Cattle farming and production which comes under "Livestock and Agriculture" sector is an integral part of Pakistan's agriculture sector and plays a vital role in national economy. At present, livestock is contributing about 49.1% to the Agricultural sector and 11.4 per cent to the GDP. Its net foreign exchange earnings in 2003-04 were 53 billion, which are about 11 percent of the overall export earnings of the country.
The role of livestock in rural economy may be assessed by the fact that 30 to 35 million of the total rural population is engaged in livestock farming, having 2 to 3 cattle/buffalo and 5 to 6 sheep/goats per family deriving 30 to 40 per cent of income from it. During year 2003-04, the total red meat production was 1.09 and 0.72 million tons for beef and mutton, respectively. The per capita consumption indicates a growing demand of meat in the years to come. Calves for fattening may come from the dairy herd.1
Calf fattening enterprise is an agro-based project. The calves, preferably males, 8-9 months of age are fed on concentrated feed and fodder produced from the agricultural land. Balanced feed is given to calves for a period of 120 days to get higher weight gain. Live weight of these calves is between 80-90 kg. If these calves are fed properly on the formulated fattening feed, their weight can be raised up to 180-200 kg during the fattening period. The daily weight gain of fattened calves varies between 800-1000 grams.

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Species          1999-00     2000-01     2001-02     2002-03     2003-04(E2)
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Cattle             22.0        22.4        22.8        23.3             23.8
Buffalo            22.7        23.3        24.0        24.8             25.5
Sheep              24.1        24.2        24.4        24.6             24.7
Goats              47.4        49.2        50.9        52.8             54.7
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Production of Livestock Products
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Product          1998-99     1999-00     2000-01     2001-02         2002-03
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Milk              24.88       25.57       26.28       27.03            27.81
(million tones)
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Beef                963         986       1,010       1,034            1,060
(000,tones)
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Mutton              633         649         666         683              702
(000,tones)
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Source: Economic Survey of Pakistan, 2003-04
2 E - Estimated
3 The Livestock to 2020 study used base figures for 1993 and these have been recalculated for the year 2000 based on FAO STAT data.
Butchers purchase these animals from animal markets and slaughter them in the slaughterhouses. Butchers act as meat traders and dominate the meat market both in rural and urban areas. The animals sold in these markets are generally diseased and culled animals. Butchers/traders prefer to buy these cheap animals.
Pakistan has ten semi-automated slaughterhouses and a meat processing plant. The only meat processing plant was installed in 1995. It has a capacity of 50,000 Kg. per month, but is operating below its capacity.
It processes both chicken and beef into a variety of processed products such as sausages and smoked meats. The current red meat production system is both traditional and inefficient. Beef mostly comes from the end of career, or emergency slaughtered animals.
A lot of baby buffaloes and calves are slaughtered when these are only 1-2 weeks old. Few calves are raised to 60-80kg weight but on extremely poor and unbalanced diets. Lack of commercial, on-farm livestock feeding could be blamed for existing price ceiling, which is fixed too low to recover the production cost.
Traditional and unhygienic slaughtering techniques are major constraints, which are not acceptable to those who believe in health and hygiene. The livestock resources hold potential for increasing the production of meat. It is estimated that about 6-7 million buffalo/cattle male calves if raised on balanced diet could double the production. Sheep and goats can also be raised for quality meat production.
1. Despite immense potential, breeding has not been done for increasing productivity.
2. Feeding methods are primitive with hardly any feed management. Despite abundant fodder production, there is always a shortage between seasons. This shortage is met by "bhoosa" (wheat straw) which has very low nutritional value. Quality feed concentrates from existing by-products is not being used efficiently.
3. Large-scale livestock farming has not been practised due to the total manual.
4. procedures adopted in feeding and herd management. Reliability of manual labour is severe especially in view of illiteracy and poor farmer education on the subject.
World-wide consumption of meat during 1983 for developed world was 74 kg compared to 14 kg for developing countries and 11 kg for Pakistan. The data for 1993 indicates 76kg, 21 kg and 16kg for the three, respectively.
The challenge for Pakistan now is to achieve 47 kg per capita consumption by 2020. According to statistics there is a gap in demand and supply of beef in the market. This gap is met through meatless days and through poultry meat.
Before making the decision, whether to invest in the livestock farming or not, one should carefully analyse the associated risk factors. A SWOT analysis can help in analysing these factors, which can play important role in making the decision.
