Feasibility by AGROTECH Cholistan
Transcript of Feasibility by AGROTECH Cholistan
-
8/6/2019 Feasibility by AGROTECH Cholistan
1/75
Livestock Production Farm, Cholistan 2009
Preamble
Livestock and Dairy Development Department, Government of the Punjab, through its Department
of Planning and Evaluation awarded a contract to AGROTECH, Lahore, Pakistan, to conduct,
The economic and financial feasibility of Corporate livestock production farm in Cholistan
Livestock Production Zone. This contract is awarded through letter no 2073, dated 27 08 09.
Against the following terms of references:
1. Scope of Dairy and Meat Production farm in Cholistan.
2. Financial and technical feasibility of integrated Livestock Production Farms
3. Parameters of Disease Free Zoning.
4. Silage based fodder production under pressure irrigation system.
5. Integration with local producers.
6. Risk assessment of corporate Livestock production, in Cholistan Livestock Production
Zone.
7. The feasibility study should be bankable.
8. Civil work/ structural least cost design of Livestock farm according to Cholistan climate.
9. Preperation of tender documents/ BOQ as per structural design of the farm.
Each of the above mentioned term of refrence would be rpresented in the report as individual
chapter.
Page 1
-
8/6/2019 Feasibility by AGROTECH Cholistan
2/75
Livestock Production Farm, Cholistan 2009
Page 2
-
8/6/2019 Feasibility by AGROTECH Cholistan
3/75
Livestock Production Farm, Cholistan 2009
The Cholistan Desert, once a prosperous, lively, and thriving jungle is now by and large a
desolated piece of land. Its productivity potential is on the decline despite the fact that the number
of animals in this desert is on the increase. This sandy desert is situated in the southern part of
Punjab (Pakistan) with highly saline soils and a brackish subsoil aquifer. It supports a human
population of 110,000 pastoral nomads depending exclusively upon livestock for their livelihood.
Life sustainability in this desert revolves round annual precipitation. The summer in the desert is
extremely harsh and punishing. Some xeric plant species do survive during severe droughts but
undergo tremendous grazing pressure leading to partial eradication as result, the flora and fauna
have been thinning out gradually with the increasing severity of desertization.
To address the issue of declining revenues and tighter margins, producers have been looking at
various diversification options to help bolster incomes and expand marketing options. One such
diversification option for producers is to form community owned cow/calf operations. This can be
an attractive option to some producers, since it allows diversification without having to make
significant changes or capital investments in their individual operations, but still enables them to
diversify and make use of the calf enterprise is achieved through the purchase of shares in the
newly formed entity (corporation or co op).
Under this project, farmers rearing herds of Cholistani cows, a breed of Sahiwal cow which
produces above normal quantities of milk and meat, will be provided facilities like better pedigree
Page 3
-
8/6/2019 Feasibility by AGROTECH Cholistan
4/75
Livestock Production Farm, Cholistan 2009
improvement, balanced feed and disease protection through a comprehensive vaccination and
veterinary plan. Cholistani cow is famous for resisting harsh climatic conditions of Cholistan.
Cholistani cow on an average is capable of producing 1,000 litres of milk per annum and if plans
are implemented, this average can be enhanced up to 1,700 1,800 litres per annum. Similarly, 50
per cent of beef produced in Punjab is from Cholistan and this project will tremendously boost
beef and milk production further.
Page 4
-
8/6/2019 Feasibility by AGROTECH Cholistan
5/75
Livestock Production Farm, Cholistan 2009
Chapter: 1
Scope of Dairy and Meat Production Farm in
Cholistan
1.1 An Introduction to Cholistan.
The Cholistan Desert, once a prosperous, lively, and thriving jungle is now by and large a
desolated piece of land. Its productivity potential is on the decline despite the fact that the number
of animals in this desert is on the increase. This sandy desert is situated in the southern part of
Punjab (Pakistan) with highly saline soils and a brackish subsoil aquifer. It supports a human
population of 110,000 pastoral nomads depending exclusively upon livestock for their livelihood.
Life sustainability in this desert revolves round annual precipitation. The summer in the desert is
extremely harsh and punishing. Some xeric plant species do survive during severe droughts but
undergo tremendous grazing pressure leading to partial eradication.
1.1.1 Location
Page 5
-
8/6/2019 Feasibility by AGROTECH Cholistan
6/75
Livestock Production Farm, Cholistan 2009
The Cholistan desert is located in southern Punjab extending through the Nara and Thar deserts of
Sindh (Pakistan) between latitudes 27o 42 and 29o 45 N and longitudes 69
o 52 and 75o 24 E (
(figure 1) ), covering about 2.6 million hectares [1 4]. Soils are classified as either saline or saline
sodic, with pH ranging from 8.2 to 8.4 and from 8.8 to 9.6, respectively. Based on topography,
parent material, soil and vegetation, the Cholistan Desert can be divided into two geomorphic
regions; the northern region is called Lesser Cholistan bordering canal irrigated areas covering
about 7,770 km2 and the southern region is called Greater Cholistan and covers about
18,130 km2[1 3]. The old Hakra riverbed (dried about 600 years ago) is the dividing line between
the two regions. Lesser Cholistan comprises the desert margin and includes all the area north of the
Hakra, while Greater Cholistan is essentially the area south of the old Hakra riverbed. The
northern part of Lesser Cholistan includes an irrigation zone of 280,000 hectares served by a canal
network, where only 130,000 hectares are commendable but only a small part is actually irrigated.
1.1.2 Climate and soils
Cholistan is a hot hyper arid sandy desert. The mean annual rainfall varies from less than 100mm
in the west to 200mm in the east, chiefly falling during monsoon (July through September).
Rainfall is very inconsistent in quantity and duration and prolonged droughts are common once
every 10 years. Temperatures are high in summer and mild in winter with no frost. The mean
summer temperature (May July) is 34 38o
C with the highest reaching over 51.6o
C [5,6](
(figure 2) ). The soils are generally saline, alkaline and gypsiferous composed of granites, schist,
gneiss, and slates. The dunes reach an average height of about 100m in Greater Cholistan and
about 30m in Lesser Cholistan [2 4, 7 9].
Page 6
http://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htmhttp://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htmhttp://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htmhttp://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htm -
8/6/2019 Feasibility by AGROTECH Cholistan
7/75
Livestock Production Farm, Cholistan 2009
Lesser Cholistan consists of large saline alluvial flats (locally called dahars) alternating with low
sandy ridges/dunes. The clayey flat areas in Lesser Cholistan are generally homogenous to a depth
ranging from 30 to 90cm. These soils are classified as either saline or saline sodic, with pH
ranging from 8.2 to 8.4 and from 8.8 to 9.6, respectively. Greater Cholistan is a wind resorted
sandy desert and comprised of old river terraces, large sand dunes and less interdunal flat areas.
There are no permanent, natural bodies of surface water in Cholistan. Factors like low rainfall,
high rate of water infiltration, and high evaporation rate prevent the natural accumulation of
surface water [1]. Rainwater is collected in man made dug out water ponds called tobas. Tobas are
made in clayey flats locally called dahars with a large catchment area to avoid the loss of runoff
and water percolation. Underground water is at a depth of 30 50m, generally brackish, containing
salts 9,000 24,000 mg/L [3, 7].
1.1.3 Socioeconomic aspects of pastoralism.
The total human population of this desert is around 110,000 nomadic pastoralists. The majority of
the people live on the periphery of the desert and the interior of the desert is thinly populated. The
economy of the region is predominantly pastoral and people have been practicing a nomadic life
style for centuries. The nomads own smaller to large herds of camels, cattle, sheep and goats. The
interior desert area is not connected by a modern communication system and sandy desert tracks
are used for travel by camels or jeeps. Local people use camels as a mode of transportation.
Habitations are small and extremely scattered [3, 10].
Page 7
-
8/6/2019 Feasibility by AGROTECH Cholistan
8/75
Livestock Production Farm, Cholistan 2009
The pastoral system is characterized by a mass movement of animals and people throughout the
year in search of water and forage within the desert. The onset and distribution of monsoon rain
mainly dictate the pattern of movement of nomadic herders(figure 3). Around the months of
March or April, depleted feed and water resources in the interior of the desert force nomadic
households and their herds to move towards nearby irrigated areas. Supplementary income is
earned through unskilled labor in towns or irrigated farms. In irrigated agricultural fields the
pastoralist nomads have free grazing of livestock on wheat stubbles, drinking water for humans
and livestock and markets for livestock and their by products. In return, farmers in the irrigated
agricultural lands obtain sufficient labor for crop harvesting, farming operations and animal
manure to enhance soil fertility through camping of livestock on fallow fields.
