Details

Case

NAIMAT NATURALS: A JOURNEY IN DAIRY FARMING (A) (B)

M. Adeel Zaffar, Syed Zahoor Hassan

INDUSTRY : Agriculture

AREA :

ORGANIZATION :

LENGTH : 13

LUMS No : 13-102-2019-1

PUBLICATION YEAR : 2019

KEYWORDS:

dairy business, Agribusiness, cow fattening, crop cultivation, entrepreneurial venture

DESCRIPTION:

In January 2016, Tariq Zaman, Director of Naimat Naturals sat in his office in Lahore, wondering how he would ensure the financial sustainability of the venture he had worked so hard to nurture over the past 10 years where he finally had a profitable year. He operated a dairy farm on 50 acres with a herd of 200 animals (local buffalos and cows) and cultivated wheat and rice on another 200 acres near Shiekhupra. The company provided unprocessed natural milk, poultry, wheat and rice to its customers. Recently, it had also ventured into calf fattening and started offering Qurbani services on the occasion of Eid-ul-Azha.

LEARNING OBJECTIVES:

The participants should be able to: 1. Understand the challenges involved in running a profitable dairy farm as an entrepreneurial venture. These challenges relate to: a. The process of acquiring land for agriculture, b. The process of sourcing good quality animals for the dairy farm, c. Hiring and managing a sustainable labour force to manage the operations of the farm, d. Animal feed, yield and health management issues; e. Distribution related challenges of unprocessed milk in the light of price regulation and transportation costs 2. Understand the value of and challenges involved in managing other agri-projects alongside a dairy farm. These challenges relate to: a. The low margins associated with dairy that make it difficult to run a dairy business on its own; b. Synergies that can be leveraged in managing crop cultivation and cow fattening businesses.

SUBJECTS COVERED:

Agricultural Business