Engro dairy farm nara report

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Report on

ENGRO DAIRY FARM
NARA

Group # 02, Group Leader: SYED WASEEMULLAH SHAH
Group Members:

ZAKIR HUSSAIN ABBASI
MANZOOR AHMED MARFANI
TAJ MUHAMMAD JAMALI
FAHAD ARIF RAJPUT

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ACKNOWLEDGEMENT

Respected Mr. Bukhari,
Farm Manager (Engro Dairy Farm Nara)
Taluka Salehpat District Sukkur.
Thank you for taking the time to meet with our group and other
representatives of the Sukkur Ibians on last week visit at Engro
Dairy Fram Nara. We enjoyed meeting with you and your team
members. I’m glad we had the opportunity to discuss our
concerns and whole process of your Dairy Farm.
We especially appreciate your commitment to serve
community by investing in educational and health sectors.

the

Our whole group would like to appreciate your support and
co-operation greatly. On behalf of all our members, I want to
thank you for taking the time out of your busy schedule to have
us a visit at your Dairy Farm.

Sincerely,
Manzoor Ahmed Marfani
EDP-II, Sukkur IBA.
Date: December 30, 2013.

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Table of Contents
Global Milk Production ............................................................................................................................. 6
Higher Milk Yield ......................................................................................................................................... 6
TRADITIONAL MILKING and MODERN MILKING TECHNOLOGY .............................................. 7
ENGRO DAIRY FARM NARA ................................................................................................................ 8
ORGANIZATIONAL STRUCTURE AT ENGRO DAIRY FARM NARA ............................................. 9
TECHNOLOGY USED AT ENGRO DAIRY FARM NARA ................................................................ 10
BACKWARD INTEGRATION ................................................................................................................... 10
COMPLETE PROCESS OF ENGRO DAIRY FARM NARA .............................................................. 10
The DuPont Approach ............................................................................................................................. 12
EMPLOYEES AT ENGRO DAIRY FARM NARA................................................................................. 13
Breeds of Dairy Cows ............................................................................................................................... 13
AVERAGE MILK PRODUCTION per ANIMAL per DAY AT ENGRO DAIRY FARM NARA.... 14
SAFETY MEASURES IMPLEMENTED AT ENGRO DAIRY FARM NARA .................................. 14
ENGRO DAIRY FARM NARA INVESTMENT...................................................................................... 16
OTHER FACILITIES AND OBSERVATIONS AT ENGRO DAIRY FARM NARA ........................ 16
OUR GROUP OBSERVATION ABOUT DAIRY FARM NARA ......................................................... 16
SUGGESTIONS FOR ENGRO DAIRY FARM NARA ........................................................................ 16
References: .................................................................................................................................................. 17

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Being major player in national economy livestock sector has been selected as
an economy engine for poverty alleviation from Pakistan. According to
economic survey of Pakistan 2012-13, its contribution to agriculture value
added is approximately 55.4 % and to national GDP is 11.9 %. Livestock is
raised by more than 8.5 million small and landless families in the rural
areas and 35-40 million rural populations are dependent on this.
In Pakistan livestock includes cattle, buffalo, sheep, goat, camels, horses,
asses and mules. Milk, meat, wool, hair, bones, fat, blood eggs, hides and
skins are the main livestock products among which milk and meat are
taken as major products. Besides this, these animals are used for draught
purposes.
In 1980s, dairy sector in Pakistan moved towards commercial side
and development of rural commercial dairy farms started. A typical rural
dairy farm running on commercial basis consisted of about 30 animals of
which 70% were females, including some cows. Approximately 40% of
these adult females were in milk during most of the year. Fodder crops
provided 50% and straws about 35% of the feed requirements and
concentrates made the rest of it. More than 90% of the milk produced at
the farm was sold.
With growing demand for milk in urban areas rural commercial dairy
farming moved toward peri-urban areas. In peri-urban areas there are
large and small dairy herds consisting of 20-50 animals with nearly 90% of
adult females in production. Male calves are disposed off within first two
weeks of birth. These animals are fed chopped green fodder and wheat
straw and concentrate mixture with target to sell almost total milk
produced.
Due to enhanced rate of urbanization over the last 2 to 3 decades, large
peri-urban commercial dairy farming is going towards urban commercial
farming. Targets of these farms are to get maximum milk production with
economical and quality feeding and good management. Animals on these
farms are fed good quality green fodder or silage along with concentrate
mixture. Dairy animals maintained at these farms are considered elite
animals, hence their yields per lactation are considerably higher than those
of animals maintained under other production systems. Milk produced on
these farms is either sold out in processed/fresh form through outlets or
departmental stores or supplied to dairy companies.

