Livestock Sacrificial Program Impact Study

Soon Valley Development ProgramSakesar Road, Naushera, District Khushab

LIVESTOCK RESOURCES OF PAKISTAN

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Pakistan being an agro based economy is endowed with diverse livestock genetic resources.

In fact it is postulated that one of the centre’s of animal domestication lay in this part of the

world. Pakistan has a large livestock population, well adapted to the local environmental

conditions.

Livestock are natural factories to convert roughage (grasses, shrubs, etc) into quality-food

i.e. milk and meat. It is an established nutritional fact that animal proteins are superior to

vegetable proteins for the supply of essential amino acids. Livestock also provide raw

material for industries and create markets and capital. For a large population of rural

household in rain-fed agricultural production system, livestock provide security against

crop-failure. For the poor in the villages, it is a form of social security, cashing it at the time

of indeed/accidental need. Livestock is also used in sports and entertainment and is also

considered a symbol of prestige in certain areas of Pakistan.

Livestock is an important sub-sector of agriculture and accounts for 37.5 percent of

agricultural value-addition and about 9.4% of the Pakistan GDP. Its net foreign exchange

earnings were approximately 53 billion rupees in 2000-2001, which is almost 12.3% of all

the export earnings of the country [Government of Pakistan, 2002]. Livestock sector

provides employment to a large number of rural households Livestock are natural factories

to convert roughage (grasses, shrubs, etc) into quality-food i.e. milk and meat. It is an

established nutritional fact that animal proteins are superior to vegetable proteins for the

supply of essential amino acids. Livestock also provide raw material for industries and create

markets and capital. For a large population of rural household in rain-fed agricultural

production system, livestock provide security against crop-failure. For the poor in the

villages, it is a form of social security, cashing it at the time of need. Livestock are also used

in sports and entertainment and are also considered a symbol of prestige in certain areas of

Pakistan. Livestock is an important sub-sector of agriculture and accounts for 37.5 percent

of agricultural value-addition and about 9.4% of the Pakistan GDP. Its net foreign exchange

earnings were approximately 53 billion rupees in 2000-2001, which is almost 12.3% of all

the export earnings of the country [Government of Pakistan, 2002]. Livestock sector

provides employment to a large number of rural households.

SVDP – Livestock Sector2

SVDP a non Governmental/ not for profit

organization working in rural area with the

prime objective to reduce poverty through

optimum use of available natural resources

in a significant manner. In villages of

Pakistan, agro based economy is the major

source of income for the living population.

They have vast area available with them for

grazing of animals that is otherwise non

productive. That’s why SVDP micro finance

program has major share of agriculture

related products and services. In our product

mix 70% of our portion relates to agriculture and live stock sector with a good mix of

monthly and seasonal repayment schedules depending upon the cash flows of the clients.

The other 30% relates to business, solar, handicrafts and miscellaneous products.

The year was 2010 when we received the fund from our donor PPAF in a project named

MIOP. The project practically started in Jan 2011 and it was than when for the first time a

specialized product for the growth of sacrificial animals came into progress at SVDP.

Although SVDP was extending loan for live stock and sacrificial animals for long time but the

value addition of insurance and medical treatment of animals refined the product and made

it popular amongst the communities. The product was named as live stock loan for sacrificial

animals with lump sum repayment at the time of Eid Ul Azha and Islamic religious occasion.

The experience went very successful and compels the management for replication. It

become regular part of SVDP Micro credit program from Phase V onward and is very

popular amongst our communities due to its attractive and flexible value added features.

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Livestock Sacrificial Product and Its value added Features

As discussed earlier live stock sacrificial product is very unique in its flexible and differential

features. These are as under;

1. Lump sum repayment at the time of Eid Ul Azha after animal sale with a grace

period of 01 month after the

Eid Occasion.

2. Free vet services from SVDP

are attached with this loan

product. In case of emergency

call from the client, it is

mandatory for SVDP vet to

reach the location within 01

hour time. This builds

confidence and trust of

farmer/client in the product

and organization.

3. Built in free vaccination from SVDP

for every animal of the client regardless of the fact that it is SVDP financed or not.

4. Built in free medication in case of emergency/sickness for all the SVDP financed

animals of the farmer.

