in the present situation
and spend a lot of time and resources on it or
simply to work with the "available livestock
resources". The answer is easy to fmd if we
compare the growth performance of `Narimaster'
with Bhagnari cattle or buffaloes. Any research
effort should thus be based on the lessons from
Charolais and Droughtmaster crossbreeding.
Haphazard attempts without objectivity are not
likely to lead us anywhere.
5. Improving beef marketing
In the order of priority the beef is likely to
remain as the third choice after poultry and
mutton among the masses in Pakistan. Majority
of the people are not quality conscious and are
53
less likely to pay higher prices for a good quality
beef or for an old spent animal's meat. Hence
there is less incentive for the farmers to produce
a quality beef. However, with Government
permission to export the beef, there is a lot of
scope for the local beef industry to develop.
It was explored that animal supply chain
was strongly linked with the village beopari/
livestock traders and butchers. Butcher usually
purchases few animals for local slaughtering
along the road side shops and bus stops.
Fre
No of
qu
animal
Breed
enc
Shops are known and healthy male
calves are slaughter for rural peoples. However
the beopari/ livestock traders supply these
animals to the near town and big city, where
local authorities have established livestock
markets.Butchure of town and city purchase
animals from these markets and slaughter their
animals in the slaughter houses in the
supervision of area Veterinary Officers.Being the
barai area livestock traders and suppliers of
Rawalpindi Sargodha Balwal, Gujranwala gujrat
and traders of Lahore Markets purchase animals
from the potohar arid Livestock
Purchase
Dep of
Dry
Concentrate
Gree
Feed
Labor/
Tota
Sale
price/animal
shed
fodd
ration
n
cost
animal
l
of
Cost
Anima
Rs
er
fodde
y
3
r
5-10
Nonde
12000-00
1.5
10.5
28.50
7.43
ls
46.43
16.60
script
4
11-20
Dhann
64.5
23000
3
10500-00
1.35
11.75
35.65
10.11
57.51
12.45
i
71.3
23300
1
Table ID: BE-1
Mutton Production System:
Sheep and goat production is one of the
major economic activities under the arid and
semi-arid condition of Pakistan. The country has
56.7 million of goat and 30.9 million of sheep.
The main purpose of raising these small
ruminants in the country is mutton production.
The small ruminants share about 40% of total
red meat produced in the country. It has been
observed that in the last many years the overall
per capita consumption of the animal food
products is increasing. Overall annual growth
rate of goat in Pakistan is 3.78% which is
highest in Asia.
Pakistan ranks third in Asia in small
ruminant population. Some famous sheep and
goat breeds which have potential for mutton
production are reported in the paper. Very
limited studies have been conducted on sheep
and goat for mutton production in Pakistan.
There is no feedlot fattening system functioning
in the country. The indicators suggest that there
are bright aspects of sheep and goat to be used
as meat animals. Due to bird flu outbreaks in the
world including Pakistan, there is strong feeling
to exploit small ruminants as alternate and/or
backup source of elite animal protein. To meet
the increasing demand of mutton locally as well
as for export, feedlot operations are required to
be introduced among the farmer community and
in the private sector in Pakistan.
Mutton Production:
Total mutton production data from
small ruminant in Asia has been presented in
table 7.
Introduction:
Small ruminants contribute largely to
the livelihoods of the livestock-keeping
households of low and medium income farmers
in the developing world. The keeping of small
ruminants is mainly concentrated in the
developing areas of the world.
54
There are three main small ruminant
production systems in various regions of the
country from unknown times. These can be
described as nomadic, transhumant and
sedentary or household. The highest sheep and
goat population (44%) is raised under nomadic
system, followed by transhumant (38%) and
sedentary (18%) as shown in table 6.
Punjab has the highest goat population
(37%) followed by Sindh (24%) Baluchistan
(23%) and NWFP (16%) as shown in table 2
whereas Baluchistan has highest sheep
population (42%) followed by Punjab (25%),
Sindh (11%) and NWFP (8%). The highest
growth rate (6.67%) per year for goat has been
