Livestock & Dairy Development Board (LDDB) – A Profile

1. Livestock & Dairy Development Board (LDDB) – A Profile Akram Khalid Company Secretary

2. LDDB: The Genesis • Part of Livestock Development Policy presented to the Prime Minister (April, 2005) • Part of Agribusiness Development and Diversification Project (July 2005) • Not-for-profit company under Section 42 of Companies Ordinance 1984 established 27-10-2005 • Prime Minister approved summary of nominations of BOD (Nov 2005) • 15 member Board of Directors- (8 private sector - 7 public sector)

3. LDDB: The Objectives • Plan, promote, facilitate and coordinate accelerated development of and investment in livestock and dairy sectors • Promote and facilitate marketing of livestock & livestock products • Encourage private sector investment in livestock and dairy • Undertake capacity building of all stakeholders • Facilitate, promote and support the development and dissemination of improved technologies

4. LDDB: Proposed Activities • Player in implementation of livestock development policies (livestock development programs) • Advise government on legal and policy framework • International cooperation • Identification and dissemination of new technologies • Facilitate and promote livestock marketing • Programs for producer organizations • Stakeholders capacity building • Livestock market information system • Advice on re-orientation of public sector institutions

5. LDDB – Immediate Business Plan • Making Board operational entity • Ensuring sustained financial resource • Supervision of livestock sector study under Agribusiness development and diversification project • Initiation of projects • Livestock Production and Development for Meat Production • Milk Collection/Processing and Dairy Production and Development Program

6. Supervision of livestock sector study • Identify livestock and dairy production areas, determine if they show comparative advantage and identify the major problems and constraints in the specified areas; • Develop a database for different animal species and breeds with specific reference to production and processing potential; • Identify the requirements and parameters for restructuring and reforming post-production technologies and operations related to livestock and dairy products, including milk, mutton, beef and by-product business in the private sector; • Review previous work undertaken in the dairy and livestock sub-sectors and assess lessons learned and ways to benefit form such work; • Recommend measures that can address constraints identified regarding breeds used, marketing, export compliance and their harmonization with the relevant WTO agreements; and, • Develop proposals concerning livestock and dairy agribusiness components, and appropriate interventions for a possible follow-up project or second phase of the Agribusiness Development Project. • Prepare a plan for the required restructuring of the government livestock institutions so that these become more responsive to the needs of the stakeholders.

7. Livestock Production and Development for Meat Production Project • Executed by Livestock & Dairy Development Board • The project activities may jointly be undertaken with public and private sector institutions • Facilitation and support to the farmers • Demand driven

8. Project Components • Feedlot Fattening Farms • Lead/Nucleus Beef Farms (150) • Small Beef Farms (600) • Feeder Beef Farms (300) • Veal Production Farms (50) • Lead Mutton Farms (250) • Small Mutton Farms (600) • Feeder Mutton Farms (400) • Slaughter houses (8) and butcheries (20) in Private Sector • Capacity Building of all stakeholders • Awareness Program • Legislation

9. Project Implementation • LDDB – overall guidance, supervision and execution • Consultancies for feasibilities & SOPs of small medium and large fattening farms for beef & mutton • Advertisement in the newspaper • Technical services for setting up farms • Contract with interested farmers • Project provides for free technical and partial financial assistance (max. 15 %) • Capacity building of farmers

10. Project cost • Duration – 5 years (2006-11) • Establishment cost – 192.960 M • Farmers support – 1024.343 M • Slaughter house/butcheries – 61.34 M • Training – 25.84 M • Other operational costs – 216.364 • Total Cost – 1520.847 M

11. Milk Collection/Processing and Dairy Production and Development Program • Executed by Livestock & Dairy Development Board • The project activities may jointly be undertaken with public and private sector institutions • Facilitation and support to the farmers • Demand driven (cluster approach)

12. Project Components • Milk Collection and Marketing from Small and Landless Farmers • Support to Market-oriented Rural Dairy Farmers • Production of Quality Breeding Animals • Production of Progeny-tested Bulls