The nomads and their herds return to the desert around July or August with the onset of monsoon
showers. Distances travelled during this movement vary from 10 to 100 km. While in the desert,
the natural vegetation is the main source of fodder and tobas serve as a source of drinking water
for both nomads and their livestock [10]. Tobas belonging to one clan are generally located close
to each other (often within a 2 4 km radius). During October and November, when water resources
dry up, each clan moves its herds to semi permanent settlements where primitive unlined wells and
kunds (usually lined) are available [1, 3]. Upon exhaustion of these water resources, the desert is
vacated and nomads move to peripheral areas of the desert where water and fodder are available.
The economy of these nomads entirely depends on fragile and meager natural resources associated
with inconsistent rain pattern. Job opportunities are confined to labor in agricultural fields or other
minor activities due to lack of education or skilled training. Most of the nomads live below poverty
line in the absence of basic human needs like clean drinking water or sufficient food, health and
Page 8
http://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htmhttp://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htmhttp://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htmhttp://www.john-libbey-eurotext.fr/en/print/e-docs/00/04/1F/15/article.md?fichier=images.htm -
8/6/2019 Feasibility by AGROTECH Cholistan
9/75
Livestock Production Farm, Cholistan 2009
education for their children. Livestock breeding, improvement of performance or range
management is not practiced scientifically.
Few nomads manage to shift milk producing animals near the roadside to earn some living.
Livestock is used for exchange of gifts in communal ceremonies like weddings, tribal celebrations,
childbirth or funerals, and animals are slaughtered for feast for the guests. A nomads status in the
desert life style is chiefly determined by the size of herd. All livestock are indigenous breeds well
adapted to climatic conditions. Herd reproductive performance is generally poor with low birth
rates and high mortality due to poor nutrition, lack of healthcare and climatic stresses [1, 3, 11].
Veterinary health care centres are not available to majority of livestock.
All the nomads have an unwritten code of ethics for their range territories and use of water points:
tobas, kunds, or wells. Each clan has access to traditionally defined territories to use for grazing
irrespective of the condition of the range vegetation. The exhaustive use of range vegetation has
resulted in the decline of palatable species especially grasses, overall vegetation cover,
malnutrition of livestock and degrading wildlife habitats.
1.2 Livestock Production in Cholistan.
1.2.1 Breeds
Page 9
-
8/6/2019 Feasibility by AGROTECH Cholistan
10/75
Livestock Production Farm, Cholistan 2009
Camels, cattle, sheep and goats are the predominant types of livestock. Cattle are the most precious
livestock species of pastoral lifestyle followed by sheep, goats and camels. The productivity (birth
rates) among cattle is the lowest. Lambing occurs mainly during the months of January/February.
Goats are kept in smaller numbers due to: i) lack of browse when animals are taken to irrigated
areas during droughts; ii) to avoid predation by jackals; and iii) because of difficulties encountered
in controlled grazing in irrigated areas. Camels are also owned mainly for transportation purposes.
Notable breeds of livestock in Cholistan are as follows:
Cattle: Cholistani and Hasari
Goat: Jattal (Cholistan goat)
Sheep: Buchi, khadali, sipli
Camel: Marecha and Brella
Generally, split herding prevails in cattle and small ruminants. Small calves in the case of cows
and lambs and kids in case of sheep and goats are kept at pens near the tobas, while the adults are
allowed to roam around for grazing in the open range areas of the desert. Most cattle and camel are
not herded. In the case of the cattle, the animals are driven out of the house to graze freely and they
return home by themselves in the evening. Mortality rate is high among cattle alone ranges from 5
to 60 percent [1]. The main causes of mortality are related to droughts, poor nutrition due to
shortage of feed and water and diseases caused by nutrition stress. No livestock health facilities are
available in the desert, only limited health services are available in peripheral small towns and
vaccination of livestock is not practiced regularly.
1.2.2 Livestock production and availability of feed
Page 10
-
8/6/2019 Feasibility by AGROTECH Cholistan
11/75
Livestock Production Farm, Cholistan 2009
The rangelands in Cholistan desert are monsoonal and forage production in these rangelands
depends heavily on monsoon rains (amount, time, and frequency). The health of the animals, their
production, birth and mortality rate relates directly to the availability of vegetation. During normal
rainfall years (100200mm) green herbaceous production remains critically low, particularly for
cattle and sheep and animals remain unnourished. Once or twice in ten years forage production is
sufficient for year round grazing of the livestock. During good years the production of livestock
and by products is sufficient enough when owners have some earnings. After successive drought
years the forage production declines drastically and vegetation growth is practically nil. The
grazing period starts from August till February during good rainy years.
At present, the total livestock population in Cholistan is around 134,798 animal units (AU). The
animal unit is considered as an adult cow weighing 350 kg (400 kg at international level) and
consuming 7 kg dry matter forage per day in Cholistani conditions. The total annual dry matter
forage demand in Cholistan is .34 million tons while the available dry matter forage is .12 million
tons. Thus there is an annual shortage of 0.22 million tons dry matter forage ( Table 1 ). It has been
noticed that at the moment, some 88,655 AU are in excess of the present carrying capacity [13].
The rangelands of Cholistan are under severe threat of degradation because of overgrazing and
harsh climatic conditions. Due to continuous grazing, the desirable palatable species are vanishing
at an alarming rate and relatively unpalatable species are spreading and dominating the landscape.
The severity of the problem can be seen from the fact that such highly desirable grass species as
Pennisetum divisum and Cenchrus setigerus have disappeared from most part of the Cholistan
desert rangelands.
Page 11
-
8/6/2019 Feasibility by AGROTECH Cholistan
12/75
Livestock Production Farm, Cholistan 2009
Table 1: Annual demand and supply of dry matter forage in Lesser and Greater Cholistan.
Livestock population
(AU)
Annual forage
demand (tons)
Forage available tonsDeficit
(tons)
Lesser (1,237,000 ha) Greater (1,369,000 ha)Total (tons)
(2,606,000 ha)
134,798 344,409 55,962 61,934 117,896 226,513
1.2.3 Livestock production and health management
Three inter related aspects of animal health i.e. feed, water and disease have been encountered in
Cholistan desert. Deficiencies in the availability of forage (quantity and quality), drinking water
(saline or polluted) and free mixing of diseased animals with healthy ones during grazing expose
livestock to various types of diseases. Veterinary health centres or hospitals are not available
towards the interior of the desert and very few poorly equipped small units are available in
peripheral cities. Livestock owners often become distressed and helpless when their livestock,
particularly cattle fall seriously ill. Some traditional homemade herbal preparations are used to
treat sick animals. The mortality rate is very high and drought conditions increase stress due to
malnutrition and lack of water causing various diseases. The most common diseases occurring in
various livestock species are as follows:
Page 12
-
8/6/2019 Feasibility by AGROTECH Cholistan
13/75
Livestock Production Farm, Cholistan 2009
large ruminants: haemorrhagic septicaemia, black quarter, foot and mouth disease,
anthrax, mange, surra, camel pox, endo and ectoparasites, etc.;
small ruminants: enterotoxemia, pleuropneumonia, sheep and goat pox, anthrax, liver
fluke, endo and ectoparasites, etc.
The amount of livestock population that have died and suffered from various diseases in Cholistan
desert is given in table 2. Traditionally, reasonable disease diagnostic know how is available at the
toba level. However, disease treatment capabilities of the herders are very limited and medicines
are available at places that are far away from their tobas. Therefore, a large number of the animals
infected with disease were either not provided any treatment or were given indigenous treatment.
Table 2: Death and disease incidence among livestock population.
Items Cattle Camel Sheep Goat
Farms reported disease incidence 49.69 5.45 59.02 34.12
Population suffered 5.64 1.65 12.19 19.37
Mortality 2.72 0.55 9.31 7.78
1.2.4 Livestock marketing
The pastoral nomads in Cholistan desert are living very much below the poverty line due to the
lack of education or of skilled labor and to their entire dependence on meager natural resources.
The quantity and quality of livestock is not good enough to support a family. Marketing is
Page 13
-
8/6/2019 Feasibility by AGROTECH Cholistan
14/75
Livestock Production Farm, Cholistan 2009
generally practiced through a middleman (locally called Beopari) who collects animals from
various nomads camping sites near tobas on the outskirts of small towns. Seasonal, monthly, and
weekly livestock markets operate at various levels depending on the availability of animals for
sale. Livestock by products including homemade mats prepared from raw wool are also brought to
the markets. The money earned through sale of livestock is not enough to meet the requirements
for food or for animal feed and fodder.
1.3 Constraints for Animal Production
The major constraint in livestock production in Cholistan Desert is the shortage of sweet water.
This is compounded by the prolonged droughts of many years when toba water dried out
completely. In Greater Cholistan, feed for livestock is still available, but the toba water is depleted
and the thirsty herds are forced to migrate towards semi permanent settlements where well water is
adequate but of poor and saline quality not fit for drinking. The wells are unlined and must be re
dug each season. On the other hand in the western part (Lesser Cholistan) the quantities of both
water and feed are inadequate. Landless pastoralists suffer due to the scarcity of rangelands for
grazing in the irrigated fringes where they work as poorly paid labor or as tenant farmers on
farmlands generally used for agricultural crops. The combination of long distances travelled by
the livestock in search of forage, harsh temperature rising above 50oC, inadequacy of feed,
undernourishment and highly saline drinking water from wells, all contribute to high mortality
rates.
