Economics of dairy farming with 4 cows
| Project cost and bank loan | Cost. In Rs. |
| Capital cost | |
| Cow shed for 4 cows 40sq.ft/cow @300/sqft | 48000 |
| Calf pen for 4 calves 20 sq.ft./calf @250/sq.ft. | 24000 |
| Cost of 4 CB cows with minimum average 10 liter milk yield /day @35000with transportation | 140000 |
| Cost of transportation @Rs1000/cow | 4000 |
| Cost of one chaff cutter hand operated | 10000 |
| Cost of dairy appliances @ 1500/cow | 6000 |
| Cost of electrification of dairy farm with two electric fans | 12000 |
| Total | 244000 |
| Recurring cost to be capitalized | |
| Cost of feed for first batch of one cows for one month as per feed chart | 6360 |
| Cost of insurance 4 animals @5% of animal cost | 7000 |
| Cost of fodder cultivation in one acres of land For one session | 12000 |
| Cost of medicine vaccine, electricity for the first two cows | 4000 |
| Contingency | 6640 |
| Total recurring expenditure | 36000 |
| TOTAL PROJECT COST | 280000 |
| Margin money 10% of project cost | 28000 |
| Bank loan 90% of project cost | 252000 |
| 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 | 91160 | 103880 | 97520 | 89040 | 89040 | 97520 |
| Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 11000 | 23000 | 26000 | 30000 | 30000 | 26000 |
| Medicine vaccine veterinary aid | 8000 | 8000 | 8000 | 8000 | 8000 | 8000 |
| Insurance @5% of animal cost /year | 7000 | 7000 | 7000 | 7000 | 7000 | 7000 |
| Cost of fodder cultivation | 24000 | 24000 | 24000 | 24000 | 24000 | 24000 |
| other miscellaneous expenditure | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 |
| Total | 146160 | 170880 | 167520 | 163040 | 163040 | 167520 |
| INCOME | ||||||
| Sale of milk @Rs.32/liter during lactation days with average milk yield /10 liter/day | 275200 | 313600 | 294400 | 268800 | 268800 | 294400 |
| Sale of gunny bags | 840 | 520 | 900 | 840 | 840 | 880 |
| Manure will be utilized in own farm | ||||||
| Value of closing stock of 4cows (Depreciation on animal cost @10%/year) | 56000 | |||||
| Value of building (Depreciation on building@10%/year) | 28800 | |||||
| Value of equipments (Depreciation on equipments@15%/year) | 600 | |||||
| Total income | 276040 | 314120 | 295300 | 269640 | 269640 | 380680 |
| Gross profit | 129880 | 143240 | 127780 | 106600 | 106600 | 213160 |
| Calculation of BCR & IRR | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Capital Costs | 244000 | |||||
| Recurring Cost | 146160 | 170880 | 167520 | 163040 | 163040 | 167520 |
| Total Costs | 390160 | 170880 | 167520 | 163040 | 163040 | 167520 |
| Benefit | 276040 | 314120 | 295300 | 269640 | 269640 | 380680 |
| Net Benefit | -114120 | 143240 | 127780 | 106600 | 106600 | 213160 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1. | PW costs @ 15%DF | 825328.38 | |
| 2. | PW benefits @ 15%DF | 1124523.92 | |
| 3. | Net Present Worth (NPW | 299195.55 | Should be+ve |
| 4. | Benefit Cost Ratio(BCR) | 1.36:1 | >1 |
| 5. | Internal Rate of return (IRR) | 41.5% | >15% |
| 6. | Debt Service Coverage Ratio | 2.2 | >1.5 |
Repayment of loan:– 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 4 cows
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