Buffalo dairy farm project report 4 buffaloes page 2

Economics of dairy farming with 4 Graded murrah  buffaloes
Project cost and bank loanCost. In Rs.
Capital cost
Low cost Shed for 4buffaloes  50sq.ft/Buffalo @120/sqft24000
Low cost Calf pen for 4 calves 20 sq.ft./calf @120/sq.ft.9600
Cost of 4 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @50000/buffalo including transportation200000
Cost of dairy appliances @ 1000/buffalo4000
One hand operated chaff cutter10000
Total247600
Cost of feed for first batch of  one  buffalo for one month as per feed chart5880
Cost of insurance  4 animals @5% of animal cost10000
Cost of fodder cultivation in 1 acres of land for first session10000
Cost of medicine vaccine, electricity for the two buffalo4000
Contingency2520
Total recurring expenditure32400
TOTAL PROJECT COST282500
Margin money 15% of project cost42375
Bank loan 85% of project cost240125

Say 240000

CASH FLOW ANALYSIS
ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart842809604090160823208232090160
Feeding during dry period vide dry days and feed cost as per feed chart enclosed96802024022880264002640022880
Medicine vaccine veterinary aid500050005000500050005000
Insurance @5% of animal cost /year100001000010000100001000010000
Cost of fodder cultivation200002000020000200002000020000
other miscellaneous expenditure100001000010000100001000010000
Total138960161280158040153720153720158040
INCOME
Sale  of milk @Rs.31/liter during lactation days with average milk yield /10  liter/day266600303800285200260400260400285200
Sale of gunny bags102012601220116011601220
Manure will be utilized in own farm
Value of closing stock of  4 buffaloes

(Depreciation on animal cost @10%/year)

80000
Value of building

(Depreciation on building@10%/year)

14240
Value of equipment

(Depreciation on equipment @15%/year)

1400
Total income267620305060286420261560261560382060
Gross profit128660143780128380107840107840224020
Calculation of BCR and IRR
123456
Capital Costs247600
Recurring Cost138960161280158040153720153720158040
Total Costs386560161280158040153720153720158040
Benefit267620305060286420261560261560382060
Net Benefit-118940143780128380107840107840224020
Financial indicatorsEstimated valuePreferred value
Net Present Worth (NPW301827.62Should be+ve
Benefit Cost Ratio(BCR)1.379:1>1
Internal Rate of return (IRR)41.38>15%
Debt Service Coverage Ratio2.33>1.5
Bank loan 240000 grace period 6 months. Loan amount at the end of grace period =240000+14400=254400
S.NoMonthly InstallmentInterestPrincipal Balance
0254400
1497425442430251970
2497425202454249517
3497424952478247038
4497424702503244535
5497424452528242007
6497424202554239453
7497423952579236874
8497423692605234269
9497423432631231639
10497423162657228981
11497422902684226298
12497422632711223587
13497422362738220849
14497422082765218084
15497421812793215291
16497421532821212471
17497421252849209622
18497420962877206745
19497420672906203838
20497420382935200903
21497420092965197939
22497419792994194945
23497419493024191920
24497419193054188866
25497418893085185781
26497418583116182665
27497418273147179519
28497417953178176340
29497417633210173130
30497417313242169888
31497416993275166613
32497416663307163306
33497416333341159965
34497416003374156591
35497415663408153183
36497415323442149742
37497414973476146266
38497414633511142755
39497414283546139209
40497413923581135627
41497413563617132010
42497413203653128356
43497412843690124666
44497412473727120940
45497412093764117175
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48497410953878105655
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5049741017395697782
514974978399693787
524974938403689751
534974898407685675
544974857411781558
554974816415877400
564974774420073200
574974732424268959
584974690428464675
594974647432760348
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614974560441451564
624974516445847106
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664974335463928824
674974288468524139
684974241473219407
694974194478014627
70497414648279800
7149749848764924
7249744949240

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.

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