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Observations.

A few observations?

The observations given below are provided for the reader to help him/ her to make the most feasible decision regarding his/her interest.

 Comparison between the prices per annum of land on lease/rent and fertilizers of District Vehari:

 

Year

Land Lease/Rent (Rs.)

Urea 50 Kg (Rs.)

Diamonium Phosphate (D.A.P) 50 Kg (Rs.)

Sulphate of Potash (S.O.P) 50 Kg (Rs.)

2003

6000

417

757

794

2004

7000

423

885

758

2005

7000

445

1003

931

2006

10,000

495

1102

1202

2007

10,000

535

852

897

2008

10,000

548

1322

897

2009

16,000

660

2320

2101

2010

20,000

855

2637

2327

2011

30,000

1700

4200

3800

2012

35,000

1700

3800

4050

 

 

Comparison between wholesale prices per annum of Meat, Egg and Feed:

 

Year

Mutton per Kg (Rs.)

Beef per Kg (Rs.)

Egg per dozen (Rs.)

Cattle and Poultry Feed per 50 Kg (Rs.)

2003

140

65

2004

160

75

590

2005

170

90

37

618

2006

215

110

30

628

2007

225

112

38

704

2008

240

120

46

1078

2009

300

165

58

1056

2010

380

175

59

1222

2011

480

240

73

1410

2012

500

260

70

1700

Source: Zain International (for Mutton and Beef) and Sabzazar Farm (for Egg, Cattle and Poultry Feed).

The abovementioned table shows the purchase price of Zain International for Mutton and Beef which is used for export purposes only. The same table shows the selling price of Eggs at Sabzazar Farm and the manufacturing price of Cattle and Poultry Feed for their domestic use only.

It should be noted that, at both the international and national level (in Pakistan), the price of feed for dairy has increased 27 %, between 2011 to 2012 and the price of milk has decreased 5 %. However, the price of beef remains the same between the aforesaid years. This shows that there would be a downfall trend of margin of profit in future.

 

Increase in percentage of prices per annum on average basis of different items between 2003 to 2012:

Mutton          15 % Beef             14 % Egg                10 %
Wanda (Concentrates)    13 % Land Lease/Rent        21 % Urea              19 %
Diamonium Phosphate   21 % Sulphate of Potash (S.O.P)  19 % Milk               25 %
Cross-breed Milking Cow  25 % Imported Friesian Heifers       25 % Gold               23 %

Average Production Of Cows In Dairy Herd Improvement Associations, 1906-1972:

Year

Cows on Test (Number)

Average Milk (Pounds)

Milk fat Production (Pounds)

1906

239

5430

215

1910

25000

5730

227

1920

203472

6241

247

1930

507549

7642

303

1940

676141

8133

331

1950

1088872

9172

370

1960

1868469

10796

418

1970

3191457

12839

480

1972

2246685

13226

496

Source: U.S.D.A. Dairy Herd Improvement Letter, June 1973.

 

The abovementioned reported result makes visible, the historical difference in improvement of milk production between the American/European and Indian/Pakistani cows over years time-period. It is worth noting that in the first quarter of the 20th century the milk production of the Indian/Pakistani breed was either better or similar to the American/European breed. However, in the last three quarters of the 20th century the milk production of the American/European breed, increased 3 to 4 times as compared to the Indian/Pakistani breed.

High-Producing Holstein Cows In DHIA Produce Milk Efficiently (U.S. DHIA 1971-1972):

Level of Milk Production (Pounds)

Value of Product (Dollars)

Feed Cost

(Dollars)

Income over Feed Cost (Dollars)

Feed Cost Per 100 lbs. Milk (Dollars)

8,500-9,499

$ 539

$ 238

$ 301

$ 2.62

9,500-10,499

$ 590

$ 249

$ 341

$ 2.47

10,500-11,499

$ 654

$ 266

$ 388

$ 2.41

11,500-12,499

$ 708

$ 275

$ 433

$ 2.29

12,500-13,499

$ 769

$ 289

$ 480

$ 2.22

13,500-14,499

$ 835

$ 307

$ 528

$ 2.19

14,500-15,499

$ 899

$ 324

$ 575

$ 2.17

15,500-16,499

$ 962

$ 340

$ 622

$ 2.14

Source: U.S.D.A. Dairy Herd Improvement Letter, August 1972.

The abovementioned table shows the comparison between the expenditure on per Kg milk production of high and low yielding cows.

It is imperative to mention here that Pakistan ranks 3rd in the world with reference to milk production, after America and India. Moreover, Pakistan falls in the category of those nation states which produce milk below 30 $ per 100 Kg, being the cheapest milk producing countries. However, comparatively, India, China and Brazil’s milk production cost is between 30 t0 40 $ per 100 Kg and Iran, Turkey and majority European countries between 40 to 50 $ (or above) per 100 Kg. This evidences the assurance that in future Pakistan will become the hub of export for milk and beef in the world.

 Returns Per $ 100 Worth Of Feed Fed To Different Classes Of Livestock:

Returns Per $ 100 Feed

Classes of Livestock

1971

3-yr. average

1967-69

15-yr average

1956-70

Beef cow herds

$ 180

$ 152

$ 137

Dairy cow herds

$ 200

$ 205

$ 191

Feeder cattle bought

$ 156

$ 138

$ 126

Native sheep raised

$ 122

$ 132

$ 124

Poultry

$ 135

$ 166

$ 151

Source: Summary of Illinois Farm Business Records, 1971, University of Illinois.

The above table shows that Dairy cow herds are far more profitable than the rest of the classes of livestock mentioned in the said table.

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