Introduction

Background

The Economy of Nepal is dependent on agriculture since last many years. Agriculture remains the major
contributor to the GDP with the growth rate of 4.9% (Strategic Plan 2013-2016, MOF). Despite little arable
land almost 38% people make a living hood from agriculture and is the foundation of national economy
contributing 82% to the total export of the country (UNESCO, 2011). Share of agriculture is 36% to the
national GDP and provides employment to 66% people of the country (MOAD, 2013). As mixed agriculture
system dominates in Nepal. Livestock Sector is considered to be the most important integral part of agriculture
system which contributes by approximately 25.68 percent to agricultural GDP, and about 12 percent of total
GDP. Numerous people are involved in the production, slaughtering, processing, and trading of livestock and
livestock products.

Dairy sub-sector shares more than 60 % of livestock sector contribution to GDP. Of the total population of
cattle and buffaloes, it has been estimated that around 8-10% and 25% are improved/ crossbred respectively
(DLS, 2007/08). The crossbred/ improved populations are mostly concentrated in the peri urban areas of hill
and Terai regions with comparatively better infrastructures and marketing facilities. Both solo and mixed
species are being raised by the farmers particularly for milk production and sale. Majority are smallholder
farmers with some medium sized and extremely few large scale producers (Shrestha et al., 2010).
Crossbreeding with Jersey and Holstein Friesian cattle & Murrah buffaloes for breed improvement has been
proved viable for the country. Of the total annual milk production of 1.44 million metric ton in the country,
cattle produces 0.41 million MT and remaining 1.03 million MT from buffaloes. Thus, annual productivity of
cattle and buffaloes are 438 kg and 853 kg respectively. However, in the major dairy pocket areas, the 300 days
lactation performance of crossbred cattle has been reported to be 2873±965 l (Shrestha et al., 2010) with wide
variation. About 15% of the total volume of milk produced in the country comes into formal market for
processing. With increasing road network, the volume entering in to the formal market could be expected to
increase in the days to come. Kathmandu is the major market for processed milk (70%) and rest being sold in
other urban city centres. Small volumes of milk are traded across the border on either side. It has been estimated
that 35% of the milk produced are sold in informal markets (e.g. door to door supply, supply in hotel,
restaurants etc.). Remaining 50% are assumed to be consumed at household level or used for producing ghee
and other products either for home consumption or sale. The country is net importer of dairy products
importing some 6000 MT of skimmed milk powder, 3000 MT whole milk baby food and 2000 MT of
condensed milk annually (NDDB, 2001). Sizeable amount of cheese and ice cream are also imported in the
country, whereas the demand for milk in the formal markets exceeds to the supply situation mainly due to
recent establishment of SMP plants from private sector. Some years back, the dairy farmers had faced an acute
problem of milk holidays (days in the week in which milk were not purchased from the farmers by the formal
sector for processing) during flush season. Now the dairy industries are facing short supply of fluid milk and
their industries are running far below their actual capacity. The finance sector is now investing on dairy animal
farming with the collateral support of private dairy industries.

Similarly, Pig is known as mortgage lifters. Rapid growth in pigs is considered a major component of profit
determination. They grow rapidly from a few kg. at birth to 100 kg weight in about 6 months. The generation
interval is short and also it is possible for females to farrow when they are about one year old. It has significant
role for food and nutrition security and in making livelihood to majority of the poor household in the country.
Sales of livestock, livestock products, and livestock services make up a considerable proportion of the average
farmers cash income. Pig is one of the fastest growing sectors in livestock after Poultry. Nepal has 11, 37,489
pigs with an annual average growth rate of 1.99 % in the fiscal year (F/Y) 2011/12 (MOAD, 2012). The country
produced 287930 MT meat with 18287 MT pig meat contributing 6.35% of country's total meat production. The
distributions of pigs are not uniform in the country. The populations of pigs are more concentrated in eastern
Nepal than other regions. Out of the total population of Pigs 49% is concentrated in eastern region followed by
central, western, mid western and far western region. This could be due to the local demand and prospect of
export to adjoining areas of India and Bhutan. Comparing the growth of number of pigs from 2002 to 2012 in
regional and national basis, it is found that among regions eastern region has the highest change in population
by 31.5 % as against 21.7% of national growth. While in Far western region the pig population actually
declined by 6.4%. Similarly, agro ecologically pigs are found to be preferred in hills than it other regions of the
country. More than half of population (53%) and pork production (57%) is concentrated in hills followed by
terai. This type of concentration of pigs in hills is probably due to preference of people of hills to pork
consumption and human population composition (ethnic groups). This phenomenon is very important with the
perspective of alleviating hunger and nutrition, as the people in those areas are found to be more malnourished
and nutritionally insecure compared to other regions (WFP, 2009). Since pork production depends on the
number of pig in the case of Nepal. The production of pork is directly related with the existing number of pig
population in different regions (Table: 3). The highest pork production was found in eastern region 7948 MT
(43.5%), while the lowest production was in far western region (3.4%) (MOAD, 2012). Though there seems
growth in number of pig and pork production But the contribution of meat in total meat production is found to
be decreased from 8% to 6% (Table 1). This may be due to the rapid growth and increase in share of poultry in
chicken production as its share doubled in total meat production from 7% to 14% in same period of time. The
traders then sell the pigs to the major traders and either they export to adjoining districts, including Kathmandu
and Pokhara of Nepal, or to Bhutan and India or they sell to the local butchers who slaughter the pigs and sell
the meat at retail meat shops. Pig production and consumption of pork is increasing rapidly. Processor for
production of ham, bacon and various types of sausages, utilize the largest portion of pork. Most of these pork
products go to catering trade and more affluent consumer (TLDP, 1999).