13. Milk Collection and Marketing • Milk cooling units (300) • Guaranteed purchase of milk from registered farmers • Support for collection, cooling and transportation of milk • Facilitate sale of milk to dairy plants and others • Veterinary cover and breeding facility • Improved animal nutrition • Capacity building • Farmers’ organization

14. Market-oriented Rural Farmers • Support rearing of quality heifers and bull calves • Veterinary and breeding services • Training in various aspects of dairy farming • Support for silage/hay making and fodder production • Technology support

15. Production of quality breeding animals • Support for rearing of heifers by small and market oriented dairy farmers • Support for rearing of bull calves • Support for silage/hay making and fodder production • Facilitate sale of quality heifers and future breeding bulls • Training in various aspects of heifer and bull calf management

16. Production of Progeny Tested Bulls • Technical and financial support for expansion of progeny testing program for Nili-Ravi buffalo and Sahiwal cattle • Initiation of progeny testing program for Kundi buffalo and Red Sindhi cattle • Public-private partnership in progeny testing program • Link production of progeny tested bulls to the breeding program with farmers • Support to semen production centres • Strengthening of selected AI centres

17. Project Implementation • LDDB – overall guidance, supervision and execution • Component I • 500 villages (identification in collaboration with PMSIL, PDDC, provinces) • 300 milk cooling units farmers’ organization • Milk collection centre to act as focus for veterinary cover, breeding (AI) and feed/fodder seed availability • VLW and farmers training • Component II & III • Newspaper advertisement for farmers selection • Cluster approach • Technology support & capacity building • Facilitation of sale of heifers & bull calves • Component IV • Strengthening of on going activity in Punjab • Initiate progeny testing program

18. Project cost • Duration – 5 years (2006-2011) • Establishment cost – 244.560 M • Equipment cost – 260.100 M • Field activities – 855.600 M • Other operational cost – 228.090 M • Total Cost – 1588.350 M

19. Thank You

20. Livestock Development Policy Vision Promoting livestock to provide safe and quality products at competitive prices, covering entire value chain with focus on market and poverty reduction Policy Private sector led development with public sector providing enabling environment

21. Strategy for development • Private sector led • Increase in productivity • Moving from subsistence farming to market-oriented and commercial farming • Covering entire value chain

22. Features of Livestock Policy – 1 • Legal Framework • De-regulation of milk and meat prices • Rationalization of taxes at local govt level • Sale of meat animals on live weight basis • Quality control of livestock products • Regulation of urban ‘gawala’ colonies • Level playing field for local dairy industry

23. Features of Livestock Policy – 2 • Livestock and Dairy Development Board • Professionally run corporate body (free from unnecessary controls), will also act as holding company • Facilitate and promote production, processing and marketing of milk and meat covering entire value chain • Capacity building of the stakeholders • Provision of technical and managerial services • Sustained financial base

24. Features of Livestock Policy – 3 • Credit availability - Collateral issue • Strengthening of policy and regulatory capacity at MINFAL headed by Animal Resource Development Commissioner • Capacity Building for all stakeholders (LDDB, Jan 2006)

25. Features of Livestock Policy – 4 • Re-orienting Public Sector Institutions • Government farms – superior male production • Phased privatization of slaughter houses • Self-sustaining/private-public partnership for vaccine production centres • Improvement in research & development infrastructure as well as funding levels (Estab 50: Operational 50)

26. Public Sector Programs – 1 • Vaccine production facility and epidemiology of Foot and Mouth disease • Improvement in quality of veterinary vaccines • Market information system for livestock • Infrastructure improvement in livestock markets • Genetic potential of cattle and buffalo breeds for beef and sheep and goat breeds for mutton production • Range and forage improvement programs

27. Public Sector Programs – 2 • Surveillance and monitoring system for animal diseases • Expansion and modernization of diagnostic laboratories with quality control of milk facilities • Fodder research and development programs in livestock production institutions • Biotechnological interventions – Embryo transfer • Drought mitigation strategies

