184 Food Feasibility

8/6/2019 184 Food Feasibility

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Pre-Feasibility Study

ABATTOIR

(Slaughterhouse)

Small and Medium Enterprise Development AuthorityGovernment of Pakistan

www.smeda.org.pk

HEAD OFFICE

6th Floor LDA Plaza Egerton Road, LahoreTel 111 111 456, Fax: 6304926-7 Website www.smeda.org.pk

[email protected] OFFICE

PUNJAB

REGIONAL OFFICE

SINDH

REGIONAL OFFICE

NWFP

REGIONAL OFFICE

BALOCHISTAN

8th Floor LDA Plaza EgertonRoad, Lahore

Tel 111 111 456, Fax:6304926-7 Websitewww.smeda.org.pk

[email protected]

5TH Floor, BahriaComplex II, M.T. Khan Road,

Karachi.Tel: (021) 111-111-456

Fax: (021) [email protected]

Ground FloorState Life Building

The Mall, Peshawar.Tel: (091) 9213046-47


Bungalow No. 15-AChaman Housing Scheme

Airport Road, Quetta.Tel: (081) 831623, 831702


September, 2007


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Pre-Feasibility Study Abattoir (Slaughterhouse)

PREF-35/September, 2007/Rev 22

DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject

matter and provide a general idea and information on the said area. All the material

included in this document is based on data/information gathered from various

sources and is based on certain assumptions. Although, due care and diligence has

been taken to compile this document, the contained information may vary due to any

change in any of the concerned factors, and the actual results may differ substantially

from the presented information. SMEDA does not assume any liability for any

financial or other loss resulting from this memorandum in consequence of

undertaking this activity. Therefore, the content of this memorandum should not be

relied upon for making any decision, investment or otherwise. The prospective user

of this memorandum is encouraged to carry out his/her own due diligence and gather

any information he/she considers necessary for making an informed decision.

The content of the information memorandum does not bind SMEDA in any legal or

other form.

DOCUMENT CONTROL

Document No. PREF-35

Revision 2

Prepared by SMEDA-PunjabApproved by Provincial Chief Punjab

Issue Date September, 2007

Issued by Library Officer


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1 INTRODUCTION ...........................................................................................5

1.1 THE CONCEPT OF SLAUGHTER IN ISLAM .....................................................5

2 PROJECT BRIEF ...........................................................................................6

2.1 PROJECT BRIEF ..........................................................................................6

2.2 PROJECT SCOPE .........................................................................................6

3 CURRENT INDUSTRY STRUCTURE .........................................................6

3.1 EXPORT OF MEAT ......................................................................................73.2 MEAT MARKETS........................................................................................83.3 OPPORTUNITY RATIONALE.........................................................................83.4 PER CAPITA AVAILABILITY OF MEAT .........................................................9

4 THE CURRENT SLAUGHTERING PRACTICES.......................................9

4.1 PUBLIC SECTOR .........................................................................................94.2 PRIVATE SECTOR MODERN ABATTOIRS....................................................10

5 MARKETING................................................................................................10

6 CAPACITY....................................................................................................11

6.1 PRODUCT MIX .........................................................................................12

7 PREMISES AND SITE FOR SLAUGHTERHOUSE..................................13

7.1 SLAUGHTERHOUSE PREMISES...................................................................137.2 SITE SELECTION.......................................................................................137.3 LAND AND BUILDING ...............................................................................137.4 MATERIALS FOR CONSTRUCTION AND INSTALLATION...............................14

8 OPERATIONAL PROCESSES ....................................................................14

8.1 LAIRAGE .................................................................................................148.2 SLAUGHTERING .......................................................................................148.3 BLEEDING ...............................................................................................158.4 SKINNING ................................................................................................158.5 EVISCERATING.........................................................................................158.6 POST-MORTEM INSPECTION......................................................................158.7 RIGOR MORTIS PROCESS ..........................................................................158.8 PROCESS FLOW OF SLAUGHTERHOUSE......................................................16

9 HUMAN RESOURCE REQUIREMENTS ..................................................17

10 FACILITIES, EQUIPMENTS AND TOOLS .........................................17

10.1 WATER AND DRAINAGE...........................................................................1710.2 LIGHTING AND VENTILATION ...................................................................1810.3 EQUIPMENT .............................................................................................1810.4 SLAUGHTERING TOOLS ............................................................................20

10.4.1 Skinning Knife.................................................................................21

10.4.2 Meat Saw........................................................................................21

10.4.3 Meat Chop: .....................................................................................21


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10.4.4 Spreader: ........................................................................................21

10.4.5 Grinding and Honing Stones:..........................................................21

10.4.6 Steel:...............................................................................................21

10.4.7 Meat Tree/Hooks: ...........................................................................21

10.5 VAN ........................................................................................................22

10.6 RAW MATERIAL ......................................................................................2211 REGULATIONS.......................................................................................23

11.1 REGISTRATION ........................................................................................2311.2 TAXATION ...............................................................................................2311.3 LAWS ......................................................................................................23

12 PROJECT ECONOMICS........................................................................24

12.1 PROJECT COST.........................................................................................24

13 FINANCIAL ANALYSIS.........................................................................25

13.1 PROJECTED BALANCE SHEET ...................................................................25

13.2 PROJECTED PROFIT &LOSS STATEMENT ...................................................26PROJECTED CASH FLOW STATEMENT ...................................................................27

14 KEY ASSUMPTIONS..............................................................................28

TABLE 14-1 OPERATING ASSUMPTIONS ................................................................28TABLE 14-2 COST ASSUMPTIONS..........................................................................28TABLE 14-3 SALES ASSUMPTIONS ........................................................................28

15 ANNEXURE .............................................................................................30


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11 IINNTTRROODDUUCCTTIIOONN

11..11 TThhee CCoonncceepptt ooffSSllaauugghhtteerr iinn IIssllaamm

I find not in the message received by me by

inspiration any (meat) forbidden to be eaten by one

who wishes to eat it, unless it be dead meat, orblood poured forth, or the flesh of swine, for it is an

abomination or, what is impious, (meat) on which a

name has been invoked, other than God's. But (even

so), if a person is forced by necessity, without

willful disobedience, or transgressing due limits,

thy lord is oft forgiving, most merciful.

(Al- Anam 145)

The Quran has numerous injunctions, instructing its followers to choose andconsume good and wholesome foodstuffs. Islam places a very strong emphasis on

cleanliness and hygiene in every sphere of life. As such, before performing our dailyprayers, ablution, as means of cleaning ourselves, is compulsory, and must beperformed in the correct manner. The concept of cleanliness is also extended tomatters, especially in context of food and drink.

