DAY WISE CONTRIBUTION & INVOLVEMENT FOR THE

DEVELOPMENT MMO AND SHEARING TEAM

MODULE:
11th April 2015

In a telephonic conversation on 10th April Dr. Rob asked to meet him at Serena
Hotel. Where we discussed in detail about the business shearing team
organization. The background and where the idea was kept from and it
can be possible to implement in Balochistan.

Background
The introduction of mechanical shearing for wool harvesting by Grant Vinning
in 2012 following the Australian model heralded the beginning of a new era for
the wool industry in Pakistan. It promises a revolution which will release up to
1 million traditional sheep farmers from extreme poverty in Balochistan, and
give them an annual new income per farmer (average 60 -70 sheep) of around
$2.00 per day, (which compares with <50 cents per day now).
Traditional shearing with hand clippers produces low value wool with variable
staple length which is usually rejected by the milling industry, and the annual
production has largely been discarded as a useless by product of sheep meat
production. This valuable resource is now being made available and offers
extraordinary potential gains for the many sheep growers of the remote areas of
Balochistan.
Through the training of Project shearers by Australian master shearers, both in
Australia and in Balochistan, expertise in the art of shearing has been
accumulated to the extent that there are 8 master shearers and some 60
trained shearers now available in Balochistan. Trialling of various machinery
and equipment continues but has led to purchase of economical Chinese
mechanical shears and shearing equipment, which are now available in
Pakistan from local retailers. Work continues to identify suitable small scale
balers (40 Kg) to reduce volume and save transport costs. Large bales as used
in Australia have been found to be too unwieldy for manual handling.
The construction of 4 stand mobile shearing sheds that have a steel frame and
mounted on wheels, enables movement by tractor from village to village, and
small portable petrol generators provide power. Trials with solar power and
battery storage proved unsatisfactory for the large scale shearing demand. At
present 5 mobile sheds have been constructed, and an additional 2 will be built
and used this season (2015). Training in maintenance, particularly sharpening
combs and cutters on a flat wheel grinder has produced a pool of shearers who
are able to do this expert work. Sheep with high dust loads in their fleece
characterise Balochistan flocks, and despite washing of sheep prior to shearing,
wear on the cutting surfaces due to the abrasive dust is high, necessitating
more frequent sharpening than is commonly the case in Australia and
elsewhere.
But early market research has shown that demand for the (relatively) clean,
white fleece wool with an even staple length (the length of the wool from the
back and sides of the sheep), is very high. Grading provides wool of consistent
type, and off grades are put into separate packages and may be sold for lower
prices. Any coloured wool, black fleece etc is rejected . One miller alone has
indicated he would be willing to buy “all the wool in Balochistan”.
Millers are very prepared to buy the wool directly at the shearing shed from
flock owners, and pay in cash. This level of demand may mean there is
considerable room for improvement in price, and this is also reinforced by the
fact that millers buy some wool imported from India and even Australia for
multiples of the Rs 100 to Rs 150 per Kg price being paid in the village in
Balochistan. Up to Rs480 per Kg has been paid for good quality fleece wool
delivered to mills in Lahore. There are plans to introduce objective
measurement of quality and sale by sample direct to millers. Increasing
sophistication of the industry is expected to occur over time.
Given that there are some 13 million sheep in the Balochistan Province, which
would be likely to produce at least 1 Kg fleece wool/yr on average (some
measures of shearing average 1.75 Kg per sheep, others over 2 Kg), there is
potentially a lot of wool available for production. Conservative estimates of
overall potential are for annual sales of US$11m up to $22m pa. Indications are
that an export of some exporting of the Provincial clip would be likely. Total
revenue to flock owners could total over Rs15 billion per annumof new income
per year from the initiative proposed below, and much more in due course.
SHEARING TEAM ORGANISATIONS – Adopting Australian Ideas in Pakistan
The BAP Project has established many Farmers Marketing Groups (FMC’s)
comprising both men and women FMC’s, to deal with wool sale and production.
The women’s FMC’s have acquired spinning wheels and looms, and are trained
(some in Australia) in producing value added spooled thread and woven
products. Production is already generating new incomes for these women.
But the shearing operation relates to sale of a service: that of shearing sheep.
The FMC model relates to farmers marketing their product. These are critical
differences.
Accordingly, we should be informed by the organisational structure, the “model”
of wool harvesting operations in other countries, particularly Australia with
which the Consultant is familiar.
In Australia, typically the sheep, particularly on the larger properties, are shorn
by teams of shearers who are employed by a Contractor, who is a “sole trader”,
though they may have a Company. He usually travels round the sheep
properties before the shearing season, and signs a contract with the sheep
owner to shear their sheep. Arrangements contracted include prices, dates for
the work, arrangements for stopping work if there is rain (wet sheep cannot be
sheared), accommodation (usually provided by the sheep grower, as the
distance to a town may be great), and hours of work, usually an 8 hour working
day.
The sheep shearing contractor provides a “team” including: shearers, a cook, a
“rouseabout” who sweeps up and has general duties, and perhaps an “expert”
who maintains the equipment including sharpening the combs and cutters, and
in the case of large scale operations, there may be a “wool classer” who grades
the wool and supervises the operation of the shearing shed. If there is no
classer, the contractor will manage and supervise all operations. The sheep
owner provides the shearing shed complete with all equipment apart from the
actual shears, which are provided and owned by each shearer usually, and will
be powered by the equipment in the shearing shed.
The contractor will recruit and pay the shearers, provide food and possibly
transport, and manage a schedule of operation. The rate paid to shearers is
based on the number of sheep they shear.He or she (and there many female
shearers) will be paid a minimum of the “pastoral award” rate, currently up to
AUD $280 per hundred sheep. The best Australian shearers will shear some
300 sheep per day. There are many immigrant shearers who spend part of each
year in Australia on temporary work visas.
Australian regulations ensure workplace health and safety, and conditions for
all the contractors’ employees, such as compulsory insurance and
superannuation cover, and regular work breaks including morning and
afternoon tea (called “smoko”). There are many variations of these
arrangements, which are often supplemented by the sheep owner with their
own labour to do some part of the operation.

about the sh I have met him at Serena on above mentioned date and detail
discussed on shearing team organization on following points:

 Discussed about the complete working plan, Team, Management,

Operations and Cash flow.
 Asked about my inputs regarding Book keeping and simple accounting
system for shearing team organization.

15th April 2015

I have completed all above task and Email to Dr. Rob for checking. On a same
day he Email me the schedule of MMO’s Workshop which was going to be
held on 20th & 21st April 2015.He also send me the English & Urdu
version of FMC module and asked me to modify them and printed for the
workshop and instructed me to stay in touch with him about the
progress.

15th to 19th April 2015

 As directed by Dr.Rob I have made the necessary changes on the module.

 Submitted the fair and mentioned the necessary changes which I have
made in the module for his approval.

 After final approval print the module in my own supervision.

 Finally handed over all the printed modules in to Dr.Rob on 19 th April

2015.

20th April 2015

Attended the Day-1 MMO’s Workshop at Serena hotel and delivered the lecture
on Records, Documents and Accounts.

21st April 2015

Attended the Day-2 MMO’s workshop and delivered the lecture on Book
Keeping, Cash Book, Receipt system and transparent financial
management.

22nd April 2015

I have Email the finalized version of Shearing Team Organization with an input
of statement regarding book keeping system, Advantages of book
keeping, Income & expenditure, Profit & loss and all the accounting
formats which may support to run the shearing team organization.

(All the documents & E-mails are hereby attached for ready references)