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Muhammad Hadi Jassar Farms

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					             Jassar Farms
A Project To Empower The Rural Poor of Pakistan

                  Presented By,

                Muhammad Hadi
               Operations Manager
             Jassar Farms (Pvt.) Ltd.
                                                            2




                       Table of Contents
   Importance of Milk Production

   Dairy Industry Structure

   Productivity Gap- Milk Production

   Productivity Gap- Meat Production

   Farm Sustainability Cycle

   Local Genetic Resources

   Livestock Semen in Pakistan- Market and Demand Sizing

   Quality of Current Genetics in Pakistan
                                                 3




                     Table of Contents- Contd.
   Jassar Farms Project Brief

   Semen Processing Unit

   Dairy Division

   Social Impact
                                                                                        4



                 Importance of Milk Production in
                  Pakistan’s Economy & Society

   30 – 35 million people in Pakistan are engaged in Livestock rearing
    (Economic Survey of Pakistan)

   35 to 40% of the total income of these families comes from livestock
    (Economic Survey of Pakistan)

   During 2008 – 09, Pakistan produced a total of 42 billion liters of milk worth
    US$ 18 billion (at retail price of Rs 35 / liter). In view of this the country is
    the 4th / 5th largest producer of milk in the world yet it is a net importer.

   In terms of retail value, milk produced in the country is more than 11% of
    the country’s total GDP (US$ 165 billion - CIA Fact book)

   Milk production has created millions of jobs in production, collection,
    processing & distribution.
                                                                                      5




                        Dairy Industry Structure

   Total herd size is 62.9 million animals

   Average number of animals per household is less than 3

   More than 90% farmers are small producers

   Average daily milk production per animal is less than 4 liters as opposed to 33
    liters per day for the developed world

   On the average, 8 Pakistani milk producing animals are equal to 1 animal of
    the developed world.



            Low yields & small average herd sizes have resulted in
          sub-subsistence level living for millions of people in Pakistan
                                                                                6




                     Productivity Gap – Milk Production…

   Unlike the developed world, research & development on local breeds has
    been marginal over the past 6 decades
                            Animal Milk Yield Comparison
        Breed               Category          Origin         Milk Yield Per
                                                           Lactation (Liters)
        Ravi-Nilli           Buffalo      Southeast Asia         1,700
        Kundi                Buffalo      Southeast Asia         1,700
        Dhanni                Cow         Southeast Asia         1,250
        Red Sindhi            Cow         Southeast Asia         1,600
        Sahiwal               Cow         Southeast Asia         1,800
        Cholistani            Cow       Southeast Asia           1,500
        Jassar Farms F1       Cow         Southeast Asia         4,000
        Israeli Holstein      Cow             Israel            12,500
        US Holstein           Cow               US              10,500
        US Jersey             Cow               US               8,000
                                                                                     7




                  Productivity Gap – Meat Production…
      Meat production is an important byproduct                  Meat Production
       of dairy farming

      In 2009, Pakistan produced 2.88 MT meat,                     Poultry
       dairy animals contributed 48% of total meat                   20%      Beef
                                                                              48%
       produced
                                                                   Mutton
                                                                    32%
      Exotic beef breeds are more suitable for
       meat production
                                                      Slaughter   Maturity
                              Weight at      ADG       Weight      Period
                     Origin   Birth (Kg)   (Kg/Day)      (Kg)     (Months)
        Buffalo South Asia        32          0.5         550        35
        Sahiwal South Asia        23          0.6         450        24
        Angus     England         31         1.38         580        13
        Hereford England          33         1.37         600        14
        Charolais France          35         1.59         600        12

Improving animals productivity is vital for uplifting the dairy and beef industry
                                                                    8




               Farm Sustainability Cycle



                          Pricing &
                         Profitability
                                                      Farmer
Core Drivers                                      Profitability &
                     Nutrition & Farm
                                                  Re-investment
                   Management Practices
                                                       Cycle