Islam has introduced the concept of slaughter, whereby a naturally Halal animalwould have to be properly slaughtered prior to consumption. The act of slaughteringis to ensure the quality of meat and to avoid any microbial contamination. Forexample, a dead but unslaughtered animal is normally associated with disease.Therefore, slaughtering is mandatory to ensure the complete drainage of blood fromthe animal's body, thus minimizing the chance of microbial infection. This iscompatible with the overall concept of cleanliness that is always emphasized in

Islam.

To determine the Halal/Haram status of foodstuffs and other materials, Islam has laidgeneral guidelines on this matter, namely:

All the raw materials and ingredients used must be Halal.

Naturally Halal animals, such as cattle, goats etc. must be slaughtered accordingto Islamic rites, the rituals specified.

The act must be performed by a mentally sound Muslim, to sever the blood andrespiratory channels of the animal, using a very sharp cutting tool such as aknife.

The Halal ingredient must not be mixed, or even come into contact with Haram

materials, during storage, transport, cooking, serving, etc.

The production of Halal food is not only beneficial to Muslims, but also to non-muslim food producers, by means of an increased market acceptance of theirproducts.


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22 PPRROOJJEECCTT BBRRIIEEFF

22..11 PPrroojjeecctt BBrriieeff

The pre feasibility is about setting up a facility where farm animals are killed andprocessed into meat products. The animals that will commonly slaughter for food are

cattle (beef & veal), sheep (lamb & mutton).This slaughter house will be set onmodern standards and promise to provide highly hygienic meat products for localsales as well as for export purpose.Total project cost is worked out to be 97.374 million, which includes the capital costof Rs.84.023 million and contingencies and working capital of Rs.13.351 million.

22..22 PPrroojjeecctt SSccooppee

The subject feasibility study provides information about the investment opportunityin an abattoir (Slaughterhouse). The abattoir will provide slaughtering and alliedservices to the local traders, and butchers. However, some of its capacity will beutilized for slaughtering animals for own supply of meat in the local as well as in theinternational market, hence contributing towards earning foreign exchange for thecountry.

The proposed project will also have the potential for further development of animalby-products processing industry.

The slaughterhouse will be technically equipped for slaughtering cattle; sheep, goatsetc. will also have the potential for further operations such as by-productprocessing/utilization, meat preservation, meat processing butchering anddevelopment of meat market.

33 CCUURRRREENNTT IINNDDUUSSTTRRYY SSTTRRUUCCTTUURREE

There is a huge shortage of slaughter animals for meat supply. The animal growthcycle needs a certain period to fill the gap made by slaughtered animals but rapidincrease in daily use, change in consumption patterns, use of more meat in food tableand economic up lift has increased the demand by many folds resulting inslaughtering of premature animals, poor carcass quality and quantity wise andincrease in price. If this practice continued, there would be a huge gap betweensupply and demand, forcing the import of meat at large scale. At present smallruminant are mainly coming from the range/rain fed areas where feed resources arenot sufficient to bear the animal production requirements. So, most of the casesrange areas are either over crowded or with out grazing systems, resulting in poor

nutrients supply to animals and damage to rangelands themselves. The disappearanceof desirable fodder species and propagation of unwanted plants make this situationworsened for future also.

The 3 slaughterhouses present in Lahore (Kot Kumboh, Shahdrah and Baghbanpura)are meeting the only 75% of daily requirements and rest of meat is slaughtered atdifferent areas illegally. Now it is need of time that if public sector can not meet thechanging trade scenario and export standards (as evident from many reports), theprivate sector should be developed for this purpose. The loans to set modern abattoir


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with hygienic production facilities should be granted on easy terms. Furthermore,the Sanitary and phytosanitary (SPS, 1994) Agreement also demands under theUruguay Agreement, to define rules for setting national standards and regulationsrelating to sanitary and phytosanitary measures to protect human or animal healthfrom specific risks, including risks arising from animal diseases and food safety.

Under this act more stress was given on animal health than food safety.

33..11 EExxppoorrtt ooffMMeeaatt

The export of meat from Pakistan is relatively a new segment of countrys trade, asthe real commercial level export started in not before than. Thus, the export of meatand meat preparation is not so high; but the export growth rate is quite encouraging.Pakistan owns a large inventory of livestock, which determines a large size of meatexports in future. So, meat export is bound to be a good contributor to Pakistansforeign exchange in the years ahead. In year 2000-01, the export of beef was 715metric tons (value 1.1 Million US $) whereas 3303 metric tons of mutton (value 5.8million US $).

Despite an increase in meat production, the prices have moved upward abnormally.The recent increase in meat prices is attributed to the export of live animals or meatto the Middle East and Afghanistan. The country, though rich in livestock, rarely gota chance to export meat or meat products to earn foreign exchange. It was offered anopportunity when various Middle East states stopped importing meat from Europeancountries due to the incidence of the mad cow disease. Meat export from Lahorestarted in the beginning of the year 2000 when carcasses of goats and large animalswere airlifted. The meat was processed under a special arrangement between theexporters and the Metropolitan Corporation of Lahore, which runs four abattoirs inthe city.

The exports of livestock such as cow, buffalo, sheep and goat are finding their wayto the Gulf States, Iran and Afghanistan where there is a shortage of good qualitymeat, hence fetches a high price.

Table 3-1: Export of Goat/Sheep Meat from Pakistan to other countries (000,

Kg)1

Countries. 2004 2005 2006

Saudi Arabia 2,821 2,915 2,983

United Arab Emirates 820 847 1,158

Oman 294 461 540

Bahrain 178 235 211

Qatar 387 389 505

Kuwait 246 546 883

1 Source: UN comtrade


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33..22 MMeeaatt MMaarrkkeettss

Currently, meat sector in Pakistan is working on an informal basis from animalraising to meat selling. Animal traders purchase animals from the rural areas and sellthem to the animal markets in the urban areas. Butchers purchase these animals fromanimal markets and slaughter them in the slaughterhouses. Butchers act as meat

traders and dominate the meat market both in rural and urban areas. The animals soldin these markets are generally diseased and culled animals. Butchers/traders prefer tobuy these cheap animals. Pakistan is one of the cheapest beef producers in the worldas the live weight value per kilogram is lowest in the world because of the cheap rawmaterials available.

