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 costCost. In Rs.
Capital cost
Cow shed for 8 cows 40sq.ft/cow @300/sqft96000
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/cow8000
Cost of one chaff cutter electric10000
Cost of  electrification10000
Cost of single bucket milking machine30000
Cost of dairy appliances @ 1500/cow12000
Total494000
Recurring cost to be capitalized
Cost of feed for first batch of  four  cows for one month as per feed chart12720
Cost of insurance  first five  animals @5% of animal cost14000
Cost of fodder cultivation in 2 acres of land for first session24000
Cost of medicine vaccine,  for the first four cows8000
contingency7280
Total recurring expenditure66000
TOTAL PROJECT COST560000
Margin money 10% of project cost56000
Bank loan 90% of project cost504000
ParticularsProject period
CASH FLOW ANALYSIS.123456
Feeding during lactation period vide yearly lactation days and feed cost as per chart182320207760195040178080178080195040
Feeding during dry period vide dry days and feed cost as per feed chart enclosed220004600052000600006000052000
Medicine vaccine veterinary aid160001600016000160001600016000
Insurance @5% of animal cost /year140001400014000140001400014000
Cost of fodder cultivation480004800048000480004800048000
Cost of labour360003600036000360003600036000
other miscellaneous expenditure800080008000800080008000
Total326320375760369040360080360080369040
INCOME
Sale  of milk @Rs.32/liter during lactation days with average milk yield /cow  liter/day550400627200588800537600537600588800
Sale of gunny bags168018401800168016801760
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 income552080629040590600539280539280766360
Gross profit225760253280221560179200179200397320
Calculation of BCR & IRR
123456
Capital Costs494000
Recurring Cost326320375760369040360080360080369040
Total Costs820320375760369040360080360080369040
Benefit552080629040590600539280539280766360
Net Benefit-268240253280221560179200179200397320
Sl noFinancial indicatorsEstimated valuePreferred value
1Net Present Worth (NPW467267.84Should be +ve
2Benefit Cost Ratio(BCR)1.26:1>1
3Internal Rate of return (IRR)34.631>15%
4Debt Service Coverage Ratio1.936>1.5

Bank loan =504000 grace period 6 months Loan amount at the end of grace period =504000+30240=534240

S.NoMonthly InstallmentInterestPrincipal Balance
0534240
11044453425102529138
21044452915153523985
31044452405205518780
41044451885257513523
51044451355309508214
61044450825362502852
71044450295416497436
81044449745470491966
91044449205525486441
101044448645580480861
111044448095636475225
121044447525692469533
131044446955749463783
141044446385807457977
151044445805865452112
161044445215923446189
171044444625983440206
181044444026042434164
191044443426103428061
201044442816164421897
211044442196226415671
221044441576288409384
231044440946351403033
241044440306414396619
251044439666478390141
261044439016543383597
271044438366609376989
281044437706675370314
291044437036741363573
301044436366809356764
311044435686877349887
321044434996946342942
331044434297015335927
341044433597085328841
351044432887156321685
361044432177228314458
371044431457300307158
381044430727373299785
391044429987447292338
401044429237521284817
411044428487596277221
421044427727672269548
431044426957749261799
441044426187827253973
451044425407905246068
461044424617984238084
471044423818064230021
481044423008144221876
491044422198226213651
501044421378308205343
511044420538391196952
521044419708475188477
531044418858560179917
541044417998645171272
551044417138732162540
561044416258819153721
571044415378907144813
581044414488996135817
591044413589086126731
601044412679177117554
611044411769269108285
62104441083936298923
6310444989945589468
6410444895955079918
6510444799964570273
6610444703974260531
6710444605983950692
6810444507993840754
69104444081003730717
70104443071013720580
71104442061023910341
7210444103103410

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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