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- Cost of rearing calves not considered as it will be repealed by their sale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.
- Availability of good quality Murrah buffaloes in the nearby livestock market
- Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid Centers, MPCS
- Marketing facility of milk and milk product in the locality
- Availability of concentrates, fodder& medicine in that locality
- 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.
- 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.
Lactation days/ dry days and frrf chart is given in link page Lactation days/ dry days and feed chart
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 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 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
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 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.
- Updated on 3-22019
- 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.