33..33 OOppppoorrttuunniittyy RRaattiioonnaallee

Pakistan is situated along both sides of the historic Indus River, following its coursefrom the mountain valleys of the Himalayas down to the Arabian Sea. It sharesborders with India, China, Afghanistan and Iran. Its 796,095 square kilometerterritory includes a wide variety of landscapes, from arid deserts to lush green

valleys to stark mountain peaks. The estimated human population is 153. 96 millionwith annual growth rate of 2.9 %. Of the total population, 65.9 % live in rural areas.Punjab is the most populated of the 4 provinces, having 56% of the countryspopulation while Sindh (23%), NWFP (16%) and Balochistan (5%) provinces sharethe rest. Agriculture is the mainstay of Pakistans economy. Livestock sectorcontributes almost 50 percent to the value addition in the agriculture sector, andalmost 11 % to Pakistans GDP, which is higher than the contribution made by thecrop sector (47.4% in agriculture and 10.3 % in GDP). The role of livestock sector inthe rural economy of Pakistan is very critical. The livestock population andproduction for the last five years are given in Tables

TTaabbllee 33--22 PPooppuullaattiioonn oofflliivveessttoocckk ((mmiilllliioonn nnooss))Species 2001-02 2002-03 2003-04 2004-05 2005-06

(E)

Percentage

slaughtered/

year

Cattle 22.8 23.3 23.8 24.2 25.5 10.0

Buffalo 24.0 24.8 25.5 26.3 28.4 15.4

Sheep 24.4 24.6 24.7 24.9 25.5 41.5

Goats 50.9 52.8 54.7 55.6 61.9 41.8

Camel 0.8 0.8 0.7 0.7 0.7 Data Not

available* E= Estimated

*Source = Economic Survey of Pakistan, 2005-06

TTaabbllee 22:: PPrroodduuccttiioonn ooffLLiivveessttoocckk PPrroodduuccttss::

Products (000, tons) 2003-04 2004-05 2004-05 (E)

Beef 1087.0 1115.0 1174.4

Mutton 720.0 739.0 782.1


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33..44 PPeerr CCaappiittaa AAvvaaiillaabbiilliittyy ooffMMeeaatt

Per capita availability of meat is 12 kg, most of which is from buffalo and cattle. Itmay, however, be mentioned that population statistics and statistics on theavailability of products from various sources differ drastically. To meat the domesticdemand of meat, the rate of growth must be at least 5-7 % per annum.

The demand of livestock food products is growing fast because Pakistan's humanpopulation is increasing at the rate of 2.9 per cent annually. If population pressurecontinues to grow and livestock production stays at the same level, then food deficitmay become larger. According to one recent survey, in coming years, milk, red meatand poultry meat deficit will be 9.72, 0.17 and 0.14 million tonnes if our livestockproduction stays at the same level.

Therefore there is need of establishment of slaughterhouse facilities of a sufficientlyhigh standard but still simple would improve the situation. Therefore, this pre-feasibility study has been made of a medium size slaughterhouse equipped withmedium level semi mechanized technology. By providing value added services, the

slaughterhouse can utilize the abundant and unexplored resources of Pakistan.

44 TTHHEE CCUURRRREENNTT SSLLAAUUGGHHTTEERRIINNGG PPRRAACCTTIICCEESS

44..11 PPuubblliicc SSeeccttoorr

For carrying out study of present slaughtering practices Lahore market has beenselected. In Lahore, there are four slaughterhouses owned and managed byMunicipal Corporation Lahore (MCL) at Kot Kamboh, Baghbanpura and Shahdarawith Slaughtering capacity for 6,700 small and 610 large animals. This capacity issufficient for meeting only 75% meat requirement of the city. The remaining 25% isbeing supplied from outside the city, and by illegal slaughtering.

Indeed the present premises are fairly old structures, had been built several yearsago, and at when a time municipal engineering and public health requirements wereless stringent and different from those prevailing now. These slaughterhouses handlethe bulk of public slaughters, and as such, they are not slaughterhouse but can bereferred to as slaughter slabs merely a place for slaughter with no proper


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arrangement of hygiene and sanitation. These premises merely make facilitiesavailable for use by butchers and traders (not licensed) for the slaughter of livestockat fee of Rs. 10 per small animal and Rs.20 per large animal.

No storage facility and sufficient quality control measures are available there. Mostof the times, Meat gets rotten especially in summer season. This problem is

intensified while the meat is sold through the butchers shops to final customers. Allthe meat is not sold to customers in daytime, and not all the unsold meat is frozen tokeep it in hygienic condition.

The primitive conventional fashion slaughtering results in wastage and damage toby-products. There is also lack of essential allied facilities. The prevailing conditionsare discouraging for the export of meat and meat by-products.

44..22 PPrriivvaattee SSeeccttoorr MMooddeerrnn AAbbaattttooiirrss

There is only one modern abattoir working in private sector in the whole province ofPunjab. It is semi mechanized and has minimum required facilities for export of

meat in Middle East countries. It is located near Mureedka on MureedkaShiekhupura road currently this slaughterhouse can process 500 small animals perday. Another slaughterhouse is situated at Kot -Lakhpat, which has only a chiller andno slaughtering and de-skinning facilities. These slaughterhouses have insufficientcapacity to fulfill the local and international demand for meat.

55 MMAARRKKEETTIINNGG

The proposed slaughterhouse will identify and develop such services and productsthat will help to cater the unfulfilled market for quality meat and its by-products inan effective and efficient manner on the following grounds:

The slaughterhouse, duly equipped with modern facilities and hygienic standards,can carve a niche in the existing market through properly defined segments andcreate a competitive strength over municipality-owned and managedslaughterhouses. This unique marketing position can be attained through formulationan adequate marketing mix. The slaughterhouse can achieve differential competitiveadvantage by.

Physical differentiation through distinguishing own product in quality andappearance.

Psychological differentiation through labeling, stamping, packing advertisement,salesmanship and sales promotion.

Differentiation through its distinctive environment of pleasant surroundings,

personal attention and improved services. Differentiation through physical distribution capabilities by making meat readily

available at customers doorstep.

Differentiation through pricing and terms of sales and services.

The following type of services will be offered:-

Direct sale of meat in local preferably in Lahore (Small Animal)


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And direct sale in international markets preferably UK(Large Animal)

Slaughtering services to local butchers and traders (Slaughtering and chillingservices to exporters, to fill the gap of capacity.

The financial model of this business plan depicts the picture of product mix of the

above options. The prices of services have been taken at current/prevailing marketand there is a margin to decrease prices of services offered.

The decision of selecting the distribution channel will be based on the identificationof target market.

For local market, the slaughterhouse can target the needs of health conscious peoplethrough departmental stores, chain stores, other retail outlets, but in the initial stage,opening of own retail outlet is not recommended, because it will require investmentand specialized skills of retailing business. It is planned to distribute 30 refrigeratorsto major departmental stores of Lahore filled with product free of cost, and a marginof 5% will be offered to shop keepers on selling each product

Foreign contracts can be obtained with the assistance of Export Promotion Bureau(EPB). The management of EPB is already working on it to facilitate the export ofmeat. The slaughterhouse can also serve the existing meat exporters.

