Engrofoods Dairy farm Nara report

1. REPORT ON ENGRO DAIRY FARM NARA
Group members
Mehwish Mustafa
Nousheen Fatima
Sidra Ahmad
Sidrat ul Muntiha
Soniya Mahpara
Yasmeen Talpur

2. Table of Contents
1. Introduction..................................................................3
2. Mission........................................................................ 4
3. Services........................................................................ 4
4. Visited areas……………................................................... 4
5. Animal housing & types.................................................5
6. Warehouse ...................................................................5
7. Workshop......................................................................6
8. Feed process area..........................................................6
9. Milking process.............................................................6
10.Nara house....................................................................7
11.Future target.................................................................7
12.Organizational structure................................................8
13.Safety measures.............................................................8
14.Supply chain………………..................................................10
15.Difference between traditional & Engro dairy farm........10
16.Swot of traditional & Engro............................................11-12
17.Observation and suggestion…………………………………………13
18.Reference...................................................................... 14

3. Introduction
Milk is most consumable food item having 4 hours life at certain room temperature .Pakistan is
3rd leading milk producing country in the world with more than 47 billion litters’ production
and 11.30% contribution in GDP and a milk economy that in value terms is 27.7% of the total
agriculture. According to analysts the milk production is expected to grow at 2% annually,
however the processed industry is only 7% of operated milk. The milk, remaining wastages and
farmer preservation is 20.7 billion liters of which 1.4 billion goes into processing and the rest is
sold as a commodity in retail outlets and through door to door Gawala system. So, there is an
immense prospect and +prospective to grow the process milk business
Engro Dairy Farm is the First Dairy Farm in Pakistan located in a desert area nara Taluka
Salehpat District Sukkur (80km from Sukkur City).Its ground breaking ceremony was performed
by Syed Khursheed Ahmed Shah on 24 may 2008 and the project execution phase 1 was
completed in October 2008 with the arrival of imported animals 2008.There are 33 permanent
and contractual employees working in dairy farm.
Total area occupied by farm is 567 acre out of which 220 acre is purchased land and 347 acre is
on lease.347 acre land is used for the cultivation of crops which are then processed and used as
feed for cows where as 220 acre is farm area.
Breeds of cows surviving in Engro dairy farm are JERSEY and FRIESIAN where as holstein
breed (which is better than both of them) is not available there because they can not survive in
Nara’s weather conditions. Total number of animals in the farm is 4300 (200 per yard). The
average production of milk per cow is about 26 liter and total production per day is about
43000 liter.
Engro dairy farm Nara is certified different standards.Such as
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)
DuPont (a safety standard applied at Human and Animal at any Farm or Plant)

4. The current DuPont rating is 3.6, this successful DuPont compliance audit was conducted by
Canadian visitors
The whole structure of the farm is consist of animal housing, warehouse, workshop, power
plant, feed process area, admin office, assembly ground, milking parlor and Nara house for their
employees.
Mission
Mission of Engro dairy farm is To be the one stop shop for the Farmers. To work with the best
companies in the world and to bring best quality products at best price from all over the world
for our farmer
Services they provide
Dairy Solution provides the following products and services to the Dairy industry:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Site Acquisition and designing
Complete Civil works
Supply of Cubicles and Head Locks
Supply of Animals
Supply of Agri Machinery
Supply & Installation of Milking machines/parlors
Supply & Installation of Milk cooling Tanks
Supply & Installation of Single/Double Milk Bucket machines
Supply & Installation of Milk processing machinery (Pastuerizer, Homogenizer, Cream
separator)
10. Supply of CIP Chemicals
11. Supply of Teat Dips and Hoof care products
12. Supply of disinfectants
Areas we visited:
Animal housing
ware house
workshop
power plant
feed process area
milking parlor
admin office

