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.
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