In spite of having great potential to augment meat production trough pig farming, very little have been done in
this sector so it's we who are supposed to develop special programme for this very important sector of livestock.
Because of global exposure and influx of educated youth in livestock farming, Pig farming is gaining
momentum day by day. The demand of pork is increasing steadily in the market, so our effort should not be
targeted only in piglet production, it should also be targeted for pork production and its supply to the domestic
and international market.

Moreover, aquaculture is also burgeoning field of agricultural production system with more than 86% of
national production through pond culture. It had became a interesting commodity for integrated farming
comprising productivity of 3-5 tons/ha/year. Aquaculture has a relatively recent history in Nepal. It first started
on a very small scale with imports of fish seed from India in the mid-1940s. However, further development only
begun in the 1960s and more significant progress was first seen as from the beginning of the 1980s. Various fish
species have been imported from abroad over the years and some indigenous carps have also been introduced
for farming. At present, seven commercially valuable carp species are bred and cultured in the country. These
include the three indigenous species rohu (Labeo rohita), naini (Cirrhus mrigala) and bhakur (Catla catla). The
remaining four are exotic species; common carp (Cyprinus carpio), silver carp (Hypopthalmichthys molitrix),
bighead carp (Aristichthys nobilis) and grass carp (Ctenopharyngodon idella). Pond polyculture of the above
cited carp species is by far the most common aquaculture system and contributed 90% of the total production of
some 10 600 tonnes in 1995/96. The lion part of the production take place in the southern part of the country;
94% of all ponds - which are mainly smaller village ponds - are situated on the Terai plain. There is very limited
information available on fish demand and consumption patterns in Nepal. However, it appears that fish is
generally accepted and liked by all non-vegetarian Nepalese. In the south, where the warm-water carp is
produced, the fish is often consumed close to the production point with a certain amount of fish being sent to
Kathmandu. Supply and transportation constraints seem to be the reason behind the relatively low per caput
consumption of 1.1 kg/inhabitant, rather than a lack of demand. It can be noted that domestic supply appears to
be supplemented by imports, mainly from India. It should be remembered, though, that purchasing power,
particularly in rural Nepal, is limited and the current selling price of good quality carp in retail markets is
seldom more than NRs. 200/kg.

Kalaiya lies in Bara district in the Narayani Zone of southern Nepal. It has a well-maintained livestock market.
Kalaiya is a fast-growing town, the main occupations of local people being business and farming. The project
area has well access of farming inputs and supply through national trade centers like Birgunj and nearby indian
trade centers.
In a developing country like Nepal where most of the people are expatriate working either in India and majority
in Gulf countries, production of dairy product, fish, pig meat is very limited too few commercially established
firm except nominal percentage where cow/buffaloes are kept at home for dairy product. Due to majority of
expatriate people, that also the age range of 20-50, the production of raw milk is comparatively very low
leading into gap in demand and supply. Further, availability of quality product is major concern due to low
supply and high demand. People used to mix water in the raw milk to fill the gap of demand and supply that
causes the epidemic diseases due to contamination.

An optimal level of quality dairy product is a dream for many people. There are only a limited number of
quality dairy product suppliers. Their facilities are not able to meet the demand of people. With a limited
number of available dairy product suppliers, it is nearly impossible to get the quality dairy product that also at
affordable price.

Dairy production, fisheries and pig farming in Nepal is based largely on the traditional system model and where
production is consumed in-house and some extend sold at local market. In very few cases, raw milk is
processed to ghee and that also sold at local market only.

Products of such a system are mismatched with the existing expectations of the people, The country, therefore,
needs a proper perspective to implement quality product for all through a primary product market approach and
must develop a plan to achieve the demand of metros need. The present dairy farm infrastructure is inadequate
to meet this requirement. Funding from various government and non government organization to help increase
production capacity of dairy is a relatively new concept which not only has the ability to train a large number of
farmers in a short time in a cost effective way but market for them is another challenge for them leads into de-
motivation and have very little positive contribution on national demand of dairy products in Nepal.

A country’s prosperity depends on the health of its population i.e. Physical Health, Mental Health, Economic
Health, Education and environment. Physical and Mental health is the most important one to enjoy prosperity.
The state puts in efforts to lift the health standards of its population and results can be greatly enhanced with the
private sector supplementing the efforts. On physical and mental health, particularly in the underdeveloped
countries, the state resources rarely permit extending the effort beyond the level of primary health which is
under a national priority. But to achieve those goals quality food play major roles and quality foods comes from
quality production house and that is lacking in Nepal.

The demand for agro product is on the increase and the seekers of such products are ready to pay the price of
product. Economic viability is, however, essential for the existence and survival of any agro firm. Disease does
not discriminate between the rich and the poor but the quality foods do. Those who can afford the cost along
will be able to buy quality products. But the agro firm has to meet the social responsibility of providing
employment opportunities to poor and needy as well and even provide cows free of cost as well and buy raw
milk from them to sustain them. As quality dairy farm will have the economic strength to allocate a portion of
its profits to meet the cost of social responsibility. An integrated scheme encompassing Dairy Farm (capacity to
accommodate 50 milking cow, a Processing House, a Research and Development Centre and a Marketing
Department) having own vehicle to transport dairy product from processing plant to market, therefore,
economically a viable proposition to extend the quality products to people A Research & Development Center
provides the building blocks for other dairy farms which in turn provide a base for specialties and R & D over a
period for time in the dairy sectors.

