The Largest Dairy Farm of the world
The most comprehensive dairy project of the world build in Vietnam. The farm will contain 35000 cows and will supply millions of liters of milk every year.
Monday, September 9, 2013
Dairy Farming
How To Start Dairy Farm
You will know why dairy farming is a good business, and what to look out for when you are starting out, because I am going to share some of my experiences (I have been involved directly in dairy farming for the last almost-two years).
Dairy Farming is a very hot topic in Pakistan. A lot of seasoned and would-be entrepreneurs have already jumped onto the Dairy Farming bandwagon in Pakistan, and even more so like to talk about getting into dairy farming. But have you asked yourself this question,
“why start a dairy farm?”
Why Start A Dairy Farm
Yours truly have been working on the dairy farming project since June 2009. My interest was pretty much ‘academic’ at first; just knowing how the business and the animals operate. It was after almost a year of travelling in and around Punjab meeting countless number of people in the field, discussing and debating with some very qualified consultants and breeders, that I decided to dip my toes in this project.
I was interested in quite a few facets of Dairy Farming:
- The Business Model: Dairy farming has a very unique business model, and no other business has the capability of multiplying its assets while still producing revenue. Remarkable.
- The Current Situation: One of many lessons that Richard Branson has taught me is that you should get into a business where you think you can do better. Dairy farming, I knew, had a very, very large room for improvement.
- A Very Solid Demand: A lot of businesses and entrepreneurs would consider a ‘demand’ for something a good enough reason to get into any project. But for me, dairy farming is not only the demand of the market, but also a need. People need healthy, quality milk (and meat). It fits in with the idea of for-profit philanthropy where I stand a chance of actually helping people out, and earning prayers as well as profits. Now that’s an inspiration!
- Super Integration: This was not vertical integration as much as it was super integration. I already have two independent projects, one agriculture farming and the other is milk supply within Lahore, Alhumdulillah. The dairy farm has the potential of sitting in very nicely between the two, and providing wholesome integration. Although integration of any two businesses, much less three, is a pain in the neck (amongst other body parts), dairy farming provides me with the perfect long-term inspiration for working on these three projects!
Warning: Know This Before You Start Dairy Farming
Most of the things people say, they just say them without much thought. They’d discourage you from doing anything different. This should not stop any half-decentstarta from doing and starting different projects, of course. Having said that, following are the main points – so far – that should be considered when starting your own dairy farm:
1. It is a long term project.
There are no two ways about it. The time when you actually start seeing profits, IF a lot of things go right, is at least three years, usually five years. If you start taking out profits from it before three years, be prepared to inject more money in to it afterwards. But the upside to this remarkable business model is best explained by the following example that I frequently give to my friends and would-be entrepreneurs:
- I start a shoe shop, selling shows. You start a dairy farm, selling milk.
- After three years, if both of us do well in our businesses, I’d be richer than you.
- After six years, I’d have five branches all over the city, and will still be richer than you. You’d have great cash flows but you will find it hard to beat my retail outlets.
- Ten years later, it won’t matter how good I am doing, you will be much richer than me, in terms of assets, and most importantly, in terms of cash in hand.
- After 10 years, no business seem to even come close to the almost logarithmic growth of a dairy farm.
So if you can train yourself to actually think slow and steady, rather than fast and wobbly, then dairy farming is definitely something to consider.
2. The Most Important Factor is Currently the Hardest
The hardest part of setting up a dairy farm is the procurement of good-quality, high-yielding, environment-hardened animals. This is also themost important activity for an owner of a dairy farm.
You can go for imported cows, but I did not and I recommend that you don’t either.
A lot of people will tell you that you shouldn’t because they are expensive. I want you to know that imported cows are not expensive. If you are paying 140,000 (PKR) for a cross-bred cow, then paying 180,000 for an imported cow does not make the cow ‘expensive expensive’, it just makes it ‘relatively expensive’. And your target is not to increase the number of heads, but to increase the number of liters of milk. So an imported cow averaging 25 to 30 liters per lactation is much better than a cross-bred cow averaging 14 to 18 liters per lactation. The ROI is just plain and simple and you should stop listening to people who tell you otherwise.