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Technological advances have changed dairy farming from the oldfashioned, messy and labor-intensive system of hand milking into a
bucket while sitting on a stool. Today's types of dairy farms are spotlessly
clean, efficient and often highly computerized businesses.
During last ten years major changes has been occurred in dairy sector of
Pakistan and due to these change this sector is on the way to become an
industry. A large number of modern dairy farms have been established
in different areas. Most of these dairy farms have exotic animals and
number of these animals is in hundreds and even in thousands. Dairy
farms with more than 3000 animals also exist and with 5000 animals
are in plan. Such farms have adopted most modern managemental and
feeding practices and well trained man power. Milk produced on these
farms is either sold out in processed/fresh form through outlets or
departmental stores etc. or supplied to dairy companies.
Technological advances have changed dairy farming from the oldfashioned, messy and labor-intensive system of hand milking into a
bucket while sitting on a stool. Today's types of dairy farms are spotlessly
clean, efficient and often highly computerized businesses.

Global Milk Production
There are around 250 million cows producing milk across the world. The
European Union is the largest milk producer and has about 23 million
dairy cows. This compares with 10 million in North America and over 6
million in Australia and New Zealand. Milk production is also on the
increase in South-East Asia, including countries not traditionally noted for
their milk consumption, such as China, which now has over 12 million
cows producing milk.

Higher Milk Yield
Over the last fifty years, dairy farming has become more intensive to
increase the amount of milk produced by each cow. The Holstein-Friesian,
the type of dairy cow most common in the UK, Europe and the USA has
been bred to produce very high yields of milk. Around 22 litres per day is
typical in the UK. The average yield in the US is even higher at over 30
litres per day. Milk production per cow has more than doubled in the past
40 years. If they were producing just enough to feed their calves, as nature
intended, this would be about 3 or 4 litres a day.

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TRADITIONAL MILKING and MODERN MILKING
TECHNOLOGY
Modern dairy production is
diverse with systems ranging
from cows housed indoors
year-round to cows maintained
on pasture nearly year-round.
Expansion to larger herd sizes
has allowed producers to
increase the efficiency of
production and capitalize on
economies of scale, but it has
resulted
in
environmental
challenges with larger numbers
of cattle and more manure
concentrated in smaller areas.
Engro Dairy farm is a type of
diversification
industry
by
Engro Corporation. It was
initially started at Sukkur near
Dawoo Stop to test the
animals’ survival with 100
Australian breeds. This test
was very successful, then it
was thought to start dairy farm
nearby
Sukkur,
but
unfortunately the land Engro
was trying to purchase, was high-priced therefore they shifted to Nara. It is
not only reason of shifting but there are few other causes which are as
under:
The land area needed was not available in surroundings.
Nara is sandy Area and Sukkur is not a sandy region so it gets long time
to absorb water.
Except 4 to 6 days whole the year air blows at Nara.
Traditionally dairy farming is done without using any standards and
technology. From feeding cow to milking, everything is done manually in
traditional farming. In Engro standards are being followed in rearing,
feeding and milking like feed mixing area, milking parlor and chiller etc…

