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Report on

ENGRO DAIRY FARM NARA

Group # 02, Group Leader: SYED WASEEMULLAH SHAH Group Members: ZAKIR HUSSAIN ABBASI

MANZOOR AHMED MARFANITAJ MUHAMMAD JAMALIFAHAD ARIF RAJPUT

RAFIQUE AHMED MAHAR

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ACKNOWLEDGEMENT

Respected Mr. Bukhari,

Farm Manager (Engro Dairy Farm Nara)

Taluka Salehpat District Sukkur.

Thank you for taking the time to meet with our group and other representatives of the Sukkur Ibians on last week visit at Engro Dairy Fram Nara. We enjoyed meeting with you and your team members. I’m glad we had the opportunity to discuss our concerns and whole process of your Dairy Farm.

We especially appreciate your commitment to serve the community by investing in educational and health sectors.

Our whole group would like to appreciate your support and co-operation greatly. On behalf of all our members, I want to thank you for taking the time out of your busy schedule to have us a visit at your Dairy Farm.

Sincerely,

Manzoor Ahmed Marfani

EDP-II, Sukkur IBA.

Date: December 30, 2013.

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Table of ContentsGlobal Milk Production.............................................................................................................................5

Higher Milk Yield........................................................................................................................................5

TRADITIONAL MILKING and MODERN MILKING TECHNOLOGY...................................................6

ENGRO DAIRY FARM NARA.................................................................................................................7

ORGANIZATIONAL STRUCTURE AT ENGRO DAIRY FARM NARA.................................................8

TECHNOLOGY USED AT ENGRO DAIRY FARM NARA......................................................................9

BACKWARD INTEGRATION......................................................................................................................9

COMPLETE PROCESS OF ENGRO DAIRY FARM NARA....................................................................9

The DuPont Approach............................................................................................................................11

EMPLOYEES AT ENGRO DAIRY FARM NARA....................................................................................12

Breeds of Dairy Cows.............................................................................................................................12

AVERAGE MILK PRODUCTION per ANIMAL per DAY AT ENGRO DAIRY FARM NARA.........13

SAFETY MEASURES IMPLEMENTED AT ENGRO DAIRY FARM NARA........................................13

ENGRO DAIRY FARM NARA INVESTMENT........................................................................................15

OTHER FACILITIES AND OBSERVATIONS AT ENGRO DAIRY FARM NARA.............................15

OUR GROUP OBSERVATION ABOUT DAIRY FARM NARA............................................................15

SUGGESTIONS FOR ENGRO DAIRY FARM NARA............................................................................15

References:...............................................................................................................................................16

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Being major player in national economy livestock sector has been selected as an economy engine for poverty alleviation from Pakistan. According to economic survey of Pakistan 2012-13, its contribution to agriculture value added is approximately 55.4 % and to national GDP is 11.9 %. Livestock is raised by more than 8.5 million small and landless families in the rural areas and 35-40 million rural populations are dependent on this.

In Pakistan livestock includes cattle, buffalo, sheep, goat, camels, horses, asses and mules. Milk, meat, wool, hair, bones, fat, blood eggs, hides and skins are the main livestock products among which milk and meat are taken as major products. Besides this, these animals are used for draught purposes.  

In 1980s, dairy sector in Pakistan moved towards commercial side and development of rural commercial dairy farms started. A typical rural dairy farm running on commercial basis consisted of about 30 animals of which 70% were females, including some cows. Approximately 40% of these adult females were in milk during most of the year. Fodder crops provided 50% and straws about 35% of the feed requirements and concentrates made the rest of it. More than 90% of the milk produced at the farm was sold. 

With growing demand for milk in urban areas rural commercial dairy farming moved toward peri-urban areas. In peri-urban areas there are large and small dairy herds consisting of 20-50 animals with nearly 90% of adult females in production. Male calves are disposed off within first two weeks of birth. These animals are fed chopped green fodder and wheat straw and concentrate mixture with target to sell almost total milk produced.   

