Dairy farm project 2 cows

Project report for dairy farm with two indigenous dairy breed/ crossbred/cows

Dairy farming is a profitable business. It provides an excellent opportunity for self employment for unemployed youth. It is also an important source of income generation to small/marginal farmers and agricultural labourers. India is the largest milk producer of the world. The demand of milk & milk product is increasing rapidly There is immense scope of dairy farming in our country. The increasing cost of feed ingredients and its seasonal variability can be reduced by undertaking fodder cultivation.

Government subsidy available for these types of project– Back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) is available under government of India schemeDairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs30,000/ for general category & Rs40.000 for ST/SC category for dairy farm with two animals.

Farmer from Odisha can avail back ended capital subsidy 25% for general category  (33.33% for SC/ST beneficiaries) under government of Odisha scheme PROMOTION OF DAIRY ENTREPRENEURSHIP (PDE).Subsidy ceiling is Rs25,000/ for general category & Rs33333 for ST/SC category for dairy farm with two animals for PDE scheme.

Odisha farmer can avail subsidy either under scheme PDE or DEDS.

Avail Bank loan and subsidy– In order to avail bank loan & subsidy under DEDS/PDE the entrepreneur/farmers are advised to contact local animal husbandry/veterinary officer. Animal resources development department is the facilitator deportment for above schemes.

 Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo   training on dairy farming. They can contact Local Animal Husbandry Department staffs/Veterinary College/agriculture University etc. for the purpose.  They should also visit progressive dairy farmers and government/ agricultural university dairy farms in the locality. They must check the following points before starting a dairy farm.

  1. Availability of good quality dairy breed cows in nearby livestock market
  2. Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid Centers, MPCS
  3. Marketing facility of milk and milk product in the locality

4.Availability of concentrates ,fodder & medicine in that locality.

This project report is based on following assumption:

1.Freshly calved indigenous dairy breed/ crossbred  cows like RedSindhi/ Sahiwal/ Gir/ Rathi/ Crossbred cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months.

2.Availability of  0.5 acre of  irrigated land is prerequisite for the project

3.Cost of labour has not been taken into consideration since full time labour is not required for the small unit. Family labour will be utilized for maintance of the dairy farm.

4.Fodder cultivation considered in 0.5 acre land ,Two crops considered per year.

5.Cow dung produced will be utilized as Manure for fodder cultivation.

6.Cost of rearing calves is not considered as it will be nullified by their sale value

7.In case of death  cow new cow will be purchased from insurance claim money

8.The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines.

Housing for cows

Floor –Pucca, smooth strong concrete cemented, impervious to moisture ,and have slope 1 in 60 towards gutter. Plinth should be 2ft. higher than ground.

 Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks.

Roof– 14-16ft. high at the center and 8ft. high on the side wall .there should be   hang over 3ft  beyond wall to prevent rain water from entering cow shade. Roof should be of asbestos, cement asbestos, or tile.thatched roof can replace asbestos in low cost housing

ITEMSLENGTH IN METER
MANGER0.6M
STANDING PLACE1.5M
GUTTER0.4M
FEEDING PASSAGE1.2M
MILKING PLACE1.2M
. Techno economic parameter
Type of Animal

Indigenous

Milch breed/crossbred

/ CB Jersey Cow

No. of Animals2
Cost of Animal (Rs./animal)30000/cow
Average Milk Yield (litre/day)10
Floor space (sqft) per adult animal40
Floor space (sqft) per calf20
Cost of construction per sqft (Rs.)250
Cost of equipment per animal (Rs.)1000
Cost of fodder cultivation (Rs./acre/season)5000
Insurance premium (% per annum)5
Veterinary aid/animal/ year (Rs.)1000
Cost of concentrate feed (Rs./kg)16
Cost of dry fodder (Rs./kg)1
Rate of interest (%)12
Repayment period (years)6
Selling price of milk (Rs./kg)27
Sale price of gunny bags (Rs. per bag)10
Lactation days280
Dry days150
DAILY FEEDING AND COST CHART FOR DAIRY COWS
ItemFEEDING STUFFCOST/KG

Rs.

