dairy farm project report 2 buffaloes page 2

Economics of dairy farming with 2 graded murrah  buffaloes
Project cost and bank loan Cost. In Rs.
Capital cost
Low cost Shed for 2 buffaloes  50sq.ft/Buffalo @120/sqft 12000
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 transportation 100000
Cost of dairy appliances @ 1000/buffalo 2000
Total 118800
Cost of feed for first batch of  one  buffalo for one month as per feed chart 2940
Cost of insurance  2 animals @5% of animal cost 5000
Cost of fodder cultivation in 0.5 acres of land for first session 5000
Cost of medicine vaccine, electricity for the first buffalo 1000
Contingency 1000
Total recurring expenditure 14940
TOTAL PROJECT COST 133740
Margin money 10% of project cost 13374
Bank loan 90% of project cost 120366

Say 120000

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 42140 48020 45080 41160 41160 45080
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 4840 10120 11440 13200 13200 11440
Medicine vaccine veterinary aid 2000 2000 2000 2000 2000 2000
Insurance @5% of animal cost /year 5000 5000 5000 5000 5000 5000
Cost of fodder cultivation 10000 10000 10000 10000 10000 10000
other miscellaneous expenditure 1000 1000 1000 1000 1000 1000
Total 55430 64490 63020 61060 61060 63020
INCOME
Sale  of milk @Rs.31/liter during lactation days with average milk yield /10  liter/day 133300 151900 142600 130200 130200 142600
Sale of gunny bags 510 630 610 580 580 610
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 income 133810 152530 143210 130780 130780 190130
Gross profit 78380 88040 80190 69720 69720 127110
Calculation of BCR and IRR
1 2 3 4 5 6
Capital Costs 118800
Recurring Cost 55430 64490 63020 61060 61060 63020
Total Costs 174230 64490 63020 61060 61060 63020
Benefit 133810 152530 143210 130780 130780 190130
Net Benefit -40420 88040 80190 69720 69720 127110
Financial indicators Estimated value Preferred value
Net Present Worth (NPW) 212507.61 Should be+ve
Benefit Cost Ratio(BCR) 1.63:1 >1
Internal Rate of return (IRR) 41.18 >15%
Debt Service Coverage Ratio 2.75 >1.5

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

period =120000+7200=127200

S.No Monthly Installment Interest Principal Balance
0 127200
1 2487 1272 1215 125985
2 2487 1260 1227 124758
3 2487 1248 1239 123519
4 2487 1235 1252 122267
5 2487 1223 1264 121003
6 2487 1210 1277 119727
7 2487 1197 1290 118437
8 2487 1184 1302 117135
9 2487 1171 1315 115819
10 2487 1158 1329 114491
11 2487 1145 1342 113149
12 2487 1131 1355 111793
13 2487 1118 1369 110425
14 2487 1104 1383 109042
15 2487 1090 1396 107646
16 2487 1076 1410 106235
17 2487 1062 1424 104811
18 2487 1048 1439 103372
19 2487 1034 1453 101919
20 2487 1019 1468 100452
21 2487 1005 1482 98969
22 2487 990 1497 97472
23 2487 975 1512 95960
24 2487 960 1527 94433
25 2487 944 1542 92891
26 2487 929 1558 91333
27 2487 913 1573 89759
28 2487 898 1589 88170
29 2487 882 1605 86565
30 2487 866 1621 84944
31 2487 849 1637 83307
32 2487 833 1654 81653
33 2487 817 1670 79983
34 2487 800 1687 78296
35 2487 783 1704 76592
36 2487 766 1721 74871
37 2487 749 1738 73133
38 2487 731 1755 71377
39 2487 714 1773 69604
40 2487 696 1791 67814
41 2487 678 1809 66005
42 2487 660 1827 64178
43 2487 642 1845 62333
44 2487 623 1863 60470
45 2487 605 1882 58588
46 2487 586 1901 56687
47 2487 567 1920 54767
48 2487 548 1939 52828
49 2487 528 1959 50869
50 2487 509 1978 48891
51 2487 489 1998 46893
52 2487 469 2018 44875
53 2487 449 2038 42837
54 2487 428 2058 40779
55 2487 408 2079 38700
56 2487 387 2100 36600
57 2487 366 2121 34479
58 2487 345 2142 32337
59 2487 323 2163 30174
60 2487 302 2185 27989
61 2487 280 2207 25782
62 2487 258 2229 23553
63 2487 236 2251 21302
64 2487 213 2274 19028
65 2487 190 2297 16732
66 2487 167 2319 14412
67 2487 144 2343 12069
68 2487 121 2366 9703
69 2487 97 2390 7314
70 2487 73 2414 4900
71 2487 49 2438 2462
72 2487 25 2462 0

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