5. assembly ground
Nara house for their employees.
Animal Housing
There are three types of animal housing
1. Free stall
2. Saudi barn
3. Corral system
1. Free Stall
Free stall is the recommended system for successful dairy farming. Here cows are kept free
except at the time of milking. Resting area is divided into stall or cubical. cows are not
restrained in the resting area (free stall / cubical) and are free to enter, lie down, rise up, and
leave the stall whenever they desire.
2. Saudi Barn
It is a standard indoor housing in temperate where there is proper ventilation system and having lower
heat stress. A common plan is to have animals housed on the ground where they can freely move and
interact with other animals. Here the cows are tied in stanchions and milked on the spot or roam free and
are milked in a parlor.
3. Corral system
Another form of animal housing where cows can freely move outside the shelter. Purpose of
this system is to have sun light over every area within corral.
In Engro Dairy farm, there is Saudi barn system and corral system where as free stall system is totally
absent there and it is not planned to use free stall in future due to its high. There are 4 total Saudi barn
placed in the farm where corral in more than Saudi barn. There will be an increment in the number of
Saudi barn in future.
Ware house
There were NIP (non productive items) and machine spare parts available in ware house where as many
bags of wheat were placed outside the ware house. The items available in ware house are:
Yea Sec
Mineral Mixture
Spray Fo

6. Maize Seeds
DCP
Magnesium Sulphate
Sprayfo Blue
Micro sorb
Fy Brozyme
Ammonium Chloride
Mycosorab
Note: Another covered ware house is construted there
WORKSHOP
There are about 20 workers working in workshop for the maintainance of machinery and
tractor parts
Power plant:
Engro dairy farm has its own power plant where they generate electricity for the whole plant
total electricity is generated about 650KV (kilo volt). According to Amjad farooq bhatti
(engineer manager) they will try to generate electricity by using bio gas & solar system in 2014.
Feed process area:
Here Yard wise aggregation is done and for that TMR mixture machine is used.For chopping and
delivery of yard jaylor and keenan machines are used. both machines are used for same
purpose, the difference between them is just their dimensions ( horizontal and vertical) in
chopping process. Feed is provided to cows three times a day.
Milking process at engro dairy farm
Animal Milking is directly proportional to animal feed intake, feed them well they will produce
well. Animals are very sensitive to its surrounding, pleasant weather improves their milking.
Heat stress, bed bedding for living decreases outcomes.
Milking cycle starts from calving….
Normally cows have 6 milking lactations. In early lactations they increase their milking capacity,
in the middle lactations they go their maximum outputs and in the end lactations they again
start decreasing milk.

7. Milking parlor:
Milking parlor is a place where cows stand on an elevated platform at a 90-degree angle facing
away from the operating area. Access to the udder is between the rear legs, which reduces
visibility of the front quarters and can make unit attachment and udder sanitation more difficult.
A partitioning door that swings when a cow enters the milking stall opens the adjacent milking
stall for the next cow. In most parlors, the gates overlap, to prevent the cows from entering the
milking stall beforehand. As a cow enters the parlor, there is no milking stall available to enter,
except the last one in the line.
Some of the process that we have seen at engro dairy farm:
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3 people handling 32 animals at a time in milking parlor.
Lactations cleaned with hygiene tissues.
6 minutes are required for milking of 32 animals.
GEA technology is used take a full measurement of animal as weight milking capacity,
destination of diseases used in milking parlor.
 Not only GEA but DILAWALA technology used as well in milking parlors
Nara House
Engro Dairy farm is also facilitating its employees by providing them comfortable housing
facilities.
Future Targets of Engro Dairy farm
700 herd of animals will be covered in future
2 units of dairy farm will be launched in Punjab
Bio Gas and solar system will be used for power generation
There will be increment in sudi barn housing system

8. Organizational structure of engro dairy farm at Nara
Farm Maneger
(Syed Rizwan
Bukhari)
Admin services
Croping
(Mr.Zahid Qazi)
( Mr.Mumtaz)
Engneering
Live Stock
(Mr. Amjad
Farooq Bhatti)
(Mr.Fayaz
ahmed)
HR
Civil
Vetenary
Doctors
Procurement
Mechanical
Quality
Assurance
Finance and
accounts
Electrical
Supply Chain
 Sap software used over their in the procurement block for purchasing
raw materials.
 There is no any inventory stock they order their inventory as per
demand on the basis of farm requirement.
 Standard operating process (SOP) comprises on FPR and LPR.
 Where LPR stand for local purchase requisition And
 FPR stand for foreign purchase requisition.

