50 Murrah Buffalo 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  • Cost of rearing calves not considered as it will be repealed by their sale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.
    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 buffaloMurrah
      No. of Animals50
      Cost of Animal (Rs./animal) including transportation75000
      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 inches25
      Covered Floor space  per young stock (sq.ft)15
      Open space  per young stock (sq.ft)50
      Manger per young stock in inches15
      The construction cost of office & store  in sq.ft400
      Cost of construction per sq.ft (Rs) for covered space250
      Cost of milking machine with accessories150000
      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 days270
      Dry days150
    6.  Economics of dairy farming with 50 Murrah buffaloes
      Project cost and bank loanCost. In Rs.
      Capital cost
       Covered area for 50 Buffaloes @ 30sq.ft/bufalo@250/sqft375000
      Covered area 50calves 15 sq.ft./calf @250/sq.ft.187500
      Cost of construction of boundary & manger for open space  for adult & calves350000
      Cost of construction store room 300 sq.ft @400 per sq.ft120000
      Cost of construction of office cum marketing room  250 sq ft @400 per sq.ft100000
      Cost of 50 Murrah Buffaloes with minimum average 15-liter milkyield /day @70000/buffaloes including transportation3750000
      Cost of the generator set100000
      Cost of milking machine with accessories & installation charge150000
      Cost of dairy appliance @Rs.1000/Buffalo50000
      Cost of bore well with pump set100000
      Cost of over head tank & pipe line70000
      Cost of   chaff cutter90000
      Two silage pit100000
      The recurring cost to be capitalized
      Cost of feed for the first batch of  2 5 buffaloes for one month as per feed chart123000
      Cost of insurance  25 animals @5% of the animal cost93750
      Cost of fodder cultivation in 10 acres of land  for one session60000
      Cost of medicine vaccine, electricity for the first month  for first month10000
      Labour charge of 4 labourer for one month24000
      Total recurring expenditure327500
      Margin money 25% of the project cost1475000
       Bank loan4425000
      ParticularsProject period
      Feeding during lactation period vide yearly lactation days and feed cost as per chart176300020090001886000172200017220001886000
      Feeding during dry period vide dry days and feed cost as per feed chart enclosed645000735000690000630000630000690000
      Medicine vaccine veterinary aid500005000050000500005000050000
      Insurance @5% of animal cost /year187500187500187500187500187500187500
      Cost of fodder cultivation for two seasons per year120000120000120000120000120000120000
      Labour charge288000288000288000288000288000288000
      Sale  of milk @Rs.35/liter during lactation days with average milk yield /15  liter/day564375064312506037500551250055125006037500
      Sale of gunny bags127501575015250145001450015250
      Manure will be utilized in own farm
      Value of closing stock1500000
      Value of building @10%/year)453000
      Value of equipment

      (Depreciation @15%/year)

      Total income565650064470006052750552700055270008044750
      Gross profit260300030575002831250252950025295004823250
      Calculation of BCR and IRR
      Capital Costs5900000     
      Recurring Cost305350033895003221500299750029975003221500
      Total Costs895350033895003221500299750029975003221500
      Net Benefit-329700030575002831250252950025295004823250
    8. Calculation of BCR and IRR
      Capital Costs5900000     
      Recurring Cost305350033895003221500299750029975003221500
      Total Costs895350033895003221500299750029975003221500
      Net Benefit-329700030575002831250252950025295004823250
      Sl noFinancial indicatorsEstimated valuePreferred value
      1.PW costs @ 15%DF17174113.37
      2.PW benifits @ 15%DF23159278.68
      3.Net Present Worth (NPW5985165.31Should be+ve
      4.Benefit Cost Ratio(BCR)1.348:1>1
      5.Internal Rate of return (IRR)37.433>15%
      6.Debt Service Coverage Ratio2.78>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.