observed in Sindh followed by Balochistan with a
growth rate of 5.67% per year. Whereas, the
sheep population is decreasing at a rate of
1.25% in Punjab and NWFP.
Majority of the small ruminants in
Baluchistan and NWFP are raised under
nomadic system. Nomadic flocks have no fixed
base and move constantly throughout the year.
Whereas transhumant system is more common
in Punjab and NWFP, under which about 38%
small ruminants are raised
Small Ruminants Production System:
Table : Small Ruminants Production Systems in Pakistan
Production Systems
Province
NWFP
Punjab
Sindh
Balochistan
Total
Nomadic
50
26
44
73
44
Transhumant
33
47
37
21
38
Sedentary/Household
17
27
19
6
18
Source: Ishaque, 1993
TABLE ID: SRPS-P
sedentary system is found in the cropped areas,
especially in Punjab, NWFP and Sindh.
Sedentary flocks consist of about 20-30 heads.
These are raised normally in villages. Majority of
the flocks are owned by landless families and
represent a major source of family income. Feed
resources for these animals are grazing
wasteland, crop residue / stubbles and cultivated
fodders.
Under this system flock owners have fixed base.
Transhumant flocks are generally smaller than
nomadic flocks and contain more goats (Mack
and Anjum, 1993). The grazing is done on
rangelands and on follow land.
Sheep and goats maintained under these two
systems get more than 90% of their feed from
the rangelands (Khan et al., 2000). The
Table : Mutton Production (000 tons)
Source
of 1976
1986
1996
mutton
Annual Increase%
2004
(1976-1996)
Annual Increase%
(1996-2004)
Sheep
136
225
215
2.90
224
0.4
Goat
178
309
387
5.87
496
2.8
Total
314
534
602
4.59
720
1.96
Source: Agri. Stat. 1976-77, 1986-87, 1996-97, 2003-04
TABLE ID: MPr
55
blood at different level. Goat breed was Pahari
Sheep goat flocks are reducing in the
irrigated areas .However, in the Thall & Rain-fed
Potohar area, sheep goat keeping is a good
source of income & employment for the rural
people. Goat population is greater in Rain-fed
area, and sheep production is more in Thall
area. Mix farming with sheep & goat is seen in
both mutton production areas.
Breed Beetle with red spots, Teddy & Pahari
cross & finally pure teddy.
No slaughtering of sheep/goat in rural
areas
was
observed.
However,
they
are
slaughtered in the nearby towns & cities for
The flocks are grazed after one hour of
mutton
sunrise till dawn. One shepherd can manage up
production.
Consumer
rates,
here,
normally range from Rs 220/Kg to 260/Kg.
to 100 animals. Average herd size was 47
animal ranging from 27 to 115 animals. Breed in
Housing:
Thall area was Thalli sheep & varying degrees of
No sheds were constructed in the Thall
breed impurity of blood in kajli & Lohi sheep. No
area. Barns were walled with thorny bushes &
pure specimen was seen. Goat breed Beetle-
Acacia with no roots under the trees in winter.
like, Teddy in addition to local & Teddy cross.
But in rain-fed areas, katcha houses were
constructed to fight against rain. People are
However,
In
Barani
Rain-fed
area,
never willing to invest into the improved housing
sheep breeds were Salt range, Afghan sheep
for sheep & goat.
(introduced by muhajirs/immigrants), Bulkhy with
Table: World Mutton Production (Million tons)
1996
2000
2004
2005
Sheep
Goat
sheep goat
Sheep
Goat
Sheep
Goat
World
7.02
3.09
.59
.73
8.20
4.36
8.44
4.53
Asia
2.98
2.11
.48
.67
4.29
3.24
4.50
3.41
Bangladesh
0.25
0.11
.03
.13
0.03
0.14
0.03
0.14
China
1.00
0.81
.44
.30
2.24
1.75
2.40
1.90
India
0.21
0.45
0.22
.46
0.23
0.47
0.24
0.47
Pakistan
0.15
0.28
0.16
0.31
0.16
0.36
0.17
0.37
Source: FAO, 2006
TABLE ID: WMP
Marketing:
Local market were present in both the
Thall & Barani area of Punjab, regulated
by local great authorities, owned by contractor,
who manage them day by day business of the
market. Parchi fee is @ 2% of price of the
animal.
Export of Mutton:
Keeping in view the data presented
in the tables and weight gains under the
traditional farming system, it can be concluded
that there is a great potential to bridge the yield
gap of about 200 percent which can be achieved
through balanced feeding and management
under feedlot farming system.
56
The data on the export of mutton is
given in Table 16. It clearly shows that the
demand of Pakistani mutton is increasing year
by year in the Gulf States.
Table : Export of Mutton
Year
2000-01
2001-02
2002-03
2003-04
2004-05
Production