Keeping in view of all above, Yadav Pashupalan Farm has decided to establish a dairy farm with 15 milking
cows within 4 month of establishment and adding 15 more on next month and 10 each thereafter each month to
reach at 50 milking cow, 25 piglets at end of 4 th month and thereafter 30 each on end of each month. 10
breeding sow at the end of 4th month. Similarly aqua culture will be started from 12,500 fish seeds at 4 th month
and thereafter same quantities will be kept at separate pond at gap of 2 months and progressively thereafter
develop the infrastructure to ultimately extend it to 1000 milking cows, storage facilities and Research &
Development Center. The promoters have made up their mind to establish the proposed project at Kalaiya, in
Bara District in the Central Region with the prime objective of promoting dairy products, pig meat and fish on
one hand to provide qualitative and employment facilities to the general people on the other hand. It’s not long
history of modern agro farms in Nepal but there are so many farms established in Nepal and Dairy
Development Corporation is only the government owned entity dedicated to dairy product development in
Nepal.

Although health is the major responsibility of the Government, considering the magnitude of problems being
faced by the country it is impractical to hope that the Government of a poor country like Nepal alone will be
able to solve the health problems in a short time. Hence, the proposed agro farm in the private sector needs to
be given the top priority for the development of health through quality products in the country.
 Promoters & Ownership Structure

Company

M/S Yadav Pashupalan Farm registered under the Gharelu Tatha Saana Udhyog Bivaag vide Certificate of
Registration No. 6443/363/074/075 and promoted with the prime objective of animal husbandry and milk
production at Kalaiya-18, bara District in the central region of Nepal to provide production and marketing of
dairy product specially milk.

Promoters & Shareholders

M/s Yadav Pashupalan Farm is promoted by experienced businessmen who have a long experience &
knowledge in agro sectors. The bio-data of key promoters are given in Annex-

Ownership Structure

The ownership structure of shareholders is as shown hereunder:

Sr. No. Name of Partners Capital % of Share Holding

01 Lalbabu Prasad Yadav 20,00,000.00 100%

Total 20,00,000.00 100%

Ownership Detail:-

1. Mr. Lal babu Prasad Yadav has been engaged in business of animal husbandry since last 10
years have expertise in this field so assurance of business success is 100%.

Project Administration

The success and failure of an organization depends upon the ability of top management to make crucial
decisions. Therefore, the top management has occupied the remarkable place in this organization. In order to
manage and handle the entire works of the company, there is Board of Directors as an apex body in the
management.

Besides Boards of Directors, there are highly qualified and technical personnel and supportive staffs for
handling the daily works of the organization. Hence, the quality of products that the dairy farm will be
providing and knowledge, capability and experience of the management team can be considered as the main
strength of this company.
Management

The Board of Directors is responsible for overall management of M/s Yadav Pashupalan Farm to ensure smooth
and efficient functioning. Decisions to be taken on Krishi farm matter, employee welfare, goals and strategies
are all done by the Board. Executive officer for the Krishi farm and other required vacancies are separately
appointed by the Board to oversee the day-to-day management and other operations. Separate committee of
senior executives and company financial/legal expert/technical is formed under executive officer’s leadership,
as a ‘governance’ committee for effective and quick decision making process. The Board will contact other
Krishi farms in India as academic consultant for running Krishi farm if required.

M/s Yadav Pashupalan Farm is, of course, managed as follows:

 The Company will be managed by the Board of Directors of the M/s Yadav Pashupalan Farm through
its seven functional departments. The Managing Director is the Chief Executive of the organization,
deriving his powers from the Board Directors. He is responsible for the overall performance of the
organization. The executive accountability rests with him. He is assisted by 4 Functional Directors.
o Director – Production & planning is responsible for activities like overall management of farm
& production of various dairy products.
o Director – Marketing is responsible for the overall market analysis and strategy of the company.
o Director - Finance allocates resources to required activities efficiently and monitors the fund
movement through a proper accounting system.
o Director - Human Resources will be responsible for Searching, Selecting, Screening and
Recruitment of best talents at least cost and monitors the performance of individuals, looks
after their welfare, controls absence and leave and enforces discipline in the organization and
promotes staff on the recommendation of the Departments in conformity with the policy &
resources if the M/s Yadav Pashupalan Farm

The Management Policy will be:

 Centralized Control and Decentralized Authority.

 Management by Objectives

Organization Structure

The proposed organization structure of M/s Yadav Pashupalan Farm is presented in the subsequent page of this
Chapter.

Outline of Services & Plans

The Master Plan of M/s Yadav Pashupalan Farm includes the short, mid and long term phases for execution of
the project within the first 1 years as envisaged hereunder.

Immediate Plan – within 1 year

 We have few katha of land in the name of proprietor. We want to further Purchase additional Land
located at Kalaiya-18, Nepal for developing modern Krishi farm and grazing area for cows.
 Purchase of Furniture, Machineries, vehicle & Equipments.
 Construction of Civil Works as per requirement.
 Plantation of seeds for grass.
 We have Purchased 15 milking Cows, 15 more cow will be purchased after few month and thereafter 10
each at the end of each month till the size reaches 50
 We are currently selling raw milk and will enhance the sell once our no. of cows increased from 15 to
others..

Immediate Plan – Subsequent Year

 Establishment of processing units and infrastructure to accommodate more milking cows.
 Expansion of civil works as per requirement.
 Start selling processed milk, Paneer, butter etc.