66 CCAAPPAACCIITTYY

The capacity of the proposed slaughterhouse is 900 small (goats) and 300 large(cattle) animals per day. The capacity utilization varies depending on the staffefficiency and availability of animals.

TTaabbllee 66--11SSllaauugghhtteerr HHoouussee CCaappaacciittyyPercentage

Share DaysPer day

Capacity Annual No

Small Animals 75% 360 900 324,000

Large Animals 25% 360 300 108,000

Total Capacity 100% 432,000

Abattoirs capacity will be divided in 1) for own supply of meat, and 2) forslaughtering and chilling meat services to local trader on fifty percent basis.

TTaabbllee 66--22 CCaappaacciittyy UUttiilliizzaattiioonnSr. No Description Share in Percentage

1 Owners share 50%

2 Services to local traders/butcher 50%

Total 100%


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To make it more prudent, starting capacity is assumed to be 35% and 85%capacityutilization has been assumed to be attain in ten years with a growth rate of 10%.

66..11 PPrroodduucctt MMiixx

Following meat products will be offered to Lahore market (initially), Cattle (veal,beef) meat will be produced for local as well as for export purpose on 20:80 percentrespectively.

TTaabbllee 66--33 PPrroodduuccttss ((GGooaatt MMeeaatt))Sr. No. Products Share in Percentage

1 Bone less 20%

2 Mixed meat 40%

3 Minced meat 23%

4 Pieces 15%

5 Full 2%

TTaabbllee 66--44 PPrroodduuccttss {{CCaattttllee ((bbeeeeff,, VVeeaall))}}Sr. No. Products Share in Percentage

1 Veal meat(Bone less) 40%

2 Minced meat 35%

3 Mixed meat 25%

Following by products can/will also serve as a revenue generating source.

TTaabbllee 66--55 BByy PPrroodduuccttssSr. No. By Products

1 Skin

2 Feet and Head

3 Intestines

4 Pluck

5 Dried Blood

Following services will be provided to the local traders, and butchers to earn

significant revenue.

TTaabbllee 66--66 SSeerrvviicceessSr. No Services (Facility)

1 Cold Storage

2 Slaughtering Service


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77 PPRREEMMIISSEESS AANNDD SSIITTEE FFOORR SSLLAAUUGGHHTTEERRHHOOUUSSEE

77..11 SSllaauugghhtteerrhhoouussee PPrreemmiisseess

Modern abattoirs have a proper abattoir design, equipment and services. Proposedabattoirs will be operated on industrial lines like a process type industry with a wide

range of services featuring cold storage, processing, proper byproduct utilization andwaste management activities.

77..22 SSiittee SSeelleeccttiioonn

Slaughterhouses should be situated at a distance from the residential areas. This is toprevent possible inconvenience to the residents, either by way of pollution fromslaughter wastes or by way of nuisance from noise or stench/smell. For this reportwe are proposing a place in Raiwind, Lahore.

Conversely, remote location secures the premises from contact and likelycontamination from residential units close by. Nevertheless, some proximity to the

city or town should be maintained to take advantage of vital services such as powerand water supplies.

Another feature of the area selected is that it must be open, treeless and with aircurrents to provide for natural lighting and ventilation as dark environments cancause lapses in hygiene while stagnant air can induce growth of germs on meat andmeat handling equipment. Trees also attract birds, which are agents ofcontamination.

Slaughterhouse premises near waterlogged areas must be avoided. Evidently, suchsites can raise sanitation problems as in the breeding of mosquitoes and stagnation ofwastes. Where possible, the location of the plant should be made at a higher

elevation relative to the surroundings.Location near watercourses or inland bodies of water such as rivers, lakes andlagoons is also inadvisable. This is to avoid the temptation of discharging wastes intothe waters with consequent pollution and cross-contamination of the premises.Liquid waste can, however, be discharged into these waters provided it is treated andrendered safe for aquatic life or for humans using the waters.

77..33 LLaanndd aanndd BBuuiillddiinngg

Slaughter house will be built on the area of 2 Acres / 16 Kanals or 72,000 sq. ft. Thedetails of land utilization are given in below.

TTaabbllee 77--11 LLaanndd CCoossttLand In Kanals Cost in Rs.

2Acres 16 12,800,000 /acreTotal Cost 25,600,000


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TTaabbllee 77--22 CCoovveerreedd AArreeaaDescription Sq ft. Construction Rate

per Sq ft.

Total Cost

Factory 9,000 1200 10,800,000

Animal2 sheds &boundary 57,000 350 19,950,000

AdministrationBlock 1,500 800 1,200,000

Covered area 67,500

Open space 4,500 150 675,000

Total Area 72,000 32,625,000

77..44 MMaatteerriiaallss ffoorr CCoonnssttrruuccttiioonn aanndd IInnssttaallllaattiioonn

The general principle regarding the choice of materials for constructing andequipping slaughterhouse is that the materials must be durable and be able to resistdeterioration or destruction from external influences such as the weather, air, steam,water and insects. This means that materials such as swish; wood, thatch andcorrugated iron are undesirable. Instead, brick, stone, reinforced concrete, asbestos,tile and slate should be used.

For the operating chambers, materials used must not be pervasive to water and bloodor stained by fat; glazed tile or a hard smooth material should be used for the walls to

facilitate cleaning and prevent absorption of moisture and fat. A similar principleshould apply to the selection of equipment for the chambers; stainless steel,galvanized metal and aluminum are good choices for metal fittings or furnishingswhile plastics may suit containers and working surfaces.

88 OOPPEERRAATTIIOONNAALL PPRROOCCEESSSSEESS

88..11 LLaaiirraaggee

The animal should be given rest for at least 12-18 hours before slaughtering and onlywater should be given to it in this process.

88..22 SSllaauugghhtteerriinngg

Slaughters are done manually. The animal being cast down is laid on its back, whilethe neck vessels and passages (esophagus and trachea) are severed by a single slashof a sharp knife. Bleeding proceeds to completion.

2Req. Area per small animal is 15 sq.ft, per large animal is 50 sq.ft,( 2 days animals in stock)


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88..88 PPrroocceessss FFllooww ooffSSllaauugghhtteerrhhoouussee


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99 HHUUMMAANN RREESSOOUURRCCEE RREEQQUUIIRREEMMEENNTTSS

It is essential to provide adequately trained staff to carry out the above processes andimprove slaughter hygiene and meat quality, reduce raw material losses, increaseutilization of by-products, and thereby increase profitability. To meet this objective,proper training is required for the meat workers who are to operate these facilities.