1. Backbone and main stay of economy. (provides raw material for food & Leather industry).
2. Major source of food, ie Meat.
3. Source of Farmyard Manure (FYM).
4. Sizeable foreign exchanges earning through exports.
5. Ample human resource employment sector.
6. Stationed, Permanently located secured loaning sector.
7. Contended nature. Low cost living standard.
8. Full family involvement, Devoted & Hardworking Sector.
1. Animals are kept for social rather than commercial reasons.
2. There is no registered beef breed in Pakistan.
3. Low or lack of interaction with farmers. Poor information about each other. Lack of extension services.
4. Lack of education and initiative in farmer, traditional approach due to lack of skills and management.
5. Unorganised sector, unaware of basic farm management practices.
6. Remote area, lack of farm to market approach & transportation.
7. Non-availability of communication services.
8. Lack of farm/ market infra structures & marketing information.
9. Lack of record keeping on farm.
10. No or low application of research work and record keeping.
11. Management of livestock farm is a challenging job.
12. Nutrition is still a problem hampering the livestock productivity in general and meat production in particular
13. Enormous production losses due to endemic diseases every year.
1. Government of Pakistan and Sate Bank of Pakistan's priority sector.
2. Meat and meat products needs are much higher than supply.
3. Ample opportunities are available in the Banking Sector.
4. Commercially viable sector with great credit potential and absorption capacity.
5. Vast range of area of operation, more needs and scope of development.
6. Value added meat products are in demand. If the government lifts the price fixing taboo, then there are bright chances for the flourishing of meat market. Customers are ready to pay prices for the good quality meat.
7. Massive migration of labour to cities can be checked / stopped.
8. Corporate financing will become a niche in lending market.
9. Co-operatives can play a big role for development in livestock sector.
10. Progressive meat retailing firms can promote the sale of processed and quality meat cuts to consumers, which is packed and labelled at a price, including the cost of processing, packaging and quality.
11. Development of slaughtering and processing operations can help in obtaining maximum value.
12. Improving the control of external parasites may enhance the value of hide or skin.
13. More opportunities to invest in this sector due to duty free import of livestock from India.
1. Implementation of WTO will result in open and competitive commodity pricing.
2. Due to fear of default, baker community has reluctance for lending loans.
3. High risks of diseases in livestock. Animals are subject to serious diseases that may lead to mortality.
4. The formal meat market not growing due to the government regulation of price fixing as Municipal Corporation fixes the meat prices in the urban markets.
5. The fixed prices are not likely to be viable for selling the quality meat.
6. Butcher market not ready to pay the premium prices for the fattened animal.
7. Defective and unorganised markets.
8. Imbalance between prices of inputs & outputs.
9. Rising trend of cost of production with higher rate of interest as compared to profit ratio.
10. Lack of media projection, non-recognition of problems and monopoly of multinationals.
11. Lack of community organisations and out dated farm practices.
12. Lack of coordination towards common causes & goals.
13. Lack of awareness about economics, demand & supply in market.
14. Low saving, low holding capacity. Increasing level of poverty.
15. Non-availability of subsidy & tax holidays.
The price of fattened calves varies between Rs 50-60 kg depending upon the supply and demand of meat in the market. The feasibility has taken Rs 55 per kg live body weight as the selling price. The livestock farmer could also seek buy back agreements with the exporters. The following are some of the target clients for a cattle fattening farmer.
1. Local people
2. Butchers
3. Contractors
4. Slaughter house owners
The cost of production per kg of meat should be lower than its sale price so that farmer could feel it economical.
The proposed business can be started before these occasions or any time throughout the year. At the commencement of the proposed business, it is important that the entrepreneur must have good knowledge of the production and have contacts with the livestock breeders and farmers. The ability to work with people/animals and efficient use of resources are important aspects in modern and commercial calf fattening farm.

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i) Capital Investment             1,121,000
ii) Working Capital Requirement     186,615
Total Investment (i + ii)         1,307,615
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Description                      Amount (in Rs)
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1. Fixed Cost
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i) Land & Building                    1,062,000
ii) Machinery & Equipment                59,000
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Total Fixed Cost (i + ii)             1,121,000
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2. Working Capital                      186,615
Total Project Cost (1 + 2)            1,307,615
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Project Financing
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i) Debt                       50%       653,808
ii) Equity                    50%       653,808
Total Project Investment     100%     1,307,615
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Project Economics
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i) IRR (%)                                47.20
ii) NPV @20% (Rs)                     2,758,560
iii) Pay Back Period (year)                2.87
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