Dairy farm project report 8 cows

PROJECT REPORT FOR DAIRY FARM WITH EIGHT INDIGENOUS MILCH BREED COWS / CROSS-BRED COW

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 locality.
  4. 4.Availability of concentrates ,fodder & medicine in that locality.
  5. 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 Rs120000/ for general category & Rs160000 for ST/SC category for dairy farm with eight 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 Rs100,000/ for general category & Rs133332/ for ST/SC category for dairy farm with eight 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 Animalindigenous

Milch breed/CB

No. of Animals8
Cost of Animal (Rs./animal)30000/cow
Cost of transportation @Rs1000/- per cow8000
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.)750
Cost of concentrate feed (Rs./kg)16
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 batch1000112010008408401000
Second batch720840840840840840
Total172019601840168016801840
Dry Days
First batch440320440600600440
Second batch600600600600600
Total4409201040120012001040

Economics of dairy farming with eight Indigenous Milch  Breed Cows

cross-bred  cows

Project cost and bank loanCost. In Rs.
Capital cost
Cow shed for 8 cows 40sq.ft/cow @250/sqft80000
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 transportation240000
Cost of one chaff cutter operated power operated 2 Hp25000
Cost of dairy appliances @ 1000/cow8000
Electrification of the dairy farm with four ceiling  fan14000
Cost of one single bucket milking machine27000
Total434000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per feed chart9960
Cost of insurance  8 animals @5% of animal cost12000
Cost of fodder cultivation in 2 acres of land20000
Cost of medicine vaccine, electricity for the first batch   first  cow4000
Total recurring expenditure45960

Say 46000

TOTAL PROJECT COST480000
Margin money 15% of project cost72000
Bank loan 85% of project cost408000

CASH FLOW ANALYSIS.

ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart142760162680152720139440139440152720
Feeding during dry period vide dry days and feed cost as per feed chart enclosed96802024022880264002640022880
Medicine vaccine veterinary aid800080008000800080008000
Insurance @5% of animal cost /year120001200012000120001200012000
Cost of fodder cultivation400004000040000400004000040000
other miscellaneous expenditure100001000010000100001000010000
Total222440252920245600235840235840245600
INCOME
Sale  of milk @Rs.27/liter during lactation days with average milk yield /cow  liter/day464400529200496800453600453600496800
Sale of gunny bags168010401800168016801760
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 income466080530240498600455280455280716560
Gross profit243640277320253000219440219440470960
 123456
Capital Costs434000     
Recurring Cost222440252920245600235840235840245600
Total Costs656440252920245600235840235840245600
Benefit466080530240498600455280455280716560
Net Benefit-190360277320253000219440219440470960
Financial indicatorsEstimated valuePreferred value
Net Present Worth (NPW)

@15%DF

648689.93Should be+ve
Benefit Cost Ratio(BCR)1.5:1>1
Internal Rate of return (IRR)49.29>15%
Debt Service Coverage Ratio2.78>1.5

LOAN AMOUNT 408000,GRACE PERIOD 6 MONTH

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

S.NoMonthly InstallmentInterestPrincipal Balance
0432480
1845543254130428350
2845542834172424178
3845542424213419965
4845542004255415709
5845541574298411411
6845541144341407071
7845540714384402686
8845540274428398258
9845539834472393785
10845539384517389268
11845538934562384706
12845538474608380098
13845538014654375444
14845537544701370743
15845537074748365996
16845536604795361200
17845536124843356357
18845535644891351466
19845535154940346525
20845534654990341536
21845534155040336496
22845533655090331406
23845533145141326265
24845532635192321072
25845532115244315828
26845531585297310531
27845531055350305181
28845530525403299778
29845529985457294321
30845529435512288809
31845528885567283242
32845528325623277619
33845527765679271941
34845527195736266205
35845526625793260412
36845526045851254561
37845525465909248652
38845524875969242683
39845524276028236655
40845523676089230566
41845523066149224417
42845522446211218206
43845521826273211933
44845521196336205597
45845520566399199198
46845519926463192735
47845519276528186207
48845518626593179614
49845517966659172955
50845517306726166230
51845516626793159437
52845515946861152576
53845515266929145647
54845514566999138648
55845513867069131580
56845513167139124441
57845512447211117230
58845511727283109947
59845510997356102592
6084551026742995162
618455952750387659
628455877757880081
638455801765472426
648455724773164695
658455647780856887
668455569788649001
678455490796541036
688455410804532991
698455330812524866
708455249820616660
71845516782888371
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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.