The type of personnel needed and their cost is given in financial analysis.

TTaabbllee 99--11 HHuummaann RReessoouurrccee RReeqquuiirreemmeennttDescription No. Per month Annually

Administrative Salaries

General manager 1 55,000 660,000

Accountant 2 10,000 240,000

Drivers 1 5,500 66,000

Personal & Admin. Officer 1 8,500 102,000Peon 2 4,000 96,000

Gardener 2 3,500 84,000

Security Guards 2 5,500 132,000

1,380,000

Operation Salaries

Vetniery Doctor 2 12,000 288,000

Nutritionist 1 40,000 480,000

Lab technician 1 20,000 240,000

Un Skilled labor 10 5,000 552,000

Helper 12 3,500 840,000

Slaughterers3 300per animal 52,920,000

55,320,000

Total 56,700,000

1100 FFAACCIILLIITTIIEESS,, EEQQUUIIPPMMEENNTTSS AANNDD TTOOOOLLSS

1100..11 WWaatteerr aanndd DDrraaiinnaaggee

The slaughterhouse must have a dependable source of clean water, preferably pipe-borne, to maintain hygienic and sanitary services in the plant. The water must bewell distributed in terms of point-location inside the premises and must be hot, ifpossible, for hygienic washing of products and facilities.

3 slaughterers will be paid Rs.300, on per animal basis


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It would be useful, to install a reservoir or tank on the premises as a security againstshortages and breakdown of pumps.

Drainage of water is one of the main considerations in any slaughterhouse. Allwashings or wet cleaning must course over the slaughter floor into a collectingdrainage and empty eventually outside the building. The floor should be designed to

slope toward the main collecting drain, the latter in turn to slope toward exteriorconnecting pipes. The walls must have a hard smooth surface to prevent stainingwith blood and fat and hence facilitate cleaning; on the other hand, the floor must berough or grooved to forestall slipping.

1100..22 LLiigghhttiinngg aanndd VVeennttiillaattiioonn

Lighting is another important requirement of the slaughterhouse. Electricityconnection will be obtained from WAPDA, but a diesel generator is provided foremergency supply of electricity. Transparent insets can also be made in the roofingat vantage points to provide natural lighting or sky lighting. Wide lintel windows(e.g. aluminum frame), covered with gauze to exclude insects, also serve the same

purpose, as well as provide ventilation.

1100..33 EEqquuiippmmeenntt

The standard installation and equipment required in modern slaughterhouse are thosenecessary to effect a rapid and hygienic conversion of livestock into meat.

Table 10-1 Equipment Detail

Machinery QTY Per Unit

Cost

Total Cost

4Chiller and Freezer Room

Dimensions 75'x40'x14'

Insulation of cold room panels and doors fittings 1 3,890,000 3,890,000

Sales Tax 15% 583,500

SED 1% 38,900

Assembling Of panels, inclusive of fitmentof Profiles, filling and caulking o silicon

1 400,000 400,000

Supply of sliding door for the opening size of 8x5complete with door frame

8 75,000 600,000

Sales Tax 15% 90,000

Refrigeration System For Chiller No1

External Size 40'x20'x14'

Air cooled condensing unit model KE 15 S (15HP)equipment suitable for operation on 380V 50

2 650,000 1,300,000

4

Kold Kraft (Pvt) Ltd. 247-S Industrial Estate, kotLakhpat Lahore 54770,Pakistan.092-42-

5116727,092-42-5116728


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Hz,3 phase

Sales tax 15% 195,000

SED 1% 13,000

Evaporator Unit 2 350,000 700,000

Sales tax 15% 105,000SED 1% 7,000

Installation of refrigeration system 2 80,000 160,000

Refrigeration System For Chiller No2

Size 40'x20'x14'

Air cooled condensing unit model 2 650,000 1,300,000

Sales tax 15% 195,000

SED 1% 13,000

Evaporator Unit 2 350,000 700,000

Sales tax 15% 105,000

SED 1% 7,000


Refrigeration System For Blast Freezer 16 125,000 2,000,000

Size 30'x15'x14'

Air cooled condensing unit 3 950,000 2,850,000

Sales tax 15% 427,500

SED 1% 28,500

Evaporator unit cooler model KHU 85--4 3 350,000 1,050,000Sales tax 15% 157,500

SED 1% 10,500


Refrigeration System For Freezer Store

Size 40'x20'x14'

Air cooled condensing unit model KE 8 S (7 1/2HP)

2 440,000 880,000

Sales tax 15% 132,000

SED 1% 8,800

Evaporator unit cooler model KHL 30 -- 2 2 165,000 330,000

Sales tax 15% 49,500

SED 1% 3,300


Refrigeration System For Ante Room


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Size 15'x10'x14'

Air cooled condensing unit modal KE 3 S (3 HP) 1 250,000 250,000

Sales tax 15% 37,500

SED 1% 2,500

Evaporator unit cooler model KHM 21-1 1 125000 125,000Sales tax 15% 18,750

SED 1% 1,250

Installation of refrigeration 1 40,000 40,000

Sub Total 19,385,0005Machinery & Equipment

Weighing scale 1 130,000 130,000

Lab equipment 650,000

Tube lights 110 80 8,800

Sorting tables 4 35,000 140,000

Conveyor/hooks

Trolleys 10 6,500 65,000

S.S hooks with bearing 100 800 80,000

Over head mobile hook 500 600 300,000

Chiller Hooks 500 600 300,000

Slaughtering kit& equipment 650,000

Mincing machines 4 50,000 200,000

Booring 40,000

Sub Total 2,563,800

Others

Ac( for factory and admin hall) 10 30,000 300,000

Generators 2 1,200,000 2,400,000

Sub Total 2,700,000

Grand Total 24,648,800

1100..44 SSllaauugghhtteerriinngg TToooollss

Relatively fewer tools are required for the slaughter and some can be made by localmetal workshops or blacksmiths. The most commonly used slaughtering tools areshown in the Figure

51) Mr. Younas Quereshi: Manager IFFCO (Mob.0334-3997494), Mr.Farooqi : Sales coordinator

IFFCO (Mob.0333-4671158),154/4 Block G, Model Town, Lahore Tel:042-5869882, UAN :111-433-267.

2) Mr.PAPU, Tel: 0300-4929979, Super Asia Engineering, Varrn Road, FarooqAbad. Shiekhupura.


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1100..44..11 SSkkiinnnniinngg KKnniiffee

As the name implies, this knife is used for the removal of the animal's skin. Alsowith a six-inch blade and characteristically curved backwards to allow for ease ofoperation, it can be used to scrape off burned hair from carcasses being dressed withthe skin-on.