5. Built in value added insurance on very nominal rates (almost lower than

conventional rates). Through the support and guidance of PPAF, this is a very unique

product implemented and continued by SVDP on pilot basis in Pakistan. This curtails

the risk of loss in case of animal mortality and accommodates the farmer in true

sense.

6. Family based lending approach with sizeable amount of loan makes it more

attractive and beneficial.

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Sacrificial Product Facts & Figures

As discussed earlier Livestock is a major segment in the product mix of SVDP. It constitutes

around 40 %(-) of our total OLP (-) (outstanding loan portfolio). In live stock segment, live

stock sacrificial product constitutes around 33 %(-) of total OLP hence making it biggest

product at SVDP. It is also unique in terms of big loan size extended to each family at SVDP.

Branch Wise Sacrificial Disbursement

Branch and gender wise disbursements are as under:-

Sr. # Phase Branch

No. of ClientNo. of

HouseholdAmount Disburse

(in millions)Male Female Total

1. MIOP 2010

(1 year)

Naushera 200 200 400 160800 12.00

1.

V2011-12 (2 years)

Naushera 753 575 1328 531 45.32

2. Katha 58 41 99 40 2.72

3. Noorpur Thal 77 53 130 52 2.68

1.

VI2013

(1 year)

Naushera 400 347 747 298 25.27

2. Katha 30 21 51 20 1.36

3. Noorpur Thal 111 75 186 74 4.08

Total 0 0 1629 1312 2941

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Why to do Impact study

Following are the reasons for that study;

1. Live stock Sacrificial being the largest product at SVDP requires in depth and in detail

revision. Is it beneficial for our communities/clients or not. To what extent it is

beneficial and in which manner it

is befitting the life of our

communities.

2. It allows us to further enhance

and replicate this model of study.

3. It provides rationale to us that

why it is our major lending

product.

4. It also provides us the rationale

that why family loan size in this

product is big than the other loan

products.

5. It also provides us the chance to understand this product/our shortcomings. The

grievances and issues of the community and their direct understanding to the senior

management of SVDP. It provides us chance for the betterment of this product.

6. It will serve as a model study for future implications of this product and enhances

the chance of betterment in our other products and services.

Abstract / Variables to be Measure

In every research based study, one should define the measurable/variables to draw results

and conclusions. In this study we try to cover following variables related to the economic

and social benefits to our clients;

1. Since after the disbursement of loan increase in number of retained animals if any

2. Is this the primary or is secondary source of income for the family

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3. How much dependent the family is

on this loan/source of income now

4. Net profit if any earned by the

family from this lending of SVDP

5. Betterment in skill development

like animal purchasing, selling,

breed identification, raising,

medication and vaccination etc.

Presently SVDP is working with 03

branches and loan of this product has been

extended in every branch. However keeping in view limited resources, scarcity of time and

for developing better understandings in repeat client cases, we have selected sample from

the clients of Naushera branch only. All the selected clients are the repeat clients for more

than one time in this particular product and have vast experience of livestock and animal

grazing. All these families shall get loan amount of Rs. 0.100M and above in our next loan

disbursement.

Sample Size for Impact Study

The total population and sample size of impact study is as under:-

Total population amount (total

loans disbursed at Naushera branch

2013-14) Rs.25.270M

Total population clients 827 (283

families) at Naushera branch

Sample selected clients 220 (75

families) at Naushera branch (27% of whole)

Sample selected amount Rs. 6.970M (28% of whole)

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As already discussed that SVDP is using family based approach in this product for lending so

75 family heads are approached for this research study.

Mode of Research

Mr. Tahir Bashir, SVDP’s monitoring and evaluation officer has been deputed and trained for

the task. In person detailed interview on individual basis of at least half an hour has been

conducted with each family head on the subject matter. Before starting the interview he has

been informed about what we are doing, why we are doing and why he/his family are

selected for the purpose. The interviewer tried his level best to first get the trust and

confidence of the interviewee and then started asking questions. All the information has

been extracted from him as per already designed format/questionnaire. He has also been

provided an opportunity to communicate and share his personnel experiences and

grievances if any with us. In last the interviewer completes the questionnaire by getting the

contact details of the family head and his signatures there on. Following are the questions

asked in the interview/survey form;

Loan cycle detail

Before the loan no. of animals

After the loan no. of animals

Is it now your primary source of income or secondary?