1.4 Justification of the Project
Page 14
-
8/6/2019 Feasibility by AGROTECH Cholistan
15/75
Livestock Production Farm, Cholistan 2009
To address the issue of declining revenues and tighter margins, producers have been looking at
various diversification options to help bolster incomes and expand marketing options. One such
diversification option for producers is to form community owned cow/calf operations. This can be
an attractive option to some producers, since it allows diversification without having to make
significant changes or capital investments in their individual operations, but still enables them to
diversify and make use of the calf enterprise is achieved through the purchase of shares in the
newly formed entity (corporation or co op).
Under this project, farmers rearing herds of Cholistani cows, a breed of Sahiwal cow which
produces above normal quantities of milk and meat, will be provided facilities like better pedigree
improvement, balanced feed and disease protection through a comprehensive vaccination and
veterinary plan. Cholistani cow is famous for resisting harsh climatic conditions of Cholistan.
Cholistani cow on an average is capable of producing 1,000 litres of milk per annum and if plans
are implemented, this average can be enhanced up to 1,700 1,800 litres per annum. Similarly, 50
per cent of beef produced in Punjab is from Cholistan and this project will tremendously boost
beef and milk production further.
Page 15
-
8/6/2019 Feasibility by AGROTECH Cholistan
16/75
Livestock Production Farm, Cholistan 2009
Chapter: 2
Integration of the Farm with Local Producers
Voting shareholders elect a board of directors who form and implement strategies and policies.
The board of directors will hire a general manager/ farm manager who is responsible for the
running of the day to day operations of the business. The general manager hires additional staff to
assist with the execution of these duties. Shareholders receive profits earned through the operation
of the business through dividend payments.
In addition to dividend payments as an investor, producers and investors may also be able to
receive additional returns to their individual farming operations as a result of the establishment of
a large community owned cow/calf enterprise, in the form of better marketing opportunities, better
awareness about operations and sourcing of inputs.
2.1 Benefits of Community Owned Integrated Livestock Production
By combining resources in a community owned business, the cow/calf operation will be
able to achieve greater economies of scale than individual producers could achieve on their
own.
Page 16
-
8/6/2019 Feasibility by AGROTECH Cholistan
17/75
Livestock Production Farm, Cholistan 2009
The cow/calf enterprise will be a stand alone business making use of specialized labor
without requiring additional labor from the investors.
Producers can benefit from the competitive advantages Government provides in the
cow/calf industry.
Provides farmers with alternative marketing opportunities to further diversify their
operations. Some of these opportunities include sale of cattle feed and forage.
Ability to have manure spread on land either through grazing or by mechanical means to
improve soil fertility and reduce fertilizer expenses.
Page 17
-
8/6/2019 Feasibility by AGROTECH Cholistan
18/75
Livestock Production Farm, Cholistan 2009
Chapter: 3
Risk assessment, of Corporate Livestock Production
Farm in Cholistan
The project might face different internal as well as external risks, should be mitigate to smoothly
run the project in profitable environment.
Scarcity of Water
Low rainfall, high rates of evapotranspiration, low groundwater recharge and absence of perennial
streams explain the general scarcity of water in Cholistan. Though the farm would be established
in the area where sweet underground water is available ( area of Mojgarh). The use of water to
cultivate cash crops, or other more water consuming verities of crops. Methods of irrigation, like
surface irrigation would be a reason high rate of evapotranspiration.
To mitigate Government has to take some severe actions to conserve the whole ecosystem. For
that purpose authorities should pass on some law for the conservation of the underground water.
Page 18
-
8/6/2019 Feasibility by AGROTECH Cholistan
19/75
Livestock Production Farm, Cholistan 2009
And can only be utilized for drinking purpose, for both human and livestock. And can also be
utilized for highly value added horticulture, like cultivation of fodder for silage making.
Risk 2: Political Interference
There is a strong possibility of politicians trying to interfere in the implementation of the
programme. Both the livestock and land based interventions of the programme will, at the pilot
stage, be limited to a small number of the poor local people. It will of necessity involve selection
from amongst a large number of applicants. It could be viewed as a method for patronage and
attract the attention of local politicians, Members of National and Provincial and even cabinet
Ministers. There would be pressure on the Programme Coordinator and team and on implementing
partners at the district level to select the beneficiaries of their choice.
In mitigation, a number of initiatives are needed to protect the programme from political
interference. First, the political leadership and the senior officials involved with the programme
will need to be sensitized to this problem. Second, the level programme management teams would
have to be specially cautioned to look out for this and to resist it. Third, all systems and procedures
of the programme should remain transparent.
Risk 3: Capacity of partners
Page 19
-
8/6/2019 Feasibility by AGROTECH Cholistan
20/75
Livestock Production Farm, Cholistan 2009
Since the participatory stake holders are not used to corporate business environment. A dedicated
programme M&E unit will be located within the P&D to monitor and ensure effective
implementation of the programme. In addition, frequent interaction with key stakeholders is
extremely important to keep them aware engaged.
Management of the Livestock component will be contracted out ensuring close links are
maintained with the Punjab Livestock Department. The Livestock Department will be involved in
oversight and use of carefully selected personnel from the department for implementation of
district level interventions. Private sector will be invited to bid for the sectoral interventions and a
proactive approach will be adopted to keep the private sector engaged.
Risk 4: Business Model of the Farm
At this moment there is no single solution to the future business model for this livestock farm. The
two options are, Cooperative entity registered under the Cooperative Society ACT 1925, under this
act community cooperative society can run a commercial business. Since the rest of all the
business model would run on the Corporate style, where ownership of the farm would be different
from the Technical Management team of the farm. It would be a challenge to run the farm in this
situation without major conflict between the community owners and the farm management.
Business registration as a company, under company ACT 1986, would be a good proposition. A
balance of the power amongst the owners and the management is very essential.
Page 20
-
8/6/2019 Feasibility by AGROTECH Cholistan
21/75
Livestock Production Farm, Cholistan 2009
Risk 5: High Prices for Fuel/ Electricity
Since proposed farm would not have regular electricity connection in near future and would run on
the diesel power generator, escalating prices of the fuel would have serious risk to the profitability
of the farm and ultimately poor productivity of the farm.
In future other sources of renewable energy like biogas and solar panels can be utilized to fullfill
the power needs of the farm. As a matter fact, power generation with Biogas in itself a very
fruitful project and should be dealt separately and a fullfleg study should be carried out to explore
the potential of this very cheap and easily available source of energy.
Risk 6: Lack of Marketing Efforts/ Forward Linkage
Farm had been planned to trigger the local and international market, any lack of interest on this
horizon would result in poor marketing outcomes and ultimately poor profitability. Another aspect
this risk is the fact that this farm would be a benchmark for the local community to explore the
new marketing channels any such failure would set wrong example and would shatter the
confidence of the stakeholders as well as local community.
Page 21
-
8/6/2019 Feasibility by AGROTECH Cholistan
22/75
Livestock Production Farm, Cholistan 2009
Special efforts should be engaged, by the Livestock department by the participation of different
governmental as well as private channels to keep the farm on right marketing avenues.
Risk 7: Disease Free Zoning at Farm
For the local and international marketing the farm should be disease free zone. Any failure in bio
security would result in any disease outbreak and would damage the credibility of the farm.
Further can be a risk to the local population of the Livestock.
A proper bio security plan should be followed, and farm should have linkage with the local as well
as international accreditations bodies. General guidlines of the OIE should be folloed to
established a disease free zone at farm.
Risk 8: General Risks for the Project
Due to the large start up costs and additional overhead (e.g. hired labor), profitability of the
operation will be susceptible to financial risks associated with fluctuations in calf prices and
interest rates, especially during the first years of operation.
Profits of the business must be shared with other investors. Profits during startup will
likely be small, resulting in limited return on investment during these years, especially if
small profits are split among a large number of investors.
Page 22
-
8/6/2019 Feasibility by AGROTECH Cholistan
23/75
Livestock Production Farm, Cholistan 2009
Investors in the business may share different goals leading to conflicts among board of
directors and investors.
Increased regulatory requirements must be followed when setting up a large intensive
livestock operation.
Risk of limited acceptance within the community could lead to shortages of inputs required
(e.g. capital, feed, pasture), resulting in economies of scale not being achieved.
Page 23
-
8/6/2019 Feasibility by AGROTECH Cholistan
24/75
Livestock Production Farm, Cholistan 2009
Chapter: 4
Technical and Financial Feasibility of Integrated
Livestock Production Farms
4.1 Size of the farm
A manageable yet viable size of the farm is of 250 breeding animals, for production of milk, and to
get cross bred and purebred heifers and calves. Farm also includes 300 calves for fattening and
having two production cycles of 180 days each. So at one time farm has, 250 breeding animals,
300 fattening calves and two crops of progeny calves of 175 each (assumed on 70% herd
fertilization), heifers and calves will be sold at the age of two years .
