Dairy Farm project report 8 cows page 2,

Economics of dairy farming with eight Indigenous

Milch Breed Cows/cross-bred cows

*ECONOMICS OF DAIRY FARMING WITH 8 INDIGENOUS DAIRY BREED COWS*
Project cost	Cost. In Rs.
Capital cost
Cow shed for 8 cows 40sq.ft/cow @300/sqft	96000
Calf pen for 8 calves 20 sq.ft./calf @300/sq.ft.	48000
Cost of 8 CB cows with minimum average 10 liter milk yield /day @35000/cow ( @ 3500/ liter of milk yield/cow)	280000
Cost of transportation @1000/cow	8000
Cost of one chaff cutter electric	10000
Cost of electrification	10000
Cost of single bucket milking machine	30000
Cost of dairy appliances @ 1500/cow	12000
Total	494000
Recurring cost to be capitalized
Cost of feed for first batch of four cows for one month as per feed chart	12720
Cost of insurance first five animals @5% of animal cost	14000
Cost of fodder cultivation in 2 acres of land for first session	24000
Cost of medicine vaccine, for the first four cows	8000
contingency	7280
Total recurring expenditure	66000
TOTAL PROJECT COST	560000
Margin money 10% of project cost	56000
Bank loan 90% of project cost	504000

Particulars			Project period
CASH FLOW ANALYSIS.			1	2		3		4		5		6
Feeding during lactation period vide yearly lactation days and feed cost as per chart			182320	207760		195040		178080		178080		195040
Feeding during dry period vide dry days and feed cost as per feed chart enclosed			22000	46000		52000		60000		60000		52000
Medicine vaccine veterinary aid			16000	16000		16000		16000		16000		16000
Insurance @5% of animal cost /year			14000	14000		14000		14000		14000		14000
Cost of fodder cultivation			48000	48000		48000		48000		48000		48000
Cost of labour			36000	36000		36000		36000		36000		36000
other miscellaneous expenditure			8000	8000		8000		8000		8000		8000
Total			326320	375760		369040		360080		360080		369040
INCOME
Sale of milk @Rs.32/liter during lactation days with average milk yield /cow liter/day			550400	627200		588800		537600		537600		588800
Sale of gunny bags			1680	1840		1800		1680		1680		1760
Manure will be utilized in own farm
Value of closing stock of 8 cows (Depreciation on animal cost @10%/year)												112000
Value of building (Depreciation on building@10%/year)												57600
Value of equipments(Depreciation on equipments @15%/year)												6200
Total income			552080	629040		590600		539280		539280		766360
Gross profit			225760	253280		221560		179200		179200		397320
Calculation of BCR & IRR
	1	2			3		4		5		6
Capital Costs	494000
Recurring Cost	326320	375760			369040		360080		360080		369040
Total Costs	820320	375760			369040		360080		360080		369040
Benefit	552080	629040			590600		539280		539280		766360
Net Benefit	-268240	253280			221560		179200		179200		397320

Sl no	Financial indicators	Estimated value	Preferred value
1	Net Present Worth (NPW	467267.84	Should be +ve
2	Benefit Cost Ratio(BCR)	1.26:1	>1
3	Internal Rate of return (IRR)	34.631	>15%
4	Debt Service Coverage Ratio	1.936	>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 8 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.

Economics of dairy farming with eight Indigenous

Milch Breed Cows/cross-bred cows

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