Due to enhanced rate of urbanization over the last 2 to 3 decades, large peri-urban commercial dairy farming is going towards urban commercial farming. Targets of these farms are to get maximum milk production with economical and quality feeding and good management. Animals on these farms are fed good quality green fodder or silage along with concentrate mixture. Dairy animals maintained at these farms are considered elite animals, hence their yields per lactation are considerably higher than those of animals maintained under other production systems. Milk produced on these farms is either sold out in processed/fresh form through outlets or departmental stores or supplied to dairy companies.

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Technological advances have changed dairy farming from the old-fashioned, messy and labor-intensive system of hand milking into a bucket while sitting on a stool. Today's types of dairy farms are spotlessly clean, efficient and often highly computerized businesses.

During last ten years major changes has been occurred in dairy sector of Pakistan and due to these change this sector is on the way to become an industry. A large number of modern dairy farms have been established in different areas. Most of these dairy farms have exotic animals and number of these animals is in hundreds and even in thousands. Dairy farms with more than 3000 animals also exist and with 5000 animals are in plan. Such farms have adopted most modern managemental and feeding practices and well trained man power. Milk produced on these farms is either sold out in processed/fresh form through outlets or departmental stores etc. or supplied to dairy companies.

Technological advances have changed dairy farming from the old- fashioned, messy and labor-intensive system of hand milking

into a bucket while sitting on a stool. Today's types of dairy farms are spotlessly clean, efficient and often highly computerized businesses.

Global Milk ProductionThere are around 250 million cows producing milk across the world. The European Union is the largest milk producer and has about 23 million dairy cows. This compares with 10 million in North America and over 6 million in Australia and New Zealand. Milk production is also on the increase in South-East Asia, including countries not traditionally noted for their milk consumption, such as China, which now has over 12 million cows producing milk.

Higher Milk YieldOver the last fifty years, dairy farming has become more intensive to increase the amount of milk produced by each cow. The Holstein-Friesian, the type of dairy cow most common in the UK, Europe and the USA has been bred to produce very high yields of milk. Around 22 litres per day is typical in the UK. The average yield in the US is even higher at over 30 litres per day. Milk production per cow has more than doubled in the past 40 years. If they were producing just enough to feed their calves, as nature intended, this would be about 3 or 4 litres a day.

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TRADITIONAL MILKING and MODERN MILKING TECHNOLOGYModern dairy production is diverse with systems ranging from cows housed indoors year-round to cows maintained on pasture nearly year-round. Expansion to larger herd sizes has allowed producers to increase the efficiency of production and capitalize on economies of scale, but it has resulted in environmental challenges with larger numbers of cattle and more manure concentrated in smaller areas.

Engro Dairy farm is a type of diversification industry by Engro Corporation. It was initially started at Sukkur near Dawoo Stop to test the animals’ survival with 100 Australian breeds. This test was very successful, then it was thought to start dairy farm nearby Sukkur, but unfortunately the land Engro was trying to purchase, was high-priced therefore they shifted to Nara. It is not only reason of shifting but there are few other causes which are as under:

The land area needed was not available in surroundings. Nara is sandy Area and Sukkur is not a sandy region so it gets long

time to absorb water. Except 4 to 6 days whole the year air blows at Nara.

Traditionally dairy farming is done without using any standards and technology. From feeding cow to milking, everything is done manually in traditional farming. In Engro standards are being followed in rearing, feeding and milking like feed mixing area, milking parlor and chiller etc…

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ENGRO DAIRY FARM NARAOn May 24, 2008, Engro Foods Limited (EFL), the dynamic food industry venture of Engro, performed the ground-breaking ceremony of Engro Dairy Farm in Nara District Sukkur, Syed Khursheed Ahmed Shah, Federal Minister for Labor, Manpower and Overseas Pakistan performed the ground-breaking and unveiled the plaque of the dairy farm which will be setup near Salehpat in district Sukkur.

The project execution phase-I was completed in October 2008 with the arrival of imported animals. They purchased 220 Acres of Land, getting on lease about 350 Acres. On 220 Acres Engro established Dairy Farm and 350 Acres are used for Cultivation of Crops, after processing used as feed for animals.By setting this type of large scale commercial dairy farms, Pakistan can not only erase domestic supply deficit but also able to fulfill a significant part of the vacuum in the international market.

“Jersey and Jersey Holstein animals are the preferred breeds. Initially Engro Dairy Farm has imported 1500 non pregnant heifers.

