Dairy farm project report 4 cows part 2

Economics of dairy farming with 4 cows

Project cost and bank loanCost. In Rs.
Capital cost
Cow shed for 4 cows 40sq.ft/cow @300/sqft48000
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 transportation140000
Cost of transportation @Rs1000/cow4000
Cost of one chaff cutter hand operated10000
Cost of dairy appliances @ 1500/cow6000
Cost of electrification of dairy farm with two electric fans12000
Total244000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per feed chart6360
Cost of insurance  4 animals @5% of animal cost7000
Cost of fodder cultivation in one acres of land

For one session

12000
Cost of medicine vaccine, electricity for the first two cows4000
Contingency6640
Total recurring expenditure36000
TOTAL PROJECT COST280000
Margin money 10% of project cost28000
Bank loan 90% of project cost252000
CASH FLOW ANALYSIS
ParticularsProject period
123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart9116010388097520890408904097520
Feeding during dry period vide dry days and feed cost as per feed chart enclosed110002300026000300003000026000
Medicine vaccine veterinary aid800080008000800080008000
Insurance @5% of animal cost /year700070007000700070007000
Cost of fodder cultivation240002400024000240002400024000
other miscellaneous expenditure500050005000500050005000
Total146160170880167520163040163040167520
INCOME
Sale  of milk @Rs.32/liter during lactation days with average milk yield /10  liter/day275200313600294400268800268800294400
Sale of gunny bags840520900840840880
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 income276040314120295300269640269640380680
Gross profit129880143240127780106600106600213160
Calculation of BCR & IRR
123456
Capital Costs244000
Recurring Cost146160170880167520163040163040167520
Total Costs390160170880167520163040163040167520
Benefit276040314120295300269640269640380680
Net Benefit-114120143240127780106600106600213160
Sl noFinancial indicatorsEstimated valuePreferred value
1.PW costs @ 15%DF825328.38
2.PW benefits @ 15%DF1124523.92
3.Net Present Worth (NPW299195.55Should be+ve
4.Benefit Cost Ratio(BCR)1.36:1>1
5.Internal Rate of return (IRR)41.5%>15%
6.Debt Service Coverage Ratio2.2>1.5

Bank loan 252000  grace period 6 months Loan amount at the end of grace period    =252000 +15120=267120

S.NoMonthly InstallmentInterestPrincipal Balance
0267120
1522226712551264569
2522226462577261992
3522226202602259390
4522225942628256762
5522225682655254107
6522225412681251426
7522225142708248718
8522224872735245983
9522224602762243220
10522224322790240430
11522224042818237612
12522223762846234766
13522223482875231892
14522223192903228988
15522222902932226056
16522222612962223094
17522222312991220103
18522222013021217082
19522221713051214030
20522221403082210948
21522221093113207836
22522220783144204692
23522220473175201516
24522220153207198309
25522219833239195070
26522219513272191799
27522219183304188494
28522218853337185157
29522218523371181786
30522218183404178382
31522217843438174944
32522217493473171471
33522217153508167963
34522216803543164421
35522216443578160843
36522216083614157229
37522215723650153579
38522215363686149892
39522214993723146169
40522214623761142409
41522214243798138610
42522213863836134774
43522213483875130900
44522213093913126986
45522212703952123034
46522212303992119042
47522211904032115010
48522211504072110938
49522211094113106825
50522210684154102671
5152221027419698476
525222985423794238
535222942428089958
545222900432385636
555222856436681270
565222813441076860
575222769445472407
585222724449867909
595222679454363365
605222634458958777
615222588463454142
625222541468149461
635222495472844734
645222447477539959
655222400482335136
665222351487130265
675222303492025346
685222253496920377
695222204501815359
705222154506910290
71522210351195171
7252225251710

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

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