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ENGRO DAIRY FARM NARA
On May 24, 2008, Engro Foods Limited (EFL), the dynamic food industry
venture of Engro, performed the ground-breaking ceremony of Engro Dairy
Farm in Nara District Sukkur, Syed Khursheed Ahmed Shah, Federal
Minister for Labor, Manpower and Overseas Pakistan performed the
ground-breaking and unveiled the plaque of the dairy farm which will be
setup near Salehpat in district Sukkur.
The project execution phase-I was completed in October 2008 with the
arrival of imported animals. They purchased 220 Acres of Land, getting on
lease about 350 Acres. On 220 Acres Engro established Dairy Farm and
350 Acres are used for Cultivation of Crops, after processing used as feed
for animals.
By setting this type of large scale commercial dairy farms, Pakistan can not
only erase domestic supply deficit but also able to fulfill a significant part
of the vacuum in the international market.
“Jersey and Jersey Holstein animals are the preferred breeds. Initially
Engro Dairy Farm has imported 1500 non pregnant heifers.
After thorough evaluation in Sindh & Punjab, the Nara Canal area was
selected by Engro Foods due to its excellent water and agricultural land
availability and suitable weather. The company will launch a
comprehensive vaccination program with provision of clean water and
balanced nutrition to have disease free, healthy and happy animals at all
times.
Engro Dairy Farm is situated in the area of Nara Taluka Salehpat District
Sukkur. Its location is 80km from Sukkur City. Engro is farm with the
largest number of animals in Pakistan. More than 4300 animals,
(Australian Breeds named, JERSEY and HOLSTEIN FRIESIAN) are
surviving at this farm. It is most high-tech milking Parlor in Pakistan.
Engro dairy farm Nara is certified from different perspectives by different
standards.
These certifications are;
ISO 9001, for Quality Management System.
ISO14001, for Environment management System.
ISO18001, for Occupational Health and Safety Management System.
ISO22000, for Food Safety Management System.
It is also certified by Global Gas and Halal being a Muslim country so the
products must be assured to be Halal before eating).
Engro Foods will place experienced expatriates in key positions to ensure a
smooth startup of the operations, however, local staff will be attached with
experienced expatriates for on-the-job training for which a base team is
already in place. The Engro Dairy Farm is expected to open new
opportunities for the locals and provide great learning in livestock
management
for
enhancing
yield.

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ORGANIZATIONAL STRUCTURE AT ENGRO DAIRY FARM NARA

Farm
Manager

Admin

HR

Procurement

Engineering

Finance &
Accounts

Supply
Chain

Civil

Mechnical

Crop
Manager

Electrical

Live Stock
Manager

Veternary
Doctors

Quality
Assurance

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TECHNOLOGY USED AT ENGRO DAIRY FARM NARA
GEA FARM TECHNOLOGY (used at Engro Dairy Farm Nara)
The GT2 Parabone combines the best of herringbone and parallel stalls in an
economical parlor solution. Compact 30-inch stall spacing and parallel-stall-style
udder access provides efficient milking from the side or between the rear legs.
In this Technology 60 cows can be milked within 06 minutes.

DELAVAL TECHNOLOGY
This technology is used in milking parlor named as Dela Wall, it is half of
the size of GEA Tech and used especially to milk pregnant, injured and ill
cows, it is also used to milk the first milk of cow. It can milk 32 cows at a
time and one cow in 5 minutes.

BACKWARD INTEGRATION
By setting up Engro dairy Farm at Nara, Engro Corporation has benefiting
its unit of Engro Foods Sukkur, this Dairy Farm is facilitating to ensure a
more reliable or cost-effective supply of inputs.

COMPLETE PROCESS OF ENGRO DAIRY FARM NARA
Complete Process of Engro dairy farm Nara contains following steps:
Food Making
Food for Animals made by Engro is kept hygienic and frequently digestive.
Following processes are involved in food making.
Fodder Selection:
Fodder should contain adequate amount of fermentable carbohydrates and
more than 65% moisture in fodder selected for silage making. Commonly
used fodder for silage making are maize, millet, oat, and sorghum grass
and they all are used at Engro throughout the year. Most of the time maize
is used for silage making as maize silage is considered the best silage
throughout the world.
Harvesting and Chopping of Fodder:
As the Engro has its’ own leased land of about 350 Acres, so they produce
good crops, also purchase maize from open market after testing it from all
perspectives. Grab test is used to measure the moisture concentration in
fodder. Use maize chopper for harvesting and chopping of fodder.