1100..44..22MMeeaattSSaaww

A replaceable blade handsaw, which is used in sawing through bone.

1100..44..33MMeeaattCChhoopp::

Also called the cleaver, the meat chop is a heavy axe used for separating heavystructures, e.g. the head from the neck or the shanks from the leg.

1100..44..44 SSpprreeaaddeerr::

A metal device for suspending the animal body and spreading out the legs for

dressing and inspection.

1100..44..55 GGrriinnddiinngg aannddHHoonniinngg SSttoonneess::

Grinding stones are coarse grained and used for the initial sharpening of knives intothin edges, and then finished with the homer, which is of fine-grain to provide extrathinness. Either oil or water may be used in sharpening knives to prevent the stonefrom heating the knives.

1100..44..66SStteeeell::

A long, tapering rounded and smooth metal rod on which knives are smoothenedfrom time to time to improve keenness.

1100..44..77MMeeaattTTrreeee//HHooookkss::

Metal devices with bent-out curved ends for holding or displaying parts of theslaughtered meat and offal for washing and inspection.

The pictures of the slaughtering tools are shown in the following Figure 10-1.


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FFiigguurree 1100--11 SSllaauugghhtteerriinngg TToooollss

11

00

.

.55

VV

aa

nn

A chiller van which includes reefer container and refrigeration systems will berequired for delivery of meat, especially for the delivery to airport for export ofmeat. Its estimated cost is Rs. 1, 200, 000.

1100..66 RRaaww MMaatteerriiaall

The following is the material used for cleaning purposes. The costs of thesematerials have been given in financial model.


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Sulfuric Acid

Caustic Soda

Ferric Chloride

Sodium Hypochlorite

Coagulation Material (Alum)

Anion & Cation Resins

1111 RREEGGUULLAATTIIOONNSS

1111..11 RReeggiissttrraattiioonn

Permission is required from Local Municipal Authority before starting constructionof an abattoir.Application for permission is to be submitted to:Secretary Livestock DepartmentLocal municipal authorityNo fee is required for submission of application.

Public veterinarian/doctor will be required for inspection of meat who will work onbehalf of MCL.

1111..22 TTaaxxaattiioonn

There is no General Sales Tax on abattoir services.Income tax will be levied as per status i.e. individual, partnership, AOP, or company.

1111..33 LLaawwss

The regulatory laws governing the slaughtering of animals are as underThe Punjab Animal Slaughtering Control Act, 1963

(West Pakistan Animals Slaughter Control Act, 1963)Photocopies of above laws are being annexed for ready reference.


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1122 PPRROOJJEECCTT EECCOONNOOMMIICCSS

1122..11 PPrroojjeecctt CCoosstt

TTaabbllee 1122--11 TToottaall PPrroojjeecctt CCoossttDescription Rupees

Land 25,600,000

Building 32,625,000

Furniture & Fixtures 500,000

Plant & Machinery: 24,648,800

Transport /van 650,000

Sub Total 84,023,800

Contingency (5%) 4,201,190

Working Capital 9,150,000

Total Cost 97,374,990

TTaabbllee 1122--22 FFiinnaanncciinngg PPllaannFinanced by percentage Value in Rs.

Sponsors Equity 40% 38,949,996

Bank Finance 60% 58,424,994

Total Cost 97,374,990

TTaabbllee 1122--33 PPrroojjeeccttss RReettuurrnnssDescription Values

Net Present Value In Million 424,414

IRR In percentage 49

Pay Back Period In Years 4.58


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1133 FFIINNAANNCCIIAALL AANNAALLYYSSIISS

1133..11 PPrroojjeecctteedd BBaallaannccee SShheeeett

Rup(oo

Year - I Year - II Year - III Year - IV Year - V Year - VI Year - VII Year - VIII Year - IX Year

ngible Fixed Assets 58,926 63,417 68,687 64,122 60,359 57,220 54,566 52,296 50,329

sh in Hand / Bank 8,917 (11,028) (248) 61,550 173,593 346,585 593,290 930,292 1,374,913 1,9

67,843 52,388 68,439 125,672 233,952 403,805 647,856 982,588 1,425,242 1,99

wners Equity 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950

lance of Profit/(Loss) (26,582) (38,659) (18,741) 42,919 156,268 331,924 582,619 924,958 1,376,321 1,9

- - - - - - - - -

nk Loan 55,475 52,097 48,230 43,803 38,734 32,931 26,287 18,680 9,971

67,843 52,388 68,439 125,672 233,952 403,805 647,856 982,588 1,425,242 1,99

abilities against Asset

bject to Finance Lease


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1133..22 PPrroojjeecctteedd PPrrooffiitt &&LLoossss SSttaatteemmeenntt

Rupe

(ooo

Year - I Year - II Year - III Year - IV Year - V Year - VI Year - VII Year - VIII Year - IX Year

Revenue 953,119 1,100,852 1,271,485 1,468,565 1,696,192 1,959,102 2,262,763 2,613,491 3,018,582 3,

Expenses

Operational Cost 921,686 1,037,204 1,143,697 1,261,290 1,391,159 1,534,611 1,693,094 1,868,215 2,061,757 2,

Operation Salaries 55,320 66,673 82,707 99,233 118,713 143,449 174,266 209,962 254,608

Administrative Salaries 1,380 1,518 1,670 2,012 2,214 2,435 2,679 2,946 3,524

Depreciation 7,549 6,384 5,604 4,565 3,763 3,140 2,653 2,270 1,967

985,935 1,111,780 1,233,679 1,367,100 1,515,849 1,683,635 1,872,692 2,083,394 2,321,856 2,

(32,816) (10,928) 37,806 101,465 180,343 275,467 390,071 530,097 696,726

Lease Finance Charges - - - - - - - - -

Financial Charges 8,080 7,652 7,163 6,603 5,961 5,227 4,386 3,423 2,321

8,080 7,652 7,163 6,603 5,961 5,227 4,386 3,423 2,321

Profit before Taxation (40,895) (18,580) 30,643 94,862 174,382 270,240 385,685 526,674 694,406

Taxation (14,313) (6,503) 10,725 33,202 61,034 94,584 134,990 184,336 243,042

Profit after Taxation (26,582) (12,077) 19,918 61,660 113,349 175,656 250,695 342,338 451,364

Acc. Profit b/f - (26,582) (38,659) (18,741) 42,919 156,268 331,924 582,619 924,958 1,

Accumulated Profit c/ f (26,582) (38,659) (18,741) 42,919 156,268 331,924 582,619 924,958 1,376,321 1,9


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1133..33 PPrroojjeecctteedd CCaasshh FFllooww SSttaatteemmeenntt

