Dairy farm project report 10 cows

Project report for dairy farm with ten indigenous dairy breed/ cross-bred cows

Dairy farming provides an excellent opportunity for self employment of unemployed youth. It   is also an important source of income generation to small/marginal farmers and agricultural labourers. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Landless labourers. The white revolution of 70’s had made spectacular land marks in Indian milk production scenario. India is the largest milk producer of the world The increasing cost of feed ingredients and its seasonal variability  can be reduced by undertaking fodder cultivation.This project report is based on following assumption:-

Entrepreneur  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 locality4.Availability of concentrates ,fodder & medicine in that locality.

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.

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 scheme Dairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs150000/ for general category & Rs200000 for ST/SC category for dairy farm with ten 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 Rs150,000/ for general category & Rs166665/ for ST/SC category for dairy farm with 10 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 officers. Animal resources development department is the facilitator deportment for above schemes.

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  2 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 2 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, 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

dairy farm house

tail to tail cow house

TAIL  TO TAIL SYSTEM OF HOUSING

ITEMSLENGTH IN METER
MANGER0.6M
STANDING PLACE1.5M
GUTTER0.4M
FEEDING PASSAGE1.2M ON BOTH SIDE
MILKING PLACE1.2M
. Techno economic parameters
Type of Animal indigenous  Milch breed /CB
No. of Animals10
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)12
Cost of dry fodder (Rs./kg)2
Rate of interest (%)12
Repayment period (years)6
Selling price of milk/litre (Rs./kg)27
Sale price of gunny bags (Rs. per bag)10
Lactation days280
Dry days150
DAILY FEEDING AND COST CHART FOR DAIRY COWS
FEEDING STUFFCOST/KG

Rs.

During lactation periodDuring dry period
Quantity (kg)Cost (Rs.)Quantity (kg)Cost (Rs.)
Concentrate feed164.5721.524
Green fodder120Home grown15Home grown
Dry fodder4411510
Total28.58321.534
Lactation chart/Dry chart
ParticularsYears
IIIIIIIVVVi
Lactation Days
First batch125014001250105010501250
Second batch90010501050105010501050
Total215024502300210021002300
Dry Days
First batch550400550750750550
Second batch750750750750750
Total55011501300150015001300
ECONOMICS OF DAIRY FARMING WITH 10 INDIGENOUS  DAIRY BREED COWS
Project cost and bank loanCost. In Rs.
Capital cost
Cow shed for 10cows 40sq.ft/cow @250/sqft100000
Calf pen for  10 calves 20 sq.ft./calf @250/sq.ft.50000
Cost of 10CB cows with minimum average 10 liter milk yield /day @30000300000
Cost of transportation @Rs1000/ cow10000
Cost of one chaff cutter with 2 HP motor25000
Cost of dairy appliances @ 1000/cow10000
Cost of electrification with  five ceiling fans23000
Cost of one single bucket milking machine27000
Total545000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per feed chart12450
Cost of insurance  10 animals @5% of animal cost13500
Cost of fodder cultivation in 2.5 acres of land25000
Cost of medicine vaccine, electricity for the first month  for first  cow4000
Total recurring expenditure54950
TOTAL PROJECT COST599950 SAY 600000
Margin money 25% of project cost150000
Bank loan 75% of project cost450000
ParticularsProject period
CASH FLOW ANALYSIS.123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart178450203350190900174300174300190900
Feeding during dry period vide dry days and feed cost as per feed chart enclosed187003910044200510005100044200
Medicine vaccine veterinary aid100001000010000100001000010000
Insurance @5% of animal cost /year150001500015000150001500015000
Cost of fodder cultivation500005000050000500005000050000
Cost of labour600006000060000600006000060000
other miscellaneous expenditure100001000010000100001000010000
Total342150387450380100370300370300380100
INCOME
Sale  of milk @Rs.27/liter during lactation days with average milk yield /cow  liter/day580500661500621000567000567000621000
Sale of gunny bags210023002250210021002200
Manure will be utilized in own farm
Value of closing stock of 10 cows

(Depreciation on animal cost @10%/year)

120000
Value of building

(Depreciation on building@10%/year)

60000
Value of equipments(Depreciation on equipments @15%/year)8500
Total income582600663800623250569100569100811700
Gross profit240450276350243150198800198800431600
123456
Capital Costs545000
Recurring Cost342150387450380100370300370300380100
Total Costs887150387450380100370300370300380100
Benefit582600663800623250569100569100811700
Net Benefit-304550276350243150198800198800431600
Sl noFinancial indicatorsEstimated valuePreferred value
1Net Present Worth (NPW503105.16Should be +ve
2Benefit Cost Ratio(BCR)1.268:1>1
3Internal Rate of return (IRR)35.33>15%
4Debt Service Coverage Ratio2.366>1.5

Bank loan =450000grace period 6 months Loan amount at the end of grace period =450000+27000=477000

S.NoMonthly InstallmentInterestPrincipal Balance
0477000
1932547704555472445
2932547244601467844
3932546784647463197
4932546324693458503
5932545854740453763
6932545384788448975
7932544904836444139
8932544414884439255
9932543934933434322
10932543434982429340
11932542935032424308
12932542435082419226
13932541925133414092
14932541415185408908
15932540895236403672
16932540375289398383
17932539845342393041
18932539305395387646
19932538765449382197
20932538225503376694
21932537675559371135
22932537115614365521
23932536555670359851
24932535995727354124
25932535415784348340
26932534835842342498
27932534255900336597
28932533665959330638
29932533066019324619
30932532466079318539
31932531856140312399
32932531246201306198
33932530626263299934
34932529996326293608
35932529366389287219
36932528726453280766
37932528086518274248
38932527426583267665
39932526776649261016
40932526106715254301
41932525436782247519
42932524756850240668
43932524076919233750
44932523376988226762
45932522687058219704
46932521977128212575
47932521267200205376
48932520547272198104
49932519817344190760
50932519087418183342
51932518337492175850
52932517587567168283
53932516837643160640
54932516067719152921
55932515297796145125
56932514517874137251
57932513737953129298
58932512938032121265
59932512138113113152
60932511328194104959
6193251050827696683
629325967835988324
639325883844279882
649325799852771355
659325714861262743
669325627869854045
679325540878545260
689325453887336388
699325364896227426
709325274905118375
71932518491429233
7293259292330

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