After thorough evaluation in Sindh & Punjab, the Nara Canal area was selected by Engro Foods due to its excellent water and agricultural land availability and suitable weather. The company will launch a comprehensive vaccination program with provision of clean water and balanced nutrition to have disease free, healthy and happy animals at all times.

Engro Dairy Farm is situated in the area of Nara Taluka Salehpat District Sukkur. Its location is 80km from Sukkur City. Engro is farm with the largest number of animals in Pakistan. More than 4300 animals, (Australian Breeds named, JERSEY and HOLSTEIN FRIESIAN) are surviving at this farm. It is most high-tech milking Parlor in Pakistan.

Engro dairy farm Nara is certified from different perspectives by different standards.

These certifications are; ISO 9001, for Quality Management System. ISO14001, for Environment management System. ISO18001, for Occupational Health and Safety Management System. ISO22000, for Food Safety Management System. It is also certified by Global Gas and Halal being a Muslim country so the products must be assured to be Halal before eating).Engro Foods will place experienced expatriates in key positions to ensure a smooth startup of the operations, however, local staff will be attached with experienced expatriates for on-the-job training for which a base team is already in place. The Engro Dairy Farm is expected to open new opportunities for the locals and provide great learning in livestock management for enhancing yield.

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ORGANIZATIONAL STRUCTURE AT ENGRO DAIRY FARM NARA

Farm Manager

Admin

HR

Procuremen

t

Finance &

Accounts

Supply

Chain

Engineering

CivilMechn

icalElectri

cal

Crop Manager Live Stock Manager

Veternary Doctors

Quality Assurance

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TECHNOLOGY USED AT ENGRO DAIRY FARM NARA

GEA FARM TECHNOLOGY (used at Engro Dairy Farm Nara)

The GT2 Parabone combines the best of herringbone and parallel stalls in an economical parlor solution. Compact 30-inch stall spacing and parallel-stall-style udder access provides efficient milking from the side or between the rear legs. In this Technology 60 cows can be milked within 06 minutes.

DELAVAL TECHNOLOGYThis technology is used in milking parlor named as Dela Wall, it is half of the size of GEA Tech and used especially to milk pregnant, injured and ill cows, it is also used to milk the first milk of cow. It can milk 32 cows at a time and one cow in 5 minutes.

BACKWARD INTEGRATIONBy setting up Engro dairy Farm at Nara, Engro Corporation has benefiting its unit of Engro Foods Sukkur, this Dairy Farm is facilitating to ensure a more reliable or cost-effective supply of inputs.

COMPLETE PROCESS OF ENGRO DAIRY FARM NARA

Complete Process of Engro dairy farm Nara contains following steps:

Food Making

Food for Animals made by Engro is kept hygienic and frequently digestive. Following processes are involved in food making.

Fodder Selection:

Fodder should contain adequate amount of fermentable carbohydrates and more than 65% moisture in fodder selected for silage making. Commonly used fodder for silage making are maize, millet, oat, and sorghum grass and they all are used at Engro throughout the year. Most of the time maize is used for silage making as maize silage is considered the best silage throughout the world.

Harvesting and Chopping of Fodder:

As the Engro has its’ own leased land of about 350 Acres, so they produce good crops, also purchase maize from open market after testing it from all perspectives. Grab test is used to measure the moisture concentration in fodder. Use maize chopper for harvesting and chopping of fodder.

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Mixing Additives: Different feed additives may be mixed to stimulate or inhibit the microbial activities in silage. These additives may include:

Inorganic chemical - Calcium carbonate, magnesium carbonate, ammonium sulphate, sodium sulphate, zinc sulphate, copper sulphate, ferrous sulphate, manganese sulphate, sodium chloride, sodium nitrite, calcium phosphate, calcium silicate and phosphoric acid.

Organic chemicals - Acetic acid, citric acid, benzoic acid, formic acid, lactic acid, propionic acid, formaldehyde, ethylalcohol, propylene, glycol, gention violet, lactate, sodium gluconate, ethyl acetate, ethyl butyrate, ethyl diamine, dihydro iodine and urea etc.

Feed stuffs - Used as silage additives are wheat bran, crushed maize, starch, dextrose, molasses, whey and yeast etc.

