Dairy farm project report 4 cows part 2

Economics of dairy farming with 4 cows

Project cost and bank loan Cost. In Rs.
Capital cost
Cow shed for 4 cows 40sq.ft/cow @250/sqft 40000
Calf pen for 4 calves 20 sq.ft./calf @250/sq.ft. 20000
Cost of 4 CB cows with minimum average 10 liter milk yield /day @30000with transportation 120000
Cost of transportation @Rs1000/cow 4000
Cost of one chaff cutter hand operated 10000
Cost of dairy appliances @ 1000/cow 4000
Cost of electrification of dairy farm with two electric fans 12000
Total 210000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per feed chart 4980
Cost of insurance  4 animals @5% of animal cost 6000
Cost of fodder cultivation in one acres of land

For one session

10000
Cost of medicine vaccine, electricity for the first two cows 2000
Contingency 7020
Total recurring expenditure 30000

 

TOTAL PROJECT COST

 

240000
Margin money 15% of project cost 36000
Bank loan 85% of project cost 204000

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 71380 81340 76360 69720 69720 76360
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 7480 15640 17680 20400 20400 17680
Medicine vaccine veterinary aid 4000 4000 4000 4000 4000 4000
Insurance @5% of animal cost /year 6000 6000 6000 6000 6000 6000
Cost of fodder cultivation 20000 20000 20000 20000 20000 20000
other miscellaneous expenditure 5000 5000 5000 5000 5000 5000
Total 113860 131980 129040 125120 125120 129040
INCOME
Sale  of milk @Rs.27/liter during lactation days with average milk yield /10  liter/day 232200 264600 248400 226800 226800 248400
Sale of gunny bags 840 520 900 840 840 880
Manure will be utilized in own farm
Value of closing stock of 4cows

(Depreciation on animal cost @10%/year)

48000
Value of building

(Depreciation on building@10%/year)

24000
Value of equipments

(Depreciation on equipments @15%/year)

2600
Total income 233040 265120 249300 227640 227640 323880
Gross profit 119180 133140 120260 102520 102520 194840
Calculation of BCR & IRR
1 2 3 4 5 6
Capital Costs 210000
Recurring Cost 113860 131980 129040 125120 125120 129040
Total Costs 323860 131980 129040 125120 125120 129040
Benefit 233040 265120 249300 227640 227640 323880
Net Benefit -90820 133140 120260 102520 102520 194840
Sl no Financial indicators Estimated value Preferred value
1 Net Present Worth (NPW)

@15%DF

294593.37

 

Should be+ve
2 Benefit Cost Ratio(BCR) 1.449:1 >1
3 Internal Rate of return (IRR) 32.73 >15%
4 Debt Service Coverage Ratio 2.53 >1.5

LOAN AMOUNT 204000

GRACE PERIOD 6 MONTH

OAN AMOUNT AT THE END OF GRACE PERIOD=204000+12240=216240

S.No Monthly Installment Interest Principal Balance
0 216240
1 4228 2162 2065 214175
2 4228 2142 2086 212089
3 4228 2121 2107 209982
4 4228 2100 2128 207855
5 4228 2079 2149 205706
6 4228 2057 2170 203535
7 4228 2035 2192 201343
8 4228 2013 2214 199129
9 4228 1991 2236 196893
10 4228 1969 2259 194634
11 4228 1946 2281 192353
12 4228 1924 2304 190049
13 4228 1900 2327 187722
14 4228 1877 2350 185372
15 4228 1854 2374 182998
16 4228 1830 2398 180600
17 4228 1806 2422 178179
18 4228 1782 2446 175733
19 4228 1757 2470 173263
20 4228 1733 2495 170768
21 4228 1708 2520 168248
22 4228 1682 2545 165703
23 4228 1657 2571 163132
24 4228 1631 2596 160536
25 4228 1605 2622 157914
26 4228 1579 2648 155266
27 4228 1553 2675 152591
28 4228 1526 2702 149889
29 4228 1499 2729 147160
30 4228 1472 2756 144405
31 4228 1444 2783 141621
32 4228 1416 2811 138810
33 4228 1388 2839 135970
34 4228 1360 2868 133102
35 4228 1331 2897 130206
36 4228 1302 2925 127280
37 4228 1273 2955 124326
38 4228 1243 2984 121341
39 4228 1213 3014 118327
40 4228 1183 3044 115283
41 4228 1153 3075 112208
42 4228 1122 3105 109103
43 4228 1091 3137 105966
44 4228 1060 3168 102799
45 4228 1028 3200 99599
46 4228 996 3232 96367
47 4228 964 3264 93104
48 4228 931 3296 89807
49 4228 898 3329 86478
50 4228 865 3363 83115
51 4228 831 3396 79719
52 4228 797 3430 76288
53 4228 763 3465 72824
54 4228 728 3499 69324
55 4228 693 3534 65790
56 4228 658 3570 62220
57 4228 622 3605 58615
58 4228 586 3641 54974
59 4228 550 3678 51296
60 4228 513 3715 47581
61 4228 476 3752 43829
62 4228 438 3789 40040
63 4228 400 3827 36213
64 4228 362 3865 32348
65 4228 323 3904 28444
66 4228 284 3943 24501
67 4228 245 3983 20518
68 4228 205 4022 16496
69 4228 165 4063 12433
70 4228 124 4103 8330
71 4228 83 4144 4186
72 4228 42 4186 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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