Project Report 2 buffaloes

Project report for dairy farm with two graded Murrah buffaloes

Buffalo dairy farming is a profitable business & has   good potential for employment generation . India has 57% of world buffalo population. Buffalo milk contributes 57% of total milk production. Buffaloes have several advantages over crossbred cows as farm animal.

1-They are well adopted to agro-climatic condition of our country

2-They are more disease resistant in comparison to crossbred cows. (less incidence of milk fever & mastitis in buffaloes.

3-They can thrive well on crop residue

5-Buffalo milk contains more butter fat for which the price of buffalo milk is more.

Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo   training on dairy farming. They can contact Local Animal Husbandry Department staffs/Veterinary College/agriculture University etc. for the purpose.  They should also visit progressive dairy farmers and government/ agricultural university dairy farms in the locality. They must check the following

1-.  Availability of good quality graded murrah buddalo  in nearby livestock market

2-Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid Centers, MPCS

3- Marketing facility of milk and milk product in the locality

4-Availability of concentrates ,fodder& medicine in that locality.

This project report is based on following assumption:

1-Freshly calved murrah  female buffaloes in 1st or 2nd lactation will be purchased in two batches of one animals each/batch  at an interval of 5 to 6 months.

2-Availability of 0.5 acres of land  for fodder cultivation is prerequisite for the project,

3-Dung produced will be utilized as Manure for fodder cultivation.

4-Cost of rearing calves not considered as it will be repealed by their sale

57In case of death of adult animal new buffalo  will be purchased from insurance claim money.

6-Heifers will be used as replacement stocks

7 The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.

Government subsidy available for these types of project– Back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) is available under government of India scheme Dairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs30,000/ for general category & Rs40.000 for ST/SC category for buffalo dairy farm with two animals.

Farmer from Odisha can avail back ended capital subsidy 25% for general category  (33.33% for SC/ST beneficiaries) under government of Odisha scheme Promotion of Dairy Entrepreneurship (PDE).Subsidy ceiling is Rs25,000/ for general category & Rs30.000 for ST/SC category for buffalo dairy farm with two animals under  PDE scheme.

Odisha farmer can avail subsidy either under scheme PDE or DEDS.

Avail Bank loan and subsidy– In order to avail bank loan & subsidy under DEDS/PDE the entrepreneur/farmers are advised to contact local animal husbandry/veterinary officer. Animal resources development department is the facilitator deportment for above schemes.

. Techno economic parameters
Type of AnimalGraded Murrah buffalo
No. of Animals2
Cost of Animal (Rs./animal) including transportation50000
Average Milk Yield (litre/day)10
Floor space (sqft) per adult animal50
Floor space (sqft) per calf20
Cost of construction per sqft (Rs.)120
Cost of equipment per animal (Rs.)1000
Cost of fodder cultivation (Rs./acre/season)5000
Insurance premium (% per annum)5
Veterinary aid/animal/ year (Rs.)1000
Cost of concentrate feed (Rs./kg)16
Cost of dry fodder (Rs./kg)1
Rate of interest (%)12
Repayment period (years)6
Selling price of milk (Rs./kg)31
Sale price of gunny bags (Rs. per bag)10
Lactation days280
Dry days150
DAILY FEEDING AND COST CHART FOR DAIRY BUFFALOES
FEEDING STUFFCOST/KG

Rs.

During lactation periodDuring dry period
Quantity (kg)Cost (Rs.)Quantity (kg)Cost (Rs.)
Concentrate feed165.588232
Green fodder120Home grown15Home grown
Dry fodder2510612
Total30.5982344
Lactation chart/Dry chart
ParticularsYears
IIIIIIIVVVi
Lactation Days
First batch250280250210210250
Second batch180210210210210210
Total430490460420420460
Dry Days
First batch11080110150150110
Second batch150150150150150
Total110230260300300260
Economics of dairy farming with 2 graded murrah  buffaloes
Project cost and bank loanCost. In Rs.
Capital cost
Low cost Shed for 2 buffaloes  50sq.ft/Buffalo @120/sqft12000
Low cost Calf pen for 2 calves 20 sq.ft./calf @120/sq.ft.4800
Cost of 2 graded murrah buffaloes with minimum average10 liter milk yield 10 liter /day @50000/buffalo including transportation100000
Cost of dairy appliances @ 1000/buffalo2000
Total118800
Cost of feed for first batch of  one  buffalo for one month as per feed chart2940
Cost of insurance  2 animals @5% of animal cost5000
Cost of fodder cultivation in 0.5 acres of land for first session5000
Cost of medicine vaccine, electricity for the first buffalo1000
Contingency1000
Total recurring expenditure14940
TOTAL PROJECT COST133740
Margin money 10% of project cost13374
Bank loan 90% of project cost120366

Say 120000

CASH FLOW ANALYSIS.
ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart421404802045080411604116045080
Feeding during dry period vide dry days and feed cost as per feed chart enclosed48401012011440132001320011440
Medicine vaccine veterinary aid200020002000200020002000
Insurance @5% of animal cost /year500050005000500050005000
Cost of fodder cultivation100001000010000100001000010000
other miscellaneous expenditure100010001000100010001000
Total554306449063020610606106063020
INCOME
Sale  of milk @Rs.31/liter during lactation days with average milk yield /10  liter/day133300151900142600130200130200142600
Sale of gunny bags510630610580580610
Manure will be utilized in own farm
Value of closing stock of  2 buffaloes

(Depreciation on animal cost @10%/year)

40000
Value of building

(Depreciation on building@10%/year)

6720
Value of equipment

(Depreciation on equipment @15%/year)

200
Total income133810152530143210130780130780190130
Gross profit7838088040801906972069720127110
Calculation of BCR and IRR
123456
Capital Costs118800
Recurring Cost554306449063020610606106063020
Total Costs1742306449063020610606106063020
Benefit133810152530143210130780130780190130
Net Benefit-4042088040801906972069720127110
Financial indicatorsEstimated valuePreferred value
Net Present Worth (NPW)212507.61Should be+ve
Benefit Cost Ratio(BCR)1.63:1>1
Internal Rate of return (IRR)41.18>15%
Debt Service Coverage Ratio2.75>1.5

Bank loan 120000 grace period 6 months Loan amount at the end of grace

period =120000+7200=127200

S.NoMonthly InstallmentInterestPrincipal Balance
0127200
1248712721215125985
2248712601227124758
3248712481239123519
4248712351252122267
5248712231264121003
6248712101277119727
7248711971290118437
8248711841302117135
9248711711315115819
10248711581329114491
11248711451342113149
12248711311355111793
13248711181369110425
14248711041383109042
15248710901396107646
16248710761410106235
17248710621424104811
18248710481439103372
19248710341453101919
20248710191468100452
2124871005148298969
222487990149797472
232487975151295960
242487960152794433
252487944154292891
262487929155891333
272487913157389759
282487898158988170
292487882160586565
302487866162184944
312487849163783307
322487833165481653
332487817167079983
342487800168778296
352487783170476592
362487766172174871
372487749173873133
382487731175571377
392487714177369604
402487696179167814
412487678180966005
422487660182764178
432487642184562333
442487623186360470
452487605188258588
462487586190156687
472487567192054767
482487548193952828
492487528195950869
502487509197848891
512487489199846893
522487469201844875
532487449203842837
542487428205840779
552487408207938700
562487387210036600
572487366212134479
582487345214232337
592487323216330174
602487302218527989
612487280220725782
622487258222923553
632487236225121302
642487213227419028
652487190229716732
662487167231914412
672487144234312069
68248712123669703
6924879723907314
7024877324144900
7124874924382462
7224872524620

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