Year 1 Year 2 Yea r 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Yea

Profit before financial charges &

taxation (32,816) (10,928) 37,806 101,465 180,343 275,467 390,071 530,097 696,726

Depreciation 7,549 6,384 5,604 4,565 3,763 3,140 2,653 2,270 1,967

(25,267) -4,543 43,410 106,030 184,106 278,606 392,724 532,368 698,693

Cash form o ther Soureces

Owners 38,950 - - - - - - - -

Bank Finance 58,425 - - - - - - - -

97,375 - - - - - - - -

Total Sources 72,108 -4,543 43,410 106,030 184,106 278,606 392,724 532,368 698,693

Applications:

Fixed Assets 66,475 10,875 10,875 - - - - - -

Re -payment of Loan 11,030 11,030 11,030 11,030 11,030 11,030 11,030 11,030 11,030

Lease Re-payment - - - - - - - - -

Tax 14,313- 6,503- 10,725 33,202 61,034 94,584 134,990 184,336 243,042

63,191 15,402 32,630 44,232 72,064 105,614 146,020 195,366 254,072

Cash Increase/ (Decrease) 8,917 (19,945) 10,780 61,798 112,043 172,993 246,704 337,002 444,621

Opening Balance - 8,917 (11,028) (248) 61,550 173,593 346,585 593,290 930,292 1

Closing Balance 8,917 (11,028) (248) 61,550 173,593 346,585 593,290 930,292 1,374,913 1

8916.53245 -11028.49395 -248.0630868 61550.26241 173592.7968 346585.416 593289.8386 930291.6893 1374912.882 1949


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1144 KKEEYY AASSSSUUMMPPTTIIOONNSS

1144..11 TTaabbllee 1144--11 OOppeerraattiinngg AAssssuummppttiioonnssProduction period 360 days/annum1st year capacity utilization 35%

1144..22 TTaabbllee 1144--22 CCoosstt AAssssuummppttiioonnssInitial (Year 1) Average cost (Rs.) Values In Rs.

Small Animal 4,500

Large Animal 20,000

Fright Charges (for UK only) 80/kg

Growth rate 10%

1144..33 TTaabbllee 1144--33 SSaalleess AAssssuummppttiioonnssProducts Per Kg Sale Price In Rs.

Local Sales

Bone less 250

Mixed meat 260

minced meat 300

Pieces 250

Full 225

Cattle meat(bone less) 155

Minced cattle meat 170Mixed cattle meat 130

Exports

Veal meat 300

TTaabbllee 1144--44 EExxppeecctteedd RReevveennuuee ffrroomm SSeerrvviicceessSSeerrvviicceess RRss.. PPeerr KKGG

Cold Storage facility 8.5

Slaughtering Services 6

TTaabbllee 1144--55 EExxppeecctteedd RReevveennuuee ffrroomm BByy PPrroodduuccttssBy Products Per Kg Sale price In Rs.

Small Animal 200Skin

Large Animal 800

Small Animal 150Feet and Head

Large Animal 200


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Small Animal 15IntestinesLarge Animal 20

Small Animal 75Pluck

Large Animal 90

Small AnimalDried Blood6

Large Animal

30

TTaabbllee 1144--66 FFiinnaanncciiaall AAssssuummppttiioonnssProject Life 10Years

Debt: Equity 60:40

Interest Rate on Long Term Debt 14%

Debt Tenure 10Years

Debt Payment per year 2

6 It is assumed to get 1 kg dried blood from small animal &10 kg from big Animal


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1155 AANNNNEEXXUURREE

THE PUNJAB ANIMALS SLAUGHTER CONTROL ACT, 1963

(W.P. Act III of 1963)

C O N T E N T S

Sections

1. Short title, extent and commencement.

2. Definitions.

3. Restriction on slaughter of animals.

3-A. Presumptions.

4. Examination in stock-yard.

5. Prohibition to cause abortion.

6. Power to exempt.

7. Power of entry, search and seizure.

8. Penalty.

8-A. Offences to be cognizable and bailable.

8-B. Cognizance of offences.

8-C. Offences to be tried by whom.

9. Forfeiture.

10. Reward to informers.

11. Rules.

12. Repeal.


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THE PUNJAB ANIMALS SLAUGHTER CONTROL ACT, 1963

(W.P. Act III of 1963)

[17 April 1963]

An Act to prohibit the slaughter of useful animals and to regulate the slaughter ofother animals in the Punjab

Preamble. WHEREAS it is expedient to prohibit the slaughter of useful animalsand to regulate the slaughter of other animals in the province of the Punjab;

It is hereby enacted as follows:-

1. Short title, extent and commencement. (1) This Act may be called the PunjabAnimals Slaughter Control Act, 1963.

It extends to the whole of the province of the Punjab, except the Tribal Areas.

(3) This section shall come into force at once and the remaining provisions ofthe Act or any of them shall come into force in such area and on such date asGovernment may, by notification in the official Gazette, specify in this behalf.

2. Definitions. In this Act, unless the context otherwise requires, the followingexpressions shall have the meanings hereby respectively assigned to them, that is tosay:-

(a) Animal means a bullock, bull, cow, buffalo, buffalo-bull, goat and sheepof any age;

(b) Carcass means the dead body of an animal and includes a part thereof;

(c) Cull means to pick an animal which is suitable neither for breedingpurposes nor for draught purposes;

(d) Government means the Provincial Government of the Punjab];

(e) Local Authority means an urban local council constituted under the PunjabLocal Government Ordinance, 1979 (VI of 1979) or a Cantonment Board establishedunder the Cantonments Act, 1924 (II of 1924);]

(ee) meat means the meat of an animal;


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(f) prescribed means prescribed by rules made under this Act;

(ff) Rules mean rules made under this Act;

(g) Slaughter means to kill animals by any means;

(h) slaughter-house means any building or premises used for slaughteringanimals and approved by the local authority concerned;

(i) stock yard means any enclosure, approved by a local authority whereanimals are assembled for examination by the Veterinary Officer to determinewhether they are suitable for slaughter or not, or where animals approved forslaughtering are housed until they are removed to the slaughter-house;

(j) Area means an area which the Government may, by notification in theofficial Gazette, declare to be an area for the purposes of this Act;

(k) Useful animal means

(i) a female sheep or goat below the age of one year and six months;

(ii) a female sheep or goat of the age exceeding one year and six monthsbut not exceeding four years, which is pregnant or fit for breeding purposes;

(iii) Any female animal, other than sheep, or goat below three years ofage;

(iv) Any female animal, other than sheep, or goat which is pregnant or inmilk or fit for breeding purposes;

(v) Any female animal, other than sheep or goat between three to tenyears of age, which is fit for draught purposes;

but does not include any such animal which on account of culling,injury, illness or other cause, is certified in writing by a Veterinary Officer or anygazetted officer of the Livestock and Dairy Development Department] as not likelyto live or as no longer a useful animal for the purposes of this Act; and

(vi) any male sheep or goat below the age of two months;

(l) Veterinary Officer means an officer of the Livestock and DairyDevelopment Department], not below the rank of a Veterinary Assistant Surgeon,and includes an Officer-in-charge of a slaughter-house, provided that such officer-in-charge possesses a degree or diploma from a recognised Veterinary or AnimalHusbandry College.


