buffalo dairy farm project report 10 buffaloes page 2
| Project cost and bank loan | Cost. In Rs. |
| Capital cost | |
| Low cost Shed for 10 buffaloes 50 sq.ft/Buffalo @150/sq.ft | 65000 |
| Low cost Calf pen for 10 calves 20 sq.ft./calf @150/sq.ft. | 30000 |
| Cost of 10 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @52000/buffalo including transportation | 520000 |
| Cost of dairy appliances @ 1000/buffalo | 10000 |
| Cost of one chaff cutter | 25000 |
| Total | 650000 |
| Recurring cost to be capitalized | |
| Cost of feed for first batch of five buffaloes for one month as per feed chart | 19500 |
| Cost of insurance first five animals @5% of animal cost | 13000 |
| Cost of fodder cultivation in 2 acres of land for first session | 12000 |
| Cost of medicine vaccine, electricity for the first five buffaloes | 5500 |
| Total recurring expenditure | 50000 |
| TOTAL PROJECT COST | 700000 |
| Margin money 10% of project cost | 70000 |
| Bank loan 90 % of project cost | 630000 |
| 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 | 279500 | 318500 | 299000 | 273000 | 273000 | 299000 |
| Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 33000 | 69000 | 78000 | 90000 | 90000 | 78000 |
| Medicine vaccine veterinary aid | 10000 | 10000 | 10000 | 10000 | 10000 | 10000 |
| Insurance @5% of animal cost /year | 26000 | 26000 | 26000 | 26000 | 26000 | 26000 |
| Cost of fodder cultivation | 24000 | 24000 | 24000 | 24000 | 24000 | 24000 |
| Labour charge | 72000 | 72000 | 72000 | 72000 | 72000 | 72000 |
| Total | 444500 | 519500 | 509000 | 495000 | 495000 | 509000 |
| INCOME | ||||||
| Sale of milk @Rs.35/liter | 752500 | 857500 | 805000 | 735000 | 735000 | 805000 |
| Sale of gunny bags | 2550 | 3150 | 3050 | 2900 | 2900 | 3050 |
| Manure will be utilized in own farm | ||||||
| Value of closing stock of 10buffaloes (Depreciation on animal cost @10%/year) | 208000 | |||||
| Value of building (Depreciation on building@10%/year) | 38000 | |||||
| Value of equipment (Depreciation on equipment @15%/year) | 3500 | |||||
| Total income | 755050 | 860650 | 808050 | 737900 | 737900 | 1057550 |
| Gross profit | 310550 | 341150 | 299050 | 242900 | 242900 | 548550 |
| Calculation of BCR and IRR | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Capital Costs | 650000 | |||||
| Recurring Cost | 444500 | 519500 | 509000 | 495000 | 495000 | 509000 |
| Total Costs | 1094500 | 519500 | 509000 | 495000 | 495000 | 509000 |
| Benefit | 755050 | 860650 | 808050 | 737900 | 737900 | 1057550 |
| Net Benefit | -339450 | 341150 | 299050 | 242900 | 242900 | 548550 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1. | PW costs @ 15%DF | 2428406.61 | |
| 2. | PW benifits @ 15%DF | 3084617.74 | |
| 3. | Net Present Worth (NPW | 656211.12 | Should be+ve |
| 4. | Benefit Cost Ratio(BCR) | 1.27:1 | >1 |
| 5. | Internal Rate of return (IRR) | 38.946 | >15% |
| 6. | Debt Service Coverage Ratio | 2.11 | >1.5 |
Loan Repayment schedule 10 buffaloes:- 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 10 graded murrah buffaloes
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