(000 tons)
666
683
702
720
740
Export
(000 tons)
2.69
0.79
1.09
0.53
1.90
%
0.40
0.12
0.15
0.07
0.25
Source: Ministry of Food Agriculture and Livestock, 2006
TABLE ID: EOM
Mortality Losses
Survival of neonatal calves is imperative
for livestock propagation; however, a large
number of calves die during the first year of their
life causing heavy drain on the economics of
livestock production. Mortality of neonatal calves
was attributed to conditions like diarrhea and
pneumonia (Shimizu and Nagatoma., 1978).
However, environmental and managemental
factors hasten the occurrence of such conditions
(Khan and Khan, 1991).
Calf mortality was associated with the
type of housing, feeding, managemental
practices, weather conditions, external and
internal parasitic infestation and bacterial
infections especially those causing septicemia
and enteritis (Blood et al., 1994).
According to Afzal et al. the mortality in
cattle and buffalo calves ranged from 29.1% to
39.8%. Martin and Wiggins estimated that 20%
calf mortality resulted in reduction of 38% profit
of a livestock farm. Furthermore, 25% average
early calf mortality hardly provides any chance
for regular replacement of low production
animals. A minimum mortality rate of 5% is
usually acceptable to dairy farm having standard
managemental conditions. In this paper, the
existing on-farm practices of buffalo calves
rearing and mortality incidence in buffalo calves
in commercial dairy farms of Punjab province is
reported.
Mortality Loss per annum
Animals
1-5 Animals
6-10
Animals
11-20
Animals
21 & Above
Total
Gujranwala
Bhakkar
Jhelum
Pakpattan
Faisalabad
Lahore
4495.5
876.9
531.8
1463.0
6808.5
0.0
7936.0
1062.0
745.9
783.8
3826.7
4165.4
3937.5
4717.9
21086.9
1559.8
1150.7
4649.4
2381.4
419.3
4078.4
1159.0
244.3
3650.1
1131.9
506.9
12274.1
2316.7
730.5
7212.6
Table ID: ML-1
Among the dairy farms of study area
77% of the calves were usually reared to
stimulate milk let down and they were weaned at
the age of 6-12 months. In modern dairy farming
57
early weaning of calves is preferred to save milk
for marketing. In contrast the weaning age was
high in the majority of the farms of the study
area. In the presence of suckling calves it is
difficult to measure milk production of dams and
also the amount of milk consumed by a calf.
Traditionally farmers were doing little
efforts to stimulate milk letdown in buffaloes with
the help of managemental practices other than
calf suckling. Some of the farmers used
intramuscular injection of Oxytocin for milk
letdown. Only 23%of the calves were reared as
replacement herd in the farms of study area.
Graph ID:MLPA
Education Impact Factor
Pakistan is a developing country with a
lot many illiterate people. Illiteracy is the national
problem of Pakistan. Pakistan literacy rate is
nearly 54%' where a literate person is defined as
a one who can read & write one’s name. 51.7%
farmers were illiterate, 9.6% were primary,
12.8% were middle, 18.7% were metric , 3.0%
were intermediate , 2.8% were Graduates, 1.3%
were masters. The lack of awareness to various
new techniques, Govt. incentives, modern
management discoveries are the major
hindrances in bring our farmer to present
themselves as profitable livestock farmers.
Govt. of Punjab has started various
extension programs to bring about availability of
significant important information. Moreover,
extension workers from various universities are
58
busy in providing media consciousness about
common diseases & nutrition recommendations.
Zone/Level
Gujranwala Bhakkar Jehlum Pakpattan Faisalabad
Lahore
% illiterate
50.5
51.9
30.8
60.4
48.9
67.5
% primary
3.2
8.1
15.4
11.9
6.7
12.5
% middle
12.9
13.3
16.2
13.2
13.3
7.5
% metric
19.4
16.3
28.2
9.4
26.7
12.5
% intermediate
7.5
4.4
4.3
1.9
0.0
0.0
% Graduation
4.3
4.4
2.6
1.3
4.4
0.0
% masters
2.2
1.5
2.6
1.9
0.0
0.0
Table ID: EI-1
GRAPH ID: LAF
Multi
disciplinary,
extension
demonstration project on integrated resource
management (IRM) of dairy cattle and crop
production is required. Educational tool to teach
producers, extension agents and agricultural
professionals, about how to plan and implement
recommended
production
practices
into
sustainable agricultural production systems.
Program involves animal science, agronomy,
agricultural economics, agricultural engineering,
entomology and plant pathology.
59
GRAPH ID: LAF-ZW
60
Major Findings