4.2 Land
The farm would hold 500 acres of land. For the construction of the sheds and accessory buildings
including silo pits etc, 25 acres of land would be allocated. Fodder crops would be cultivated on
Page 24
-
8/6/2019 Feasibility by AGROTECH Cholistan
25/75
Livestock Production Farm, Cholistan 2009
150 acres of land for cultivating green fodder through forced irrigation and then making silage.
And remaining 325 acres of land will be utilized for grazing the animals. All the farm premises,
500 acres would be fenced, to provide security and to avoid slip of animals.
4.3 Site Selection
Site selection for this project would be one of the critical parameters, which will determine the fate
of the project. This very important decision would further be contingent with the availability of
the underground sweet water. In other considerations, road infrastructure is also important. And
the last but not the least willingness of the local community to participate in this community
owned farm.
As a matter of fact the decision of site selection further needs a thorough study of the geographical
as well as community parameters. The ultimate decision would be made in the light of such a
study.
4.4 Selection of the Animals
The breeding animals would be selected from the herds of participating members of the farm from
local community. The animals would be selected preferably be in their 2nd and 3rd lactation as the
animals at this stage prove to be more profitable because of their productive and reproductive
performance. For breeding animals artificial insemination with quality semen would be done. The
average milk production per animal would be expected about 6 liters per day, with a lactation
period of 250 days.
Page 25
-
8/6/2019 Feasibility by AGROTECH Cholistan
26/75
Livestock Production Farm, Cholistan 2009
Calves for fattening program would be purchased from the local community. Fattening program
has two production cycles per year. In one cycle 300 animals would be procured of initial weight
of 150 kg and age of 12 months, would be kept for about six month and the final weight would be
250 kg with ultimate gain of 100 kg. This finished weight would be ideal for beef export market
and would be sold to beef exporter.
The second lot of the fattened calves would be prepared to cater the live animal market for Eid ul
Ezha. For this production cycle of fattened animals, animals of 18 months and of live weight 200
250 kg would be procured. Calves would be kept for 6 months, on the completion of this
production program animals would reach the age of 24 months (right age for Sacrifice) and the
finished live weight would be 300 350 kg.
4.5 Buildings
Buildings on a dairy farm consist of sheds for different classes of animals, milk room, storage
facilities for feed ingredients and equipment, and an attendant room. The animal sheds would be
well lighted, ventilated yet sufficiently provide protection from sun, wind draughts and rain. The
sheds must be provided with water troughs. The floor of the sheds should preferably be paved to
keep it clean and dry. Along with each shed an open paddock should be provided with kasha floor
for exercising and loafing at night during summer. Space requirements and estimated cost of
different farm buildings is given in the design portion.
Table 3: CIVIL WORK COST OF DIFFERENT ELEMENTS IN CATTLE FARM
Sr. Description of Different Items Amount (Rs.)
Page 26
-
8/6/2019 Feasibility by AGROTECH Cholistan
27/75
Livestock Production Farm, Cholistan 2009
#
1 Cattle Shed Area (248X300) 13,251,410.00
2 Main Steel Gate 18X7 & Wicket Gate 3X7 117,600.00
3Fence Around Shed area 25 Acres (Pre cast pillars with 3 horizontal barbed
wires and 2 diagonal wires)630,000.00
4 Road Embankment/Filling +10 above N.S.L. 570,000.00
5 12 wide Brick Soling Track around Shed Area 714,750.00
6 Office Block (450 Sft) 450,000.00
7 Parking Area/Paved Area (755 Sft) 45,300.00
8 Managers Residence (1,500 Sft) 1,500,000.00
9 Machinery & Equipment Store (1,200 Sft) 600,000.00
10 Generator Room 12X18 (216 Sft) 129,600.00
11 Tube well Room 12X12 (144 Sft) (Excluding the cost of boring & machinery) 86,400.00
12 Overhead Water Tank (15,000 Gallons) 2,500,000.00
13 Staff Hostel (1,610 Sft) 1,610,000.00
14 Calving Pens (1,500 Sft) 450,000.00
15 Young Calf Pens (1,600 Sft) 480,000.00
16 Milking Pens (500 Sft) 150,000.00
17 Trench Silos; 2 Nos. 20X80 each (1,600+1,600 Sft) 1,600,000.00
18 Chaff Cutter Shed (500 Sft) 175,000.00
19 Feed mill & Store Area (1,500 Sft), Excluding any equipment cost 900,000.00
20 Molasses Tank (6,000 Gallons) 300,000.00
21 Sick Animal Shed (500 Sft) 150,000.00
Page 27
-
8/6/2019 Feasibility by AGROTECH Cholistan
28/75
Livestock Production Farm, Cholistan 2009
22 Quarantine Shed (700 Sft) 210,000.00
23 Dip; 2 Nos. 168,000.00
24 Manure Disposal Pits; 2 Nos. (1,000 Cft) 200,000.00
TOTAL COST OF CIVIL WORK FOR THE SHED AREA (Rs.) 2,698,8060.00
Page 28
-
8/6/2019 Feasibility by AGROTECH Cholistan
29/75
Livestock Production Farm, Cholistan 2009
4.6 Farm Machinery and Equipments:
The following machinery and equipments are generally needed on a dairy farm for production and
supply of fodder, feeding and milking of animals, handling and storage of milk and cleaning of
buildings, equipment and other accessory structures. A power generator of 25 KVA would be
installed to produce energy to carry out important functions like pumping the water, operating
milking machines, and mixing cattle concentrate feed. It is recommended that in future the basic
power utility functions of the farm would be carried out through the utilization of solar energy.
Table 4: Equipment Required Est. Price Qty. Total
Tractors 90 HP
1,200,0
00 1
1,200,0
00
Tractors 60 HP
600,0
00 1
600,0
00
Chisel Plough 7 times 6 to 8 inches
60,0
00 1
60,00
0
Rotavators 60 blades
140,0
00 1
140,0
00
Raised bed combo Planter for Fodder Corn 4 Rows with Fertilizer
Banding
260,0
00 1
260,0
00
Booder Dick
35,0
00 1
35,00
0
Spry Machines 45 ft boom
170,0
00 1
170,0
00
Tipping Trailers 2 tipping (12 ft) 1 18 ft loaders
260,0
00 1
260,0
00
Front End Loaders/Flock
400,0
00 1
400,0
00
Corn Chopper
500,0
00 1
500,0
00
Page 29
-
8/6/2019 Feasibility by AGROTECH Cholistan
30/75
Livestock Production Farm, Cholistan 2009
Fuel Tanker 4000 Lit350,0
00 1350,0
00
Motor Bicycle
80,0
00 1
80,00
0
Total
4,055,0
00
4.7 Feed Requirements
4.7.1 Feed Requirements of the Breeders
The farm would be designed so that animals would have stall feeding as well as grazing.
Breeding animals would be stall fed unless they are in milking, dry animals will be moved to
grazing. Since grazing would be made on the self growing vegetation, which further dependent on
rain, so for such an intensive farming model, grazing would be utilized as an extra advantage and
all other financial calculation be made on 365 days stall feeding assumption.
As a thumb rule, total dry matter intake of a mature breeder cow, is expected 3.5 % of its live body
weight which is assumed to be 400 450 kg. So the total dry matter intake per animal would be
about 15 17 kg. Silage is assumed to have about 50% dry matter, so 25 kg silage would serve the
roughage requirement of the animal. As a rule of thumb 2 Kg of concentrate is required for
Page 30
-
8/6/2019 Feasibility by AGROTECH Cholistan
31/75
Livestock Production Farm, Cholistan 2009
production of 3 Liters of milk, so 3 kg of concentrate for each animal per day having average milk
production of 6 lit/day would be sufficient to meet the nutrient requirement of the animal.
4.7.2 Feed Requirement of the Heifers.
The calves would not mother fed, instead liquid milk replacer will be given for the period of 60
days. In second phase heifers and calves would be given Starter rations for a period of 120 days,
during that time calves will be of age, 5 months and will shifted to third phase of feeding the
grown up feed, which comprised of silage and concentrates, that period would be of about
540days.
4.7.3 Feed Requirement for Fattening Animals.
Calves on fattening program either, for export market or, Enid lot, would be given silage and
concentrate and would be completely stalled fed. An average consumption 15 kg of silage is
assumed on 200 kg average weight of the fattening calf. An additional 1.5 1.8 kg of concentrate
would be given to achieve the desired target weight.
