50 Murrah Buffalo Dairy Farm Project Report

mURRAH BUFFALO PROJECT

murrah buffalo projectFIFTY 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  • Cost of rearing calves not considered as it will be repealed by their sale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
    1. Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid Centers, MPCS
    2. Marketing facility of milk and milk product in the locality
    1. Availability of concentrates, fodder& medicine in that locality
    2. 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.
    3. 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.
    4. Lactation days/ dry days and frrf chart is given in link page Lactation days/ dry days and feed chart 

    5.  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
    6.  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
    7. 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
    8. 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.
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