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Mixing Additives:
Different feed additives may be mixed to stimulate or inhibit the microbial
activities in silage. These additives may include:
Inorganic chemical - Calcium carbonate, magnesium carbonate,
ammonium sulphate, sodium sulphate, zinc sulphate, copper sulphate,
ferrous sulphate, manganese sulphate, sodium chloride, sodium nitrite,
calcium phosphate, calcium silicate and phosphoric acid.
Organic chemicals - Acetic acid, citric acid, benzoic acid, formic acid,
lactic acid, propionic acid, formaldehyde, ethylalcohol, propylene, glycol,
gention violet, lactate, sodium gluconate, ethyl acetate, ethyl butyrate,
ethyl diamine, dihydro iodine and urea etc.
Feed stuffs - Used as silage additives are wheat bran, crushed maize,
starch, dextrose, molasses, whey and yeast etc.
Fermentation products and microorganism - A few enzymes, extract of
fungi and several species of microorganism like Lactobacillus acidophilus,
Turolopsis species, Bacillus subtilis etc.
Baling of Silage
After chopping and adding additives silo is filled. Inside silo chopped
fodder is compressed with silage baler, silage baler makes bale in well
compacted form. so that it is packed tightly and there is no air left. If air
left anaerobic condition will not be created.
Time of silage readiness:
After a period of 40-45 days the silage is ready for feeding to the livestock.
This whole process makes silage good for animals and also makes it 60%
digestive than the ordinary feed.
Cow’s preparedness Milk
A dairy cow needs to give birth to a calf in order to produce milk. At Engro
Dairy Farm a calf reaches at Estrus at 6-9 months’ age. The ‘dry’ period is
similar to an adult going on maternity leave, where the cow will rest and
prepare for the birth of her calf. It is the period of lactation when cow’s
milk is prepared in cows tits. A cow gives birth to a calf after 09 to 10
months.
Milking Process
The milking process on Engro consisted of following steps
 Extracting milk from animals
 Chilling Milk and sending to tank

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 Transporting the milk to a storage tank
 Storing the milk until it is picked up for processing.

There is good cooperation between cows and operators, the cows
automatically come to parlor at the time of milking, we saw that the door
was opened and cows came themselves and stand in comfort top. The
workers came firstly to clean tits with tissue, cluster the cow, then it
started milk extraction and after milking pyodine was used on each
animal’s tits.
Along with milk extraction, extracted milk went to the chillers to be cooled
and stored to the tanks. The milk is stored until and unless it is
picked/transported for processing. Engro Dairy Farm itself has storage
capacity of 70,000 liter on the plant.
Logistics
Engro dairy delivers its milk to processing industry by trucks with tanks
especially made for milk logistics.
The DuPont Approach
DuPont is safety standard applied at Human and Animal at any Farm or
Plant. DuPont PSM involves the integration of three broad dimensions:
Facilities to manufacture and handle hazardous materials
Technology of the process
Personnel who operate, maintain, and support the process.

Engro dairy Farm at Nara has achieved 3.6 rating in DuPont out of 5, and
achieving >=2 is a standard.

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EMPLOYEES AT ENGRO DAIRY FARM NARA
Permanent Employees:
33
Third Party Contractual: 145
NO. and KIND OF ANIMALS AT ENGRO DAIRY FARM NARA
About 4300 Animals of Austrailian Breeds are surviving at Dairy Farm.

Breeds of Dairy Cows
There are many breeds of cows in Australia but the main dairy cattle
breeds are Holstein Friesian, Jersey and Aussie Red, all of which have
different shapes and colours.
Two breeds , 1) JERSEY 2) HOLSTEIN are available at Engro Dairy Farm
Nara.
JERSEY
Origin
Jersey Cows originally came from the island of Jersey (in the English
Channel between England and France). They were bought to Australia in
1829.
Looks like
These cows are fairly small, and
fawn in colour, with black tips
on their muzzles, ears, feet and
tail.
Interesting facts
A Jersey cow’s milk is ideal
for making butter because it
is so creamy
Jerseys are the smallest of all dairy cows and can weigh up to 500kg.
Jersey’s are the second most common breed in Australia.

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HOLSTEIN
Origin
Holstein cows originally came from the Netherlands, but many breeding
animals now come from North America.

Looks like
These cows are mainly black
and white.

Interesting facts
Holstein cows are the most popular in the world.
Of Australia’s 1.7 million dairy cows there are 1.4 million Holstein
cows.
Holsteins can be found in every Australian state, Victoria has the
most.
Holstein cows produce large quantities of milk; some cows produce
10,000 litres in a year; that’s equal to 5000 x 2 litre milk cartons
every year or 14 x 2 litre cartons every day.
Holsteins are one of the biggest dairy animals; cows can stand over 150cm
tall and weigh over 600kgs while bulls stand over 180cms tall and weigh
over 1000kg (about the same as a small car).
Note: Average Life of these Breeds is about 06-08 years.

AVERAGE MILK PRODUCTION per ANIMAL per DAY AT
ENGRO DAIRY FARM NARA
Per Day average Milk production of per Animal:
Approx: 26 Liters
Per Day Average Milk production of Whole Farm: Approx: 35000-43000
Liters

SAFETY MEASURES IMPLEMENTED
FARM NARA

AT ENGRO

DAIRY

At dairy farm all safety measures has been implemented in all units. By
doing this Engro dairy Farm at Nara has achieved 3.6 rating in DuPont
out of 5, and achieving >=2 is a standard.