But that’s not the reason why you should not get imported cows. The number one problem with imported cows is that they are unable to withstand the blast of heat of the Pakistani summers. Setting up the right infrastructure is essential, but that is not the only thing that you’d have to look into. There is disease and the very little margin of error that the imported cows give to you and your management.
I would suggest you do what I am doing; find good-quality locally bred cows, make sure that your dairy farm shed and cooling infrastructure is very much in place and then run the farm for at least a year to gauge how well your infrastructure (shed, cooling etc) is handling your locally-bred cows.
But that brings me back to the main point: finding high-quality locally bred cows is the hardest thing you’d have to do. It is also the MOST IMPORTANT thing for any dairy farm. As I have repeated this repeatedly (!!), a dairy farm’s main function is to procure and breed good-quality cows. The milk (and meat) is a by product of that main function.
So be prepared to hunt down good animals wherever you can find them. I remember travelling a total of 2000 kms plus, by road, all over Punjab, in one week, just to see and meet cow breeders. I didn’t pay half as much attention to the shed that I was constructing, or even the silage pits that were being prepared at the time, because purchasing the right animals is that one 20% activity that gives more than 80% of the result (if you are not aware of the wonderful 80/20 principle and how it applies to everything I talk about here, do read up on it by clicking here)
3. Finding the right people
Finding the right person to manage your dairy farm is also something to pay VERY close attention to. Stealing milk is very easy. If you do not trust the person who is managing the farm, then that’s a losing proposition. You should pray that God helps you find that person. You can also start with a solid attitude of trust, of reward and of accountability. I can write quite a few things on how to deal with people, because that is ALL of this is about, but suffice it to say for now, that one of the hardest things to do in dairy farming – just like in any other business – is to find the right people to manage and carry your dairy farm forward.
Details of who’s who and how many people should do what activity, those things are not the scope of this article and may be covered/posted later, God willing.
Finding technical help like that of vets and professional consults for animal feeding etc is NOT a problem, especially here in Pakistan. That is again one of the benefits of dairy farming, that the infrastructure that only a government can provide, is ALREADY IN PLACE in Pakistan. Sure there are problems, but it is good enough for you to not complain and get some work done.
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This is just a run down of my thoughts on dairy farming and some – just some – of the pitfalls that you should look out for. By God’s Grace, my dairy farm has been operational for a about 4 months now and I am happy that I have started this business.
God guide and bless us all. Good luck to you in your conquests and queries.
NOTE:We now have a community DEDICATED to Dairy Farming! I have started a small forum site that we all can use and share our experiences AND ask for help! Please click here to check it out because you will find a lot of help, God willing.
Update June 2012:
Thanks to the overwhelming response and feedback on this post, I am happy to report that the dairy farming guide is available for download.
A lot of people who read these free resources and comment and meet me etc do not buy the eBook and I don’t want to put any sort of pressure on you.
But those who have bought the eBook have very good things to say about it, by God’s Grace. I thank you and wish you all the best.
To know more about the Dairy Farming Guide, please click here. Thanks. And God bless.
If you are interested in learning more about creative self employment, living a life of adventure, attaining financial freedom and wholesome living, please do subscribe to LifeETC.
Palm oil import business
Import business in Pakistan
Pakistan, a very large consumer of vegetable oils and fats, remains a very large market for palm oil, thus making it an important export destination for the golden crop.
In 2012, Pakistan imported over 1.4 million tonnes of palm products from Malaysia valued at over US $1.3 billion, said Malaysia’s Consul General in Karachi, Abu Bakar Mamat. “We place great importance on this market,” he said.
Abu Bakar said this at the seminar on Palm Oil Standardisation, which was jointly organised by the Malaysian Palm Oil Board (MPOB) and Pakistan Standards Quality Control Authority (PSQCA) in Karachi on Thursday.
He said efforts by the Malaysian government, industry and also by MPOB had been put in to ensure that Malaysian palm oil remained relevant as the major product in Pakistan edible oil industry.
“MPOB is actively involved in developing standards for palm oil products and seats in numerous technical committees in the development of international standards such as the ISO standards, the American Oils Chemist Society and Codex,” he said.
Abu Bakar said the Regional Manager, MPOB, Karachi also sat in the technical committee of the PSQCA and provided the technical knowledge and expertise in drafting and proposing related standards on palm oil products in Pakistan. He gave an assurance that the consulate general would extend its maximum effort to ensure the quality of Malaysian palm oil in Pakistan.
