Dairy Farm project report 8 cows page 2

Economics of dairy farming with eight Indigenous Milch  Breed Cows/

cross-bred  cows

Project cost and bank loan Cost. In Rs.
Capital cost
Cow shed for 8 cows 40sq.ft/cow @250/sqft 80000
Calf pen for 4 calves 20 sq.ft./calf @200/sq.ft. 40000
Cost of 8 CB cows with minimum average 10 liter milk yield /day @27000 with transportation 240000
Cost of one chaff cutter operated power operated 2 Hp 25000
Cost of dairy appliances @ 1000/cow 8000
Electrification of the dairy farm with four ceiling  fan 14000
Cost of one single bucket milking machine 27000
Total 434000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per feed chart 9960
Cost of insurance  8 animals @5% of animal cost 12000
Cost of fodder cultivation in 2 acres of land 20000
Cost of medicine vaccine, electricity for the first batch   first  cow 4000
Total recurring expenditure 45960Say 46000
TOTAL PROJECT COST 480000
Margin money 15% of project cost 72000
Bank loan 85% of project cost 408000

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 142760 162680 152720 139440 139440 152720
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 9680 20240 22880 26400 26400 22880
Medicine vaccine veterinary aid 8000 8000 8000 8000 8000 8000
Insurance @5% of animal cost /year 12000 12000 12000 12000 12000 12000
Cost of fodder cultivation 40000 40000 40000 40000 40000 40000
other miscellaneous expenditure 10000 10000 10000 10000 10000 10000
Total 222440 252920 245600 235840 235840 245600
INCOME
Sale  of milk @Rs.27/liter during lactation days with average milk yield /cow  liter/day 464400 529200 496800 453600 453600 496800
Sale of gunny bags 1680 1040 1800 1680 1680 1760
Manure will be utilized in own farm
Value of closing stock of  8 cows(Depreciation on animal cost @10%/year) 96000
Value of building(Depreciation on building@10%/year) 48000
Value of equipments(Depreciation on equipments @15%/year) 74000
Total income 466080 530240 498600 455280 455280 716560
Gross profit 243640 277320 253000 219440 219440 470960
  1 2 3 4 5 6
Capital Costs 434000          
Recurring Cost 222440 252920 245600 235840 235840 245600
Total Costs 656440 252920 245600 235840 235840 245600
Benefit 466080 530240 498600 455280 455280 716560
Net Benefit -190360 277320 253000 219440 219440 470960
Financial indicators Estimated value Preferred value
Net Present Worth (NPW)@15%DF 648689.93 Should be+ve
Benefit Cost Ratio(BCR) 1.5:1 >1
Internal Rate of return (IRR) 49.29 >15%
Debt Service Coverage Ratio 2.78 >1.5

LOAN AMOUNT 408000,GRACE PERIOD 6 MONTH

LOAN AMOUNT AT THE END OF GRACE PERIOD=+24480=432480

S.No Monthly Installment Interest Principal Balance
0 432480
1 8455 4325 4130 428350
2 8455 4283 4172 424178
3 8455 4242 4213 419965
4 8455 4200 4255 415709
5 8455 4157 4298 411411
6 8455 4114 4341 407071
7 8455 4071 4384 402686
8 8455 4027 4428 398258
9 8455 3983 4472 393785
10 8455 3938 4517 389268
11 8455 3893 4562 384706
12 8455 3847 4608 380098
13 8455 3801 4654 375444
14 8455 3754 4701 370743
15 8455 3707 4748 365996
16 8455 3660 4795 361200
17 8455 3612 4843 356357
18 8455 3564 4891 351466
19 8455 3515 4940 346525
20 8455 3465 4990 341536
21 8455 3415 5040 336496
22 8455 3365 5090 331406
23 8455 3314 5141 326265
24 8455 3263 5192 321072
25 8455 3211 5244 315828
26 8455 3158 5297 310531
27 8455 3105 5350 305181
28 8455 3052 5403 299778
29 8455 2998 5457 294321
30 8455 2943 5512 288809
31 8455 2888 5567 283242
32 8455 2832 5623 277619
33 8455 2776 5679 271941
34 8455 2719 5736 266205
35 8455 2662 5793 260412
36 8455 2604 5851 254561
37 8455 2546 5909 248652
38 8455 2487 5969 242683
39 8455 2427 6028 236655
40 8455 2367 6089 230566
41 8455 2306 6149 224417
42 8455 2244 6211 218206
43 8455 2182 6273 211933
44 8455 2119 6336 205597
45 8455 2056 6399 199198
46 8455 1992 6463 192735
47 8455 1927 6528 186207
48 8455 1862 6593 179614
49 8455 1796 6659 172955
50 8455 1730 6726 166230
51 8455 1662 6793 159437
52 8455 1594 6861 152576
53 8455 1526 6929 145647
54 8455 1456 6999 138648
55 8455 1386 7069 131580
56 8455 1316 7139 124441
57 8455 1244 7211 117230
58 8455 1172 7283 109947
59 8455 1099 7356 102592
60 8455 1026 7429 95162
61 8455 952 7503 87659
62 8455 877 7578 80081
63 8455 801 7654 72426
64 8455 724 7731 64695
65 8455 647 7808 56887
66 8455 569 7886 49001
67 8455 490 7965 41036
68 8455 410 8045 32991
69 8455 330 8125 24866
70 8455 249 8206 16660
71 8455 167 8288 8371
72 8455 84 8371 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.

<<Previous page