Purpose & Scope:

The product is introduced since livestock sector occupies significant position in our rural as well as national economy. It is the main source of food, income, employment and foreign exchange earnings contributing 14% to GDP. The Government of Pakistan and SBP has decided to promote this sector. The production of livestock sector needs to be increased substantially through the adoption of modern processing techniques and commercial marketing channels. The development of livestock sector requires financial support in the form of agriculture credit from financial institutions. It may include direct financing to the farmers or in the form of indirect financing through milk/meat processing units etc. Financing shall facilitate dairy farmers in availing formal credit for entire value chain dairy sector. SBP has conveyed PBA advised product features for extending finance to dairy value Chain. For women empowerment, concessional finance under SBP refinance scheme can also be considered as per applicable procedures and prevailing rates.

Salient Features:

Dairy and Meat Sector are major contributor to agri GDP and have varied needs to be met through institutional credit. The dairy and meat farms need financing facilities for their daily expenses i.e. working capital requirements and long term investment for purchase of buffalos, cows, goats, sheep, dairy and meat farms equipments, construction of sheds etc. The financing facilities may be considered under the dairy and meat Finance in the shape of;

• Working capital
• Term financing

Working Capital Financing:

To meet day to day expenses covering working capital need, mainly the following:

• Purchase and plantation of animal fodder and feeds, feed grinders, tokas, feed mixing machines and feed/milk containers.
• Vaccinations, vitamins and other medications for animals including artificial insemination.
• Overhead expenses i.e. labour electricity/fuel.
• Utensils for animal feeding, calf feeders, bangles, rope/iron chains.
• Concentrate like cotton seed, cotton seed cake, other additional expenditure, distribution cost, transportation charges on farm milk processing, pasteurization, standardization.
• To finance receivables against deferred payment vouchers issued by milk processing units, sweets shops and meat processors/traders/exporters having relationship with the bank and having good credit worthiness.

Term Financing:

Could be provided for the purposes of:

• Purchase of mature milk yielding buffaloes/cows.
• Replacement of existing buffaloes/cows.
• Purchase of young buffaloes/cows/sheep & goats for rearing for meat production.
• Purchase of young animal/female heifers aged 3 to 4 years.
• Milk storage chilling tanks/refrigeration plants and milk carrying containers.
• Refrigerated meat storages and refrigerated containers.
• Distribution vehicles such as motorcycles, pickups & refrigerated vans etc.
• Construction/procurement of permanent sheds, water tanks, water pumps, tube wells and generators.
• Fencing and Enclosures.
• Establishment of slaughter houses (abattoirs).
• For processing of livestock byproducts, such as animal casing/gelatin units, bone processing units rendering plants etc.

Any other requirement of allied nature can also be considered.