9. Safety Meaures
Safety is the most efficient and effective perfoming department at engro that actually differs it
from other industries. Engro is not only providing safe environment to animals where they can
survive but it also provides safe conditions to its employees for work. For this purpose each job
has given its own SOP’s (standard operating Procedures).
Safety measures in engro dairy farm
Reporting on accidents
Eating is not allowed in warehouses and in operational area
Burning of flame is not allowed
Vehicle speed in Farm area is 15km/hour
Mobile phones are prohibited to attend during climbing upstairs
Safety gadgets (wind socks and emergency siren) are placed in farm for emergency
Fire extinguisher are placed in each area in the farm
Emergency responses in engro NARA dairy farm
In case of any emergency, every one has to gather in assembly area after listening siren.
Some instruments of safety that we have seen at farm

10. PAKISTAN DAIRY SECTOR
In Pakistan livestock includes cattle buffalo, sheep, goat, camels etc
Pakistan is fourth largest milk producing country in the world
In Pakistan modern milk processing in dairy sector started in 1960 and by mid - 1970
Supply chain of engro dairy farm NARA
FEEDING
MILKING

11. PROCESSING
DISTRIBUTION
PROCESSING
PACKAGING
Traditional dairy farm
Traditional dairy farm milking process:
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No hygiene safety
Manually milking
Used steel trunks(Balti)for transferring the milk from one place to another place
No lactation cleaning
Require more time for milking
No destination of diseases
Modern Dairy Farm
Modern dairy farm milking process
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hygiene safety
Milking through Machinery
Use Cylos for storing milk
Use tankers for transferring milk from one place to another
Proper Lactation Cleaning
Milking process is completed within few minutes
Proper care of cows
Proper vaccination of animals

12. SWOT analyses of traditional dairy farm
Strengths
Weaknesses
Dairy sector is having enormous potential for
sizeable earnings
Pakistan is having wide scope of Milk
Production
Dairy sector in Sindh is having low cost of
production
Sindhi culture is having long tradition of cattle
and livestock rearing
Large base of cattle for milk production
Relatively small dairy cattle milk production
market
Chronic lack of improved, adapted dairy cows
Unorganized sector, unaware of basic farm
management practices including record
keeping,
farm/ market infrastructures & marketing
information
Enormous production losses due to diseases
Lack of education, technical skills, initiative
and experience
Adoption of traditional approach
Milk losses are very high estimated at 40 kg
per capita per year
Obsolete equipment and technologies
Opportunities
Threats
High risks of diseases in live stock
Increasing demand of value added dairy
Defective and unorganized markets
products
Imbalance between prices of inputs & outputs
Local and global dairy products needs are
Lack of community organizations and out
much higher than supply
dated farm practices
Cooperatives can play a big role for
Lack of towards common causes & goals
development of dairy sector in Sindh as well as Lack of awareness
govt:
Dairy sector provides raw material for food &
leather industry

13. SWOT analysis of engro dairy farm NARA
Strengths
Efficient milk collection system
Better integrated distribution and warehousing
facilities
Qualified and trained work force
Suitable climate condition for animals
Sophisticated infrastructure
Use of innovative technology
Maintained temperature for whole year
Trained animals
Automated milking system
Weaknesses
Having only one its own dairy farm
High milk collection and distribution cost
Nestle and Haleeb foods much diversified
company having diversified product line
It is a local based company
Less promotion activities
Opportunities
Threats
Awareness of tetra packed milk in everyone
Export opportunities
Having capabilities of expanding into other
markets of the world
Merge with global company
Open another dairy farm in other area of
Pakistan
Seasonal factors ;
- Climate condition
- Warm climate of desert
Very much distance from engro foods
Market share of competitors increasing day by
day
Observations:
It was very nice experience to be at engro dairy farm nara, to see such a modern dairy farm in
this locality,progressing so rapidly within the shortest period of time. Environment was very
controlled and each activity was done in very proper and systematic way. safety acts were very
attractive their.
Suggestion:
1. Demand is increasing day by day so products should be increases.
2. Anti bacterial shower on peoples should be showered in the exit time.
3. There should be free barn system for animals housing if possible
The challenge for all producers is to improve dairy profitability while facing the uncertainty of
fluctuating milk prices. It is true that larger dairy operations specialized in producing milk can be
more efficient and profitable than smaller ones. This is due to economies of scale, where fixed
costs are spread out over more cows and feed costs can be lowered with the advantage of

14. quantity purchasing. In addition, larger herds tend to have higher milk production per cow.It is
essential that the dairy producer has a record system in place to analyze and monitor various
business performance parameters. This allows the operator/manager to identify the strengths and
weaknesses, and know where changes are needed to improve profitability. The financial record
system must be able to separate out information by enterprise.
reference
All the above Information was gathered from following people
Mr. Ahmad Hassan Usmani
Mr. Syed Rizwan Ahmad Bukhari
Mr. Amjad Farooq Bhatti