DAIRY FARM PROJECT REPORT 2 BUFFALOES PAGE 2
| Economics of dairy farming with 2 graded murrah buffaloes | |
| Project cost and bank loan | Cost. In Rs. |
| Capital cost | |
| Low cost Shed for 2 buffaloes 50sq.ft/Buffalo @150/sqft | 15000 |
| Low cost Calf pen for 2 calves 20 sq.ft./calf @150/sq.ft. | 6000 |
| Cost of 2 graded murrah buffaloes with minimum average10 liter milk yield 10 liter /day @52000/buffalo including transportation and insurance | 104000 |
| Cost of dairy appliances @ 1000/buffalo | 2000 |
| Total | 127000 |
| Cost of feed for first batch of one buffalo for one month as per feed chart | 3900 |
| Cost of insurance 2 animals @5% of animal cost | 5200 |
| Cost of fodder cultivation in 0.5 acres of land for first session | 3000 |
| Cost of medicine vaccine, electricity for the first buffalo | 1000 |
| Total recurring expenditure | 13100 |
| TOTAL PROJECT COST | 140100
Say 140000 |
| Margin money 10% of project cost | 14000 |
| Bank loan 90% of project cost | 126000 |
| 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 | 55900 | 63700 | 59800 | 54600 | 54600 | 59800 |
| Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 6600 | 13800 | 15600 | 18000 | 18000 | 15600 |
| Medicine vaccine veterinary aid | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 |
| Insurance @5% of animal cost /year | 5200 | 5200 | 5200 | 5200 | 5200 | 5200 |
| Cost of fodder cultivation | 12000 | 12000 | 12000 | 12000 | 12000 | 12000 |
| other miscellaneous expenditure | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 |
| Total | 83700 | 98700 | 96600 | 93800 | 93800 | 96600 |
| INCOME | ||||||
| Sale of milk @Rs.35/liter during lactation days with average milk yield /10 liter/day | 150500 | 171500 | 161000 | 147000 | 147000 | 161000 |
| Sale of gunny bags | 510 | 630 | 610 | 580 | 580 | 610 |
| Manure will be utilized in own farm | ||||||
| Value of closing stock of 2 buffaloes
(Depreciation on animal cost @10%/year) |
40000 | |||||
| Value of building
(Depreciation on building@10%/year) |
8400 | |||||
| Value of equipment
(Depreciation on equipment @15%/year) |
200 | |||||
| Total income | 151010 | 172130 | 161610 | 147580 | 147580 | 210210 |
| Gross profit | 67310 | 73430 | 65010 | 53780 | 53780 | 113610 |
| Calculation of BCR and IRR | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Capital Costs | 127000 | |||||
| Recurring Cost | 83700 | 98700 | 96600 | 93800 | 93800 | 96600 |
| Total Costs | 210700 | 98700 | 96600 | 93800 | 93800 | 96600 |
| Benefit | 151010 | 172130 | 161610 | 147580 | 147580 | 210210 |
| Net Benefit | -59690 | 73430 | 65010 | 53780 | 53780 | 113610 |
| Financial indicators | Estimated value | Preferred value |
| Net Present Worth (NPW) | 152968.20 | Should be+ve |
| Benefit Cost Ratio(BCR) | 1.33:1 | >1 |
| Internal Rate of return (IRR) | 43.139 | >15% |
| Debt Service Coverage Ratio | 2.27 | >1.5 |
Loan Repayment schedule 2 buffaloes:-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 2 graded murrah buffaloes.
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