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Engro dairy farm has received ISO 18001 for health and safety because of
its efforts regarding steps taken towards animal and human protection.
Animals: To make animals secure and safe in Engro, different barns and
yards are made for different nature of cows like they divided cows into
pregnant cows at initial stage and final stage, Estrus or standing heat and
calves. And to prevent diseases they timely diagnose animals, seven
doctors are also hired for that purpose. If any human (Visitor or Worker)
comes from outer atmosphere to Engro they are showered with a
substance, so they can prevent cows as well as humans.
Animal’s survival: Most dairy cows are housed during the winter and bad
weather. The cows can move freely, socialize and eat and drink when they
want in sheds which are made by Engro that have natural light.
Normal Diet: At Engro each cow is provided balanced diet. Each dairy cow
eats between 25 and 50 kilograms of feed each day. A dairy cow drinks
around 60 litres of water per day. Some cows may need up to drink 100
litres, or more, depending on how much milk they produce.
Confined spaces: Such as silos, water tanks, milk vats and manure pits
may contain unsafe atmospheres, which can cause poisoning or
suffocation. To entre those places different safety procedures are essential
to apply and wear different type of clothing and shoes.
Electricity: Everyone in the farm is made aware of dangers include faulty
switches, cords, and machinery or overhead power lines.
Workplace Health: The Occupational Health program at Engro includes
industrial hygiene and occupational medicine aspects, focusing primarily
on reducing health risks of employees. Two doctors are also hired. They
monitor their employees regularly in comparison with the risks they are
exposed to, taking all necessary steps to reduce these exposures.
Heights: For climbing stairs special instruction is written on every step of
stair to avoid any major injury or accident.
Machinery: Each and everyone in the Engro farm is informed about all
machineries involve risk. The operators are also trained to run machineries
accordingly.
Vehicles: To avoid major accidents drivers and riders are directed to move
their vehicles with velocity of 15km/hour. Vehicles are also passed through
chemical substance at entrance to avoid diseases. Separate walking tracks
are also made to evade industrial accident.

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Weather: Hazards include sunburn, heat stroke, dehydration and
hypothermia. To prevent animals from such hazards special barns are
made with fans. For workers it is allowed to leave the work on the spot and
no one can force worker to continue process even CEO.
Apart from that every worker is instructed to wear tight cloths. Engro’s risk
management & emergency preparedness is qualitative, emergency
assembly halls are made to be gathered on emergency assembly halls to set
plans of solving emergency and everyone is assigned task to steer clear of
mismanagement and chaos.

ENGRO DAIRY FARM NARA INVESTMENT
Initial Investment at Dairy farm was Rs. 40.00 Millions, according to their
officials now re-investment is double than initial investment.

OTHER FACILITIES AND OBSERVATIONS AT ENGRO DAIRY
FARM NARA
Disinfectant shower is good for Animal Health.
Walking track at farm was not constructed properly.
Only one person of Engineering Department covers All other
departments; Civil, Mechanical and Electrical.
Waste bales of fodder were placed at open air, not disposed off
properly.

OUR GROUP OBSERVATION ABOUT DAIRY FARM NARA
This is an excellent example of Entrepreneurship, because Engro taken
risk, initiated 100 animals little farm at Sukkur. After that they take a high
risk by investing huge amount in Engro Dairy Farm Nara.

SUGGESTIONS FOR ENGRO DAIRY FARM NARA
Disinfectant shower should be applied at exit time also, because it is
good for human Health as well.
At the time of fire at night, there should be a exit track of radium
lights inside the Power plant, ware house and all buildings.
Organizational structure should be re-organized at Dairy Farm.
A proper disposal unit for manure and waste bales should be
designed at Farm.
Increase greenery at Farm House.

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References:
Syed Rizwan H. Bukhari (Farm Manager EDF.)
Mr. Amjad Farooque Bhatti (Eng. Deptt: EDF.)
Mr. Ahmed Hassan Usmani (Farm Accountant at EDF.)
www.pakdairyinfo.com
www.engrofarm.com
www.images.google.com
www.engrofoods.com

The End

Engro dairy farm nara report

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