Dairy farm project 8 buffaloes

Dairy farm project 8 buffaloes

Project report for eight buffaloes dairy farm is based on following assumptions

1-Freshly calved murrah  female buffaloes in 1st or 2nd lactation will be purchased in two batches of four animals each/batch  at an interval of 5 to 6 months.

2-Availability of 2 acres of land  for fodder cultivation is prerequisite for the project,

3-Dung produced will be utilized as Manure for fodder cultivation.

4-Cost of rearing calves not considered as it will be repealed by their sale value

57In case of death of adult animal new buffalo  will be purchased from insurance claim money.

6-Heifers will be used as replacement stocks

7 The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.

Government subsidy available for these types of project– Back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) is available under government of India scheme Dairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs 140000/-for general category & Rs186666/- for ST/SC category for buffalo dairy farm with eight animals.

Farmer from Odisha can avail back ended capital subsidy 25% for general category  (33.33% for SC/ST beneficiaries) under government of Odisha scheme Promotion of Dairy Entrepreneurship (PDE).Subsidy ceiling is Rs140000/ for general category & Rs186666/- for ST/SC category for buffalo dairy farm with eight animals under  PDE scheme. Odisha farmer can avail subsidy either under scheme PDE or DEDS.

Economics of dairy farming with 8 Graded murrah  buffaloes
Project cost and bank loanCost. In Rs.
Capital cost
Low cost Shed for 8buffaloes  50sq.ft/Buffalo @150/sqft60000
Low cost Calf pen for 8 calves 20 sq.ft./calf @150/sq.ft.24000
Cost of 4 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @52000/buffalo including transportation416000
Cost of dairy appliances @ 1000/buffalo8000
Cost of one hand operated chaff cutter10000
Total518000
Cost of feed for first batch of  four   buffalo for one month as per feed chart15400
Cost of insurance  first   animals @5% of animal cost10400
Cost of fodder cultivation in 2 acres of land for first session12000
Cost of medicine vaccine, electricity for  first  four  buffaloes4200
Total recurring expenditure42000
TOTAL PROJECT COST560000
Margin money 10% of project cost56000
Bank loan 90% of project cost504000
CASH FLOW ANALYSIS
ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart223600192400239200218400218400239200
Feeding during dry period vide dry days and feed cost as per feed chart enclosed264001380062400720007200062400
Medicine vaccine veterinary aid800080008000800080008000
Insurance @5% of animal cost /year208002080020800208002080020800
Cost of fodder cultivation480004800048000480004800048000
other miscellaneous expenditure200002000020000200002000020000
Total346800303000398400387200387200398400
INCOME
Sale  of milk @Rs.35/liter during lactation days602000521500644000588000588000644000
Sale of gunny bags102012601220116011601220
Manure will be utilized in own farm
Value of closing stock of  8 buffaloes(Depreciation on animal cost @10%/year)166400
Value of building

(Depreciation on building@10%/year)

33600
Value of equipment

(Depreciation on equipment @15%/year)

1400
Total income603020522760645220589160589160603020
Gross profit256220219760246820201960201960448220
Calculation of BCR and IRR
123456
Capital Costs518000
Recurring Cost346800303000398400387200387200398400
Total Costs864800303000398400387200387200398400
Benefit603020522760645220589160589160603020
Net Benefit-261780219760246820201960201960204620
Financial indicatorsEstimated valuePreferred value
Net Present Worth (NPW405167.48Should be+ve
Benefit Cost Ratio(BCR)1.22:1>1
Internal Rate of return (IRR)37.629>15%
Debt Service Coverage Ratio2.075>1.5

Loan Repayment  for  eight graded murrah buffalo:- 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  eight graded murrah.