Page 31
-
8/6/2019 Feasibility by AGROTECH Cholistan
32/75
Livestock Production Farm, Cholistan 2009
4.8 Fodder Production and development of Silage:
To grow fodder and then to made silage, 100 acres of land would be dedicated. This piece of land
would be irrigated through forced irrigation or drip irrigation. A complete lay out plan would be
followed along with fodder cultivation strategy. Two crops of fodder types of maize would be
cultivated, and would produced about 7800 metric tons of green fodder, by assuming 26 metric ton
production per acre. This much production of green fodder would produced silage 3900 metric
ton, by assuming 50% moisture loss during the preparation of silage from the green fodder. This
produced enough silage to support the total population of animals at farm.
Table 5: Fodder Production, development of Silage and its Consumption
FODDER PRODUCTION AND CONSUMPTION
PRODUCE
Yield per Acre
M
Tons 26
Crops 2
Green Fodder per Annum per Acre
M
Tons 52
Cultivation Acres 150
Green Fodder per AnnumM
Tons7,8
00
Kgs
7,800,00
0
Silage (At 50% yield of Green Fodder)
3,900,00
0
Page 32
-
8/6/2019 Feasibility by AGROTECH Cholistan
33/75
Livestock Production Farm, Cholistan 2009
CONSUMPTION SILAGE
Breeding Animals Nos 250
Consumption per Day per Animal Kgs 25
Annual Consumption per Animal Kgs
6,2
50
Annual Consumption Kgs
1,562,50
0
Heifers & Calves 175
Consumption per Day per Animal Kgs 15
Annual Consumption per Animal Kgs
4,1
25
(25 Kgs X 550days / 2)
Annual Consumption (80 Hers X 6,875
Kgs) Kgs
721,87
5
2,284,37
5 58.51%
Fattening Nos 600
Consumption per Day per Animal Kgs 15
Feeding Day Days 180
Annual Consumption per Animal Kgs
2,7
00
Annual Consumption (600 X 1,500 Kgs) Kgs
1,620,00
0 41.49%
Total Consumption Kgs
3,904,37
5 100.00%
SILAGE Surplus to requirement Kgs
(4,37
5)
Page 33
-
8/6/2019 Feasibility by AGROTECH Cholistan
34/75
Livestock Production Farm, Cholistan 2009
4.9 Manpower Requirements:
The operation management would be responsibility of the Farm Manager, would have previous
experience of managing farm like that and capable of making day to day decisions. Rest of the
team would be comprised of 3 supervisors and 44 workers responsible for feeding, milking and
other daily chores at the farm including maintaining records, market supplies and health care of the
herd. Workers from the local community would be preferred and in this way generate
employment for the locals.
Table 6: Labor expenditure sheet.
Salary per month (Rs) Cost per annum(Rs)
Manager (Rs 6000012) 60000 720000
Supervisors 3 (3Rs 1500012) 15000 540000
Workers 44 (44600012) 6000 3168000
Cost per annum 4428000
Page 34
-
8/6/2019 Feasibility by AGROTECH Cholistan
35/75
Livestock Production Farm, Cholistan 2009
4.10 Capital Expenditure
Table 7: Capital Expenses Detail.
Page 35
COST DepreciationRs Life (Yrs) Rs
ences for land of 500 Acres [Note (a)] Raft 18,700
Chain Link Cost per Raft [Note (b)] Rs/Rft 110 2,057,000 20 102,850
ressurized Irrigation System Acres 150
Cost per acre Rs/ Acre 65,000 9,750,000 10 975,000
Machinery (Tractors,harvesters,TMR Mixer , trolley,
igger, crush, weighing scale etc Cost estimate from
Farmall") 4,550,000 10 45
Milking Machine (milking line) 1,000,000 10 10
Generators (25 KVA) and Electrification 2,500,000 10 25
Vehicles ( Double Cabin Hilux and Carry or similar) 1,200,000 10 12
Drinking water , boring, piping, over head tank 10
Office Equipments 300,000 10 3
Civil work, animal sheds, ancillary buildings etc 26988060 20 1,34
48,345,060 3,38
-
8/6/2019 Feasibility by AGROTECH Cholistan
36/75
Livestock Production Farm, Cholistan 2009
4.11 Financial Costing
4.11.1 Operating Cost
Table 8: Operating Costs of the farm.
OPERATING COSTS Rup
Cost of breeding animals Amortized over its life period Note 1
Fattening Animal Cost at 12 months age Note 2
2
0
Feed cost Breeding Animals Note 3
6
4
Feed cost Heifers & Calves Note 4
5
5
Feed Cost Fattening animal Note 5
4
0
Manpower Cost Note 6
4
0
Fuel Charges Tractor based on an estimate of 20 Ltrs/Day @ Rs
58/Ltr
Rs /
Month
34,80
0
Vehicle Running ExpensesRs /
Month10,00
0
Insemination Cost ( @ Rs 500 per shot for 240 times)
Depreciation As per Capital Expenditure schedule
3
3
Repairs and Maintenance
Rs /
Month
30,00
0
Auditors Fee
Borrowing Cost Note 8
5
6
Insurance Note 8
35
8
Page 36
-
8/6/2019 Feasibility by AGROTECH Cholistan
37/75
Livestock Production Farm, Cholistan 2009
4.11.2 Revenue Generated
Table 9: Revenue generated at farm:
REVENUE Rupees
Revenue from Sale of Fattened animals (600 X Rs 85 X 250 Kgs) 12,750,
Heifers Sale (76 X Rs 100,000) Nos
8
3 8,312,
Calves sale Male ( 76 X Rs 80,000)) Nos
8
3 6,650,
Milk Sale (6 Ltrs X 250 Days X Rs 27 X 300 Cows) Rs/ Annum 10,125,
Silage (75,000 Kgs @ Rs 1.50 per Kg) Rs/ Annum (6,5
Farm Yard Manure (Rs 3,000 for 300 animals and Rs 1,000 for 400 animals) Rs/ Annum 3,000,
Sale of spent Cows assumed at buying cost amortized over life period Rs/ Annum 468,750
41,299,
Page 37
-
8/6/2019 Feasibility by AGROTECH Cholistan
38/75
Livestock Production Farm, Cholistan 2009
4.11.3 Profit Earned
Table 10: Profit earned at farm.
Operating Expenses(RS) 35,316,008Revenue Generated (Rs) 41,299,688
PROFIT EARNED(RS) 5,983,680
Page 38
-
8/6/2019 Feasibility by AGROTECH Cholistan
39/75
Livestock Production Farm, Cholistan 2009
Chapter: 5
SILAGE BASED FODDER PRODUCTION ON
MODERN TECHNOLOGY
5.1 Pressurized Irrigation Systems
Due to scarcity of water only 25% of rain fed area is cultivated. Adoption of obsolete system
irrigation result in poor application and distribution efficiencies. In most of the areas, the land is
highly undulated and precision land leveling is, therefore, not a feasible option. As such, gravity
irrigation is not possible in these areas. Therefore, it is of utmost importance that this scarce
resource is utilized most efficiently. Small scale sprinkler and drip irrigation techniques have been
successfully introduced in Pakistan, and are particularly well suited area like Cholistan.
Application efficiencies can be raised to 75 to 85%, permitting almost full use of scarce water
supplies. An additional advantage as compared with surface irrigation is that efficient irrigation
can be carried out even where topography is undulated and soil is light textured as is the case in
Page 39
-
8/6/2019 Feasibility by AGROTECH Cholistan
40/75
Livestock Production Farm, Cholistan 2009
much of the barani areas. Rain gun sprinkler and drip irrigation systems have been locally
developed which are comparatively inexpensive.
5.2 Silage Fermentation and Preservation
Quality silage is achieved when lactic acid is the predominant acid produced, as it is the most
efficient fermentation acid and will drop the pH of the silage the fastest. The faster the
fermentation is completed, the more nutrients will be retained in the silage.
5.2.1 The Fermentation Process
Harvesting forages as silage is a compromise between reducing labor requirements and field losses
versus losses in the fermentation process that will eventually preserve the crop. Ideal fermentation
is dependent upon decisions and management practices implemented before and during the
ensiling process. The primary management factors that are under the control of the producer are:
1. Stage of maturity of the forage at harvest.
2. The type of fermentation that occurs in the silo or bunker.
3. Type of storage structure used and methods of harvesting and feeding.
Page 40
-
8/6/2019 Feasibility by AGROTECH Cholistan
41/75
Livestock Production Farm, Cholistan 2009
During the ensiling process, some bacteria are able to break down cellulose and hemicelluloses to
various simple sugars. Other bacteria break down simple sugars to smaller end products (acetic,
lactic and butyric acids). The most desirable end products are acetic and lactic acid. As the bacteria
degrade starches and sugars to acidic and lactic acids, dry matter is lost.
Attention to details such as speed of harvesting, moisture content, length of chop, silage
distribution and compaction can greatly influence the fermentation process and storage losses.
Efficient fermentation ensures a more palatable and digestible feed, which encourages optimal dry
matter intake that translates into improved animal performance. Making consistent, high quality
silage requires sound management decisions and attention to details.
