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4-Cost of rearing calves not considered as it will be repealed by their sale value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 loan||Cost. In Rs.|
|Low cost Shed for 8buffaloes 50sq.ft/Buffalo @150/sqft||60000|
|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 transportation||416000|
|Cost of dairy appliances @ 1000/buffalo||8000|
|Cost of one hand operated chaff cutter||10000|
|Cost of feed for first batch of four buffalo for one month as per feed chart||15400|
|Cost of insurance first animals @5% of animal cost||10400|
|Cost of fodder cultivation in 2 acres of land for first session||12000|
|Cost of medicine vaccine, electricity for first four buffaloes||4200|
|Total recurring expenditure||42000|
|TOTAL PROJECT COST||560000|
|Margin money 10% of project cost||56000|
|Bank loan 90% of project cost||504000|
|CASH FLOW ANALYSIS|
|Feeding during lactation period vide yearly lactation days and feed cost as per chart||223600||192400||239200||218400||218400||239200|
|Feeding during dry period vide dry days and feed cost as per feed chart enclosed||26400||13800||62400||72000||72000||62400|
|Medicine vaccine veterinary aid||8000||8000||8000||8000||8000||8000|
|Insurance @5% of animal cost /year||20800||20800||20800||20800||20800||20800|
|Cost of fodder cultivation||48000||48000||48000||48000||48000||48000|
|other miscellaneous expenditure||20000||20000||20000||20000||20000||20000|
|Sale of milk @Rs.35/liter during lactation days||602000||521500||644000||588000||588000||644000|
|Sale of gunny bags||1020||1260||1220||1160||1160||1220|
|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)
|Value of equipment|
(Depreciation on equipment @15%/year)
|Calculation of BCR and IRR|
|Financial indicators||Estimated value||Preferred value|
|Net Present Worth (NPW||405167.48||Should be+ve|
|Benefit Cost Ratio(BCR)||1.22:1||>1|
|Internal Rate of return (IRR)||37.629||>15%|
|Debt Service Coverage Ratio||2.075||>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.