28. Promoting Livestock as a Source of Supplementary Income – 1 • Support for: • Establishment of a network of milk collection and chilling centres and refrigerated transport • Cooperatives for meat animals marketing • Seed availability of high yielding multi-cut fodder varieties • Popularization of balanced feed and multi-nutrient molasses blocks for animals • Farmers’ training particularly women in improved animal management • Livestock help-line

29. Promoting Livestock as a Source of Supplementary Income – 2 • Expanding the progeny testing program for Nili-Ravi buffalo and Sahiwal cattle and initiation of genetic improvement of Kundi buffaloes and Red Sindhi cattle • Expansion of genetic up-gradation of non-descript cattle through crossbreeding • Expansion of artificial insemination network • Bull calf raising centres and bulls for natural breeding • Production of quality rams/bucks of indigenous sheep and goat breeds

30. SME in Livestock – 1 Support for: • Model dairy farms at district level • Livestock business advisory service • Salvage farming for dry animals of dairy colonies • Support for private sector semen production units • Wool production and processing • Improved skins/hides processing

31. SME in Livestock – 2 Support for: • Feed-lot fattening for beef and mutton production • Establishment of model butcheries in each city (grading system and commercial cuts) • Encouraging building of slaughter houses in private sector • Establishment of disease-free herds • Establishment of slaughter house by-products plants

32. Livestock Business Promotion Incentives for: • Setting up large scale breeding farms • Integrated meat production and processing • Dairy zones in each districts (300 acres each) • Meat export processing zones

33. Programs for absolute poor • Passing-on the gift program for absolute poor • Distribution of livestock to destitute from Zakat and Bait-ul-Mal • Restocking of sheep and goat herds lost during drought in Baluchistan • Restocking of animals in quake-hit areas

34. LDDB: Provisions in Agri-business Project • Staff: • Livestock & Dairy Development Advisor (1) • Administrative & Support No. Rum/mo • Personal Assistant (2) 10,000 • Accounts/Admin Assistant (1) 10,000 • Computer operators (3) 15,000 • Receptionist (1) 10,000 • Driver (1) 7,000 • Messengers (2) 7,000 • Security Guards (2) 5,000 • Janitor (1) 3,000

35. LDDB: Provisions in Agri-business Project • Office: • Rental Rs. 1.000 million/year • Refurbishment Rs. 2.000 million • Furniture & Fixture Rs. 0.190 million • Equipment: • Computers (2 No) • Multimedia Projector (1 No) • Photocopier (1 No) • Fax (1 No) • Vehicles: • Saloon Car Rs. 1.200 million • Motor cycle Rs. 80,000

36. LDDB: Provisions in Agri-business Project • Operational Expenditure (Million Rs for 5 years): • Travel 3.450 • Office supplies 0.900 • Communications 1.200 • Utilities 1.080 • Vehicle operating cost 0.925 • Repairs & maintenance 0.050 • Contingency 10.245

37. Livestock Business Development Support under Agribusiness Development Project • Agriculture Support Services Provision Through ASF • Business Development Services • Matching funds for enterprises, farmers, research & extension service providers (50:50) • Grant to farmers organizations for agribusiness or marketing enterprises (100%) • Private sector information service • Agribusiness Finance Development • Agribusiness capacity building • Dairy & livestock sector particularly higher level knowledge & skill development • Capacity building including farmers field schools • Livestock agribusiness study

38. INVESTMENT OPPORTUNITIES IN LIVESTOCK

39. LIVESTOCK IN NATIONAL ECONOMY • Agriculture in Pak GDP 23.1 % • Livestock in Pak GDP 10.8 % • Share in agri GDP 46.8 % • Livestock in export 8.5 % • Provides raw material for industry • Creates market and capital • Social security for rural poor • Security against crop failure in barani areas • Dependent population> 6.5 m families Economic Survey (2004-05)

