Buffalo dairy farm project report 4 buffaloes page 2
| Economics of dairy farming with 4 Graded murrah buffaloes | |
| Project cost and bank loan | Cost. In Rs. |
| Capital cost | |
| Low cost Shed for 4 buffaloes 50sq.ft/Buffalo @150/sqft | 30000 |
| Low cost Calf pen for 4 calves 20 sq.ft./calf @150/sq.ft. | 12000 |
| Cost of 4 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @50000/buffalo including transportation | 208000 |
| Cost of dairy appliances @ 1000/buffalo | 4000 |
| Total | 254000 |
| Cost of feed for first batch of one buffalo for one month as per feed chart | 7800 |
| Cost of insurance first 2 animals @5% of animal cost | 5200 |
| Cost of fodder cultivation in 1 acres of land for first session | 6000 |
| Cost of medicine vaccine, electricity for the two buffalo | 4000 |
| Contingency | 3000 |
| Total recurring expenditure | 26000 |
| TOTAL PROJECT COST | |
| Margin money 10% of project cost | 28000 |
| Bank loan 90% of project cost | 252000 |
| 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 | 111800 | 127400 | 119600 | 109200 | 109200 | 119600 |
| Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 13200 | 27600 | 31200 | 36000 | 36000 | 31200 |
| Medicine vaccine veterinary aid | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 |
| Insurance @5% of animal cost /year | 10400 | 10400 | 10400 | 10400 | 10400 | 10400 |
| Cost of fodder cultivation | 24000 | 24000 | 24000 | 24000 | 24000 | 24000 |
| other miscellaneous expenditure | 10000 | 10000 | 10000 | 10000 | 10000 | 10000 |
| Total | 174400 | 204400 | 200200 | 194600 | 194600 | 200200 |
| INCOME | ||||||
| Sale of milk @Rs.35/liter during lactation days | 301000 | 343000 | 322000 | 294000 | 294000 | 322000 |
| Sale of gunny bags | 1020 | 1260 | 1220 | 1160 | 1160 | 1220 |
| Manure will be utilized in own farm | ||||||
| Value of closing stock of 4 buffaloes
(Depreciation on animal cost @10%/year) |
83200 | |||||
| Value of building
(Depreciation on building@10%/year) |
16800 | |||||
| Value of equipment
(Depreciation on equipment @15%/year) |
1400 | |||||
| Total income | 302020 | 344260 | 323220 | 295160 | 295160 | 424620 |
| Gross profit | 127620 | 139860 | 123020 | 100560 | 100560 | 224420 |
| Calculation of BCR and IRR | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Capital Costs | 254000 | |||||
| Recurring Cost | 174400 | 204400 | 200200 | 194600 | 194600 | 200200 |
| Total Costs | 428400 | 204400 | 200200 | 194600 | 194600 | 200200 |
| Benefit | 302020 | 344260 | 323220 | 295160 | 295160 | 424620 |
| Net Benefit | -126380 | 139860 | 123020 | 100560 | 100560 | 224420 |
| Financial indicators | Estimated value | Preferred value |
| Net Present Worth (NPW | 281260.81 | Should be+ve |
| Benefit Cost Ratio(BCR) | 1.295:1 | >1 |
| Internal Rate of return (IRR) | 46.23 | >15% |
| Debt Service Coverage Ratio | 2.17 | >1.5 |
Loan Repayment for 4 buffalo dairy farm:- Repayment of loan will start after grace period of 6 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 4 buffaloes.
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