dairy farm project report 2 buffaloes page 2

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 @150/sqft 15000
Low cost Calf pen for 2 calves 20 sq.ft./calf @150/sq.ft. 6000
Cost of 2 graded murrah buffaloes with minimum average10 liter milk yield 10 liter /day @52000/buffalo including transportation and insurance 104000
Cost of dairy appliances @ 1000/buffalo 2000
Total 127000
Cost of feed for first batch of  one  buffalo for one month as per feed chart 3900
Cost of insurance  2 animals @5% of animal cost 5200
Cost of fodder cultivation in 0.5 acres of land for first session 3000
Cost of medicine vaccine, electricity for the first buffalo 1000
Total recurring expenditure 13100
TOTAL PROJECT COST 140100

Say 140000

Margin money 10% of project cost 14000
Bank loan 90% of project cost 126000
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 55900 63700 59800 54600 54600 59800
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 6600 13800 15600 18000 18000 15600
Medicine vaccine veterinary aid 2000 2000 2000 2000 2000 2000
Insurance @5% of animal cost /year 5200 5200 5200 5200 5200 5200
Cost of fodder cultivation 12000 12000 12000 12000 12000 12000
other miscellaneous expenditure 2000 2000 2000 2000 2000 2000
Total 83700 98700 96600 93800 93800 96600
INCOME
Sale  of milk @Rs.35/liter during lactation days with average milk yield /10  liter/day 150500 171500 161000 147000 147000 161000
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)

8400
Value of equipment

(Depreciation on equipment @15%/year)

200
Total income 151010 172130 161610 147580 147580 210210
Gross profit 67310 73430 65010 53780 53780 113610
Calculation of BCR and IRR
1 2 3 4 5 6
Capital Costs 127000
Recurring Cost 83700 98700 96600 93800 93800 96600
Total Costs 210700 98700 96600 93800 93800 96600
Benefit 151010 172130 161610 147580 147580 210210
Net Benefit -59690 73430 65010 53780 53780 113610
Financial indicators Estimated value Preferred value
Net Present Worth (NPW) 152968.20 Should be+ve
Benefit Cost Ratio(BCR) 1.33:1 >1
Internal Rate of return (IRR) 43.139 >15%
Debt Service Coverage Ratio 2.27 >1.5

Loan Repayment  schedule 2  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 2 graded murrah buffaloes.

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.

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