Dairy Farm project report for 50 cows
India is the world’s major producer of milk, contributing about 19% of the world’s aggregate milk production. India’s milk output surpasses that of all the European Union countries combined. In the year 2017-18, there was 6.6% growth in milk production. India produced 176.35 million tones during the year 2017-18. Several government schemes are available which provides assistance to dairy farming. Consumption of milk and milk product is rapidly increasing In India due to an increase in per capita income of people. Dairy farming is a lucrative business, The increased price of animal feed can be reduced by undertaking fodder cultivation.This dairy project 50 cows is a model project report.
This Dairy project 50 cows is based on the following assumptions:
1. Freshly calved crossbred Jersey/HF cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months with minimum average 15-liter milk yield per day will be purchased for dairy project 50 cows2. Availability of 10 acres of land is prerequisite for the project4.Fodder cultivation considered in 10-acres land, Two crops considered per year.5 .Cow dung produced will be utilized as Manure for fodder cultivation.6. Cost of rearing calves is not considered as it will be nullified by their sale value7. In case of death cow, the new cow will be purchased from insurance claim money8. The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines
. SUBSIDY AVAILABLE FOR THIS TYPE PROJECT: -Subsidy limit under MKUY is 40% of the fixed capital (excluding the cost of the land) subject to a limit of 50.00 lakh for general male category. Subsidy is 50% of the fixed capital limited to 50.00 lakh for SC/ST/Women/Graduates of Agriculture and Allied Disciplines for this type project. Farmer/entrepreneur can apply through GO Sugam Portal. Net annual profit from the project should be more than 2 Lakh for individual & more than one lakh for SHG groups.
Housing for cows –Floor –Pucca, strong concrete cemented, impervious to moisture, and have slope 1 in 60 towards the gutter. Plinth should be 2ft. higher than ground. Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks. Roof– 14-16ft. high at the center and 8ft. high on the side wall .there should be hangover 3ft beyond the wall to prevent rainwater from entering cow shade. The roof should be of asbestos, cement asbestos, or tile. a thatched roof can replace asbestos in low-cost housing
TAIL TO TAIL SYSTEM OF HOUSING
| ITEMS | LENGTH IN METER |
| MANGER | 0.6M |
| STANDING PLACE | 1.5M |
| GUTTER | 0.4M |
| FEEDING PASSAGE | 1.2M ON BOTH SIDE |
| MILKING PLACE | 1.2M |
Techno-economic parameters (dairy project 50 cows) is given in link (Parameters for 50 cow project)
Links to daily feeding chart /lactation/dry chart for 50 cows dairy farm
Economics of dairy farming with 50 HF/CB JERSEY (Dairy project 50 cows)
| Project cost and bank loan | Cost. In Rs. | |||||||||
| 1. | Capital cost | |||||||||
| 2. | Cow shed for 50 cows 60sq.ft/cow @300/sqft | 900000 | ||||||||
| 3. | Calf pen for 50 calves 20 sq.ft./calf @300/sq.ft. | 300000 | ||||||||
| 4. | One room 10” x 12” for keeping implements. And feed @500/sq.ft | 60000 | ||||||||
| 5. | Office room of 10” x 10”@ 500/sqft | 50000 | ||||||||
| 6. | Room for buck cooling unit 10” x 10”@ 500/sqft | 50000 | ||||||||
| 7. | Electric connection and electrical installation to the farm | 60000 | ||||||||
| 8. | Borewell with a pump set 3 HP | 100000 | ||||||||
| 9. | Cost of 1 Fodder Chaff Cutter with Motor
Cutting Capacity: 600-800 Kg/hr |
55000 | ||||||||
| 10. | Cost of milking machine with four can cluster | 150000 | ||||||||
