Investment in cattle farms across Pakistan has increased by an estimated 20% in the last three years.
This is due to the fact that they are considered to be good investments; owners raise revenues by supplying livestock across the country (including the livestock markets established during the run-up to Eid-ul-Azha) in addition to selling by-products such as butter, milk and yoghurt.
The annual ROI ranges between 10 and 12%; their resale value increases by eight to 10% every year.
If you are thinking about investing in a cattle farm, factor in the following:
(1) Standard plot sizes range between two and four acres.
(2) Eighty percent of the land is usually used for animal grazing and the remaining 20% for sheds to house the animals. These sheds are usually made with concrete (as opposed to steel) to combat heat. The ideal temperature inside the shed should not exceed 26°C and this can be ensured by installing air-chillers and heaters in the case of extreme temperatures.
(3) Cattle farms can be self sufficient by producing their own electricity. This can be done by converting manure into energy. In addition to being economical, methane gas (derived from manure) is also eco-friendly.
Another way to raise funds is to allot space for cultivating crops which can either be sold or fed to livestock on the farm.
(4) Cattle farms should ideally be located near water bodies to source water for cleaning and drinking. In many cases, drainage water is recycled to water crops.
(5) The initial cost of establishing a cattle farm ranges between four and six million rupees and the monthly maintenance costs range between Rs 25,000 and 45,000.
(6) Areas where cattle farms have been established include: Burki Road (Lahore), Faisalabad Road (Sheikhapura), G.T. Road (Gujranwala), Jhamra Road (Faisalabad), Karachi-Hyderabad Motorway (Karachi) and Shergarh (Okara).
(7) The prices of these plots range between two to three million rupees per acre. Monthly rental rates range between Rs 20,000 and 45,000 per acre.
By Uzma Khateeb-Nawaz
(Information provided by Jahanzeb Cattle Farms, Sindh)