40. LIVESTOCK PRODUCTION • Milk 29.472 M ton • Beef 1.115 M ton • Mutton 0.740 M ton • Poultry meat 0.416 M ton • Eggs 8.529 billion • Wool 40.2 T ton • Hair 21.5 T ton • Skins and hides 51.2 millions Economic Survey (2004-05)

41. LIVESTOCK POPULATION (2004-05) (Million Heads) PROVINCE CATTLE BUFFALO SHEEP GOAT CAMEL PAKISTAN 24.2 26.3 24.9 56.7 0.8 Per cent distribution NWFP 21.5 6.3 13.3 17.5 8.3 PUNJAB 43.2 60.8 24.3 37.1 18.6 SINDH 28.9 31.8 18.2 23.8 29.7 BALOCH- 6.4 1.1 44.2 21.6 43.4 ISTAN Economic Survey (2004-05)

42. Livestock population trends 2004 data is estimated

43. ) LARGE RUMINANTS SMALL RUMINANTS Herd Size Percent share in population Herd Size Percent share in population Buffalo Cattle Sheep Goat 1-2 18.1 16.3 1-5 6.5 21.4 3-4 24.5 (42.6) 22.0 (38.3) 6-15 13.2 (19.7) 28.5 (49.9) 5-6 17.4 (60.0) 17.2 (55.5) 16-30 15.7 (35.5) 16.3 (66.2) 7-10 19.6 (79.6) 20.0 (75.5) 31-50 12.8 (48.2) 9.9 (76.1) 11-15 10.2 (89.8) 9.9 (85.4) 51-75 8.5 (56.7) 5.7 (81.8) 16-20 4.2 (94.0) 4.8 (90.2) 76-100 6.8 (63.5) 4.2 (86.0) 21-30 2.9 (96.9) 4.3 (94.5) 101-150 9.1 (72.6) 4.9 (90.9) 31-50 1.6 (98.5) 2.9 (97.4) 151-200 7.5 (80.1) 3.1 (94.0) > 50 1.5 (100.0) 2.5 (99.9) 201-350 12.2 (92.3) 4.3 (98.3) > 350 7.9 (100.2) 1.5 (99.8) Livestock by Herd Size in Pakistan (Census 1996) Values in parentheses indicate cumulative value indicating %age of total animals up to that herd size.

44. Why investing in livestock sector ? • Demand for livestock products is increasing • Technologies for increasing production and processing are available • Processed food is in demand • Cost of production and profitability issue • Export market in Gulf and South-East Asia • International subsidies are lowering • Niche markets

45. Supply and Demand Supply and Demand *Projected

46. Government Initiatives • Improving legal framework • Access to bank credit • Govt guaranteed private sector-led two companies for promotion and facilitation • Re-orienting public sector institutions • Livestock development policy • Increasing public-sector investment to facilitate and promote the sector development

47. Investment opportunities – 1 • Setting up large scale breeding farms • Farms for crossbred cattle • Salvage farming for dry animals of dairy colonies • Semen production units • Artificial insemination service • Establishment of milk collection and chilling centres and refrigerated transport • Specialized dairy farms • Vaccine production units especially for Foot and Mouth disease • Seed production and sale of high yielding multi-cut fodder varieties • Cattle feed mills • Diversification of dairy products

48. Investment opportunities – 2 • Feed-lot fattening for beef and mutton production • Establishment of model butcheries in each city (grading system and commercial cuts) • Breeding rams/bucks production farms • Slaughter houses in private sector • Establishment of slaughter house by-products plants • Integrated poultry production units • High tech broiler and layer production • Poultry processing (chilled and frozen, cuts) • Value added units (processed products) • Veterinary pharmaceuticals

49. Thank You

50. Livestock Production Constraints • Unavailability of superior germplasm • Inadequate feed resources (short by 30%) • Epidemics of infectious diseases • Livestock herd structure • Un-organized farmers and lack of lobbying • Poor marketing infrastructure • Low investment by government (<1% of PSDP) • Poor institutional infrastructure • Inadequate regulatory framework • Unavailability of credit to the livestock farmers (11% of agricultural credit)