MPOB has a regional office in Karachi, which has been here for 27 years. “The fact that this office is covering 24 other countries from Karachi is a true manifestation of our commitment to ensure the smooth flowing of quality Malaysian palm oil into Pakistan market.
News Source
Courtesy Business Recorder
Courtesy Business Recorder
Partnership Business
Partnership Business in Pakistan
A Partnership in Pakistan is a business entered into by a formal agreement between two or more persons or corporations carrying on a business in common. The capital for a Partnership is provided bythe partners who are liable for the total debts of the firms and who share the profits and losses of the business concern according to the terms of the partnership agreement.
Partnership in Pakistan (other than banking companies) are generally limited in size to twenty partners. The interest of a partner is transferable only with the prior consent of the other partner(s). However, a partner’s right to a share of the partnership income may be received in trust for another person.
For taxation purposes in Pakistan, partnerships are classified into:
Registered firms and unregistered firms.
The income of the registered firm is subject to super tax before distribution to the partners. Also the individual income of the partners is subject to income tax at the usual rates.
For unregistered firms, income tax is levied on the firm’s income and the partners are not liable to pay tax on the shares of profit received from the unregistered firm(s).
We offers under mentioned services in the field of Partnership in Pakistan.
Consultation on a business name for partnership
Search availability of partnership business name
Drafting of partnership agreement
Registration of partnership
Drafting of deed of dissolution of partnership
Registration of deed of dissolution of partnership
You can also Contact Us for detailed consultation regarding business setup or company registration in Pakistan.
Tuesday, September 3, 2013
Pakistan- a land for business
Pakistan is a great land for doing business.
But one should aware of something before investing your money or putting your money in some business.Here are something one should know before setting up a business and one should try to act upon them.
1. Pakistan is a land of tremendous opportunity.
2. Hotels are expensive and if in Karachi you should only stay at the PC or the Marriott - don't try to save money and use cheaper hotel. Security is a big issue.
3. If you are an expat use your the embassy. I used the British high commission. Cost me £1060 for just organizing meetings with banks etc but well worth it as it opens so many doors that you would never be able to open yourself.
4. Also register a parent company abroad and use that to propel your idea.
5. Don't try to be a Pakistani.they will eat you up. If you speak English use it to your advantage. The Pakistani locals speak good English but it will give you an edge. They tend to shy away from confrontation.
6. Don't wear a shalwar kameez to a business meeting. Smart business suit and tie(always).
7. If you know your subject then stick to the facts. Most Pakistanis do not do maths and their business just run somehow. They will even impart critical company information just to impress you without even realising it.
8. Never be flexible on quality. Pakistanis are obsessed with Chinese product but always put them down for poor quality. But you simply have to tell them yes but if you pay peanuts you will get monkeys. China develops some of the best products in the world but if you don't pay for quality you won't get it.
9. Be careful even when getting an accountant, they will talk to you about fees but its the monthly fee. Not an annual one as in the west, they will then up the fee greater than even the city of London. Trust me I know I have used them. Be prepared tom negotiate everything. There is no such thing as a deal done or fixed price.
10. Talk to your competitors. Be prepared for negative feedback as to how rubbish the business is and I want to sell up and go but I have no choice etc. just pretend to be dumb and listen.
11. Focus on quality and do not compromise. Do not put down your competition. Even if asked. I have just been asked to put down some competitor but I politely refused and sidestepped. If you do this they will see you the same as the rest of Pakistani.
12. You will hear Pakistanis use God as a weapon during negotiation. Don't fall for it even the ones with the beards are crooks. View everyone as a crook and then sieve the good ones out. There are a few and Alhumdulillah I have met some.
13. They will ask for bribes. Be prepared to walk away. It's better for you. I was asked and I stopped the conversation stating 'never eaten haram and never will inshallah and please do not mention this topic to me again'. Just be polite and nip,it in the bud. They want to know if you are up for sale and at what price.
14. Anything yo want to do you can here, its a virgin country with negative attitudes. Even if you wan to flip burgers. Make the joint clean and I will work
15. Come to Pakistan but be prepared.
The above is a quick writeup. Please feel free to add.
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