1. Jassar FarmsA Project To Empower The Rural Poor of PakistanPresented By,Muhammad Hadi Operations Manager Jassar Farms (Pvt.) Ltd.

2. 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. 3 Table of Contents- Contd. Jassar Farms Project Brief Semen Processing Unit Dairy Division Social Impact 4. 4 Importance of Milk Production inPakistans 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 worthUS$ 18 billion (at retail price of Rs 35 / liter). In view of this the country isthe 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% ofthe countrys total GDP (US$ 165 billion - CIA Fact book) Milk production has created millions of jobs in production, collection,processing & distribution. 5. 5Dairy 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 33liters per day for the developed world On the average, 8 Pakistani milk producing animals are equal to 1 animal ofthe developed world.Low yields & small average herd sizes have resulted insub-subsistence level living for millions of people in Pakistan 6. 6 Productivity Gap Milk Production Unlike the developed world, research & development on local breeds hasbeen marginal over the past 6 decadesAnimal Milk Yield ComparisonBreed CategoryOrigin Milk Yield Per Lactation (Liters)Ravi-Nilli BuffaloSoutheast Asia 1,700KundiBuffaloSoutheast Asia 1,700DhanniCow Southeast Asia 1,250Red SindhiCow Southeast Asia 1,600Sahiwal Cow Southeast Asia 1,800CholistaniCow Southeast Asia 1,500Jassar Farms F1 Cow Southeast Asia 4,000Israeli HolsteinCow Israel12,500US Holstein Cow US10,500US Jersey Cow US 8,000 7. 7Productivity Gap Meat Production Meat production is an important byproductMeat Production of dairy farming In 2009, Pakistan produced 2.88 MT Poultry meat, dairy animals contributed 48% of20%Beef48% total meat produced Mutton32% Exotic beef breeds are more suitable for meat productionSlaughter MaturityWeight atADG WeightPeriod Origin Birth (Kg) (Kg/Day)(Kg) (Months)Buffalo South Asia320.5 55035Sahiwal South Asia230.6 45024Angus England 31 1.38 58013Hereford England33 1.37 60014Charolais France35 1.59 60012Improving animals productivity is vital for uplifting the dairy and beef industry 8. 8 Farm Sustainability CyclePricing & ProfitabilityFarmerCore DriversProfitability & Nutrition & FarmRe-investment Management Practices Cycle Animal genetic potentialAccess to creditSupporting Industry / Academia Linkages ExternalDrivers Support CycleHuman Resource AvailabilityInstitutional Support Framework 9. 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 Sindmostly have these types of breeds because of their hightemperature tolerance Although breed yield averages are around 1,750 liters but thereare animals with milk production potential of over 30 liters perday These elite animals are available in very small numbers andheld by private individuals around the country It is unfortunate but no concerted effort has been undertakento develop these breeds & thus they are withering away 10. Local Genetic Resources... Pakistani Buffalo Issue With 29.9 million animals, nearly 48% ofPakistans total milking herd producing 64% ofthe countrys milk requirement is the buffalo With high maintenance cost and low milkproduction, this animal offers negative returnsto its owners currently This animal is least researched upon yet muchtalked about by Academia & Government Although breed yield averages are around 1,700liters but there are animals with milk productionpotential of over 25 liters per day Since this is a local animal, there is no importedsemen available for genetic up-gradation 11. Genetic Up-gradation Livestock Semen In Pakistan - Market & Demand Sizing Total DosesTotal Herd * Females @ 55% NeededBuffalo 29,900,00016,445,000 32,890,000Cattle / Cows 33,000,00018,150,000 36,300,000Quality ofTotal 62,900,00034,595,000 69,190,000 Available SemenBuffalo Semen Requirement 32,890,000Buffalo Semen Available:- Public Sector Production 2,100,000Marginal- Private Cottage Industry Production200,000Very Poor- Imported Semen -Total Available2,300,000Artificial Insemination Rate7.0%Cattle Semen Requirement36,300,000Cattle Semen Available:- Public Sector Production 400,000 Poor- Private Cottage Industry Production200,000 Very Poor- Imported Semen** 1,000,000 AcceptableTotal Available1,600,000Artificial Insemination Rate4.4%* 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 12. Genetic Up-gradationWhat Are The Pakistani Dairy Farmers 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 hasmarginal to very poor quality Private cottage industry produced semen is priced at Rs 50 to 250 perdose but has very poor quality Imported semen is only for cattle & not buffalos and is pricedprohibitively 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 % 13. Jassar Farms (Pvt.) Ltd.Dairy and Breed Improvement Project 14. 14 Jassar Farms Project BriefSustainable Development: About 2/3 of Pakistan comprises of rural areas and development has beenmarginal and uneven Jassar Farms business model seeks to achieve economic and social returns atthe same timeProjects Partners: Jassar Farm has partnered with Acumen Fund in an embryo transfer program tobring in world class genetics in Pakistan Acumen Fund is a USA based social impact venture capital fund that only takesequity positions in projects that have a social significance and economicsustainability. 15. 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 beefanimals locally for onward sale to poor farmers at affordable ratesKey Achievements Produced progenies of worlds best dairy animals As of May 2011, 8 male & 5 female calf births have taken place (this is thehighest number of animals produced through imported embryos in Pakistan) Team will be fully equipped technically to flush, produce & transfer embryoslocally in 2011 16. 16 Semen Division18th February, 2010 A Landmark Day For Pakistani Dairy IndustryDonor DamGloryJFH-SaviorMilk (kg)18,191Fat (% ) 3.8%Protein (%)3.1%Service Sire AlexanderWorld Ranking (2010) 54Surrogate Mother SahiwalDate of birth18-Feb-10Breed HolsteinSexMaleWeight at Birth40 kgPakistani Farmers will have access to elite American genetics for genetically upgrading their animals 17. Semen Division Jassar Farms Excels in Cattle GeneticsDonor DamValenceJFH-AmbassadorMilk (Kg)18,036Fat (% ) 3.5Protein (%)3.2Service Sire Picston ShottleWorld Ranking (2011) 1Surrogate Mother Friesian CrossDate of birth28-Feb-11BreedHolsteinSexMaleWeight at Birth (Kg) 43Jassar Farm is at forefront of cattle genetics in Pakistan 18. 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 unitestablishes its marketKey Achievements Only farm in Pakistan that uses exclusively sexed semen Using world class semen, by end of May 2011, Jassar Farms hassuccessfully produced more than 375 cross breeds animals (i.e. F1s & R1) fromlocal cows 19. 19 Dairy DivisionFirst 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 2713.3Lactation Yield (liters) 1,400 8,5004,050 20. 20 Dairy Division Jassar Farms F1sPakistani dairy farmers can expect to get 200% to 300% increase inmilk production 21. 21 Social ImpactIncremental Income of an F1Incremental Revenue From A Female Calf Base HerdUsing1 Calving/ Mother LivestockUsing Incremental CowsDepartment JFPL Gain (using Production Semen SemenJFPL semen)*Avg Milk Yield / Lactation /Cow (In Liters)1,5002,000 4,000 2,000Domestic Consumption InLiters (over the lactation)1,0001,000 1,000Milk Available For Sale(liters)500 1,000 3,000 2,000Average Selling Price (Rs) 303030Total Revenue Generated(Rs) 15,000 30,00090,00060,000* Note: There is a 50% chance of a female calf being born 22. 22Thank Yousupporting the dairy industry through superior genetics can lead to a social& economic soft revolution in the country on an economically sustained basis.