FIFTY MURRAH BUFFALOES DAIRY FARM PROJECT REPORT

fifty Murrah Buffaloes Dairy Farm Project Report is based on the following assumptions:-

• Freshly calved Murrah female buffaloes in 1st or 2nd lactation will be purchased in two batches of twenty-five animals each/batch at an interval of 5 to 6 months.
• Availability of 10 acres of land for fodder cultivation is prerequisite for the project,
• Dung produced will be utilized as Manure for fodder cultivation.
• Cost of rearing calves not considered as it will be repealed by their sale
• In case of death of adult animal new buffalo will be purchased from insurance claim money.
• Heifers will be used as replacement stocks
• The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.
• Before entering into dairy business the entrepreneurs are advised to undergo a training on dairy farming. They can contact Local Animal Husbandry Department staffs/Veterinary College/agriculture university etc. for the purpose. They should also visit progressive dairy farmers and government/ agricultural university dairy farm in the locality. They must check the following points before starting a dairy farm.
  1. Availability of good quality Murrah buffaloes in the 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. Availability of concentrates, fodder& medicine in that locality
  5. SUBSIDY AVAILABLE FOR THIS TYPE PROJECT: -Odisha farmer can avail subsidy for this type project under Mukhya Mantri Krushi Udyoga Yojana (MKUY) (APICOL). 50%  subsidy of capital expenditure with the limit of Rs fifteen lakhs is available for 50 animal  buffalo dairy farm for ST/SC and general women. 40% subsidy with limit of twelve lakhs is available for the male of general category for buffalo dairy farm with 50 animals.Farmer/entrepreneur can apply through GO Sugam Portal.
  6. Housing for buffaloes:-loose housing system (open type) will be adopted for the farm as it is superior to conventional bran in terms of milk production & growth. Construction cost is lower & heat detection for buffaloes is easier in this type of housing.  In loose housing system animals are kept loose except milking and at the time of treatment. Details of floor space requirement (open & covered area)is given in techno-economic parameters.

  7. Lactation days/ dry days and frrf chart is given in link page Lactation days/ dry days and feed chart 

  9. Techno-economic parameters	value
     Bred of buffalo	Murrah
     No. of Animals	50
     Cost of Animal (Rs./animal) including transportation	75000
     Average Milk Yield (litre/day)	15 liter
     Covered Floor space  per adult animal(sq.ft)	30
     Open space  per adult animal(sq.ft)	100
     Manger length/animal in inches	25
     Covered Floor space  per young stock (sq.ft)	15
     Open space  per young stock (sq.ft)	50
     Manger per young stock in inches	15
     The construction cost of office & store  in sq.ft	400
     Cost of construction per sq.ft (Rs) for covered space	250
     Cost of milking machine with accessories	150000
     Cost of other  equipment per animal (Rs.)	1000
     Cost of fodder cultivation (Rs./acre/season)	6000
     Insurance premium (% per annum)	5
     Veterinary aid/animal/ year (Rs.)	1000
     Cost of concentrate feed (Rs./kg)	20
     Cost of dry fodder (Rs./kg)	4
     Rate of interest (%)	12
     Repayment period (years)	6
     Selling price of milk/litre (Rs./kg)	35
     Sale price of gunny bags (Rs. per bag)	10
     Lactation days	270
     Dry days	150

  10. Economics of dairy farming with 50 Murrah buffaloes
      Project cost and bank loan	Cost. In Rs.
      Capital cost
      Covered area for 50 Buffaloes @ 30sq.ft/bufalo@250/sqft	375000
      Covered area 50calves 15 sq.ft./calf @250/sq.ft.	187500
      Cost of construction of boundary & manger for open space  for adult & calves	350000
      Cost of construction store room 300 sq.ft @400 per sq.ft	120000
      Cost of construction of office cum marketing room  250 sq ft @400 per sq.ft	100000
      Cost of 50 Murrah Buffaloes with minimum average 15-liter milkyield /day @70000/buffaloes including transportation	3750000
      Cost of the generator set	100000
      Cost of milking machine with accessories & installation charge	150000
      Cost of dairy appliance @Rs.1000/Buffalo	50000
      Cost of bore well with pump set	100000
      Electrification	30000
      Cost of over head tank & pipe line	70000
      Cost of   chaff cutter	90000
      Two silage pit	100000
      Total	5572500
      The recurring cost to be capitalized
      Cost of feed for the first batch of  2 5 buffaloes for one month as per feed chart	123000
      Cost of insurance  25 animals @5% of the animal cost	93750
      Cost of fodder cultivation in 10 acres of land  for one session	60000
      Cost of medicine vaccine, electricity for the first month  for first month	10000
      Labour charge of 4 labourer for one month	24000
      Contingency	16750
      Total recurring expenditure	327500
      TOTAL PROJECT COST	5900000
      Margin money 25% of the project cost	1475000
      Bank loan	4425000

  11. 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			1763000		2009000		1886000	1722000		1722000		1886000
      Feeding during dry period vide dry days and feed cost as per feed chart enclosed			645000		735000		690000	630000		630000		690000
      Medicine vaccine veterinary aid			50000		50000		50000	50000		50000		50000
      Insurance @5% of animal cost /year			187500		187500		187500	187500		187500		187500
      Cost of fodder cultivation for two seasons per year			120000		120000		120000	120000		120000		120000
      Labour charge			288000		288000		288000	288000		288000		288000
      Total			3053500		3389500		3221500	2997500		2997500		3221500
      INCOME
      Sale  of milk @Rs.35/liter during lactation days with average milk yield /15  liter/day			5643750		6431250		6037500	5512500		5512500		6037500
      Sale of gunny bags			12750		15750		15250	14500		14500		15250
      Manure will be utilized in own farm
      Value of closing stock												1500000
      Value of building @10%/year)												453000
      Value of equipment (Depreciation @15%/year)												39000
      Total income			5656500		6447000		6052750	5527000		5527000		8044750
      Gross profit			2603000		3057500		2831250	2529500		2529500		4823250
      	Calculation of BCR and IRR
      		1		2		3			4		5		6
      	Capital Costs	5900000
      	Recurring Cost	3053500		3389500		3221500			2997500		2997500		3221500
      	Total Costs	8953500		3389500		3221500			2997500		2997500		3221500
      	Benefit	5656500		6447000		6052750			5527000		5527000		8044750
      	Net Benefit	-3297000		3057500		2831250			2529500		2529500		4823250

  12. Calculation of BCR and IRR
      	1	2	3	4	5	6
      Capital Costs	5900000
      Recurring Cost	3053500	3389500	3221500	2997500	2997500	3221500
      Total Costs	8953500	3389500	3221500	2997500	2997500	3221500
      Benefit	5656500	6447000	6052750	5527000	5527000	8044750
      Net Benefit	-3297000	3057500	2831250	2529500	2529500	4823250

      Sl no	Financial indicators	Estimated value	Preferred value
      1.	PW costs @ 15%DF	17174113.37
      2.	PW benifits @ 15%DF	23159278.68
      3.	Net Present Worth (NPW	5985165.31	Should be+ve
      4.	Benefit Cost Ratio(BCR)	1.348:1	>1
      5.	Internal Rate of return (IRR)	37.433	>15%
      6.	Debt Service Coverage Ratio	2.78	>1.5

• Loan Repayment  schedule for  fifty murrah buffalo dairy project:- 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  50 murrah buffaloes.
• 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.