Above all, the promoters and the team of management are all well capable of managing the proposed company
efficiently and effectively.
 Technical Aspect
Location and Infrastructure Facilities

The potential customers for the Krishi Farm are Kalaiya, Birgunj, Jeetpur, Hetauda and Kathmandu Market and
those small markets en-route there to.

The farm facilities of M/s Yadav Pashupalan Farm located at Kalaiya -18, bara which is about 280 km far from
Kathmandu towards East South and 20 km away from Birgunj Bazaar. The site, having vast extent of level land
commanding a magnificent river view to the east and the greenery of the Tarai all around.

Most centrally located and conveniently serviced by air and road transport routes, it is easily accessible from
all parts of the country at all times of the year which is undoubtedly a prerequisite condition for an organization
aspiring to serve the entire nation.

Moreover, whole Nature has endowed the place with abundant water. It is serviced by Nepal Electricity
Authority and other basic amenities such as market place and government offices are located in close proximity.

Birgunj has of later recorded a rapid growth in the fields of trade and commerce, tourism and industrial
development and as many development economists and planning wizards would put it; it has the established as
hub of Nepal since long time and even office of Indian consulate is located at the city to look after the trade and
commerce matter.

Therefore, it is firmly believed that the whole project will have a bright future here. Its establishment will add
momentum to the development process of the area helping it to grow also as centre of education, medical
services as well as production industries and ultimately consumption of consumables goods. This will in itself
be a pioneering step to be emulated and adopted by other institutions. It will ease the ever-increasing pressure
on the capital city of Kathmandu and at the same time help other places proper and participate in the
mainstream of national development.

Nepal has opened its doors for the Communication Revolution and the Country has been connected by satellite
to the rest of the world facilitating Educational Interaction, Medical Information and Teleconferencing which
greatly enhances the modern agro, animal husbandry and dairy technology & development. Material can be
procured directly from India or from any place in Nepal without hassles as Nepal and India have long standing,
friendly trade and transit relationship. The two countries manufacture almost every item required for completing
the proposed project.
Land & Land Development

The company has planned to construct the wall boundaries or fencing all over the land. Suitable gravelling road
will be made for easy and comfort travelling inside the premises. Land is already accessible by road at any time
of the year but need some gravelling work.

Dairy plant and storage

 Factory Block including Storage room, Laboratories, Milking Rooms etc

 Examination halls

Administrative Block

 Staff quarters
 Chairman, Managing Director & directors chamber
 Administrative Block

7,700 square feet of shed is required for 50 milking cow, 5,000 square feet of shed for calves. The shed will be
constructed according to latest technology in the world keeping in mind the sanitary and other hygienic factors.
The beauty of this project is accessibility of roads, suitable land for pig farming, dairy and aqua culture. It saves
cost and time for construction making the project highly viable.

The dairy farm will be built in carefully landscaped ground to provide a harmonious and peaceful environment
with gardens trees. The estimation of size of the facilities is none on the basis of the above started factors. The
areas of work space are based on the norms suggested by the Regulatory authority of Nepal Government.

The building consists of following:

Main Dairy Section

 Breeding house
 Milking parlor
 Examination section
 Management & Administration

Besides these, there will be other civil construction works like deep tube well boring, underground & overhead
water tank, pump house, internal road culvert, boundary wall/fencing, gate, watchman’s quarter etc.

Total cost for building and civil construction including security post, boundary wall, sanitation, electrification,
staff quarter is estimated at Rs. 2,59,25,000. (For detail see Annex - 1 & Annexure - 2)

Architectural Brief

Design Criteria

The proposed Krishi farm complex provides all modern facilities incorporating modern technology and design
concepts keeping in conformity with the norms and requirements of the regulatory authority of Nepal. The
environmental factors are considered to its utmost level blending it with surrounding and landscape beauty.

The whole complex is designed in such a way that all staffs members, visiting dignitaries should be comfortable
in hygienic surrounding and able to appreciate the natural environment. The complex is designed based on low
energy consumption criteria utilizing natural sunlight and ventilation to the fullest extent.

The complex provides space, organization and environment for large number of functions as required by the
Dairy farm such as:

A. Administrative Building with the following section/facilities :

  Chairman, Managing Director & Directors chamber
 Planning
 Personnel/Administrative
 General Administrative
 Store
 Meeting Space for organizing interpersonal sections

B. Laboratory with the provision for :

 Milk testing lab
 Cow’s testing lab

Basis guidelines considered in the design:

 Separation of allied activities into each department

 Functional Grouping and sitting of Sections.
 Proper organization of internal traffic of visitors, and staffs.
 Proper organization and separation of external growth possibilities.

The Master Plan

Prime consideration has been given in preparing the master plan to integrate it with the surrounding
environment, natural topography, landscape features, social and cultural value of users and their living habits.
The master plan has been laid out by considering the following factors:

 Flexibility for growth (horizontal and vertical)

 Functional relationship of activities and grouping
 Safety measures (structural and accidental)
 Economy
 Flexible choice of content and interchangeability
 Engineering philosophy
 Aesthetic consideration
 Consideration of environmental factors
 Social habits and life style
 Communication and circulation system
 Location factors etc.