Dairy Production is a labor-intensive
business with lot of constraints, poor yield,
poor management, lack of knowledge about
genetics balance feeding and modern
breeding. The Pakistan is rich in dairy
animals i-e 60 million large ruminants
making important share of Agriculture and
based in 70% rural population of the
country. Lack of marketing and supply
chain adulteration in dairy and meat
production is another bottleneck of
development.
This survey brings forward the valued
findings, that is improving breed, per unit
output of fodder, research in fodder quality
improvement, modern concepts of housing
and technological package of practices
communicated up to the farmers.
The proportion of small milk producers is
quite high, which help in employment
generation. Increasing the productivity of
small holder should be taken as challenge,
to keep rural urban migration balance.
vaccination deworming and feed resources.
PPR disease with high mortality of goat
was observed in Bhakkar.

In the survey area consumers have higher
demand as compared to the supply of milk.

Beef demand and supply was almost equal
and low demand for mutton was seen as
poultry meat supply chain was present up
to the villages with low prices.

Among other types of by-products, ghee,
khoya, raw cheese and sweats were
prepared.

Adulteration
&
lack
of
proper
standardization in weight and packing was
seen in cotton seed cake & rape seed cake
bags and wheat bran.
Recommendations





Anmol Wanda by the Govt. of Punjab by its
L&DD Department is a great contributor for
the farmers, it should be marketed
throughout Punjab through DLO of each
district. Similarly mineral mixture packets
prepared by Veterinary University Lahore
can be marketed through Vet Hospital and
Dispensaries.
The per unit buffaloes and cow’s milk
production is low and feed ingredients are
costly and adulterated, farmers make
addition of water and different adulterants
to increase their volume and make the
business.
There is general view that artificial
insemination is failure in buffalo and low
quality imported semen of Jersey and
Friesians is supplied by the private sector.
High mortality of calves especially buffalo,
and in small ruminant lambs and kids is
seen due to poor management, lack of
Genetic improvement:
Despite of wonderful potential of our animals (eg Nili Ravi, Sahiwal etc.) optimum genetic
capabilities can only be used by implying
modern discoveries in Selective Breeding.

Artificial Insemination
AI has got less conception rates & low
acceptability by the farmers. Its full advantage
needs further in-depth physio-chemical studies
based on our specific environment, ecology and
animal breeds.

Conservation of High potential
breeds:
Our precious dairy breeds need extensive care
in preserving them. A lot many animals are
being cross-bred leaving behind less chances of
pure breeding. Sahiwal Cow is an example.
Punjab govt. Policy of cross breeding and
grading of scrub animals should be observed
strictly. Cholistani & Nili Ravi need special
61
selective and line breeding attention in this
concern. AI technician need training about
breeding policy

Cross-breeding of Dhanni Breed:
For cross-bred animals, particularly with Dhanni
breed, a comprehensive program is needed.
This will open new horizons of increasing milk
yield and enhancing breed potential.

Improved Fodder varieties:
Improved fodder varieties of hybrid & multi-cut
seeds should be introduced among the farmers.
Sadhabahar, Lucerne, Mot grass & Berseem
are some of them.

Use of technology:
Use of technology & mechanization, particularly
in fodder conservation, to increase nutrients &
life of hay and silage should be propagated to
the farmers.

Adulteration in rations:
. Bags of 50 Kg may be legalized by the Govt.
Similarly, wheat bran bags should be
standardized in 40 Kg packings of polythene
bags.
 Anmol Wanda:
Anmol wanda prepared at research Institute of
L&DD may be marketed through DLOs in every
district & dairy production area OF Punjab,
especially in the Thal & Rain-fed areas.
Moreover, mineral mixture & TMR should be
produced & marketed to the farmers.

Hay and Silage making:
New projects of hay & silage making need to be
started by the L&DD department. Furthermore,
proper training facilities for the farmers should
be launched.

Drought-resistance Shrubs
Draught-resistance varieties of fodder and
shrubs should be introduced for grazing of small
ruminants in Thall & Rain-fed areas.

