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
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

Cost of medicine vaccine, electricity for the first two cows4000
Total recurring expenditure36000
Margin money 10% of project cost28000
Bank loan 90% of project cost252000
ParticularsProject period
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
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)

Value of building

(Depreciation on building@10%/year)

Value of equipments

(Depreciation on equipments@15%/year)

Total income276040314120295300269640269640380680
Gross profit129880143240127780106600106600213160
Calculation of BCR & IRR
Capital Costs244000
Recurring Cost146160170880167520163040163040167520
Total Costs390160170880167520163040163040167520
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

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

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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