Separation of Traffic

There are internal as well as external traffic. From the safety point of view no vehicular movement is allowed
within the premises except for service and emergency needs. All the vehicles are planned to stop at the parking
lot near the entrance gate. The external traffic is allowed up to parking zone located near the entrance gate of
the complex. There is no chance of mixing pedestrian with vehicular movement which prevents accidents.
Machinery & Equipment

Visualizing the dairy, aqua culture and pig farming needs of the 21 st century, the Krishi farm will make its best
effort to acquire and utilize the most advanced technology available in the market. An exhaustive list of items
required for the modern Krishi farm of above nature is issued by the regulatory authority of Nepal. All of the
items are available in Nepal and India and can be procured within a short time. The main machinery and
requirements are as follows and details are listed in Annex –I:

Dairy Farming
Milking Machine
Milking Pail
Pump
Shovel
Bucket
Wheel barrow
Grass Cutter
Generator
Chilling Vat
Milk Analyzer Machine

The estimated cost of machinery & equipment including dairy equipments, lab equipments, air conditioner,
generator etc, is Rs. 1.5 million. While the expenditure for the infrastructure phase has to be incurred in the
initial stages, the dairy equipment is spread over a period as per requirements. The equipment procurement and
installation is also planned accordingly.

Input Materials

The main input material necessary for Yadav Pashupalan Farm are general supplies, medicines IV fluids, ,
chemicals, fodders which will be bought from the local market or imported in bulk from outside. In order to
ensure the smooth operation of the Krishi farm, and inventory of main material required for three months will
be kept, as those may not be readily available due to different reasons when necessary.

Utility

Other inputs are electricity, water, fuels and lubricants, etc. Nepal Electricity Authority will provide the required
power if private transformer is installed for processing and provisions for the transformer and diesel generator
set for emergency purposes are including in the project cost.

Water requirement for the project will be fulfilled by pumping from the underground water sources. The pump
house, underground and overhead water tanks of required specification will be constructed.

Fuel and other lubricant requirement for the project will be purchased from the local market.

Waste Disposal

This dairy farm will make an arrangement for dispose of its hazardous wastage products as per the regulation of
Nepal regulatory authority.
Project Implementation

The Project Implementation Schedule (Tentative)

Particular/Months 0 1 2 3 4 5 6 - 120
Feasibility Study
Licensing & Registration
Drawing, Design & Estimate
Loan Finalization
Land Dev.
Building Construction
Procurement of Cow, Fish Seeds & Pig
Generation of Revenue

The above chart shows that the project, right from the initial stage, i.e. completion of feasibility study to the
trial & commercial operation will take about 3 months. The farm is already have its own land having partially
completed buildings as well huge physical infrastructure which are very much suitable for the project like the
proposed one and which needs only remodeling & refurnishing as per the norms & requirements of the
regulatory body of Nepal Government.

Organizational and Management Issues

The firm has inherent advantages of having a core of highly motivated team of expert in the related field such as
veterinary doctor, agriculture graduate, financial expert & skilled human resources of proven dedication and
professional competence, most of who are also of international repute.

With the aid of modern office equipment and facilities of the state-of-the-art communication/data
processing/research system including computerization and networking amongst all major suppliers and buyers
will be able to get required input materials on the one hand and deliver hygienic products on the other.

Adequate provision has been made to retain and attract experts, professional and skilled manpower with
attractive salaries and benefits so that planning, processing, procurement, Inventory management, cost control,
personnel administration and efficient management reporting system will be carried out to set an example of a
highly reputed agro farm in the country and aboard.

The proposed management, which is competent, dedicated and forward looking is also planning to hire
consultants, local expatriate, to draw up and implement a foolproof organizational and operational system for
the farm for an initial period of 2 years.

For the execution of the project, the farm has planned to contribute a qualified Project Management Group
(PMG) of proven record of accomplishment.

The PMG will be responsible, broadly, for the following:

 Preparation of Bar Chart / PERT.

 Initial mobilization of money, manpower and materials.
 Review of tender documents prepared by the consultants of civil construction and for supply for
machinery/equipment, installation and commissioning.
 Provision of power, water and communication facilities.
 Activities involvement in the award of contracts.
 Follows-up, monitoring and control on quality, performance, cost, time schedules of works.
 Coordination between all executing agencies, regulatory body of Government of Nepal and others.

Manpower
The total manpower required for the operation of the proposed project is 7 nos. Out of 7 persons, 4 persons are
full time employees including management personal and 3 persons are as consultant. Local manpower will be
hired as far as they are available. However, expert consultant will have to be hired from renowned organizations
in Nepal and if required from aboard as well. One legal expert and one chartered accountant will be hired
additionally on contract basis for looking after legal issues and finance matter.

Market Aspect
Market Assessment

In order to ascertain market potential for products in the country, as preliminary survey was made. Efforts were
made to collect information on consumptions, demand and supply, availability of various dairy products, fish
and pig meat offered and their costs, durability and other aspects. Survey was conducted at various geographical
locations such as Kathmandu, Birgunj, Kalaiya, Hetauda, Narayangad and en-route thereon.

We have interviewed various authorities, suppliers, consumers and retailers of such products. The responses
received from the general community, concerned authorities, potential clientele group and people engaged in
such agro sector during the interactions revealed the following views/issues regarding the above products
scenario and needs of the country.

 The existing facilities are neither adequate nor reliable and therefore, consumer needs quality and
hygienic products.
 There are always quite a large number of consumers, who are not getting quality & hygienic products
over the days.
 Presently, there is no sufficient supply of such products and there is no various varieties of products as
well as per the demand of public.
 There is a realization among the people from all walks of life for the need of quality and hygienic
products available at various corner of country.
 Referral potential and affordability from within the country for the facilities of various quality products
such as cheese, cottage cheese, curd, milk, butter etc are quite attractive.

