Dairy Farm project report 8 cows page 2

Economics of dairy farming with eight Indigenous

Milch  Breed Cows/cross-bred  cows

ECONOMICS OF DAIRY FARMING WITH 8 INDIGENOUS  DAIRY BREED COWS
Project cost Cost. In Rs.
Capital cost
Cow shed for 8 cows 40sq.ft/cow @300/sqft 96000
Calf pen for 8 calves 20 sq.ft./calf @300/sq.ft. 48000
Cost of 8 CB cows with minimum average 10 liter milk yield /day @35000/cow ( @ 3500/ liter of milk yield/cow) 280000
Cost of transportation @1000/cow 8000
Cost of one chaff cutter electric 10000
Cost of  electrification 10000
Cost of single bucket milking machine 30000
Cost of dairy appliances @ 1500/cow 12000
Total 494000
Recurring cost to be capitalized
Cost of feed for first batch of  four  cows for one month as per feed chart 12720
Cost of insurance  first five  animals @5% of animal cost 14000
Cost of fodder cultivation in 2 acres of land for first session 24000
Cost of medicine vaccine,  for the first four cows 8000
contingency 7280
Total recurring expenditure 66000
TOTAL PROJECT COST 560000
Margin money 10% of project cost 56000
Bank loan 90% of project cost 504000
Particulars Project period
CASH FLOW ANALYSIS. 1 2 3 4 5 6
Feeding during lactation period vide yearly lactation days and feed cost as per chart 182320 207760 195040 178080 178080 195040
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 22000 46000 52000 60000 60000 52000
Medicine vaccine veterinary aid 16000 16000 16000 16000 16000 16000
Insurance @5% of animal cost /year 14000 14000 14000 14000 14000 14000
Cost of fodder cultivation 48000 48000 48000 48000 48000 48000
Cost of labour 36000 36000 36000 36000 36000 36000
other miscellaneous expenditure 8000 8000 8000 8000 8000 8000
Total 326320 375760 369040 360080 360080 369040
INCOME
Sale  of milk @Rs.32/liter during lactation days with average milk yield /cow  liter/day 550400 627200 588800 537600 537600 588800
Sale of gunny bags 1680 1840 1800 1680 1680 1760
Manure will be utilized in own farm
Value of closing stock of 8 cows

(Depreciation on animal cost @10%/year)

112000
Value of building

(Depreciation on building@10%/year)

57600
Value of equipments(Depreciation on equipments @15%/year) 6200
Total income 552080 629040 590600 539280 539280 766360
Gross profit 225760 253280 221560 179200 179200 397320
Calculation of BCR & IRR
1 2 3 4 5 6
Capital Costs 494000
Recurring Cost 326320 375760 369040 360080 360080 369040
Total Costs 820320 375760 369040 360080 360080 369040
Benefit 552080 629040 590600 539280 539280 766360
Net Benefit -268240 253280 221560 179200 179200 397320
Sl no Financial indicators Estimated value Preferred value
1 Net Present Worth (NPW 467267.84 Should be +ve
2 Benefit Cost Ratio(BCR) 1.26:1 >1
3 Internal Rate of return (IRR) 34.631 >15%
4 Debt Service Coverage Ratio 1.936 >1.5

Repayment of loan:– 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 8 cows

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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