Wednesday December 07, 2022

Poultry industry project gets access to direct financing

By Our Correspondent
May 29, 2019

KARACHI: UK’s Department for International Development- (DFID) funded Karandaaz, in partnership with JSK Feeds Limited, has announced a program for improved access to finance for small businesses related to poultry/feed industry in Pakistan, a statement said on Tuesday.

The statement said the direct financing through a medium term loan would enable JSK Feeds to develop its supply chain by funding its small and medium-sized maize crop farmers to purchase farm inputs.

JSK, an associated concern of the Saif Group, currently procures a considerable portion of its raw material for poultry feed manufacturing from the small farmers, who are typically not considered credit worthy by the formal financial sector such as banks, it added.

The statement quoted Joanna Reid, Head of DFID Pakistan, as saying, “The UK believes that access to finance is a path to economic inclusion and reduction in poverty as well as economic growth for the country”.

Reid added that DFID Pakistan was committed to support inclusive economic growth, higher incomes and sustainable employment opportunities for people in Pakistan.

Jahangir Saifullah Khan, CEO JSK Feeds said, “JSK Feeds’ production unit is located in the Sahiwal Division which has over 40 percent of country’s population of ruminants and substantial number of poultry”.

“Our plant’s strategic location enables us to source the best raw materials and to deliver highest quality finished products to our customer’s doorstep in a time-saving and cost-effective way,” Khan added.

Navid Goraya, chief investment officer, Karandaaz Pakistan, said the loan to JSK Feeds Limited would cater to the financing needs of its farmers in the supply chain, who don’t have the means and the resources to obtain financing from the commercial banks due to their stringent financing requirements and collateral based lending models.

Poultry is one of the largest agro-based segment in the country, having an investment of more than Rs750 billion. The industry provides source of income to more than 1.5 million people of Pakistan directly and indirectly.