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USAID PEEP Project
Component 3: Bankable Feasibility Study for Feedlot Fattening
Scope of Work
Short Term Consultant–Feedlot Fattening Expert
1. Scope of Work Summary:
Chemonics International is executing USAID funded Punjab Enabling Environment Project (PEEP).
The project is working in partnership with Punjab’s public and private sector, sector organizations and
academia to create a business enabling environment that is conducive to the Investments in Agriculture
in Punjab, particularly in Livestock, Dairy and Horticulture sub-sectors.
USAID-Punjab Enabling Environment Project (PEEP) requires services of a short term consultant with
expertise in Feedlot Fattening business, to develop a detailed bankable feasibility study for feedlot
fattening farm of optimal size for potential new investors or existing investors interested in scaling-up
the business size in province of Punjab.
2. Background:
The livestock sector occupies a unique position in the national agenda of economic development. It is
one of the most important subsectors of agriculture and bears great significance in the national economy
by contributing 11.8 % to the GDP and accounting for 55.9% of agriculture value added. A thriving
livestock industry has far reaching effects on the welfare of rural masses.
One of the major objectives of the USAID-Punjab Enabling Environment Project (PEEP) is to spur new
investments in the Livestock sector through business enabling environment and by facilitating the new
and existing investors to invest in new projects or scale-up current investments in Feedlot Fattening
farms; through provision of bankable feasibilities that would encompass the operational and financial
viability of investment opportunities along with other necessary information that is required to take
investment decisions.
In this backdrop, USAID PEEP intends to hire services of a short term national consultant to develop a
bankable feasibility report for both large and small ruminant that can help potential investors to take
investment decisions to set up new feedlot fattening ventures or expand the existing ones. The
consultant will address all associated aspects, including but not limited to optimal business model of a
fattening farm, human resources requirement, financial requirements and profitability, marketing and
operational challenges, and associated risks enabling potential investors to take well informed decision
of investment in feedlot fattening business to get best value of money.
For the subject assignment, the consultant will identify the optimal size of a feedlot fattening farm after
conducting a comparative analysis along with providing the specifications and costs of major layout
required for animal housing / building, and of accessories and equipment and systems for adopting good
farm practices in compliance to international certifications. The consultant will consult existing feedlot
farmers located in different regions of Punjab and will prepare table of input costs (fixed and variable),
assumptions in the form of an excel sheet for financial analysis from Bank’s lending point of view.
The consultant will work under the guidance and supervision of Chief of Party, Livestock and
Investment Specialists of USAID PEEP.
3. Objective and Purpose of the Consultancy:
The overall objective of this assignment is to develop a comprehensive bankable feasibility study with
complete qualitative and quantitative analysis of the feedlot farming business in the province of Punjab
that would form the basis of an investment decision by private sector entrepreneurs. The document will
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encompass banking requirements for lending scheme in feedlot fattening business. In order to serve this
objective, the document will cover all the important assumptions of feedlot fattening farm development,
start-up, processing, financial (ROI, NPV, IRR) and business management. The document will also
provide information about sector, farm management, relevant links to animals/products/services
providers, and brief on relevant prevailing government policies as well as national and international
drivers that can inhibit or promote growth of livestock sector, which may have bearing on the proposed
projects.
The feasibility study will be available in the soft form enabling PEEP staff to do financial analysis at
any point in time with change in input assumptions.
4. Principal Duties & Responsibilities:
1. Kick off meeting with USAID PEEP relevant staff to understand clearly the expectations and
scope of the assignment.
2. Chalk out the work plan and the timeline of the assignment, for the approval of USAID PEEP.
3. Review and report of available studies on Feedlot Fattening and Calf raising studies by different
organizations.
4. Meeting with 3/4 relevant banks for listing down and reporting their requirements for Fattening
project financings
5. Meeting with technical experts of University of Veterinary and Animal Sciences (UVAS),
Punjab Agriculture and Meat Company (PAMCO), Punjab Livestock & Dairy Development
Board (PLDDB), Small & Medium Enterprises Development Authority (SMEDA), Punjab
Halal Development Agency (PHDA), Livestock and Dairy Development Department,
Government of Punjab and other relevant organizations, involved in feedlot fattening projects.
6. Meeting with relevant Feedlot Farmers already involved in the fattening business in Punjab
7. Meeting with Feed and silage producers / suppliers
8. Review of major livestock mandis (markets) and their dynamics in Punjab for collecting
information on sourcing of animals for fattening
9. Conduct a background research and collect data / information necessary to develop the
feasibility document, with required details of information, addressing all required aspects of the
business venture taking into account all factors at national and international level that can affect
directly or indirectly the feedlot business in Punjab.
