Dairy farm project 50 cows

cow dairy farm

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

housing for cow



 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

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
Margin Money  @25% of the project cost 1287500
Bank loan @ 75% of project cost 3862500
Particulars Project period
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
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


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


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

 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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