Market Estimation for Cow Farming

The nature of cow farming facilities, type and size of facilities, production of various products and others have
almost been derived from survey results, responses received from farmers, suppliers, retailers and consumers,
findings from the analyses of food technology researchers and many others. The market for the proposed farm
can be broadly segmented into principal market and peripheral market as follows:

Principal Market

The principal market for farm will be basically Kalaiya, Birgunj and other population around there. Since the
existing facilities are serving only about a quarter of the population of Nepal, the Yadav Pashupalan Farm will
have no problem of having sufficient, quality and hygienic products to cater the need of people of various
geographical locations.

Peripheral Market

Most of the demand for quality products will mainly come from the Central Development Region of the
Kingdom where large number of population resides. Even within the region, there are various suppliers but they
are not able to meet the demands of public at large. However, for availability of various products at any time
consumers are likely to visit few supermarkets. There is no option available around except those supermarket
and they also have very limited numbers of products.
There is high possibility of supplying various products to other countries like India, China and other countries.

Industry Analysis

The population of Nepal as recorded in 1991 census is 18.5 million. During the period 1981-1991 population
was growing at the rate of 2% per annum. The health status of the people in the country is very poor as
indicated by major health indicators presented in the table below. The average life expectancy of the population
is 56.10 years with a Crude Death Rate and Infant Mortality Rate of 11.50 per thousand and 74.70 per thousand
populations respectively. The Maternal Mortality Rate is 47.50 per ten thousand live births.

Health infrastructure needs up gradation in most parts of the country, it is estimated that about 15% of the
population has access to quality food. The government policy emphasizes preventive health services including
nutrient or supplementary food provision at various community schools with the help of various donor agencies
but limited to some remote school and student thereon. There is no such provision for general public at large
and even quality education for those people about nutrient foods and basic hygienic factors are lacking in our
country.

Nepal’s first experiences with modernization of dairy began with the establishment of Diary Development
Corporation towards the end of the 19 th century. Despite this to this present day and time, almost 85% of the
population today, have had to rely on traditional supply of Yadav Pashupalan Farm products and in some
extend product imported from abroad. Nepal lags seriously behind almost all countries in the region in dealing
with quality products, especially in the specialties that involve advance technical infrastructure know-how.

Sr. No. Health Indicator Status as of F/Y 2053/54

1. Infant Mortality Rate (per 1000) 74.70
2. Child Mortality Rate (per 1000) 118.00
3. Total Fertility Rate (per woman) 4.58
4. Average Life Expectancy (in year) 56.10
5. Birth of Infant Below 2500 gm (in %) 0.00
6. Crude Mortality Rate (per 1000 population) 11.50
7. Crude Birth Rate (per 1000 population) 35.40
8. Basic Health Services accessibility (in % of people) 15.00

Non availability of quality nutrient food and lack of hygienic products contribute major portion of higher
mortality rate.

It is estimated that in 1991 there was no commercialization of agro products and almost all public depends upon
the product available at home and cows were grown at home for the purpose. There were no processed various
products as available these days. The products available were raw milk, curd, ghee only. With the change in
scenarios and modernization, people start depending on the product available with neighbor who is farming it.
Since last few decades, people start commercial farming and selling products at market and that also lack
modern technologies. Due to lack of proper mechanism, farmer at rural area is not getting suitable market for
their products whereas people at urban area are not getting quality products throughout the day.

The quality and hygienic products facilities available in the country as compared to other SAARC countries for
the year 2010 AD are highlighted below:

Country Total Production ('000 MT) Per Person Availability

Populations
(Million)
Milk Fish Pig Dairy Fish Pig
meat
Nepal 30.00 1,584.00 49.00 17.00 52.80 1.63 0.57
 India 1,224.60 1,17,000.00 7,845.00 332.00 95.54 6.41 0.27
Bangladesh 148.70 3,398.00 2,886.00 NA 22.85 19.41 0.00
Pakistan 173.60 35,491.00 684.00 NA 204.44 3.94 0.00
Sri Lanka 20.90 215.00 364.00 2.00 10.29 17.42 0.10
Bhutan 0.70 51.00 NA 1.00 72.86 0.00 1.43
Maldives 0.30 NA 117 NA 0.00 390 0.00
Afganistan 31.40 1,818.00 1.00 NA 57.90 0.03 0.00

In the approach paper of Ninth Plan (1997-2002) the role of private sector in meeting the country’s required
healthy manpower has been clearly recognized.

Recently, government authorities over the world are very much concern about the health of their citizen and
policies and programs are lunched. Minimum investment policy in agriculture sectors are laid down by the
government or central bank to motivate farmers or agriculture entrepreneur.

Demand and Supply Analysis

Demand Analysis

Quality and hygienic products is highly demanded, except in few major cities, there is no supply or storage of
products to cater the needs of people all over the days. In few major cities, there are proper storage facilities so
that products can be available at any time but such kinds of facilities are not available at each and every corner
of city. Even basic storage facilities are not available in other small cities, town or village. Due to such
limitation, either farmer has to sell products at very cheaper rate or have to destroy without selling.

In Nepal, there is lack of modern agro farms. Most of the agro farms are generalized. In present situation there
is great demand of following products, raw milk, curd, ghee, cottage cheese, cheese, butter, fish, pork meat,
goat meat etc.

Demands of agro farms are very high because of following reasons:

 Agro experts and general people can get job easily

 It is of high demand.
 Modernization of agro farm leads to get good profit.
 Food security is now the matter of world thinking and almost all countries are very much curious about
it.