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3. Restriction on slaughter of animals. (1) No person shall slaughter a usefulanimal.

(2) No person shall slaughter an animal

(a) Unless such animal has been approved as hereinafter provided, forslaughter;

(b) Except in a slaughter-house and during the hours prescribed thereforand

(c) on Tuesday and Wednesday or on such other day or days as Governmentmay by notification in the official Gazette, specify in this behalf:

Provided that nothing contained in this section shall apply to the slaughter of anyanimal

(i) By a Muslim on the day of Eid-ul-Azha and the two succeeding days; or

(ii) Which on account of illness, injury or other cause is likely to die before itcan be presented to the officer-in-charge of slaughter-house.

(3) No person shall, directly or indirectly,

(a) sell, keep, store, transport, offer or expose for sale, or hawk any meator carcass of any animal which has not been slaughtered in a slaughter-house anddoes not bear the stamp or mark of the slaughter-house prescribed by the localauthority in this behalf; or

(b) Sell or cause to be sold any meat at a place other than that set apart orapproved for this purpose by the local authority.

3-A Presumptions. In every prosecution under this Act, the court shallpresume

(a) that any meat or carcass found in possession of any person who is, or hasbeen, habitually selling, keeping, storing, transporting, offering or exposing for sale,or hawking the meat or carcass, was being sold, kept, stored, transported, offered orexposed for sale, or hawked, as the case may be, by such person;

(b) That any meat or carcass which does not bear the stamp or mark of aslaughter-house has not been slaughtered in a slaughter-house or during the hoursprescribed therefor; and


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(c) that any person who is in possession of the premises where an offenceunder this Act has been or is being committed by another person has abetted thatoffence.]

4. Examination in stock-yard. (1) Any person intending to slaughter an animal in

slaughter-house shall produce the animal in the stock yard for examination at anytime during the hours fixed by the local authority concerned for inspection.

(2) After examination of any such animal, the Veterinary Officer may approve itfor slaughter:

Provided that no useful animal shall be so approved.

(3) Any person aggrieved by a decision of the Veterinary Officer may, withintwenty-four hours of such decision, prefer an appeal from such decision, to suchauthority as may be prescribed.

(4) Subject to the decision of the appellate authority the decision of theVeterinary Officer shall be final.

5. Prohibition to cause abortion. No person shall voluntarily cause a pregnantsheep mis-carry or induce premature birth of its young.

6. Power to exempt. Government may, under special circumstances subject tosuch conditions as it may deem fit to impose, exempt any person or class of personsfrom all or any provisions of this Act.

7. Power of entry, search and seizure. (1) A Veterinary Officer or any gazettedofficer may

(a) enter and search a slaughter-house or any other premises where he hasreason to believe that an offence under this Act or rules has been, is being or is aboutto be committed, and may seize any animal, carcass or meat, in respect of whichsuch offence has been, is being or is about to be committed, as the case may be; and

(b) Arrest or cause to be arrested any person who, in his view, commits anyoffence under the provisions of this Act or the rules.

(2) A Veterinary Officer or a gazetted officer arresting or causing the arrest ofany person, or seizing or causing the seizure of any animal, carcass or meat shall

(a) without unnecessary delay, and subject to the provisions of clause (b) andclause (c) as to release on bond, take or send the person arrested or the animalcarcass or meat seized to the police-officer alongwith a report, in writing, statingfacts constituting the offence for which such person has been arrested or suchanimal, carcass or meat has been seized;


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(b) Release such person on his executing a bond to appear, when so required,before the police-officer; and

(c) Release such animal to the person from whose possession it has been

seized or to the owner thereof on his executing a bond to produce it, when sorequired, before the police-officer.

Explanation In sub-section (2) police-officer means the officer-in-charge ofthe nearest police-station.]

8. Penalty. (1) Whoever contravenes any provision of this Act (other than theprovisions of clause (c) of sub-section (2) of section 3) or the rules shall, on firstconviction, be punished with imprisonment for a term which may extend to onemonth, or with fine which shall not be less than one hundred rupees or with bothand, on second or subsequent conviction, with imprisonment which may extend to

six months, or with fine which shall not be less than two hundred rupees or withboth.

(2) Whoever contravenes the provisions of clause (c) of sub-section (2) ofsection 3 shall be punished with imprisonment which may extend to three years, orwith fine which shall not be less than three hundred rupees, or with both, and thecourt trying the case relating to such contravention shall direct that any animalslaughtered in contravention of the provisions of that clause shall be forfeited to theGovernment.

(3) An attempt to contravene any provision of this Act or the rules and anabetment of such contravention shall be punished as an offence under this Act.]

8-A. Offences to be cognizable and bailable. Notwithstanding anything containedin the Code of Criminal Procedure, 1898, an offence punishable under this Act or therules shall be cognizable and bailable within the meaning of the said Code.

8-B. Cognizance of offences. No court shall take cognizance of any offencepunishable under this Act or the rules except on a report, in writing, of the factsconstituting such offence made by a Veterinary Officer or a gazetted officer.

8-C. Offences to be tried by whom. No court inferior to that of a magistrate of thefirst class shall try any offence punishable under this Act or the rules.]

9. Forfeiture. The court trying an offence under this Act may direct that anyanimal, carcass or meat in respect of which the court is satisfied that an offenceunder this Act has been committed, be forfeited to Government.

10. Reward to informers. The court trying an offence under this Act may directthat an amount not exceeding twenty per cent of such sum as may be realized by way


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of fine or under section 517 of the Code of Criminal Procedure, 1898, (V of 1898),on account of the sale or disposal otherwise of the animal, carcass or meat in respectof which an offence under this Act has been committed, be awarded to the person orpersons supplying information relating to the commission of the offence.

11. Rules. Government may frame rules

(i) to regulate the procedure for the disposal of animals, carcass or meatseized under this Act; and

(ii) generally to give effect to the provisions of this Act.

12. Repeal. Section 43 of the Punjab Laws Act, 1872 is hereby Repealed.

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