During lactation periodDuring dry period
Quantity (kg)Cost (Rs.)Quantity (kg)Cost (Rs.)
1Concentrate feed164.5721.524
2Green fodder120Home grown15Home grown
3Dry fodder4411510
4Total28.58321.534
Lactation chart/Dry chart
Sr.NoParticularsYears
IIIIIIIVVVi
i)Lactation Days
a)First batch250280250210210250
b)Second batch180210210210210210
Total430490460420420460
ii)Dry Days
a)First batch11080110150150110
b)Second batch150150150150150
Total110230260300300260
Economics of dairy farming with 2indigenous dairy breed/ crossbred/cowS
Project costCost. In Rs.
1Capital cost
2Cow shed for 2 cows 40sq.ft/cow @250/sqft20000
3Calf pen for 2 calves 20 sq.ft./calf @250/sq.ft.10000
4Cost 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
5Cost of transportation @2500/cow2000
6Cost of one chaff cutter hand operated10000
7Cost of dairy appliances @ 1000/cow2000
Total104000
Recurring cost to be capitalized
aCost of feed for first batch of  one cows for one month as per feed chart2490
bCost of insurance  2 animals @5% of animal cost3000
cCost of fodder cultivation in 0.5 acres of land for first session5000
dCost of medicine vaccine, electricity for the first cow1000
eContingency4510
fTotal recurring expenditure16000
gTOTAL PROJECT COST120000
hMargin money 10% of project cost12000
iBank loan 90% of project cost108000
CASH FLOW ANALYSIS.
ItemParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart356904067038180348603486038180
Feeding during dry period vide dry days and feed cost as per feed chart enclosed37407820884010200102008840
Medicine vaccine veterinary aid200020002000200020002000
Insurance @5% of animal cost /year300030003000300030003000
Cost of fodder cultivation100001000010000100001000010000
other miscellaneous expenditure100010001000100010001000
Total554306449063020610606106063020
INCOME
Sale  of milk @Rs.27/liter during lactation days with average milk yield /10  liter/day116100132300124200113400113400124200
Sale of gunny bags420460450420420440
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 income116520132760124650113820113820161840
Gross profit610906827061630527605276098820
Calculation of BCR & IRR
123456
Capital Costs104000
Recurring Cost554306449063020610606106063020
Total Costs1594306449063020610606106063020
Benefit116520132760124650113820113820161840
Net Benefit-429106827061630527605276098820
Sl noFinancial indicatorsEstimated valuePreferred value
1.PW costs @ 15%DF321349.31
2.PW benifits @ 15%DF475300.28
3.Net Present Worth (NPW153950.97Should be+ve
4.Benefit Cost Ratio(BCR)1.479:1>1
5.Internal Rate of return (IRR)47.65>15%
6.Debt Service Coverage Ratio2.45>1.5

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

S.NoMonthly InstallmentInterestPrincipal Balance
0114480
1223811451093113387
2223811341104112282
3223811231115111167
4223811121126110041
5223811001138108903
6223810891149107754
7223810781161106593
8223810661172105421
9223810541184104237
10223810421196103042
11223810301208101834
12223810181220100614
1322381006123299382
142238994124498138
152238981125796881
162238969126995612
172238956128294330
182238943129593035
192238930130891727
202238917132190406
212238904133489072
222238891134787725
232238877136186364
242238864137484990
252238850138883602
262238836140282199
272238822141680783
282238808143079353
292238794144577908
302238779145976449
312238764147474976
322238750148873488
332238735150371984
342238720151870466
352238705153368933
362238689154967384
372238674156465820
382238658158064240
392238642159662644
402238626161261032
412238610162859404
422238594164457760
432238578166156100
442238561167754423
452238544169452729
462238527171151018
472238510172849290
482238493174547545
492238475176345782
502238458178044002
512238440179842204
522238422181640388
532238404183438554
542238386185336701
552238367187134830
562238348189032940
572238329190931031
582238310192829104
592238291194727157
602238272196725190
612238252198623204
622238232200621198
632238212202619172
642238192204617125
652238171206715058
662238151208812971
672238130210810862
68223810921298733
6922388721516582
7022386621724410
7122384421942216
7222382222160

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