Dear All, It contains plenty of useful and valuable information about dairy cattle farming in Malaysia. Please do not hesitate to contact me directly for more information. Regards Dr. Hamed Faghiri

1. MODERN DAIRY CATTLE FARM
(1000 and 20000 Dairy Cows)
PROPOSAL
Written by:
Dr. Hamed Faghiri (Charley)
Date:
February 2018

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of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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1- Project Summary
Milk is the primary source of nutrition for young mammals before they are able to digest other
types of food and one of the most important sources of nutrition for adults. The most important
objectives of this project are to produce high-quality milk with competitive price and export
potential. This profile envisages the establishment of the dairy farm with average production of
20 liters’ milk per dairy cattle. The current demand for milk in Malaysia region is estimated more
than 1,300,000 tons. The demand is projected to reach much more than this by the following
years.
Our Dairy Cattle Project in the Netherlands
2- Product description and application
The major product is cow fresh milk. It is a constituent of the Malaysian diet. It is also the raw
material for dairy products such as fresh milk, fluid milk, yogurt, cheese, ice cream, butter and
so on.
The second product is heifers. They are young cows, especially one that has not yet given birth
to a calf but it is pregnant. The price of the heifers is depending on their genetic capability.
The third product is beef cattle for sale. Male calves that they grow just for meat. (Age 12-14
months)
The fourth product in dairy cattle for sale. Dairy cattle which they do not have acceptable milking
production record or some other problems. The price depends on the reason for elimination. In
the most of the times, traditional farms buy these kinds of the cow to get just one calf of them to
improve their flock genes.
The fifth product is bull: The bulls used for mating. The price depends on the genetic capability
of the bull.
The sixth product is dung: The dung of the animals uses as fertilizer in agriculture.

3. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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3- Marketing and demand projection
Malaysia is one of the high ranked milk importing country in the world. Therefore, the demand
for milk and other dairy products is huge in Malaysia while the Self Sufficiency Level is only 6%.
The following graphs show the global milk importers countries.
The global milk and milk products imports
The demand for the other products such as heifers, dairy cows, male calves, and bull are so low
and sell this product with high quality do not have any problem and not only in Malaysia but also
in some overseas countries such as Indonesia.
4- Causes of the weak dairy cattle industry in Malaysia
• Lack of technology and knowledge
• Wrong management
• Lack of trained supervisors and workers
• Inappropriate food formulation, foods and feeding system
• Lack of biosecurity system
• Lack of breeding management
• Lack of genetically pure species
• Climate

4. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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5- The advantages of dairy cattle farming in Malaysia
The Malaysian dairy farms are not advanced and the level of their productivity is low. It means
that a modern farm does not have the serious competitor in Malaysia. Another important point is
that the price of the milk is quite high and a huge amount of milk imports from overseas
countries. The Malaysian governments willing help this industry. All factors that mentioned
before support the idea of starting modern farming especially dairy cattle in Malaysia.
6- Team characteristic
• 50 years’ experience
Our group companies and consultants members have experience for over 50 years in
engineering for technological & business networking in animal science and farm technology has
led to a line of products, which complies with the latest demands for optimal production,
protection, and coverage.
• well-known globally
We have experiences in over 100 countries, such as the USA, Canada, the United Kingdom,
Japan, Saudi-Arabia, Iran, Iraq, and Russia.

5. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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• Turnkey projects
Being specialized in Turnkey projects, our group can take full responsibility for the delivery and
installation of complete dairy cattle farm projects, including structure, computer control, electrical
system, feeding system, drinking system.
Our project in the Netherlands
Our project in Iran
• Variation of different plan and projects
We have the capability to set up the variation of different plan and projects. For instance,
different capacity such as 100, 200, and 300 till 10,000, 20,000, and 30,000 of cows in a farm
and different structures and equipment depend on the climate and the volume of the investment.

6. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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Our project in Iran with 40,000 milking cows capacity
Our project in Iran with 20,000 milking cows capacity
Our projects with 300 milking cows capacity

7. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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• Corporation capacity to transfer technology and know-how
We will become very glad to have the opportunity to transfer our knowledge and experience to
local farmers. Actually, our team has the special plan to train local farmer. We also have
planned to transfer technology to Malaysia because the production cost in Malaysia is lower
than Europe.
• Formation in Iran, Europe, and Malaysia
Management is a service which is getting more important these days so this group takes care of
sending well educated international specialists to the different projects in order to set up a
products process program backed up by an extensive training program for the local gain and
growers.
Our training venues in the Netherlands
• Our vision, mission, and motto
VISION
To be the leader in the Modern agro-industry among South East Asian countries.
MISSION
To be the main dairy product supplier.
To manufacture different types of the dairy products such as yogurt, cheese and so on.
MOTTO
Transfer Risk into Opportunity

8. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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7- Plan objectives
• Minimize production damage risk
Investment risk is one of the most important for investors to accept or reject a project. In fact,
traditional agriculture has the high level of risk and the farmer cannot control the effects of the
natural factors such as climate because they do not have suitable equipment and they also
cannot control the disease because they do not have knowledge about biosecurity. All factors
such as equipment and knowledge can have the effect on the level of risk. In the modern agro-
industry, the farmers are educated and trained and they have the professional consultant.
Moreover, they manipulate technology and modern equipment. All of these factors reduce the
level of the agriculture projects. So the level of the risk in the modern agro-industry is lower than
the traditional one.
• Adequate internal and external resources
In modern agro-industry, farmers use both internal and external resources and it does not mean
that they focus just on the external and costly resource. Actually, they look for more economic
resources.
• Export capacity
The quality level of the products is high, so they have the capability for export with the higher
price than local market.
• Maximize the profit
The profit will be maximized by usage of the best resources, the high level of the productivity,
high level of the quality, capability for finding the market with higher price and export potential
with international price.
• Country Independency level
Modern Industry can help each country to become independent in the field of agricultural
production. All modern countries such as USA, Canada, France, and Germany supply their own
food. A country cannot consider as a modern when it’s people cannot produce food for
themselves.
• Encourages productivity & improves quality
The first modern farm will encourage all traditional farmers to follow it and catch better
productivity and quality. This movement will have the very good effect on the whole agriculture
and farming in the whole country.
• Secured market
High productivity means better sells price and high quality mean better market. Both of them
give the farmer opportunity to have the secured market.

9. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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• Development stage of the country
This technology will support the country to become a modern country. A modern country has to
be modern in many aspects such as agriculture and farming.
8- Implementation Plan, Production Process, and Time-frame
We wish to build up a farm imported breed calf heifers. We use both the local and imported
feeds. Our technical department will design a suitable building to reduce the effects of the
humidity and other local environments negative factors. The dairy cattle and most part of the
equipment will import from overseas countries.
• Production Process
After construction and establishment of the farm including buildings, farm structures, fodder
production, etc. in calf heifers will be purchased from a reliable supplier. These heifers would
give birth in three to six months’ time and production of milk will be started nearly at the first
year. The milk will be taken directly from the milking parlor with a pipeline to a cooling tank for
temporary storage.
• Timetable for 1000 cows farm
1- Takes 2 months for designing and the rest of the needed documents
2- Takes 5 months order & produce the equipment
3-Takes 3 months for loading & shipment
4-Takes 12 months installation and construction (during the construction, we will starting
formation and training during the installation & construction period, ordering the food and
finalizing the whole things and shipment of the animals to the farm)
±2 months tolerance
22 months total preparation time
Note
We cannot give any timetable for 20,000 dairy farm in this stage because we need more
information about the land, climate, and also, should combine our experience in the pilot plan to
come up with the more details.

10. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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9- Investment, Expected Incomes & ROI
• Financial Plan for 1000 dairy cattle farm
Investment
1- Building and equipment and the rest of the fix cost = RM 10,000,000
2- Land = RM 5,000,000
3- 1000 dairy imported heifers = RM 13,000,000
Total investment = RM 28,000,000
Income
1- Milk = RM 17,500,000
2-Cattle for sale = RM 819,000
3-Heifers for sell = RM 525,000
4-Male Calves for sell = RM 1,600,000
Total incomes = RM 20,444,000
Mines all variable cost = RM 10,500,000
Net Profit per Year = RM 9,944,000
ROI
Net profit in the year 6th is 0.35%. So the ROI is about 3-4 years depending on the SITE
CLIMATE and other factors after the start of production. As mentioned before the preparation
time is about 22 months.
Note
Above calculation is not accurate and it has around ± 10% tolerance because we do not have
specific details about land, climates, and other factors.

11. © 2018 HAMED FAGHIRI (CHARLEY) ALL RIGHTS RESERVED. No part of this CONCEPT PAPER may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the publisher. For permission requests, send an email to the author, addressed “Attention: Permission,” at h_faghiri@yahoo.com.
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• Financial Plan for the 20,000 dairy cattle farm
Investment
Building and equipment and the rest of the fix cost = RM 150,000,000
Land = RM 20,000,000
20000 dairy imported heifers = RM 200,000,000
Total investment = RM 370,000,000
Income
1- Milk = RM 350,000,000
2-Cattle for sale = RM 16,380,000
3-Heifers for sell = RM 10,500,000
4-Male Calves for sell = RM 32,000,000
Total incomes = RM 408,880,000
Mines all variable cost = RM 210,000,000
Net Profit per Year = RM 198,880,000
ROI
Net profit in the year 6th is 0.53%. so the ROI is about 2 years depending on the SITE
CLIMATE and other factors after the start of production.
Note
Above calculation is not accurate and it has around ± 15% tolerance because we do not have
specific details about land, climates, and other factors.
This project has the capability to become a national project and listed company.