Fermentation products and microorganism - A few enzymes,  extract of fungi and several species of microorganism like Lactobacillus acidophilus, Turolopsis species, Bacillus subtilis etc.

Baling of Silage

After chopping and adding additives silo is filled. Inside silo chopped fodder is compressed with silage baler, silage baler makes bale in well compacted form. so that it is packed tightly and there is no air left. If air left anaerobic condition will not be created.

Time of silage readiness: After a period of 40-45 days the silage is ready for feeding to the livestock.This whole process makes silage good for animals and also makes it 60% digestive than the ordinary feed.

Cow’s preparedness Milk

A dairy cow needs to give birth to a calf in order to produce milk. At Engro Dairy Farm a calf reaches at Estrus at 6-9 months’ age. The ‘dry’ period is similar to an adult going on maternity leave, where the cow will rest and prepare for the birth of her calf. It is the period of lactation when cow’s milk is prepared in cows tits. A cow gives birth to a calf after 09 to 10 months.

Milking Process

The milking process on Engro consisted of following steps

Extracting milk from animals

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Chilling Milk and sending to tank Transporting the milk to a storage tank Storing the milk until it is picked up for processing.

There is good cooperation between cows and operators, the cows automatically come to parlor at the time of milking, we saw that the door was opened and cows came themselves and stand in comfort top. The workers came firstly to clean tits with tissue, cluster the cow, then it started milk extraction and after milking pyodine was used on each animal’s tits.

Along with milk extraction, extracted milk went to the chillers to be cooled and stored to the tanks. The milk is stored until and unless it is picked/transported for processing. Engro Dairy Farm itself has storage capacity of 70,000 liter on the plant.

Logistics

Engro dairy delivers its milk to processing industry by trucks with tanks especially made for milk logistics.

The DuPont Approach DuPont is safety standard applied at Human and Animal at any Farm or Plant. DuPont PSM involves the integration of three broad dimensions:

Facilities to manufacture and handle hazardous materials Technology of the process Personnel who operate, maintain, and support the process.

Engro dairy Farm at Nara has achieved 3.6 rating in DuPont out of 5, and achieving >=2 is a standard.

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EMPLOYEES AT ENGRO DAIRY FARM NARA

Permanent Employees: 33Third Party Contractual: 145

NO. and KIND OF ANIMALS AT ENGRO DAIRY FARM NARA

About 4300 Animals of Austrailian Breeds are surviving at Dairy Farm.

Breeds of Dairy CowsThere are many breeds of cows in Australia but the main dairy cattle breeds are Holstein Friesian, Jersey and Aussie Red, all of which have different shapes and colours.

Two breeds , 1) JERSEY 2) HOLSTEIN are available at Engro Dairy Farm Nara.

JERSEY

Origin   Jersey Cows originally came from the island of Jersey (in the English Channel between England and France). They were bought to Australia in 1829.

Looks like 

These cows are fairly small, and fawn in colour, with black tips on their muzzles, ears, feet and tail. 

Interesting facts 

A Jersey cow’s milk is ideal

for making butter because it

is so creamy

Jerseys are the smallest of all dairy cows and can weigh up to 500kg. Jersey’s are the second most common breed in Australia. 

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HOLSTEIN

Origin Holstein cows originally came from the Netherlands, but many breeding animals now come from North America. 

Looks like  These cows are mainly black and white. 

Interesting facts  

Holstein cows are the most popular in the world.

Of Australia’s 1.7 million dairy cows there are 1.4 million Holstein

cows.

Holsteins can be found in every Australian state, Victoria has the

most.

Holstein cows produce large quantities of milk; some cows produce

10,000 litres in a year; that’s equal to 5000 x 2 litre milk cartons

every year or 14 x 2 litre cartons every day.Holsteins are one of the biggest dairy animals; cows can stand over 150cm tall and weigh over 600kgs while bulls stand over 180cms tall and weigh over 1000kg (about the same as a small car). Note: Average Life of these Breeds is about 06-08 years.

AVERAGE MILK PRODUCTION per ANIMAL per DAY AT ENGRO DAIRY FARM NARA

Per Day average Milk production of per Animal: Approx: 26 LitersPer Day Average Milk production of Whole Farm: Approx: 35000-43000

Liters

SAFETY MEASURES IMPLEMENTED AT ENGRO DAIRY FARM NARA

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At dairy farm all safety measures has been implemented in all units. By doing this Engro dairy Farm at Nara has achieved 3.6 rating in DuPont out of 5, and achieving >=2 is a standard.