                   Animal genetic potential

                        Access to credit
Supporting       Industry / Academia Linkages       External
  Drivers                                         Support Cycle
                  Human Resource Availability
                Institutional Support Framework
                           Local Genetic Resources...
                   Pakistani Sahiwal & Cholistani Cattle Issue

   Sahiwal & Cholistani cattle breeds are amongst the most hardy
    & extreme weather tolerant animals in the world

   Dairy farmers in Central Punjab, South Punjab & Upper Sind
    mostly have these types of breeds because of their high
    temperature tolerance

   Although breed yield averages are around 1,750 liters but there
    are animals with milk production potential of over 30 liters per
    day

   These elite animals are available in very small numbers and
    held by private individuals around the country

   It is unfortunate but no concerted effort has been undertaken
    to develop these breeds & thus they are withering away
                         Local Genetic Resources...
                           Pakistani Buffalo Issue

   With 29.9 million animals, nearly 48% of
    Pakistan’s total milking herd producing 64% of
    the country’s milk requirement is the buffalo

   With high maintenance cost and low milk
    production, this animal offers negative returns
    to its owners currently

   This animal is least researched upon yet much
    talked about by Academia & Government

   Although breed yield averages are around 1,700
    liters but there are animals with milk production
    potential of over 25 liters per day

   Since this is a local animal, there is no imported
    semen available for genetic up-gradation
                      Genetic Up-gradation
       Livestock Semen In Pakistan - Market & Demand Sizing
                                                                             Total Doses
                                    Total Herd *       Females @ 55%           Needed
Buffalo                                 29,900,000          16,445,000           32,890,000
Cattle / Cows                           33,000,000          18,150,000           36,300,000        Quality of
Total                                   62,900,000          34,595,000           69,190,000     Available Semen

Buffalo Semen Requirement                                                         32,890,000

Buffalo Semen Available:
  - Public Sector Production                                                       2,100,000        Marginal
  - Private Cottage Industry Production                                              200,000        Very Poor
  - Imported Semen                                                                       -
Total Available                                                                    2,300,000
Artificial Insemination Rate                                                            7.0%

Cattle Semen Requirement                                                          36,300,000

Cattle Semen Available:
  - Public Sector Production                                                           400,000         Poor
  - Private Cottage Industry Production                                                200,000       Very Poor
  - Imported Semen**                                                                 1,000,000       Acceptable
Total Available                                                                      1,600,000
Artificial Insemination Rate                                                              4.4%
* Source: Economic Survey of Pakistan 2008 - 09
** Imported cattle semen is mostly being supplied to the public sector or to the large progressive farmers by the
importers / distributors as selected few can afford it
                      Genetic Up-gradation
      What Are The Pakistani Dairy Farmer’s Current Options…

    With just 6% semen availability, Pakistani farmers use “natural service” for
     their animals 94% of the times
    A cursory evaluation of the 6% available semen will reveal:
         Government produced semen is priced at Rs 35 to 65 per dose but has
          marginal to very poor quality
         Private cottage industry produced semen is priced at Rs 50 to 250 per
          dose but has very poor quality
         Imported semen is only for cattle & not buffalos and is priced
          prohibitively at Rs 300 (for acceptable quality) to upwards of Rs 8,000
          (for top quality)


Locally produced semen is of marginal quality while high quality imported
 semen is beyond affordability hence artificial insemination rate is only 6 %
 Jassar Farms (Pvt.) Ltd.
Dairy and Breed Improvement Project
                                                                                    14



                       Jassar Farms Project Brief



Sustainable Development:

   About 2/3 of Pakistan comprises of rural areas and development has been
    marginal and uneven

   Jassar Farms business model seeks to achieve economic and social returns at
    the same time

Project’s Partners:

   Jassar Farm has partnered with Acumen Fund in an embryo transfer program to
    bring in world class genetics in Pakistan