Before this loan from SVDP, was this your primary source of income or secondary?

Now how much your family is depending on this income of live stock sacrificial loan?

Before the loan how much your family was dependable on this income

How much net profit earned

After using this product and with the support from SVDP, how much your skills has

been developed/improved in animal purchasing, selling, breed identification, raising,

medication and vaccination etc? skill levels are i) worse ii) not good iii) good iv)

better v) best

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Findings and results

Loan Cycle

No. of Familie

s

Amount Disbursed

Before loan No.

of Animals

After Loan

No. of Animals

Primary or Secondary Source of Income

Now how much

dependent on this Loan

Before the loan How

much were depended

Net Profit Earned

Skill Developed

5 times utilized 1

380,000 2 1 Primary 70% 50%

170,000 Better

4 Times Utilized 6

22,20,000 24 31 Primary 70% 50%

770,000 Better

3rd Time

Utilized15

39,10,000 116 47 Primary 80% 60%

2,040,000 Better

2 Times Utilized 30

58,50,000 124 143 Primary 80% 50%

2,595,000 good

1 Time Utilized 23

18,40,000 79 84 Primary 80% 50%

789,000 good

TOTAL 75 1,42,00,000 345 306 Primary 76% 52% 63,64,000 Better

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Conclusion and analysis

From the above mentioned table/results following are the conclusions;

1. If minutely observe, the total amount of Rs. 14.200M has been disbursed in 157 families hence making an average disbursement of Rs. 90,445/- per family.

2. It has been observed that the retention of animals after this loan disbursement is on negative side. It is reduced/decreased by 11%.

3. The dependency of client on this source of income is positive and has been increased by 24% (from 76% to 52%).

4. Good net profit can be seen from the figures. It is pertinent to mention that before asking this question to the client/family head, he was well briefed about the explanation of this net profit term. It is the amount of earnings which are net off and are excluded from loan service charges, insurance fee, processing fee and animal grazing cost etc. This net profit amount constitutes around 55% of the total disbursed amount. So if we distribute this result on all our disbursements in this product till date than from the total disbursements of Rs. 93.430M till now, our communities has earned profit amount of Rs. 51.387M.

5. If we distribute this above mentioned profit amount (51.387M) to each of our client (2941 total clients) than Rs. 17472 becomes the share of each client each year. In this respect each family share can be assumed as Rs. 43734 each year.

6. The skill level remained better on average basis and there is need for more training and learning.

Limitations of the Study

1. No research on breed management has been done due to client’s limited knowledge on the subject.

2. No research on per day value addition in goat, sheep and large animal has been made.

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3. No research on yield and productivity of animals has been made. i.e which type of animal can more favorable and profitable in such type of loan utilization. Is goat more favorable than sheep etc?

4. No research on animal feed for gaining weight has been made.5. No research on best time for animal sale/purchase and best place for sale/purchase

has been done.

Most common shared grievances from field

1. Loan amount Should be increased2. Service charges should be reduced3. Minimize insurance fee

References

1. Economic Survey of Pakistan 2001-022. Mr. Muhammad Ramzan, Program Manager Portfolio management and External

coordination SVDP 3. List of Interviewees / Clients

List of interviewees / Clients

Sr. # Name Father Name Village Contact #

1 Shoukat Ali Shurkhru Khan Bhanka 0332-59174452 Arif Majeed Shurkhur Khan Bhanka 0336-69567103 Falak Sher Khuda Dost Bhanka 0331-60118794 Nazar Iqbal M. Anwer Bhanka 0332-75251655 Qaiser Mehmood M. Nawaz Bhanka 0332-16304986 Tasawar Hayat Umer Hayat Bhanka 0332-54677837 M. Jehangir Mian Muhammad Bhanka 0332-51962258 Amjad Nawaz Gul Nawaz Bhanka NA9 M. Sohail Sumandar Khan Bhanka NA10 M. Ali Shah Muhammad Bhanka NA11 Tahir Mehmood Dost M. Khan Bhanka NA12 Amanat Ali Sher Muhammad Bhanka 0332-773072313 Sultan Sikandar Hafiz M. Amir Uchala 0331-877365214 Saif Ali Mehar Ali Uchala 0302-815763615 Zafar Alam Umer Hayat Uchala NA16 M. Nawaz M. Razzaq Uchala 0306-546676917 Naeem Haider Amir Abdullah Uchala 0311-787775218 M. Tariq Shah Muhammad Uchala 0306-6348096