Supply of Manpower in Nepal

There are seven public and private institutions involved in the production high level agricultural manpower in
the country. Of these, Institute of Agriculture and Animal Science, Rampur Campus is leading institute,
HICAST and CTEVTE are other institute providing quality education for agriculture and veterinary education.

A comparison between demand and supply situation of agro manpower shows that there is excess supply of
agro manpower that’s the reason, establishment of agro farms are essential at present. This Yadav Pashupalan
Farm proposes to employee some of excess manpower by setting up a modern agro farm at Kalaiya, Bara in the
South Eastern Region and work towards an increase in the annual supply capacity.

The opportunities available for agro farms in Nepal are inadequate to meet the growing needs of the country.
Huge foreign and domestic funding has been spent in the fiscal year 2070/71 to provide training to farmers and
donation to such farm for capacity build. All those training and donations is an indication of the demand of such
business in the country.
Notwithstanding the demand assessment from the data of the planners of the Nation, the following points may
be examined critically for assessing the feasibility of establishing an agro farm:

 The policy of Nepal Government to allow loan for agriculture sector at nominal rate to promoting
private sector in Nepal to establishes agro farms is the main points of decision making whereby it can
be concluded that agriculture sectors is the top priority sector for government to develop.
 Huge donations from other donor agencies working in the field of foods security is another factor of
conclusion about the establishment of agro farms in Nepal.

Income Generation

Income is the main factor of the organization. Sales of various products are the main source of income for the
farm, beside that sell of manure, gas and other byproduct would also contribute some share on income.

Facilities Analysis

The lifestyle of people becomes sophisticated due to modern technology and on same times life is complicated
as well due to non-availability of quality and hygienic food. People desire to get full satisfaction for their
money. The expectation of the people is normal. The farm should provide quality and hygienic products to the
public at affordable price. Facilities can be categorized into two parts.

Farm Gate Sale: It includes option of selling products at gate of farm.

Outlets Sale: Outlets could be opened at various locations where our products could be available at cheaper
rate.

To cover all types of public both the facilities are very essential. The farm is targeting higher as well as lower
income group. So it has to provide both facilities.

Marketing Strategy

Marketing is one of the main components of the development in the modern age. Marketing is the way of
providing knowledge of where about of the product of services. More effective the marketing, higher will be the
turn over.

The components of marketing can be various. Some of them, which are relevant, are as follows:

Advertising: Adverting means circulation of the information to the people at large, it can be done in many
ways:

 Bulletin: Yadav Pashupalan Farm bulletin should be standard and publicity cost will be collected from
various companies, the bulletin will be distributed to all dealer, retailers and general public apart from
agriculture & veterinary institute.
 Newspaper: Each and every new activity will be published in Newspaper.
 Audio/ Video: Audio and video will be used some times for new program and information.
 Health Camp.
 Hiring of reputed consultant and experts: Visiting consultant and experts will be called for special case
for some times.
 Tie up with foreign agro farm: For some program foreign agro farm will be tied up.
 Development of agro & dairy cooperatives.
 Opening of branches in other cities.
 Separate department for social welfare and coordination with international NGO.

Area of Marketing
The focus should be given to the components as per effectiveness. The farm should pay more attention towards
the area where there is more revenue and higher trend. The past data has revealed that age group of people and
festive season has large impact. During festival season, consumption of product is higher and marketing
strategy should be focused during that period. Keeping in this in mind farm will make an arrangement for
facilities suitable to this season.

Hotel, restaurants are other group where consumption is at higher side along with possibility of intensive
marketing.

Products for under privileged Children

The farm will have special wings for providing quality and hygienic products free of cost to under privileged
sick children at community.

The Mission

Support to the under privilege children of any community dedicated to improving the health of those children,
the mission is to provide the best family centered, compassionate care, to prepare the next generation of leaders
in child health,

The Vision

The wings established under farm will create, evaluate, apply and disseminate knowledge to improve the health
of children. The farm will lead in providing exemplary family centered care, innovation and discovery focusing
on those areas in which it can make the greatest contribution collaborating with other, it will become mal
nutrient free country in World.

The Values

The farm will believe that children should be provided with the highest quality and hygienic products that will
give opportunity for continuing improvement of their health.

Leadership and accountability

The agro farm will be accountable for the contribution to Yadav Pashupalan Farm’s mission of improving care
and the health of children, Individual and team members, the farm team are responsible for identifying
opportunities, initiating self-learning and persevering to improve health. Leadership at all levels will be
supported throughout farm.

Quality, Integrity and Advocacy

The farm conducts all endeavors – quality and hygienic production, education, research and the management of
the organization to the highest quality and with greatest personal and professional integrity. The farm will
dedicate to using special expertise to advocate on behalf of under privilege children.

Efficient Use of Resources

Increased financial independence and a stable funding base are essential to the fulfillment of the mission. The
farm deploys the resources effectively and efficiently at all level in the organization. The farm should be
committed to further developing and maintaining the fiscal strength of the farm for such children,

Standardization Analysis
The time has given birth to the technology. The farm will be equipped with the modern available equipment and
facilities. Farm must be well aware of the standard fixed for the category of the farm in the national and
international scenario. The standard will increase.

