Halal food industry USD 640 Billion a year market. Beef industry USD 30 billion growing at 10.4% per yearPakistan beef export USD 100 million 2010, USD 500 million in 2015.Pakistan beef production 1.7 million ton in 2010, growing over 8.5% per year
Muhammad hadi jassar farms presentation
Jassar FarmsA 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 Poultry meat, dairy animals contributed 48% of 20% Beef 48% total meat 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 12Improving animals productivity is vital for uplifting the dairy and beef industry
8 Farm Sustainability Cycle Pricing & Profitability FarmerCore Drivers Profitability & Nutrition & Farm Re-investment Management Practices Cycle Animal genetic potential Access to creditSupporting 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% NeededBuffalo 29,900,000 16,445,000 32,890,000Cattle / Cows 33,000,000 18,150,000 36,300,000 Quality ofTotal 62,900,000 34,595,000 69,190,000 Available SemenBuffalo Semen Requirement 32,890,000Buffalo Semen Available: - Public Sector Production 2,100,000 Marginal - Private Cottage Industry Production 200,000 Very Poor - Imported Semen -Total Available 2,300,000Artificial Insemination Rate 7.0%Cattle Semen Requirement 36,300,000Cattle Semen Available: - Public Sector Production 400,000 Poor - Private Cottage Industry Production 200,000 Very Poor - Imported Semen** 1,000,000 AcceptableTotal Available 1,600,000Artificial 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 theimporters / 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 BriefSustainable 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 timeProject’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 UnitSemen 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 ratesKey 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 Division18th 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 ValenceJFH-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) 43Jassar Farm is at forefront of cattle genetics in Pakistan
18 Project Brief Dairy DivisionDairy 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 marketKey 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 BreedAge at First Lactation (months) 48 25 25Milk Per day (liters) 4.6 27 13.3Lactation Yield (liters) 1,400 8,500 4,050
20 Dairy Division Jassar Farm’s F1sPakistani 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 Cows Department JFPL Gain (using Production Semen Semen JFPL semen)*Avg Milk Yield / Lactation /Cow (In Liters) 1,500 2,000 4,000 2,000Domestic Consumption InLiters (over the lactation) 1,000 1,000 1,000Milk Available For Sale(liters) 500 1,000 3,000 2,000Average Selling Price (Rs) 30 30 30Total 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.