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19 Qazi Shoukat Iqbal Abdul Ghafoor Uchala 0341-324695820 M. Khalid Saleh Muhammad Jaleywali 0454-61085521 Qamar Sultan Ghulam Muhammad Dhadhar 0302-500960122 M. Siddique Allah Ditta Dhadhar 0306-529245723 M. Akhtar M. Din Dhadhar 0302-580772724 Shoukat Ali Sardar Ali Dhadhar 0302-813217825 Bashir Ahmed Manzoor Ahmad Dhadhar 0306-531389026 M. Lateef Fazal Karim Dhadhar 0308-639829227 Manzoor Elahi Karam Elahi Dhadhar 0303-564985628 Zulfiqar Ali Ghulam Muhammad Dhadhar 0301-392523729 Sadiq Ali Sardar Ali Dhadhar 0302-517511630 M. Aslam M. Din Dhadhar 0303-791019831 Noor Muhammad Atta Muhammad Dhadhar 0302-677830432 M. Yousaf Haji M. Hayat Dhadhar 0301-392352833 Abdul Aziz Ghulam Habib Dhadhar 0306-466943534 M. Hafeez Allao Din Dhadhar 0308-580163635 Tariq Mehmood M. Siddique Dhadhar 0301-527679836 Ehsan ul Haq Sarwar Khan Dhadhar 0306-677362137 M. Arshad Noor Muhammad Dhadhar 0308-722586738 Karam Elahi Umeed Ali Chitta 0315-701268339 Noor Muhammad Ali Muhammad Chitta NA40 M. Abid Sher Muhammad Chitta NA41 Hasim Ali M. Ali Chitta 0304-930159542 M. Ali Umeed Ali Chitta 0305-287435243 M. Fayyaz Sher Muhammad Chitta NA44 M. Hafeez M. Haneef Chitta 0305-473935945 Zahoor Ahmed M. Din Chitta 0308-241690246 M. Usman M. Khan Chitta 0305-475223447 M. Naveed M. Shareef Chitta 0302-494867948 M. Tasleem Insaf Khan Shakarkot 0334-656948449 M. Masood Fateh Muhammad Shakarkot 0300-817160350 Abid Hussain Zohar Khan Shakarkot 0300-569143751 M. Aziz Sher Muahmmad Mardwal 0308-295430752 M. Khan M. Nawaz Mardwal 0302-353081753 Alam Khan Shah Muhammad Mardwal 0306-581600654 Abaid ur Rehman Sherbaz Mardwal 0302-677196155 Sultan Mehmood Sher Muhammad Mardwal 0307-514474956 M. Amir Khan Muhammad Mardwal 0301-331275157 M. Ajmal Munsib Khan Mardwal 0305-580300258 Amir Abbas Abbas Khan Mardwal 0300-416361459 Yousaf Ali Sultan Ali Ahmedabad 0343-771805560 M. Afraz M. Riaz Ahmedabad 0307-843589561 Ghulam Abbas Allah Bux Ahmedabad 0302-511237062 M. Irfan Alam Sher Ahmedabad 0307-568600863 Saeed Ahmed Iftikhar Ahmed Ahmedabad 0313-769870164 M. Younas Fateh Muhammad Ahmedabad 0307-407529065 Mian Muhammad Shah Muhammad Ahmedabad 0314-341342166 Ghulam Abbas Allah Bux Ahmedabad 0302-511237067 Abdur Rehman Allah Bux Ahmedabad 0306-6772454

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68 Nazim Hussain M. Bashir Ahmedabad 0302-953104669 M. Nazir Gul Muhammad Naushera 0333-605874370 Hassan Raza Gul Muhammad Naushera 0331-765991471 Malik M. Azhar Malik M. Aslam Naushera 0333-499349172 Noor Ghulam Muhammad Surakki 0336-699056373 Liquat Nawaz Gul Muhammad Surakki 0332-773484574 Mazhar Iqbal Akber Khan Surakki 0332-772570175 Munsib Khan Noor Khan Surakki 0333-5400590

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