 Work performance of staff

 Quality of science
 Satisfaction to consumers
 Demand from market
 Confidence and trust of people towards the farm

Standard of the Farms

 Farm Lay out: Lay out of the farm should be according to international standard keeping in mind the
scientific way of growing animals. In the same time, utmost care should be taken for the employees
working around farm with respect to their health and work environment.
 Laboratory has to be standard (Tiles, waiting rooms, lighting): Laboratory is the place where the
experiment for checking quality of product, disease can be diagnosed. Therefore, it is mandatory to have
the standard lab in one good farm. It must have clean and safe waiting room. To create the trust of the
organization transparency is essential. Now whole seller or retailers are more aware of the fact. The
interior of the lab had to be made very scientifically so as to fulfill the motto viz. easy to work, easy
access. Well ventilated, waiting place, lighting, good and latest equipment has to be displayed properly.
There must be one computer and all the reports must be computerized.
 Guest waiting hall: The hall must be neat and clean and informative. One television set will be installed
which shows some entertainment program information regarding disease, health program and farm
information. Further, visual details of some best farms around the globe could also be displayed through
television installed there. Many people are not aware of the rules and regulations of the farm so it
advertises the farm. It would be the cheap and best advertising system as well.
 Home delivery facilities (Call center): Farm will provide additional facility to deliver product at home
around the farm and gradually provide such facilities at all major cities after establishing our own sales
outlet. Separate telephone number will give to the public and when public want, they will call and our
delivery person will deliver product at the address noted via call.
 Economic and Social Aspects
Economic and Social Impacts Out of the Project

Health

Production of quality and hygienic product contribute for excellent health of general public. There is one
proverb; health is wealth so our motto is to provide quality product at affordable price for good health.

Research Activities:

The project will have computer installed with a central network that helps efficient management of agro farm
and provides opportunity to research undertakings. Opportunity would be given to other research institute and
organization to conduct research on this subject. In house research center will be established for doing quality
research on the present livestock and possibility of acquiring hybrid livestock for maximum yield.

Employment

Altogether 7 persons will get direct and gainful employment implying indirect livelihood for about 100 to 200
family members as well as opportunities to thousands of persons through contractual services in gardening,
security, maintenance, housekeeping, washing, cleaning and myriad of other ancillary activities.

Social Impacts

Besides, the health of general public at large by Yadav Pashupalan Farm will largely benefit the local people
through affordable quality products at or near their doorsteps.

The project will greatly contribute to raise community awareness in preventive health problems, sanitation and
environment.

The project will cause establishment of lodges, trade and service outlets around in the vicinity thereby opening
up new avenues of employment and economic activities.

The village and rural community in the neighborhood will be greatly benefited by way of increased income
through sales of groceries, restaurant and cereals besides gaining opportunities of trade and shop keeping for
numerous other commodities and services in the vicinity.

A conspicuous offshoot of the project will be fostering of cross cultural harmony and friendship amongst the
Nepalese and foreign expertise and students.

There will be increasing globalization of business through new and novel knowledge inputs by way exchanges
and networking of new innovation, research, both nationally and intentionally.

Open up avenues of employment and farming to those Nepalese citizens who may be migrating to the India,
Middle east or other countries, due to lack of facilities in their home land.

Interaction with an International Community of farms would broaden the vision of the young agro entrepreneur
from Nepal which will go a long way in improving International Understanding.

The Tele-Communications., Electricity Authority and the Water Supply Department will earn revenues with
much higher average consumption rates.

The local Municipality as well as the Income Tax Department will earn applicable taxes. The project will also
contribute to road and air transport within and outside Nepal improving mobility and adding revenues to the
operators.
 SWOT Analysis

Strength:
 Yadav Pashupalan Farm is established by experienced person in the related field.
 The location, only fifteen minutes’ drive from the highway and 5 minute from heart of the city.
 The project is having its own land with complete & semi- complete buildings and physical
infrastructure. The project can commence its production in short time. It saves time and cost. This is
the comparative advantage of this project.
 The company has a professional core (Veterinary doctors, agriculture expert & financial expert) of
dedication and reputation, both nationally and internationally.
 The farm has been following the curriculum, norms and standards of farms that are comparable to those
of the reputed farms in the South and Southeast Asia.
 The concept of private quality products at very nominal rate gives it an added advantage.
 In Nepal, production to population ratio is very low. Therefore, there is a high demand of products.
 Unlike other ventures and enterprises including tourism, which is subject to seasonality and externality,
this farm is not vulnerable to periodic upturns and downturns.
 There is a growing captive market for products in the country.

Weakness:
 A highly professionals farm management system is yet to be installed and carried out in practice.
 Link road connection from the main road is beset with poor condition needing urgent ramming,
expanding, strengthening and asphalt paving.

Opportunities:
 If successfully run for five to eight years, this farm can turn itself into a full-fledged research center
with all its location, market and professional advantages.
 It can tap increasing number of populations from India and other South Asian countries and thereby
establish itself as a highly reputed farm of its kind in South Asia.

Threats:
 Day by day increase in farm has created cutthroat competition.
 Constant monitoring is needed to ensure quality production and best possible products without leaving
any room for human/ professional negligence and malpractice.
 It may lose some highly qualified professionals if the management is not alert enough to meet their
motivational needs.
 CONCLUSION AND RECOMMENDATION

Conclusion:

The demand of high quality product is highly demanded. By seeing the increasing trend of expensive and
unaffordable products imported from abroad, the economic but quality products are in top demand.

As the populations are increasing day by day and people needs quality products so the demand will increase day
by day. It proves that quality products of Yadav Pashupalan Farm Products are highly demanded.

Recommendation:

The study team, considering the market assessment and financial evaluation, is in the opinion to recommend for
the expansion of the krishi farm Kalaiya, Bara that is only 15 minutes’ drive from the high way. Further, the
team suggests operating full-fledged krishi farm having goat farming, buffalo farming and agriculture in the
same place. The team suggests doing proper marketing to get supply of products.