Animal Feed Mill [Rs. 90.42 million, Jun-2017]

Animal Feed Mill [Rs. 90.42 million, Jun-2017]
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11 August 2017
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Livestock production is an integral part of Pakistan's agriculture sector and plays a vital role in national economy. At present, livestock is contributing about 52% to the agricultural sector and 10.9% to the GDP. The role of livestock in rural economy may be assessed by the fact that 30 to 35 million of the total rural population is engaged in livestock farming, having 2 to 3 cattle/buffalo and 5 to 6 sheep/goats per family deriving 30 to 40 per cent of income from it. Pakistan's livestock population is supported by feed resources derived from the crops sector,
rangelands, grazing areas and agro industrial by-products. The type, availability and utilization of these feed resources vary greatly in the country's different agro ecological zones.

The purpose of this document is to facilitate potential investors in for investing in a “Animal Feed Mill” by providing them with a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. This pre-feasibility suggests production of 12,000 tons of animal feed and 60,000 Urea Molassis Blocks (UMB) annually. However the proposed project will be started with an initial capacity of 60% i.e. 7,200 tons of animal feed and 36,000 UMB. This production capacity justifies the running cost of the project.

Animal feed and UMB Mill can be designed with a wide range of processing capacity and product mix depending upon the demand, according to availability of feed stuffs and their storage capacity. However, it is suggested that the viable economic unit should have a capacity of preparing 5 tons of compound feed and 25 UMB per hour respectively.

The total project cost is estimated at Rs. 90.42 million including a capital cost & working capital of Rs. 46.02 million and Rs. 44.40 million respectively. Projected IRR, NPV and Payback period for the proposed project are 38%, Rs. 213.60 million and 4.10 years respectively.

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