buffalo dairy farm project report 10 buffaloes page 2

Project cost and bank loan Cost. In Rs.
Capital cost
Low cost Shed for 10buffaloes  50sq.ft/Buffalo @120/sqft 60000
Low cost Calf pen for 2 calves 20 sq.ft./calf @120/sq.ft. 24000
Cost of 10 graded murrah buffaloes with minimum average 10liter milk yield 10 liter /day @50000/buffalo including transportation 500000
Cost of dairy appliances @ 1000/buffalo 10000
Cost of one chaff cutter 25000
Total 619000
Recurring cost to be capitalized
Cost of feed for first batch of  five  buffaloes for one month as per feed chart 14700
Cost of insurance  2 animals @5% of animal cost 25000
Cost of fodder cultivation in 2acres of land for first session 20000
Cost of medicine vaccine, electricity for the first five  buffaloes 5000
Labour charge  of one labour for one month 6000
Contingency 10300
Total recurring expenditure 81000
TOTAL PROJECT COST

 

600000
Margin money 25% of project cost 150000
Bank loan 75% of project cost 450000
CASH FLOW ANALYSIS
Particulars Project period
1 2 3 4 5 6
Feeding during lactation period vide yearly lactation days and feed cost as per chart 210700 240100 225400 205800 205800 225400
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 24200 50600 57200 66000 66000 57200
Medicine vaccine veterinary aid 10000 10000 10000 10000 10000 10000
Insurance @5% of animal cost /year 25000 25000 25000 25000 25000 25000
Cost of fodder cultivation 20000 20000 20000 20000 20000 20000
Labour charge 72000 72000 72000 72000 72000 72000
Total 361900 417700 409600 398800 398800 409600
INCOME
Sale  of milk @Rs.31/liter during lactation days with average milk yield /10  liter/day 666500 759500 713000 651000 651000 713000
Sale of gunny bags 2550 3150 3050 2900 2900 3050
Manure will be utilized in own farm
Value of closing stock of  10buffaloes

(Depreciation on animal cost @10%/year)

200000
Value of building

(Depreciation on building@10%/year)

33600
Value of equipment

(Depreciation on equipment @15%/year)

3500
Total income 669050 762650 716050 653900 653900 953150
Gross profit 307150 344950 306450 255100 255100 543550
Calculation of BCR and IRR
1 2 3 4 5 6
Capital Costs 619000
Recurring Cost 361900 417700 409600 398800 398800 409600
Total Costs 980900 417700 409600 398800 398800 409600
Benefit 669050 762650 716050 653900 653900 953150
Net Benefit -311850 344950 306450 255100 255100 543550
Sl no Financial indicators Estimated value Preferred value
1. PW costs @ 15%DF 2041487.04
2. PW benifits @ 15%DF 2775850.90
3. Net Present Worth (NPW 734363.86 Should be+ve
4. Benefit Cost Ratio(BCR) 1.359:1 >1
5. Internal Rate of return (IRR) 48.04 >15%
6. Debt Service Coverage Ratio 2.99 >1.5

Bank loan 45000 grace period 6 months Loan amount at the end of grace period =450000+27000=477000

S.No Monthly Installment Interest Principal Balance
0 477000
1 9325 4770 4555 472445
2 9325 4724 4601 467844
3 9325 4678 4647 463197
4 9325 4632 4693 458503
5 9325 4585 4740 453763
6 9325 4538 4788 448975
7 9325 4490 4836 444139
8 9325 4441 4884 439255
9 9325 4393 4933 434322
10 9325 4343 4982 429340
11 9325 4293 5032 424308
12 9325 4243 5082 419226
13 9325 4192 5133 414092
14 9325 4141 5185 408908
15 9325 4089 5236 403672
16 9325 4037 5289 398383
17 9325 3984 5342 393041
18 9325 3930 5395 387646
19 9325 3876 5449 382197
20 9325 3822 5503 376694
21 9325 3767 5559 371135
22 9325 3711 5614 365521
23 9325 3655 5670 359851
24 9325 3599 5727 354124
25 9325 3541 5784 348340
26 9325 3483 5842 342498
27 9325 3425 5900 336597
28 9325 3366 5959 330638
29 9325 3306 6019 324619
30 9325 3246 6079 318539
31 9325 3185 6140 312399
32 9325 3124 6201 306198
33 9325 3062 6263 299934
34 9325 2999 6326 293608
35 9325 2936 6389 287219
36 9325 2872 6453 280766
37 9325 2808 6518 274248
38 9325 2742 6583 267665
39 9325 2677 6649 261016
40 9325 2610 6715 254301
41 9325 2543 6782 247519
42 9325 2475 6850 240668
43 9325 2407 6919 233750
44 9325 2337 6988 226762
45 9325 2268 7058 219704
46 9325 2197 7128 212575
47 9325 2126 7200 205376
48 9325 2054 7272 198104
49 9325 1981 7344 190760
50 9325 1908 7418 183342
51 9325 1833 7492 175850
52 9325 1758 7567 168283
53 9325 1683 7643 160640
54 9325 1606 7719 152921
55 9325 1529 7796 145125
56 9325 1451 7874 137251
57 9325 1373 7953 129298
58 9325 1293 8032 121265
59 9325 1213 8113 113152
60 9325 1132 8194 104959
61 9325 1050 8276 96683
62 9325 967 8359 88324
63 9325 883 8442 79882
64 9325 799 8527 71355
65 9325 714 8612 62743
66 9325 627 8698 54045
67 9325 540 8785 45260
68 9325 453 8873 36388
69 9325 364 8962 27426
70 9325 274 9051 18375
71 9325 184 9142 9233
72 9325 92 9233 0

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