Progeny Testing Bulls:
“Bull is half of the herd”. Hence, progeny tested
Bulls by L&DD should be supplied to DLOs to
keep the bulls in Buffalo-populated areas for
breeding purposes.

Calf fattening:
Young calves should be fattened by feed lot
rations. For this, ration preparation with high
application of technology is required.
 Extension Services:
Large number of farmers need to be given
extensive training in the areas of vaccination
marketing, management, value addition & supply
chain enhancement
.
 Information Services:
Farmers need to be taught scientific methods of
feeding, feed combinations and other measures
to raise milk production. training programs
should be launched in animal populated area
throughout the province.

Drinking water & Sanitation:
Availability of clean drinking water may be
insured for Livestock. Similarly, more attention
needs to be diverted towards proper sanitation
procedures.

Dairy-processing Plants:
Small-scale dairy processing technology for
making cheese, Yogurt Dhahi, pasteurized milk
& other innovative products should be
introduced.

Govt. owned Institutes:
Technology should be introduced & applied in
Govt. owned institutes .Quality of vaccine ie HS,
FMD, Pleuropnomonia, Pox, PPR, Black Quarter
may be enhanced.
Govt farms need to act as demonstration
units for public & Livestock breeders while
conserving the breeds.
62

Vet Services:
Provision of vet-services in Thal & Rain-fed area
may be increased, as livestock is more important
milk yield & other Livestock productions to a
great
extent.
Moreover,
local livestock
fairs/mailaas should be arranged in collaborating
with L&DD department.

Feed-lot rations:
There is no trend of calf-fattening. Feed lot
fattening technology should be introduced to
meet the upcoming requirements of beef &
mutton.
 Measuring Standards
Proper method of measurements should be
introduced . Installation of weigh-bridges and
other measuring instruments may be installed at
the livestock markets for transparent marketing.
63
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
Tanvir Ali(2006) A case study of milk

production and marketing by small and
medium scale contract farmers of
Haleeb Foods Ltd., Pakistan University
of Agriculture ,Faisalabad - Pakistan.

Burki, A. A., Khan, M and Bari, F.
http://www.pakissan.com/livestock
(Accessed on 3rd July, 2008)

(2005). “The state of Pakistan’s dairy:
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

“The White
Revolution:
Strategic Plan for the
Pakistan Dairy
Industry”, A Report
available on Internet
of
Pakistan,
“Economic
Survey
Islamabad:
Ministry
of
Islamabad, Pakistan

(2006).
2005-06”,
Finance,

Ali

Peter Waynn et al(2006)Mission
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and
Saifullah
(2006)Milk
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The
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Rizvi
http://www.pakistaneconomist.com/issu
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Berdegue, J. A., Peppelenbos, L.
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Resource Paper for Component 2.
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Din, M., and Babar, M. E. (2006).
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Livestock
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carried out under the auspices of the
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(2005). ‘Competitive efficiency of milk
production in the Central Punjab’,
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Umme Zia(2007), Improved market
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CFC/FIGMDP/16F
Tanvir, Ali Dr. (2006) “A case study
of milk production and marketing by
small and medium scale contract
farmers of Haleeb Foods Ltd”.
University of Agriculture Faisalabad,
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Sharif, M., W. Malik, N. I. Hashmi
and U. Farooq. (2003). “Action Plan for
Livestock Marketing Systems in
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Memon

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(2003). A review of milk production in
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
proceeding of the international seminar
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(2006). ‘Unit Root Test and forecast of
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In:
65
Appendix:
Questionnaire for Cost of Milk and Meat in Various Ecological Zone
Productions
PRODUCER/FARMERS
1. Name of respondent:________________________________
2. Village:____________________ Teh: ________________ District: _________
3. Family Size ________________
4. Educational status: (a) Primary (b) Middle (c) Metric (d) Above Metric
5. Age: _____________ Years in Dairy___________
6. Land holding:
a) Above 25 acres -----------------------------------------------b) 12.54 to 25 acres---------------------------------------------c) Less than 12.5 acres-----------------------------------------d) Landless (No land)------------------------------------------e) Tenant --------------------------------------------------------f) Land Rent (per acre)----------------------------------------7. Other type of Business______________________________
Animal
Number
Value
Sold for meat
purpose
Rs.
Death
Total value
/losses
Cattle
Buffalo
Buff FYS
Suckers
Sheep
Goat
Kids
Poultry
Others
8. Strength of livestock maintained by the farmer
66
Purchase of Animals and Equipments