It is important that bacteria responsible for production of acetic and lactic acid grow and multiply
immediately after storing the forage for maximum quality haylage. Proper packing of the hay and
voiding of air (oxygen) provides the environment needed by bacteria to break down fiber
components and sugars. Oxygen must be removed from the haylage to maximize reproduction of
acetic and lactic acid producing bacteria. Microbes (bacteria) responsible for fermentation need
anaerobic (in the absence of air) conditions. As bacteria consume sugars, end products produced
(acetic and lactic acid) cause the pH to drop.
Quality silage is achieved when lactic acid is the predominant acid produced, as it is the most
efficient fermentation acid and will drop the pH of the silage the fastest. The faster the
fermentation is completed, the more nutrients will be retained in the silage.
A critical time during the ensiling process occurs after the initial three to five days and requires
some 15 to 20 days for completion. The success of the ensiling process is determined during these
Page 41
-
8/6/2019 Feasibility by AGROTECH Cholistan
42/75
Livestock Production Farm, Cholistan 2009
two weeks. There is a gradual increase in lactic acid as lactic acid producing bacteria break down
simple sugars. The pH drops to between 3.8 to 4.2. At such acidic conditions, further bacterial
action is topped. The critical difference between silage and haylage is the effect of moisture
content of the forage during this two week fermentation process. If the forage is too dry,
fermentation is restricted and the pH cannot drop sufficiently. If pH of the haylage does not drop
sufficiently, spoilage will occur.
Page 42
-
8/6/2019 Feasibility by AGROTECH Cholistan
43/75
Livestock Production Farm, Cholistan 2009
The following six phases describe what occurs during ensiling, storage and feed out of
fermented forages:
Phase I
As the forage is harvested, aerobic organisms predominate on the forage surface. During the initial
ensiling process, the freshly cut plant material, and more importantly the aerobic bacteria, continue
to respire within the silo structure. The oxygen utilized in the respiration processes is contained
within and between the forage particles at the time of ensiling. This phase is undesirable since the
aerobic bacteria consume soluble carbohydrates that might otherwise be available for the
beneficial lactic acid bacteria or the animal consuming the forage. Although this phase reduces the
oxygen to create the desired anaerobic conditions, the respiration process produces water and heat
in the silage mass. Excessive heat build up resulting from an extended Phase I period can greatly
reduce the digestibility of nutrients such as proteins.
Another important chemical change that occurs during this early phase is the breakdown of plant
proteins. Proteins are first reduced to amino acids and then to ammonia and amines. Up to 50
percent of the total plant protein may be broken down during this process. The extent of protein
breakdown (proteolysis) is dependent on the rate of pH decline in the silage. The acid environment
of the silage eventually reduces the activity of the enzymes that break down proteins.
Phase I ends once the oxygen has been eliminated from the silage mass. Under ideal crop and
storage conditions, this phase will last only a few hours. With improper management, this phase
Page 43
-
8/6/2019 Feasibility by AGROTECH Cholistan
44/75
Livestock Production Farm, Cholistan 2009
could continue for several weeks. The primary objective at ensiling time is to manage the crop
so air infiltration is minimized; thereby shortening the time required to achieve an anaerobic
environment. Key management practices are proper maturity, moisture, chop length and
rapid filling with adequate packing and proper sealing of the storage structure.
Phase II
After the oxygen in the ensiled forage has been utilized by the aerobic bacteria, Phase II begins.
This is an anaerobic fermentation where the growth and development of acetic acid producing
bacteria occurs. These bacteria ferment soluble carbohydrates and produce acetic acid as an end
product. Acetic acid production is desirable as it can be utilized by ruminants in addition to
initiating the pH drop necessary to set up the following fermentation phases. As the pH of the
ensiled mass falls below 5.0, the acetic bacteria decline in numbers as this pH level inhibits their
growth. This signals the end of Phase II. In forage fermentation, Phase II lasts no longer than 24 to
72 hours.
Phase III
The increasing acid inhibits acetic bacteria and brings Phase II to an end. The lower pH enhances
the growth and development of another anaerobic group of bacteria, those producing lactic acid.
Phase IV
This is a continuation of Phase III as the lactic acid bacteria begin to increase, ferment soluble
carbohydrates and produce lactic acid. Lactic acid is the most desirable of the fermentation acids
Page 44
-
8/6/2019 Feasibility by AGROTECH Cholistan
45/75
Livestock Production Farm, Cholistan 2009
and for efficient preservation, should comprise greater than 60 percent of the total silage organic
acids produced. When silage is consumed, lactic acid will also be utilized by cattle as an energy
source. Phase IV is the longest phase in the ensiling process as it continues until the pH of the
forage is sufficiently low enough to inhibit the growth of all bacteria. When this pH is reached, the
forage is in a preserved state. No further destructive processes will occur as long as oxygen is kept
from the silage.
Phase V
The final pH of the ensiled forage depends largely on the type of forage being ensiled and the
condition at the time of ensiling. Haylage should reach a final pH of around 4.5 and corn silage
near 4.0. The pH of the forage alone is not a good indicator of the quality of the silage or the type
of fermentation that occurred. Forages ensiled at moisture levels greater than 70 percent may
undergo a different version of Phase IV. Instead of lactic acid producing bacteria developing, large
populations of clostridia bacteria may grow in the silage. These anaerobic bacteria produce butyric
acid rather than lactic acid, which results in sour silage. With this type of fermentation, the pH may
be 5.0 or above.
Phase VI
This phase refers to the silage as it is being fed out from the storage structure. This phase is
important because research shows that nearly 50 percent of the silage dry matter losses occur from
secondary aerobic decomposition. Phase VI occurs on any surface of the silage that is exposed to
oxygen while in storage and in the feed bunk. High populations of yeast and mold or the
mishandling of stressed crops can lead to significant losses due to aerobic deterioration of the
Page 45
-
8/6/2019 Feasibility by AGROTECH Cholistan
46/75
Livestock Production Farm, Cholistan 2009
silage. Proper management is vital to reduce these losses and improve the bunk life (aerobic
stability of the silage.
Page 46
-
8/6/2019 Feasibility by AGROTECH Cholistan
47/75
Livestock Production Farm, Cholistan 2009
Table 11. Six phases of silage fermentation and storage.
Phase I Phase II Phase III Phase IV Phase V Phase VI
Age of Silage02 days 23 days 34 days 421 days 21 days
Activity Cell
respiration;
production
of
CO2, heat and
water
Production
of acetic acid
and lactic
acid ethanol
Lactic
acid
formation
Lactic
acid
formation
Material
storage
Aerobic
decomposition
on re exposure
to oxygen
Temperature
Change*
6990 F 9084 F 84 F 84 F 84 F 84 F
pH Change 6.56.0 6.05.0 5.04.0 4.0 4.0 4.07.0
Produced Acetic acid
and lactic
acid bacteria
Lactic
acid
bacteria
Lactic
acid
bacteria
Mold and
yeast activity
*Temperature dependent on ambient. Ensiling temperature generally is 15 higher than ambient.
Adapted from McCullough.
Page 47
-
8/6/2019 Feasibility by AGROTECH Cholistan
48/75
Livestock Production Farm, Cholistan 2009
5.2.2 General Silage Management Factors
1. Maturity and moisture Recommendations vary with different silage crops (Table 2). Proper
maturity assures adequate fermentable sugars for silage bacteria and maximum nutritional value
for livestock. Maturity also has a tremendous impact on moisture with unwilted forage crops such
as corn silage. Adequate moisture for bacterial fermentation is essential and aids in packing to help
exclude oxygen from the silage.
Table 12. Harvest and moisture recommendations.
Crop MaturitySilo Type
Bunker
Stave SealedLength
of Cut
% moisture
inches
Corn silagemilk line 1/2 2/3
down the kernel6772 6368 5060 3/81/2
Alfalfamid bud 1/10
bloom, wilt to . . .6570 6065 5060 1/43/8
Cereal silagemilk or soft
dough, wilt to . . .6772 6368 5060 1/43/8
Grasseswhen first stems
head out6772 6368 5060 1/43/8
Clover1/4 to 1/2"
bloom, wilt to . . .6772 6368 5060 1/43/8
Page 48
-
8/6/2019 Feasibility by AGROTECH Cholistan
49/75
Livestock Production Farm, Cholistan 2009
Forage sorghum
grain medium to
hard dough or as
leaves begin to
lose color
7075 6570 5060 3/81/2
2. Length of cut The most desirable length of cut is between to inch depending upon the
crop, storage structure and amount of silage in the ration. This will give ideal compaction of the
silage and yet allow for ease of unloading from an upright silo. Setting the chopper to cut any finer
could have a negative impact upon milk fat production and the incidence of displaced abomasums
in dairy cattle due to inadequate scratch factor.
Chopping forages too long makes compaction difficult and air will remain trapped in the silage
resulting in heating and spoilage (Phase I). A recutter screen is not generally recommended unless
the silage is too dry, as it increases the power requirement and will slow harvesting.