   Acumen Fund is a USA based social impact venture capital fund that only takes
    equity positions in projects that have a social significance and economic
    sustainability.
                                                                                   15



                           Project Brief
                       Semen Processing Unit
Semen Division Objectives

   Produce elite bulls through embryo transfer for semen processing unit

   The processing unit will produce world class semen for dairy and beef
    animals locally for onward sale to poor farmers at affordable rates

Key Achievements

   Produced progenies of world’s best dairy animals

   As of May 2011, 8 male & 5 female calf births have taken place (this is the
    highest number of animals produced through imported embryos in Pakistan)

   Team will be fully equipped technically to flush, produce & transfer embryos
    locally in 2011
                                                                           16
                         Semen Division
18th February, 2010 – A Landmark Day For Pakistani Dairy Industry

                                        Donor Dam              Glory
          JFH-Savior                    Milk (kg)              18,191
                                        Fat (% )               3.8%
                                        Protein (%)            3.1%


                                        Service Sire           Alexander
                                        World Ranking (2010)   54


                                        Surrogate Mother       Sahiwal
                                        Date of birth          18-Feb-10
                                        Breed                   Holstein
                                        Sex                    Male
                                        Weight at Birth        40 kg

  Pakistani Farmers will have access to elite American genetics for
                 genetically upgrading their animals
                  Semen Division
       Jassar Farms Excels in Cattle Genetics
                                      Donor Dam              Valence
JFH-Ambassador                        Milk (Kg)              18,036
                                      Fat (% )               3.5
                                      Protein (%)            3.2
                                      Service Sire           Picston
                                                             Shottle
                                      World Ranking (2011)   1


                                      Surrogate Mother       Friesian
                                                             Cross
                                      Date of birth          28-Feb-11
                                      Breed                  Holstein
                                      Sex                    Male
                                      Weight at Birth (Kg)   43

Jassar Farm is at forefront of cattle genetics in Pakistan
                                                                                         18



                               Project Brief
                               Dairy Division
Dairy Division Objective

   Use world class semen to obtain high yielding progeny from local animals

   Build awareness about genetic up-gradation & its advantages

   The dairy unit will ensure financial sustainability of the project till semen unit
    establishes its market

Key Achievements

   Only farm in Pakistan that uses exclusively sexed semen

   Using world class semen, by end of May 2011, Jassar Farms has
    successfully produced more than 375 cross breeds animals (i.e. F1s & R1) from
    local cows
                                                                              19



                                 Dairy Division
                        First Generation Crossbreed (F1)


      In April 2010, First F1 joined the milking herd
      Confirmation of the genetic potential of F1



                                   Local Animals US Jersey Breed F1 Cross Breed
Age at First Lactation (months)            48             25           25
Milk Per day (liters)                     4.6             27          13.3
Lactation Yield (liters)                 1,400           8,500        4,050
                                                                     20




                     Dairy Division
                   Jassar Farm’s F1s




Pakistani dairy farmers can expect to get 200% to 300% increase in
                          milk production
                                                                                    21



                             Social Impact
                      Incremental Income of an F1
                                            Incremental Revenue From A Female
                                                           Calf
                               Base Herd      Using                    1 Calving
                                / Mother     Livestock      Using     Incremental
                                 Cow's      Department       JFPL     Gain (using
                               Production     Semen         Semen    JFPL semen)*
Avg Milk Yield / Lactation /
Cow (In Liters)                  1,500          2,000       4,000       2,000
Domestic Consumption In
Liters (over the lactation)      1,000          1,000       1,000
Milk Available For Sale
(liters)                          500           1,000       3,000       2,000

Average Selling Price (Rs)         30            30          30
Total Revenue Generated
(Rs)                             15,000         30,000      90,000      60,000
* Note: There is a 50% chance of a female calf being born
                                                                         22




                              Thank You
…supporting the dairy industry through superior genetics can lead to a social
  & economic soft revolution in the country on an economically sustained
                                   basis.