dairy farm project report 2 cows page 2

Economics of dairy farming with 2 indigenous dairy breed/ crossbred/cows
Project cost Cost. In Rs.
1 Capital cost
2 Cow shed for 2 cows 40sq.ft/cow @250/sqft 20000
3 Calf pen for 2 calves 20 sq.ft./calf @250/sq.ft. 10000
4 Cost of 2 CB cows with minimum average 10 liter milk yield /day @30000/cow (as per govt. norm @ 3000/ liter of milk yield/cow) 60000
5 Cost of transportation @2500/cow 2000
6 Cost of one chaff cutter hand operated 10000
7 Cost of dairy appliances @ 1000/cow 2000
Total 104000
Recurring cost to be capitalized
a Cost of feed for first batch of  one cows for one month as per feed chart 2490
b Cost of insurance  2 animals @5% of animal cost 3000
c Cost of fodder cultivation in 0.5 acres of land for first session 5000
d Cost of medicine vaccine, electricity for the first cow 1000
e Contingency 4510
f Total recurring expenditure 16000
g TOTAL PROJECT COST 120000
h Margin money 10% of project cost 12000
i Bank loan 90% of project cost 108000
CASH FLOW ANALYSIS.
Item Particulars Project period
1 2 3 4 5 6
Feeding during lactation period vide yearly lactation days and feed cost as per chart 35690 40670 38180 34860 34860 38180
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 3740 7820 8840 10200 10200 8840
Medicine vaccine veterinary aid 2000 2000 2000 2000 2000 2000
Insurance @5% of animal cost /year 3000 3000 3000 3000 3000 3000
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.27/liter during lactation days with average milk yield /10  liter/day 116100 132300 124200 113400 113400 124200
Sale of gunny bags 420 460 450 420 420 440
Manure will be utilized in own farm
Value of closing stock of 2cows(Depreciation on animal cost @10%/year) 24000
Value of building (Depreciation on building@10%/year) 12000
Value of equipment

(Depreciation on equipment @15%/year)

1200
Total income 116520 132760 124650 113820 113820 161840
Gross profit 61090 68270 61630 52760 52760 98820
Calculation of BCR & IRR
1 2 3 4 5 6
Capital Costs 104000
Recurring Cost 55430 64490 63020 61060 61060 63020
Total Costs 159430 64490 63020 61060 61060 63020
Benefit 116520 132760 124650 113820 113820 161840
Net Benefit -42910 68270 61630 52760 52760 98820
Sl no Financial indicators Estimated value Preferred value
1. PW costs @ 15%DF 321349.31
2. PW benifits @ 15%DF 475300.28
3. Net Present Worth (NPW 153950.97 Should be+ve
4. Benefit Cost Ratio(BCR) 1.479:1 >1
5. Internal Rate of return (IRR) 47.65 >15%
6. Debt Service Coverage Ratio 2.45 >1.5

Bank loan 108000 grace period 6 months Loan amount at the end of grace period    =108000+6480=114480

S.No Monthly Installment Interest Principal Balance
0 114480
1 2238 1145 1093 113387
2 2238 1134 1104 112282
3 2238 1123 1115 111167
4 2238 1112 1126 110041
5 2238 1100 1138 108903
6 2238 1089 1149 107754
7 2238 1078 1161 106593
8 2238 1066 1172 105421
9 2238 1054 1184 104237
10 2238 1042 1196 103042
11 2238 1030 1208 101834
12 2238 1018 1220 100614
13 2238 1006 1232 99382
14 2238 994 1244 98138
15 2238 981 1257 96881
16 2238 969 1269 95612
17 2238 956 1282 94330
18 2238 943 1295 93035
19 2238 930 1308 91727
20 2238 917 1321 90406
21 2238 904 1334 89072
22 2238 891 1347 87725
23 2238 877 1361 86364
24 2238 864 1374 84990
25 2238 850 1388 83602
26 2238 836 1402 82199
27 2238 822 1416 80783
28 2238 808 1430 79353
29 2238 794 1445 77908
30 2238 779 1459 76449
31 2238 764 1474 74976
32 2238 750 1488 73488
33 2238 735 1503 71984
34 2238 720 1518 70466
35 2238 705 1533 68933
36 2238 689 1549 67384
37 2238 674 1564 65820
38 2238 658 1580 64240
39 2238 642 1596 62644
40 2238 626 1612 61032
41 2238 610 1628 59404
42 2238 594 1644 57760
43 2238 578 1661 56100
44 2238 561 1677 54423
45 2238 544 1694 52729
46 2238 527 1711 51018
47 2238 510 1728 49290
48 2238 493 1745 47545
49 2238 475 1763 45782
50 2238 458 1780 44002
51 2238 440 1798 42204
52 2238 422 1816 40388
53 2238 404 1834 38554
54 2238 386 1853 36701
55 2238 367 1871 34830
56 2238 348 1890 32940
57 2238 329 1909 31031
58 2238 310 1928 29104
59 2238 291 1947 27157
60 2238 272 1967 25190
61 2238 252 1986 23204
62 2238 232 2006 21198
63 2238 212 2026 19172
64 2238 192 2046 17125
65 2238 171 2067 15058
66 2238 151 2088 12971
67 2238 130 2108 10862
68 2238 109 2129 8733
69 2238 87 2151 6582
70 2238 66 2172 4410
71 2238 44 2194 2216
72 2238 22 2216 0
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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