Buffalo lactating or Advance ------------------------------------------

Pregnant Nili Ravi Buffalo ---------------------------------------------

Adult Buffalo Bull (Nili Breed) -------------------------------------

Chaff Cutter with

Goldamatic water pump -----------------------------------------------

Iron Chain

Cane- Rope -------------------------------------------------------------
----------------------------------------------------
------------------------------------------------------------
Bucket (Stain -less Steel) --------------------------------------------
Milk Cans -------------------------------------------------------------

Dial Weighing Scale ------------------------------------------------
Fixed Cost:

Buff in milk………………………………………………….

Cow in milk…………………………………………………

Interest rate on the value of animal

Depreciation at @ 5%............................................................

Cost of shed……………………………………………….....

Cost of equipment……………………………………………

Depreciation of shed and equipment………………………..
VARIABLE COST:
Labor Cost

Family Labor engaged in agriculture………………..men

Hired labor engaged in agriculture………………………men

Labor hour spent on Livestock…………………………hour

Wages per labor per day…Rs……………………………

Total labor spent on livestock Rs.
67
FODDER COST

Rabi Fodder sown and purchased………………………………

Kharif Fodder sown and purchased……………………………..

Rate of fodder per acre….Rs……………………………………

Dry Fodder fed to animals……………………………………

Value of dry fodder………………………………………………

Grain fed to animals……………………………………………

Cakes fed to animals……………………………………………

Value of gur and oil fed to animals…………………………….

Concentrate ration/Wanda fed to animals…………………….

Total feeding cost Rs………………………………………..

-------

Electricity & power bill per annum

Deworming cost per animal ……………………………………..

Vaccination cost per animal ……………………………………..

Medicine and vet services cost per annum Rs………… Mortality

--------------------
-------
---------
Total cost
=
------------------
------------------------
Rs…………………………
-------------
---------
Total fixed cost + Total variable cost
Milk Disposal:
 Total Milk Production
-----------------------liter
 Consumption by suckler
-----------------------liter
 Household consumption
-----------------------liter
 Marketing
-----------------------liter
 Price per lit
Rs -------------------
 Total income Rs.
Rs.-------------------
 Income from FYM
Rs.-------------------
68
Fixed Cost:
Interest rate
No of Buff.
---------
No of Cows
--.-------
Animal depreciation Shed Depreciation
------------------
-------------------
------------------
--------------------
Type of concentrate
Chain &
--------------------------
Variable Cost:
Fodder
Dry Fodder
Concentrate
--------Labor
--------------Medicine
---------------Electicity&power
-----------
-------------
------------------------
Labor
------------------------ ------Mortality Cost
---------------------------
Milk Production per lactation:
Category
period
Average production per lactation
Buff:
------------
----------------liter
Cattle:
------------
----------------liter
Total beef Animal soled No.
-----------------

Beef animals sold on Eid
-----------------

Fattened animals sold
-----------------

Spent animals sold
-----------------
Total Income Received Rs.
-----------------
Goat/ Sheep Livestock Strength
OB
Birth
Sold
Death
CB
1st Year
2nd Year
3rd Year
4th Year
5th Year
69
Feeding Practices

Natural Grazing on

Fodder land allocated
-----------------

Rent of the land
-----------------

Labor Involved in Farming
----------------- men

Labor hours spent on feeding
----------------- hours

Type of Shed
-----------------

Value of Shed
-----------------

Depreciation of Shed
-----------------

Concentrate fed during the year
-----------------

Diseases of animals

Vaccination in Practice
-----------------

Vaccination Cost
-----------------

Deworming cost
-----------------
public places/Own land/fodder/stal feeding
Pneumonia/diarrhea/pox/enterotoxaemia
Total Cost
Value of Animals + Feeding + Labor + Shed
+ Vet Cover
--------------------- + ---------- + --------+ ------------ + -------------
Total Income from Animals sold for mutton

Sold for breeding
(Rate per animal---------- No. sold--------)

Domestic Consumption
(Rate per animal---------- No. sold--------)

Mutton animals sold on Eid
(Rate per animal---------- No. sold--------)

Fattened animals sold
(Rate per animal---------- No. sold--------)

Spent animals sold
(Rate per animal---------- No. sold--------)
Total income received Rs.
---------------70