Engro dairy farm has received ISO 18001 for health and safety because of its efforts regarding steps taken towards animal and human protection.

Animals: To make animals secure and safe in Engro, different barns and yards are made for different nature of cows like they divided cows into pregnant cows at initial stage and final stage, Estrus or standing heat and calves. And to prevent diseases they timely diagnose animals, seven doctors are also hired for that purpose. If any human (Visitor or Worker) comes from outer atmosphere to Engro they are showered with a substance, so they can prevent cows as well as humans.

Animal’s survival: Most dairy cows are housed during the winter and bad weather. The cows can move freely, socialize and eat and drink when they want in sheds which are made by Engro that have natural light.

Normal Diet: At Engro each cow is provided balanced diet. Each dairy cow eats between 25 and 50 kilograms of feed each day. A dairy cow drinks around 60 litres of water per day. Some cows may need up to drink 100 litres, or more, depending on how much milk they produce.

Confined spaces: Such as silos, water tanks, milk vats and manure pits may contain unsafe atmospheres, which can cause poisoning or suffocation. To entre those places different safety procedures are essential to apply and wear different type of clothing and shoes.

Electricity: Everyone in the farm is made aware of dangers include faulty switches, cords, and machinery or overhead power lines.

Workplace Health: The Occupational Health program at Engro includes industrial hygiene and occupational medicine aspects, focusing primarily on reducing health risks of employees. Two doctors are also hired. They monitor their employees regularly in comparison with the risks they are exposed to, taking all necessary steps to reduce these exposures.

Heights: For climbing stairs special instruction is written on every step of stair to avoid any major injury or accident.

Machinery: Each and everyone in the Engro farm is informed about all machineries involve risk. The operators are also trained to run machineries accordingly.

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Vehicles: To avoid major accidents drivers and riders are directed to move their vehicles with velocity of 15km/hour. Vehicles are also passed through chemical substance at entrance to avoid diseases. Separate walking tracks are also made to evade industrial accident.

Weather: Hazards include sunburn, heat stroke, dehydration and hypothermia. To prevent animals from such hazards special barns are made with fans. For workers it is allowed to leave the work on the spot and no one can force worker to continue process even CEO.

Apart from that every worker is instructed to wear tight cloths. Engro’s risk management & emergency preparedness is qualitative, emergency assembly halls are made to be gathered on emergency assembly halls to set plans of solving emergency and everyone is assigned task to steer clear of mismanagement and chaos.

ENGRO DAIRY FARM NARA INVESTMENT

Initial Investment at Dairy farm was Rs. 40.00 Millions, according to their officials now re-investment is double than initial investment.

OTHER FACILITIES AND OBSERVATIONS AT ENGRO DAIRY FARM NARA

Disinfectant shower is good for Animal Health. Walking track at farm was not constructed properly. Only one person of Engineering Department covers All other

departments; Civil, Mechanical and Electrical. Waste bales of fodder were placed at open air, not disposed off

properly.

OUR GROUP OBSERVATION ABOUT DAIRY FARM NARAThis is an excellent example of Entrepreneurship, because Engro taken risk, initiated 100 animals little farm at Sukkur. After that they take a high risk by investing huge amount in Engro Dairy Farm Nara.

SUGGESTIONS FOR ENGRO DAIRY FARM NARA

Disinfectant shower should be applied at exit time also, because it is good for human Health as well.

At the time of fire at night, there should be a exit track of radium lights inside the Power plant, ware house and all buildings.

Organizational structure should be re-organized at Dairy Farm. A proper disposal unit for manure and waste bales should be

designed at Farm. Increase greenery at Farm House.

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References:

Syed Rizwan H. Bukhari (Farm Manager EDF.)

Mr. Amjad Farooque Bhatti (Eng. Deptt: EDF.)

Mr. Ahmed Hassan Usmani (Farm Accountant at EDF.)

www.pakdairyinfo.com

www.engrofarm.com

www.images.google.com

www.engrofoods.com

The End

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