buffalo dairy farm project report 10 buffaloes page 2

buffalo dairy farm project report 10 buffaloes page 2

Project cost and bank loan Cost. In Rs.
Capital cost  
Low cost Shed for 10 buffaloes  50 sq.ft/Buffalo @150/sq.ft 65000
Low cost Calf pen for 10 calves 20 sq.ft./calf @150/sq.ft. 30000
Cost of 10 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @52000/buffalo including transportation 520000
Cost of dairy appliances @ 1000/buffalo 10000
Cost of one chaff cutter 25000
Total 650000
Recurring cost to be capitalized
Cost of feed for first batch of  five  buffaloes for one month as per feed chart 19500
Cost of insurance  first five animals @5% of animal cost 13000
Cost of fodder cultivation in 2 acres of land for first session 12000
Cost of medicine vaccine, electricity for the first five  buffaloes 5500
Total recurring expenditure 50000
 TOTAL PROJECT COST 700000
Margin money 10% of project cost 70000
Bank loan 90 % of project cost 630000
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 279500 318500 299000 273000 273000 299000
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 33000 69000 78000 90000 90000 78000
Medicine vaccine veterinary aid 10000 10000 10000 10000 10000 10000
Insurance @5% of animal cost /year 26000 26000 26000 26000 26000 26000
Cost of fodder cultivation 24000 24000 24000 24000 24000 24000
Labour charge 72000 72000 72000 72000 72000 72000
Total 444500 519500 509000 495000 495000 509000
INCOME            
Sale  of milk @Rs.35/liter 752500 857500 805000 735000 735000 805000
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)

          208000
Value of building

(Depreciation on building@10%/year)

          38000
Value of equipment

(Depreciation on equipment @15%/year)

          3500
Total income 755050 860650 808050 737900 737900 1057550
Gross profit 310550 341150 299050 242900 242900 548550
Calculation of BCR and IRR
  1 2 3 4 5 6
Capital Costs 650000
Recurring Cost 444500 519500 509000 495000 495000 509000
Total Costs 1094500 519500 509000 495000 495000 509000
Benefit 755050 860650 808050 737900 737900 1057550
Net Benefit -339450 341150 299050 242900 242900 548550
Sl no Financial indicators Estimated value Preferred value
1. PW costs @ 15%DF 2428406.61  
2. PW benifits @ 15%DF 3084617.74  
3. Net Present Worth (NPW 656211.12 Should be+ve
4. Benefit Cost Ratio(BCR) 1.27:1 >1
5. Internal Rate of return (IRR) 38.946 >15%
6. Debt Service Coverage Ratio 2.11 >1.5

Loan Repayment  schedule 10  buffaloes:- Repayment of loan will start after grace period of six months. Total loan repayment period is 6-7 years. Details of  monthly installment, interest payment, principal payment and balance  is given in repayment schedule for 10 graded murrah buffaloes

DISCLAIMER-The views expressed in this model project are advisory in nature. This website assumes no financial liability for anyone using this project report for any purpose.

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