Project Report 4 Buffaloes

Project report for dairy farm with four graded Murrah buffaloes

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 two animals each/batch  at an interval of 5 to 6 months.

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4-Cost of rearing calves not considered as it will be repealed by their sale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

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 buffaloes 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.

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 Rs60,000/ for general category & Rs80.000 for ST/SC category for buffalo dairy farm with four 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 Rs50,000/ for general category & Rs66666 for ST/SC category for buffalo dairy farm with four buffaloes  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 Animals4
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 batch500560500420420500
Second batch360420420420420420
Total860980920840840920
Dry Days
First batch220160220300300220
Second batch300300300300300
Total220460520600600520
Economics of dairy farming with 4 Graded murrah  buffaloes
Project cost and bank loanCost. In Rs.
Capital cost
Low cost Shed for 4buffaloes  50sq.ft/Buffalo @120/sqft24000
Low cost Calf pen for 4 calves 20 sq.ft./calf @120/sq.ft.9600
Cost of 4 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @50000/buffalo including transportation200000
Cost of dairy appliances @ 1000/buffalo4000
One hand operated chaff cutter10000
Total247600
Cost of feed for first batch of  one  buffalo for one month as per feed chart5880
Cost of insurance  4 animals @5% of animal cost10000
Cost of fodder cultivation in 1 acres of land for first session10000
Cost of medicine vaccine, electricity for the two buffalo4000
Contingency2520
Total recurring expenditure32400
TOTAL PROJECT COST282500
Margin money 15% of project cost42375
Bank loan 85% of project cost240125

Say 240000

CASH FLOW ANALYSIS
ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart842809604090160823208232090160
Feeding during dry period vide dry days and feed cost as per feed chart enclosed96802024022880264002640022880
Medicine vaccine veterinary aid500050005000500050005000
Insurance @5% of animal cost /year100001000010000100001000010000
Cost of fodder cultivation200002000020000200002000020000
other miscellaneous expenditure100001000010000100001000010000
Total138960161280158040153720153720158040
INCOME
Sale  of milk @Rs.31/liter during lactation days with average milk yield /10  liter/day266600303800285200260400260400285200
Sale of gunny bags102012601220116011601220
Manure will be utilized in own farm
Value of closing stock of  4 buffaloes

(Depreciation on animal cost @10%/year)

80000
Value of building

(Depreciation on building@10%/year)

14240
Value of equipment

(Depreciation on equipment @15%/year)

1400
Total income267620305060286420261560261560382060
Gross profit128660143780128380107840107840224020
Calculation of BCR and IRR
123456
Capital Costs247600
Recurring Cost138960161280158040153720153720158040
Total Costs386560161280158040153720153720158040
Benefit267620305060286420261560261560382060
Net Benefit-118940143780128380107840107840224020
Financial indicatorsEstimated valuePreferred value
Net Present Worth (NPW301827.62Should be+ve
Benefit Cost Ratio(BCR)1.379:1>1
Internal Rate of return (IRR)41.38>15%
Debt Service Coverage Ratio2.33>1.5
Bank loan 240000 grace period 6 months. Loan amount at the end of grace period =240000+14400=254400
S.NoMonthly InstallmentInterestPrincipal Balance
0254400
1497425442430251970
2497425202454249517
3497424952478247038
4497424702503244535
5497424452528242007
6497424202554239453
7497423952579236874
8497423692605234269
9497423432631231639
10497423162657228981
11497422902684226298
12497422632711223587
13497422362738220849
14497422082765218084
15497421812793215291
16497421532821212471
17497421252849209622
18497420962877206745
19497420672906203838
20497420382935200903
21497420092965197939
22497419792994194945
23497419493024191920
24497419193054188866
25497418893085185781
26497418583116182665
27497418273147179519
28497417953178176340
29497417633210173130
30497417313242169888
31497416993275166613
32497416663307163306
33497416333341159965
34497416003374156591
35497415663408153183
36497415323442149742
37497414973476146266
38497414633511142755
39497414283546139209
40497413923581135627
41497413563617132010
42497413203653128356
43497412843690124666
44497412473727120940
45497412093764117175
46497411723802113374
47497411343840109534
48497410953878105655
49497410573917101738
5049741017395697782
514974978399693787
524974938403689751
534974898407685675
544974857411781558
554974816415877400
564974774420073200
574974732424268959
584974690428464675
594974647432760348
604974603437055978
614974560441451564
624974516445847106
634974471450342604
644974426454838056
654974381459333463
664974335463928824
674974288468524139
684974241473219407
694974194478014627
70497414648279800
7149749848764924
7249744949240

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.