dairy farm project report 2 buffaloes page 2

DAIRY FARM PROJECT REPORT 2 BUFFALOES PAGE 2

Economics of dairy farming with 2 graded murrah  buffaloes
Project cost and bank loanCost. In Rs.
Capital cost
Low cost Shed for 2 buffaloes  50sq.ft/Buffalo @150/sqft15000
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 insurance104000
Cost of dairy appliances @ 1000/buffalo2000
Total127000
Cost of feed for first batch of  one  buffalo for one month as per feed chart3900
Cost of insurance  2 animals @5% of animal cost5200
Cost of fodder cultivation in 0.5 acres of land for first session3000
Cost of medicine vaccine, electricity for the first buffalo1000
Total recurring expenditure13100
TOTAL PROJECT COST140100

Say 140000

Margin money 10% of project cost14000
Bank loan 90% of project cost126000
CASH FLOW ANALYSIS.
ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart559006370059800546005460059800
Feeding during dry period vide dry days and feed cost as per feed chart enclosed66001380015600180001800015600
Medicine vaccine veterinary aid200020002000200020002000
Insurance @5% of animal cost /year520052005200520052005200
Cost of fodder cultivation120001200012000120001200012000
other miscellaneous expenditure200020002000200020002000
Total837009870096600938009380096600
INCOME
Sale  of milk @Rs.35/liter during lactation days with average milk yield /10  liter/day150500171500161000147000147000161000
Sale of gunny bags510630610580580610
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 income151010172130161610147580147580210210
Gross profit6731073430650105378053780113610
Calculation of BCR and IRR
123456
Capital Costs127000
Recurring Cost837009870096600938009380096600
Total Costs2107009870096600938009380096600
Benefit151010172130161610147580147580210210
Net Benefit-5969073430650105378053780113610
Financial indicatorsEstimated valuePreferred value
Net Present Worth (NPW)152968.20Should be+ve
Benefit Cost Ratio(BCR)1.33:1>1
Internal Rate of return (IRR)43.139>15%
Debt Service Coverage Ratio2.27>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.

DISCLAIMER-The views expressed in this model project are advisory in nature. This website assume no financial liability for anyone using this project report for any purpose.

<<previous page (page 1)