3. Filling, packing, sealing The crop should be harvested and the silo filled as rapidly as
possible. Filling delays will result in excessive respiration and increased silage losses. Packing
should begin immediately when storing silage in bunker silos. A wheeled tractor is preferred as a
packing vehicle, as it will supply greater weight per surface unit than a tracked vehicle. The silo
should be sealed with an air tight cover once it is filled to prevent penetration of air and rainfall
into the silage. A good grade of plastic weighted down with discarded tires will generally provide
an adequate seal.
Page 49
-
8/6/2019 Feasibility by AGROTECH Cholistan
50/75
Livestock Production Farm, Cholistan 2009
4. Additives Most silage additives marketed in the United States today are designed to aid
fermentation by providing fermentation bacteria, enzymes or fermentable substrate. Although not a
replacement for good management, they are tools to help ensure that the ensiling process stays
within acceptable boundaries.
Manage the feeding face
Face management requires skill and is a real problem in the United States. Many bunker, trench
and drive over pile silos are too large to manage correctly. The silage face should be maintained as
a smooth surface, perpendicular to the floor and side walls in bunker and trench silos. This
technique will minimize the square footage of surface exposed to air. An average daily removal
rate of 6 to 12 inches from the face should prevent heating and spoiling of exposed silage. Well
packed silage reduces the distance that oxygen can penetrate in an exposed silage face.
Dispose of the spoilage
Even the best managed silage will always have some spoilage. The temptation is to feed spoiled
silage, but it is always a mistake and can destroy the forage mat in a cow's rumen. In tests at
Kansas State University, fistulated cows fed spoiled silage didn't ruminate, reducing chewing and
saliva production. Instead, always throw out the spoilage. You can't afford to use it.
5.2.3 Additions to silage
Various additions to silage have been suggested as methods to improve or alter the fermentation
process. These materials may be referred to as additives, conditioners and preservatives.
Page 50
-
8/6/2019 Feasibility by AGROTECH Cholistan
51/75
Livestock Production Farm, Cholistan 2009
Additive A material that adds nutrients to silage.
Conditioner A material that absorbs excess moisture from chopped forage or which increases
the moisture content of excessively dry forage.
Preservative A material that stimulates the fermentation process or a material that inhibits
fermentation.
The benefits obtained from silage additives, conditioners and preservatives depend upon their
influence on the silage fermentation process. These benefits are usually measured by the reduction
in fermentation losses and/or improvement in silage quality and feeding value.
Silage additives, conditioners and preservatives function in the following ways:
Add dry matter to reduce moisture content
Add water to increase moisture content
Alter the rate, amount and kind of acid production
Acidify the silage
Inhibit bacterial and mold growth
Culture silage (inoculants) to stimulate acid production
Increase nutrient content of the silage
Page 51
-
8/6/2019 Feasibility by AGROTECH Cholistan
52/75
Livestock Production Farm, Cholistan 2009
Add dry matter to reduce moisture content
The objectives of adding dry matter are to reduce seepage losses and provide a more suitable
medium for the fermentation process. The goal of producers should be to harvest corn and
sorghum for silage at the proper growth stage or at physiological maturity when plant moisture
content is ideal for silage. Grasses and legumes should be wilted or dried in the swath to an
average of about 65 percent moisture or less depending on the type of storage used.
If forage crops must be harvested too wet for silage, the following guideline for dry matter
addition may be used.
Cereal grains, coarsely ground and chopped, air dry alfalfa or grass forage will decrease the
moisture content of wet forage approximately 5 percentage units for each 150 to 200 pounds of
material added per ton of wet forage weight.
Add water to increase moisture content
If forage crops to be stored as silage become too dry, packing to exclude air is difficult. Under
such conditions, water must be added to raise the moisture content to the desired level or severe
dry matter losses will result.
The amount of water required to increase forage moisture content 1 percentage unit is
approximately 5 to 6 gallons per ton of ensiled material.
Altering the rate, amount and kind of acid production
Page 52
-
8/6/2019 Feasibility by AGROTECH Cholistan
53/75
Livestock Production Farm, Cholistan 2009
Acid production is essential in the keeping qualities of silage. The rate, amount and kind of acid
produced is influenced by the moisture content of the chopped forage and the readily available
carbohydrate content of the forage.
Corn silage harvested at the proper growth stage or at physiological maturity has a high level of
readily available carbohydrates for lactic acid production. If legumes and grass crops are not
wilted in the field to an average of 65 percent moisture or less depending on the type of storage,
then the addition of a carbohydrate rich feedstuff will enhance fermentation.
Molasses is an excellent carbohydrate or sugar source for legumes and grasses containing 75 to 80
percent moisture. For legumes, about 80 pounds of molasses per ton is required, and for grasses 40
pounds is generally used.
Cereal grains are another source of carbohydrates. These materials, when added at 150 to 200
pounds per ton of wet forage, will also reduce the moisture content of the chopped forage
approximately 5 percentage unit.
Acidifying the silage
Acidifying silage, using a strong acid, has been practiced in Europe on high moisture grass silage.
The purpose was to produce an immediate acid condition rather than waiting for the silage to
produce its own acid. This practice is not recommended in the United States because of its high
cost, the corrosive nature of the acids and low forage palatability.
Inhibit bacteria and mold growth
Page 53
-
8/6/2019 Feasibility by AGROTECH Cholistan
54/75
Livestock Production Farm, Cholistan 2009
While acid formation and the exclusion of oxygen stop bacterial growth, several chemicals used as
silage preservatives also inhibit undesirable bacterial and mold growth. Acids, such as formic and
propionic, enhance the preservation of forage. The major benefit of adding weak acids to silage
appears to be in reducing spoilage in open storage structures. Formic acid is added to hay crop
silages at 0.45 percent of the wet weight or 2.25 percent of the dry matter weight. Propionic acid is
added at the rate of 0.5 to 1.0 percent of the wet forage weight.
"Culturing" silage (inoculants)
A number of commercial products, referred to as fermentation aids and/or inoculants, are available
for adding to silage at the time of ensiling. Since silage is a product resulting from the action of
bacterial enzymes on the material stored, attempts have been made to alter or regulate silage
fermentation through the addition of materials containing bacteria, yeasts and molds. The primary
purpose for adding bacterial inoculants is to increase the number of lactic acid producing bacteria,
thus encouraging more lactic acid production and
a well preserved forage mass.
Research using various bacterial inoculants indicates highly variable results. Products showing
consistent, positive results indicate about a 5 percent increase in dry matter preservation.
Therefore, cost of the inoculants per ton compared to the dollar value of the dry matter saved will
determine the profitability of using a silage inoculants.
The addition of bacterial inoculants to corn silage harvested at the proper growth stage and
moisture content has not shown consistently positive results. Results have been more positive
when inoculants have been added to alfalfa, a low carbohydrate forage, and sorghum silages.
Page 54
-
8/6/2019 Feasibility by AGROTECH Cholistan
55/75
Livestock Production Farm, Cholistan 2009
Increasing the nutrient content of silage
Various materials added to silage will increase nutritive value to the extent that they themselves
contain nutrients. Increasing the nutrient content of silage will greatly affect the final cost of the
product produced.
Materials such as cereal grains, molasses, dry forages, limestone, urea and anhydrous ammonia are
examples of nutrient additions to silage. Commercial products are also available that contain one
or more of the above materials.
Limestone (calcium carbonate) is sometimes added to corn silage to increase the calcium content
and extend the fermentation process. The rate frequently added is 10 to 20 pounds per ton of corn
silage.
Urea and anhydrous ammonia, non protein nitrogen (NPN) sources, are sometimes added to corn
silage to increase the protein content. The various NPN sources listed in Table 3, when applied at
the suggested rate per ton of stored forage, usually will increase forage protein content about 4
percentage units on a dry matter basis.
Page 55
-
8/6/2019 Feasibility by AGROTECH Cholistan
56/75
Livestock Production Farm, Cholistan 2009
Table 13. Non protein nitrogen sources for adding to corn silage and suggested application
rates.
1
NPN Sources Form % Nitrogen Application Rate
(lbs/wet ton)
Urea dry 45 10
Monoammonium phosphate dry 11 20 2
Premixed ammoniawater liquid 2030 1725
Anhydrous ammonia gas 81 67
Ammonia, cold flow gasliquid 81 67
1Commercial products should be applied at a rate to provide 5 pounds of actual nitrogen/ton
of forage.
2 Add 5 lbs. dry urea to provide 5 lbs. of nitrogen.
Page 56
-
8/6/2019 Feasibility by AGROTECH Cholistan
57/75
Livestock Production Farm, Cholistan 2009
Chapter: 6
Parameters of Disease free Zoning
6.1 Disease Control principles and strategies
The guidelines in this section provide a structured framework for the application and recognition
of compartments or zones within countries , with the objective to facilitate trade in animals and
products of animal origin and as a tool for disease management. Establishing and maintaining a
disease free status for an entire country may be difficult, especially in the case of diseases that can
easily cross international boundaries. For many diseases, OIE Member Countries have traditionally
applied the concept of zoning to establish and maintain an animal subpopulation with a different
animal health status within national boundaries.