| 11. | Mist Cooling System | 35000 | ||||||||
| 12. | Milk Cans 40 Liter 25 Nos | 50000 | ||||||||
| 13. | Bulk milk cooler 500 liter capacity | 150000 | ||||||||
| 14. | Cost of one refrigerator for storage of medicines vaccines with voltage stabilizer | 20000 | ||||||||
| 15. | Cost of generator 7.5 KVA | 100000 | ||||||||
| 16. | Cost of 50 hf cows with minimum average 15 liter milk yield /day including transportation and insurance @ 55000/cow | 2750000 | ||||||||
| Total | 4830000 | |||||||||
| The recurring cost to be capitalized | ||||||||||
| I. | Cost of feed for the first batch of 25 cows for one month as per feed chart | 131250 | ||||||||
| II. | Cost of insurance with cover for the first batch Included with the animal cost | 68750 | ||||||||
| III. | Cost of fodder cultivation in 10 acres of land for one season | 60000 | ||||||||
| IV. | Salary of four labourer for one month | 28000 | ||||||||
| V. | Cost of medicine vaccine, electricity for the first month for the first batch of 25 cows & Misc expenditure for one month and contingency | 32000 | ||||||||
| Total recurring expenditure | 320000 | |||||||||
| TOTAL PROJECT COST | 5150000 | |||||||||
| Margin Money @25% of the project cost | 1287500 | |||||||||
| Bank loan @ 75% of project cost | 3862500 | |||||||||
| 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 | 1990625 | 2493750 | 2515625 | 2515625 | 2493750 | 2406250 | ||||
| Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 135000 | 240000 | 232500 | 232500 | 240000 | 270000 | ||||
| Medicine vaccine veterinary aid | 50000 | 50000 | 50000 | 50000 | 50000 | 50000 | ||||
| Cost of electricity and miscellaneous expenditure | 75000 | 75000 | 75000 | 75000 | 75000 | 75000 | ||||
| Insurance @5% of animal cost /year | 137500 | 137500 | 137500 | 137500 | 137500 | 137500 | ||||
| Cost of fodder cultivation for two session | 120000 | 120000 | 120000 | 120000 | 120000 | 120000 | ||||
| Salary of four labours | 284000 | 284000 | 284000 | 284000 | 284000 | 284000 | ||||
| Salary of manager | 144000 | 144000 | 144000 | 144000 | 144000 | 144000 | ||||
| Total | 2936125 | 3544250 | 3558625 | 3558625 | 3544250 | 3486750 | ||||
| INCOME | ||||||||||
| Sale of milk @Rs.32/liter during lactation days with average milk 15 liter yield /cow day | 5460000 | 6840000 | 6900000 | 6900000 | 6840000 | 6600000 | ||||
| Manure will be utilized in own farm | 0 | |||||||||
| Value of closing stock of 50cows with average cost of
20000/animal |
1000000 | |||||||||
| Value of building(Depreciation on building@10%/year) | 544000 | |||||||||
| Value of equipments(Depreciation on equipments @15%/year) | 49000 | |||||||||
| Total income | 5460000 | 6840000 | 6900000 | 6900000 | 6840000 | 8193000 | ||||
| Gross profit | 2936125 | 3544250 | 3558625 | 3558625 | 3544250 | 3486750 | ||||
Calculation of BCR & IRR
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Capital Costs | 4830000 | |||||
| Recurring Cost | 2936125 | 3544250 | 3558625 | 3558625 | 3544250 | 3486750 |
| Total Costs | 7766125 | 3544250 | 3558625 | 3558625 | 3544250 | 3486750 |
| Benefit | 5460000 | 6840000 | 6900000 | 6900000 | 6840000 | 8193000 |
| Net Benefit | -2306125 | 3295750 | 3341375 | 3341375 | 3295750 | 4706250 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1 | Net Present Worth (NPW) @ 15% DF | 8267396.68 | Should be +ve |
| 2 | Benefit Cost Ratio(BCR) | 1.48:1 | >1 |
| 3 | Internal Rate of return (IRR) | 27.57 | >15% |
| 4 | Debt Service Coverage Ratio
(DSCR) |
3.579 | >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 50 cows
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