10. Update USAID PEEP regularly about the progress and challenges being faced.
5. Specific Tasks of the Consultant:
The consultant shall use his / her education, experience, competencies, and skills to accomplish the
following tasks, grouped into the following major areas:
a) Sector Analysis:
A short sector analysis, encompassing the following with analysis and cogent justification for a project
based in province of Punjab. Both large and small ruminant livestock for beef and mutton will be
covered in entire analysis in the feasibility study.
 Short sector profile SWOT analysis
 Emerging trends in meat sector considering the value chain
b) Market Information:
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Market Potential, size of local market and potential of export (quantitative analysis of
major segments and their market share) of mutton and beef
Market Entry and Exit barriers at national and international levels
Major players and competition in the meat sector
c) Details of Business Venture
 Opportunity Rationale
 Legal Status
 Project Investment
 Proposed Locations/zones
 Key Success Factors
d) Farm facilities, structure and equipment
 Determine best suitable optimal fattening farm size in small, medium and large
category for large and small ruminants separately, taking into account procurement
cost, fattening cost, sales price, availability of human resources, compliance of
international standards, etc.
 The detailed analysis of identified feedlot farms size (small, medium and large) for
large and small ruminants
 Capital cost, operational cost, depreciation, for different sizes of farms
 For each category, identify the construction and civil work requirements, and develop
a list of major equipment, machines, accessories that will be required for feedlot
operation, along with rough cost estimate of each
 Animal Housing (provide an ideal project’s layout, indicating major portions, with
estimate of covered area of civil work / sheds / building and costs) for each category
e) Farm Inputs
 Land & Labor
 Land Requirement for both building, farm and fodder cultivation
 Labor Requirement
 Electric Power Requirements
 Suitable Locations in the province of Punjab
 Animal species and breed with preferred age and weight
f) Farm Outputs
 Fattening Period
 Targeted weight gains
 Meat Composition
 Increase in weight gains vs feed intake (Feed conversion Ratio-FCR)
 Sale Price
g) Feed / Vaccination Requirements
 Detail of feed requirements / silage / fodder production
 Ration for Calf Fattening / sheep and goat fattening
 Fodder Production and conservation Economics
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Daily Feed and Fodder requirement using feed balance approach for achieving targeted
body weight
Vaccination & Medication against common and most prevalent diseases
h) Financial Analysis and profitability
 Calculate Net Present Value (NPV), Rate of Investment (ROI), Internal Rate of Return
(IRR) and other financial analysis that can help take investment decision
 The feasibility report will provide financial assumptions and profitability ratios
calculations of fixed and variable costs in excel sheet form, enabling PEEP staff to
calculate the latest prices with updating the assumptions.
i) Key Assumptions
 Financial
 Revenue
 Expense
 Economic
 Cash flow
j) List of suitable Linkages in private & public sector
 List of suitable linkages in public and private sector stockholders in Punjab including
the animal suppliers, fattening farmers, BDS providers, Inputs providers, meat
processors/exporters and academia, useful for new business start-ups.
k) Risks
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Operational,
Marketing, and
Financial risks and mitigation strategy, if any
6. Deliverables:
The following are the key deliverables of this consultancy:
I.
II.
III.
IV.
Inception Report including detailed Work plan for the required feasibility study
Report encompassing all the elements of proposed study with required details
Financial Model in Excel format to generate projected financial statements under varying
assumptions and perform sensitivity analysis.
Preparation and delivery of presentation to USAID PEEP Stakeholders
7. Job Qualifications
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PhD / Masters in Animal Sciences / Agriculture Economics / Business Administration
or any related field.
A minimum of five years of work experience in feedlot fattening consultancy or farm
management or in organization related to meat processing and trade.
Well versed with national and international standards, regulations and compliance
regime prevailing for the Feedlot Fattening and Meat sector
Strong analytical and writing skills, and experience of presenting complex technical
information in a comprehensive way for non-technical readers
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Good communication skills and fluency in English and Urdu
8. Duty Station:
The assignment is based in Lahore. However, the consultant is required to meet professionals, visit
farms at locations out of Lahore but within Punjab.
9. Reporting:
The consultant will report to the COP of USAID-PEEP whereas Investment Specialist and Livestock
Specialists will be focal persons for day to day work plan coordination and arranging meetings as and
when required. The report is required in printed as well as soft form (CD, Email), with all rights and
privileges for use of data by USAID PEEP.
Kick off meeting at the start of the assignment, 2nd meeting after 10 days, 3rd meeting after 20 days and
final meeting on completion of the assignment.
10. Level of Effort (LOE):
The consultant will have 30 days LOE for completion of this feasibility study.
11. Duration of the Assignment:
This assignment is planned to start around June 15, 2015.