The proclamation of geographic areas in which specific disease control strategies are to be carried
out is known as zoning. Zoning almost always takes place in the form of concentric circles
around known or suspected foci of infection, with the most intensive disease control activities in
the inner zones. The actual size and shape of the zones may be determined by administrative
Page 57
-
8/6/2019 Feasibility by AGROTECH Cholistan
58/75
Livestock Production Farm, Cholistan 2009
boundaries or geographic barriers or be driven by epidemiological or resource imperatives. The
nature of the disease control zones and the activities carried out in each zone are dependent on the
particular disease control/eradication strategy selected. These are described in the next sections.
Finally, disease free zones or regions of the country may be declared. In these, the emphasis of
surveillance shifts from detecting infection to proving freedom from infection. More emphasis
should thus be given to such techniques as sero surveillance. In the early stages of a disease
eradication campaign, while the extent of the disease is still being assessed, it could be expected
that the disease control zones are comparatively large and the disease free zones comparatively
small. As the disease control campaign progresses, it is to be hoped that the situation would
reverse with the ultimate aim of the whole country being declared disease free. Zoning is now
recognized as an important principle in the definition of the animal health status of countries by
OIE.
A compartment defines as one or more establishments under a common biosecurity
management system containing an animal subpopulation with a distinct health status with respect
to a specific disease or specific diseases for which required surveillance, control and biosecurity
measures have been applied for the purpose of international trade.
The essential difference between zoning and compartmentalization is that the recognition of zones
is based on geographical boundaries whereas the recognition of compartments is based on
management practices and biosecurity. However, spatial considerations and good management
practices play a role in the application of both concepts. Since our project model dealt with the
Page 58
-
8/6/2019 Feasibility by AGROTECH Cholistan
59/75
Livestock Production Farm, Cholistan 2009
establishment of a farm have geographical boundary and full managemental control we will
develop our strategy in the light of OIE guidelines for compartmentalization.
6.2 GENERAL GUIDELINES FOR THE APPLICATION
OF COMPARTMENTALISATION
Compartmentalization is not a new concept for Veterinary Services; in fact, it has been applied for
a long time in many disease control programs that are based on the concept of disease free
herds/flocks. The fundamental requirement for compartmentalization is the implementation of
management and biosecurity measures to create a functional separation of establishments and
allow a clear epidemiological differentiation to be made between subpopulations of differing
health status.
6.2.1 Principles for defining a compartment
A compartment may be established with respect of a specific disease or diseases. A compartment
must be clearly defined, indicating the location of all its components including establishments, as
well as related functional units (such as feed mills, slaughterhouses, rendering plants etc.), their
interrelationships and their contribution to an epidemiological separation between the animals in a
compartment and subpopulations with a different health status. The definition of compartment may
Page 59
-
8/6/2019 Feasibility by AGROTECH Cholistan
60/75
Livestock Production Farm, Cholistan 2009
revolve around disease specific epidemiological factors, animal production systems, biosecurity
practices and similar functional demarcations.
6.2.2 Separation of a compartment from potential sources of infection
The management of a compartment must provide to the Veterinary Administration documented
evidence on the following:
a) Physical or spatial factors that affect the status of biosecurity in a compartment
While a compartment is primarily based on biosecurity measures, a review of geographical factors
is needed to ensure that the functional boundary provides adequate separation of a compartment
from adjacent animal populations with a different health status. The following factors should be
taken into consideration in conjunction with biosecurity measures and, in some instances, may
alter the degree of confidence achieved by general biosecurity and surveillance measures:
i) disease status in adjacent areas and in areas epidemiologically linked to the compartment;
ii) location, disease status and biosecurity of the nearest epidemiological units or other
epidemiologically relevant premises. Consideration should be given to the distance and physical
separation from:
flocks or herds with a different health status in close proximity to the compartment,
slaughterhouses, rendering plants or feed mills,
markets, fairs, agricultural shows, sporting events, zoos, circuses and other points of animal
Page 60
-
8/6/2019 Feasibility by AGROTECH Cholistan
61/75
Livestock Production Farm, Cholistan 2009
concentration.
b) Infrastructural factors
Structural aspects of the establishments within a compartment contribute to the effectiveness of its
biosecurity. Consideration should be given to:
i) fencing or other effective means of physical separation;
ii) facilities for people entry including access control, changing area and showers;
iii) vehicle access including washing and disinfection procedures;
iv) unloading and loading facilities;
v) isolation facilities for introduced animals.
vi) infrastructure to store feed and veterinary products;
vii) disposal of carcasses, manure and waste;
viii) water supply.
c) Biosecurity plan
The integrity of the compartment relies on effective biosecurity. The management of the
compartment should develop, implement and monitor a comprehensive biosecurity plan.
The biosecurity plan should describe in detail:
i) potential pathways for introduction and spread into the compartment of the agents for which the
compartment was defined, including animal movements, rodents, fauna, aerosol, arthropods,
Page 61
-
8/6/2019 Feasibility by AGROTECH Cholistan
62/75
Livestock Production Farm, Cholistan 2009
vehicles, people, biological products, equipment, fomites, feed, waterways, drainage or other
means. Consideration should also be given to the survivability of the agent in the environment;
ii) the critical control points for each pathway;
iii) measures to mitigate exposure for each critical control point;
iv) standard operating procedures including:
implementation, maintenance, monitoring of the measures,
application of corrective actions,
verification of the process,
record keeping;
v) contingency plan in the event of a change in the level of exposure;
vi) reporting procedures to the Veterinary Administration;
vii) the programs for educating and training workers to ensure that all persons involved are
knowledgeable and informed on biosecurity principles and practices.
In any case, sufficient evidence should be submitted to assess the efficacy of the biosecurity plan
in accordance with the level of risk for each identified pathway. The biosecurity risk of all
operations of the compartment should be regularly re assessed. Based on the outcome, concrete
and documented mitigation steps should be taken to reduce the likelihood of introduction of the
disease agent into the compartment.
d) Traceability system
A prerequisite for assessing the integrity of a compartment is the existence of a valid traceability
system. All animals within a compartment should be individually identified and registered in such
Page 62
-
8/6/2019 Feasibility by AGROTECH Cholistan
63/75
Livestock Production Farm, Cholistan 2009
a way that their history can be audited. In cases where individual identification may not be
feasible, such as broilers and day old chicks, the Veterinary Administration should provide
sufficient assurance of traceability. All animal movements into and out of the compartment should
be certified by the Veterinary Administration and recorded at the compartment level.
6.2.3 Documentation of factors critical to the definition of a compartment
Documentation must provide clear evidence that the biosecurity, surveillance, traceability and
management practices defined for a compartment are effectively applied. In addition to animal
movement information, the necessary documentation should include herd or flock production
records, feed sources, laboratory tests, birth and death records, the visitor logbook, morbidity
history, medication and vaccination records, biosecurity plans, training documentation and any
other criteria necessary for the evaluation of disease exclusion.
The historical status of a compartment for the disease(s) for which it was defined should be
documented and demonstrate compliance with the requirements for freedom in the relevant
Terrestrial Code chapter. In addition, a compartment seeking recognition should submit to the
Veterinary Administration a baseline animal health report indicating the presence or absence of
OIE listed diseases. This report should be regularly updated to reflect the current animal health
situation of the compartment.
Vaccination records including the type of vaccine and frequency of administration must be
available to enable interpretation of surveillance data. The time period for which all records should
Page 63
-
8/6/2019 Feasibility by AGROTECH Cholistan
64/75
Livestock Production Farm, Cholistan 2009
be kept may vary according to the species and disease(s) for which the compartment was defined.
All information must be recorded in a transparent manner and be easily accessible so as to be
auditable by the Veterinary Administration.
Surveillance for the agent or disease
a) Internal surveillance
Surveillance should involve the collection and analysis of disease/infection data such that the
Veterinary Administration can certify that the animals in all the establishments comply with the
defined status of that compartment. A surveillance system that is able to ensure early detection in
the event that the agent enters an establishment is essential. Depending on the disease(s) for which
the compartment was defined, different surveillance strategies may be applied to achieve the
desired confidence in disease freedom.
b) External surveillance
The biosecurity measures applied in a compartment must be appropriate to the level of exposure of
the compartment. External surveillance will help identify a significant change in the level of
exposure for the identified pathways for disease introduction into the compartment.
An appropriate combination of active and passive surveillance is necessary to achieve the goals
described above. Targeted surveillance should in particular include epidemiological units in close
proximity to the compartment or those that have a potential epidemiological link with it.
Diagnostic capabilities and procedures
Page 64
-
8/6/2019 Feasibility by AGROTECH Cholistan
65/75
Livestock Production Farm, Cholistan 2009
Officially designated laboratory facilities complying with the OIE s